Data CenterConsolidation in California

March 21, 2006

Anna Brannen & Mitzi HoustonCalifornia Department of Technology

Services

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1. Why and What California Consolidated?

2. Value From Consolidation3. Lessons Learned4. Our New Direction5. Conclusion

Agenda

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Round Numbers

• IT Expenditure in CA State – $2 billion annual expenditure.– 6,000 state IT professionals.– $500 million annual telecommunications

contract.• Scope of Consolidation– Two data centers with an annual expenditures

over $200 million.– Telecommunications and CALNET contract.– Full range of data center services.– 800 IT professionals.– Seven facilities.

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Why California Consolidated

• Tactical– Budget crisis – Leveraging buying power – Increase efficiency

• Strategic– Opportunity for shared services– Retirement crisis– Improve security and risk

management

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Baby DTS is 7 Months Old!Teale Data Center Telecomm. Div.

Human ServicesData center

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Where is the Savings (aka Tofu)?

• Software Licenses• Computing Infrastructure• Facilities• Networks• People

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What Went Well?

• Limited scope creep.– Pick one process and implement!

• Communications.– Different settings for different people.– All forms of communications were used.

• High Level Support.– Cabinet, State CIO, and Budget Office.

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Lesson Learned

• It’s all about people!– Melting pot of different cultures.– No such thing as over-communication.

• Project management– Not a data center strength.

• Technicians are not analysts.– We’re in religious wars.– There is hope!

• Co-location would have helped.– Make facilities changes ASAP.

• Managing financial expectations– Pressure to deliver efficiency fast.

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Our New Direction

• Current situation• A context for our business

(shared IT services)• 5 Strategies

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Current (almost past) Situation

• Each entity had its own approach built around service reps– Accept service requests and convey to

appropriate internal entity such as Operations, Engineering, or Administration

– Primarily reactive– No real process measures or service levels– Occasional measurement of customer

satisfaction– Customer Perception: Varied

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Why DTS Shared Service?

• Economies of scale• Security• Process consistency• Standards

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DTS Shared Service Model

DesktopSupport

Public Meeting Videos

State Portal

Shared Services

LegacyTransformation

E-mail

Server BasedComputing

LAN Support

DTSCustomersDTS

Customers

CoreServices

MainframeHosting

Servers

Telecomm.

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Strategy 1: Engage the Customer• Build a community• Develop a Customer Advisory Committee

– 8 Largest customers (60% of revenue)– 1 Medium and one small department– Guides the evolutions of new services and programs– Endorse standards for shared services

• Director’s Advisory Board– AIO’s

• Develop programs to engage departmental directors– Executive briefings; Building IT strategic roadmap

• Service specific governance– Empower the customer– E.g. email, State Portal

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Strategy 2: Organize for Delivery• Elevate Customer Service to a major

division– Incorporate all customer facing functions

• Assign account managers for major customers– Proactive; peer level interface with the CIO– Engage in strategic as well as tactical issues– Build relationships– Quarterly account review with customer and Director

• Operations and Engineering divisions behind Customer Delivery Division

• Develop the customer delivery staff– Internal educational conferences

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Strategy 3: Plan for Customer Service

• Add “customer service” as a balanced scorecard item– Financial, Customer Service, Employees,

Innovation• Create strategic plan objectives for

customer service improvement• Hold managers accountable for

measureable improvements• Staff training in customer skills

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Strategy 4: Process Improvement and Measurement

• Implement “Best Practices” – ITIL– Start with Service Request process

• Start process measurement– Implement level 1 service level

agreements

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Strategy 5: Leadership and Communications

• Innovation Lab• Mini-conference Center– Statewide IT event calendar, public and private– Expanded training services

• Monthly newsletter– State specific news– Relevant technology news

• Improvement website

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Conclusion

• Consolidation was successful• Once you complete consolidation

move forward• Use consolidation to address

long standing issues