Business Plan Version 3

Business Plan Version 3 January 24, 2014

Executive Summary The OTech is proposing a service offering named CalCloud. CalCloud is an on-premise, private cloud service that will be hosted at the OTech s data centers located in Rancho Cordova and Vacaville. CalCloud is scalable, reliable and secure in nature, and provides the OTech the opportunity to boost information technology (IT) agility, flexibility, and service to the business. The OTech customers have continued to express interest in more control over their environments with concerns of purchasing costly hardware. CalCloud will bridge the gap between traditional OTechmanaged and customer-managed services. CalCloud grants the OTech the opportunity to bridge the existing gap by leveraging technology that focuses on customer control over the application versus the infrastructure. CalCloud presents control at the application level, but also allows customers to control the amount of resources obtained to mirror adequately their business needs, including control of infrastructure disaster recovery (IDR), backups, storage, and memory. CalCloud is expected to help customers shorten their implementation timeframes relative to computing infrastructure, to provide efficiencies, and enhanced scalability in support of their IT needs. Additionally, CalCloud is highly secure, complying with such security requirements including FedRamp, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), and the National Institute of Standards and Technology (NIST) to name a few. The service offering will be co-managed by the OTech and a vendor. The infrastructure will be supplied and managed by the vendor, while the OTech will manage all services. Through forming a partnership with a private cloud service provider, the OTech is able to benefit from knowledge transfer for the duration of the contract period. The OTech staff will gain invaluable insight into a true private cloud service offering with the intent of being able to manage CalCloud entirely at the end of the contract. CalCloud is a multi-phased project, initially rolling out an infrastructure as a service option for customers. Over the next several years, the OTech plans to expand CalCloud to include Platform-as-a-Service (PaaS), and Application-as-a-Service (AaaS). As CalCloud continues to grow, the service offering will become the model for how IT services are delivered, managed, and consumed within the State. P a g e ii

Table of Contents Executive Summary... Table of Contents... Section 1: Business Case... Section 2: Business Model... 2.1: Deployment Strategy... Section 3: Solution Assessment... 3.1: Business Opportunities... 3.2: Business Risks... 3.2.1: Risk Mitigation... 3.3: Service Comparison... Section 4: Next Steps... Section 5: Business Plan Approval... ii iii 1 3 5 6 8 9 10 11 14 16 P a g e iii

Section 1: Business Case The Office of Technology Services (OTech) delivers comprehensive, cost-effective computing, networking, electronic messaging, and training solutions to benefit the people of California. A challenge for the OTech is to maintain not only their business strategy, but also to balance opportunities for economies of scale with customers needs for management or control over their computing environments. The advent of virtualization technologies, which allow more server instances to reside on fewer pieces of hardware and occupy less raised floor space, have provided opportunities to support more customers within their existing data center footprint. The current service offerings do not allow for traditional customer management and control of their environment. In 2010 the Infrastructure Consolidation Program as a part of Executive Order S-03-10, was established to improve the State s information technology (IT) efficiency, effectiveness, agility, security, and reliability while reducing costs and energy usage. The current process of requesting servers involves long lead times to procure hardware. However, installation activities to add to the already extensive lead times experienced by the OTech s customers. In light of this, there is an opportunity for the OTech to improve flexibility to customers and provide a path to reduce project lifecycle time through on-demand cloud service infrastructure. Problem Recognizing the cost of technology with the services being delivered External public cloud service comparison Capital and Operational Expenditure Details / Description As the OTech moves to a more consolidated and abstracted environment, it becomes less clear how the cost of capacity relates directly to the delivery of service to the customers. For example, in a simple distributed processing example, the cost of hosting an application is the cost of a server. That one-to-one relationship is lost in a consolidated environment. The customers need to know what they are getting for their money in terms of the total cost capacity and how total capacity relates to service maintenance. Internal IT is challenged by the inevitable comparison with external public cloud services. Questions are raised such as, Why can t we be like Amazon? There is a range of concerns from security to availability in regards to the public cloud. Even if the OTech is not ready to exploit public cloud infrastructure, there are inevitable comparisons between the economics of cloud infrastructure to the cost of internal infrastructure. Hardware and software purchases are two areas that make up a significant amount of the State s capital and operational expenditure. A key benefit realized through consolidation and virtualization efforts is through reducing the quantities of server hardware necessary. As the CalCloud environment continues to grow, both hardware and software expenditure will become substantial areas of savings. P a g e 1

Information Technology Network, storage, and server teams will need to exist with CalCloud because specific technical expertise is still required to optimize the performance and cost effectiveness of each infrastructure layer for both existing services and in support of CalCloud. Customer s control of their environments The OTech s customers have continued to express interest in more control over their environments. Current service offerings provide three different levels of control: 1. Complete control to customer; 2. Limited control from the server hardware to the application level; and 3. Minimal control over just the application level. CalCloud will present control at the application level, but will also allow customers to control the amount of resources obtained to adequately mirror their business needs, including control of infrastructure disaster recovery (IDR), compute capacity, network, backups, storage, etc. P a g e 2

Section 2: Business Model The OTech is proposing a service offering named CalCloud. CalCloud is an on-premise, private cloud service that will be hosted at the OTech s data centers located in Rancho Cordova and Vacaville. Each data center ensures security and tier-3 data center power and cooling. This service will sit behind the OTech managed network and firewall infrastructure. The infrastructure will be vendor-managed up to the hardware and racks, and down to the operating system level. With the OTech and the vendor managing and supporting the underlying cloud infrastructure, this allows the customer to focus on their business needs and the application deployment. CalCloud will provide a highly available, 100% virtual environment to businesses through agile, costeffective, innovative, reliable, and secure technology. In accordance with the National Institute of Standards and Technology (NIST), CalCloud will be defined by the five (5) essential characteristics of cloud computing: 1. On-demand Self-Service CalCloud will enable the OTech s customers the ability to provision processing, storage, network, and other fundamental computing resources; and deploy and run arbitrary software and applications through a self-service web portal. 2. Broad Network Access CalCloud is a pathway to providing a more responsive, accessible, and mobile government IT solution through utilization of a web-based self-service portal. The portal will be available from any remote location thus enabling government to be accessible to citizens and deliver services and information with excellence, creativity, and efficiency. 3. Resource Pooling CalCloud is a multi-tenant service offering, allowing consumers to access a shared pooling of configurable resources. 4. Rapid Elasticity With CalCloud, provisioning can be completed rapidly. Consumers are provided control of their server environment, with the ability to provision or de-provision computing resources as fitting for their business needs. Once consumers have subscribed to CalCloud, new virtual servers can be set-up and resources can be scaled, sometimes in little as a couple of hours. This flexibility allows the consumer to keep their virtual environments in line with their ever-changing business needs. 5. Measured Service The CalCloud environment is a subscription-based service. The environment is measured, controlled, and reported ensuring consumers pay only for computing resources they provision each month. P a g e 3

CalCloud is multi-phased project. Phase One of CalCloud includes the following eight (8) components: a. Virtual computing b. Virtual networking c. Storage services d. Backup services e. Image management f. Infrastructure disaster recovery g. Service portal h. Security services This service offering will be available to federal, state, local, and county government entities. The CalCloud is based upon a self-service business model. Once consumers subscribe to CalCloud, they manage their environment(s) via a self-service portal. The singular, self-service, web portal will allow customers to provision servers, add/remove resources to/from the servers, manage capacity, monitor servers, add backups, and subscribe to IDR for their servers. The self-service portal provides consumers with the ability to customize their server needs. The portal is intended to provide the user with a shopping cart experience. The service menu offers four (4) predefined server bundles and several add-on components for customers to subscribe to, such as IDR and backup. The self-service web portal provides customers with the ability to have virtual servers in as little as a couple of hours and through a few clicks of a mouse. Customers can also add more resources (i.e. memory and storage) to their virtual environment(s) through the same self-service portal. In addition, customers who select optional services such as IDR and backup will have the ability to backup data and recover their servers. The below diagrams illustrate the business model and accompanying service menu. P a g e 4

*CCU CalCloud Compute Unit. One (1) CCU is equivalent to 1 GHz of a 2012 or newer Intel Xeon Processor The CalCloud infrastructure will be owned and operated by the CalCloud vendor in accordance with the OTech s defined service level agreements (SLAs) and operational processes, such as Change Control, and Release Management. The OTech will be the service manager for CalCloud and, in partnership with the vendor, will be responsible for acceptance of all service delivery. All data, including virtual machines (VMs), virtual disks, databases, etc. are the property of the State. The vendor will have to comply with all security policies and standards as is outlined in the Invitation for Bid (IFB.) 2.1: Deployment Strategy The OTech plans to migrate the following internal application(s) to the CalCloud environment: Citrix servers Existing OTech managed virtual servers The OTech managed monitoring servers The OTech servers due for refresh (hardware/application) The below table, breaks down the first 24 months following CalCloud s GoLive date, outlining the type of environments and applications which will be migrated to CalCloud. Month(s) Workload 0-3 The OTech s test and development environments. i.e., new Citrix farm, various monitoring software, etc. 3-6 The OTech s production environment and customer s test and development environments. 6-9 Customer s non-mission critical production environments. Customers mission critical production environment, including migration of large 9-12 projects. i.e., Department of Corrections & Rehabilitation s Strategic Offender Management System (SOMS) and Business Information System (BIS) Customer s test and development environments with special security 12-18 requirements. i.e., HIPAA 18-24 Customer s production environments with special security requirements. P a g e 5

Section 3: Solution Assessment The intent of CalCloud is to bridge the gap between traditional OTech-managed and customer-managed services. CalCloud grants the OTech the opportunity to bridge the existing gap by leveraging technology that focuses on customer control over the application versus the infrastructure. CalCloud is expected to help customers shorten their implementation timeframes relative to computing infrastructure, to provide efficiencies, and enhanced scalability in support of their information technology needs. CalCloud also supports the overall goals of the State regarding data center consolidation, allowing the OTech to maximize existing raised floor space through server virtualization. The methodology used to develop CalCloud s requirements and formulate the service menu was both tactical and strategic in nature. There are three (3) main hindrances that implicate the State and disallow the OTech from setting up the CalCloud infrastructure at this point in time. 1. The demand for infrastructure service within the State is currently unknown and, therefore, presents procurement challenges for the State in securing funding and resources for planning and executing the development of infrastructure for a private cloud service offering. 2. The State cannot procure hardware in a manner that supports rapid elasticity and accommodates unanticipated capacity constraints. At times, it can take the OTech up to six months to procure a server. In addition to long procurement lead times, there would be significant upfront capital investment in order to establish an internal private cloud service offering. 3. The OTech currently does not have staff with the appropriate expertise to set-up such a complex environment. All of these current limitations resulted in the decision to contract a vendor to initially set-up and manage the CalCloud infrastructure. It is expected that the vendor will meet both the OTech s desired time-tomarket due date and level of quality and service expected by the OTech s customers. The service catalog for CalCloud offers four (4) pre-defined server bundles and two (2) operating systems for the customer to choose between. Each bundle has a fixed amount of cores, and a fixed amount of memory and storage. The number of cores and the amount of memory and storage allocated to each bundle was determined based on reviewing internal and external service requests (SRs). There were 61 SRs reviewed, requesting a total of 785 servers. The SRs were submitted to the OTech between July 2009 and April 2013. Of the 61 SRs, 43% were external requests, while internal business units submitted the remaining 57%. The sample data yielded the following: Two (2) cores were the most popular, resulting in 68% of the servers requested. Sixteen (16) cores were the second largest percentage, resulting in 19%. Four (4) cores were 7% of those included in the sample data. Eight (8) cores were 6% of those included in the sample data. This data proved that a 2-core, 4-core, 8-core, and 16-core server should be offered through CalCloud s service menu. P a g e 6

Core Size (Package Size) # of Servers Requested % of Servers Requested 2-core (Small) 533 68% 4-core (Medium) 51 7% 8-core (Large) 49 6% 16-core (X-Large) 152 19% The sample set of SRs were also used to determine the types of operating systems to be offered with the initial rollout of CalCloud. Based on the 61 SRs analyzed, the most prominent operating system requested was a Windows platform, resulting in a staggering 83% of SRs reviewed and over 97% of the total servers requested. SRs requesting Red Hat as the server s operating system amounted to just fewer than 2% of the sample SRs, accounting for only 10 of the 785 servers requested, while requests for servers with Oracle VM resulted in just under 1% of the total server sample population. Additionally, from the 61 SRs reviewed, 8 SRs or 13%, did not contain the necessary data and therefore the SRs and servers requested through the SRs could not be included as part of this analysis. With the large percentage of SRs requesting a Windows platform, the choice was easy to include such as an operating system choice for CalCloud subscribers. Since servers running Oracle VM and Red Hat both resulted in such a small percentage of the requests, a secondary analytical approach was utilized to determine a second operating system option. Through running a trend analysis, the sample data concluded that SRs, which were submitted in the most recent months, were requesting servers running Red Hat at an increasing rate. Similar requests are expected to continue into the future. To ensure that CalCloud meets the market s expectations as well as giving the customers options, Red Hat was established as a second operating system option. Operating System (OS) # of Servers Requested % of Servers Requested Windows 758 96.56% Red Hat 10 1.27% Oracle VM 3 0.38% Blank 14 1.78% To validate further the previous research, surveys were sent out to Chief Information Officer s (CIOs) at their respective agencies. The surveys contained seven questions and were intended to not only gauge the department s interest in a private cloud service, such as CalCloud, but also to help define the specifics of the service offering. The feedback received from the surveys was vital in fine-tuning the service menu and ultimately, designing a successful service offering. Some of the most important information obtained from the surveys was the decision to include IDR as an add-on feature, versus incorporating into each pre-packaged bundles. External agencies agreed that IDR should be a separate cost and that not all server instances residing within the CalCloud environment will need a disaster recovery feature. To provide further flexibility to the customer, the option to increase memory, and storage was incorporated as options to consider for additional costs. Realizing that not all environments may fit a pre-determined bundle package, the add-ons give the customer the ability to tailor their environments as best fitting to their business needs. Further, the option for backup services is also included as an P a g e 7

optional service. Both IDR and backup are tiered services. There are two levels for each, Level 1, and Level 2, providing a different expected recovery point objective and recovery time objective. 3.1: Business Opportunities CalCloud has a number of distinct benefits. First and foremost is cost savings both for the client organization as well as the enterprise overall. With CalCloud, business units no longer require capital expenditures for hardware and software nor the operational expenses incurred by hiring and maintaining a large IT staff. The unit pays for the subscribed-to resources. As a result, a reduction in computing demands translates directly into a reduction in computing expenses. Furthermore, the enterprise reduces expenses by increasing system utilization through the sharing of resources with multiple business units and through the ability to move resources around to meet changing demands. The enterprise also reduces its IT management costs using state-of-the-art system management tools specifically converged hardware management tools that integrate management across the entire infrastructure stack. CalCloud will utilize technology based on the virtualization of servers to allow for capital cost savings and a reduction of the cost of IT infrastructure. New revenue streams will be generated through the CalCloud service offering. CalCloud will provide better return on investments through high-margin and multi-tenancy services, enhancing the ability to create new competitive offerings, and increase open market opportunities with enterprise customers. An example of economies of scale, the OTech pays a fixed cost for computer room floor space. The OTech must recover these costs through rates and charging back customers. The more customers per square foot results in the fixed costs being spread across more customers. Consequently, lower rates may occur per unit or server provided. This section of the Business Plan explores the opportunities that the OTech will realize a return on investment, in terms of tangible and intangible benefits. By combining corporate infrastructure with cloud-based infrastructure, the enterprise can create a flexible, highly scalable, application-hosting environment with rapid access to additional capacity for peaks of demand. Many datacenter systems are configured to handle peak demand, leaving them underutilized for a considerable amount of time. Such is the case for Enterprise Resource Planning (ERP) financials, which have seasonal resource demands and often incur sunk costs. Virtualization enables greater resource optimization, increased flexibility, and increased security and isolation. CalCloud can lower costs while increasing business agility and allowing for fluctuation for changing and/or seasonal demand peaks. Cloud computing opens the possibility to reduce the cost of IT infrastructure by utilizing available technology that is based on subscription fees; similar to the approach used with the OTech s managed services. The greater benefit to customers is the ability to obtain computing resources quickly, and to scale up or down in accordance with their project or other business demands, reducing lag time and inefficient use of staff resources (e.g. developers, integrators, testers, etc.) In addition, client organizations can readily take advantage of CalCloud since the resources are similar to what they have traditionally deployed in their own data centers. This means existing skill sets around server, database, and application administration can all be retained and reused. CalCloud provides a degree of portability between the IT department and the client organization s own existing infrastructure as deployment takes place on standard platforms. The isolation of resources at the virtual server level also means the client department has control over their operations, including the storage of data and specific encryption and security measures. P a g e 8

Domain Strategic Focus Capital and Operational Expenses Time to Market Knowledge Transfer Opportunity Federal, state, county, and local government entities can all take advantage of CalCloud. CalCloud gives small departments who do not have the staffing capacity to procure and maintain servers, to minimize their tactical business approaches. All customers can focus more thoroughly on creating and implementing programs, which work toward their individual business objectives, while creating more strategic alignment between all government entities. CalCloud is supported through virtualization, allowing for fewer costly hardware procurements. CalCloud provides customers with a low cost, general-purpose service option. Customers can take advantage of the cost savings that the multi-tenant approach of CalCloud offers. Agility and rapid deployment are hallmark benefits of a cloud service, including CalCloud. The enterprise must also guarantee service levels particularly to critical systems. Through capacity planning and by offering tiered levels of IDR and backup the enterprise can achieve maximum agility for development and rapid-go-to market initiatives while reserving capacity to ensure critical system are adequately provisioned. Part of the solicitation requires that the vendor provide training to OTech staff throughout all CalCloud processes and activities for the duration of the contract. OTech staff will be trained throughout each phase. Training will include subject areas including portal development, backups, IDR, patching maintenance, provisioning, operations of the hardware (servers, storage, hypervisor) and software (OS, backup, and administration software), as well as processes and documentation used to maintain the CalCloud environment, and reporting and monitoring capabilities and processes. 3.2: Business Risks The challenge in developing the internal cloud will therefore be to ensure appropriate service levels and capacity availability at the lowest overall cost. All capacity (infrastructure) costs need to be justified in terms of service levels and risk management. Risk Category Probability Risk Coordination High IT is often organized around technology silos. To become a service-oriented cloud, internal IT needs to be organized around service delivery to the business. Years of distributed processing has led many within IT to see themselves as asset shepherds. Their job is to acquire, configure, deploy and care for various hardware assets. It is not about managing storage, servers, or networks. It is about managing systems that include all of the above. P a g e 9

Internal Staff Pushback Business Pushback on Cost Unknown demand for infrastructure services Meeting business objectives High High Medium Medium Staff feels as if their job is being threatened and that their position may become obsolete with CalCloud infrastructure being maintained by a vendor. The business may also be fixated on unit costs of assets rather than total cost of service. The goal of capacity management is to show the total cost of capacity (or the total cost of capability) against which various current and future needs are being met. Although many OTech customers have expressed interest in CalCloud, the total demand for the CalCloud infrastructure is unknown. There are no guarantees the interested customers will materialize, subscribe, and be satisfied with CalCloud services. Costly over-provisioning or, at the other end of the spectrum, failure to meet service requirements make it difficult to meet changing business objectives. Having available capacity for growth and new workloads is essential to run an effective business. Capacity is a limited resource in the internal cloud. Concern about hitting the wall of capacity limits leads to over provisioning (acquiring more capacity i.e. spending and maintaining more -- than is needed). On the other hand, doling out capacity without regard to limits treating it as a casual resource can compromise service objectives. This scenario is called virtual server sprawl, where uncontrolled creation of virtual machines leads to waste of capacity and reduces performance. 3.2.1: Risk Mitigation CalCloud is a service, not available at the OTech today. Limiting the first rollout of CalCloud to a group of pilot customers reduces the risk of implementation issues for the OTech s customers. Risk Category Probability Mitigation Strategy Coordination High Establish a systems management/cloud development team Representation from each of the IT silos along with incorporation of business analysts Assess the business needs of various applications as a team P a g e 10

Internal Staff Pushback Business Pushback on Cost Unknown demand for infrastructure services Meeting business objectives High High Medium Medium Training and knowledge transfer is mandated of the vendor The OTech staff will be trained on all CalCloud processes throughout the life of the contract, building upon and supporting other internal business units and projects Organizational realignment Through capacity planning and tiered service offerings, efficiencies are realized and capacity needs of various applications and business processes are met Offering a subscription-based business model Allowing more customer control over their virtual environments through a self-service web portal Marketing and communication plan to educate customers on CalCloud CalCloud normalizes costs, shortens the timeto-market, and provides the control of environments to the end user. 3.3: Service Comparison The OTech offers a variety of managed services to public sector organizations including mainframe and midrange system computing, data storage and backup services, software services, networking, disaster recovery, etc. Under its managed services model, the OTech has control over the environment, and standardization of products and support procedures allow the OTech to reach economies of scale and control costs. The OTech is responsible for providing hardware, software, related security, load balancing features, operating system and middleware patching, as well as security scans. The customer is responsible for the applications they run within the environment; they have limited privileges related to the operating system and middleware, and have no infrastructure responsibilities. In contrast, the OTech s Tenant Managed Services (TMS) service model offers customers the ability to manage the entire environment themselves. The OTech provides rack space, power, and cooling for a fee. The customer reserves rack-space with the OTech, and provisions and installs hardware and software products. Customers are responsible for maintaining components within the environment, as well as necessary patching and security. TMS Premium can support robust, highdensity environments, and includes the OTech s networking and optional storage services. Demand for TMS Premium continues to grow, where customers want or need more control and flexibility. TMS Basic has limited power and does not include networking support, meeting the needs of older applications at the lowest cost and with the highest amount of customer-control. TMS services provide an opportunity for customers to implement disaster recovery (DR) solutions for their applications; however, replicating the production environment at the alternate site is not affordable for many customers. P a g e 11

Neither of the existing service models is cost effective for temporary or short-term needs. Both existing OTech hosting service options require a long-term investment in hardware by either the OTech or the customer. In addition, neither offers the combination of the OTech s provided hardware and basic software while at the same time allowing customer control and flexibility. Complications for TMS customers include up-front costs. In order to ensure rack-space will be available, TMS customers pay reservation fees in advance of hardware delivery and installation. They pay for the entire amount of space needed regardless of project lifecycle needs or timeframes. For example, many projects build a test and development environment first. The completed project may have several environments, including one designated for production, at a later point in time. Project teams can also incur unplanned wait time, where staff and contractor team activities are sequential and ultimately dependent on availability and usability of each environment. They may be idle in between the design and build completion stages. In addition, procurement and installation cycles typically influence project timeframes. The diagram shows the comparison between the existing service offerings, managed services and TMS (premium and basic), and how they compare to the forthcoming service offering, CalCloud. P a g e 12

TMS/Managed Services CalCloud Infrastructure is entirely owned by the enterprise and managed by the OTech An external third party (outside IT) owns infrastructure. They are responsible for managing capacity and mitigating risk. Application workloads are provisioned by resources that can also be elastic but scaling is limited by available capacity. Application workloads are provisioned by these abstracted resources which are elastic (they scale up with need). The business the sole customer of internal IT infrastructure pays for the whole environment regardless of how much is used. Customers share access to these resources (typically via the Internet) in a multi-tenant environment and pay for what they use. P a g e 13

Section 4: Next Steps The immediate focus of CalCloud is to successfully establish a working relationship with a vendor and implement a private cloud service offering, focusing only on infrastructure-as-a-service (IaaS). The below schedule identifies the steps necessary to stand up CalCloud and the estimated amount of time to complete each step in order to prepare for onboarding of customers. CalCloud Implementation Schedule Task ID Description Duration Notes Implementation Services Begin 0 Requirements Gathering 3 days 1 Infrastructure Setup GC 1.1 Rack & Stack HW 7 days 1.2 Network Connectivity 14 days Phase 1 Completed 0 2 Install/Config VM's Manually 7 days 3 Portal Development 3.1 Build Portal 7 days All Portal Development Completed - Workflows not 3.1.1 Build Service Menu/Catalog included in this phase 3.1.2 Backup 3.1.3 DR 3.1.4 Provisioning 3.1.5 Add- Ons (Ram and Storage) 3.1.6 Build Reporting Functionality 3.1.7 Design Monitoring/Dashboard 3.1.8 Admin Tools 3.2 User(s) Access Setup (login) P a g e 14

Task ID Description Duration Notes Phase 2A Completed 0 4 Vacaville Infrastructure Build 4.1 Infrastructure Setup 21 days 4.1.1 Rack & Stack HW 7 days 4.1.2 Network Connectivity 14 days Phase 2B Completed 0 5 Workflow Customization/Acceptance Testing 5.1 Develop Workflow Authorization 21 days 5.1.1 Test Workflow 7 days 5.1.2 Test Full Functionality (Use Cases) 14 days Phase 3 Go Live 0 Full CalCloud Functionality After a successful implementation of the IaaS phase of CalCloud, the OTech plans to expand the service offering to also include Platform-as-a-Service (PaaS), Application-as-a-Service (AaaS), IT Services Management-as-a-Service, as well as virtual desktop infrastructure (VDI). These service expansions are expected to continue over the next three (3) years; the below timeline highlights how the service expansions are expected to roll out. P a g e 15

Section 5: Business Plan Approval Name Title Project Approver Signature Date Name Title Project Sponsor/Lead Signature Date Name Title Service Manager Signature Date P a g e 16