Infrastructure Service Offerings UCLA IT Services

Transcription

1 Infrastructure Service Offerings UCLA IT Services June Draft -

2 IT Funding Structures Review A number of new IT systems and services UC Path, Faculty Information System, FSRP, Mobility, AP Recruit Significant restructuring of IT services data center, web hosting, web services, self service. New technologies have produced new kinds of services cloud, SaaS, IaaS, PaaS, NaaS, MWF, collaboration.. Restructuring is generating new needs HP computation, storage & networks, online, informatics, virtual organizations.. Regulation, compliance and policy are generating new requirements security, privacy, accessibility, consultation.. Funding structures have not been reconciled in recent times Committee ITPB Co-Chairs Jerry Kang and John Mamer CITI Co-Chairs Steve Olsen and Gary Strong CSG Co-Chairs Tom Phelan and Julie Austin Jim Davis Office of Information Technology Glyn Davies Academic Planning and Budget Jack Powazek Administration John Powers CAO School of Law Marcia Smith Office of Research Administration Andrew Wissmiller Information Technology Services TBD School of Medicine and Medical Center 2

3 Case Study #1: Shared IT Infrastructure (Fee for Service) Scope includes co-location, virtual servers, systems administration, storage, backup and disaster recovery Benefits: Provides IT infrastructure that is more productive, leaner, greener and cost effective Supports consolidation of data center / server room space and the transformation of legacy IT assets to modern private or public cloud type solutions Contributes to improved service levels, lower total cost of ownership, optimized power and cooling usage, higher resource utilization rates, increased operational efficiency and reduced information security risks Some benefits, like reduced utility costs under the current operating model, accrue to the campus overall and not directly to the customer base Funding Challenges: Requires significant initial investment (i.e., subsidy or venture capital) to develop and deploy Business and financial risks associated with capturing market share, achieving operational efficiencies, delivering quality services and pace of technology changes Time required to breakeven and achieve a sustainable or profitable revenue stream 3

4 Proposed Service Offerings Co-location Services Virtual Server Solutions System Administration Storage Services Backup and Restore Disaster Recovery / Business Continuity Desktop & LAN Support * Managed Network Services * Web & Content Management * * Not included in this business case 4

5 UCLA Server Room Survey The Survey: Survey data was collected for 81 rooms in 45 buildings from 31 organizational units and departments. Respondents to the survey were IT Directors and Managers. For presentation purposes, data has been summarized by five groups representative of the primary campus computing models: Office of Information Technology (OIT) server rooms managed by OIT Academic Units server rooms not managed by OIT that support 17 campus academic departments (College of Letters and Science, Professional Schools, Continuing Education / UCLA Extension, Graduate Division and University Library) (IT Services) - server rooms managed by IT Services Administrative Units server rooms not managed by IT Services that support 10 campus administrative units (Administration, External Affairs, Finance / Budget & Capital Programs, Student Affairs, Research, Athletics and ASUCLA) Health System server rooms managed by Medical (MITS) that support clinical care, research and administration (Ronald Regan, Santa Monica, Medical Plaza, Oppenheimer and School of Medicine) 5

6 Unit Rates for Estimated Annual Savings We estimate net savings in the categories below as our services are adopted by campus departments. Category Estimated Unit Rate Savings Notes Servers room space (sqft) $36 MSA non-payroll OpEx of $100K per year / 2,800 sqft Rack unit installed $14 $5,000 per rack / 36 average units used / 10 years Physical servers (Physical to Virtual) Virtual servers (Virtual to Virtual) $311 $285 Storage (TB) $302 - Lower hardware cost ($204) - Lower systems administration cost ($536): IT 80 svrs per FTE, 56 svrs per FTE (70% of IT Services) - 20% systems administration conversion rate - Lower hardware cost ($178) - Lower system administration cost ($536): IT 80 svrs per FTE, 56 svrs per FTE (70% of IT Services) - 20% systemss administration conversion rate - IT Services has more expense storage by $140 per TB, BUT has lower management costs due to centralization Network devices $1,030 - Network routers can be eliminated at local server rooms 6

7 Our business plan is predicated on the conversion of additional administrative and academic IT assets to common infrastructure services over the next five years Square Feet (Sqft.) 20,000 15,000 10,000 5,000 0 Server Room Space (Sqft.) Estimated Annual Growth: 0% Conversion: 25% over five years 15,530 15,530 15,530 15,530 15, ,165 2,071 2,977 3,883 Year 1 Year 2 Year 3 Year 4 Year 5 Departmental Conversion to IT Services Physical Servers 2,500 2,000 1,500 1, # Physical Servers Estimated Annual Growth: 2% Conversion: 25% over five years 1,815 1,851 1,888 1,926 1, Year 1 Year 2 Year 3 Year 4 Year 5 Departmental Conversion to IT Services Virtual Servers 1,500 1, # Virtual Servers Estimated Annual Growth: 4% Conversion: 15% over five years 1,214 1,262 1,313 1,365 1, Year 1 Year 2 Year 3 Year 4 Year 5 Departmental Conversion to IT Services Storage (TB) 8,000 6,000 4,000 2,000 0 Storage (TB) Estimated Annual Growth: 15% Conversion: 20% over five years 3,296 3,791 4,359 5,013 5, ,153 Year 1 Year 2 Year 3 Year 4 Year 5 Departmental Conversion to IT Services 7

8 Estimated Annual Savings Conversion of 15%-25% of academic and administrative department IT assets is estimated to result in campus savings of $1 million Campus Survey (2011) Quantity (Survey Data) Projected Annual Growth Target Market Share Est. Savings per Unit Est. Savings in Year Five Servers room space (sqft) 15, % 25% $36 $138,661 Rack unit installed 5, % 25% $14 $24,853 Number of physical servers 1, % 25% $311 $152,784 Number of virtual servers 1, % 15% $285 $60,643 Amount of storage (TB) 2, % 20% $302 $347,844 Number of network devices % 15% $1,030 $96,196 Department Savings => $820,980 Estimated power savings due to colocation/virtualization $195,979 Campus Savings => $1,016,958 Power, $196K, 19% Storage, $348K, 34% Server room, $164K, 16% Servers & routers, $320K, 31% Other intangible benefits include the return of campus server room space for other uses, utilization of higher tier / more reliable data center infrastructure and the potential to redirect IT staff to other value-added activities 8

9 Interest in common infrastructure services is currently high Unit Status Co-location Virtual Servers Storage Systems Admin. Recent Conversion or Interest Academic Planning and Budget Current customer x x x CBIG co-located at MSA; using virtual services and systems administration Anderson School of Management Current customer x Co-locating to MSA rather than invest $250 in power and HVAC upgrades; expected to save +$100K over 10 years Ashe Center In Discussion x x Interested in co-location, virtual hosting and disaster recovery Center for East-West Medicine Current customer x Using virtual services, host 2 VMs Corporate Financial Services Current customer x Bruincard full rack co-located at MSA Department of Atmospheric & Oceanic Sciences Pilot Project x x Testing virtual data center service under a pilot program Department of Humanities Current customer x x Using virtual and sys admin services; host VM for the Scandinavian project Department of Life Sciences Current customer x x Using virtual and sys admin services; host 5 VMs Department of Mathematics In Discussion x Faced with HVAC upgrade costing around $100K; interested in co-location Facilities Management In Discussion x x Moving BruinAlert from Facilities to MSA; hardware will be virtualized Film & Television Archive In Discussion x x Interested in storage offering and some professional services Housing & Hospitality Services Current customer x ESX hosts and SAN installed at MSA; planning to move additional servers Howard Hughes Medical Institute In Discussion x Interested in co-location Institute of American Cultures Current customer x x x Using virtual services; host 2 VMs; Chicano Studies also interested in storage Library Current customer x x x x Currently use co-location, VM and storage services; will be managing over 300 TB of storage with replicated copy at UCB Police Department In Discussion x x Interested in third party application hosting for other UC police departments School of Law Pilot Project x Currently testing virtual data center service under a pilot program School of Theater, Film and Television Current customer x x Using virtual services; host 2 VMs University Extension (UNEX) Pilot Project x x x Volunteer Center Current customer x Currently host VM Interested in co-location, virtual sever and storage services; currently piloting virtual data center 9

10 Campus-Wide Impact Cumulative campus benefits: $2.6 million over five years with annual savings of $1 million starting in year five Year 1 Year 2 Year 3 Year 4 Year 5 Department Savings Utility Savings (Campus) Utility Savings (Cumulative) Total Savings (Cumulative) 10

11 Funding Request The launch of common infrastructure services requires an investment of $1.9 million over five years for additional infrastructure capacity ($0.8 million) and support staff ($1.1 million) 1.0 $ millions Year 1 Year 2 Year 3 Year 4 Year 5 Hardware/Software Operations Support Funding Request 11

12 Business Plan Funding Request: $1.9 million over five years Campus Benefits: $2.6 million over five years, $1.0 million annually starting year five Operations: Revenue of $2.5 million, surplus of $35K starting year five ($ in millions) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Funding Request Hardware/Software 567,070 56,080 46,404 73,923 75, ,559 Operations Support 315, , , , ,076,691 Net Funding Request 882, , , ,731 75, ,895,250 Cumulative Funding Request 882,591 1,307,126 1,641,437 1,820,168 1,895,250 1,895,250 1,895,250 0 Campus Benefits 74, , , ,400 1,016,958 1,067,806 1,121,197 4,751,618 Cumulative Benefits 74, , ,256 1,545,657 2,562,615 3,630,421 4,751,618 Campus Benefits - Net of Funding -808, , , , ,876 1,067,806 1,121,197 2,856,368 Operating Cash Flow 0 Revenue 160, ,594 1,081,233 1,762,602 2,521,522 2,521,522 2,521,522 11,101,946 Operating Costs -476, ,050-1,369,140-1,867,410-2,486,038-2,486,038-2,486,038-12,072,183 Staff Expense -288, , , , , , ,011-4,663,061 Other Expense -188, , ,909-1,194,065-1,574,026-1,574,026-1,574,026-7,409,122 Net Operating Surplus/Deficit -315, , , ,808 35,485 35,485 35, ,237 12

13 Return on Investment Requested funding over five years: $1.9 million Campus-wide benefits over five years: $2.6 million Break-even point is 4.3 years Discounted break-even is 4.4 years (using weighted cost of capital of 2.38%, 2011 STIP rate) Net Present Value (NPV) is $530K with internal rate of return (IRR) of 17% over five years $ millions Break-even: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Cumulative Funding Cumulative Campus Benefits 13

14 Operating Cash Flow Year Five: Revenue $2.52M, Cost $2.49M, Surplus $35K Over five years, we expect to improve our efficiency and have an operating surplus of $35K by year five $ millions Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Cost Net 14

15 Use Case #1 Anderson Graduate School of Management By moving their servers to MSA, Anderson is expected to save $194K over five years and $272K over 10 years The Anderson School of Management was faced with upgrading the HVAC systems in their server room at a cost of $250K. Rather than investing in a new HVAC system, they opted to leverage the existing campus facility at the MSA data center. As a result of this move, Anderson will be decommissioning their server room and will eliminate the need to incur annual maintenance costs for facilities related items such as UPS batteries, HVAC and fire suppression. The school will also no longer incur maintenance expense and the eventual replacement costs for their network switch. There may also be additional benefits related to converting the 414 square foot server room to other uses for the school and reducing staff time needed to manage server room facilities and network equipment. $300K $250K $200K $150K $100K $50K $0K $600K $500K $400K $300K $200K $100K $0K Annual Expense (cash flow) HVAC & Facilities Upgrade Stay at current server room $314K $120K New Cisco Swit ch Cumulative Expense Over 5 Year and 10 Years Colocation at MSA $483K $211K Stay at current server room Colocation at MSA 15

16 Use Case #2 Academic Planning and Budget Server virtualization and resource optimization will save APB $12,097 annually or $60,485 over five years IT Services has been hosting and managing servers for the Campus Budget Information Gateway (CBIG). The annual costs for physical servers and operating system were $28,784 or $143,000 over five years. Annual Server Expense Annual Expense Savings ($) Savings (%) Physical Servers $28, Virtual Servers $21,679 $7,105 25% Virtual Servers with Resource Optimization $16,687 $12,097 42% We recently virtualized all but one server. CBIG s annual server costs were reduced by 25% or $7,000 to $21,679. We subsequently did an analysis of resource utilization and identified that a number of servers were underutilized. We adjusted the allocated resources (CPU and RAM) and costs for CBIG servers will be further reduced to $16,687. $35,000 $30,000 $25,000 $20,000 $15,000 $28,784 $21,679 $16,687 This is 42% lower than the cost of physical servers and an additional savings of about $5,000 per year simply due to the resource optimization performed by IT Services. $10,000 $5,000 $0 Physical Servers Virtual Servers Virtual Servers w/ Resource Optimiation 16