1. 11 Delivering Value to the Mission: The Case for IT Consolidation & Optimization Adrian Farley CTO & Acting Director of Technology Services Sacramento HDI – April 21, 2011

2. By the Numbers – State Budget Annual Budget: $127.37 billion General Fund: $84.6 billion K-12 Ed: $36.2 billion HHS: $21.2 billion Higher Ed: $9.8 billion Corrections: $9.1 billion Governor has proposed balanced solution to address $25.4 billion General Fund budget deficit. $12.5 billion program cuts (approved by Legislature) $14 billion in revenue solutions $1 billion reserve fund 2

3. By the Numbers – IT Budget IT Budget: ~$4.5 billion – Executive Branch: $2.8 billion – General Fund:$0.9 billion Executive Branch IT Projects: ~$700 million – General Fund:$200 million – Project Portfolio: $6 billion over 9 years Hard/Software: ~$900 million Telecomm/Net: ~$400 million IT Staff: ~$900 million – Total Staff FTE: 10,000 3

4. Why consolidate and optimize? Provide better services to Californians Improve data management and security Improve cost effectiveness Position the State to do more with less Reduce the States carbon footprint / improve stewardship of environmental resources 4

5. Key Drivers 5 Consolidation & Optimization Increase Agility Reduce Cost of Service Delivery Manage Risk

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7. IT Consolidation & Optimization Focus The Infrastructure Consolidation Program (ICP) reflects best practices being applied by private and public sector industries across the country and throughout the world. Infrastructure consolidation focuses on: establishing standards, streamlining operations, leveraging economies of scale, centralizing resource pools to establish centers of excellence, improving cost management, and establishing infrastructure that supports increased flexibility, security, and reliability of business programs and services. 7

8. Benefits for Californians Improved access to services Improved security of personal data Improved allocation of tax dollars in support of critical services Improved stewardship of natural resources 8

9. Benefits to State Agencies Improved reliability for critical business applications. Decreased time required to implement new business applications and infrastructure. Increased technical career and staff development opportunities. More modern infrastructure upon which to work 9

10. Thank You