Tech leaders advance $1 trillion productivity agenda

The federal government can save $1 trillion through 2020 by consolidating infrastructure, combining supply chains and reducing energy consumption among other moves.

Fresh off a meeting with President Barack Obama, the CEOs of Dell Inc. and IBM Corp. laid out a productivity agenda for the federal government that they say could save the government $1 trillion.

And it is nothing new or groundbreaking, said Samuel Palmisano, IBM’s chairman and CEO. It’s the same efficiency moves the private sector has been making for more than a decade.


RELATED ITEM

For video of the Dell-Palmisano panel, click here.


 

“What we are talking about is putting things together and sharing,” Palmisano said during a panel discussion the day after he, CEO Michael Dell and other members of the Technology CEO Council met with Obama and other White House officials.

“It is extremely straightforward,” he said. “IBM had 84 data centers, now we have 14 and we saved $3 billion.”

The Technology CEO Council makes seven recommendations in its report, One Trillion Reasons, that it says will save the federal government $1 trillion through 2020.

The recommendations and estimated savings are:

  • Consolidate IT infrastructure -- $150 billion to $200 billion
  • Streamline government supply chains -- $500 billion
  • Reduce energy use -- $20 billion
  • Move to shared-services -- $50 billion
  • Apply advanced analytics to reduce improper payments -- $200 billion
  • Reduce field operations and move to electronic self-service -- $50 billion
  • Monetize government assets -- $150 billion

The return on investment of taking these steps will be felt almost immediately, particularly in the infrastructure area, Dell said.

“Holding on to stuff that is four or five or six years old, is incredibly expensive,” he said. “And we’re not even talking about the power savings, which can be 95 percent.”

The panel of Dell and Palmisano was moderated by John Hamre, president and CEO, of the Center for Strategic and International Studies.

Much of the discussion focused on the need to increase productivity in the U.S. economy. Both Dell and Palmisano criticized the partisanship that dominates U.S. politics and the debate around how to address the deficit and national debt.

“While we are global companies, we are still Americans and we want to see America succeed,” Dell said. “The world is changing very quickly and partisanship doesn’t help our cause as Americans.”

The meeting with the White House yielded some results, Palmisano said. The administration is willing to work on the corporate tax structure, which Obama said he would support changing as long as it is deficit neutral. The tech CEOs also met with members of Congress on the issue, and they agreed to work on it as well.

“For the first time I feel there is real work underway,” he said.

Another critical area is free trade, and the White House needs the private sector to help make the case for more free trade agreements.

“Wherever we have a free trade agreement, the data shows that we are doing better,” Palmisano said. But the public perception is the opposite. “Now we have to sell it.”

Dell and Palmisano both said the U.S. is at a critical junction and has to put aside partisanship so the country can move forward, otherwise the risk is that the country will be eclipse by emerging global economies in China, India and Brazil.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.