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Microsoft says economy offers opportunity for gov't IT

By Nancy Gohring, IDG News Service
March 04, 2009 03:40 PM ET
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This is one of the toughest economic environments that most government IT administrators have experienced, but they should look at the situation as an opportunity, Microsoft told attendees of its CIO Summit on Wednesday.

“This is an economy where every dollar, resource, data center, laptop, desktop, vehicle is being put to the test,” said Joel Cherkis, Microsoft general manager of Industry Unit. “We have to figure out how to do more with less.”

Cherkis and other Microsoft executives spoke to government and education IT managers at the annual get-together in Redmond, Washington.

While the stimulus package includes few direct items specifically for IT, IT groups may end up with funding in order to implement requirements related to some of the funded projects.

For example, government bodies might find opportunities in mandates from President Obama. The president has said that government organizations have to be transparent, participatory and collaborative, Cherkis said. Technology in many cases can best help agencies comply with those mandates.

“While there are pressures, this is a time where the opportunity is there to move things forward,” said Curt Kolcun, vice president of US Public Sector for Microsoft. “We can work in partnership to arm you in helping you step up and show elected officials and those in charge of government how technology can really have an impact.”

There are other reasons why government IT workers can hope for increased funding going forward. “The government is the only industry in which the customers pick the management,” said John Kost, a Gartner analyst. “So even now, despite the economy, from where we sit at Gartner we still see public sector clients still looking to do CRM [customer relationship management]. Political leaders still know they need to make citizens happy.”

He said that 311 systems, where people can dial that number to get a customer support representative who can help them no matter what their government-related questions, are still being widely considered because politicians see the citizen benefits.

Still, some attendees of the conference seemed doubtful that they’d see funding any time soon for new projects. “I’m weary of the ‘do more with less’ buzz phrase,” said Matthew McLean, deputy chief information officer for the U.S. Department of Agriculture. He doesn’t expect to see much money as a result of the stimulus package. While he thinks he can potentially maintain his services under budget and personnel cuts, he can’t imagine improving or adding technology given the cuts.

However, McLean and others say that some types of emerging technologies could help cut costs, although they will require investments initially so that the agencies can make sure they comply with regulations.

For example, using hosted services rather than running some software in-house might save money, but government agencies have some unique privacy, security and other regulations that make a shift to hosted services more difficult than it is for many companies.

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