The “Financial X-ray” of IT Services costs

Dan Perry Director of Product and Marketing dan.perry@ja.net

•  Janet Cloud Services frameworks •  Knowing IT costs to make informed decisions

•  The outputs you will receive •  Benchmarking with peers •  How Janet works with you •  Our charges

•  Modelling costs of cloud vs in-house •  Questions & discussion

Synopsis

•  University of Huddersfield •  Newcastle University •  De Montfort University •  University of Lincoln •  Imperial College London •  College of Haringey and North-East London •  Oxford and Cherwell Valley College •  Loughborough University •  University of Leicester •  Portsmouth University •  Lancaster, Sheffield, Oxford starting in June 2013

Work completed / in progress / coming up

The Financial X-ray example outputs

1.  It’s a diagnostic tool, not a medicine.

2.  It’s not an audit.

3.  A standardised approach permits benchmarking.

4.  Working in close collaboration with your Finance and IT colleagues is essential.

5.  We perform detailed analysis but keep the amount of time you need to spend proportionate.

6.  Developed by Janet with our HE-FE customers.

Financial X-ray: in summary

Costs of your IT Services, at a glance

•  A standardised taxonomy of IT services and platforms, developed with UCISA, tried and tested at several HEIs and FECs.

•  Total absorption costs: pay + non-pay + overheads.

•  Activity based costing, analysis of pay and non-pay costs.

•  Covers central and devolved IT costs.

IT platforms that enable IT services

•  End-users do not interact with platforms directly.

•  IT Platform costs must ultimately be absorbed into IT Service costs.

•  We can tell you the annual running costs of your data centre.

Headline costs for delivering IT services

•  “How much of our IT spend has a direct bearing on our students’ experience?”

•  “We didn’t realise it was costing us so much.”

•  “We didn’t realise our peers are investing much more.”

How much are our peers investing in IT?

1.  Prior to visit: initial data collection by email.

2.  On campus for 4-8 days…data analysis performed by a firm of Chartered Accountants with detailed experience of the Research & Education sector.

3.  Initial findings presented to the Director of IT and/or Finance on the last day on campus.

4.  Further analysis and report writing back at base.

5.  Possible follow-up visit.

6.  Detailed final report.

How Janet works with you

Charges for the Financial X-ray service

Turnover of institution Fees till 31st Dec 2013

FE College or University up to £49m turnover £4,000 + travel + VAT

FE College or University of £50m to £149m turnover

£6,000 + travel + VAT

University of £150m to £299m turnover £8,000 + travel + VAT

University of £300m to £499m turnover £10,000 + travel + VAT

University of £500m+ turnover (except Oxford & Cambridge)

£12,000 + travel + VAT

Scale of charges

In-house vs cloud data centres: Investment appraisal model

Data centre investment appraisal

•  Swiftly compares costs of building or refurbishing an in-house DC vs Cloud.

•  A complex Excel model underneath but as easy to use as an online mortgage calculator.

Data centre investment appraisal

•  Covers the key cost drivers for in-house and cloud DCs

•  Developed with Logicalis but the model is vendor neutral.

Data centre investment appraisal

•  Classic DCF / NPV investment appraisal.

•  Covers all relevant data centre costs.

•  Model is freely available to all Janet customers on request.

Janet, Lumen House Library Avenue, Harwell Oxford Didcot, Oxfordshire t: +44 (0) 1235 822200 f: +44 (0) 1235 822399 e: Service@ja.net