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

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

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 4/9/2019

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 4/9/2019

Five IT Infrastructure Assessments Network – Connects everybody together Data Center (Servers) – business applications and common functions (E-Mail, Web) Security – Protect technology and data Service Desk – single point of contact for problems or requests Desktops – helps customers with hardware and software 4/9/2019

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 4/9/2019

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. 4/9/2019

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 4/9/2019

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 4/9/2019 Commerce August 1 – December 31

Opportunities via Consolidation Geographical Locations Server Consolidation  Virtualization Technology Enterprise services example  Managed Desktop Services 4/9/2019

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 4/9/2019

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 4/9/2019

IT Consolidation – Phase II Server Summary Opportunities via Consolidation IT Consolidation – Phase II Server Summary 4/9/2019

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. 4/9/2019

Opportunities via Consolidation Benefits of Virtualization Rapid hosting growth Power demands Cooling demands Floor space Disaster Recovery Provisioning improvements Consolidation plans 4/9/2019

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 4/9/2019

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 E-Mail, network connectivity, server/hosting, etc. 4/9/2019

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 4/9/2019

Value by Managing Services @ Enterprise Level Opportunities via Consolidation Value by Managing Services @ Enterprise Level Examples of other statewide shared services… Beacon HR/Payroll Statewide eMail Statewide Procurement State Capital Police State Property Management Motor Fleet Management Enterprise programs drive reduced risks, reduced costs and increased efficiencies. 4/9/2019

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 4/9/2019

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