Executive Summary
Hawaii budgets on a two-year (biennial) cycle and runs roughly a $20B all-funds operating budget, with about $10.6B in general funds. Technology spend is not a single line item — it sits with the Office of Enterprise Technology Services (ETS) and is distributed across agencies and the University of Hawaii. Three threads matter most for a Dell seller. First, leadership: Christine Sakuda became State CIO and ETS administrator in 2025, the state's first female CIO of Native Hawaiian ancestry, and is driving a practical AI roadmap for agencies. Second, connectivity: the Connect Kākou initiative has $500M+ in federal, state, and private funds, including a ~$120M inter-island undersea fiber system (Hawaiian Islands Fiber Link) targeting service in late 2026 and ~$149.5M in BEAD funding. Third, context: Hawaii hosts U.S. Indo-Pacific Command (INDOPACOM), Pearl Harbor, and DISA Pacific — a dense federal/defense buyer base adjacent to (but separate from) the state market. Buying runs through the State Procurement Office and NASPO ValuePoint cooperative contracts; the University of Hawaii is a large independent research-computing and broadband buyer.
- Agency AI adoption under the ETS roadmap — governed, auditable AI for permitting, disaster response, and service delivery (private/on-prem for sensitive workloads).
- Broadband and inter-island connectivity buildout (Connect Kākou / HIFL) — networking, edge compute, and resilient infrastructure across six islands.
- Disaster-resilience and recovery modernization in the wake of the 2023 Maui wildfires — secure, redundant compute and data protection.
- Endpoint, client, and lifecycle refresh across state agencies, the Department of Education, and the University of Hawaii.
Dell Action Plan
- Build the ETS relationship around the AI roadmap — position governed, private/on-prem and private-cloud AI for sensitive agency workloads (permitting, disaster response, services).
- Engage the University of Hawaii and UH Broadband Office on Connect Kākou / HIFL — networking, edge compute, and resilient infrastructure for a six-island buildout.
- Lead with disaster-resilience and data-protection messaging — redundant, island-aware compute and backup/DR resonate post-Maui and in a climate-exposed state.
- Validate Dell's NASPO ValuePoint coverage and Hawaii SPO contract/reseller scope before pursuing agency deals.
- Coordinate state and federal account teams — the INDOPACOM / Pearl Harbor / DISA Pacific footprint is a major adjacent opportunity and a credibility anchor.
Budget & Fiscal
Hawaii budgets on a two-year (biennial) cycle; the Governor submits in December and fiscal years begin July 1. The enacted FY2027 supplemental budget (HB 1800 / Act 175), signed by Gov. Green on June 26, 2026, totals $20.31B all-funds ($10.63B general fund), plus $4.53B in capital-improvement appropriations. There is no single statewide 'IT budget' line — technology spend is distributed across agencies, ETS, the Department of Education, and the University of Hawaii, plus a set of named, largely federally funded connectivity programs.
- Budget figures are annual within a two-year (biennial) appropriation; confirm the enacted vs. supplemental figure before forecasting.
- Most large connectivity dollars are federally sourced and flow through the University of Hawaii Broadband Office, not a state IT agency.
- FY2027 ENACTED (HB 1800 / Act 175, signed June 26, 2026): $20.31B all funds, $10.63B general fund, plus $4.53B in capital-improvement appropriations ($1.51B general obligation) — close to the governor's December 2025 proposed supplemental (~$20.4B all funds / $10.59B GF per NASBO). Record investments in infrastructure, housing, and healthcare, with a $1.68B Emergency and Budget Reserve Fund.
Initiatives & Policy
Connect Kākou — Statewide Broadband5
BuildingConnect Kākou is the Green administration's flagship broadband program with $500M+ in federal, state, and private funds. It includes ~$149.5M in BEAD funding (final federal approval to draw down, Jan 2026) to serve ~7,000 locations, ~82% via fiber. The University of Hawaii Broadband Office oversees implementation and contracts. A multi-island connectivity buildout creates demand for networking, edge compute, and resilient infrastructure.
Hawaiian Islands Fiber Link (HIFL)19
Timeline slipped to 2027A ~$120M open-access, carrier-neutral inter-island undersea fiber system linking Oahu, Hawaii Island, Maui, Kauai, Lanai, and Molokai. UH awarded the build contract in 2025; the 24-fiber-pair system has a 25-year design life. Originally targeted for ready-for-service in late 2026, the timeline has slipped to 2027: in July 2026 the project secured Department of Hawaiian Home Lands approval to cross their land after extended community engagement over the cable route through Puhi Bay's coral reef ecosystems, with further permitting still ahead. It addresses Hawaii's core constraint — island isolation and single-points-of-failure — and pairs naturally with redundant data infrastructure and disaster-resilient compute.
ETS AI Roadmap & Generative AI Governance6
In progressETS is required to report to the Legislature on generative-AI risks and benefits and is standing up data-sharing/governance working groups. CIO Christine Sakuda is driving a practical AI roadmap spanning permit processing, disaster response, and service delivery. Agencies need governed, auditable AI — an opening for private/on-prem and private-cloud AI on sensitive data rather than open public models.
Disaster Resilience & Recovery Modernization10
OngoingFollowing the 2023 Maui wildfires and as a climate-exposed island state, Hawaii prioritizes resilient, redundant systems and rapid recovery. The Governor's supplemental budget emphasizes infrastructure and climate resiliency. This favors secure, redundant compute, backup/DR, and data-protection offerings — and reinforces the case for distributed infrastructure across islands.
Federal / Defense Adjacency (INDOPACOM)8
ContextHawaii hosts U.S. Indo-Pacific Command, Pearl Harbor Naval Shipyard, Joint Base Pearl Harbor-Hickam, and the DISA Pacific data center. The state carries roughly 8% of the military's construction budget — the highest share of any state — including a $1.2B Pearl Harbor dry dock. This is a separate federal buying motion from the state market, but a major regional tailwind for Dell Federal/ISG and a reason to coordinate state and federal account teams.
Procurement & Competition
The State Procurement Office (SPO) is the central authority on procurement statutes and rules for the State and its counties. Technology purchasing commonly runs through SPO price-and-vendor-list contracts and the Cooperative Purchasing Program, which leverages NASPO ValuePoint and other multi-state cooperatives. The Office of Enterprise Technology Services (ETS) sets IT governance, the statewide IT portfolio/roadmap, and the IT budget/spend-request cycle that agencies follow.
| Vehicle / gate | What it means for Dell |
|---|---|
| NASPO ValuePoint (via SPO) | Primary cooperative path for IT — multi-state pre-competed contracts. Confirm Dell agreements and Hawaii participation/resellers are current and correctly scoped. |
| SPO Price & Vendor List Contracts | State-established contracts that agencies and counties buy from without running their own solicitation. |
| Cooperative Purchasing Program | Piggyback purchasing under HRS 103D / HAR 3-128; jurisdictions must comply to use cooperative contracts. |
| Key buying entity | Role |
|---|---|
| ETS (Office of Enterprise Technology Services) | Central IT governance, statewide IT portfolio/roadmap, AI policy, and the IT budget/spend-request cycle. |
| State Procurement Office (SPO) | Central procurement authority for the State and counties; owns cooperative and price-list contracts. |
| University of Hawaii (UH) | Large independent research-computing buyer; runs the UH Broadband Office and Connect Kākou / HIFL contracts. |
| Dept. of Education / Health | Among the largest agency IT and modernization spenders. |
Hawaii is a relationship- and cooperative-driven market with a small in-state vendor base and high logistics/connectivity costs. Differentiation comes from resilient, redundant, island-aware infrastructure, AI-roadmap alignment with ETS, NASPO-ready offerings, and the ability to coordinate across state, UH, and the large adjacent federal/defense footprint rather than price alone.
Power Structure
| Decision-maker | Why they matter |
|---|---|
| Josh Green, M.D.2 Governor · State of Hawaii | Champions Connect Kākou broadband and climate/disaster resiliency; sets the modernization agenda. |
| Keith Regan18 Comptroller (DAGS) & Acting Lt. Governor · Dept. of Accounting & General Services | DAGS director and Comptroller — the State CIO/ETS now reports to the Comptroller, and DAGS oversees procurement support. Also designated Acting Lt. Governor on Apr 24, 2026 while Lt. Gov. Sylvia Luke is on indefinite unpaid leave; he retains his DAGS/Comptroller duties. Luke was indicted July 25, 2026 on bribery/conspiracy charges tied to a 2022 COVID-19 testing contract, pleaded not guilty July 30 (trial set Sept. 28, 2026), and has not resigned despite Gov. Green's repeated calls to do so — Regan's dual role likely continues through the case. Has said he does not plan to run in the Aug 2026 primary. |
| Christine Sakuda2 State CIO & ETS Administrator · Office of Enterprise Technology Services (within DAGS) | In role since Aug 2024; Senate advise-and-consent reaffirmed Mar 2026. First female CIO of Native Hawaiian ancestry. Owns statewide IT direction and the AI roadmap; CIO now reports to the Comptroller (DAGS), not the Governor. |
| Vincent Hoang14 State Chief Information Security Officer (CISO) · Office of Enterprise Technology Services | Leads the statewide cybersecurity program for the executive branch; emphasizes AI-driven threats and workforce/awareness. Verified current as of June 2026. |
| University of Hawaii / UH Broadband Office Implementation lead · University of Hawaii | Oversees Connect Kākou implementation and the HIFL undersea-fiber and BEAD contracts. |
| State Procurement Office (SPO) Central procurement authority · State of Hawaii | Owns cooperative/NASPO and price-list contracts — the path to most state IT buys. |
News & Signals
Sources
- Hawaii Dept. of Budget & Finance — Executive Biennium Budget FY2025–27
- Hawaii ETS — Office of Enterprise Technology Services (CIO Sakuda)
- DBEDT — Fourth Annual Hawaii AI & Cloud Innovation Summit (Sakuda keynote)
- University of Hawaii — $120M undersea fiber (HIFL) project
- Hawaii News Now — Hawaii awarded ~$149M to expand high-speed internet (Connect Kākou)
- Honolulu Civil Beat — Is Hawaii doing enough to rein in AI?
- Office of the Governor — Federal approval advances Hawaii's broadband expansion
- Hawaii Tribune-Herald — Pentagon seeks Pacific-forces spending; Hawaii's defense footprint
- NASBO — Hawaii state budget summary (FY2026–27)
- Hawaii State Procurement Office — Cooperative Purchasing Program
- Office of the Governor — Gov. Green Balances Financial Plan and Signs Budget (HB 1800, June 2026)
- Hawaii News Now — Bill requiring AI platforms to protect minors awaits governor's signature (SB3001, June 2026)
- Office of the Governor — Green Names Keith Regan as Acting Lieutenant Governor (Apr 2026)
- Hawaii ETS — State of Hawaii Cyber Security Program (CISO Vincent Hoang)
- Big Island Now — Gov. Josh Green Signs Budget with Key Investments (HB 1800 / Act 175, June 2026)
- Big Island Video News — New Artificial Intelligence Laws Enacted in Hawai'i (July 14, 2026)
- Honolulu Civil Beat — Hawai'i School Contract Failures Triggered Holdup of $30M+ for Meals (April 2026)
- Honolulu Star-Advertiser — Luke and Others Plead Not Guilty; Green Again Calls on Lieutenant Governor to Resign (July 31, 2026)
- West Hawaii Today — Underwater Fiber Cable Project Clears Hurdle (July 27, 2026)