1. Texas Department of Information Resources Board Meeting 9:30 a.m., February 7, 2013 Room 1-104, W.B. Travis Building 1701 North Congress Avenue

2. DIR Board Meeting | February 7, 2013 Executive Director’s Report Karen W. Robinson Executive Director 3.1

3. Executive Director’s Report Report on Agency Performance Employee Recognition Chief Operating Office  Yolanda Barrera, CCTS Operator (Communications Technology Services)  Tanya Skaarup, Project Manager (Program/Portfolio Management Office)  Willie Adams, Business Analyst (eGovernment/Texas.gov)  Mario Gutierrez, Contract Manager (Technology Sourcing Office)  Eddie Block, Assistant CISO (Chief Information Security Office) Chief Administrative Office  Endi Ollis, Research Specialist (Technology Planning, Policy and Governance)  P. J. Vilanilam, Systems Analyst (Technology Planning, Policy and Governance) Chief Financial Office  Reggie Pegues, Director of Accounting DIR Board Meeting | February 7, 2013 Executive Director’s Report 2 Next Board Meeting – Thursday, May 30, 2013 (unless a special meeting is necessary) 3.2

4. DIR Board Meeting | February 7, 2013 Audit Update Andrew Dimas Director of Internal Audit 4.1

5. DIR Board Meeting | February 7, 2013 Finance Update Nick Villalpando Chief Financial Officer 4.2

6. FINANCIAL STATEMENT HIGHLIGHTS: FY13 YTD (END OF Q1) Budget Status as of November 30, 2012 Revenue Overall agency operating revenue trending 5% over operating budget  Technology Sourcing (Cooperative Contracts) – on target with budget  Communications Technology Services (TEX-AN and CCTS) – on target with budget  Technology Center Services (Data Center) – positive variance of 27% Due to customer demand exceeding original appropriations and results of DCS True-Up Expenditures Collective agency perspective – operating expenditures are trending slightly under budget (<1%) DIR Board Meeting | February 7, 2013 Finance Update 2 4.3

7. FINANCIAL STATEMENT HIGHLIGHTS: FY13 YTD (END OF Q1) Operating Results as of November 30, 2012 DIR Board Meeting | February 7, 2013 Finance Update 3 DEPARTMENT OF INFORMATION RESOURCES FY 2013 INCOME STATEMENT OPERATING RESULTS AS OF 11/30/2012 2013 OPERATING BUDGET ACTUALS Q1 FORECAST Q2 - Q4 FY 2013 PROJECTED TOTAL FAVORABLE (UNFAVORABLE) VARIANCE Gross Revenue$283,325,974$77,132,770$207,318,335$284,451,105$1,125,131 Less: Cost of Services(253,908,955)(68,708,597)(186,155,636)(254,864,233)(955,278) Net Revenue Before Operating Expenses$29,417,019$8,424,173$21,162,699$29,586,872$169,853 Operating Expenses Direct Expenses19,075,9703,881,66515,209,62019,091,285(15,315) Indirect Expenses Cost of Non-Revenue Generating Programs911,855169,619678,370847,98963,866 Indirect Administration7,633,8381,664,6265,715,6997,380,325253,513 Total Operating Expenses27,621,6635,715,910 21,603,68927,319,599302,064 Net Revenue (Loss)$1,795,356$2,708,263($440,990)$2,267,273$471,917 4.4

8. FINANCIAL STATEMENT HIGHLIGHTS: FY13 YTD (END OF Q1) Discussion and Approval of Budget Amendments For Board Approval Amendment 1  Increase Data Center Services Gross Revenue by $42 Million  Increase Data Center Services Cost of Services by $40.8 Million  Increase Data Center Services Net Revenue by $1.2 Million Reflects customer demand exceeding original appropriations and results of DCS True-Up ACTION: Staff requests Board approval of Amendment 1 For Reporting Purposes The following amendment was approved by the Executive Director pursuant to the budget amendment policy – Board approval not required Amendment 2  Reclassification of $165,000 professional fees budget to telecom infrastructure DIR Board Meeting | February 7, 2013 Finance Update 4 4.5

9. DIR Board Meeting | February 7, 2013 State Strategic Plan Advisory Committee Lori Person Chief Administrative Officer 5.1

10. State Strategic Plan Advisory Committee The executive director shall appoint an advisory committee to assist in the preparation of the state strategic plan. The members of the advisory committee must be approved by the board and must include officers or employees of state government. — Texas Government Code §2054.091(d) Collaborative body to advise DIR on SSP development Diverse membership Texas state agency State university system/institution of higher education Federal agency Local government with knowledge of computing/telecommunications Resident not employed by the state or the computing/telecommunications industry Computing/telecommunications industry  whose company does not sell to the state  whose company sells to the state ACTION: Approval of Advisory Committee Roster DIR Board Meeting | February 7, 2013 State Strategic Plan Advisory Committee 2 5.2

11. DIR Board Meeting | February 7, 2013 Texas Administrative Code Martin Zelinsky General Counsel 6.1

12. Texas Administrative Code Rules Proposed for Amendment and Publication 1 TAC 203 – Management of Electronic Transactions and Signed Records – ACTION Rules Proposed for Repeal/Replacement and Publication 1 TAC 207 – Telecommunications Services – ACTION DIR Board Meeting | February 7, 2013 Texas Administrative Code 2 6.2

13. DIR Board Meeting | February 7, 2013 Carl Marsh Chief Operating Officer Chief Operating Office Update 7.1

14. DATA CENTER SERVICES Projects – Solution Request Pipeline DIR Board Meeting | February 7, 2013 Chief Operating Office | Data Center Services 2 END OF Aug END OF Sep END OF Oct END OF Nov END OF Dec END OF Aug END OF Sep END OF Oct END OF Nov END OF Dec END OF Aug END OF Sep END OF Oct END OF Nov END OF Dec 7.2

15. DIR Board Meeting | February 7, 2013 Chief Operating Office | Data Center Services 3 DATA CENTER SERVICES Service Requests 7.3

16. 4 DATA CENTER SERVICES Customer Satisfaction DIR Board Meeting | February 7, 2013 Chief Operating Office | Data Center Services 2012 2011 7.4

17. DATA CENTER SERVICES Server Consolidation Data Center Network Improvements Completed Xerox implemented architecture overhaul of ADC/SDC networks to increase capacity, security, flexibility and resiliency Security Increased ADC/SDC Local Area Network backbone to 10Gbps Increased datacenter-to-datacenter replication capacity by 150% DIR Board Meeting | February 7, 2013 Chief Operating Office | Data Center Services 5 7.5

18. Texas.gov Year over year (Q1) Visits up 6.8% Transactions up 7.8% Cumulative state share $139M through FY13 Q1 Forecasted $159M through FY13 Increased Customer Input – DPS and DSHS Executive Steering Committee (3 customer members) Project Review Board (2 customer members) DIR Board Meeting | February 7, 2013 Chief Operating Office | Texas.gov 6 7.6

19. Technology Sourcing Office Cooperative Contracts Customer purchases Q1-FY13 = $417.1M State Agencies = 23.9% of Purchases Cost savings Q1-FY13 = $66.5M State Agencies = 24.5% of Savings Percent HUB purchases Q1-FY13 = 28.9% Average cost-recovery rate for Q1-FY13 YTD =.40% RFOs of interest  Cloud Services RFO responses due end of January  Deliverables-Based IT Services (DBITS) – contract negotiations underway  Information Technology Staff Augmentation Contracts (ITSAC) RFO is scheduled to be released in late January  Dell and Lenovo Branded Contracts executed with new pricing options, including pre-negotiated volume discounts and fixed-price, deeply discounted laptop and desktop offerings with standard configurations Enterprise Contracts Service provider contracts for Data Center Services – adjustment of initial baseline costs – ACTION DIR Board Meeting | February 7, 2013 Chief Operating Office | Technology Sourcing Office 7 7.7

20. Communications Technology Services DIR Security Operations Center Services Enhanced network security applications and processes at Data Centers Implementation of VoIP system upgrade Enhanced unified communications DIR Board Meeting | February 7,2013 Chief Operating Office | Communications Technology Services 8 Actual Projected 7.15

21. Information Security State of the State Webinar on Gartner Assessment Trends Attended by Executive Directors, Information Security Officers and Information Resource Managers  77 attendees with feedback rating average of 4+ (on scale of 1-5) Cybersecurity Exceptional Item Requests Two requests totaling $9.8M Funds additional state security assessments, updates to security standards, awareness and training Chief Information Security Officer Candidate search underway DIR Board Meeting | February 7, 2013 Chief Operating Office | Information Security 9 7.16

22. Data Center Services Office 365 Deployments – 20,221 email boxes added in Q1-FY13 OAG Email Migration to Outlook 2010 completed in January (~6,200 accounts) Technology Sourcing Office SAO HUB Audit SAO Cooperative Contracts Audit DBITS RFO Cloud Services RFO RFO Planning & Resource Management Tool Automation Salesforce Contract Content Refresh Enterprise Search Engine Improvements  will narrow results by 53% (no duplications) Online Marketplace DIR Board Meeting | February 7, 2013 Chief Operating Office | Program & Portfolio Management Office 10 Program & Portfolio Management Office 7.17

23. DIR Board Meeting | February 7, 2013 Legislative Update Lori Person Chief Administrative Officer 8.1

24. Legislative Update Budget for FY2014/15 Sunset Advisory Committee Meeting (January 9) Adopted all recommendations Legislation Tracking 1,000+ total bills filed as of 1/31 62 bills related to DIR and/or technology in general Online tracking tool Legislative Recommendations Source: Biennial Performance Report Open Data Social Media Data Management (SB 279 Watson) Infrastructure Source: SB 988 Report Cybersecurity Source: Legislative Appropriations Request Cybersecurity Exceptional Items DIR Board Meeting | February 7, 2013 Legislative Update 2 8.2

25. Key Dates February 5Senate Finance Committee hearing March 8Deadline for filing bills May 2783rd Legislative Regular Session concludes June 16Last day governor can sign or veto bills September 1Beginning of fiscal year 2014 September 26Bills without effective dates become law DIR Board Meeting | February 7, 2013 Legislative Update 3 8.3

26. SINCE LAST BOARD MEETING Communications Leadership | Agencies | Institutions of Higher Education | Local Governments | K–12 Education | Citizens | Staff DIR Board Meeting | February 7, 2013 Legislative Update 4 STATE AGENCYLEGISLATIVESTAFF Fiscal Year-End Highlights 34% open rate 17% click-through rate ANNOUNCEMENT News for State Agencies 31% open rate 16% click-through rate Palestine Herald-Press Article Open Rate – N/A DIR Dialog 54% open rate 15% click-through rate 8.4