1 City of Alexandria, Virginia MEMORANDUM DATE: APRIL 18,2014 TO: THROUGH: FROM: SUBJECT: HONORABLE MAYOR AND MEMBERS OF CIT RASHAD M. YOUNG, CITY MANAGER NELSIE L. SMITH, DIRECTOR, OFFICE OF AGEMENTANDBUDGET~ BUDGET MEMO #24: NETWORK OPERATING CENTER "NOC" mstification This memorandum is in response to the requests of Council members Wilson and Chapman regarding the proposed relocation of the City's Network Operations Center (NOC) and information on the cost effectiveness of utilizing a private data management and storage facility, commonly referred to as a co-location site, to host the City's data. For reasons detailed in the following, there is a compelling need to immediately address issues related to the current NOC. Staff has proposed a $6.5 million capital improvement project to construct a City-owned and operated data operations facility. The development of this facility will provide a long-term solution to current and future issues related to the management and storage of City data. However, staff recognizes that rapidly changing technology and industry trends may potentially offer options for a similar outcome at lesser capital expense. Staff continues to explore these options and is working to understand the implication of employing alternatives. Once a thorough assessment of options is complete and prior to any commitment of construction funding, staff will provide Council with additional information and specifics on this project. Current Network Operations Center Issues The NOC houses equipment which supports and manages the City's mission-critical data infrastructure. Equipment located in the NOC provides for the management and storage of data which supports some facet of nearly every City operation or service. The NOC is currently located in leased space at 123 N. Pitt Street and consists of240 individual pieces of equipment including routers, firewalls, switches, telecommunications core equipment (YOIP), physical servers, two data storage arrays and various network appliances. Proper care and protection of this equipment requires sufficient cooling, redundancy of power source, immediate fire suppression and appropriate equipment spacing. Staffhas proposed to relocate the existing NOC from its current location to the Public Safety Center on Mill Road. The proposed relocation results from ongoing issues with HY AC systems within the leased space which impede the City's ability to effectively manage the temperatures of the NOC. Given the very high heat generation of data equipment, a sufficiently cooled environment is needed for NOC equipment to properly function. Unfortunately, optimal temperatures for NOC equipment operation have been observed to result in moisture condensation
2 within the structure of the building housing the NOC. The building's landlord has expressed concerns that condensation in the building, combined with the significant floor weight load of our equipment, is degrading the structure of the building. The landlord is asking we remediate the problem immediately. Both ITS and General Services have determined that the only effective way to mitigate building damage is to raise temperatures in the NOC (less cooling of the space). However, this risks the viability and longevity of our data management and storage equipment. General Services and ITS have been working with the building landlord for more than a year to address the concerns of the landlord while still ensuring the NOC equipment is not placed at undue risk. A variety of options for maintaiping the NOC in its current location have been explored, however the leased space housing thenoc is not adequate for its current use. As a result there is not a mutually satisfactory alternative that permits the NOC to continue to operate in its current location without significant risk to either building structure or City equipment. In order to successfully address the NOC location issues, staff has proposed a new, City-owned facility be constructed. The project is estimated to cost $6.5 million which includes both construction of space specifically designed to house a NOC, and the equipment necessary for operations. Staff contends a City-owned facility is preferred over a contracted co-location operation. A City-owned facility would allow maximum flexibility in managing the asset for current and future needs, provide the City complete operational control over our core data infrastructure, and long-term produce a more cost effective operation than would be realized with a contracted co-location arrangement. For comparison purposes, the following tables are provided to highlight the operational pros and cons for both a City-owned facility and a contracted co-location facility. Project implementation costs and long-term cost are included for both options. As noted, a private, co-location facility would require a contract with a private entity who would then assume responsibility for the City's data management, storage and security. BUILD NOC VS. CO-LOCATION OF NOC Build NOC at Mill Road Co-location of NOC Pros Cons Pros Cons City controlled, Significant start up Reduces initial investment Long-term, recurring readily accessible for investment for design and considerably cost updates, application construction management, etc. Easy access to Utilizes scarceproj ect Provider must assume all Lack of control over systems management resources to risks associated with day-to systems and oversee build-out and day operations standards implementation Ability to establish Reduced facility security Heightened security and Network latency can and enforce and fortifications due to fortification of facility cause performance operational standards multi-purpose use of designed for a single Issues building purpose Stability over NOC Improved access to Internet Restricted staff service providers access to facility Potential for Dependency on the
3 Build NOC at Mill Road Co-location of NOC Pros Cons Pros Cons secondary Noe internet for access to exchanges with other data (assuming non jurisdictions dedicated fiber) Scalability built in Limited control over allows for expansion increasing hosting at minimum costs costs Potential location for Requires secondary future municipal fibet lease agreements wit Head-End additional offsite location for backup Long-term cost effecti veness Allows choice for an enterprise private cloud option as backup COST ESTIMATES OF BUILD NOC VS. CO-LOCATION OF NOC BuildNOC Co-Location of NOC Item / Task Costs Item/Task Costs Estimated Facility Build-Out Costs (see Attachment #1) $3,174,000* Estimated Facility Build-Out Costs N/A Operating System! Application Monitoring $300,000 Hosting of Physical Servers $19,756 Cabling (fiber runs and data cables) $150,000 Shared Managed Firewall Services $3,810 Enterprise Architect - Subject matter expertise Hosting of Storage Space $12,000 for Enterprise Infrastructure (SANs, VMWare Active Directory, Windows Server 2012, P2V $196,000 Comcast 10 Gig Circuit* physical servers, identify redundancy options, $17,000 and UCS Blades/Switches) Professional relocation services $50,000 Professional Relocation Services $50,000 Subject matter expertise for network design/enterprise architect $175,000 IT Proj ect Management services $182,000 Storage Area network and backup environmen - installation, hardware, and configuration services to include design of redundancy at an $500,000 Contingency and Disaster Recovery $800,000 alternate location Core Network equipment (switches, etc.) $550,000 Core Network equipment (switches, etc.) $250,000 Network schematic (current and future) and as Subject matter expertise for network is inventory of Mill Road, Wheeler Ave, and $50,000 $175,000 design/ enterprise architect Pitt Street * See Attachment I for more detail of build-out costs
4 BuildNOC Co-Location of NOC Item / Task Costs Item/Task Costs Storage Area network and backup Telephone services environment - installation, hardware, and $140,000 relocation! design! imp lementation configuration services to include design of $500,000 redundancy at an alternate location Comcast - dedicated fiber for the NOC (assuming move to Public Safety $25,000 Dedicated fiber line to co-location facility $2,700,000 Mill Rd.) IT Project Management services $364,000 Contingency and Disaster Recovery $800,000 Estimated Total IT Costs $3,300,000 Estimated IT Costs $4,709,566 Total Implementation Costs $6,474,000 Total Implementation Costs $4,799,566 Estimated Annual Costs after Year 1 $348,000 Estimated Annual Costs after Year 1 $630,792 City-owned facility Leased facility Year Yearly Cost Total Cost Yearly Cost Total Cost* $6,500,000 Year 1 $4,709,566 $348,000 $6,848,000 Year 2 $630,792 $5,340,358 $348,000 $7,196,000 Year 3 $630,792 $5,971,150 $348,000 $7,544,000 Year 4 $630,792 $6,601,942 $348,000 $7,892,000 Year 5 $630,792 $7,232,734 $348,000 $8,240,000 Year 6 $630,792 $7,863,526 $348,000 $8,588,000 Year 7 $630,792 $8,494,318 $348,000 $8,936,000 Year 8 $630,792 $9,125,110 $348,000 $9,284,000 Year 9 $630,792 $9,755,902 $348,000 $9,632,000 Year 10 $630,792 $10,386,694 $348,000 $9,980,000 Year 11 $630,792 $11,017,486 $348,000 $10,328,000 Year 12 $630,792 $11,648,278 $348,000 $10,676,000 Year 13 $630,792 $12,279,070 $348,000 $11,024,000 Year 14 $630,792 $12,909,862 $348,000 $11,372,000 Year 15 $630,792 $13,540,654 $348,000 $11,720,000 Year 16 $630,792 $14,171,446 $348,000 $12,068,000 Year 17 $630,792 $14,802,238 $348,000 $12,416,000 Year 18 $630,792 $15,433,030 $348,000 $12,764,000 Year 19 $630,792 $16,063,822 $348,000 $13,112,000 Year 20 $630,792 $16,694,614 *The assumption of cost effectiveness after Year 8 assumes construction of a dedicated fiber link between the City's network and the co-location site at an estimated cost of $2.7 million. Without a dedicated fiber connection, an internet circuit is used for transmission of data from the co-location site to the City's network. There is some inherent risk to data reliability associated with utilizing a non-dedicated connection. If a dedicated fiber connection is not utilized, Year 1 costs of the co-location option are reduced to $2.09 million and cost effectiveness of the City-owned option is realized in Year 17.
5 Attachment I City of Alexandria Network Operations Center Budget- to PSC (ONLY) Cos t including Item/ Task Quantity freight ($) Extended Scalable M100 8 modules UPS 2 $ 50,000 $ 100,000 Geist / Opengate Air Management 12 $ 5,000 $ 60,000 Geist Monitoring System 1 $ 40,000 $ 40,000 Ceiling Mounted UPS Dsitribution Busway & Devices 1 $ 35,000 $ 35,000 Rack Smart PDU's 60 $ 1,100 $ 66,000 IT Racks by Opengate 30 $ 3,000 $ 90,000 Cable Tray 1 $ 10,000 $ 10,000 Surge Suppression Devices 1 Service 1 UPS Bus 2 $ 3,500 $ 7,000 Electrical installation 1 $ 225,000 $ 225,000 Mechanical Installation 1 $ 150,000 $ 150,000 Emergency Electrical Equipment (generator upsize and ATS) 1 $ 350,000 $ 350, Ton Air Cooled CRAC Unit 2 $ 50,000 $ 100,000 Chillers 1 $ 150,000 $ 150,000 UPS Output Transformer & Panels/Gear 2 $ 10,000 $ 20,000 FM200 1 $ 50,000 $ 50,000 Crane & Rigging 1 $ 3,500 $ 3,500 Commissioning & Testing/Load Bank 1 $ 15,000 $ 15,000 Project Management 1 $ 35,000 $ 35,000 GC Overhead & Profit 1 $ 170,000 $ 170,000 GC General Conditions 1 $ 200,000 $ 200,000 Engineering 1 $ 70,000 $ 70,000 Clean-up 1 $ 2,500 $ 2,500 Design Costs 1 $ 200,000 $ 200,000 MisclU nforseen 1 $ 200,000 $ 200,000 IT office space build-out 1 $ 780,000 $ 780,000 IT Furniture 1 $ 35,000 $ 35,000 IT Personnel Moving Costs 1 $ 10,000 $ 10,000 Total (move to PSC)»»»»»»»»»»»» $ 2,853,600 $ 3,174,000
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