Bill Maguire

OPINION

4 ways a private Dell helps the government market

Expect better partners, more innovation and lower prices

In today’s government IT landscape, change is the only constant. Government CIO’s know this all too well as they face an increasing number of new challenges.

From securing personal devices at work (a.k.a. BYOD) to consolidating data and migrating to a software-as-a-service cloud-based environment, CIO’s must stay on top of the frequent emergence of new trends and significant industry evolutions.
 
In many ways, the Dell-Microsoft alliance is an allegory for the state of the industry as a whole. In government IT, continued relevance and advancement requires agility, leanness, speed and innovation. For Dell, the move to privatize is clearly driven by these objectives. To those of us in the world of big data, cloud computing and BYOD, this is a welcome change.
 
How would government CIO’s and major system integrators benefit from this change? With four major points of business impact that may become visible in short order:

1. Dell’s new positioning will empower government technology purchasers with the opportunity to drive a harder bargain to “do more with less.” Whether it is servers, desktops or peripheral devices, Dell will have to become more competitive.  This comes at a good time with pressure on all government agencies to find more cost efficiencies. This new positioning will also support government leaders faced with decisions regarding end-of-life units, replacement strategies and maintenance.

2. When government CIO’s plan new programs and entertain new solutions, they will have access to more agility and flexibility in combining new service solutions from Dell’s units, such as Perot and Quest, for new opportunities in government space. We should also expect an even broader set of solutions from Dell. With the gloves off and funding available, more acquisitions are likely to strengthen their market position. With enterprise agreements in place with Dell, government CIO’s can take advantage of pricing changes and negotiate for these solutions to be introduced into their environments.

3. Government CIO’s could benefit from stronger competition in cloud and big data between Dell/Microsoft versus Google and Amazon. Many agencies are looking at cloud technologies for efficiencies in the development and hosting of applications. With less constraints and a renewed/vitalized partnership with Microsoft, the elements are in place for Dell’s government customers to take advantage of their relationships and move to this solution. Dell customers can establish cloud technologies in a risk-managed way and gain the efficiencies that have been proven in government and in private sector.

4. With faster movement to BYOD, Dell could refocus its funds to develop newer tablet solutions and slowly dump PCs.  All agencies are looking for the next generation of devices and how to effectively and securely use them. As Dell moves into software, particularly security software, the change to a private entity will allow it to deliver such solutions in a more aggressive manner, again helping to solve those “bees in the bonnet or helmet” that government CIO’s are struggling to resolve.

 

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