1. Buying vs. Leasing and Outsourcing Technology January 19, 2007 Downers Grove, IL

2. Outsourcing Technology January 19, 2007 Downers Grove, IL

3. 3 critical things to remember…

4. Let’s start with Questions Be VERY careful who you hire! #1

5. ALWAYS Remember to check references! #2

6. Did you think about it before you did it? #3

7. Let’s start with Questions

8. WHO-WHAT-WHERE-WHEN-WHY-HOW??? Who is making I.T decision? Are they Centralized or Decentralized decisions? Where is your district right now? Size? Current staffing? Challenges? What services will be outsourced, and what services will still be taken care of by district staff? When (if) you move forward with your decision, when will you reevaluate? Why consider Outsourcing anyway? How will it benefit you?

9. Outsourcing IT Support Questions Paradigm shift in Tech Director role? Cost efficiencies? Onsite vs. Remote Options? Company vs. person? Not always the same resource… why not?

10. Internal I.T. Staff Staffing to the task What is the skill-set needed? Shortages of internal resources Who is currently overloaded? What about Vacations, Sick Time, Availability? Technology Changes Where is your staff getting training? Personnel Changes Why continue to Hire, Train, Manage?

11. Do you want to know what I would do?

12. What are logical steps? 1.Choose someone you trust to develop a feasibility study with YOU. 2.Look at current costs 3.Look at costs over time 4.Build ROI & Cost/Benefit for your district 5.Start Small… I mean small. 6.Develop Criteria for success 7.Test theory along the way 8.Decide on solutions with consensus & logic

13. Why Should A District Outsource? Save Money Eliminates Administrative “Headaches” Are these enough reasons?

14. What could you outsource? Entire Technology (M.I.S.- I.T.) Department –Personnel –Space –Software –Hardware MIS Staff Only Managed Services The district is buying the expertise of the outsourcer!

15. Where does Asset Management fit into this conversation?

16. WHAT is most important to you? Network Reliability 100% Uptime Network Security -Asset Management, Disaster Planning, Backup Solutions Software Compatibility & Licensing Issues Interoperability & Data Integration Efficiency Converging Systems –Telephone, Video, Security, Clock/PA, HVAC/Lighting

17. Tasks or People? Network Consultation Design-Security-Disaster Recovery Software Selection and Procurement Remote Monitoring, Patching, Security Asset Management Remote Help Desk Offsite Backup Storage Projects On-site Technology Staffing

18. Outsourced I.T. Staffing Technology Staff –Network Design –Network Support –Hardware & Software Maintenance –Data Management & Reporting –Security (Patching, Monitoring, Layered Approach) –Instructional/Curriculum Support (helping teachers be more effective) –Staff Development –Help Desk –What else???

19. What are the Benefits? Eliminates administrative headaches Outsourcer is responsible for Hiring/Firing Salary – no union rules Continuous support – vacation/sick time Reduction in costs Predictable IT Expenditure Access to a diverse range of knowledge, resources and technology solutions Extend your in-house IT team

20. Choice A

21. Choice B

22. Case Study Outsourcing – Personnel Only Thornton HSD 205 3 High Schools 6,500 Students Hardware:iSeries 400, IBM Printers & PCs Software:CIMS Student & Financial Software (About 300 Users on the system)

23. Outsourcing – Benefits Cost Savings - $146,000 Higher Level of Service – Months to Hours –Automatic Monitoring with Alerts –Intrusion Detection and Prevention –Patching and Asset Tracking Spam Filtering –Managed Security Solution –Managed Firewall –Content Filtering –Gateway Anti-Spyware / Antivirus

24. Prevention – New Schools Tera Byte modified cabling standards for new schools, eliminating cabling issues. Cabling standards also saved money. Network hardware standards were adopted. Rewrote the specs for the IP telephone systems in new schools, resulting in $188,940.00 cost savings.

25. Cost Benefits Savings on IP tel. contract$188,940.00 Eliminate redundant tel. lines$ 30,000.00 Change To Watch Guard$ 13,000.00 Employee benefits$ 12,000.00 Training District Staff$ 10,000.00 Decreased Down Time $135,000.00 TOTAL$388,940.00

26. Net Savings Cost Savings$ 388,940.00 Management Fee$ 242,500.00 Net Savings$ 146,440.00

27. Guidelines for Outsourcing Define roles –Internal staff –Outsourced entity Establish clear goals (success measurements) –Financial –Non financial Define a reporting structure –Who does the outsourced firm take direction from? –How does the firm report back to the District?

28. When to Outsource Need to save money on technology Need to to increase the level of service District needs increased accountability Growth is outpacing internal staffing –Growth in numbers of computers –Growth in complexity of systems

29. After Building walk through –Cabling runs over distance limitations –Splices in Category 5 cabling –Poor workmanship Assisted the District with instructions to the contractor for corrective action

30. After - Work Orders Dramatically reduced down time: response time in hours/days, not months Work orders rarely in double digits Implemented work order tracking system Included tech and buildings & grounds

31. After Upgraded all servers and added new ones Upgraded network operating systems and directory services Standardized tape backups and got them working

32. Jason Marquardt American Capital 630 512-0066 630-512-0070 Fax jmarquardt@americancapital1.com www.americancapital1.com John Vonder MMF Leasing 630 389-9921 Toll Free Phone & Fax: 800.680.0560 jvonder@mmfleasing.com www.MMFLeasing.com Terry Tamblyn, Ed.D. Naperville School District 203 630 969-7120 ttamblyn@naperville203.edu Dave Moravec Integrity Technology Solutions 309 664-8115 309 662-6421 Fax dmoravec@integrityts.com www.integrityts.com