County turns computer space to cash
- By Eric Kulisch
- Nov 27, 2000
Orange County, Calif., hopes a new business deal will turn excess data processing
capacity and other information technology resources into profit.
Orange County will receive $21 million from an expanded partnership
with Lockheed Martin IMS Corp., said Leo Crawford, the county's chief information
The additional revenue should help offset the $260 million cost of the
county's new information systems and telecommunications contract with Lockheed
Martin. Under the 11-year agreement, Lockheed Martin will use Orange County
facilities as a base for other outsourcing contracts. The company plans
to offer surplus mainframe computer space and shared personnel and infrastructure
to attract network support, printing and Web hosting contracts.
Governments are exploring new ways to pay for electronic government
infrastructure, "but this sort of approach is relatively unique," said Rishi
Sood, principal analyst for Gartner Group Inc.
Lockheed Martin officials forecast an additional $250 million in outsourcing
revenue from other public and private clients in southern California. Orange
County will share that windfall. On top of its $21 million payment, spread
out over the course of the contract, the county will receive 5 percent of
annual gross revenues exceeding $8.5 million, said Naomi Marr, vice president
for business development technology solutions.
Lockheed Martin IMS already processes data for the region's Transportation
Corridor Authority and other public agencies. It also provides network support,
mainframe programming, Web development and other support services to Orange