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On one side of history, the newer generation of vendors benefited greatly from the federal government. Ever heard of Fidelis, Palo Alto, ArcSight or Blue Coat? That is a partial list of startups focusing on government after Y2K. If you reviewed those companies sales for the first five-plus years of their existence, more than 50%and probably closer to 90%went to the federal government. Their products, features, staff and market position were all created by sales to the federal government with no special programs or funding avenues to take advantage of. The federal government was actually the Yellow Brick Road, not the Valley of Death.

However, before FASA/FARA, we encountered several companies that once stood as giants but eventually succumbed to the fast-changing industry. Novell, once a dominant force in networking operating systems, could not scale or adapt to meet the ever-changing market demands and lost its position to Microsoft. The browser pioneer Netscape faced a similar fate as it failed to transition effectively in fierce competition from Internet Explorer and Google. These examples teach us the importance of adaptability and the risks of stagnation in a rapidly evolving market. For both vendors as well as users, adaptability is key to survival. Maybe you have a policy that is 10 years old and unchanged. If so, you may want to look at it. This is one of the DNA factors for the government Valley of Death creation. They dont like change; they like safety and security. Industry doesnt want that. It does not make you money.

The federal governments adoption of innovative technologies has frequently presented its unique set of challenges. Centralized procurement and decision-making processes have often resulted in long sales cycles, making it challenging for the government to respond quickly to emerging technology trends. While centralization offers economies of scale, it can hinder the timely implementation of cutting-edge solutions, particularly in the face of evolving threats and opportunities. When the industry started, we needed centralization. Multiple operating systems, office suites and hardware manufacturers caused many inefficiencies and problems. That environment no longer exists, but the policies do. Does your agency test all updates before they are pushed out to all users? The blue screen of death is ancient history, but the policies to prevent it are not.

Over the years, various government initiatives have demonstrated how innovation can thrive despite the current Valley of Death challenges. The Defense Advanced Research Projects Agency (DARPA), renowned for its role in developing breakthrough technologies like the internet and GPS, showcases how targeted investments and risk-taking can revolutionize the technology landscape. Moreover, the Small Business Innovation Research (SBIR) program has nurtured numerous startups, fostering a culture of innovation within the government. But even those are large and slow programs.

Excerpt from:
The 'Valley of Death' or the 'Yellow Brick Road'? - Signal Magazine