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

2. Why and What California Consolidated? Value From Consolidation
Agenda
Why and What California Consolidated?
Value From Consolidation
Lessons Learned
Our New Direction
Conclusion
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3. 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.
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4. Why California Consolidated
Tactical
Budget crisis
Leveraging buying power
Increase efficiency
Strategic
Opportunity for shared services
Retirement crisis
Improve security and risk management
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5. Baby DTS is 7 Months Old! Telecomm. Div. Teale Data Center
Human Services
Data center
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6. Where is the Savings (aka Tofu)?
Software Licenses
Computing Infrastructure
Facilities
Networks
People
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7. 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.
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8. 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.
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9. 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
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10. 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
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11. Why DTS Shared Service? Economies of scale Security
Process consistency
Standards
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12. Disaster Recovery / Security
DTS Shared Service Model
Shared Services
Legacy
Transformation
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
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13. 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. , State Portal
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14. 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
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15. 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
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16. Strategy 4: Process Improvement and Measurement
Implement “Best Practices” – ITIL
Start with Service Request process
Start process measurement
Implement level 1 service level agreements
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17. 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
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18. Consolidation was successful
Conclusion
Consolidation was successful
Once you complete consolidation move forward
Use consolidation to address long standing issues
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