[HIB]US government IT modernization projects being re-evaluated

The greatest frontier for application modernization, SOA, cloud, and virtualization is the enormous collection of legacy systems which run the US federal government. However, some of these efforts may run up more costs than they save. In a new post, IDC’s Thom Rubel looked at some recent efforts to re-evaluate or put the brakes on some federal financial systems modernization projects. Rubel reports some consternation among vendors in the industry after The Wall Street Journal broke the news last week. On June 28th, the US Office of Management & Budget (OMB) — which reviews the cost-effectiveness of all federal programs — called for the review of all (approximately 30) financial systems modernization project currently underway, totaling $3 billion. According to Rubel, the directive instructs federal agencies to “avoid investments in new contracts and task orders” on these projects. Federal CIO Vivek Kundra is also reviewing about $10 billion in other existing IT projects that are currently behind schedule and/or over budget.

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