Executive Summary
Maryland is modernizing aggressively while absorbing a historic fiscal squeeze. Governor Moore signed a ~$70.8B FY2027 budget in April 2026 with no new taxes or fees, a Rainy Day Fund held at 8%, and General Fund spending actually below FY2026 — this after the FY2026 budget (~$67.3B) closed roughly a $3B structural deficit, the largest gap in about two decades. Technology spend stays concentrated where it returns the most — centralization, legacy modernization, and AI-enabled service delivery. The Department of Information Technology (DoIT), led by Secretary Katie Savage, published a 2025 IT Master Plan (FY2026–2028) built on workforce, system centralization, and security, and stood up Maryland Digital Service, an AI Innovation Lab, and a high-profile Anthropic/Percepta AI partnership. The IT Investment Fund for Major IT Development Projects roughly doubled to $130M in FY2026, funding 58 projects. Maryland's defining advantage is cyber: Fort Meade, NSA, and U.S. Cyber Command anchor the nation's densest cyber ecosystem, reinforced by 2025 cyber legislation and a $1B 'Capital of Quantum' initiative with the University of Maryland. For Dell, the motion runs through DoIT statewide IT contracts and the eMaryland Marketplace Advantage (eMMA) portal, with cyber, AI, and modernization as the lead angles.
- Legacy modernization across 58 funded Major IT Development Projects ($130M ITIF) — compute, storage, and services to retire aging state systems.
- Cyber demand tied to Fort Meade / NSA / U.S. Cyber Command proximity plus 2025 state and local cyber laws — secure infrastructure, zero-trust, and OT/water-system protection.
- AI-enabled service delivery (AI Innovation Lab, Maryland Digital Service, Anthropic/Percepta partnership) — governed on-prem and private-cloud AI for sensitive benefits and housing workloads.
- Quantum and research-computing infrastructure via the $1B 'Capital of Quantum' initiative and the University System of Maryland.
- Endpoint, client, and lifecycle refresh as DoIT centralizes duplicated agency IT under a single operating model.
Dell Action Plan
- Lead with cyber: leverage the Fort Meade / NSA / Cyber Command ecosystem and 2025 cyber laws to position secure infrastructure, zero-trust, and OT/water-system protection for state and local entities.
- Tie Dell offerings to the 2025 IT Master Plan's centralization and legacy-modernization agenda — frame compute/storage/services around lower total cost given the deficit climate.
- Position governed, private/on-prem AI for the AI Innovation Lab, Maryland Digital Service, and the Anthropic/Percepta workloads handling sensitive benefits and housing data.
- Engage the University System of Maryland and the 'Capital of Quantum' program as research-computing and data-center infrastructure buyers.
- Confirm Dell's DoIT statewide IT contract coverage and authorized resellers are current, and register/monitor eMMA so opportunities are captured early.
Budget & Fiscal
Maryland budgets on an annual fiscal cycle beginning July 1, so FY2027 is the year now in progress. Governor Moore signed the ~$70.8B FY2027 budget in April 2026 with no new taxes or fees, the Rainy Day Fund held at 8%, a $250M fund balance, and General Fund expenditures below the prior year. It follows the FY2026 budget (~$67.3B), which closed one of the state's largest structural deficits in two decades — an estimated ~$3B gap — without raising sales or property taxes. There is no single 'state IT budget' line; technology spend sits inside DoIT's operating budget plus the IT Investment Fund (ITIF) that capitalizes Major IT Development Projects, with additional technology dollars distributed across agencies and named initiatives like quantum and broadband.
- Figures are annual; FY2027 began July 1, 2026 and is the year now in progress. Department-level detail below (IT Investment Fund, quantum seed) is still the FY2026 breakout — FY2027 line items were not separately published at the time of this update.
- The deficit-driven climate favors modernization that cuts cost (centralization, legacy retirement) and high-ROI AI over net-new discretionary spend.
- Broadband (BEAD) dollars are federal pass-through and subject to revised NTIA rules issued in 2025.
- FY2027 budget signed April 8, 2026: ~$70.8B all funds (~$27.7B general fund), closing a ~$1.5B structural deficit with ~$900M in cuts and no new taxes; rainy day fund held at 8%. Sustains CyberMaryland, quantum/Deep Tech, and the new MD TRAIN AI-workforce program. Resolved in regular session — no special session required.
Initiatives & Policy
2025 IT Master Plan & System Centralization3
Active (FY26–28)DoIT's 86-page 2025 IT Master Plan (FY2026–2028) is built on three pillars: modernizing the IT workforce (AI, cyber, data skills), centralizing duplicated agency systems under clear ownership, and strengthening security. It launched Maryland Digital Service and Maryland Benefits ('One Application'). Centralization and legacy retirement create direct demand for refreshed compute, storage, and services.
Cyber Ecosystem (Fort Meade / NSA / Cyber Command)7
StrongMaryland is arguably the nation's cyber capital — Fort Meade, NSA, and U.S. Cyber Command anchor an unmatched talent and mission density. 2025 laws revised the Cyber Maryland Program (SB867/HB1062), pushed zero-trust for public water/wastewater OT (SB871/HB1062), and broadened the Cybersecurity Council's charter to assess AI and quantum risk (SB294). Strong angle for secure infrastructure, OT protection, and zero-trust services.
AI Enablement, Innovation Lab & Anthropic Partnership11
ScalingBuilding on Moore's 2024 AI executive order and the AI Governance Act (SB818), Maryland's 2025 AI Enablement Strategy targets 12 critical domains. In Nov 2025 the state announced a landmark Anthropic/Percepta partnership (with the Rockefeller Foundation) to apply AI to benefits and housing, and in 2026 launched an AI Innovation Lab inside DoIT — a secure sandbox for agency AI. Opening for governed, private/on-prem AI on sensitive data.
'Capital of Quantum' Initiative9
Launched (Jan 2025)A $1B, five-year initiative with the University of Maryland to make the state the 'Capital of Quantum,' seeded with $27.5M in the FY2026 budget plus $185.4M committed to Zupnik Hall. IonQ is expanding HQ, labs, and a data center in UMD's Discovery District. Drives research-computing and data-center infrastructure demand across the University System of Maryland.
Statewide Broadband (BEAD)8
In deploymentThe Office of Statewide Broadband administers Maryland's ~$267.7M federal BEAD award, with pre-qualification and applications run through 2025. Revised 2025 NTIA rules reshaped plans and funding. Less of a direct Dell hardware play, but a backdrop for edge connectivity and the digital-equity narrative.
Procurement & Competition
Maryland's central technology authority is the Department of Information Technology (DoIT), which sets statewide IT policy, security, and standards and maintains statewide IT master contracts. Most state and University System procurements — including IT — are competed and posted through the eMaryland Marketplace Advantage (eMMA) portal, the state's and USM's mandatory bidding platform. DoIT statewide IT contracts (separate from but complementary to eMMA) let agencies buy from pre-competed vendor agreements.
| Vehicle / gate | What it means for Dell |
|---|---|
| DoIT Statewide IT Master Contracts | Pre-competed IT vehicles (hardware, software, services) at doit.maryland.gov/contracts. Confirm Dell agreements and authorized resellers are current and correctly scoped. |
| eMaryland Marketplace Advantage (eMMA) | Mandatory state/USM bidding portal where agencies post solicitations and awards. Register and monitor for IT opportunities. |
| Cooperative & USM contracts | University System of Maryland and cooperative vehicles for higher-ed and research-computing buys. |
| Key buying entity | Role |
|---|---|
| Department of Information Technology (DoIT) | Central IT policy, security, statewide contracts, AI/digital service — leads the statewide technology motion. |
| Department of General Services (DGS) — Office of State Procurement | Owns eMMA and statewide procurement policy. |
| University System of Maryland (USM) / UMD | Large independent research-computing, quantum, and AI-infrastructure buyer; anchor of 'Capital of Quantum'. |
| Department of Human Services / Health | Among the largest agency IT spenders; benefits modernization and AI service-delivery pilots. |
Maryland is a competitive, contract-driven market with deep systems-integrator and federal-adjacent presence given the Fort Meade ecosystem. In a deficit climate, differentiation comes from modernization that lowers total cost (centralization, legacy retirement), demonstrable cyber/zero-trust credentials, and governed AI-infrastructure capability rather than price alone.
Power Structure
| Decision-maker | Why they matter |
|---|---|
| Wes Moore11 Governor · State of Maryland | Champions AI-forward government and the 'Capital of Quantum'; issued the 2024 AI executive order and the Anthropic/Percepta partnership. |
| Katie Savage2 Secretary of Information Technology (State CIO) · DoIT | Leads statewide IT since 2023; author of the 2025 IT Master Plan, Maryland Digital Service, and the AI Innovation Lab. |
| James Saunders14 Acting State CISO, Office of Security Management · DoIT | Acting State Chief Information Security Officer (pending Senate confirmation); former CISO at U.S. OPM and the Small Business Administration. Owns statewide security policy and the Cyber Coordinating Council. |
| Michael Boyce15 Senior Advisor for Responsible AI · Maryland AI Subcabinet | Appointed June 10, 2026, succeeding Nishant Shah; former Director of the AI Corps at DHS. Advises the Governor, Secretary Savage, and the AI Subcabinet on AI strategy across critical domains. |
| University System of Maryland / UMD leadership Research-computing & quantum buyers · USM | Drive 'Capital of Quantum' and large research-infrastructure procurement; 200+ quantum faculty at UMD. |
News & Signals
Sources
- Office of Governor Moore — FY2026 Budget Proposal
- Maryland State Archives — Katie Olson Savage, Secretary of Information Technology
- GovTech — Maryland's IT Master Plan Outlines Modernization Efforts
- Maryland DoIT — 2025 IT Master Plan (PDF)
- eMaryland Marketplace Advantage (eMMA)
- Maryland DLS — Major Information Technology Development Project Fund (JCR)
- Conduit Street — 2025 End of Session Wrap-Up: Information Technology
- Maryland DHCD — BEAD Program Notice of Funding Opportunity
- Office of Governor Moore — $1 Billion 'Capital of Quantum' Initiative
- Maryland DoIT — 2025 AI Enablement Strategy & AI Study Roadmap
- Office of Governor Moore — Landmark AI Partnership to Transform State Service Delivery
- StateScoop — Maryland's new AI Innovation Lab to help state agencies adopt, experiment with tech
- NASBO — Summaries of FY2027 Proposed Budgets (June 2026)
- Maryland DoIT — State Chief Information Security Officer (James Saunders, Acting)
- Office of Governor Moore — Announces Senior AI Advisor for the State of Maryland (Jun 10, 2026)
- Maryland DHCD — Network Infrastructure Grant Programs (May 15, 2026)
- The Quantum Insider — Maryland doubles down on quantum with IonQ HQ funding (Apr 29, 2026)
- Office of Governor Moore — Signs FY2027 Budget (Apr 8, 2026)
- Maryland Matters — Elrich unveils six-month moratorium on Montgomery County data center permits (Jun 15, 2026)
- Maryland AI — Consumer Protection Workgroup on AI Implementation (legislation; first report due Jul 1, 2026)