The US government is targeting its top five software vendors as it looks to drive down the amount it spends on applications across the Federal estate.
The effort, first reported by Fedscoop, was detailed in an email sent by Federal CIO Greg Barbaccia to the CIOs of Federal agencies this week. The recently installed tech chief pledged to stop “wasteful spending”.
Barbaccia reportedly wrote that “Federal agencies are currently neglecting cost savings, making duplicative purchases, and failing to take advantage of economies of scale for software purchases. The first step to resolving this issue is to identify a comprehensive inventory to understand the entire catalog of vendors at each agency.”
Barbaccia demanded that the CIOs produce an inventory of their agreements with Microsoft, Adobe, Salesforce, Oracle and ServiceNow. Microsoft, unsurprisingly accounts for almost a third of Federal software licenses, according to GAO figures.
But the GAO also points to confusion over the usage of those applications, thanks to incomplete data, as well as practices such as software bundles.
Barbaccia wants each CIO to return a spreadsheet detailing their contacts with the big five by the beginning of April, and longer term wants a full inventory of all software agreements.
The email emerged after that President Trump signed an executive order bringing government tech procurement under the auspices of the General Services Administration. The GSA said, in a fact sheet, that the cost of an Office license can vary by $200 across government departments.
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The move parallels a drive to reduce Federal spending with the top ten consulting firms, with orders to agencies to terminate those contracts deemed not mission critical.
Unsurprisingly, Accenture is just one firm that has said slowing Federal procurement was impacting its results. And it’s not just software and services. HPE said the uncertainty swirling around Washington, not least around tariffs, was hitting its figures.
But there’s one bright spot for tech supplies. The GSA has outlined plans to accelerate FedRAMP accreditations for cloud service providers. Which will presumably be good news for frustrated cloud advocates such as Jeff Bezos.
