1. The Cost of IT at the University of Alberta 2008-2014 Rob Lake Information Technology Planning and Forecasting Officer Office of the Vice-Provost (Information Technology) University of Alberta rob.lake@ualberta.ca

2. The Question : What percentage of the University’s operating budget is annually spent on IT?

3. The Answer : ?

4. Basic Principles: Obtain data from authoritative sources (must be defendable) Apply a consistent methodology for each year When in doubt, make your best educated guess

5. Start with the University’s Operating Budget: 2008-2009 Budget Submission 2009-2010 Budget Submission 2010-2011 Budget Submission 2011-2012 Comprehensive Institutional Plan 2012-2013 Comprehensive Institutional Plan 2013-2014 Comprehensive Institutional Plan

6. The Operating Budget: Funding sources are primarily student and taxpayer dollars The budget that is most accountable to the public

8. University of Alberta Approved Operating Budget

9. Year2008-20092009-20102010-20112011-20122012-20132013-2014 Amount$764,462,000$824,175,000$898,867,039$935,031,297$987,277,000$1,006,351,000 %Increase-7.8%9.1%4.0%5.6%1.9%

10. Several units have mandates that are 100% Information or Digital Technology-related: Office of the Vice-Provost (Information Technology) – office of our Chief Information Officer Information Services and Technologies (IST) – provides IT services to the entire campus Information Services and Technologies – Enterprise Applications (IST-EA) – manages the contracts for our outsourced PeopleSoft ERP systems Centre for Teaching and Learning (E-Learning Component) – manages the content and appearance of the University’s Learning Management System Technology Training Centre (TTC) – provides IT training to all faculty and staff University Digital Strategies (UDS) – responsible for the web and mobile presence All budgets from these units are automatically included in the cost of IT calculation What are the equivalent units within your institution?

11. The Three “P”ressure Points: People Purchases Power

12. People: National Occupation Codes (NOC) from the Government of Canada http://www5.hrsdc.gc.ca/noc/english/noc/2011/OccupationIndex.aspx These codes have been adopted at our institution Select only those that are IT-related

13. 0 – Management Occupations 0213 – Computer and Information Systems Managers

14. 217 – Computer and Information Systems Professionals 2171 – Information Systems Analysts and Consultants 2172 – Database Analysts and Data Administrators 2173 – Software Engineers and Designers 2174 – Computer Programmers and Interactive Media Developers 2175 – Web Designers and Developers

15. 228 – Technical Occupations in Computer and Information Systems 2281 – Computer Network Technicians 2282 – User Support Technicians 2283 – Information Systems Testing Technicians

16. The following NOC code was used for e-learning personnel: 4131 – College and Other Vocational Instructors

17. The following obsolete NOC codes were used (if present): 1421 – Computer Operators (now in 2281) 2162 – Computer Systems Analysts (now in 2171) 2163 – Computer Programmers (now in 2174)

18. The following NOC code was not used: 5225 – Audio and Video Recording Technicians (The above NOC code is currently used for all electronic technicians)

19. Human Resources helped generate staff lists Used PeopleSoft Financials 9.1 nVision reports Benefits: 20% (Academic Staff), 23% (Support Staff) Took a snapshot for each fiscal year end Does not include teaching faculty from units such as Computer Science Don’t double count staff from the IT-inclusive units Need to be careful how this data is presented!

20. Academic and Support Staff Salaries and Benefits (Faculties and Departments)

21. Academic and Support Staff Salaries and Benefits (Administrative Units)

22. Academic and Support Staff Salaries and Benefits (Across All Units)

23. Academic Units versus Administrative Units Staff Salaries and Benefits

24. Academic Units versus Administrative Units Staff Salaries and Benefits Total: $42,747,301.05 Total: $49,283,527.99 Total: $46,596,279.45 Total: $53,725,842.63 Total: $50,149,348.64 Total: $48,350,677.05

25. Academic and Support Staff Salaries and Benefits as a Percentage of the Operating Budget (Across All Units)

26. Purchases: PeopleSoft Financials Version 9.1 Use only these Fund codes based on the Operating Grant: 100Central Institutional 210General Operating 350Special Purpose Operating 510Enrolment Planning Envelope

27. Within each Fund code, examine only the following account codes from Accounts Payable: 502155 Electronic Supplies & Services 502197 Computing Site Licenses 502301 Computing Supplies 502306 Computing Support & Services 502311 Computing Mtce Agreements 502317 PDA Reimbursement

28. 502321 Printing Supplies 502324 Printg,Reprints,Dup & Photocopy 502342 Computer Software <$5000 502343 Computer Hardware <$5000 502345 Network Connections 502346 Network Installations

29. 504005 Rentals & Leases – Computer Equipment 504007 Rentals & Leases – Computer Software 504009 Rentals & Leases – Photocopy Equipment 504015 PBX Maintenance

30. 507021 Equipment – Software 507023 Equipment – Software AIS/AICT 507025 Equipment – Computers 507531 LAN Wiring/Cabling (discontinued after 2008-2009)

31. The following account codes were not used: 507017 Equipment – CFI Software 507022 In-Kind – Software 507026 In-Kind – Computers 507208 Books – ElectroncFormat (Learning Services Only) 507217 Serials – ElectroncFormat (Learning Services Only)

32. IST-EA helped generate reports for all purchases with the above account codes from all academic and administrative units Used PeopleSoft nVision reports for the IT-inclusive units Don’t double count purchases from the IT-inclusive units

33. IT-Related Purchases by All Units

34. Total: $47,998,479.04 Total: $55,319,888.36 Total: $46,567,000.22 Total: $52,708,996.50 Total: $49,102,919.40 Total: $50,990,356.67 IT-Related Purchases by All Units

35. IT-Related Purchases as a Percentage of the Operating Budget (Across All Units)

36. Power: The least well-defined pressure point A number of assumptions:  1-1 ratio of workstations to University staff  1-1 ratio of workstations to Graduate Students  Best guess of the server room power requirements other than our main server room Very conservative workstation usage:  52 weeks/year x 5 days/week x 8 hours per day Very conservative server usage:  24 hours/day x 360 days (allowed 5 days per year for maintenance)

37. Other assumptions:  GSB server room power consumption is 35% of the total power consumption of GSB  Power usage of ESQ server room is 25% of GSB server room  Power usage of ECHA and CCIS server rooms is 15% of GSB  All other server closets (50+) are 50% of GSB  1,500 machines in research or other computer labs outside of IST and Computing Science Power consumption computations do not include printers, copiers, fax machines, and plugged in mobile devices

38. Power costs:  Costs to operate workstations per year  Costs to operate the servers and server rooms per year  Costs to cool computers and LCDs per year  Costs to cool the servers and server rooms per year  Annual operations / maintenance costs for HVAC, etc. Majority of power costs involve operating and cooling servers and server rooms

39. Power Expenditure

40. (As a Percentage of the Operating Budget)

41. Putting it all together...

42. The Cost of IT (In Dollars)

43. PeoplePurchasesPowerTotal 2008-2009$42,747,301.05$47,998,479.04$2,012,775.45$92,758,555.55 2009-2010$46,596,279.45$46,567,000.22$2,086,742.64$95,250,022.31 2010-2011$48,350,677.05$50,990,356.67$2,109,366.30$101,450,400.03 2011-2012$49,283,527.99$55,319,888.36$2,357,474.84$106,960,891.19 2012-2013$53,725,842.63$52,708,996.50$2,450,884.18$108,885,723.31 2013-2014$50,149,348.64$49,102,919.40$2,763,174.48$102,015,442.52 The Cost of IT (In Dollars)

44. Total: $92,758,555.55 Total: $106,960,891.19 Total: $95,250,022.31 Total: $108,885,723.31 Total: $102,015,442.52 Total: $101,450,400.03 The Cost of IT

45. (As a Percentage of the Operating Budget)

46. PeoplePurchasesPowerTotal 2008-20095.59%6.28%0.26%12.13% 2009-20105.65% 0.25%11.56% 2010-20115.38%5.67%0.23%11.28% 2011-20125.27%5.92%0.25%11.44% 2012-20135.44%5.34%0.25%11.03% 2013-20144.98%4.88%0.27%10.13% The Cost of IT (As a Percentage of the Operating Budget)

47. 2008-20092009-20102010-20112011-20122012-20132013-2014 Staff (FTE)9105.39416.09416.69636.59793.89525.0 Staff (Head)10793.011251.011138.011301.011567.011302.0 Students (FLE)32238.332445.633114.634,222.135330.036099.4 Students (All)36,843.036783.037422.03788638569.038355.0 Operating Budget$764,462,000.00$824,175,000.00$898,867,039.00$935,031,297.00$987,277,000.00$1,006,351,000.00 Cost of IT$92,758,555.55$95,250,022.31$101,450,400.03$106,960,891.19$108,885,723.31$102,015,442.52 Overall Cost (FTE+FLE)$18,490.46$19,688.09$21,134.30$21,319.22$21,879.30$22,057.30 Overall Cost (Head+All)$16,047.99$17,158.16$18,510.44$19,009.72$19,691.98$20,266.05 IT Cost (FTE+FLE)$2,243.60$2,275.36$2,385.32$2,438.77$2,413.04$2,235.98 IT Cost (Head+All)$1,947.24$1,982.97$2,089.18$2,174.58$2,171.81$2,054.40 The Cost of IT (For Academic Staff, Support Staff and Students)

48. Questions (from me to me)

49. Despite consolidation of IT services for the past three years, IT costs are rising. Why? Creation of new academic and support staff IT-related positions Cost of living and merit increments Opening of CCIS and ECHA (two large buildings on campus) Addition of approximately 200 “smart classrooms” The “Acquire-Merge-Rationalize-Optimize” process currently underway with IST (i.e. IT consolidation)

50. Is the University spending too much on Administrative IT? Some factors to consider…. Student, Human Resource, Financial and Donor Records Campus-wide Learning Management System Campus-wide wireless and external network connection Consolidated software licenses and firewalls (in progress) Centrally-supported “smart classrooms” and computer labs Addition of academic IT units to IST Library, digital, mobile and other campus-wide services How many Academic IT costs are for duplicated services?

51. How do we compare to other large Canadian or American publicly funded post-secondary institutions? It is difficult to say…. Need to compare apples to apples Need to compare apples to the right brand of apples What is “in” and what is not? Progress is being made to answer this question….

52. CUCCIO Benchmarking Working Group Established in 2014 Membership:  Lori MacMullen (CUCCIO – Ex Officio)  Rob Lake (University of Alberta)  Jim Lesslie (Queen’s University)  Jacqueline Oliver (University of Ottawa)  Kent Percival (University of Guelph)  Vivian Wong (Ryerson University) Main focus of the BMWG to date has been to review data definitions and to “clean up” previous data

53. Complexity Index Developed by CAUDIT to enable meaningful comparisons between Universities of differing sizes An institution’s Complexity Index (CI) is calculated using the following four weighted parameters:  Number of FLE students (35%)  Number of FTE staff (35%)  Research revenue (25%)  Number and size of each institution’s campuses (5%) Enables Universities of similar CIs to undertake deeper benchmarking

54. Complexity Index Complexity Index for the University of Alberta:  2010 – 6.5  2011 – 6.5  2012 – 6.2 Three major groupings have been proposed:  Less than 2.1 “Small”  2.2 – 4.9 “Medium”  5.0 and above “ Large”

55. 2012 Complexity Index for Canadian U15 Institutions

56. CUCCIO Benchmarking Data for the University of Alberta 2008-20092009-20102010-20112011-20122012-20132013-2014 Total IT Staff Costs$42,747,301.05$46,596,279.45$48,350,677.05$49,283,527.99$53,725,842.63$50,149,348.64 Central IT Staff Costs$18,149,580.00$19,204,348.00$19,882,343.00$21,072,238.00$23,997,703.00$24,871.888.00 Degree of Centralization42.46%41.21%41.12%42.76%44.67%49.60% Total IT Purchases$47,998,479.04$46,567,000.22$50,990,356.67$55,319,888.36$52,708,996.50$49,102,919.40 Central IT Purchases$31,366.551.00$31,645,552.00$35,850,407.00$39,625,612.00$36,754,023.00$36,290,687.00 Degree of Centralization65.35%67.96%70.31%71.63%69.73%73.91% Total IT Spend$90,745,780.09$93,163,279.67$99,341,033.72$101,603,416.35$106,434,839.13$99,252,268.04 Central IT Spend$49,516,131.00$50,849,900.00$55,732,750.00$60,697,850.00$60,751,726.00$61,162,575.00 Degree of Centralization54.57%54.58%56.10%58.03%57.08%61.62%

57. 2008-20092009-20102010-20112011-20122012-20132013-2014 Total IT FTE497503482479497505 Central IT FTE206198189185198260 Degree of Centralization41.45%39.36%39.21%38.62%39.84%51.49% IT Staff / Total FTE5.5%5.3%5.1%5.0%5.1%5.3% IT Staff Salary + Benefit$86,010.67$92,636.74$100,312.61$102,888.37$108,100.29$99,305.64 Student Workstations8,5839,1459,79210,0099,98610,097 Staff Workstations9,1059,4169,4179,6379,7949,525 CUCCIO Benchmarking Data for the University of Alberta

58. In summary: A “simple” methodology to compute the cost of IT for a major post-secondary institution based on institutional data “Easy” to update on a year-to-year basis IT costs continue to rise, but at a lower rate than the operating budget Does not include depreciation costs You will never be able to compute the exact cost; however, this provides a very good (lower) estimate

59. Thanks to: Ceinwen Arndt (IST-EA) Will Cheng (IST-EA) Kym Banks (Human Resource Services) Debbie McDonald (Human Resource Services) Donna Nordstrom (Human Resource Services) Mike Versteege (Energy Management) Laura Stewart (Strategic Analysis) Dale Olausen (Strategic Analysis) Ian Bernard (Resource Planning) Keith McKinnon (IST) Edith Finczak (Office of the Provost) Rod Johnson (Computing Science)

60. Questions (from you to me)