When someone says they shop at Costco, you can likely assume they are either: 1) a member of the public seeking lower cost options to everyday expenses 2) a member of the retail community seeking to apply margins to low cost products. Either way, shopping at Costco or any other wholesale warehouse seems to have become a means of survival for those weathering the last few years of the infamous economic “downturn” and a symbol of consumer adaptation.
In a federal technology-focused e-newsletter this week, I was humored by use of the term ‘Costco Federal’ when referencing the strategy and tactics some agencies are using to procure the latest IT products. While the popular wholesale warehouse chain is not, to my knowledge, currently competing for large government IT procurements, the term undoubtedly demonstrates a resounding anticipation of the need to “save money” as we enter the next fiscal year. Given the strained economy, coupled with the uncertainties of an approaching election year and headlines like “Budget austerity is coming — what should you do?” , I think it is safe to conclude that today’s IT purchasing decisions are being greatly influenced by a knowledge of the inevitable — budgets WILL be cut. Keep reading →