Agencies say savings from data center consolidation to be far less than estimated

October 13, 2011
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The government’s effort to consolidate data centers will yield far less in savings than originally projected, agencies say.

Instead of saving $3 billion by eliminating more than 800 data centers by 2015, as the Office of Management and Budget has projected, agencies now expect savings of only $630 million and $5 billion over a longer period, according to an OMB estimate based on agencies’ latest data consolidation plans, which were made available last week.

Higher upfront costs, delayed budgets and consolidation setbacks are among the reasons agencies give for their lowered savings projections, according to agencies’ plans.

via Federal Times, continued here.