US Federal Government Demands IT Consulting Firm “Defends the Spend” in a Bid to Take Back Some of the $65 Billion Committed to Contracts

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• The US administration is making clear its aim to improve government efficacy and slash expenses across the board.

• In IT, the General Services Administration (GSA) singled out its 10 largest consulting partners, demanding they justify their contracting value to reduce the current $65 billion public sector spend.

Change is inevitable with administration transitions, but the sharp pendulum swings the Trump US presidency brought with it have been swift and dramatic. There is no surprise that cuts were coming, but the shock is the speed and scale at which it is happening, and the profound impact these moves are having on IT specifically.

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Heathrow: Planes, Flames, and Automated Data Center Power Resilience

R. Pritchard

Summary Bullets:

• The fire near the UK’s Heathrow Airport, which closed a key electricity substation, disrupted travel at the world’s second-largest air travel hub.

• The many data centers located nearby (about 10% of UK capacity) showed no disruption as they switched to back-up power supplies.

On Friday March 21, 2025, a fire at an electrical substation providing power to Heathrow, the UK’s leading airport and the second largest in the world, forced its closure, leading to the cancellation of more than 1,000 flights, affecting about 200,000 passengers, and having knock-on effects across the global air travel industry.

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Generative AI Watch: At GTC 2025, NVIDIA Envisioned a World Beyond Large Language Models

B. Valle

Summary Bullets:

• NVIDIA believes enterprises are evolving from digital transformation driven by large language models (LLMs), and towards physical AI, or spatial AI, and multimodal AI.

• The industry at large is turning to “reasoning” models, capable of offering more analysis and autonomy than LLMs, especially combined with AI agents.

GTC is NVIDIA’s most important conference, focused on developers, who are the core of the AI market. This year, the event was held on March 17-21 in San Jose, California (US). NVIDIA believes that enterprises should be diversifying from purely digital transformation driven by LLMs, and towards physical AI or spatial AI, as well as multimodal AI, robotics, and AI at the edge. For this reason, the event tilted towards the industrial, automotive, and manufacturing sectors. The industry at large is turning to “reasoning” models, capable of offering more analysis and autonomy than LLMs, especially combined with AI agents. This transition should bring further demand for raw computing power, despite efficiency gains in terms of chipset architectures.

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