Investing wisely in IT

May 17, 2011
Cyber Security, FedCyber Wire
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via The Hill’s Congress Blog

In times of intense budgetary pressures, consumers, businesses and governments must contend with difficult choices. When faced with spending cuts, it’s often easy to fall into the trap of failing to distinguish between costs and investments. Some cuts may deliver benefits to the bottom line in the short-term, but over the long-term yields a net loss because of the missed benefits of the foregone investment.

CompTIA’s recent 2nd Annual Government IT Purchase Plans research study indicates that governments of all levels increasingly see technology as more than just a cost center, but rather a means to address challenges on multiple fronts. According to our research of local, state and federal decision makers, government IT spending will continue to focus on measurable outcomes that place premiums on ensuring that work on behalf of tax payers ultimately can be done more efficiently, securely and cost effectively.

While estimates differ, experts agree that new technology-driven initiatives can help recognize significant cost savings. The United Nations estimates that e-government initiatives can result in cost savings of 10-50 percent over previous systems. The U.S. Department of Commerce, meanwhile, focusing only on savings in procurements, has estimated that the federal government is saving $49 billion annually thanks to new technologies and state and local governments are experiencing $58 billion in annual savings. The state of Illinois, for example, saw a $10 million return on investment by virtualizing its 900 servers.

Continued here.