Transition to Managed Services IT Infrastructure Partnership Team August 26, 2008

This document explains the relationship between Transformation deployments, Managed Services and the staffing model After reading this document, you will understand: The importance of Transformation deployments as a way to get to Managed Services What Managed Services is and the benefits it delivers Next steps in the transition to managed services

The IT Partnership is asking for your help to make Transformation deployments successful We want and need to work together with you on Transformation There will be challenges, but we are committed to finding solutions to overcome barriers that delay completion Scheduling Transformation deployments is one of our biggest focus areas Shortened timeframes are putting pressure on the IT Partnership’s ability to adjust deployment dates outward In particular, we are asking for your help in scheduling Network, Desktop and Altiris deployments These deployments are prerequisites to other Transformation deployments Transformation deployment dependencies are extensive, and scheduling delays have far-reaching effects

Transformation deployments provide a number of benefits Enhanced Standards, Processes and Measures: SLAs will measure performance and ITIL-compliant processes will provide standard for service Centralized Network/Server Monitoring: Reduces the complexity to maintain and operate the Commonwealth’s IT infrastructure Centralized Help Desk: 24x7 support with consolidated repository of issue resolutions to benefit employees across the Commonwealth Improved E-mail Functionality: Secured access via 24x7 Enterprise class MS Exchange environment Improved Security: Consolidated Internet connections and automatic anti- virus updates and security patches New, Reliable Hardware: Standard PC/hardware specifications reduces support calls required for older equipment These benefits are just a few examples of the many benefits of a transformed environment.

Transformation deployment dependencies

Transformation schedules will be monitored, so progress can be reported and managed

Technology Transformation is one of five paths agencies will follow in the transition to Managed Services Purpose of Implementing Managed Services Adopt a more business-like approach to managing the state’s information technology resources and to operating associated systems Modernize IT service delivery with measurable results at predictable costs Ensure customers receive predictable, reliable IT services needed to carry out the mission of their agency Managed Services results from 5 transformations Asset Management Managing asset changes appropriately in order to present accurate bills Ensures the technology and tools are in place to monitor/manage services from an enterprise perspective Technology transformation Standardizing and optimizing processes and procedures ensures service quality and integration of operations; less “fire fighting” and more process rigor Mature processes Defined services & measures Well defined and understood services and performance targets, with continuous improvement initiatives triggered by root cause analysis Preparing the workforce with the skills to efficiently deliver managed services Workforce transformation

Managed Services Definition Characteristics of Managed Services IT service delivery for the Commonwealth has shifted to Managed Services Managed Services Definition "Managed Services" is the delivery and support of IT service by an external service provider to improve functionality and reduce costs Cable Provider Power Company A managed services environment Adopts a more business-like approach to managing and delivering the Commonwealth’s IT infrastructure “services” Delivers outcome-based services, rather than pieces of equipment and staff hours, to meet customer needs Allows the Commonwealth as a whole to gain efficiencies through shared resources and centralized operations Standardizes processes using industry best- practices to improve the quality and consistency of IT service delivery across the Commonwealth Healthcare Characteristics of Managed Services Service is available when I want to use it It doesn’t matter where equipment is located or how many people support it I don’t need to understand the technology used to deliver the service In the past, agencies purchased stand-alone IT products for a cost, and then, for an additional cost, bought support, such as maintenance or an upgrade. Under managed services, agencies will receive IT services as a bundle, in a way that is similar to a utility. Just as the power company provides power to light a lamp, a managed IT service is outcome-based. The consumer, or user of the service, doesn’t worry about where the power grid is located, or whether the power is generate by coal or wind, as long as the light turns on. Likewise, users of IT services want consistent and quality service, without the worry of maintaining equipment to keep things running smoothly. The service provider manages the components – people, hardware, software and processes – to deliver consistent service with a high level of quality. The goal is to provide customers with excellent service so that they can focus on their business operations without giving a second thought to the technology that supports it. Pricing for services will shift from a cost-plus model, to a fixed rate per defined unit of service, helping you budget more effectively for IT costs. The ITP managed service environment leverages standard processes and industry best-practices to ensure that all agencies in the Commonwealth get the same level of service, regardless of agency size or location.

Agencies will no longer... Under Managed Services, agencies will... In the Managed Services environment, the ITP provides IT services through Transformation rather than stand-alone IT products… Definition of Service IT service is a logical package of services that an IT organization offers, supplies and supports in order to satisfy the client’s needs Source: Delivering IT Services, Dennis Bladergroen / Bob Maas et. al. EXAMPLES Agencies will no longer... Under Managed Services, agencies will... Buy a stand-alone PC... Buy a desktop computing service that includes: HW and system SW Maintenance and a new PC every 4-5 years Asset Inventory Control Virus protection LAN connectivity, print service, and more Buy a piece of computer equipment... Buy a data center service that includes: Server space (only what is used) Remote server management with 24x7 monitoring Virus protection, patch management, backup services, disaster recovery and more Maintain e-mail and directory software... Buy a messaging service that includes: A central e-mail system with statewide address directory Spam filters and virus protection Inter-agency file sharing and more An IT service includes all the resources and support needed to make it function properly and add value to their business. In the past, when an agency bought a PC, the agency was also responsible for installing the PC, loading the system software, maintaining the equipment, and eventually replacing older PCs. Today, an agency buys Desktop Services, which includes the hardware, system software, LAN connectivity, virus protection, and more, plus a new PC refresh every 4-5 years. Other examples of IT services provided by the partnership are described here.

…and proactively monitors and measures – manages – the delivery of services against a set of performance metrics Definition of Manage Management involves all the activities required to operate, monitor and maintain the infrastructure, as well as modifying the infrastructure to solve or prevent failures Source: Delivering IT Services, Dennis Bladergroen / Bob Maas et. al. We track performance measures, including time to respond to service calls, time to resolve incidents, network bandwidth, and availability of a device or application to ensure high quality service Skilled technicians centrally monitor operations and identify potential weaknesses so that they can take corrective action before a problem occurs, reducing downtime and outages All services are delivered using a set of consistent processes based on Information Technology Infrastructure Library (ITIL) standards to provide more reliable IT service and ensure alignment with customer and operational priorities Customers surveys are used to gather agency feedback to continually improve service To make sure that your IT services work properly and are available when you need them, the IT partnership will proactively monitor IT services around the clock. One key component of a managed services environment is well-defined and understood performance targets. Performance measures allow the partnership to track how we’re doing in meeting customer needs for quality IT delivery. Equipment and staff are centrally located to monitor operations 24/7 for all Commonwealth agencies. Skilled technicians use tools such as Peregrine, Altiris and HP Open View to keep track of status and proactively fix problems. Northrop Grumman will manage the IT services using a consistent set of processes build on Information Technology Infrastructure Library, or ITIL, standards. ITIL provides a consistent set of processes that will reduce the need for fire-fighting, and introduce more predictability for service delivery. Tools and procedures are used to continually monitor the infrastructure, so that technical staff can be alerted of potential weaknesses. Early warning systems allow staff to avoid problems, reducing unplanned outages.

As technology transforms, the Partnership organization is restructuring to align to the Managed Services environment Purpose of Implementing Managed Services Adopt a more business-like approach to managing the state’s information technology resources and to operating associated systems Modernize IT service delivery with measurable results at predictable costs Ensure customers receive predictable, reliable IT services needed to carry out the mission of their agency Managed Services results from 5 transformations Asset Management Managing asset changes appropriately in order to present accurate bills Ensures the technology and tools are in place to monitor/manage services from an enterprise perspective Technology transformation Standardizing and optimizing processes and procedures ensures service quality and integration of operations; less “fire fighting” and more process rigor Mature processes Defined services & measures Well defined and understood services and performance targets, with continuous improvement initiatives triggered by root cause analysis Preparing the workforce with the skills to efficiently deliver managed services Workforce transformation

Next steps Technology Transformation Meet with agencies to determine current priorities and scheduling constraints Jointly establish transformation expectations and schedules Assign required transformation resources to your agency Provide regular feedback on status and issues Agency Support for Managed Services New agency facing roles will be introduced to support agency transition to managed services Additional information will be available next month

Back-up Slides

Delivery of Managed Services started in July 2008 and will reach steady state in Summer 2009 Pre-Award Phase Interim Agreement May 1, 2006 Notice of Contract Approval from CIO Start-Up Planning Transformation Phase Task Force Teams Current Operations Managed Services Nov 14, 2005 Dec 14, 2005 May 1, 2006 Jul 1, 2006 SCD +25 months SCD +36 months Effective Date Interim Agreement Work Plan Offer Letters to VITA Employees Service Commencement Date (SCD) 7/1/2008 7/1/2009

Data Center (Mainframe/ Server) Agencies get seven service offerings that include full maintenance and technical support Service Before After 1 Messaging (e-mail Systems) Over 40 e-mail systems and address lists across the state Enterprise-wide standard messaging services include: Microsoft Office 2003 e-mail Access to statewide address list and interagency file sharing Automatic anti-virus, spam blocking and enhanced security 2 Data Network Fragmented and slow networks, with over 85 connections to the internet State-wide high speed Internet data network offers: 24X7 central monitoring and improved security Back-up data network for reduced downtime 3 Desktop A hodge-podge of outdated desktops, many requiring on-site attention and maintenance Desktops and laptops are standard across agencies with: Refresh service every 4-5 years Built-in wireless technology (laptops) Asset management system built in 4 Help Desk Multiple agency-provided Help Desks, many lacking problem diagnosis and response tools 24/7 Help Desk offers access to IT support with: Centralized problem tracking and resolution Web enabled self-help support & end user account administration Desktop remote control capability 5 Data Center (Mainframe/ Server) Three mainframes across the state, and over 3,000 servers with significant unused capacity Support for new mainframes and servers located in Chester, VA includes: Remote server administration tools Centralized administration and monitoring Capacity and storage management, enhanced security and disaster recovery 6 Voice and Video Different high cost and inconsistent telephone systems across the state A variety of voice and video services include: VoIP (Voice over Internet Phones) VITA Audio and Data Conferencing 7 Security A mixed bag of security systems with varying levels of protection against cyber threats Consistent and standard security services provide: Enterprise Security Operations Center Computer Security Incident Response Center Secure Internet Gateway The partnership provides seven service offerings for agencies. These seven service offerings mirror the towers you know from Transformation. All the services improve the reliability and security of IT operations across state agencies. Source: Addendum 1 to Schedule 3.12 to the CIA: SLA Reporting Table