Carriers could benefit from 'trickle-down' government stimulus awards

Many network operators are focused on obtaining a potential financial boost from broadband stimulus awards —but a new survey from the Computing Technology Industry Association suggests network operators also could benefit from a trickle-down effect as customers in the government market receive their own stimulus funding.

Three quarters of respondents at federal, state and local government organizations said they have already received or expect to receive funding for information technology purchases from the stimulus bill. And while much of that money will go toward hardware including computers, the survey also found increased interest in software-as-a-service and cloud computing, suggesting some of the new funding could be spent with network operators. Stimulus funds could be a welcome relief to government agencies, which have experienced budget cuts that have minimized IT spending.

The top five factors affecting the government's ability to use technology, survey respondents said, were reduced budgets, lack of resources, outdated IT systems, a rapidly changing technology landscape and a lack of staff with the right skill sets. These challenges, however, could make IT decision-makers at government organizations more willing to try operator-provided IT services designed to help minimize capital expenditures.