0. Commonwealth of Massachusetts Statewide Strategic IT Consolidation (ITC) Initiative Bi-weekly Statewide Working Group Discussion Document
September 21, 2009
DRAFT – FOR DISCUSSION PURPOSES ONLY

2. IT Consolidation Working Group Meeting – Agenda1
Change Impact Assessment Results/Staffing Inventory 2
Report Outs:
Service Excellence
Detailed Infrastructure Consolidation Plan 3
Next Steps: High-priority Program Items

3. Change Impact Assessment Results/Staffing Inventories
Components of ITIL: Service Desk
Change Impact Assessment Results/Staffing Inventories

4. Compilation of Job Function Data
Thank you to everyone who helped with the data collection! Lots of hard work provided excellent results
Data from Secretariats was compiled and the following graphs show Commonwealth level analysis
Reflects preliminary data gathered and needs additional validation and refinement.
Some data is still missing:
IT Managers
Contractors
Upcoming validation steps will help drive to higher data accuracy
For 9/30 deliverables, data received to date will be used for infrastructure and Secretariat staffing plans
As data is validated, the new data will need to be incorporated in the staffing plans 4

5. Next Steps - Validations
Initial data validation by Subcommittee
Data validation with Secretariat CIO’s
Provide SCIO’s Secretariat level graphs and original data files
Request a second review of data based on analysis
Timing: Starting next week
Data Validation with NAGE and NAGE membership
Provide NAGE with compiled data
NAGE has said they may request job function validation with the employee
Timing: Begin after Secretariat review 5

6. Service Excellence Report Out2a
Components of ITIL: Service Desk
Service Excellence Report Out

7. 1 2 3 Agenda Chargeback Maturity Assessment and Recommendations Vision
Short-term Roadmap for Improvement 2
Mitigation Suggestions for IT Consolidation Start-up Costs 3
ITD ITIL Process Assessment and Recommendations
General Recommendations for Process Management
Roadmap for Improvement of ITD ITIL Processes

8. Vision for Chargeback – per the ISB Chargeback Subcommittee
Services that are standard, formally defined in a Service Catalog that customers can use for planning and ordering, segmented to accommodate different cost and service level expectations
Usage measurements and reporting that are fair, accurate and readily available; usage units that are effective in managing demand and encouraging cost-conscious consumption
Chargeback Administration that is streamlined, automated, and documented; customers can easily access their usage data and receive error-free invoices
Product Managers that take responsibility for the management of costs and the quality and evolution of their Services, able to adjust to changing demand while maintaining or reducing rates
Costs that provide the customer the best value for the services provided, comparable to other states
Customers feel valued, and understand their services and costs, with the assistance of Service Account Managers

9. Summary of Key Findings – Chargeback Maturity
Dimension
Assessment Findings (Gap)
Recommendations
Service Maturity
Services are broadly defined /not segmented by cost drivers or service levels
Catalog is newly published
Provide standard offerings with varying service levels and costs
Service Usage Management
Usage collection is manual
Inaccuracies are common
Customers only see their usage on the invoice
Establish Product Managers responsibility for the accuracy of usage for their services
Maintain monthly usage history for customers
Service Cost Management
Cost allocations are often not well-documented
Single-customer costs are sometimes included in cost pools
Update the Chargeback Process Manual for allocation rules and assumptions
Invoice customer-specific costs directly to that customer
Chargeback Administration
Largely manual back-office operations
Customers expectations regarding quality of information and service are low
Automate manual activity or standardize to make repeatable
Identify customer data needs and provide appropriate information monthly
Service/Cost Management
Product Managers do not take responsibility for managing pool costs and developing their services
Rate modeling and assumptions are not well documented
Customers do not feel valued
Provide role-specific training on Chargeback to Product Managers;
Establish protocols for Project Managers to manage costs and service evolution
Establish protocols for SAMs to proactively discuss services and costs with their customers

10. Short Term Roadmap for Chargeback Improvement
Legend:
Oct 2009
Apr 2010
Dec 2010
Dimension 2 3 4 5
2.7
3.5
4.0
Service Maturity
Service Usage Management
Service Cost Management
Chargeback Administration
Service/Cost Management
Develop standard products for different cost & service expectations
Customer-friendly catalogue pages
2.0
2.5
3.7
Automate/streamline usage collection
Product Managers are responsible for reported usage
Usage history online for easy customer access
2.3
3.0
3.7
Align costs to standard cost framework
Remove single-customer costs are from pools
Document all cost allocation assumptions
2.0
2.5
3.0
Identify information needs of customers
Automate/streamline manual activity
Provide for information needs of customers
2.0
2.7
4.0
Train Product Managers for Role
Monthly cost pool reviews
Models created for all service rates
Product Managers have plans for the evolution of their services

11. Potential Mitigation Actions for IT Consolidation Start-up Costs#
Description
Pros
Cons
Comments 1
Lease, rather than Buy
Review investment requirements for opportunities to lease rather than buy, to reduce FY2010 costs
Aligns some of the startup cost to match, in timing, the revenue coming in from consolidation
Will not help with all start up costs, if the items cannot be acquired on a lease basis, nor for additional labor costs
Executives are familiar with Tax Exempt Lease Program, and like the idea of not having to take the risk of the residual value of an asset. 2
Defer expenses wherever possible
In effect, moving expenses into FY2011
Current year savings fund current year investments, and the additional FY2011 revenue can fund the additional FY2011 costs.
Deferring expenses can result in a net higher cost, paid in FY2011 or later
This is done today for some telecom bills. 3
Secretariats Fund Startup Costs
Reach agreement with new Secretariats for them to absorb the initial startup cost.
Avoids first year startup cost bump for ITD
Continues in the same fashion as the existing practice with BARs
The Commonwealth still has an increase in cost for FY2010
Would exclude some Secretariats from participating in IT Consolidation that cannot or will not provide that funding.
Counter-productive, as it would discourage Secretariats from IT Consolidation 4
Replace Contractors with employees.
Many contractors have been engaged for years. They should either be converted to an employee, or replaced with an employee
Reduces Salary expense
Can accelerate the incorporation of Secretariat staff into ITD, per Consolidation
Risk of specific knowledge that will be lost with long-term contractors
Potential skill issue, due to Commonwealth salary scale
Of little value for ITD Chargeback, since most contractors in ITD are working on Capital projects.

12. Potential Mitigation Actions for IT Consolidation Start-up Costs#
Description
Pros
Cons
Comments 5
All investments should be to ITD Standards
Set or use the standard solutions in expanding the infrastructure, rather than buying to Secretariat preferred specifications
Lower operating cost when working with one or a few types of equipment and software
Potential procurement savings from aggregating volumes for standard components
Some Secretariat applications may not be supportable by the standards 6
Take savings from major procurement leveraging, such as Oracle ULA
Redirects savings that are windfalls for agencies and Secretariats
Savings will need to be identified and the value transferred, which is likely to be resisted. 7
Secretariats are now consolidating IT expenditures at the Secretariat level. The CCIO is supposed to be informed of expenditures over $200,000. Those expenditures should be reviewed for appropriateness given IT Consolidation, and as another source of funds.
Connect to consolidation at the Secretariat level.
Uses authority that already belongs to the CCIO.
Would prevent potential waste of resources.
A process to collect the information and perform the review does not exist yet.
Could make this an agenda item, or a report to be reviewed, at regular IT Consolidation governance meetings 8
Green Energy Credits
Could provide some funds from rebates
Not sure how valuable for a governmental entity, as tax benefits aren’t relevant

13. Potential Mitigation Actions for IT Consolidation Start-up Costs#
Description
Pros
Cons
Comments 9
Secretariats could replace contractors with employees
This has been a proven way of reducing costs
May help Secretariats lower labor costs, but no guarantee that these savings will go to assist IT Consolidation

14. ITD ITIL Process Maturity Assessment
Findings
Incident and Change Management are the strongest processes, however
The largest weakness for Incident Management is the fact that there is no central management of dispatched incidents.
Change Management suffers from an absence of a focus on Change success
Problem Management is limited to Major Incidents, and the focus is Reactive, on identifying the root causes of past major incidents, not on preventing future incidents.
Request Fulfillment suffers from not having separate procedures from Incident Management or Change, and no overall management coordination.
Asset & Configuration Management is fragmented, solely focused on Assets, with no overall management or coordination of the process. Spreadsheets are what the technical staff regard as authoritative.
Capacity Management is rudimentary, though there are activities, such as the reporting of resource utilization, that are a foundation to build upon.
Process Name
Current Score
Incident Management
1.8
Change Management
2.1
Problem Management
0.8
Process Name
Current Score
Request Fulfillment 1
Service Asset and Configuration Management
0.6
Capacity Management

15. Executive Summary: General Recommendations…
Desired Attributes and Outcomes
Establish Service Management
Key Performance Indicators (KPIs)
Regular management review meetings
Process ownership
Management by outcomes that are measurable
Support customer service focus and culture change
Change the Culture
Education
Frequent communications
Performance reviews and rewards tied to KPIs
Establish customer service focus
Change attitudes and behavior
Tie rewards to Service Management results
Integration with Secretariats
Combine process improvement with integration
Support transformations in operations in support of IT Consolidation
Increase Standardization of Services
Improve success of process and culture change
Improve IT Consolidation success
Revisit Technology Approach
Reassess E2E requirements
Ensure support of ITIL processes is part of requirements for platform tools
Avoid carrying over bad practices and workarounds for prior issues and design flaws
Support integration with secretariats

16. Roadmap for ITD Process Improvement
Legend:
Sep 2009
Jan2010
Jul 2010
Dec 2010
Process 1 2 3 4
Incident Management
Change Management
Problem Management
1.5
2.5
3.0
3 +
Revise Process and republish
Train staff on revised process
Institute central management of dispatched incidents
Institute regular review meetings of performance with improvement actions assigned as needed
OLAs support SLAs and are managed
Continuous Improvement Procedures based on KPIs
1.8
2.5
3.0
Revise process to focus on Change Results
Initiate Post-Implementation Reviews
Documented Change Planning & Testing Procedures for each technical team
Audit compliance with Procedures
Expand use of Configuration Mgt data now available
3 +
0.8
1.5
2.5
3.0
Initial trend analysis of Incidents
Formal Recognition of Problems
Major Incident RCAs done under Problem Management
Create Process Document
Train Staff on Process
KPI in place and performance is reviewed
Known Error database created and used
Known Error Database utilized for Incident Mgt
Process roles established, including lead on each technical team
Downward trend in number of Incidents

17. Service Asset & Configuration Management
Roadmap for ITD Process Improvement
Legend:
Sep 2009
Jan2010
Jul 2010
Dec 2010
Process 1 2 3 4
Request Fulfillment
Service Asset & Configuration Management
Capacity Management
1.0
1.5
2.2
3.0
Ensure E2E reflects promised completion time
Service Desk support role
Document the Process
Establish performance reporting by Service & Customer
Train on the Process
Defined workflows for each Service/Type of Request built into E2E
Automate request approvals to minimize manual nature of BAR process
0.6
1.5
2.5
3.0
Train on the Process
Institute cycle-counting to validate data accuracy
Formalize procedures for sub-sections of the process
Configuration documentation maintained for all platforms
Create overall process document
Mandate authoritative data repository
All technical platforms have configuration template documentation
Asset information is complete, process for updating is under control
Configuration relationships are documented
Software is also included in managed data
0.6
1.2
2.2
3.0
Train on the Process
Establish proactive review of capacity requirements
Establish KPIs for managing the process
IT Consolidation plans forecasts fully incorporated into Capacity Plan
Complete existing capacity reporting
Publish some standard units of capacity for services
Create Process Document
Complete standard units of capacity for services
Create Capacity Plan
Forecasting of capacity trends in place

18. Detailed Infrastructure Consolidation Plan2b
Components of ITIL: Service Desk
Detailed Infrastructure Consolidation Plan
Report Out

19. 1 2 3 Agenda Playbook approach to infrastructure consolidation
Building the infrastructure consolidation plan for data center services 3
Case Study

20. Building the Infrastructure Consolidation Plan
The Detailed Infrastructure Consolidation Plan consists of two main components.
The “playbook” which contains:
The process to build the detailed plan.
The repeatable “plays” to be executed with each application or family of applications that is consolidated. 1
The detailed plans by Secretariat which contain:
Timeline sequencing individual applications or families of applications.
The recommended consolidation approach and net change in hardware for ITD. 2

21. Approach to Infrastructure Consolidation – the “Playbook”
To achieve efficiencies in planning and execution, a “Playbook” approach incorporating the operational and technology consolidations is employed.
Phase 2
July 6 – Sept 30
Step 1:
Assess current environment and existing requirements
Step 2:
Develop infrastructure consolidation approaches
Primary responsibility
Secretariat
ITD
Joint
Step 3:
Define detailed infrastructure plan
Prioritize
Step 7:
Execute consolidations and stabilize environment
Step 9:
Refine capabilities
Step 8: Transition to operations
Step 4:
Build ITD base capabilities
Step 5:
Develop detailed Secretariat consolidation plan
Step 6:
Provision resources according to plan
This repeatable consolidation process is tailored to meet the needs of each of the technology threads for Data Center Services, Shared Enterprise ( ) Services as well as Network & Telecom Services.

22. Building the Consolidation Plan for Data Center Services
In steps 1 to 3 of the consolidation process, detailed infrastructure consolidation plan will be created from the repeatable playbook-based approach
Step 1:
Assess current environment and existing requirements
Step 2:
Develop infrastructure consolidation approaches
Step 3:
Define detailed infrastructure plan
Collected data allows ITD to understand each agency’s application profiles
Applications are mapped to migration models for servers/storage/BC/DR based on their individual characteristics.
ITD standard service offerings dictate the order of preference for each approach area 1 2
Agency Application Profile
Server Consolidation Models
Storage Consolidation Models
Disaster Recovery Model
Virtual to Virtual
Shared to Shared
Springfield <-> MITC
Supporting Servers and Storage
Physical to Virtual
Dedicated to Shared
MITC <-> Agency
Platform and Backend
Physical to Physical
Dedicated to Dedicated
Springfield Only
Operations and Support Profile
Lift and Shift
Lift and Shift
MITC Only
Configure Options Supporting ITD Solutions
The migration approach for each application is supported by a standard set of ITD solutions 3
Service Level / Service Delivery Model
Security Requirements
Network Requirements
Facilities Requirements

23. P2V Server Consolidation Approach Process Flow
The following outlines the rules of engagement for the consolidating an agency application that is migrating from a physical to a virtualized environment.
Secretariat/ Agency
ITD Service Account Mgmt
Infrastructure Planning Group
ITD Hosting Operations
ITD Storage Operations
ITD Security & Network
ITD Facility Engineering
Key Documents*
ACS Application Consolidation Schedule
SABP System Architecture Build Plan
Agency Team
ITD SAM
IPG Members
Hosting Members
Storage & Backup Members
Network & Security
Facility Members
Review the Service Catalog choosing an existing ITD service offering utilizing standard policies
Work with Secretariat / Agency to complete BAR with service targets.
Service Catalog must be continually updated with new standard service offerings when economies of scale can be found. In an optimum position, the majority of offerings should meet the agency needs and unique agency configurations should be minimized.
Legend
Process Activity
Governance Activity
Create a detailed migration schedule for the agency’s application
Wiki Page
ACS
Key Documents
Off-page Connector
Create technical and process requirements for application instance
Load and execute performance discovery tool
Key Decision Point
SABP
Metrics and Estimates
Iterative Process
Validate sizing for server containers and storage
Update capacity plans as appropriate
SABP
Configure server containers
Allocate storage
Configure network routes
Identify firewall/security requirements
Validate security zoning for application
Build / transfer application
Set network restrictions per security model
Post Build

24. P2V Server Consolidation Approach Process Flow (cont.)
The following outlines the rules of engagement for the consolidating an agency application that is migrating from a physical to a virtualized environment.
Secretariat/ Agency
ITD Service Account Mgmt
Service Desk / NOC
ITD Hosting Operations
ITD Storage Operations
ITD Security & Network
ITD Facility Engineering
Key Documents*
ACS Application Consolidation Schedule
SABP System Architecture Build Plan
Agency Team
ITD SAM
SD Members
Hosting Members
Storage & Backup Members
Network & Security
Facility Members
Plan & Build
Legend
Integrate ITD and Secretariat operational processes
Process Activity
Governance Activity
Wiki Page
Conduct load and User Acceptance Testing
Schedule backups
Key Documents
Off-page Connector
Configure Disaster Recovery replication (As required)
Key Decision Point
Metrics and Estimates
Go Live
Conduct Operational Readiness Testing
Update Asset & Config Mgmt DB
Iterative Process
Stabilize and transfer to operations
Decommission old instance

25. Data Center Services Consolidation Overview
Applications and underlying infrastructure will be aligned to the consolidation waves as they were defined in Phase 1 of the IT Consolidation initiative and based on prescribed playbook approaches.

26. Immediate Action Items4
Immediate Action Items
Action Item
Owner
Priority
Due Date
Create distribution lists in the GAL
SCIOs
High
9/1 (Overdue)
Gather any outstanding IT Infrastructure Data
9/4 (Overdue)
Review and evaluate Change Impact Assessment Results for completeness and accuracy
SCIOs (or designate)
9/30