WCIT 2016 George Newstrom

1. Government:
A Global IT Opportunity
Presented by:
George Newstrom
President & General Manager
Dell Services Federal Government, Inc.

2. Top 10 Government Technology Trends
Source:Gartner-2016CIOAgenda:AGovernmentPerspective,19February2016
Citizen e-IDDigital WorkplaceDigital Platforms
Citizen EngagementInternet of ThingsRisk-Based SecurityOpen Any Data
Software Defined ArchitectureAnalytics Everywhere Smart Machines
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3. Global Government IT Spend (non-USA)
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
167,683
174,157
84,465 82,517
82,706
82,880
83,187
28,799 28,593
28,633
28,638
28,814
25,622 26,267
26,626
26,944
27,265
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2015 2016 2017 2018 2019
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
443,788
454,297
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
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4. Global Government IT Growth (non-USA)
Internal Services, 67.19
Software, 71.90
IT Services, 158.12
Telecom Services, 82.52
Devices, 28.59
Data Center Systems, 26.27
-1
0
1
2
3
4
5
6
7
8
-4 -3 -2 -1 0 1 2 3 4 5 6 7
CAGR2016-19
CAGR 2015-16
Bubble 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
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5. US 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
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6. 6
Federal Acquisition Regulations

7. Federal 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
191,593
0.18%
-2.6%
-1.7%
3.3%
5.7%
198,180
3.16%
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
83,633
87,055
25,552
24,521
24,058
23,594
23,282
7,444
7,691
7,372
7,185
7,100
8,680
8,974
8,988
8,988
9,023
0
50,000
100,000
150,000
200,000
250,000
2015 2016 2017 2018 2019
Data Center Systems
Devices
Telecom Services
IT Services
Software
Internal Services
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8. Barriers 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
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9. Leading 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
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10. USA Federal IT Contracting: Road to Success
Mergers & Acquisition
Joint Ventures
Partnerships
Teaming
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