Data Center Consolidation in California March 21, 2006 Anna Brannen & Mitzi Houston California Department of Technology Services

Why and What California Consolidated? Value From Consolidation Agenda Why and What California Consolidated? Value From Consolidation Lessons Learned Our New Direction Conclusion 1/1/2019

Round Numbers IT Expenditure in CA State Scope of Consolidation $2 billion annual expenditure. 6,000 state IT professionals. $500 million annual telecommunications contract. Scope of Consolidation Two data centers with an annual expenditures over $200 million. Telecommunications and CALNET contract. Full range of data center services. 800 IT professionals. Seven facilities. 1/1/2019

Why California Consolidated Tactical Budget crisis Leveraging buying power Increase efficiency Strategic Opportunity for shared services Retirement crisis Improve security and risk management 1/1/2019

Baby DTS is 7 Months Old! Telecomm. Div. Teale Data Center Human Services Data center 1/1/2019

Where is the Savings (aka Tofu)? Software Licenses Computing Infrastructure Facilities Networks People 1/1/2019

What Went Well? Limited scope creep. Communications. Pick one process and implement! Communications. Different settings for different people. All forms of communications were used. High Level Support. Cabinet, State CIO, and Budget Office. 1/1/2019

Lesson Learned It’s all about people! Project management Melting pot of different cultures. No such thing as over-communication. Project management Not a data center strength. Technicians are not analysts. We’re in religious wars. There is hope! Co-location would have helped. Make facilities changes ASAP. Managing financial expectations Pressure to deliver efficiency fast. 1/1/2019

A context for our business (shared IT services) 5 Strategies Our New Direction Current situation A context for our business (shared IT services) 5 Strategies 1/1/2019

Current (almost past) Situation Each entity had its own approach built around service reps Accept service requests and convey to appropriate internal entity such as Operations, Engineering, or Administration Primarily reactive No real process measures or service levels Occasional measurement of customer satisfaction Customer Perception: Varied 1/1/2019

Why DTS Shared Service? Economies of scale Security Process consistency Standards 1/1/2019

Disaster Recovery / Security DTS Shared Service Model Shared Services Legacy Transformation E-mail Server Based Computing LAN Support Disaster Recovery / Security Customer Support Core Services Mainframe Hosting Servers Telecomm. Desktop Support Public Meeting Videos State Portal DTS Customers DTS Customers 1/1/2019

Strategy 1: Engage the Customer Build a community Develop a Customer Advisory Committee 8 Largest customers (60% of revenue) 1 Medium and one small department Guides the evolutions of new services and programs Endorse standards for shared services Director’s Advisory Board AIO’s Develop programs to engage departmental directors Executive briefings; Building IT strategic roadmap Service specific governance Empower the customer E.g. email, State Portal 1/1/2019

Strategy 2: Organize for Delivery Elevate Customer Service to a major division Incorporate all customer facing functions Assign account managers for major customers Proactive; peer level interface with the CIO Engage in strategic as well as tactical issues Build relationships Quarterly account review with customer and Director Operations and Engineering divisions behind Customer Delivery Division Develop the customer delivery staff Internal educational conferences 1/1/2019

Strategy 3: Plan for Customer Service Add “customer service” as a balanced scorecard item Financial, Customer Service, Employees, Innovation Create strategic plan objectives for customer service improvement Hold managers accountable for measureable improvements Staff training in customer skills 1/1/2019

Strategy 4: Process Improvement and Measurement Implement “Best Practices” – ITIL Start with Service Request process Start process measurement Implement level 1 service level agreements 1/1/2019

Strategy 5: Leadership and Communications Innovation Lab Mini-conference Center Statewide IT event calendar, public and private Expanded training services Monthly newsletter State specific news Relevant technology news Improvement website 1/1/2019

Consolidation was successful Conclusion Consolidation was successful Once you complete consolidation move forward Use consolidation to address long standing issues 1/1/2019