1. 1 A Candid Survey of Federal Executives Government Business Council Insight Report I 2010 Proudly Underwritten By Virtually There: The Federal View of Virtualization, Present and Future Virtualization at Federal Agencies In Partnership with Oracle Corporation

2. 2 About the Government Business Council (GBC) through analysis, insight and analytical independence through analysis, insight and analytical independence Dedicated to advancing the business of government Dedicated to advancing the business of government GBC studies influential decision makers to produce intelligence-based analysis Extension of GEMG’s 40 years of editorial standards and ethical values of the Government Executive Media Group (GEMG) of the Government Executive Media Group (GEMG) The research intelligence division

3. 3 Departments and Agencies Represented* Department of Veterans Affairs Department of Defense (OSD, DISA, DIA, etc.) Department of the Army Department of Homeland Security Department of Treasury Department of the Air Force Department of Health and Human Services Department of Agriculture Department of the Navy Department of Transportation General Services Administration NASA Department of Energy Department of Commerce Department of the Interior Environmental Protection Agency Department of Labor Department of Justice Department of State Department of Education Government Accountability Office United States Marine Corps *Agencies listed in order of frequency.

4. 4 Respondent Profile Job Rank Areas of Responsibility

5. RESEARCH FINDINGS

6. 6 Familiarity with Concept of Virtualization (percentage of total respondents, n=248¹) Many Federal Executives Unfamiliar With Virtualization One in three respondents is unfamiliar with the concept of virtualization. ¹ This number represents the total number of survey respondents: those who are unfamiliar with virtualization as well as those with some familiarity. Only those with some familiarity were asked most of the other survey questions. “I know a lot about it.” “I have a good idea of the concept.” “I have a general idea of the concept.” “I don't know anything about it.”

7. 7 Familiarity with Agencies’ Use of Virtualization (percentage of respondents, n=163) Even Among Those Familiar with Virtualization, Significant Lack of Awareness About Its Use and Implementation Among those who know about virtualization, almost one-quarter aren’t sure of how it’s being used at their agency. “I have a general idea of how it is used/managed at my agency.” “I have a good idea of how it is used/managed at my organization.” “I know a lot about how it is used/managed at my organization.” “I don't know anything about how it is used/managed at my organization.”

8. 8 Attributes Associated with Virtualization (percentage of all respondents both familiar and unfamiliar with virtualization, n=248¹) Virtualization Lacks Consistent Definition Among Federal Executives ¹ This number represents the total number of survey respondents: those who are unfamiliar with virtualization as well as those with some familiarity. Only those with some familiarity were asked most of the other survey questions.

9. 9 Impact of Virtualization on Federal Agencies (percentage of respondents, n=143) Executives Agree: Virtualization Can Bring Big Benefits to Agencies “Virtualization can provide major cost saving and capabilities that were previously unobtainable in the physical realm. Our virtualization efforts at my organization will change the way Marines use IT in the field.”

10. 10 Most Important Drivers/Incentives for Virtualization (percentage of respondents, n=133) Federal Executives See Numerous Drivers for Virtualization

11. 11 Agencies’ Pace Toward Creating Virtualized IT Environments (percentage of respondents, n=115) Agencies Are Too Slow to Virtualize, Say Federal Executives “It will happen over time with a change in organizational culture.”

12. 12 Prioritization of Virtualization Efforts at Agencies (percentage of respondents, n=146) Virtualization Unlikely to be Agencies’ Top Priority “I have a virtualization project that I have been trying to get IT to work on for over a year now. One IT person and I have done some set-up. Now we are waiting on a network guy. I have asked and asked, but he never has time to work on it with us.” “Virtualization momentum is increasing, but it has taken a lot of effort to get the initial buy-in through demonstration prototypes and getting the necessary equipment to move virtualization initiatives forward.”

13. 13 Virtualization Services That Agencies are Considering or Currently Using (percentage of respondents, n=153) At Agencies, Servers and Networks Most Likely to Be On The Way to Becoming Virtualized

14. 14 Phases of Virtualization Within Agencies’ IT Operations (percentage of respondents, n=185) Agencies’ Virtualized Efforts Are in Varying Stages of Maturity “There was not much research and planning put into the pilot and/or testing of the virtualization of servers and desktop deployment. Server virtualization is in operation but still learning to manage and maintain the consolidation of virtualized servers to be efficient and effective for the organization. “Yes, [virtualized systems are] already in use but on a very limited scale.”

15. 15 Evaluation of Agencies’ Virtualization Efforts (percentage of respondents, n=161) Many Agencies Falling Short on Virtualization Efforts 32% of respondents say their agencies’ efforts are “good” or “excellent.”

16. 16 Virtualization’s Performance Against Expectations (percentage of respondents selecting each choice) Respondents Unsure of How Agencies’ Virtualization Efforts Match Up Against Expectations

17. 17 Level of Concern Regarding Implementation/Operational Difficulties (percentage of respondents selecting each choice) Significant Concerns About Implementing and Operating a Virtualized Environment 73% 72% 69% 68% 67% 65% 63% 62% “Our management is way behind the times… they are afraid of anything new.”

18. 18 Security Risks of Concern (percentage of respondents selecting each choice) Security Issues are Also Cause for Executives’ Concerns

19. 19 “IT development in general needs better top-down management in my agency, and VM is no different.” “[My agency] is not being supportive on standing up our environment and we have been working at it for a year and a half.” Roadblocks Hindering Agencies’ Virtualization Efforts (percentage of respondents, n=115) Lack of Leadership, Funding are Keeping Agencies From Moving Ahead With Virtualization

20. 20 Solutions to Facilitate Virtualization Within Agencies (percentage of respondents, n=115) Executives Call for Clear, Simple Steps to Facilitate Virtualization

21. 21 Questions & Answers

22. 22 Contact Bryan Klopack Director of Research Tel 202.266.7122 bklopack@govexec.com http://www.govexec.com/GBC

23. 23 Proudly Underwritten By In Partnership with Oracle Corporation