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The $50 Billion Opportunity: How Strategic IT Asset Management Can Transform Federal Modernization

By Laurie Shrout
June 14, 2025

The Department of Veterans Affairs' Electronic Health Record Modernization (EHRM) program represents one of the largest federal IT transformations in recent history. While the program has faced challenges, with costs evolving from an initial $16.1 billion estimate to a comprehensive $49.8 billion lifecycle investment, it provides invaluable lessons about the critical role of strategic VA IT asset management in successful large-scale federal modernization efforts.

Understanding Complex Federal IT Transformations

The VA's EHR modernization journey highlights the complexity of transforming healthcare IT across a vast federal enterprise. Since the program's launch in 2018, the department has successfully deployed the new Oracle Cerner system to six medical centers, with valuable lessons learned during a strategic pause implemented in April 2023 to optimize the approach for future deployments.

The Government Accountability Office (GAO) has identified key areas where enhanced IT asset management practices can strengthen federal modernization efforts.

Learning from Implementation Experiences

Configuration Management Evolution

The VA currently manages over 1,800 configuration change requests, representing opportunities to refine asset lifecycle management approaches. Enhanced configuration management capabilities would include:

  • Streamlined change control processes enabling efficient modification management
  • Automated configuration discovery and tracking providing real-time system visibility
  • Standardized asset baselines ensuring consistent deployment foundations
  • Proactive monitoring of system modifications supporting optimal performance

Asset Visibility Enhancement Opportunities

According to GAO analysis, enhanced practices would include:

  • Complete IT infrastructure cataloging providing foundation for informed decisions
  • Comprehensive dependency mapping between systems and applications
  • Thorough compatibility assessment supporting smooth integration
  • Accurate asset lifecycle planning enabling predictable budgeting

Essential Platform Capabilities for Federal ITAM

Organizations pursuing similar transformations benefit from platforms offering comprehensive asset management capabilities:

Unified Asset Repository

  • Centralized asset database serving as single source of truth for all IT resources
  • Automated discovery capabilities for hardware, software, and cloud resources
  • License optimization features ensuring compliance while minimizing costs
  • Configuration management tools preventing backlogs and maintaining system integrity

Advanced Analytics and Reporting

  • Real-time monitoring capabilities providing ongoing visibility into asset performance
  • Predictive analytics supporting proactive maintenance and replacement planning
  • Compliance reporting ensuring adherence to federal requirements
  • Cost optimization recommendations maximizing value from technology investments

Building on Federal ITAM Achievements

Federal agencies continue to demonstrate the value of strategic asset management. The VA has already achieved $65 million in software licensing savings through improved ITAM practices, illustrating the significant potential for expanded implementation across government operations.

These achievements provide a foundation for broader federal ITAM success:

  • Proven methodologies that work in complex federal environments
  • Measurable outcomes demonstrating clear return on investment
  • Scalable approaches suitable for large, distributed organizations
  • Compliance integration meeting unique federal requirements

Strategic Investment Opportunities

The VA's commitment to technology modernization continues with significant funding allocations. Current budget documents show $6.3 billion allocated for IT systems in FY25, with $894 million specifically for EHR modernization—investments that comprehensive asset management can optimize for maximum value.

Immediate ITAM Enhancement Opportunities

  1. Comprehensive asset assessment of current deployment environments
  2. Automated discovery implementation for complete system visibility
  3. Configuration management database establishment for systematic change control
  4. Software asset management deployment for licensing optimization

Long-term Strategic Advantages

  • Enhanced budgeting accuracy through comprehensive asset lifecycle forecasting
  • Improved risk management via detailed dependency mapping and analysis
  • Strengthened vendor relationships supported by performance metrics
  • Streamlined compliance through automated audit trails and reporting

The SIE Group's Strategic Partnership Approach

The SIE Group's federal ITAM expertise helps agencies build upon lessons learned and achieve modernization success. Our strategic partnership approach emphasizes:

  • Senior-level engagement ensuring alignment with agency missions and objectives
  • Platform-agnostic expertise leveraging proven federal implementation methodologies
  • Compliance-first approach addressing unique federal requirements and standards
  • Change management excellence supporting smooth transitions and user adoption

Recent federal client engagements demonstrate how strategic ITAM implementation can reduce modernization costs by 30-40% while significantly improving project success rates and outcomes.

The Path to Modernization Excellence

The VA's EHR modernization experience provides valuable insights into the essential role of comprehensive IT asset management in federal transformation efforts. The fundamental opportunities—enhanced asset visibility, systematic change control, comprehensive risk assessment—represent proven areas where strategic ITAM frameworks create measurable value.

Successful federal IT modernization requires:

  • Strategic planning incorporating comprehensive asset management from project inception
  • Technology investment in platforms that provide enterprise-scale asset visibility and control
  • Process optimization ensuring efficient change management and configuration control
  • Stakeholder engagement building support for systematic asset management approaches

Key Takeaways for Federal IT Leaders

The VA's experience offers several important insights for federal agencies pursuing major IT modernization:

  1. Comprehensive asset management is foundational to successful large-scale transformation
  2. Early investment in ITAM capabilities pays dividends throughout project lifecycles
  3. Change management integration prevents configuration backlogs and system issues
  4. Vendor relationship optimization through strategic asset management improves outcomes
  5. Continuous improvement approaches enable agencies to build upon initial successes

With significant continued investment in federal IT modernization, strategic ITAM implementation can help agencies achieve their transformation objectives while maximizing value for taxpayers and mission beneficiaries.

Ready to build upon federal ITAM success stories and optimize your modernization investments? Schedule a no-cost assessment with The SIE Group's federal ITAM specialists to learn how our proven methodologies can help your agency achieve transformation excellence while delivering measurable value to stakeholders.

About SIE

The SIE Group is a Service-Disabled Veteran Owned Small Business (SDVOSB) specializing in federal IT asset management, strategic sourcing, and modernization solutions, with proven expertise helping agencies like the VA achieve $65 million in software licensing savings through strategic ITAM implementation. Founded in 2014, SIE has become the government's foremost expert in software licensing strategy and cost savings, leveraging this experience to help federal agencies avoid costly overruns like the VA's $33.7 billion EHR budget increase. Our team of seasoned public and private sector advisors delivers smart, efficient IT solutions that reduce costs and optimize performance through asset management, sourcing, and cloud migration services, ensuring federal agencies achieve measurable results while maximizing taxpayer value.