Ohio Digital Government Summit “Enterprise IT Consolidation” October 5, 2004 Presented by: Charles F. Gerhards President, Gerhards Consulting Group, LLC Gerhards@gerhardsconsulting.com
Enterprise IT Consolidation: Business Drivers Budget Pressures Cost Savings Improved Performance Reliability / Stability Security Back-up / Recovery
Business-Technology Dependency Government Critical Services Criminal Justice Health & Human Services Education Economic Development Administration (Receipts & Disbursements) Technology Infrastructure Computers Networks Security
Commonwealth of Pennsylvania Major Enterprise Consolidation Projects Enterprise Telecom Network Savings: $100M over 5 years E-Mail Consolidation (65,000 users) Savings: $8M in TCO/Annually Data Centers Consolidated / Outsourced Savings: $100M over 7 years
Consolidation: A Challenging Experience
PA Data Powerhouse: Case Study - Process - Conducted Independent Assessment Issued Procurement / Selected Partner Planned / Executed Transition Achieved Steady State Continuously Measured Performance
PA Data Powerhouse: Case Study - Outcomes - Consolidated / Outsourced 17 Data Centers Achieved Savings / Cost Avoidance ($100 M / 7 years) Reinvested Savings into Better Performance Improved Performance (Rated “Best-of-Breed” by Gartner Group)
Enterprise IT Consolidation: Lessons Learned Ensure Executive-level Support Conduct Independent Assessment Re-invest Savings into Performance
Enterprise IT Consolidation: Lessons Learned Focus on Outcomes (not Technology) Consolidate, Don’t Centralize Seek Public/Private Partnerships
Vendor vs. Partner CRITERIA VENDOR PARTNER Financial Approach Sees Opportunity Financial Approach Sees Revenue When Problems Develop Executive Involvement Continuous Command & Control Collaborative Project Management Improves Staff Skills Mentoring Disinterested
Ohio Digital Government Summit “Enterprise IT Consolidation” October 5, 2004 Presented by: Charles F. Gerhards President, Gerhards Consulting Group, LLC Gerhards@gerhardsconsulting.com