1. Quarterly Customer Meeting Office 365 License Activation and Office 365 Cloud Services Assessment Status April 2014

2. Office 365 License Activation 2

3. Opportunity Microsoft is presenting an Office 365 licensing option that offers attractive pricing for subscription-based licensing Licenses can be used on-premises or in the Cloud Once deployed, these licenses must be activated in the Cloud and re-activated every 30 days Managing license activation can be labor intensive without the use of: – A sync engine (DirSync or Forefront Identity Manager) to automate creation and maintenance of tenant accounts – An authentication engine (ADFS) to eliminate need to re- enter credentials for license authentication 3

4. Current Customer Interest A number of agencies have an interest in synchronization between Enterprise Active Directory and an O365 tenant Several agencies have purchased O365 licenses Others are evaluating the O365 licensing option Some are testing Office 365 functionality in the cloud Interest is focused on Lync or SharePoint to meet immediate business needs Minimal interest in the cloud email service 4

5. Assumptions Customers want a similar experience using Cloud-based services as they currently have using on-premises services Automated synchronization is preferred Single sign on authentication is preferred Quality service Lowest reasonable price 5

6. CTS Response To meet customer needs for O365 license activation, CTS will provision: – A single shared tenant – A process for managing the shared pool of licenses – A single synchronization engine using Forefront Identity Manager (FIM) – A single authentication connection using Active Directory Federation Services (ADFS ) 6

7. Multiple vs. Shared Tenant Multiple tenants, one per agency – Higher operational maintenance cost Multiple DirSync/FIM and ADFS connections, one per tenant Must be undone if the state moves to O365 services – Agency manages their own licenses Shared tenant – Lower operational maintenance cost One DirSync/FIM and ADFS connection – CTS manages a shared license pool Creates the need to establish license management processes 7

8. DirSync vs. FIM Both products – Require enterprise administration rights to install and manage (and thus CTS involvement) – Require review and remediation of EAD attributes needed for synchronization DirSync – Is “free” and will require minimal infrastructure to implement – Does not filter content (syncs all 190 EAD attributes) FIM – Is a purchased product and will require slightly more infrastructure to implement – FIM filters content (the 5 EAD attributes required for synchronization) 8

9. Additional FIM Benefits CTS is already moving forward with an Identity Management (IdM) effort that includes implementing FIM FIM supports IdM improvements such as: – Better management of identities (adds, changes, deletes, attributes) – Increased security – Self-service password reset – Global Address List synchronization (GALSync) 9

10. Alternatives Considered 10 Multiple Cloud Tenants Distributed License Administration Shared Cloud Tenant Central License Administration Customers provision separate O365 tenants, manually import EAD data, manually administer licenses CTS provisions multiple ADFS connections, one for each tenant CTS provisions a shared Statewide tenant with one DirSync and one ADFS connector Customers provision separate O365 tenants CTS provisions multiple DirSync connections and multiple ADFS connections, one for each tenant CTS provisions a shared Statewide tenant with Forefront Identity Manager (FIM) and one ADFS connector 13 24

11. Project Overview Scope – FIM and an ADFS connector to support license activation – Establish a cloud tenant and tenant management processes Estimated Duration – 6-8 months, primarily for EAD preparation, working with customers, developing license management processes Current Status – Project planning complete – Hardware/software ordered 11

12. Office 365 Cloud Services Assessment Status 12

13. Background The OCIO, CTS and DNR led the effort to complete a business case analysis for O365 in October 2012 The analysis found a number of functional gaps related to records retention and determined there was no statewide financial benefit in moving to O365 The recommendation was to continue using the Shared Services Email (SSE) service and finish migrating remaining customers to Exchange 2010 and Symantec Vault Shortly following, the decision was made to proceed with on- premises implementation of Lync and SharePoint 2013 13

14. Background, cont. Since that time, 61 agencies have moved to SSE bringing the total mailbox count to over 63,000, 53 agencies and over 45,000 mailboxes are now using the Vault 8 agencies are either testing or in pilot CTS has implemented ADFS and has established a number of connections for agencies using cloud services CTS upgraded our SharePoint service to 2013 and will complete customer migrations by June 2014 CTS is in the process of sunsetting our Live Communication Service (LCS) and will complete Lync implementation in May 14

15. Decision Point CTS is looking ahead to Exchange 2013 and is faced with a choice – do we upgrade our on-premises service or do we again consider O365? 15

16. Findings – What is the same? Functional gaps related to records retention The conceptual technology architecture The need for Enterprise Active Directory (EAD) attribute remediation Potential network bandwidth increases needed to support migration and use of O365 Project and migration cost estimates 16

17. Findings – What has changed? The equipment investment in Exchange 2010 will have depreciated by the time we upgrade to Exchange 2013 Other public entities are reporting a less than quality experience with O365 No contractual language that guarantees level of service Gartner’s January 2014 assessment documents a number of concerns – dissatisfaction with support resolution, lack of SLAs, few management tools, handling of sensitive data, overall lack of maturity in service Gartner’s clear recommendation is to complete one more iteration of our on-premises service, then consider O365 17

18. Next Steps CTS will - Continue forward with our Lync and SharePoint service offerings Proceed with preparing for an upgrade to Exchange 2013 Monitor enhancements to the O365 service and re-evaluate when key trigger events occur: – Significant savings emerge from O365 – Online archive/search capabilities mature – Significant upgrades or investments are required for the on-premises service 18