W&M General Government. Phase II Budget Presentation. 25 April 2017

Transcription

1 W&M General Government. Phase II Budget Presentation 25 April 2017

2 Phone Transition (Project MUSIC) transitioning from decentralized and outdated phone systems to an integrated VOIP solution

3 Phone Transition (MUSIC) 3 transitioning from decentralized and outdated phone systems to an integrated VOIP solution Migrating Sites Granted Exception BCM400 LCD C POT A OLC C Network rewiring & bandwidth upgrades may be required depending upon site to support VOIP Unify Phone System - IBM Corrections Cisco OYA State Police Employment NB BME Avaya DEQ SDC BCM50 ODOT DHS/OHA ODVA DOJ Energy ROLM Revenue Dept. of Consumer & Business Srvs BON DOG AMI DOA BOLI MB OR Dept. of Fish & Wildlife Capitol Library Nortel Meridian Transition Goals ~27,000 phones transitioned Enterprise lifecycle management Enhanced functionality and performance End-to-End Outsourced Managed Service (IBM) 2010 Start of VOIP Needs analysis NOV 2013 Voice Ent. Solutions Initial Findings Report by Com Group,Inc. JUN 2014 RFP Issued JAN 2015 Intent to Award CenturyLinkfailed negotiation MAR 2015 RFP Awarded to IBM JUN 2015 IBM Contract Signed FEB st Site Migrated JAN ,037 Phones Migrated Needs Analysis RFP Implementation

4 Current Status of Project MUSIC migration status by subscribers and agency locations 4 Subscribers Migrated Agency Locations Migrated 20,037, 68% 9,363, 32% 200, 51% 190, 49% Complete Schedule TBD Complete Schedule TBD

5 Areas for Continuous Improvement execution, project management and training 5 Migration Process Overall, how satisfied were you with the migration process? 8.3% 16.0% 16.0% 30.0% 29.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Technical Architecture Very dissatisfied Somewhat dissatisfied Neither satisfied nor dissatisfied Somewhat satisfied Very satisfied Project Responsiveness Overall, how satisfied are you with the level of responsiveness from project MUSIC during the rollout? Project & Process Management 6.3% 12.9% 23.4% 20.9% 36.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very dissatisfied Somewhat dissatisfied Neither satisfied nor dissatisfied Somewhat satisfied Very satisfied Incident Management Training Overall, how satisfied are you with the training you received? 0 6.9% 14.5% 17.7% 25.8% 32.3% Training & Support Model 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% I did not receive training Very dissatisfied Somewhat dissatisfied Neither satisfied nor dissatisfied Somewhat satisfied Very satisfied Installation Did you have installation issues? % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No

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9 Sustainability Report-back on the Sustainability Initiative

10 ETS Sustainability Initiative 10 SDC networks; agency field office servers, networks & wireless; security; and WAN backbone Expenditures ($18.7 million)* Sustainability Metrics $4.0 million. state wide area (WAN) network and wireless 100% 90% % OF SDC ASSETS <5 YEARS OLD $4.2 million. security upgrades and enhancements $11.1 million. agency servers and field office networks 80% 70% 60% 50% 40% 50% 50% 43% 57% 38% 62% 24% 76% 22% 78% 30% $4.0 $4.2 $ % 10% 0% 20% 40% 60% 80% 100% WAN Security Agency Compute *estimates based on REFBS February 2017 Expenditure Projections 0% Oct-Dec 2015 Jan-Mar 2016 Apr-Jun 2016 Oct-Dec 2016 Dec-Mar2017 % Assets <5 Years % Assets >5 Years

11 ETS Sustainability Initiative 11 SDC networks; agency field office servers, networks & wireless; security; and WAN backbone DAS DCBS DHS DHS/OSH DOC DOR HCS ODF ODOT ODVA OED OHA OHCS OHLA OLCC OREA ORHIX OSP SDC Server Replacement Replaced Remaining Security Enhancements F5. Next Generation Firewall - modernizes environment, reduces network complexity, and quantity of equipment to be maintained by 80%. QRadar. Security information and event management (SIEM) - identifies security issues that affect state agencies through gathering, analyzing and presenting information. Viper. Upgraded Network Encryption (IPSEC) maintains site-to-site encryption for securely accessing the state network from remote sites - 16 agencies and 230 sites.

12 ETS Sustainability Initiative 12 looking ahead to Expenditure Limitation ($18.3 million) $4.2 million. encumbered to support WAN leases $4.8 million. encumbered to support compute leases Sustainability Funds. anticipated reductions ETS eliminated $9.1 million in services and supplies (S&S) as part of the Governor s Budget Sustainability funds represent just over 20% of the remaining S&S budget. Further reductions would put service delivery for agencies at risk and degrade capacity for completion of sustainability initiative $9.3 million. further replacement of aging equipment $4.2 $4.8 $9.3 0% 20% 40% 60% 80% 100% WAN Leasing Compute Leasing Equipment & Security

13 IT Finance SDC Rate Development and Rationale

14 SDC Rate Development recent studies, budget notes, analyses and benchmarking 14 Budget Note SB 5502 (2015) Data Center Services Rate Comparison NOVEMBER 2016 FEBRUARY 2013 Administrative Baseline Information Technology Benchmark Given the uncertainty involving which services Enterprise Technology Services will offer in the future... [the] SCIO shall recommend a new funding formula for ETS... JANUARY 2016 Public Financial Management. Benchmarking Analysis

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17 Non-Personnel Statewide IT Spending* 17 comparing non-personnel statewide IT spending (services and supplies) and SDC expenditures MILLIONS $800 $700 $600 $500 $400 $ $300 $200 $ $ $ $ $ $100 $ $ $ $ $ $ $ Actuals Actuals Actuals Actuals Actuals LAB Statewide IT Expenditures SDC Expenditures Linear (Statewide IT Expenditures) Linear (SDC Expenditures) * Limited to services and supplies account numbers: 4200, 4250, 4315, 4250, 4315, 4715, 5550, 5600 and pricelist estimates for SDC expenses included in 4225.

18 ETS Customer Utility Board (CUB) exists to provide DAS customers with a meaningful voice in the cost, type, quality, and quantity of utility services delivered 18 Kurtis Danka, ETS CUB Chair and Chief Information Officer, ODOT Rate Schedule Fixed Costs SDC Costs Agency Utilization Billing Metric

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20 Cost Allocation 20 ETS rates blend fixed and variable costs and fixed costs. e.g., the state data center facility, network core, utilities and long-term contractual agreements (includes both overhead and indirect costs) variable costs. costs associated with increased utilization of specific ETS services (includes both direct and indirect costs) pass though. costs incurred on behalf of an agency on a dollar-fordollar basis (e.g., SQL licensing) + = Blended ETS Rates

21 Rate-Setting the ETS CUB proposed a new rate and assessment methodology 21 CUB Leadership Perspective. Rate-setting. fulfilling the intent of the ETS CUB Charter Assessments. emphasis on use of assessments to increase predictability and reduce rate volatility Engagement. extensive engagement with agency stakeholders negatively impacted by changes IT Cost Transparency. visibility and increased control over spend = ETS Assessment ETS Budget Note. SB 5502 (2015) Given the uncertainty involving which services Enterprise Technology Services will offer in the future due to the ongoing IT Common Service Delivery review currently underway and concerns over management of ETS which has led to numerous outside reviews and audits, the Subcommittee agreed to only partially fund the Enterprise Technology Services budget requests for The State Chief Information Officer (SCIO), through the Department of Administrative Services (DAS), shall return during the 2016 legislative session to the appropriate subcommittee of the Joint Ways and Means Committee with recommendations on changes to ETS information technology services provided, which services it will no longer offer and state agencies will then be responsible, the budgetary impact of these decisions on state agencies, as well as DAS, changes in ETS operations implemented or considered as a result of outside reviews and audits completed by the time of the report, and timelines for additional changes to ETS services or operations being contemplated and how those could affect budgets, In addition, SCIO shall recommend a new funding formula for ETS that refocuses charges to state agencies on fees for service and deemphasizes the use of assessments which fund all positions regardless of reductions in services delivered, show how reductions in services purchased by state agencies would be reflected in reductions in operating expenses, and include price list adjustments needed for implementation of a new revenue formula at the start of second year of the biennium. = ETS Rates June ETS Budget Note September transfer of ETS budget and rate staff to DBS December Rebalance Request and Budget Note Report January Benchmarking Analysis by Public Financial Management November Data Center Services Rate Comparison by Gartner ETS CUB Rate Development ETS Rate Review Blended ETS Rate

22 SDC Rates 22 inconsistent methodologies, changing incentives and rate volatility Number of SDC Rates Over Time* Data Storage Rates Jul-09 1-Jul-10 1-Jul-11 1-Jul-12 1-Jul-13 1-Jul-14 1-Jul-15 1-Jul-16 1-Jul Jul-17 *excluding network charges $2.00 $1.80 $1.60 $1.40 $1.76 $1.76 Disk Storage - Tier 1 (Disk) Disk Storage - Tier 2 (Disk) Disk Storage - Tier 3 (Disk) Tape Storage - Tape - Tier 4 (On Site) Disk, Tier 1, Mainframe Disk, Tier 1, UNIX Millions $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 ETS LAB Budget vs Actual Expense Biennium Biennium Biennium Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Legislative Budget ODOT Expenditures $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- $0.80 $0.51 $0.22 $0.18 $0.56 $0.36 $0.44 $0.44 $0.29 $0.29 $0.13 $0.15 $0.11 $0.11 $1.18 $1.18 $1.07 $1.07 $0.82 $0.82 $0.69 $0.69 $0.63 $0.63 $0.53 $0.53 $0.14 $0.14 $0.04 $0.06 $0.04 $0.06 $0.35 $0.35 $0.17 $ Jul-09 1-Jul-10 1-Jul-11 1-Jul-12 1-Jul-13 1-Jul-14 1-Jul-15 1-Jul-16 $0.15 $0.15 $0.02 $0.02 $0.03 $0.02 $0.03 $ Jul Jul-17 Disk, Tier 1, Windows/Linux Disk, Tier 2, UNIX Disk, Tier 2, Windows/Linux Disk, Tier 3, Windows/Linux Local Attached Windows/Linux Backup, Tier 4 Backup, I-Series Tape, Mainframe Service Enterprise Storage Local Attached Storage Mainframe Storage Backup Services

23 SDC Mainframe Rates 23 the impact of mainframe rate volatility on ODOT ODOT MAINFRAME DATA USAGE (GB) ODOT MAINFRAME SPENDING ($) 12,000 Batch CICS DB2 TSO Linear (Batch) Biennium Biennium Biennium $1,200,000 Batch CICS DB2 TSO Biennium Biennium Biennium 10,000 $1,000,000 8,000 $800,000 6,000 $600,000 4,000 $400,000 2,000 $200,000 - Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 $0 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17

24 where do we go from here?