Data Center Consolidation in California

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Data CenterConsolidation in California

• March 21, 2006
• Anna Brannen Mitzi Houston
• California Department of Technology Services

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Agenda

1. Why and What California Consolidated?
2. Value From Consolidation
3. Lessons Learned
4. Our New Direction
5. Conclusion

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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!
Telecomm. Div.
Teale Data Center
Human Services Data 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

• Its 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.
• Were 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
State Portal
DTS Customers
DTS Customers
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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
• Directors Advisory Board
• AIOs
• 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