What's the forecast for GSA Networx and Federal telco? Dare I say it -- cloudy, according to a recent MeriTalk study - Off the Hook - fielded at this year's Suss Federal Networks conference.

 

Crossed Wires

Industry and government aren't disputing the phone bill. Considering 2011 spending and revenue - 50 percent of government Networx customers increased spending vs. 44 percent of industry increased their contract revenue. However, wires are crossed on future calling plans. Eighty-six percent of Networx suppliers predict 2012 revenue will rise. Only 13 percent of government see their Networx spend increasing. Thirteen - unlucky for some. If industry plans to meet sales quota, contract holders better hope that 13 percent spends a lot more.

 

Friends & Family

But, it makes sense to place a call outside GSA's immediate area code to hear voices beyond the Networx Friends & Family plan - agencies that don't currently use Networx. Everybody agrees that the contract is easy to use, but 52 percent of Feds see Networx adoption on hold. A whopping 71 percent of respondents say their agency has not made any purchases on the contract.

 

Collect Call

In today's budget-constrained world, Feds are shouting the cost savings imperative. Sixty-four percent are much more focused on cost savings than last year. Thirty-one percent are more focused on cost savings than last year. Only five percent say the savings priority is the same year on year. Industry is picking up the receiver - 60 percent say they’re delivering more value for the same cost. But only one in three plan to reduce their prices.

 

IT Phone Home?

And, buyers and suppliers aren't on the same line when it comes to where to look for savings. Twenty-five percent of Feds voted for telework as the hottest cost cutter, followed by data center consolidation at 19 percent. Forty-three percent of industry voted for data center consolidation as the best penny pincher - only eight percent pinned their savings hopes on telework.

 

Can You Hear Me Now?

One message that came through loud and clear - mobility cometh. Feds and industry agreed that Uncle Sam will quickly embrace mixed use/BYOD. Thirty-nine percent of government and 56 percent of industry anticipate BYOD across government by 2014. Counterpoint, 34 percent of government and 24 percent of industry respondents believe that personal use of government-furnished phones is more likely.

 

Before you hang up, how relevant is Networx? Is Networx the Zack Morris phone? What's the future in a cloud UC world? Looking at savings, government needs to act differently, not just give lip service to austerity message. Then industry will get the message - and change its behavior and/or pricing. Recognize and reward innovation, please. Feds are adding telework on speed dial. Mobility matters. And cloud…well, it might just be your “smooth operator.”  And before you ask, no, that’s not my ring back tone.