it consolidation update
TRANSCRIPT
IT Consolidation Update
Office of State Budget And ManagementAnnual Conference
October 17, 2007
Jim Dolan Associate State Budget Officer – ITKathy Bromead Enterprise Program Manager – Information
Technology Services
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Agenda
Consolidation Goals Other States’ Interpretation of Consolidation Focus Areas for NC IT Consolidation Activities / Approach Phase I (Pilot) Summary Phase II Status Opportunities via IT Consolidation
- Geographic locations- Server consolidation Virtualization Technology- Enterprise services offering example
Summary
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Consolidation Goal Shared Services
Redundancy
Costly
Lack of Standardization
Business Focus
Responsive
Partners
Pooled Experience
Lean
Flat
Best Practice
Independent of Business
Common Support
Economies of Scale
Critical Mass of Skills
Unresponsive
No accountability
Inflexible toUnique
Requirements
RemoteFrom Users
Decentralized CentralizedShared Services
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Other States - Consolidation
Virginia– 10 year, $2 Billion, partnership, Northrup-Grumman– Year 1, New Data Center, 90 Servers consolidated to 16,
6000 Desktops replaced Texas
– Consolidate 31 Data Centers into 2 Missouri
– Combine 14 executive branch departments IT divisions Colorado
– September 2007, Consolidation all IT into central organization
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Five IT Infrastructure Assessments
Network – Connects everybody together
Data Center (Servers) – business applications and common functions (E-Mail, Web)
Security – Protect technology and data
Service Desk – single point of contact for problems or requests
Desktops – helps customers with hardwareand software
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IT Consolidation Key Activities / Approach
Key Activities Approach
Assessment Analyze current stateDetermined gaps between current and future stateDocument consolidation findings
Future State Design Determine Future State for the Service Desk and four infrastructure areas - Data Center (servers), Network, Security, and Desktop. Determine the effort and cost involved to get agencies to minimum technology standardsPrepare organizational recommendations
Business Cases and Costs Determine current IT costsDetermine future IT costsCreate business case
Developed Findings and Plan Document assessment findingsIdentify risksDocument the plan
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Phase I (Pilot) Summary
• DOA, OSP, OSBM, Governor’s Office & Lt. Governor’s Office– Project kick off January 2006; 90% completed December 2006– 5 remaining server migrations complete October 2007
• Scope– 54 IT FTEs including 10 enterprise IT ‘infrastructure’ FTEs– 80 Servers; ~1100 PC’s; ~1200 switch ports; 31+ locations
• Findings– Equipment out of date, with no warranty– Lack of standardization of technology and processes
• Actions Implemented– Moved 10 IT infrastructure personnel to ITS– Consolidated/migrated 17 servers– On boarded agencies to managed desktop, LAN and Server Services
• Lessons Learned– Consistent, recurring spending is required to keep IT equipment up to date.– More focus is needed on IT banding– Splintered IT organization structures sub optimize IT strategy rollouts, skill transfer and
IT training and employee development.
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IT Consolidation Phase II - Project Status
Key Activities
Assessment Analyzed current stateDetermined gaps between current and future stateDocumented consolidation findings
Future State Design Determined Future State for the Service Desk and four infrastructure areas - Data Center (servers), Network, Security, and Desktop. Determined the effort and cost involved to get agencies to minimum technology standardsPrepared organizational recommendations
Business Cases and Costs Determined current IT costsDetermined future IT costsCreated business case
Developed Findings and Plan Documented assessment findingsIdentified any risksDocumented the plan
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Cultural Resources
Office of State Controller
Phase II Implementation
Juvenile Justice and Delinquency Prevention
Commerce
4th quarterOctober
1st quarterJanuary
2nd quarterApril
3rd quarterJuly
4th quarterOctober
2007 2008
Industrial Commission
October 1 – January 31
November 1 – June 30
March 1 – December 31
June 1 – October 31
August 1 – December 31
Org
Org
Org
Org
Org
Service Desk
Service Desk
Service Desk
Service Desk
Service Desk
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Opportunities via Consolidation
Geographical Locations
Server Consolidation Virtualization Technology
Enterprise services example Managed Desktop Services
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IT Infrastructure Inventory Scope Phase I & II
TechnologyPhase I Totals
Phase II Totals
PC’s 1100 4182
Servers 80 271
Switches 55 509
Locations 31 241
IT Infrastructure Employees
10 40
IT Application Employees
44 96
Scope and Magnitude of Work
3.8x
3.4x
9.3x
7.8x
4.0x
2.2x
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Alexander
Alleghany
Anson
Ashe
Avery
Beaufort
Bertie
Bladen
Brunswick
Buncombe
Burke
Cabarrus
Caldwell
Camden
Carteret
Caswell
CatawbaChatham
Cherokee
Chowan
Clay
Cleveland
Columbus
Craven
Cumberland
Currituck
Dare
Davidson
Davie
Duplin
Edgecombe
ForsythFranklin
Gaston
Gates
Graham
Greene
Halifax
Harnett
Haywood
Henderson
Hertford
Hoke
Hyde
Iredell
Jackson
Johnston
Jones
Lee
Lenoir
Lincoln
McDowell
Macon
MadisonMartin
Mecklenburg
Mitchell
Mont-gomery Moore
Nash
New Hanover
Northampton
Onslow
Orange
Pamlico
Pasquotank
Pender
Perquimans
Person
Pitt
Polk
Randolph
Richmond
Robeson
Rockingham
Rowan
Rutherford
Sampson
Scotland
Stanly
StokesSurry
Swain
Transylvania
Tyrrell
Union
Vance
Wake
Warren
Washington
Watauga
Wayne
Wilkes
Wilson
Yadkin
Yancey
Phase II Geographical Locations
Granville
DurhamAlamanceGuilford
Locations
OSC = 4
Commerce = 46
DCR = 63
DJJDP = 126
Ind. Comm. = 2
Total = 241
Dept. of Commerce
Office of State Controller
Dept. of Cultural Resources
Dept. of Juvenile Justice and Delinquency Prevention
Overlapping areas could be candidates for workload synergy.
Industrial Commission
Opportunities via Consolidation
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IT Consolidation – Phase II Server Summary
# Servers # Servers # Servers # Servers # New - # New ITS # Servers # Servers % Server > 3 yrsBefore > 3 yrs old < 3 yrs old Reused Refresh (Virtual) After Change Change Reused
DCR 85 52 33 30 11 11 52 -33 -38.8% 4
IC 12 7 5 5 0 3 8 -4 -33.3% 0
DJJDP 66 45 21 29 18 5 52 -14 -21.2% 8
OSC 29 19 10 21 3 2 26 -3 -10.3% 11
Comm Core 28 13 15 10 5 7 22 -6 -21.4% 0
ABC 7 3 4 4 1 2 7 0 0.0% 0
COB 6 3 3 4 2 0 6 0 0.0% 0
Total 233 142 91 103 40 30 173 -60 -25.8% 23
Percent of Servers 3 years old or older 60.9%Percent of Servers less than 3 years old 39.1%
Agency
Opportunities via Consolidation
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What is virtualization?
In computing, virtualization is a broad term that refers to the abstraction of computer resources. One useful definition is "a technique for hiding the physical characteristics of computing resources from the way in which other systems, applications, or end users interact with those resources. This includes making a single physical resource (such as a server, an operating system, an application, or storage device) appear to function as multiple logical resources; or it can include making multiple physical resources (such as storage devices or servers) appear as a single logical resource."
source Wikipedia
Opportunities via Consolidation
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Opportunities via Consolidation
Rapid hosting growth Power demands Cooling demands Floor space Disaster Recovery Provisioning
improvements Consolidation plans
Benefits of Virtualization
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ITS Results to Date on Virtualization
Reduction in hardware cost Smaller power and cooling requirements Enhanced availability New possibilities around capacity planning Greatly enhanced flexibility around provisioning of
new servers Fewer network ports required Fewer SAN connections required
Opportunities via Consolidation
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Managed Desktop Services Offering
What is it?
Highly scalable “end to end” IT infrastructure shared service that ensures a reliable, predictable, and secure client computing environment.
What is included?– Standard PC hardware, network-attached printers, and a suite of commonly used software
Full life cycle support – cradle to grave Scheduled refreshes & upgrades, and emergency patches License compliance
– Technical support, break/fix, and maintenance– Security protections
Anti-virus, personal firewall, spyware protection, etc.– User ID administration– Service Desk – problem reporting and dispatching service
What is not included?– Other ITS managed services are offered separately
E-Mail, network connectivity, server/hosting, etc.
Opportunities via Consolidation
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Value Proposition to State
A formal desktop management program will significantly reduce security and financial risks, increase reliability, reduce downtime, and provide a predictable application delivery mechanism by:
– Standardizing hardware and software components– Ensuring legal software license compliance– Keeping hardware and software refreshed, updated, and well maintained– Providing a timely and effective response to incidents and outages– Protecting users from computer viruses, malicious software, and network
attacks– Maintaining an accurate physical inventory of IT assets assigned to end
users
Opportunities via Consolidation
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Value by Managing Services @ Enterprise Level
Examples of other statewide shared services…
Beacon HR/Payroll Statewide eMail Statewide Procurement State Capital Police State Property Management Motor Fleet Management
Enterprise programs drive reduced risks, reduced costs and increased efficiencies.
Opportunities via Consolidation
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Spend Analysis Summary
Model optimized at State level
Agency compares must include all indirect and hidden cost
Smaller agencies or under funded agencies may require increased funding
Recurring funding streams required versus one time funding
$M3 yr. Average Agency PC Spending $53
Managed Desk Top Service - Annual Spend $50
Quantitative Average Annual Savings to the State $3
Opportunities via Consolidation
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IT Consolidation Summary
Phase II is moving into execution mode.
Many opportunities exist to optimize IT investments via consolidation.
Focus on consolidating your areas to get the biggest bang for the buck!