Government Measures Prompt Public Sector Opportunities

The coincidence of a worldwide recession, government stimulus spending, and a new administration in the United States that relied heavily on technology and social networking during its presidential campaign has raised the profile of the public sector as a technology business opportunity. While public sector sales in the United States alone will probably generate more than US$3 billion for Microsoft in 2010, the company has refocused its marketing, particularly in the United States, to take advantage of stimulus funding. It must also avoid a potential pitfall—political enthusiasm for open source solutions that could affect proprietary software vendors.

The Economy and the Public Sector

The public sector has not been immune to the recession. Dramatic reductions in house values have had a significant impact on property taxes, which fund most school districts and municipalities in the United States. Income tax reductions affect state and federal governments, reducing their interest in anything but maintaining current IT infrastructures and reducing costs.