CDW-G Efficient Agency Report

The Efficient Agency

State and local government agencies face continued financial challenges, among them the withdrawal of billions of dollars in American Recovery and Reinvestment Act funding and revenue collections below pre-recession levels. Some states have reduced aid to local governments – some to a significant degree.*

Despite the challenging outlook, CDW-G’s Efficient Agency Report reveals that governments are finding new ways to save through operational efficiency. CDW-G examines how state and local IT professionals are maximizing resources and looks at how initial savings from four technologies proven to drive operational efficiencies can be used to generate still more savings.

*The Fiscal Survey of States, Fall 2011, National Governors Association and National Association of State Budget Officers

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Key Findings

  • Agencies have mandated that their IT departments cut existing costs and reduce new spending. 78% of state and local agency IT professionals found ways to save their agency money in the past two years
  • 74% of IT professionals look for ways to preserve services by increasing efficiency without cutting services or personnel
  • Agencies implementing server virtualization, storage virtualization, document management and cloud computing realized investment returns ranging from 134% to 269%
  • If agencies reinvest the savings from IT investments, they could spend $400K on server virtualization, storage virtualization, document management and cloud computing – rather than $1.1 million, if those solutions were implemented individually


Program Cuts Are a Last Resort

  • When facing funding reductions, 74% of state and local IT departments look for ways to increase efficiency without cutting services

Program Cuts Are a Last Resort

Agencies Invest to Improve

  • State and local agencies are investing in technologies that save time and money

Agencies Invest to Improve

Savings Fund New Efficiencies

  • Organizations could potentially use the savings from server virtualization to fund nearly all of document management, storage virtualization and cloud computing

Savings Fund New Efficiencies
*Sample size: Server virtualization=246, document management=168, storage virtualization=152, and cloud computing=119
**Annual savings x (lifetime of the solution – time to reach positive ROI)



  • When facing budget cuts, first look for ways to increase efficiency without cuts to services
  • Conduct a review of technologies and processes to identify inefficiencies
  • Consider efficiency and savings opportunities when selecting new solutions
  • Leverage available savings to fund the next efficiency opportunity


CDW-G hired O’Keeffe & Company to conduct the online survey of 303 state and local IT managers in October and November 2011. The sample size results in a margin of error of +/- 5.6% at a 95% confidence level