Accordingly, we  recommended that the agencies take actions to complete their cost  savings targets and improve optimization progress. Agencies Are Reporting Limited Progress against OMB’s Data Center Optimization Targets

As mentioned earlier, FITARA required OMB to establish metrics to  measure the optimization of data centers, including server efficiency, and  ensure that agencies’ progress toward meeting the metrics is made  publicly available. More specifically, of the 24  agencies, 5—the Department of Commerce (Commerce), EPA, NSF, the  Small Business Administration (SBA), and the U.S. Agency for  International Development (USAID)—reported plans to fully meet their  applicable targets by the end of fiscal year 2018; 13 reported plans to  meet some, but not all, of the targets; 4 reported that they do not plan to  meet any targets; and 2 do not have a basis to report planned  optimization milestones because they do not report having any agency- owned data centers. Agencies Reported Successes and Challenges in Optimizing Data Centers

The 24 DCOI agencies reported successes in optimizing their data  centers—notably, the benefits of key technologies, such as virtualizing  systems to improve performance, and increased energy efficiency. However, agencies also reported operational, technical, and financial  challenges related to, for example, improving the utilization of their data  center facilities, measuring server utilization, and obtaining funding within  their agency for optimization efforts. It will be important for agencies to  take action to address their identified challenges—as we previously  recommended—in order to improve data center optimization progress. Most Agencies Still Cannot Effectively Measure Server Utilization

As noted earlier, FITARA required OMB to establish data center  consolidation and optimization metrics, including a metric specific to  measuring server efficiency; it also required agencies to report on  progress in meeting the metrics. As of February 2017, 4 of the 22 agencies reporting agency-owned data  centers in their inventory—NASA, NSF, SSA, and USAID—reported  that they had implemented automated monitoring tools at all of their data  centers. The remaining  12 agencies did not document plans to implement automated monitoring  tools. Considering that OMB established  a DCOI-wide savings goal of $2.7 billion, the ability of agencies to meet  the optimization targets will be critical to achieving these savings. The lack of a formal OMB  requirement to establish detailed plans in this area and report them to  OMB further increases the likelihood that agencies will continue to lack  them. Moreover, with automated monitoring tools not required by OMB to be  fully implemented by agencies until the end of fiscal year 2018, extending  the time frame of FITARA’s data center consolidation and optimization  provisions could also better ensure that server utilization is effectively  measured and reported beyond fiscal year 2018, after the necessary  monitoring tools are implemented. In order to provide agencies with additional time to meet OMB’s  data center optimization targets and achieve the related cost savings,  Congress should consider extending the time frame for the data center  consolidation and optimization provisions of FITARA beyond their current  expiration date of October 1, 2018. Of the 19 agencies to which we made  recommendations, 10 agencies agreed with our recommendations, 3  (Defense, Interior, and OPM) partially agreed, and 6 (including OMB) did  not state whether they agreed or disagreed. In addition, 6 agencies to  which we did not make recommendations stated that they had no  comments. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) assess agencies’ progress against the Office of  Management and Budget’s (OMB) data center optimization targets, (2)  identify agencies’ notable optimization successes and challenges, and (3)  evaluate the extent to which agencies are able to effectively measure  server utilization. To assess agencies’ progress against OMB’s data center optimization  targets, we analyzed the February 2017 data center optimization progress  information of the 24 department and agencies (agencies) that  participate in OMB’s Data Center Optimization Initiative (DCOI). As a result of  these efforts, we determined that the agencies’ strategic plan information  was sufficiently reliable for reporting on plans to meet or not meet OMB’s  fiscal year 2018 optimization targets.
Why GAO Did This Study

In December 2014, FITARA was enacted and included a series of provisions related to improving the performance of data centers, including requiring OMB to establish optimization metrics and agencies to report on progress toward meeting the metrics. OMB's Federal Chief Information Officer subsequently launched DCOI to build on prior data center consolidation and optimization efforts.
GAO was asked to review data center optimization. GAO's objectives were to (1) assess agencies' progress against OMB's data center optimization targets, (2) identify agencies' notable optimization successes and challenges, and (3) evaluate the extent to which agencies are able to effectively measure server utilization. To do so, GAO evaluated the 24 DCOI agencies' progress against OMB's fiscal year 2018 optimization targets, interviewed officials, and assessed agencies' efforts to implement monitoring tools for server utilization.

What GAO Found

Of the 24 agencies required to participate in the Office of Management and Budget's (OMB) Data Center Optimization Initiative (DCOI), 22 collectively reported limited progress against OMB's fiscal year 2018 performance targets. Two agencies did not have a basis to report on progress as they do not have agency-owned data centers. For OMB's five optimization targets, five agencies or less reported that they met or exceeded each of the targets (see figure).
Further, as of April 2017, 17 of the 22 agencies were not planning to meet OMB's targets by September 30, 2018. This is concerning because the Federal Information Technology Acquisition Reform Act's (FITARA) data center consolidation and optimization provisions, such as those that require agencies to report on optimization progress and cost savings, expire a day later on October 1, 2018. Extending the time frame of these provisions would increase the likelihood that agencies will meet OMB's optimization targets and realize related cost savings. Additionally, until agencies improve their optimization progress, OMB's $2.7 billion initiative-wide cost savings goal may not be achievable.
All 24 agencies reported successes in optimizing their data centers—notably, the benefits of key technologies, such as virtualizing systems to improve performance, and increased energy efficiency. However, agencies also reported challenges related to, for example, improving the utilization of their data center facilities and competing for labor resources. It will be important for agencies to take action to address their identified challenges—as GAO previously recommended—in order to improve data center optimization progress.
Of the 24 agencies required by OMB to implement automated monitoring tools to measure server utilization by the end of fiscal year 2018, 4 reported in their data center inventories as of February 2017 that they had fully implemented such tools, 18 reported that they had not, and 2 did not have a basis to report on progress because they do not have agency-owned data centers. Collectively, agencies reported that these tools were used at about 3 percent of their centers. Although federal standards emphasize the need to establish plans to help ensure goals are met, of the 18 agencies, none fully documented plans, 6 agencies had partially documented them, and 12 did not document them. Agencies provided varied reasons for this, including that they were still evaluating available tools. In addition, the lack of a formal requirement from OMB to establish the plans also contributed to agencies not having them. Until these plans are completed, agencies may be challenged in measuring server utilization.

What GAO Recommends

Congress should consider extending the time frame for the data center consolidation and optimization provisions of FITARA to provide agencies with additional time to meet OMB's targets and achieve cost savings. GAO is also recommending that 18 agencies complete their plans to implement data center monitoring tools and that OMB require agencies to complete their plans and report them to OMB. Ten agencies agreed with GAO's recommendations, three agencies partially agreed, and six (including OMB) did not state whether they agreed or disagreed, as discussed in the report.