Presentation to Joint Legislative Oversight Committee on Information Technology

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1 Presentation to Joint Legislative Oversight Committee on Information Technology George Bakolia State October 15,

2 Topics Update on Western Data Center Electronic Document Pilot ITS Operational Excellence Program Bulk Purchasing Savings 2

3 IT as a utility IT is a utility, just like electricity, paper and a telephone Cannot conduct business without IT, either in government or private sector Cannot educate students, or provide good jobs, or recruit industry, without IT That includes a strong infrastructure, including broadband access 3

4 Western Data Center Three primary reasons General Assembly approved second data center in Rutherford County in 2006: Improve disaster recovery Build state s IT infrastructure by increasing operational capacity Keep taxpayer dollars in NC Tight deadline: SunGard contract for disaster recovery services in Philadelphia ended June 30, 2008 Made deadline; completed very successful disaster recovery exercise mid-june More agencies participating than ever 4

5 Timeline October 2007 Took possession of building and began installation of telecommunications and computing infrastructure services November 2007 Began recruiting for shift operations staff with the WDC Data Center Manager and WDC Facilities Manager January-July 2008 Hired 10 state employees, bringing total to 11; awarded contracts for security services (12 people) and janitorial services (3 people) 5

6 Timeline Goal is to fill all 22 approved positions by December and begin 24X7X365 staffing. Very good success obtaining high quality candidates, with majority from Rutherford County February 2008 Completed installation of base network services and server infrastructure May 2008 Completed installation of all required services for the disaster recovery test 6

7 Disaster Recovery Test June 16-19, 2008 Disaster recovery test with 15 agencies participating, the highest number ever Restored the ITS mainframe and non-mainframe network connectivity and tape robotics (about 30 ITS staff, including some from Raleigh) Exercised procedures and communications for recovery of ITS Service Desk operation in Raleigh Restored and tested applications of the participating agencies 7

8 Disaster Recovery Test Conducted security reviews and vulnerability testing of participating applications Compliance auditor participated in the exercise and reviewed ITS performance Lessons learned included: Managing tape replication across two data centers Using virtual server technologies for disaster recovery systems Building a dedicated disaster recovery network for test purposes 8

9 Post-Test Activities E-procurement backup moved to Western Data Center in August BEACON back-up scheduled to move first quarter of 2009 Office of State CIO created and filled two positions to help functional areas of BEACON Also hosting applications for Crime Control and Public Safety, the Department of Public Instruction and the Department of Environment and Natural Resources 9

10 Value to State Cost of Western Data Center -- $32.5 million Cost of new Student Union at UNC-Charlotte -- $65 million Both will provide lasting value to the citizens of North Carolina Western Data Center drawing attention from other states; being used by local economic developers 10

11 Value to State ITS staff provided information and a tour of the data center to one economic development prospect. ITS played a key role in convincing a prospect that Rutherford County would be a good site For full value to be realized, Western Data Center and Student Union must be utilized Full utilization of Western Data Center may require a little more effort Conducting study of agency back-up plans, as required by provision in budget During budget deliberations next year, hope General Assembly encourages all branches of government to take advantage of the facility 11

12 E-document pilot Budget provision in the past session directed State CIO to pilot a statewide electronic document management system with digital signature capability Pilot must develop program requirements, including policies and procedures for managing and preserving electronic records. Met with Cultural Resources and Secretary of State s office to discuss roles and oversight expectations 12

13 E-document pilot ABC Commission selected for pilot Already implementing an electronic document management project Technical capability to do pilot Project timelines in line with pilot legislation ITS obtaining pricing information on digital signature and forms products Will provide report by April 1, 2009, as required by budget provision 13

14 Operational Excellence Program Decided in 2005 to begin an Operational Excellence Program for IT services Based on ITIL (Information Technology Information Library), an internationally-recognized service management framework Primary goal: shift ITS from technology-centric organization to customer- and process-centric one 14

15 Operational Excellence Program Training for ITS and other agencies a key element, so all talking the same language More than 1,000 people trained in basics; advanced training to more than 200 The program is showing results: The Mean Time To Resolve incidents within service levels improved from 41 percent to 90 percent Successful changes improved from 47 percent to 99.9 percent. The backlog of incidents more than 7 days old dropped from 123 to

16 Operational Excellence Program We also showed improvements in efficiency, productivity and workload from 2005 to 2007, according to a Gartner benchmarking study we did last Fall. I anticipate another benchmarking study next year. 16

17 Bulk Purchasing Savings Remember the cost of the Western Data Center? $32.5 million. Saved more than that over the past four years on PC and printer purchases How? Simply aggregating purchases of PCs and printers to take advantage of volume purchasing 17

18 Bulk Purchasing Savings $33.6 million in savings -- off the contract price, not retail A record 29 agencies participated in April September purchase 3,049 desktops 1,637 laptops State term contract price $6.5 million Final bid price -- $3.4 million Savings -- $3.1 million 18

19 Spending Dollars More Wisely Bulk purchasing and Western Data Center show benefit of spending IT dollars wisely NC not necessarily spending too much on IT Not always spending IT dollars wisely to gain the most value for citizens 19

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