1. Information Technology The Benefits of Infrastructure Optimization
11/11/2018 6:38 PM
Information Technology The Benefits of Infrastructure Optimization
prepared for:
Arkansas State Technology Meeting
September 2, 2009
Richard McKinney
Government Technology Advisor
Microsoft Corporation
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2. My Public Sector Background
CIO
Metropolitan Government of Nashville/Davidson County
IT Director
Tennessee General Assembly
Asst Commissioner / Administration
TN Dept of General Services
Information Technology Consultant
TN Dept of Finance and Administration
Administrative Asst to the Treasurer
TN State Treasurer

3. 1960's -1970's Centralized Mainframe Shop
…To the 2000’s & the Internet
From the 1980's to the 1990's

4. Infrastructure Optimization a model-based approach… on three levels
IT and Security Process
Data Protection and Recovery
Desktop, Device, and Server Mgmt
Identity & Access Management
Security and Networking
Core Infrastructure Optimization Model
BASIC
STANDARDIZED
RATIONALIZED
DYNAMIC
Application Platform Optimization Model
Development
SOA and Business Process
Business Intelligence
User Experience
Data Management
BASIC
STANDARDIZED
ADVANCED
DYNAMIC
Provides capability framework to help you build an optimized infrastructure (not Microsoft-specific)
Establishes a foundation based on industry analyst, academic, and consortium research
Provides guidance and best practices for step-by-step implementation
Drives cost reduction, security and efficiency gains
Enables agility
Business Intelligence
Enterprise Content Management
Collaboration
Unified Communications
Enterprise Search
Business Productivity Optimization Model
BASIC
STANDARDIZED
RATIONALIZED
DYNAMIC

5. Core Infrastructure … the five core capabilities
Basic
Standardized
Rationalized
Dynamic
IT and Security Process
Best-practice guidance on cost-effective solution design, development, operation, and support
Identity and Access Management
Directory services, User provisioning, Directory-based authentication
Desktop, Device, and Server Management
Software distribution, Patch management, Mobility, Imaging, Virtualization
Security and Networking
Policy, Antimalware, Firewall, Access control, Network protection, Quarantine
Data Protection and Recovery
Backup, Restore, Storage management

6. US ENTERPRISE CIO SUMMIT
11/11/2018 6:38 PM
The IO Journey
… getting there from here
Basic
Standardized
Rationalized
Dynamic
Uncoordinated, manual
Infrastructure
Knowledge not captured
Managed IT
Infrastructure
with limited
automation and knowledge capture
Managed and
consolidated IT
Infrastructure
with extensive
Automation, knowledge captured and re-used
Fully automated
management,
dynamic resource
Usage , business
linked SLA’s. Knowledge capture automated and use automated
..”we fight fires”..
Cost Center
More Efficient Cost Center
Business Enabler
Strategic Asset
© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

7. Basic …. where the journey begins
Standardized
Rationalized
Dynamic
Unstructured and lacking central control, infrastructure based on manual processes, ad hoc security, and disparate resources
Policies for security and compliance are inconsistent or nonexistent
Health of services is unknown due to the lack of tools and resources
There is no vehicle for sharing accumulated knowledge across IT
Environments are extremely hard to control
Organization is very reactive (and vulnerable) to security threats
Software deployments, security updates, and services are provided through high touch

8. Ad Hoc Mobile Device Mgmt
Basic IO Capabilites
1 FTE
Basic $1320 / PC
~60 PCs
Identity & Access Management
No Centralized Directory for authentication
Security
No Anti-Virus
No Centralized firewall
No DNS and DHCP
Desktop Mgmt
No Patch Mgmt
No Standard Images
No Image strategy
Multiple OS, more than 2 OS
Server Mgmt
Monitoring bellow OS for 80% critical server
Virtualization
Mobile Device Mgmt
No Mobile device provisioning
Data Protection and Recovery
No Backup / Restore on 80% of critical server
ITIL / COBIT
No formal Change, Incident or Problem process
Security Process
Limited Security Accountability
No Formalized Incident Response
Limited Access Control
Identity & Access Management
No Centralized Directory for authentication
Security
No Anti-Virus
No Centralized firewall
No DNS and DHCP
Desktop Mgmt
No Patch Mgmt
No Standard Images
No Image strategy
Multiple OS, more than 2 OS
Server Mgmt
Monitoring bellow OS for 80% critical server
Mobile Device Mgmt
No Mobile device provisioning
Virtualization
Data Protection and Recovery
No Backup / Restore on 80% of critical server
ITIL / COBIT
No formal Change, Incident or Problem process
Security Process
Limited Security Accountability
No Formalized Incident Response
Limited Access Control
BASIC
No Formal
Processes
Limited Security
Policies
Ad Hoc
Patch Mgmt
Ad Hoc Image Strategy
Ad Hoc Mobile Device Mgmt
Ad Hoc
Terminal Services
Ad Hoc Virtual
Services
Multiple
Directories
Firewall
Ad Hoc Antivirus
Ad Hoc Network
Services
Ad Hoc Monitoring
Ad Hoc Backup

9. Standardized …. putting the pieces in place
Basic
Standardized
Rationalized
Dynamic
Standards and policies to manage desktops, mobile devices, and servers introduce controls and operational consistency
Single Enterprise Directory used to manage resources, security policies, and network access
Value of basic standards / policies recognized but not yet implemented broadly
Deployments / security updates / desktop services provided at medium touch
Inventory of hardware / software assets maintained, license use is managed
Security is improved with a locked-down perimeter, though internal security may still be at risk

10. Standardized IO Capabilities
1 FTE
Standardized $580 / PC
44% of the cost in Basic
~200 PCs
3.3 times more than in Basic
Security
Standard Antivirus
Centralized Firewall
Internal DNS, DHCP
Identity & Access Management
Unified Directory Service for authentication using Active Directory
Desktop Mgmt
Automated Patch Mgmt
Standard Images
Image strategy (OS, AV, Apps)
Standardized on2 OS
No application compatibility testing
Server Mgmt
Monitoring OS for 80% critical server
Defined set of standard images
Mobile Device Mgmt
Mobile device provisioning
Security Policy
Remote wipe
Policy enforcement
Virtualization
Virtualization for test environments
Data Protection and Recovery
Backup / Restore on 80% of critical server
ITIL / COBIT
Defined Support Services for Problem, Change and Configuration Management
Security Process
Accountability to Data Security
Limited Risk Assessment
Password Protection of Data
Limited Tools and Policy Compliance Automation
Identity & Access Management
Unified Directory Service for authentication using Active Directory
Security
Standard Antivirus
Centralized Firewall
Internal DNS, DHCP
Desktop Mgmt
Automated Patch Mgmt
Standard Images
Image strategy (OS, AV, Apps)
Standardized on2 OS
No application compatibility testing
Server Mgmt
Monitoring OS for 80% critical server
Defined set of standard images
Mobile Device Mgmt
Mobile device provisioning
Security Policy
Remote wipe
Policy enforcement
Virtualization
Virtualization for test environments
Data Protection and Recovery
Backup / Restore on 80% of critical server
ITIL / COBIT
Defined Support Services for Problem, Change and Configuration Management
Security Process
Accountability to Data Security
Limited Risk Assessment
Password Protection of Data
Limited Tools and Policy Compliance Automation
STANDARDIZED
Formal
Processes
Deployed
Security Policies
Desktop Patch
Management
Standard Image Strategy
Simple Mobile Device Mgmt
Ad Hoc
Terminal
Services
Virtualization
Dev and Test
Centralized
Directory
Formal
Firewall
Standard
Antivirus
DNS, DHCP, plus
Networking
Services
Monitoring
Critical Servers
Backup / Restore
Critical Servers

11. Rationalized …. moving from reactive to proactive
Basic
Standardized
Rationalized
Dynamic
Costs involved in managing desktops and servers are at their lowest, with integrated IT management policies, tools, and processes
Security is proactive and response to threats is rapid and controlled
The use of zero-touch deployment helps minimize cost and time
Minimal number of desktop images and low-touch management
Hardware and software inventory is managed, with optimal license use
Security measures involve strict policies and control

12. Rationalized IO Capabilities
Identity & Access Management
Policy enforced Standard Configuration
Group policy management
Information Protection Infrastructure (RMS)
1 FTE
Rationalized
$230 / PC
17% of the cost in Basic
~400 PCs
6.6 times more than in Basic
Security
Secure Remote Access
Server to server isolation
Consolidation of branch security
Policy managed firewalls on server and client
Secure Wireless
Client Side Certificates
Identity & Access Management
Policy enforced Standard Configuration
Group policy management
Information Protection Infrastructure (RMS)
Desktop Mgmt
N-2 OS and patchable office suite
Automated asset mgmt & tracking
Automated OS image deployment
Layered image strategy
Configuration monitoring
Desktop Error Monitoring
Application compatibility testing
Automated Application distribution for 80% of their desktop (physical or virtual)
Server Mgmt
SLA Monitoring of mission critical servers
IT Service Level Reporting
Automated OS Deployment
Automated Patch management
Centralized management of Branches
Monitor and report configuration compliance
Mobile Device Mgmt
Certificate Provisioning & Authorization for Mobile Devices
Web Apps (WAP)
802.1X certificates for Mobile Devices
Virtualization
Virtualization in branch offices
server consolidation
Terminal Services
Data Protection and Recovery
Backup/restore on all servers + SLA
Clustering or similar for defined availability
Server Backup & Restore via Virtualization
If Branches: centralized backup of servers
ITIL / COBIT
Defined Problem, Change and Release Management
Fully documented Operations
Defined Service Levels
Enhanced Configuration Management
Formalized Process for system administration, service monitoring
Network administration conduct operations management reviews across all phases of an IT service lifecycle
Security Process
Defined Security Compliance and Automated Audit Tools
Documented Threats and Vulnerabilities
Security Standards for SW Acquisitions
Security
Secure Remote Access
Server to server isolation
Consolidation of branch security
Policy managed firewalls on server and client
Secure Wireless
Client Side Certificates
Desktop Mgmt
N-2 OS and patchable office suite
Automated asset mgmt & tracking
Automated OS image deployment
Layered image strategy
Configuration monitoring
Desktop Error Monitoring
Application compatibility testing
Automated Application distribution for 80% of their desktop (physical or virtual)
Server Mgmt
SLA Monitoring of mission critical servers
IT Service Level Reporting
Automated OS Deployment
Automated Patch management
Centralized management of Branches
Monitor and report configuration compliance
Mobile Device Mgmt
Certificate Provisioning & Authorization for Mobile Devices
Web Apps (WAP)
802.1X certificates for Mobile Devices
Virtualization
Virtualization in branch offices
server consolidation
Terminal Services
Data Protection and Recovery
Backup/restore on all servers + SLA
Clustering or similar for defined availability
Server Backup & Restore via Virtualization
If Branches: centralized backup of servers
ITIL / COBIT
Defined Problem, Change and Release Management
Fully documented Operations
Defined Service Levels
Enhanced Configuration Management
Formalized Process for system administration, service monitoring
Network administration conduct operations management reviews across all phases of an IT service lifecycle
Security Process
Defined Security Compliance and Automated Audit Tools
Documented Threats and Vulnerabilities
Security Standards for SW Acquisitions
RATIONALIZED
Formal & Followed
Processes with SLA’s
Defined & Followed
Security & Compliance Policy
Information
Protection
Configuration
& Asset
Mgmt
Automated Image Strategy
Mobile Device Provisioning & Mgmt
Service
Desk
Capacity
& Server
Workload
Mgmt
Terminal
Services
Virtual
Machine
Mgmt
Centralized
Identity
Management
Firewall
Secure Server Isolation
Antivirus
Centralized
Anti Spam
Cache
VPN
Application
Gateway
Network
Services
Management
SLA Based
Administration
& Monitoring
Data
Protection
Mgmt

13. IO and IT Performance ~60 PCs ~200 PCs ~400 PCs! One FTE
Basic $1320 / PC
~60 PCs
Standardized $580 / PC
~200 PCs
Rationalized $230 / PC
~400 PCs!
One
FTE
Note: $/PC represent annual IT labor per PC
Source: IDC, 2006; Microsoft studies,
Whitepapers located at:

14. Infrastructure Optimization Savings
$1,320/PC
$580/PC
$230/PC
Standardization & Standards Compliance = $300/PC Savings
None
No PC life cycle strategy
No policy based PC mgt
Many hw, sw configs
Standardization
Defined PC lifecycle
Limited policy based PC mgt
Many software configs
Stds Compliance
Defined PC Lifecycle, stds enforcement
Full policy based PC mgt
Minimal hw, sw configs
Identity & Access Management = $170/PC Savings
Multiple Directories
Many auth. directories
No dir synchronization
Manual user provisioning
Single directory for Auth
One authentication dir.
Automated provisioning
Single Sign-on
Auto password reset
Auto user provisioning
PC Security = $130/PC Savings
The Infrastructure Optimization Model from Microsoft has been developed using Industry best practices, Microsoft’s own experiences with its enterprise customers, and is based upon Gartner’s Infrastructure Maturity Model and MIT’s Architecture Maturity Model. A key goal for Microsoft in creating the Infrastructure Optimization Model was to develop a simple way to use a maturity framework that is flexible and can easily be used as the benchmark for technical capability and business value.
The Infrastructure Optimization Model from Microsoft helps customers understand and subsequently improve the current state of their IT infrastructure and what that means in terms of cost, security risk and operational agility. Dramatic cost savings can be realized by moving from an unmanaged environment towards a dynamic environment. Security improves from highly vulnerable in a Basic infrastructure, to dynamically proactive in a more mature infrastructure. IT Infrastructure Management changes from highly manual and reactive to highly automated and proactive. Microsoft and Partners can provide the technologies, processes and procedures to help customers move up through the Infrastructure Optimization Journey. Process moves from fragmented or non-existent to optimized and repeatable. A customer’s ability to use technology to improve their business agility and deliver business value increases as they move from the Basic state up the continuum toward a Dynamic state empowering information workers, managers and supporting new business opportunities.
By working with Microsoft and using this model as a framework, an enterprise can quickly understand the strategic value and business benefits to the organization in moving from a “basic” level of maturity (where the IT infrastructure is generally considered a “cost center”) towards a more “dynamic” use when the business value of the IT infrastructure is clearly understood and the IT infrastructure is viewed as a strategic business asset and business enabler.
Minimal PC Security
Anti-virus
Manual patching
No enforced security
Limited PC Security
PC firewall
Auto patching
Comprehensive PC Security
Anti Spyware
Enforced security compliance with Network Access Control
Systems Management = $230/PC Savings
No system-wide mgmt
Poor sys mgt tool coverage
Duplicate mgmt tools
Manual deployment
Limited sys mgmt
Single sys mgt tool
Software packaging
Software distribution
Comprehensive sys mgt
Hw, sw inventories
Hw, sw reporting
Auto/targeted sw dist.

15. World Wide IO Analysis
15,156 IT Environments Analyzed (>500 Employees)

16. Core IO Vertical Industry Comparison
15156 Customers IT Environments Analyzed

17. Alinean Core IO ROI Analysis Tool

18. State of Arkansas Opportunities / Findings
11/11/2018 6:38 PM
State of Arkansas Opportunities / Findings
Is currently at a Basic infrastructure optimization level, on measured progressive levels of maturity, cost reductions and service from Basic, through Standardized and toward a goal of Rationalized.
Currently spends $10, in total direct costs per user per year consisting of:
$3, in IT operations and administration labor or equivalents per user per year ($1,014,205 total), including:
$ per user ($247,855 total) for client computer operations and administration (including PC engineering, PC image management, PC security management and PC security risk mitigation)
$2, per user ($641,750 total) for server operations and administration, server image management, server security patch management and server security risk mitigation
$ per user ($49,000 total) for service desk
$ per user ($75,600 total) for tools and directory management
Commits total for in-house FTEs and 0.50 outsourced / contract total FTEs to core infrastructure management, including 5.78 for client computer operations and administration and 8.42 for server operations and administration
Receives an average of service desk calls per month to the service desk per user including 194 escalated level 2 calls per month, and 16 escalated level 3/ dispatched calls per month
$1, in IT capital per user per year including costs for PC hardware and software, thin client hardware and software, mobile messaging device hardware and software, server hardware and software, storage hardware and software, and dedicated security hardware costs
$2, in additional operating expenditures (non-labor) per year including support and maintenance contracts, facilities and overhead costs, WAN bandwidth expenditures
Currently has $213,486 in total indirect (soft) costs ($ per user) including costs for end user operations, service desk user impacts and availability.
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 18

19. Current Practices Assessment
Basic Standardized - 2 Rationalized - 3 Dynamic - 4

20. Expected IT Labor Productivity Improvements
11/11/2018 6:38 PM
Expected IT Labor Productivity Improvements
Annual Labor Costs per User
Current (As Is)
Optimized
(To Be)
Annual Benefits per User
PC Operations and Administration
$953.29
$667.09
$286.20
Server Operations and Administration
$2,468.27
$1,875.55
$592.73
IT Service Desk
$188.46
$40.72
$147.75
Tools and Directory Management
$290.77
$189.00
$101.77
Total Annual Labor Costs per User
$3,900.79
$2,772.36
$1,128.45
Total Annual Labor Costs
$1,014,205
$720,814
$293,397
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 20

21. Expected Additional Direct Cost Avoidance
11/11/2018 6:38 PM
Expected Additional Direct Cost Avoidance
Annual Costs per User
Current (As Is)
Optimized
(To Be)
Annual Benefits per User
Client Hardware Purchases
$767.31
$0.00
Client Software Purchases
$23.56
$30.96
Client Maintenance and Support Contracts
$319.23
$251.92
$67.31
PC Power
$86.34
$23.16
$63.18
Server Hardware Purchases
$850.02
$439.03
$410.98
Server Software Purchases
Server Maintenance and Support Contracts
$1,757.90
$901.13
$856.77
Server Facilities and Overhead
$166.74
$86.20
$80.54
WAN Network Bandwidth
$11.54
$9.23
$2.31
Dedicated Security Hardware
Total per User per Year
$3,982.64
$2,508.94
$1,481.09
Total per Year
$1,035,486
$652,324
$385,083
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 21

22. Additional Indirect Benefits
11/11/2018 6:38 PM
Additional Indirect Benefits
Additional Indirect and Business Benefits
Annual Indirect and Business Benefits per User
Reduced end user operations costs
$797.00
Reduced service desk problem resolution downtime
$87.06
Reduced PC unplanned downtime
$62.88
Reduced PC planned downtime
$26.72
Reduced server unplanned downtime
$113.18
Reduced server planned downtime
$19.23
Reduced security breach user impacts
$5.18
Reduced PC data loss / recovery costs
$2.66
Improving business agility - new applications development and deployment
$0.00
Improving business agility – reorganizations, mergers and acquisitions
$87.25
Total Indirect and Business Benefits
$1,201.16
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 22

23. 11/11/2018 6:38 PM
TCO Comparison Comparing the TCO of the current environment versus the proposed optimization plan indicates a total available savings of $1,053,541 per year (on average), and $5,267,703 cumulative over 5 year analysis period.
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 23

24. 11/11/2018 6:38 PM
IT TCO Impact
TCO Comparison Cumulative 5 Year
Solution A: Current (As Is) - Basic
Solution B: Optimized (To Be) - Rationalized
Difference
(A - B)
(A - B)%
IT Costs
Client Hardware Purchases
$984,000 $0
0.0%
Client Software Purchases
$23,625
$34,258
($10,633)
-45.0%
Client Maintenance and Support Contracts
$415,000
$327,500
$87,500
21.1%
PC Power
$124,038
$33,275
$90,763
73.2%
Server Hardware Purchases
$1,183,896
$606,566
$577,330
48.8%
Server Maintenance and Support Contracts
$2,411,060
$1,227,961
$1,183,099
49.1%
Server Facilities and Overhead
$232,067
$119,095
$112,972
48.7%
Server Software Purchases
$105,644
$53,815
$51,829
PC Operations and Administration
$1,369,555
$958,387
$411,168
30.0%
Server Operations and Administration
$4,775,652
$3,628,835
$1,146,817
24.0%
IT Service Desk
$270,757
$58,495
$212,262
78.4%
Tools and Directory Management
$417,737
$271,530
$146,207
35.0%
WAN Network Bandwidth
$22,325
$17,860
$4,465
20.0%
Optimized Infrastructure Investment - IT Capital Investment
$70,292
($70,292)
Optimized Infrastructure Investment - IT Labor and Service
$275,839
($275,839)
Total IT Costs
$12,335,356
$8,667,708
$3,667,648
29.7%
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 24

25. Business TCO Impact 11/11/2018 6:38 PM
TCO Comparison Cumulative 5 Year
Solution A: Current (As Is) – Basic
Solution B: Optimized (To Be) – Rationalized
Difference
(A - B)
(A - B)%
Business Operating Costs
Optimized Infrastructure Investment - Business Unit Investment $0
$268
($268)
0.0%
End User Operations
$4,065,185
$2,920,159
$1,145,026
28.2%
Service Desk Problem Resolution Downtime
$148,562
$23,485
$125,077
84.2%
PC Unplanned Downtime
$150,562
$60,224
$90,338
60.0%
PC Planned Downtime
$376,405
$338,017
$38,388
10.2%
Server Unplanned Downtime
$406,511
$243,910
$162,601
40.0%
Server Planned Downtime
$81,312
$53,678
$27,634
34.0%
Security Breach User Impact
$8,285
$841
$7,444
89.8%
PC Data Loss / Recovery
$7,990
$4,175
$3,815
47.7%
Total Business Operating Costs
$5,244,812
$3,644,757
$1,600,055
30.5%
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 25

26. 11/11/2018 6:38 PM
Benefits Summary
Examining the benefits from implementing the plan results in cumulative 5 year savings of $2,974,204 in direct benefits, and $332,565 in indirect (soft) benefits.
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 26

27. Benefits Summary 11/11/2018 6:38 PM
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Total Benefits (to Solution B from Current (AS IS))
$130,935
$431,908
$798,358
$933,803
$1,011,765
$3,306,769
Top Benefits
Server Maintenance and Support Contracts
$33,414
$103,291
$186,366
$238,331
$247,219
$808,621
Server Operations and Administration
$23,116
$78,596
$166,438
$244,108
$292,930
$805,188
Server Hardware Purchases
$32,056
$112,768
$188,264
$119,485
$124,757
$577,330
PC Operations and Administration
$11,162
$34,601
$64,459
$84,089
$88,294
$282,604
End User Operations (Indirect)
$9,325
$28,907
$53,852
$70,252
$73,764
$236,100
IT Service Desk
$5,762
$17,863
$33,276
$43,410
$45,580
$145,892
Tools and Directory Management
$3,969
$12,304
$22,921
$29,901
$31,396
$100,491
Server Facilities and Overhead
$3,141
$9,780
$17,696
$22,720
$23,894
$77,230
PC Power
$2,464
$7,638
$14,229
$18,562
$19,490
$62,384
Client Maintenance and Support Contracts
$2,625
$7,875
$14,000
$17,500
$59,500
All other included benefits.
$3,900
$18,285
$36,858
$45,445
$46,941
$151,429
Total Top Benefits
Direct Benefits
$117,800
$391,190
$722,504
$834,848
$907,862
$2,974,204
Indirect Benefits
$13,135
$40,718
$75,854
$98,955
$103,903
$332,565
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 27

28. 11/11/2018 6:38 PM
Investment Required The total investment is expected to be $70,292 in non-recurring Initial costs, with an additional $357,032 cumulative recurring costs over the next three years.
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 28

29. Cumulative Costs vs. Cumulative Benefits
11/11/2018 6:38 PM
Cumulative Costs vs. Cumulative Benefits
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 29

30. ROI Analysis (Solution B) (Conservative Case)
11/11/2018 6:38 PM
ROI Analysis
ROI Analysis (Solution B) (Conservative Case)
Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Benefits (to Solution B from Current (AS IS)) $0
$130,935
$431,908
$798,358
$933,803
$1,011,765
Cumulative Benefits
$562,843
$1,361,201
$2,295,004
$3,306,769
Investment (Solution B)
$70,292
$277,572
$2,138
$2,236
$2,341
$2,453
Cumulative Investment
$347,864
$350,002
$352,238
$354,579
$357,032
Cash Flow
($70,292)
($146,638)
$429,770
$796,122
$931,462
$1,009,312
Cumulative Cash Flow
($216,930)
$212,840
$1,008,962
$1,940,425
$2,949,736
ROI
826%
Risk Adjusted ROI
452%
NPV Savings
$1,375,116
IRR
169%
Payback period (including deployment period)
19 month(s)
Risk Adjusted Discount Rate
21.0%
©2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 30

31. Summary of Core IO ROI Analysis
Overall, the proposed infrastructure optimization project is expected to take State of Arkansas from:
its current Basic level
to Rationalized.
Reduces net total costs per user per year from $11, to $9,148.60
Improves overall IT productivity through task automation and proactive avoidance, reducing labor related efforts on Client and Server IT Operations and Administration from:
13.70 full time equivalents (FTEs) in-house resources to 9.55 FTEs under the optimization plan, a reallocation opportunity of 4.15 FTEs (Year 1)
0.50 FTE out-sourced / contract resources to 0.50 FTEs under the optimization plan, a reallocation opportunity of 0.00 FTEs (Year 1)
Reduce the need for managed services from $0 to $0 per year (Year 1)
Reduces service desk calls from total calls per month to 100 total calls per month
Reduces indirect costs such as end user operations and downtime per user from $ to $ per year, a savings of $ per year per user
Yields a total of $2,974,204 in direct benefits, and $332,565 in indirect benefits over the next 5 years (risk adjusted results)
The project will requires a $70,292 initial investment and $357,032 cumulative investment over 5 years. .

32. IDC Research IDC Core Infrastructure Optimization White Papers
The relationship between IT labor costs and best practices for managing the Windows desktop
The relationship between IT labor costs and best practices for identity and access management with Active Directory
Windows Server Best Practices (TBD)
The relationship between IT labor costs and best practices for Systems Management Server
Messaging and Collaboration Best Practices (TBD)
Developing an IO Strategy (TBD)
Analysis of the value of Windows Vista
Microsoft White Papers
Infrastructure Optimization: Driving Down the Costs of the Business Desktop
Microsoft Desktop Optimization Pack for Software Assurance - Wipro Product Strategy and Architecture Practice’s Analysis of Features, Cost Benefits, and Effects on IT Best Practices that Improve IT Infrastructure Optimization

33. US ENTERPRISE CIO SUMMIT
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© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.