Rationale for Declaring Microsoft Exchange as the Statewide Server Software Standard

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1 Recommendation Rationale for Declaring Microsoft Exchange as the Statewide Server Software Standard Adopt Microsoft Exchange as the Statewide Server Software Standard with an appropriate exception process. Rationale for the Standard (Summary) By June 2011, 62% of the state s systems (33 of 53) and ~77% of the state s accounts (33239 of users) will be on Microsoft Exchange. Utilization of a single server software product at this level constitutes a defacto standard. A multi-agency effort to establish a Statewide Price Agreement for SaaS services is underway. Establishment of an server software standard prior to the release of the SaaS Services RFP is expected to simplify RFP requirements, streamline vendor proposals and evaluation team efforts, and lead to reduced cost and complexity of SaaS service provision into the future. Today, no uniform set of standards exist for system, addressing or user account management. Agency directory services solutions are not integrated with one another and cross agency calendar access on a statewide basis is not available. Agencies are forced to address their storage, e-discovery, archival, retention and security challenges on their own. An adopted server software standard is a foundational step toward addressing these issues, including the establishment of a common/integrated statewide calendar/directory service. By declaring a statewide server software standard, the state will be better able to leverage its purchasing power and negotiate software licenses and maintenance and support agreements as one enterprise with more favorable terms than any individual agency could receive on their own. In addition, establishing an server software standard simplifies hardware configuration and architecture investments and enables a common and consistent training regimen for state staff to be implemented, allowing streamlined, efficient training and skills development. Finally, according to recent guidance provided by Gartner, Inc.: Microsoft Exchange has about 70% of the market which in Gartner s view makes it the less risky vendor in the market. The market share lead means that there is there is greater availability of third party applications written for Microsoft Exchange as compared to any other vendor. The market share lead also means that there will be greater availability of IT personnel resources familiar with Microsoft Exchange as compared to any other vendor. There are more hosting/saas providers for Microsoft Exchange as compared to any other vendor, giving the state flexibility in provisioning choices. Microsoft itself has a very aggressively priced hosted/saas service for Exchange, again providing more flexibility for the state. The rationale for adopting Microsoft Exchange as the Statewide Server Software Standard is sound and should be pursued as soon as possible. Page 1 of 7

2 Current Environment (Overview) is a citizen s common gateway to services, the foundation for our mobile workforce and an essential tool for collaboration and communication across government at all levels. In a disaster situation, is second only to basic voice communications as the most heavily relied upon system during recovery operations. In short, and its reliable use is one of the most important functions any government IT organization undertakes. Oregon s current environment is fragmented. The environment is comprised of at least fiftythree (53) systems serving ~43,275 users that are independently operated and maintained by Oregon state agencies. As of October 2009, twenty-seven (27) of those systems utilize Microsoft Exchange, fourteen (14) utilize Novell Groupwise, eight (8) utilize flat-file protocols (POP3, IMAP, etc.) and, four (4) Microsoft Exchange based systems are provided by a third-party Software as a Service (SAAS) vendor. Conservatively, more than ninety (90) servers (79 owned or managed by the DAS State Data Center ~ 61% of which are >4 years old) and more than one-hundred (100) state staff are currently involved, on at least a part time basis, in supporting those 53 systems. Note: See more detailed information on the current statewide environment (Page 6 & 7) Catalysts for Change Oregon Department of Human Services (DHS) Migration from Groupwise to Exchange DHS is the largest user of Groupwise supporting 11,628 users. DHS has made a decision to migrate from Groupwise to Microsoft Exchange and that migration project is underway. When completed (by June 2011), of users (~74%) will be served by MS Exchange-based systems. Utilization of a single server software product at this level constitutes a defacto standard. Software as a Service (SAAS) Existing Contracts: four (4) agencies (Revenue, Water Resources, Watershed Enhancement Board, Energy and Oregon Business Development Department) have executed independent contracts with the same SAAS provider. The Department of Energy is scheduled to complete it s migration in Q All five agencies are using Microsoft Exchange. However, each agency has independent contracts, independent and unique service level agreements and independent (nonintegrated) Active Directories. When the user counts from those five (5) agencies is added to the total users supported by Microsoft Exchange increases to of users (~77%). At this point in time, thirty-three (33) of fifty-three (53) systems (~62%) will be on the Microsoft Exchange platform further strengthening the rationale for declaration of a standard. SaaS Services Statewide Price Agreement: A multi-agency effort to establish a Statewide Price Agreement for SAAS services is underway. A statement of work and system/service level requirements will need to be in place prior to Request for Proposal Release. To ensure consistency of service offerings, service levels, and streamlined contract administration, the RFP will be focused on obtaining the services of a few (preferably one) provider (s). Page 2 of 7

3 When ~77% of the users and ~62% of the existing systems are expected to be supported by Microsoft Exchange, it does not appear to be prudent/warranted to require proposing vendors to provide multiple type service offerings (i.e. Microsoft Exchange, Groupwise, Open Source/Other), unless that approach is a precursor to migration from those other types to Microsoft Exchange/outlook. In addition, the establishment of a common calendar and directory service is a key goal of all state agencies. To guard against the proliferation of independent active directories by the SaaS provider, RFP requirements will need to be developed to ensure that a common calendar and directory service is established by the SaaS vendor for customer agencies and/or integrated with an on-premise common calendar/directory service that the state provides at some point in the future. The vendor cost proposals will likely increase if the RFP requires vendors to establish a common calendar/directory service that must integrate with multiple server software types for an unknown period of time into the future. An adopted server software standard is a foundational step toward the establishment of a common/integrated statewide calendar/directory service. Further, establishment of an Server software standard prior to the release of the SaaS Services RFP is expected to simplify RFP requirements, streamline vendor proposals and evaluation team effort, and reduce the overall cost and complexity of service provision into the future. Complexity, Operational Requirements, Resource Constraints Each of the agencies that manage the 53 systems currently in use are independently responsible for: Directory services (user/server authentication and addressing) account management (user account - add, move, change, delete) Server (provisioning and lifecycle replacement) and software licensing Calendaring Remote and mobile messaging services Storage, e-discovery, archival, and retention Security (password management, anti-spam, anti-virus, server/client system patching, etc.) Today, no uniform set of standards exist for system, addressing or user account management. Agency directory services solutions are not integrated with one another and cross agency calendar access on a statewide basis is not available. Agencies are forced to address their storage, e-discovery, archival, retention and security challenges on their own. Finally, because resources and capabilities (budget, # of IT staff, IT staff expertise, etc.) vary dramatically across the agencies that operate and maintain the state s 53 systems, the entire complement of related services are implemented, managed, and supported in an inconsistent and non-uniform manner. One of the key first steps in addressing these issues involves the establishment of a Statewide Server Software Standard. Page 3 of 7

4 Opportunities Software Licensing and Maintenance and Support Agreements By declaring Microsoft Exchange as a Statewide Server Software Standard, we will be better able to leverage our purchasing power and negotiate software licenses and maintenance and support agreements as one enterprise with more favorable terms than any individual agency could receive on their own. As a component of the total cost of ownership for services, this translates to a benefit (lowered cost of software acquisition, maintenance, and support) which would be more difficult in the absence of a declared standard. It is also possible that cost avoidance will be realized through the streamlining of decision-making related to purchasing by focusing agency and State Procurement Office staff on the establishment of contracts for the purchase of one vs. many software products and maintenance and support agreements. Technical Considerations Technically speaking, there are both generic and software-specific aspects to the establishment of a statewide server software standard. Generically, the use of a single software supplier allows IT professionals to focus their deployment, development, maintenance and architectural efforts. Outlined below are several complementary technical issues that support the declaration of Microsoft Exchange as the Server Software standard for Oregon. Hardware physical aspects of (includes desktop computers, servers, mobile assets, etc.) Conservatively, more than ninety (90) servers (79 owned or managed by the DAS State Data Center ~ 61% of which are >4 years old). Establishing an server software standard simplifies configuration and architecture investments. Staff within the State Data Center can focus on establishing common configurations and server system deployments for . Lifecycle replacement and server virtualization decisions can be made based on clear direction that a declared standard provides. The hardware components will be familiar to personnel who must deploy them (within and beyond the borders of the SDC), which will make it easier to deploy optimized configurations, based on shared experiences both within and between agencies. Personnel the human aspect of management More than one-hundred (100) state staff are currently involved, on at least a part time basis, in supporting the state s 53 systems. A common and consistent training regimen can be implemented, allowing streamlined, efficient training and skills development Skill sets are more interchangeable and can be developed at one agency and shared at other agencies more easily. This will greatly improve and standardize administration/support across state government. Limiting software versions, patches and upgrades to one software vendor will allow for better scheduling and control, which will simplify software maintenance and deployments. Experiences and skill sets from one agency can be shared more easily during day to day operations and during system upgrades/software version migrations. The extensive availability of Microsoft Business partners, consulting services, and trained administrators is a definite advantage. Page 4 of 7

5 Interoperability Today, agencies (or a SaaS vendor on an agency s behalf) operate and maintain fifty-three (53) systems. Each of the 53 systems is assumed to have an independently managed directory service. Agency directory services solutions are not integrated with one another and cross agency calendar access on a statewide basis is not available. A single server software environment will enable improved interoperability and the cost efficient and effective establishment of common/unified calendar and directory services (of both onpremise and off-premise systems). Market share (Third-party Assessment) According to recent guidance provided by Gartner, Inc.: Microsoft Exchange has about 70% of the market which makes it the less risky vendor in the market. The market share lead means that there is there is greater availability of third party applications written for Exchange compared to any other vendor. The market share lead also means that there will be greater availability of IT personnel resources familiar with Exchange compared to any other vendor. There are more hosting/saas providers for Exchange compared to any other vendor, giving the state flexibility in provisioning choices. Microsoft itself has a very aggressively priced hosted/saas service for Exchange, again providing more flexibility for the state NOTE: More detailed information on the current statewide environment is provided on the next two pages. Page 5 of 7

6 Background A report entitled The Value Proposition for Enterprise and Related Services was delivered to and accepted by the CIO Council in mid-october The report was created by the CIO Council sponsored Enterprise Value Proposition Workgroup. The Workgroup, led by Albert Gautier, Chief Information Officer for the Oregon State Police, was comprised of representatives from Oregon State Police, the Department of Administrative Services (DAS) State Data Center, and the DAS Enterprise Information Strategy and Policy Division. The Workgroup findings are below: Statewide Environment (Current State) Agency Systems Microsoft Exchange Novell Groupwise POP3, Other, etc. SaaS Provider (MS Exchange) Notes: 53 systems serving ~ users (90 servers identified) 27 systems serving ~20,207 users or ~ 47% of all mailboxes 8 systems support more than 1,000 users each o Largest systems: DOC , ODOT systems serve between 500 and 1,000 users each Remaining 16 systems serve less than 250 users each 14 systems serving ~17,028 users or ~39 % of all mailboxes 3 systems support more than 1,000 users each o Largest systems: DHS 11,628, OED system supports between 500 and 1,000 users (OPRD 721) Remaining 10 systems serve less than 500 users each Note: DHS is in the process of migrating to MS Exchange 8 systems serving 4807 users or 11% of all mailboxes 1 system (OJD) supports 2013 users 1 system (ODA) supports 303 users # of user accounts for each of the remaining 6 systems is unknown 4 systems serving 1273 users or ~ 3% of all mailboxes 1 system (Revenue) supports 857 users Remaining 3 systems support less than 200 users each When DHS migrates from Groupwise to Exchange of users (~74%) will be served by MS Exchange-based systems. That number rises to of users (~77%) when SaaS agency user counts from DOR, WRD, OWEB, and OBDD are added. Servers Software Licensing IT Staff supporting 90 Servers (79 owned or managed by the SDC 69 at SDC, 10 Remote) SDC Agency Server Costs/Mo (Est. $ at SDC, $ Remote) o Est. Annual costs ~ $560,000 (~$500K at SDC, ~$60K Remote) 48 of 79 SDC Servers are 4 or more years old (61%) Agencies purchase Groupwise and Exchange licenses individually SDC Hub Replacement project identified 116 agency contacts Assume there is at least a part time FTE for each of the 53 systems SDC staff is aware of a core group of ~ 27 agency staff focused on Page 6 of 7

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