For example, 14 agencies do not provide a  complete listing of data centers and 15 do not provide a complete listing  of software assets in their inventories. Further, OMB did not require that  agencies verify these inventory data. Additionally, in their consolidation  plans, 20 agencies do not provide a master schedule, 12 agencies do not  address cost-benefit calculations, and 9 do not address risk management. Several agency officials noted that they had difficulty completing their  inventories and plans within OMB’s timelines. Until these inventories and plans are  complete, agencies may not be able to implement their consolidation  activities or to realize expected cost savings. Moreover, without an  understanding of the validity of agencies’ consolidation data, OMB cannot  be assured that agencies are providing a sound baseline for estimating  consolidation savings and measuring progress against those goals. IT software assets.   Cost-benefit analysis. These include challenges related to the data  center consolidation initiative as well as those that are cultural, funding  related, operational, and technical. Specifically, 19  agencies reported that obtaining power usage data was a challenge. Nine agencies reported that  maintaining services during the consolidation transition is a challenge. Many state governments have  undertaken data center consolidation initiatives in recent years. Although  they have encountered unique challenges, they have also encountered  challenges similar to those reported by federal agencies. Of these, 19 reported  lessons learned that could be leveraged at the federal level. For example,  officials from North Carolina reported that organizations are typically  concerned that by consolidating data centers, they will lose control of their  data, service levels will decline, or costs will rise. The state learned that to  help mitigate this during the process of consolidation, the organizations’  concerns should be documented, validated, and addressed. In another  example, a West Virginia official reported that since the state had no  funding for a consolidation, it had to be creative in executing the  consolidation. The state used the natural aging cycle of hardware to force  consolidation; that is, when a piece of hardware was ready to be  replaced, the applications and software were put onto a consolidated  server. OMB and federal agencies have also taken  important steps to reduce the number and increase the efficiency of the  federal data centers. Specifically, we are  recommending that the Director of the Office of Management and Budget  direct the Federal Chief Information Officer to  require that agencies, when updating their data center inventories in  the third quarter of each fiscal year, state what actions have been  taken to verify the inventories and to identify any limitations of this  information; require that agencies complete the missing elements in their  respective plans and submit complete data center consolidation plans,  or provide a schedule for when they will do so, by September 30,  2011; require agencies to consider consolidation challenges and lessons  learned when updating their plans; and   utilize the existing accountability infrastructure by requiring the Data  Center Consolidation Task Force to assess agency consolidation  plans to ensure they are complete and to monitor the agencies’  implementation of their plans. Most agencies generally  agreed with our recommendations. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) assess whether agency consolidation  documents include adequate detail, such as performance measures and  milestones, for agencies to consolidate their centers; (2) identify the key  challenges reported by agencies in consolidating centers; and (3)  evaluate whether lessons learned during state government consolidation  efforts could be leveraged to mitigate challenges at the federal level. We compared agency consolidation inventories and plans to  OMB’s required elements, and identified gaps and missing elements. Appendix III: Assessment of Agencies’ Completion of Key Consolidation Planning Elements, Arranged by Agency

As part of its data center consolidation initiative, OMB required 24 federal  departments and agencies to submit a data center inventory and a data  center consolidation plan. However, the agency’s asset inventory and consolidation plan are  not complete.
Why GAO Did This Study

Over time, the federal government's demand for information technology has led to a dramatic rise in the number of federal data centers and an increase in operational costs. Recognizing this increase, the Office of Management and Budget (OMB) has launched a governmentwide initiative to consolidate data centers. GAO was asked to (1) assess whether agency consolidation documents include adequate detail for agencies to consolidate their centers, (2) identify the key consolidation challenges reported by agencies, and (3) evaluate whether lessons learned during state government consolidation efforts could be leveraged at the federal level. To address these objectives, GAO assessed the completeness of agency inventories and plans, interviewed agencies about their challenges, and evaluated the applicability of states' consolidation lessons to federal challenges.

What GAO Found

In launching its federal data center consolidation initiative, OMB required the 24 participating agencies to submit data center inventories and consolidation plans by the end of August 2010, and provided guidance on key elements to include in the inventories and plans--such as hardware and software assets, goals, schedules, and cost-benefit calculations. The plans indicate that agencies anticipate closing about 650 data centers by fiscal year 2015 and saving about $700 million in doing so. However, only one of the agencies submitted a complete inventory and no agency submitted complete plans. Further, OMB did not require agencies to document the steps they took, if any, to verify the inventory data. For example, in their inventories, 14 agencies do not provide a complete listing of data centers and 15 do not list all of their software assets. Also, in their consolidation plans, 20 agencies do not reference a master schedule, 12 agencies do not address cost-benefit calculations, and 9 do not address risk management. The reason for these gaps, according to several agency officials, was that they had difficulty completing their inventories and plans within OMB's timelines. Until these inventories and plans are complete, agencies may not be able to implement their consolidation activities and realize expected cost savings. Moreover, without an understanding of the validity of agencies' consolidation data, OMB cannot be assured that agencies are providing a sound baseline for estimating consolidation savings and measuring progress against those goals. Agencies identified multiple challenges during data center consolidation, including those that are specific to OMB's consolidation initiative as well as those that are cultural, funding-related, operational, and technical in nature. For example, in attempting to fulfill OMB's requirements, 19 agencies reported difficulty in obtaining power usage data. In addition, 9 agencies reported challenges in maintaining services during the transition to consolidated services. Moving forward, it will be important for agencies to focus on mitigating such challenges as they implement their consolidation plans. Many state governments have undertaken data center consolidation initiatives in recent years and have encountered challenges similar to those reported by federal agencies. Specifically, 19 states reported lessons learned that could be leveraged at the federal level. For example, a West Virginia official reported that since the state had no funding for data center consolidation, it used the natural aging cycle of hardware to force consolidation; that is, when a piece of hardware was ready to be replaced, the new applications and software were put onto a consolidated server. Also, officials from North Carolina reported that organizations are typically concerned that by consolidating data centers, they will lose control of their data, service levels will decline, or costs will rise. The state learned that during the process of consolidation, the organizations' concerns should be documented, validated, and addressed.

What GAO Recommends

GAO is recommending that the Federal Chief Information Officer, department secretaries, and agency heads take steps to ensure that agency data center inventories and consolidation plans are complete. Most agencies agreed with GAO's recommendations. Defense and SSA did not agree to complete all missing elements of their inventories and plans. Based on OMB guidance on the importance of these elements, GAO maintains these recommendations to be reasonable and appropriate.