I have now worked at several software companies who have either entered or considered entering the US federal government market. From a distance, this market appears very attractive. After all, the government spends about $90B per year on IT services, an addressable market size that dwarfs private sector IT spending of whole countries. Sometimes, individual solicitations like the (recently-cancelled) $10B JEDI initiative can do so as well.
However, many tech CEOs often make the mistake of assuming that the capabilities needed to service this market are similar to those that need to be developed for pure geographic expansion. Simply hire a sales specialist and you’re done, right? Wrong. Failure to anticipate and build critical product features that are mandatory for successful entry into this market, as well as understanding the peculiarities of the go-to-market capabilities necessary to do so, are the two biggest mistakes I’ve seen when tech CEOs seek to capture US federal government market share.
Below are the various product, marketing, sales, and channel requirements that CEOs and product managers must consider prior to entry so that you do not unintentionally turn that attractive top line into a negative bottom line.
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