John Taylor: August 2008 Archives

Virtualization Nation

Virtualization can't be ignored--it's in the news on what seems like a daily basis. Gartner says that it will be the highest impact trend in the infrastructure and operations market through 2012. But virtualization has been around for decades, so why is it an imperative now?


Virtualization wasn't utilized in the past because:


  • Jurisdictions were focused on fixing problems more often than creating efficiencies
  • Virtualization technologies weren't perceived to be mature enough for enterprise application
  • Government IT environments lacked sophistication/maturity levels needed
  • Purchasing a new machine was much easier and cheaper
  • IT consumption was lower--space was relatively abundant
  • Embarrassing utilization rates were not widely published

As environments and technologies have matured, virtualization is being seen a solution that addresses a variety of issues simultaneously:


  • Green IT pressures
  • Consolidation and centralization
  • Space and energy consumption
  • Disaster recovery and emergency preparedness
  • Cost savings and increased efficiencies
  • Political pressures stemming from an increased focus on analytics and spend tracking

As long as IT consumption continues to explode and there is a focus on efficiencies (down budgets, green initiatives etc.) virtualization will continue to be a convenient, effective prescription.





Large State Contracts Up For Grabs?

There has been some buzz lately around a few of California's large strategic sourcing contracts that are to expire in September and rightfully so--these are huge deals. However, there are some renewals available, so what is the potential opportunity here? This is what we know:

IT Hardware - Enterprise Contracts (Storage)

  • 7 contracts set to expire on 9/25/2008
  • 2007 purchases: Approximately $12.3 million for all 7 contracts
  • There are 2 optional renewals available

The Skinny:

We know that general practice is to renew but the contract administrator tells us that there is a work team in place that is evaluating the option of going out to bid. A clause will be put into the renewal contract allowing the state to opt out within 30 days of notice--if the option is chosen, we should expect to see a bid opportunity in the next several months.

IT Hardware - Enterprise Contracts (UNIX-based Servers)

  • 3 contracts set to expire on 9/25/2008
  • 1 contract set to expire on 9/27/2008
  • 2007 purchases: Approximately $11.3 million for 4 contracts
  • There are 2 optional renewals available

The Skinny:

There is no work team is in place; the contract administrator indicates that these contracts will be renewed.

As we hear more we'll keep you updated and add any opportunities to Navigator.