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Transforming Government Functions with Commercial Software

Insights from Baird’s Defense & Government Conference

After years of broad acceptance of commercial off-the-shelf software and SaaS solutions by state and local governments, the federal government is finally beginning to embrace commercial software as well. This was the conclusion of a panel of software companies that are examples of this fast-unfolding trend at Baird’s 7th Annual Defense & Government Conference in Tysons Corner, Virginia.

The discussion was moderated by Chase Sanders, Managing Director in Baird’s Software practice, and featured Haresh Bhungalia, CEO – Casepoint; Chris Faraji, EVP – WellHive; Howard Langsam, CEO – OPEXUS; and Carrie Wibben, President – Exiger.

Photos of presenters at the 2024 Baird Defense & Government Conference

Highlights from the panel include:

  • While willingness and adoption can vary by agency and mission, federal government agencies have increasingly shown a willingness to purchase technology from commercial vendors in a SaaS-like model. While long-held preferences to keep data behind government firewalls or invest in homegrown tools linger in some pockets, the trend is clear – albeit moving at a typical government pace.

 

  • Software companies that sell to both commercial and federal entities are experiencing a positive feedback loop. Commercial customers value the robust security credentials required by government agencies, while federal customers want to invest in commercially accepted technology and value the strategic pace of commercial innovation. Companies that are able to navigate the nuances of serving both customer bases can find themselves well positioned for consistency and success in an evolving economic environment.

 

  • The cost and complexity of federal compliance and security measures continue to grow. It can take years and millions of dollars to achieve Fed RAMP certification. Despite the mounting costs of compliance, these investments remain critical to doing business with the federal government.

 

  • Where are the best opportunities for commercial software providers in the federal government? Panelists highlighted a range of opportunities for aspiring founders, including data management and analytics, AI, bridging administrative gaps between healthcare-oriented agencies, government efficiency and internal workflows.

 

The Baird Global Investment Banking team brings together expertise in the Software and Government markets with deep understanding of the emerging technologies utilized in the public sector. We welcome the opportunity to discuss these themes and how they may impact your business or future strategy.