1
We are in the early stages of awareness and understanding, and contractors are ahead of government. Convergence is about more than IT. There are significant disconnects between industry opportunity areas and government adoption plans. Convergence brings both opportunities and barriers to adoption. Opportunity Areas for “As A Service” Contractors see “as a service” opportunities at a significantly greater rate than government says they plan to implement. For more information visit www.marketconnectionsinc.com and www.pscouncil.org Perceived barriers are significantly slowing widespread adoption of converged solutions and consumption-based approaches. Barriers to XaaS Adoption L A C K O F P R O C U R E M E N T G U I D A N C E P O O R L Y D E F I N E D R E Q U I R E M E N T S S E C U R I T Y I S S U E S / R I S K S B U D G E T C O N S T R A I N T S 1 6 % 3 1 % 3 6 % 2 1 % 6 0 % 4 6 % 4 5 % 2 4 % “Declining agency budgets are driving re-evaluation of how we acquire technology and services.” federal it professional Important Characteristics of Contractors Delivering Converged Solutions Government and contractors disagree on the importance of a few key characteristics for contractors delivering converged solutions. Subject matter expertise 90% 86% CONTRACTORS GOVERNMENT Secure solutions 92% 84% Cost competitive 89% 84% Understand customer mission 93% 81% ● significant difference KEY FINDINGS © 2014 Market Connections, Inc. although 70% of government reports moderate to high impact, current use and near-term plans reflect significantly lower levels of adoption. 41% COMMUNICATIONS 39% SOFTWARE 35% INFRASTRUCTURE 33% MONITORING 32% PLATFORM 29% TRAINING 19% OTHER Federal “As A Service” Current Use and Near-term Plans The Impact of Convergence on Government Acquisition Currently using or planning to implement in the next 12 months platform monitoring infrastructure software communications training 0 20 40 60 80 100 17% 35% 20% 43% 21% 64% 21% 58% 21% 41% 25% 56% IMPACT OF CONVERGENCE 65 % 68 % Traditional technology vendors are now providing their products as services Companies will have fewer opportunities to sell hardware and software separately from services as consumption-based acquisition models like cloud computing take hold in government. It is important for a federal agency to work with a company that can deliver integrated services and technology The lines between technology and services are beginning to blur when looking to buy IT or mission services Federal agencies/my agency are behind the technology curve compared to the private sector TREND 1 TREND 2 TREND 3 TREND 4 TREND 5 75 % 85 % 66 % 79 % 58 % 80 % 53 % 67 % T O P F I V E T R E N D S TECHNOLOGY CONVERGENCE Government’s perceptions of convergence differ from contractors’. ● government ● contractor
