Eldred Central School District

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1 O FFICE OF THE NEW YORK STATE COMPTROLLER DIVISION OF LOCAL GOVERNMENT & SCHOOL ACCOUNTABILITY Eldred Central School District Virtual Desktops: Cost Savings and Energy Conservation Report of Examination Period Covered: July 1, 2008 March 30, M-81 Thomas P. DiNapoli

2 Table of Contents AUTHORITY LETTER 2 Page INTRODUCTION 3 Background 3 Objective 3 Scope and Methodology 4 Comments of District Officials 4 VIRTUAL DESKTOPS 5 APPENDIX A Response From District Officials 8 APPENDIX B Audit Methodology and Standards 10 APPENDIX C How to Obtain Additional Copies of the Report 11 APPENDIX D Local Regional Office Listing 12 DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY 11

3 State of New York Division of Local Government and School Accountability August 2010 Dear School District Officials: A top priority of the is to help school district officials manage their districts efficiently and effectively and, by so doing, provide accountability for tax dollars spent to support district operations. The Comptroller oversees the fiscal affairs of districts statewide, as well as districts compliance with relevant statutes and observance of good business practices. This fiscal oversight is accomplished, in part, through our audits, which identify opportunities for improving district operations and Board of Education governance. Audits also can identify strategies to reduce district costs and to strengthen controls intended to safeguard district assets. Following is a report of our audit of the Eldred Central School District, entitled Virtual Desktops: Cost Savings and Energy Conservation. This audit was conducted pursuant to Article V, Section 1 of the State Constitution and the State Comptroller s authority as set forth in Article 3 of the General Municipal Law. This audit s results and recommendations are resources for district officials to use in effectively managing operations and in meeting the expectations of their constituents. If you have questions about this report, please feel free to contact the local regional office for your county, as listed at the end of this report. Respectfully submitted, Offi ce of the State Comptroller Division of Local Government and School Accountability 2 OFFICE OF THE NEW YORK STATE COMPTROLLER

4 Introduction Background The Eldred Central School District (District) is located in the Towns of Highland, Lumberland and Tusten in Sullivan County and the Town of Deerpark in Orange County. The District is governed by the Board of Education (Board) which comprises five elected members. The Board is responsible for the general management and control of the District s financial and educational affairs. The Superintendent of Schools (Superintendent) is the chief executive officer of the District and is responsible, along with other administrative staff, for the day-to-day management of the District under the direction of the Board. The Superintendent also oversees the responsibilities of the Technology Director. The Technology Director is responsible for managing the District s information technology (IT) operations along with three other IT staff members. There are two schools in operation within the District, with approximately 710 students. The District s budgeted expenditures for the fiscal year are approximately $16.8 million, which are funded primarily with State aid and real property taxes. The District has four computer labs with a total of 79 computers. 1 The District intends to replace 30 computer stations each year for the next three years, which will result in upgraded computer equipment in three of the four computer labs. The computers in the first lab will be replaced during the summer of District officials have decided to replace the 30 traditional computers with virtual desktops. Virtual desktop technology allows multiple users to share a single computer. Each station in a lab becomes a virtual desktop and remotely connects to one computer. This is possible because today s computers are more powerful and the majority of applications use only a small fraction of a computer s capacity. Generally, a user does not need more than 3 to 5 percent of a computer s capacity. The virtualization software and hardware tap this unused capacity so that it can be simultaneously shared by multiple users. Each user s monitor, keyboard, and mouse connect to the shared computer through a small access device. By using virtual desktops, one computer can be used to provide computing services to multiple stations, as opposed to traditional computer labs that have a computer at each station. Objective The objective of our audit was to determine if there is any potential cost savings related to replacing traditional computers with virtual desktops. Our audit addressed the following related question: 1 A computer has a monitor (screen), central processing unit (CPU), a keyboard and mouse. DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY 33

5 Will the District achieve cost savings by incorporating virtual desktop technology in their computer labs? Scope and Methodology We examined the District s information technology costs for the period July 1, 2008 to March 30, We conducted our audit in accordance with generally accepted government auditing standards (GAGAS). More information on such standards and the methodology used in performing this audit is included in Appendix B of this report. Comments of District Officials The results of our audit and recommendations have been discussed with District officials and their comments, which appear in Appendix A, have been considered in preparing this report. 4 OFFICE OF THE NEW YORK STATE COMPTROLLER

6 Virtual Desktops In the current economic environment it is important for school districts to leverage cost savings opportunities. School districts have a responsibility to provide necessary services in a cost-effective manner. Necessary services include providing students with IT resources in order to improve educational content by allowing students access to computers and the internet. It is essential for school districts to actively seek opportunities for providing the same level of services at lower costs, which includes converting to new technologies that have equal or greater capabilities and cost less. As a part of their planning to replace 30 new computers in one of the District s computer labs in the summer of 2010, District officials researched the possibility of converting to virtual desktops rather than purchasing traditional computers. Officials decided to replace the first lab with 30 virtual desktops because of the potential cost savings and potential savings in service and maintenance time. Officials decided that if the District achieves cost and time savings with the first lab, then they would replace one additional lab per year with the virtual desktop technology until three labs have been equipped with 30 virtual desktops each. We found that the District will achieve $68,473 in cost savings over a three-year period by replacing their traditional computers with virtual desktops. Equipment Savings We estimate that the District will save approximately $21,300 in equipment costs for each lab that they replace with virtual desktops. The District has already purchased the equipment needed to set up one virtual desktop lab with 30 stations. This equipment includes one computer, 30 virtual access devices, and 30 monitors. The computer purchased to operate the virtual desktop lab cost $1,647, each access device cost $196, and the monitors cost $135, for a total of $11,577. If the District purchased computers for each station, instead of virtual desktops, they would pay $1,017 for each computer and $80 for each monitor, 2 for a total of $32, Energy Savings We estimate that the District will save approximately $2,250 in annual energy costs for all three computer labs. A single virtual access device consumes only five watts of electricity per hour while a computer unit consumes approximately 123 watts per hour. We estimated that a virtual desktop lab will 2 The District would receive a discount on monitors for purchasing them bundled with computer units. 3 This is based on the District purchasing the model computer they would have purchased if they had not purchased virtual desktops. DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY 55

7 consume approximately 4,700 kilowatt hours 4 less electricity per year than a lab with traditional computers at each station. We found that the District paid an average of 16 cents per kilowatt hour for electricity consumed from July 2008 to March Therefore, each lab that is replaced with virtual desktops will save the District approximately $750 per year. In addition, the annual energy savings for all three labs, approximately $2,250, would continue for as long as the virtual desktops are being used. Maintenance In addition to cost and energy savings, IT staff will also spend less time maintaining and servicing the District s computer labs because a virtual desktop lab will only have one computer to maintain and service. Alternatively, a traditional lab with computers at each station would have 30 computers to maintain and service. According to interviews with IT staff, it takes approximately two hours annually to service each computer. 5 To service an entire lab with virtual desktops would only take approximately two hours, while servicing a lab with computers at each station would take approximately 60 hours. After all three labs are replaced with virtual desktops, IT staff will have saved a total of 348 hours in servicing time and will continue to save 174 hours per year. Not only do labs equipped with virtual desktops cut costs and save time servicing and maintaining equipment, they also cut down on the amount of repairs and equipment failures because the virtual access devices do not have a central processing unit, memory, or any moving parts. According to the Director of Information Technology Customer Service for Palm Beach Community College, the college currently uses virtual desktop technology and it has only experienced problems with two access devices out of 500 that are in use. After all three labs are replaced with virtual desktops, we estimate that the District will have saved approximately $68,500 over a threeyear period in equipment and energy costs. 6 OFFICE OF THE NEW YORK STATE COMPTROLLER 4 Kilowatt hour is a unit of energy equal to 1,000 watt hours. The kilowatt hour is most commonly known as a billing unit for energy delivered to consumers by electric utilities. 5 Every summer IT staff service disassemble, clean, and re-image each computer.

8 Traditional Computer Lab Virtual Desktop Lab Annual Savings Cumulative Savings Savings Achieved By Converting To Virtual Desktop Technology Year 1 Year 2 Year 3 Equipment Costs $32,910 $32,910 $32,910 Energy Costs $805 $1,611 $2,416 Servicing Time (hours) Equipment Cost $11,577 $11,577 $11,577 Energy Costs $60 $119 $179 Servicing Time (hours) Equipment Cost $21,333 $21,333 $21,333 Energy Costs $745 $1,492 $2,237 Servicing Time (hours) Total Costs (Equipment and Energy) $22,078 $44,903 $68,473 Servicing Time (hours) By updating computer labs with virtual desktops instead of computers at each station, the District will be providing necessary services in a cost-effective manner. The District could purchase enough virtual desktop equipment for three computer labs with the same amount of money needed to purchase equipment for one traditional computer lab. The District will achieve significant cost savings and provide additional time for IT staff to complete necessary tasks other than servicing and maintaining computer labs. We commend District officials for taking this innovative step to save taxpayer money. DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY 77

9 APPENDIX A RESPONSE FROM DISTRICT OFFICIALS The District officials response to this audit can be found on the following page. 8 OFFICE OF THE NEW YORK STATE COMPTROLLER

10 DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY 99

11 APPENDIX B AUDIT METHODOLOGY AND STANDARDS Our overall goal was to assess the cost savings opportunities that could be achieved by replacing standard computer labs with virtual desktop technology. During this audit we examined and compared the purchasing costs and energy use of virtual desktops and standard computers used by the District from July 1, 2008 to March 30, To accomplish the objective of this audit, we performed the following procedures: We interviewed District officials to gain an understanding of the District s Technology Plan and the reasons why the District was converting computer labs to virtual desktop labs. We interviewed District officials and reviewed information provided by the vendor to gain an understanding of virtual desktop technology. We reviewed District purchase orders and invoices to determine the cost of virtual desktop technology. We reviewed product specification reports to determine the amount of electricity used by computers and virtual desktop access devices. We contacted the Director of Information Technology Customer Service for the Palm Beach Community College to determine if their organization has experienced any potential risks or problems from using virtual desktops. We reviewed electric utility invoices to determine the average cost of electricity for the District. We compared equipment costs of computers and virtual desktops to determine the total amount saved per lab through purchasing virtual desktops. We compared the energy consumed by computers and virtual desktops to determine the total amount of energy savings that would be achieved over the next three years. We interviewed District IT staff to determine the amount of time necessary to maintain and service computer labs and to determine the type of computer that would have been purchased if virtual desktops were not. We compared the time spent maintaining existing computer labs to the estimated maintenance time on virtual desktop labs to determine the amount of time saved per year by having virtual desktops. We conducted our performance audit in accordance with generally accepted government auditing standards (GAGAS). Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objective. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objective. 10 OFFICE OF THE NEW YORK STATE COMPTROLLER

12 APPENDIX C HOW TO OBTAIN ADDITIONAL COPIES OF THE REPORT To obtain copies of this report, write or visit our web page: Public Information Office 110 State Street, 15th Floor Albany, New York (518) DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY 1111

13 APPENDIX D OFFICE OF THE STATE COMPTROLLER DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY Steven J. Hancox, Deputy Comptroller John C. Traylor, Assistant Comptroller LOCAL REGIONAL OFFICE LISTING ALBANY REGIONAL OFFICE Kenneth Madej, Chief Examiner 22 Computer Drive West Albany, New York (518) Fax (518) Serving: Albany, Columbia, Dutchess, Greene, Schenectady, Ulster counties HAUPPAUGE REGIONAL OFFICE Ira McCracken, Chief Examiner NYS Office Building, Room 3A10 Veterans Memorial Highway Hauppauge, New York (631) Fax (631) Serving: Nassau, Suffolk counties BINGHAMTON REGIONAL OFFICE Patrick Carbone, Chief Examiner State Office Building, Room Hawley Street Binghamton, New York (607) Fax (607) Serving: Broome, Chenango, Cortland, Delaware, Otsego, Schoharie, Sullivan, Tioga, Tompkins counties BUFFALO REGIONAL OFFICE Robert Meller, Chief Examiner 295 Main Street, Suite 1032 Buffalo, New York (716) Fax (716) Serving: Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Niagara, Orleans, Wyoming counties GLENS FALLS REGIONAL OFFICE Karl Smoczynski, Chief Examiner One Broad Street Plaza Glens Falls, New York (518) Fax (518) Serving: Clinton, Essex, Franklin, Fulton, Hamilton, Montgomery, Rensselaer, Saratoga, Warren, Washington counties NEWBURGH REGIONAL OFFICE Christopher Ellis, Chief Examiner 33 Airport Center Drive, Suite 103 New Windsor, New York (845) Fax (845) Serving: Orange, Putnam, Rockland, Westchester counties ROCHESTER REGIONAL OFFICE Edward V. Grant, Jr., Chief Examiner The Powers Building 16 West Main Street Suite 522 Rochester, New York (585) Fax (585) Serving: Cayuga, Chemung, Livingston, Monroe, Ontario, Schuyler, Seneca, Steuben, Wayne, Yates counties SYRACUSE REGIONAL OFFICE Rebecca Wilcox, Chief Examiner State Office Building, Room E. Washington Street Syracuse, New York (315) Fax (315) Serving: Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, St. Lawrence counties 12 OFFICE OF THE NEW YORK STATE COMPTROLLER

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