IBM, Dell CEOs Present $1 Trillion IT Savings Plan To Feds - InformationWeek
Government // Leadership
12:03 PM
NGES (Next Gen Endpoint Security): Tips & Key Considerations for Evaluating Solu
Apr 04, 2017
Next generation endpoint security (NGES) is one of the hottest topics in today's cybersecurity mar ...Read More>>

IBM, Dell CEOs Present $1 Trillion IT Savings Plan To Feds

Sam Palmisano and Michael Dell believe the federal government's tech infrastructure is wasteful and inefficient.

The federal budget deficit is propped up in part by more than $1 trillion in unnecessary IT spending, according to the chief executive officers of two of the world's largest tech vendors.

In an essay published Wednesday on, Sam Palmisano, of IBM, and Michael Dell, of Dell, argue that the federal government's IT infrastructure is too scattered and diverse, and not as efficient as it could be. Rationalizing many systems and processes could allow the feds to save more than $1 trillion over the next decade, they claim.

"The federal government spends approximately $76 billion to support its widely dispersed information technology assets. Up to 30% of that spending could be saved by further reducing IT overhead, consolidating data centers, eliminating redundant networks, and standardizing applications," Palmisano and Dell wrote.

The CEOs also said the federal government could save $500 billion by consolidating its multiple supply chains, and $200 billion by automating more processes in Medicare, the Internal Revenue Service, and other agencies and departments.

"This is not just theory. We've seen both the cost savings and the innovation that these approaches can unleash—in both the private and public sectors," said Palmisano and Dell. They noted that New York State has saved $889 million by using predictive analytics software to catch tax cheats, and that North Carolina has saved $25 million by using such software to spot Medicare fraud.

"The list could go on, describing success stories from governments across the country and around the world," said the CEOs. All told, they believe $1 trillion in waste could be rooted out of the system over the next ten years.

Their interest in the subject goes beyond the fact that both men are U.S. taxpayers. Contracts to undertake some of the tasks Palmisano and Dell describe could be worth billions to tech services vendors like IBM and Dell. But major, government outsourcing plans are notoriously tricky, and main such projects have failed.

IBM and Indiana, for instance, are currently suing each other over an outsourcing engagement that flopped. The CEOs also did not state how many federal IT jobs would be lost if the government were to implement their plan.

The Technology CEO Council, of which both Palmisano and Dell are members, plans to formally present its IT cost-cutting plan to the government on Wednesday.

Comment  | 
Print  | 
More Insights
Oldest First  |  Newest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Success = Storage & Data Center Performance
Balancing legacy infrastructure with emerging technologies requires laying a solid foundation that delivers flexibility, scalability, and efficiency. Learn what the most pressing issues are, how to incorporate advances like software-defined storage, and strategies for streamlining the data center.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of November 6, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll