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Storage Counts on Gov't Spending

When it comes to managing records, does anybody have more important storage needs than government agencies? Tax records, driverss licenses, social security information, voter registration, and other data reside on federal and local government storage systems. The armed forces and federal agencies such as NASA, the Library of Congress, National Weather Service, and Homeland Security also have tremendous storage needs.

All of that helps storage companies grab their share of federal government IT spending, which the Office of Management and Budget pegs at $59.8 billion in 2005, according to Input, a consultancy specializing in the federal market (see Report: Fed Spending Slows).

Input says the Army, Navy, and Air Force have each requested $5 billion in IT spending for 2005. It’s unclear how much of those budgets will go towards storage, but government agencies ranging from NASA to the Italian government made major storage buys in the past year.

NASA is like a mini-vertical storage market by itself. Since the start of 2003, Advanced Digital Information Corp. (Nasdaq: ADIC), BakBone Software Inc. (Toronto: BKB), BlueArc Corp., DataDirect Networks Inc., Dell Computer Corp. (Nasdaq: DELL), EMC Corp. (NYSE: EMC), and Spectra Logic Corp.
announced storage contracts with the space agency. (See EMC Makes Startup Drop Name, NASA Picks BakBone for Mars Mission, BlueArc Wallows in $47M Haul, NCSA Puts in DataDirect's Storage, Star Warriors Install Dell/EMC SAN, and Spectra Logic Backs Up Mars Mission.)

EMC is embedded in the military, thanks to a $40 million deal with the Pentagon and contracts with the Air Force Mobility Command and Army National Guard (see EMC Wins $40M Pentagon Contract). EMC also lists the U.S. Patent & Trademark Office (USPTO) among the 500 customers under its Federal Division (see EMC Trots Out Symmetrix Customers).

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