State of Texas Data Center Services

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State of TexasData Center Services

• Vendor Briefing
• June 22, 2007

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Agenda
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Kim Weatherford Overview of Data Center Services
Contract
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Texas Data Center Services Contract

• Term 7 years and 5 months (started March 31,
  2007)
• Participating Agencies
• Model
• Pay by the drink, consumption-based contract
• IBM invoices DIR and DIR invoices agencies

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Contract Scope In Scope

• The following functions are covered by the DCS
  contract

• Server
• Application Servers
• Utility Servers
• Storage
• Remote Server Administration
• Cross functional
• Security, support center, change management, etc.
  to support in scope functions

• Mainframe
• CPU
• Storage
• Tape
• Print Bulk Mail

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Contract Scope Out of Scope

• The following services are retained by the
  agencies.
• End-user computing (desktop)
• Application development maintenance
• Enterprise help desk
• Telecommunications

Processes for procuring these services have not
changed.
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IBM and Subcontractors Roles and Responsibilities
IBM Prime Contractor/Program Management
XEROX
Unisys
IBM

• Print Management
• Print Operations

• IT Operations
• Infrastructure
• Support Center
• Transition/Transformation
• Facilities

• Project Management
• Data Center Server Consolidation
• IT Operations
• Infrastructure
• Transition/Transformation
• Communications
• Risk Management
• Training

ATT
Dell
Pitney Bowes

• Postal Management
• Postal Operations

• Network

• Infrastructure

Supporting Organizations
Historically Underutilized Businesses (HUBs)
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Contract Goals

• Provide secure, reliable infrastructure
• Leverage statewide volumes to reduce costs
• Consolidate operations
• Ensure unique agency needs are met
• Reasonable standardization
• Continued diversity not just IBM

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Lara CofferContract Operations and Management
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Contract Procurement Goals

• Consolidate software agreements
• Leverage aggregate volumes for better pricing
• Drive volumes through DIR Cooperative Contracts
• Reduce operational costs of supporting various
  products
• Reduce contract management overhead
• Maintain competitive pricing
• Let best value and best pricing drive standards
• Maximize the taxpayer dollars by acquiring
  maximum discounts for the State of Texas

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Contract Provisions Hardware

• Agencies retain ownership of current hardware?
  No transfer of ownership or asset sale to IBM
• IBM will consolidate hardware to the Austin and
  San Angelo Data Centers
• Twenty-four month consolidation process (minimum)
• Until consolidation, agency hardware is operated
  in agency data center
• When hardware is due for refresh, IBM will
  acquire new equipment (using DIR Cooperative
  Contracts)
• New application server costs are passed through
  to agencies through the Hardware Services Charge
  (HSC)
• New infrastructure equipment is covered by IBM
  and is already in the unit rates

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Contract Provisions Software

• In-Scope
• Current software licenses to be assigned to IBM
• Renewals and new software licenses to be acquired
  by IBM (using DIR Cooperative Contracts)
• IBM to hold licenses and manage software on
  behalf of the state, aggregating licenses where
  possible
• Out-of-Scope
• Agency retains license
• Agency maintains responsibility for renewals and
  new purchases

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Software In-Scope

• Antivirus Software
• Infrastructure Management Software
• Operating Software
• Utility / Monitoring Management Software
• E-mail / Collaborative Software
• Application Utilities
• Compilers
• Database Management Software
• Development Tools
• Middleware
• Network Software
• Security Software

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Software Out-of-Scope

• Business Application Software
• Examples Law library software, insurance case
  management system, etc.
• Desktop Software
• Examples Windows XP, Office Suite, etc.

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In-Scope Software Categories

• Infrastructure stack software
• Considered part of basic infrastructure services
• Included in the per unit rates agencies pay
• HSC software
• Identified as agency request software
• Acquired by IBM for agency and billed to agency

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Examples of Infrastructure Stack Software

• Antivirus Software
• Software used to monitor, filter and detect the
  presence of malicious code and repair or
  remediate the effects of malicious code
• Examples McAfee, Symantec AV, Trend Micro
• Infrastructure Management Software
• Management tools used to provide an integrated
  tool to manage the entire infrastructure
• Examples Tivoli Storage Manager, Veritas
  Netbackup, Veritas Backup Exec, Bakbone Netvault
• Operating Software
• Examples AIX, HP/UX, Solaris, Windows
  including embedded functionality, Netware, Linux,
  AS400, GCOS
• Utility / Monitoring Management Software
• Management tools that facilitate the management,
  monitoring, and performance tuning of Equipment
  and Software, central or remote
• Examples IBM Tivoli Distributed Monitor,
  Zenworks, Microsoft SMS, IBM Tivoli
  Configuration, Tivoli Software Distribution,
  Tivoli Enterprise Console, Tivoli Workload
  Scheduler, Remedy suite of Software, RMS Control,
  RemotelyAnywhere, CA vShell, SMS
• E-mail / Collaborative Software
• System software that enables the exchange of
  electronic mail and facilitates the sharing and
  display of information among teams of people
  engaged in a cooperative task
• Examples Microsoft Exchange, Lotus Notes, Novell
  Groupwise

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Examples of HSC Software

• Application Utilities
• System software that adds to the capabilities of
  Application Software or COTS that allow for
  dynamic tailoring of the functionality
• Examples Cognos, SAS, FileNet, ESRI ArcGIS,
  Crystal Reports, Citrix, SQL Editor, WebTrends
• Compilers
• System software used to convert source code to
  executable code
• Examples Cobol, MicroFocus Cobol
• Database Management Software
• System software used to access structured data
  and usually provides functionality for ad-hoc
  queries, data retrieval and generating reports
• Examples Oracle, Informix, SQL Server, DB2,
  Sybase
• Development Tools
• Software used in the development, testing,
  deployment, and maintenance of Software
• Examples Front Page, Visual Basic, .Net,
  ColdFusion, Rational

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More Examples of HSC Software

• Middleware
• Software that facilitates interactions and
  integration between and among two or more
  separate Software programs, Systems, or platforms
• Examples Weblogic, Websphere, MQSeries, Apache,
  BEA Tuxedo
• Network Software
• Management tools that enable multiple devices to
  communicate with one another
• Examples Process MultiNet, Attachmate, Fluke
  OptiView, Primesupport Sniffer
• Security Software
• Management tools that are used to restrict access
  to the data and files on a server
• Examples ISA, SSH, Proxy, Radius, Websense,
  Surfcontrol, Tivoli Access Manager

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Software Assignment How it Works

• Agency software was documented for the contract
• Current licenses to be assigned to IBM
• Communication
• Agency ? Vendor
• Notice of Intent to Outsource letter
• Consent to Access letter
• Assignment Consent letter
• Letters mailed to contact listed on license
  agreement (may be in corporate headquarters)
• Vendor ? IBM
• Consent to assignment
• Communication through IBM Procurement Team Contact

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License Assignment Contact List

• Mailing Address
• IBM/State of Texas Project Office
• 11501 Burnet Road, Building 908, 1st Floor
• Austin, TX  78758
• Attn ltnamegt

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Software Procurement How it Works

• For new licenses and renewals
• Best value for the state
• Aggregating agreements
• IBM will hold license
• Infrastructure software to be managed and
  provided by IBM
• HSC software to be requested by agencies and
  procured by IBM
• DIR approval of data center expenditures (Planned
  Procurement Schedule)
• Non-participating agencies
• Participating agencies

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Current State - Transition

• Software
• Thousands of contracts and nearly 900 consent
  letters to process
• Reviewing assignment status and payment status
  (prepaid vs. monthly payments)
• Reviewing bundled software contracts that
  include both server and desktop products
• Hardware
• Inventory completed
• Equipment tagged for asset management
• There are 200 procurements in the queue
• Electronic POs
• Process confusion/education

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Future State DCS Governance
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Future State Business Processes

• Product catalogue
• Specifications
• Rates
• Terms and conditions
• State of Texas customers

Agencies have multiple sources of information for
product decisions
Discussions with Vendor Representatives
Feedback from Agency IT Staff
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Sherri ParksGoDIRect Contracts and the DCS
Contract


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Use of Go Direct Contracts

• DIRs commitment
• Go Direct program
• DCS contract
• IBM required to use the Go Direct contracts
• When it is in the best interest of the state
• DIR to provide a letter to all vendors
  authorizing IBM as a customer
• IBM is procuring on behalf of the state
• Procurement Decisions
• IBM decides infrastructure hardware and software
• Agencies, DIR, and the Governance process decide
  other purchases

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How to Participate

• Continue to market products to state agencies
• Agencies suggest products during the governance
  process
• Vendors should not accept Purchase Orders
  directly from participating agencies for in-scope
  software and hardware
• Provide quotes to IBM in the timeframe requested
• Accept Purchase Orders from IBM
• Ensure the DIR contract number is on the Purchase
  Order
• Continue to be a DIR Go Direct Vendor
• This is not a guarantee of business
• Provide Competitive Pricing

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Break

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Questionsand Answers