In 2015, the Government Accountability Office (GAO) classified U.S. government software acquisitions as high-risk purchases. A decade later, despite numerous reforms aimed at enhancing federal software investments, including acquisition and management processes, many agencies continue to face challenges in extracting optimal value from their software investments.
Federal Software Investments Losing Billions
The U.S. government allocates over $100 billion to IT and cyber-related initiatives, procuring thousands of software licenses from diverse vendors. However, the absence of a robust software license management (SLM) strategy has resulted in systemic inefficiencies, including overprovisioning, under-provisioning, and suboptimal utilization. These inefficiencies drive substantial financial losses through underutilized licenses, compliance penalties, and reduced workforce productivity.
A 2023 audit revealed that the National Aeronautics and Space Administration (NASA) incurred $35 million in losses over five years, attributed to underutilized licenses and regulatory fines. Similarly, the Department of Defense (DoD) reported $2.5 billion in productivity-related losses, stemming from inefficient software and IT asset management.
When extrapolated across federal agencies, these underperforming federal software investments highlight the magnitude of financial risk inherent in current practices.
Key Challenges in Federal IT Acquisition and Management
To mitigate financial exposure and enhance the value derived from federal software investments, the GAO has identified three critical challenges that federal agencies must address:
- Strengthening oversight and management of IT portfolios.
- Implementing mature IT acquisition and development practices.
- Building federal IT capacity and capabilities.
GAO advocates for continuous monitoring of software license usage and rigorous reconciliation of inventories against procurement records. Agencies that have implemented these recommendations report enhanced resource allocation and improved operational outcomes.
Address GAO’s Challenges with Open iT
Open iT, a GSA-certified provider of advanced Software License Management solutions, empowers government agencies to optimize software asset utilization, improve cost effectiveness, and enhance mission-critical capabilities.
Open iT supports federal agencies in addressing the GAO’s IT acquisition and management challenges through:
1. Strengthening Oversight and Management of IT Portfolios
Open iT provides granular visibility into software license usage across complex IT environments, enabling agencies to:
Optimize License Utilization: Identify underused or idle licenses, ensuring resources are allocated effectively.
Improve Decision-Making: Leverage detailed reports and analytics to support data-driven decisions on renewals, procurement, and cost optimization.
Enhance Compliance: Monitor usage against license agreements, reducing risks of non-compliance and potential audit penalties.
2. Implementing Mature IT Acquisition and Development Practices
Open iT’s solutions integrate with existing IT asset management frameworks, supporting mature acquisition and development processes by:
Facilitating Strategic Planning: Provide insights into current and projected software needs to guide procurement strategies.
Supporting Agile Acquisition: Enable flexible license management to adapt quickly to evolving project requirements and mission priorities.
Cost Transparency: Deliver clear cost breakdowns associated with software usage, aiding in budgeting and resource planning.
3. Building Federal IT Capacity and Capabilities
Open iT helps agencies strengthen their IT workforce capabilities by:
Reducing Administrative Burden: Automate software usage tracking and reporting, freeing IT personnel to focus on strategic initiatives.
Enhancing Skills Development: Offer actionable insights that help IT staff improve license management practices and optimize IT operations.
Scalable Solutions: Support diverse IT environments, from on-premises to cloud-based systems, ensuring adaptability to future technological demands.
From High-Risk to High-Performance: The NASA Story
NASA’s partnership with Open iT demonstrates the transformative impact of effective software license management. By deploying Open iT Base Enterprise, NASA achieved granular visibility into MATLAB usage, enabling real-time data access through dynamic dashboards, ad-hoc reporting, and advanced data visualizations such as trend analyses and activity heat maps.
Integration with Active Directory facilitated precise project cost allocation at the user level, down to the minute—a groundbreaking advancement in software asset management. These insights have been instrumental in optimizing software procurement, negotiating more favorable vendor contracts, and improving engineering team productivity.
Currently, Open iT supports NASA’s enterprise-wide Software Asset Management (SAM) framework, slated for full-scale deployment by 2027, reinforcing the agency’s commitment to operational excellence and fiscal responsibility.
Unlock the Full Potential of Your Software Investments
Contact Open iT today to transform high-risk federal software investments into high-value assets. Let us help your agency achieve operational efficiency.
