wcit 2016 george newstrom
TRANSCRIPT
Government:A Global IT Opportunity
Presented by:
George NewstromPresident & General Manager
Dell Services Federal Government, Inc.
2Top 10 Government Technology TrendsSource: Gartner-2016 CIO Agenda: A Governm
ent Perspective, 19 February 2016
Citizen e-IDDigital Workplace Digital Platforms
Citizen EngagementInternet of ThingsRisk-Based SecurityOpen Any Data
Software Defined ArchitectureAnalytics Everywhere Smart Machines
3Global Government IT Spend (non-USA)
2015 2016 2017 2018 20190
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
67,567 67,191 67,134 67,252 67,651
68,541 71,900 76,156 80,901 86,376
154,529 158,125 162,534 167,683174,157
84,465 82,51782,706
82,88083,187
28,799 28,59328,633
28,63828,814
25,622 26,26726,626
26,94427,265
Data Center Systems
Devices
Telecom Services
IT Services
Software
Internal Services
Global Government IT Spending will grow at 2.45% CAGR (2016-19)
429,522 434,593 443,788454,297
1.25%
0.25%
0.26%
3.2%
6.3%
$USM
CAGR (2016-2019)
467,450
0.22%
Source: Gartner, Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2013-2019, 4Q15 Update
4Global Government IT Growth (non-USA)
-3 -2 -1 0 1 2 3 4 5 6
0
1
2
3
4
5
6
7
Internal Services
Software
IT Services
Telecom ServicesDevices Data Center Systems
CAG
R 20
16-1
9
CAGR 2015-16Bubble size = 2016 Market in $USB
Software Services projected to have the highest growth…
Source: Gartner, Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2013-2019, 4Q15 Update
Low historic growth & High future growth
High historic growth & Low future growthLow historic growth & Low future growth
High historic growth & High future growth
5US Federal IT Government Market
US$200B+ Marketplace Open / Public Buying Protocol Clear Purchasing System Clear “Rule of Law” / Federal Acquisition
Regulation Advantages for “Small Business”
Participation Small Margins Cost Accounting Standards / Audited
6Federal Acquisition Regulations
7Federal Government IT Spend USA
$USM
CAGR (2016-2019)
Source: Gartner, Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2013-2019, 4Q15 Update
U.S. Government IT Spending will grow at 2.78% CAGR (2016-19)
178,241 182,505 186,574 191,5930.18%
-2.6%
-1.7%
3.3%
5.7%
198,180
3.16%
2015 2016 2017 2018 20190
50,000
100,000
150,000
200,000
250,000
24,181 24,870 25,579 26,372 27,308
35,956 37,598 39,583 41,822 44,413
76,429 78,852 80,995 83,63387,055
25,552 24,521 24,05823,594
23,2827,444 7,691 7,372
7,1857,100
8,680 8,974 8,9888,988
9,023Data Center Systems
Devices
Telecom Services
IT Services
Software
Internal Services
8Barriers to USA Federal Government Market
• Competition• Contract Vehicles• Set Asides / SB Goals• Past Performance• Financial Considerations• Low Price Technically Acceptable• Federal Acquisition Regulations• Cost Accounting Standards• US-based Delivery• Foreign Ownership, Control or Influence• Budget Constraints
9Leading Foreign-Owned USA Federal Contractors
Source: Bloomberg Government 2016 BGOV200 Report for GFY15 FedGov Obligations
London, UK
US $4,600M
Dublin, Ireland
US $1,400M US $1,300M
London, UK
US $799M
Montreal, Canada Hook, UK
US $597M
Munich, Germany
US $281M
10USA Federal IT Contracting: Road to Success
Mergers & Acquisition
Joint Ventures
Partnerships
Teaming