1. April 6-9, 2009 | Rosen Shingle Creek Resort | Orlando, Florida

2. IT Infrastructure Transformation in the Commonwealth of Virginia
Dave Burhop, Virginia Department
of Motor Vehicles
April 8, 2009

3. Presentation Topics Virginia’s information technology (IT) model
The need
Structure and governance
Responsibilities
IT Infrastructure Partnership
Progress in core services
Governance
IT procurement
IT infrastructure operations
Lessons learned

4. Call to Action: State of Technology in 2002
90+ independent, autonomous
IT shops
Independent, duplicative systems
$75M in failed IT projects in 5 years
Inadequate protection of sensitive
information and equipment
Inability to leverage buying power or
manage investments
Obstacles to sharing information
across agencies
Few metrics on performance and
service delivery

5. The Numbers Revealed The Need
90+ Independent, Autonomous IT Shops Responsible for:
67,000 PCs
3,000 servers
100 primarily independent data centers
85 Internet connections
61 helpdesks
45 individual Wide Area Networks
40 different /messaging systems
18 different telephony systems

6. Governor and General Assembly Took Action in 2003
Created VITA, Virginia’s centralized IT “utility”
Abolished three IT agencies
Transferred IT assets and staff from 90+
agencies to VITA over 18 months
Defined VITA’s primary responsibilities
IT governance
IT procurement
IT infrastructure operations
Established funding mechanism
Internal Service Fund - budget is largely
fees collected
Rates approved by Joint Legislative Audit &
Review Commission (JLARC)

7. Governor and General Assembly Took Action in 2003
Created Information Technology Investment
Board (ITIB)
10-member supervisory board
3 government members
7 citizen members: 4 appointed by
legislature, 3 by Governor
Responsible for VITA and all IT oversight
and investments
Chief Information Officer (CIO)
Hired by ITIB to a 5-year contract
ITIB’s agent as VITA Agency Head
Advise Governor and legislature of investment opportunities

8. Technology Management Governance Structure
IT Investment Board (ITIB)
Approve funding priorities
Approve project development
Approve policies, standards, guidelines
Approve Virginia’s IT Strategic Plan
Governor
Set Executive branch priorities
Appoint Board members
Develop budget
General Assembly
Appoint Board members
Pass legislation including budget
Appointed JLARC oversight of VITA
For more details see
the Code of Virginia
– 2032
and
Chief Information Officer
Develop VA IT Strategic Plan
Approve Agency IT strategic
plans
Approve project planning
Develop policies, standards, &
guidelines (for ITIB)
Executive Branch Agencies
Develop Agency IT Strategic Plan
Adhere to Policies, Standards &
Guidelines
Manage Agency Applications and
Staff
Manage & support infrastructure
Procure IT goods & services
Support CIO and ITIB
Chief Security Officer
Chief Applications Officer

9. IT Infrastructure Partnership

10. State of the IT Infrastructure (Pre-VITA)
Aging, inefficient infrastructure
1980s technology environment
50% of equipment 8 to 10 years old
The Commonwealth at risk
No maintenance on thousands of devices
80% of agencies vulnerable to data
breaches, hacking
Virginia’s data center building rated a high
security risk
Inadequate ability to resume operations
after a disaster
Copyright software license violations (legal
liability)

11. Solution: Build a 21st Century Infrastructure
Nation’s largest public-private partnership
Commonwealth of Virginia and Northrop Grumman
Corporation formed partnership in November 2005
Contract valued at $1.9 billion over 10 years
Northrop Grumman invests $270 million in
up-front capital
Replace aging, inefficient infrastructure in
agencies
Modernize and standardize IT services and support
Consolidate and centralize infrastructure
equipment and monitoring
Investment in people and communities
Creates more than 400 jobs in rural southwest
Virginia
No layoffs of state IT employees
Northrop Grumman is positioned to grow in Virginia

12. Infrastructure Investments Through Private Partners
Messaging Services
Help Desk
Desktop
Enterprise Exchange/Outlook
Enterprise Collaboration Tools
Active Directory, DNS
$25M Investment
Mass Desktop Refresh
Network Printer Consolidation and Refresh
Enterprise Desktop Management Systems
$35M Investment
Enterprise Help Desk in Russell and Chesterfield
Field Based Agents and Technicians for Level 3
Enterprise Help Desk System (Peregrine)
$10M Investment
Mainframe
and Servers
Security
Transformation
People – Process – Tools
Reliable, High-Performance,
Enterprise-Wide IT Infrastructure
New IBM and Unisys Mainframes
Consolidation and Refresh of Servers
Migration of servers to the Data Center
$50M Investment
Enterprise Security Operations Center
Computer Security Incident Response Center
Secure Internet Gateway
$10M Investment
$270 Million Investment
Tier 3 and Tier 2 Facilities
Network
Voice / Video
New Data Center/Office Building in Chesterfield
New Disaster Recovery Center and Help Desk
in Lebanon, Russell County
$60M Investment
New Commonwealth-Wide MPLS Core WAN
LAN upgrades to Local Switches/Routers as Needed
Network Re-addressing of IP, DHCP
$60M Investment
Voice-Over IP Network Optimized for Voice and Video Traffic
$20M Investment

13. Progress in Core Services

14. IT Infrastructure Accomplishments
Significantly improved information security
Corrected software copyright licensing violations
Constructed two data center facilities (Chesterfield &
Russell)
Began creating over 400 high-tech jobs in southwest
Virginia
Replaced much of the infrastructure with new, standard
equipment
Implementing standard, consistent processes and
metrics statewide
Establishing predictable, consistent prices that are
planned for and budgeted

15. Commonwealth Enterprise Solutions Center
Chesterfield County

16. Southwest Enterprise Solutions Center
Town of Lebanon,
Russell County

17. Enterprise IT Governance Accomplishments
To 2009:
Strong investment
management program for
new IT projects
Strategic IT investment
decisions promoting
enterprise solutions
No major IT project failures
since 2003
From 2002:
Lack of oversight
Independent, autonomous
decision-making
$565 million spent on
duplicative, stand-alone
systems
$75 million in failed
major IT projects from

18. Centralized IT Procurement Accomplishments
To 2009:
Leveraged buying power
Decreased costs
Increased annual SWaM spend from $4M to $80M
From 2002:
Buying power not
leveraged
Lack of standards
Multiple, inconsistent
procurement processes
Low spend with small,
women- and minority-
owned (SWaM)
companies

19. IT Reform in Virginia Results in Efficiencies
Had we done nothing, Virginia would have…
Experienced additional failures of major IT
projects
Spent $200 million more over the next decade
supporting an aging IT infrastructure
Spent an additional $120 million on energy
consumption over the next decade
Paid $45 million more for IT products and services
without central IT procurement management

20. Lessons Learned

21. Hard Lessons We Learned the Easier Way
Executive sponsorship is essential
Talk to others about what worked, what didn’t and why
IT reform is about culture change
Build and maintain momentum, confidence
Manage stakeholder expectations
Technology
People & Process

22. Hard Lessons We Learned the Hard Way
Get your arms around what you’ve REALLY got in your
IT environment
Be data-driven
Conducted five “due diligence” exercises
“Legasaurs” – ancient equipment
Years of underfunded IT programs
Poor inventory records and processes
Lack of basic security protection
1,200+ employees organized by agency,
supporting more than 2,000 sites
Sorely under-utilized capacity for servers,
printers
Transformation takes longer than you think
Virginia’s schedule is aggressive (36 months)
Must accommodate agency business cycles (don’t
transform Tax in April)

23. Hard Lessons We Learned the Hard Way
Look behind the curtain
Back-end processes and procedures (the “how”) must transform with technology services (the “what”)
Asset inventory
Service requests
Pricing & billing
Customer relationship management
Communications
IT support
Documentation
Purchasing
New service offerings
Change management
Personnel management

24. Hard Lessons We Learned the Hard Way
All stakeholders – especially employees – need to feel
they are being treated equally and kept informed
Focus on the 90 – 95 percent who are “with” the
program or can be swayed either way
Do not cater to the 5 – 10 percent you can never
win over
If outsourcing, understand the governance model and
the relationship with your partner
Traditional client-vendor relationship? A
risk/reward-sharing partnership? Something in
between?
State policies do not contemplate an outsourcing
arrangement

25. Hard Lessons We Learned the Hard Way
Ensure agencies coordinate with state budget department on
rates (cost impact, timing, etc.) BEFORE they are
implemented
Ensure agencies understand “what’s in the rates”
Implement all aspects of disaster recovery as part of the base
modernization rate package – don’t make DR optional
Agency level SLAs should be identified early on so the “to-be”
model can be designed to support them
Streamline early on the process that supports agency service
requests
Centralized print close to the customer agencies is a
necessity
Delegated Procurement Authority to agencies should be
considered on a case-by-case basis
Delegated Project Authority to agencies should be considered
on a case-by-case basis

26. Hard lessons we learned the hard way
Embrace the media
Informed reporting vs. investigative reporting
Start with the big agencies
The largest 15 agencies in Virginia represent ~80%
of the spend
What’s that noise?
It is not a celebration….(yet)
“There” is good; getting “There” is painful
The noise level overall has not decreased, but
We will eventually get There!

27. Recent recognition Virginia’s security program rated #1
in the nation in 2008 by National
Association of State CIOs (NASCIO)
Virginia’s infrastructure partnership
rated #1 in the nation by NASCIO
Virginia’s Web site ranked #1 in the
nation by the Center for Digital
Government
Virginia received a 2008 Telly
Award for its security awareness
video “The Duhs of Security”
Virginia ranked #3 in the nation for
all aspects of technology by the
Center for Digital Government

28. References/Resources

29. Virginia Information Technology Investment Board
Links/References
VITA (Many thanks to VITA for providing much of the information used in this presentation!)
Virginia Information Technology Investment Board
Virginia’s official portal
The Code of Virginia – IT governance
The Code of Virginia – PPEA (partnership vehicle)
Technology oversight

30. Links/References IT Infrastructure Partnership homepage
How we got here – proposals, history
Comprehensive infrastructure agreement – the contract
Frequently asked questions
Media kit and fact sheets
IT infrastructure transformation, schedule