1. IT Consolidation Update
Office of State Budget And Management
Annual Conference
October 17, 2007
Jim Dolan Associate State Budget Officer – IT
Kathy Bromead Enterprise Program Manager – Information Technology Services

2. 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
4/9/2019

3. Consolidation Goal  Shared Services
Pooled Experience
Lean
Flat
Best Practice
Independent of Business
Unresponsive
No accountability
Inflexible to
Unique Requirements
Remote
From Users
Common Support
Economies of Scale
Critical Mass of Skills
Redundancy
Costly
Lack of Standardization
Business Focus
Responsive
Partners
Decentralized
Centralized
Shared Services
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4. 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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5. Five IT Infrastructure Assessments
Network – Connects everybody together
Data Center (Servers) – business applications
and common functions ( , Web)
Security – Protect technology and data
Service Desk – single point of contact for problems or requests
Desktops – helps customers with hardware
and software
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6. IT Consolidation Key Activities / Approach
Assessment
Analyze current state
Determined gaps between current and future state
Document 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 standards
Prepare organizational recommendations
Business Cases and Costs
Determine current IT costs
Determine future IT costs
Create business case
Developed Findings and Plan
Document assessment findings
Identify risks
Document the plan
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7. 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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8. IT Consolidation Phase II - Project Status
Key Activities
Assessment
Analyzed current state
Determined gaps between current and future state
Documented 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 standards
Prepared organizational recommendations
Business Cases and Costs
Determined current IT costs
Determined future IT costs
Created business case
Developed Findings and Plan
Documented assessment findings
Identified any risks
Documented the plan
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9. Phase II Implementation
2007
2008
4th quarter
October
1st quarter
January
2nd quarter
April
3rd quarter
July
4th quarter
October
Org
Service
Desk
Industrial Commission
October 1 – January 31
Org
Service
Desk
Juvenile Justice and Delinquency Prevention
November 1 – June 30
Org
Service
Desk
Cultural Resources
March 1 – December 31
Org
Service
Desk
Office of State Controller
June 1 – October 31
Service
Desk
Org
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Commerce
August 1 – December 31

10. Opportunities via Consolidation
Geographical Locations
Server Consolidation  Virtualization Technology
Enterprise services example  Managed Desktop Services
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11. IT Infrastructure Inventory Scope Phase I & II
Technology
Phase 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
3.8x
3.4x
9.3x
7.8x
4.0x
2.2x
Scope and Magnitude of Work
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12. Opportunities via Consolidation
Alexander
Alleghany
Anson
Ashe
Avery
Beaufort
Bertie
Bladen
Brunswick
Buncombe
Burke
Cabarrus
Caldwell
Camden
Carteret
Caswell
Catawba
Chatham
Cherokee
Chowan
Clay
Cleveland
Columbus
Craven
Cumberland
Currituck
Dare
Davidson
Davie
Duplin
Edgecombe
Forsyth
Franklin
Gaston
Gates
Graham
Greene
Halifax
Harnett
Haywood
Henderson
Hertford
Hoke
Hyde
Iredell
Jackson
Johnston
Jones
Lee
Lenoir
Lincoln
McDowell
Macon
Madison
Martin
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
Stokes
Surry
Swain
Transylvania
Tyrrell
Union
Vance
Wake
Warren
Washington
Watauga
Wayne
Wilkes
Wilson
Yadkin
Yancey
Phase II Geographical Locations
Granville
Durham
Alamance
Guilford
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
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13. IT Consolidation – Phase II Server Summary
Opportunities via Consolidation
IT Consolidation – Phase II Server Summary
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14. What is virtualization?
Opportunities via Consolidation
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
Virtualization is so over used these days… it seems to be used in every piece of literature today. It is used in most every area of IT today. From networks, to storage, to servers, across most platforms. Virtualization is certainly wide spread today.
The definition from Wikipedia is shown on the screen; however, much of my presentation today will relay our experience with server virtualization with more of a focus on the x86 space. There certainly is a “green” impact from virtualization as well as many other benefits that we have experienced.
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15. Opportunities via Consolidation
Benefits of Virtualization
Rapid hosting growth
Power demands
Cooling demands
Floor space
Disaster Recovery
Provisioning improvements
Consolidation plans
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16. Opportunities via Consolidation
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
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17. Managed Desktop Services Offering
Opportunities via Consolidation
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
, network connectivity, server/hosting, etc.
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18. Value Proposition to State
Opportunities via Consolidation
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
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19. Value by Managing Services @ Enterprise Level
Opportunities via Consolidation
Value by Managing Enterprise Level
Examples of other statewide shared services…
Beacon HR/Payroll
Statewide
Statewide Procurement
State Capital Police
State Property Management
Motor Fleet Management
Enterprise programs drive reduced risks, reduced costs and increased efficiencies.
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20. Spend Analysis Summary
Opportunities via Consolidation
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
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21. 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!
4/9/2019