I recently appeared on the “DS50” podcast of the Digital States Performance Institute (DSPI) to talk about short-term challenges and long-term opportunities in government IT. Click here to listen to the podcast.

Local and state government IT shops all around the nation—regardless of their size or sophistication—face an immediate challenge: They must meet an October 10 deadline to submit plans to the federal government about how they will meet tracking and reporting expectations for stimulus funds received under the American Recovery and Reinvestment Act (ARRA).

To help government agencies comply with federal requirements—and make the most of their current IT investments—Microsoft launched Stimulus360 earlier this year. Stimulus360 helps government agencies to apply for ARRA funds, monitor progress, automate workflow, and organize data to support federal performance metrics.

But I believe that the real takeaway from the podcast is that government agencies aren’t just responding to a short-term challenge. A new way for government to do business is emerging. Greater transparency and the better use of data are going to make government more efficient and effective—and this is where the IT industry, including VFI members, can help.

Speaking of engaging with government customers, next month VFI is going to launch a new feature called “Ask the NTO” that lets members ask questions to Microsoft National Technology Officers about public sector business and policy issues. (I am the U.S. NTO—and I’ll be talking more in the future about what I do.)