Government spends up on hardware

Government spends up on hardware

Annual hardware sales to the Federal Government leapt by nearly 25 per cent in the past year to $533 million, according to a new research report.

Intermedium's annual review of the federal ICT hardware market found one-third of hardware contracts in 2005/2006 were worth more than $5 million.

"We have observed that there's a general trend towards bigger contracts," research principal, Kim James, said. "The Department of Defence and Centrelink have largely engaged in centralised procurement."

A key contributor to the increase was desktop contracts, which more than doubled in value to $70.7 million in 2004/2005. Another top performing technology category was storage. Sales increased by 300 per cent year-on-year.

James said the Department of Defence and Centrelink had engaged in major refresh contracts over the past year. Defence dominated the figures, representing almost half of all contracts by value ($250 million). They included two of the largest hardware rollouts in 2005/2006 with HP worth $26.2 million and $14.9 million, respectively.

Accounting for a quarter of all defence hardware purchases also saw HP snatch the top hardware supplier's spot from IBM. The vendor had held the position for two years. HP also made up 62 per cent of the total value of the server and large computing systems market.

Other significant hardware suppliers to Defence during 2005/2006 included ASI Solutions (24 per cent of desktop contracts worth $4.25m) and ADI (22 per cent of networking contracts).

The Intermedium report is based on hardware procurement across all Federal Government agencies but excludes those sourcing product through outsourcing agreements. It covers eight categories: desktop, laptop, input, large computing systems, network, PDA, printer and storage.

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