October 20, 2004

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Presentation to the IT Directional Meeting

• October 20, 2004
• Mike J. Ressler, Deputy CIO
• Director of Operations

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Agenda Topics

• ITD Annual Report Mike Ressler
• ITD Customer Service Division Mike Ressler
• IT Planning Activities Nancy Walz
• Enterprise Architecture Activities Nancy Walz
• Project Management Activities Nancy Walz
• Testing Tools Selected Segue Marlys Jangula
• Functional Consolidation Recap Dean Glatt
• Mainframe Migration Update Cost Savings
  Jeff Carr
• Instant Messaging Gary Vetter
• Standard Intervals for Telecommunication Services
  Jerry Fossum
• Customer Survey Dan Sipes
• Password Resets Dan Sipes

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(No Transcript)
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Questions?
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IT Planning Activities Enterprise Architecture
Activities Project Management Activities

• Nancy Walz, Director
• IT Policy Planning

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IT Committee Bill Drafts

• 50129.0200 Clean-up language
• 50130.0200 Revolving Fund
• 50131.0200 SITAC role, standards
  governance
• 50132.0200 Administrative Rules
• Next meeting November 3

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EA Activities

• Updating Standards
• Time and Labor next step proposed
• Instant Messaging solution proposed
• Testing Tools solution proposed
• Platform Future State next step proposed
• Desktop Support on hold
• Potential Activities
• Enterprise Spyware Removal
• Pre-approved IT Contractors

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EA ActivitiesPC / Laptop RFP intent to award
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IT Planning Activities

• Agency IT plan review
• Incorporating PC replacement costs
• Statewide IT plan
• SITAC Project Ranking

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SITAC Project Ranking

• Projects over 250,000 requesting general funds
• Relative rank provides an additional piece of
  information for the Governor and Legislature

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SITAC Project Ranking
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PM Activities

• Guidebook
• Standard Large IT Projects
• Training

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Large Projects

• Currently 22 projects
• Last year
• Eight Projects Completed
• Seven Under Budget - 3,138,511

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Project Management Training

• Issues
• More needed! Of 22 large projects, 11 w/ ND
  certified managers, 2 managed by ITD, 2 managed
  by vendor, 7 others.
• Need to be up-to-speed quickly
• Strategy
• Identify early
• Mentoring / Apprenticeship / Certification
• Additional training options

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Questions?
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Testing Tools Selected Segue

• Marlys Jangula, Manager
• Software Development

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Functional Testing Tools

• Enterprise Architecture initiative
• RFP
• Evaluated products through
• Vendor Demonstrations
• Proof of Concepts on ConnectND and BND
  applications
• Segue Softwares tool was selected

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Functional Testing Tools Cont.

• Next Steps
• Determine Licensing Needs
• Concurrent licensing model
• Training
• Administration
• Verification testing
• Quick start for IssueManager and TestManager
• Advanced verification
• Design Implementation Architecture
• Servers for IssueManger and TestManager
• Testing lab
• Determine billing structure
• Product includes usage reports

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Functional Testing Tools Cont.

• Service Delivery
• ITD will host servers
• ITD will host client license
• ITD will offer service of setting up and running
• Usage
• ITD
• System testing applications
• Departments
• System testing
• Acceptance testing

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Functional Testing Tools

• Benefits
• More complete tests
• Elimination of human error
• Consistency in testing
• Shorter testing phases
• Less impact as a result of software/tool upgrades
  
• Overall increase in software quality
• ITD contact
• Kyle Forster kforster_at_state.nd.us or 328-4323

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Biennium Planning

• Only 8 months of the biennium left
• We expect the last 4-6 months to be hectic as
  usual
• Please request projects to be started/completed
  this biennium early

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Questions?
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Functional Consolidation Recap

• Dean Glatt, Director
• Computer Systems Division

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Consolidated Services
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Benefits of Consolidation

• Original Analysis
• State Government could potentially eliminate 100
  or more application, database or file and print
  servers.
• In actuality,102 were eliminated, with the
  potential of further reduction.
• State Government had over 100 servers providing
  file and print services
• Typically one or more per agency
• Utilizing the state network and consolidating
  onto a single, clustered, environment for state
  government eliminated several application,
  database or file and print servers.

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Acknowledgement

• Many people took part in making this project a
  success, ITD and OMB would like to take the time
  to acknowledge and thank those involved in the IT
  Functional Consolidation Project
• Technical teams in ITD and the agencies who
  worked together for countless hours to accomplish
  the goals of this project
• Project team members who helped build the
  foundation to move forward
• Project Executive and Steering Committees for
  their support and guidance throughout the process

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Final Post Project Review Report

• The Final Post Project Review Report can be found
  at the following location
• www.discovernd.com\ITD (Under Consolidation
  News)

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Questions?
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Mainframe Migration Update

• Jeff Carr
• Systems Architect

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Platforms Operating Systems Future State

• The current server and operating system
  infrastructure presents the state with challenges
  that must be addressed.
• What are these challenges? How can they be
  addressed?

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Business Critical applications are deployed on a
variety of platforms

• Windows ConnectND, JSND, Law Enforcement
• iSeries DHS, BND
• AIX DHS, WSI
• Solaris OMB, DOT, Tax, JSND, others
• Linux GF, ITD, Health, others
• Mainframe DHS, BND, ITD, OMB, DOT, Tax, others
• HP/UX BND (Cash Management)
• Apple OS/X Water CommissionNote This list
  contains every major operating system currently
  available.

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Reducing the variety of business critical
platforms can reduce TCO

• Supporting a wide variety of platforms requires a
  wide variety of skill sets and so implies a
  larger staff.
• The effects of a wide skill set requirement are
  seen within ITD
• Some 40 of ITD's Computer Services Staff are
  devoted to the mainframe the remainder focuses
  on other platforms.
• Little cross over between these groups is
  possible due to the different technical skill
  sets.
• Service could be improved, and staff potentially
  decreased, by removing this division.
• Implication Business critical applications
  should be deployed on a limited set of platforms.

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Many business critical applications currently
require staff with mainframe skill sets

• Numerous critical applications run on the states
  mainframe
• These applications include the tax system,
  several DHS systems (MMIS, VISION, FASCES, etc.),
  Drivers License, BNDs core banking.
• The operation and maintenance of these systems
  requires staff with mainframe skill sets.
• As of 2002 some 60 of the people with these
  mainframe skill sets were age 50 or older.
• Implication This impending skill set
  shortage must be addressed.

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Current and Future State

• At present state government
• Provides critical business applications on a wide
  variety of platforms.
• Requires staff with a wide variety of skill sets,
  including mainframe skill sets, to support these
  applications.
• In the future state government
• Will provide critical business applications on a
  limited set of platforms
• Staff skill sets will be focused on this limited
  set of platforms.
• These goals need further definition to become
  actionable.
• Long term trends that drive Information
  Technology permit a more precise, or actionable,
  statement of goals.

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Information Technology Trends

• Intel based servers are becoming a commodity
• There is little difference between different
  vendors Intel Server Platforms.
• The Price/Performance of Intel based hardware is
  driving Enterprise server platforms towards
  Intel.
• The push towards Intel hardware implies that
  Windows and Linux will come to dominate the data
  center.
• Windows and Linux are the only Intel capable
  Operating Systems with large scale vendor
  support.
• All major software vendors, be they ERP vendors
  (eg. PeopleSoft, SAP), database vendors (eg.
  Oracle, IBM, SoftwareAG), offer some or all of
  their product line on Windows and/or Linux.
• Implication Over the next 10 years the
  Enterprise data center will become dominated by
  Intel capable operating systems, meaning
  Microsoft Windows and Linux.

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These trends are visible within the states IT
environment

• No new mainframe application has been deployed
  since 1997.
• The state's IT infrastructure is no different
  than any other new applications are deployed on
  Windows and Linux.
• Support for the state's IT infrastructure is
  under stress
• The majority of the state's core business
  processes are dependent on the mainframe.
• All new applications are deployed elsewhere.
• Question Do we focus on the new, or the old? If
  the new, how do we assure continuity of critical
  business functions? If the old, how do we prepare
  for the future? What does the future look like?

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Future State Datacenter

• Business Critical Applications will be hosted on
  Windows or Linux on Intel Compatible hardware.
• This is simply an acknowledgement of market
  direction Windows/Linux on Intel.
• End-of-life, or outsourcing, dates must be
  established for legacy platforms such as the
  Mainframe.
• Without these sunset dates it becomes almost
  impossible to provide adequately trained staff or
  plan IT investments.Implication It is time to
  assess the future of the mainframe. At present a
  gradual, evolutionary process is leading away
  from the mainframe. Is it time to be more
  proactive?

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Moving towards the future

• The critical business functions currently
  supported by the mainframe require a stable and
  reliable technology infrastructure.
• This environment can be provided in one of four
  ways
• Maintain the current mainframe environment
• Outsource the Mainframe environment.
• Rewrite current applications.
• Migrate current applications to another platform.
• Today, in the interests of time, we will focus on
  the cost of the current mainframe environment and
  the possibility of migrating current
  applications.

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Current Mainframe Environment Cont.

• Annual Hardware Costs
  450,000 (12)
• Annual Software Costs
  2,450,000 (65)
• Annual Labor Costs
  890,000 (23)
• Total Annual Cost 3,790,000
• (Hardware/Software 2,900,000)
• Software maintenance and licensing fees are the
  largest single component of the annual cost of
  the current mainframe environment.

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Mainframe Migration

• Migration involves taking the existing
  applications and porting them to a different
  operating environment.
• The existing mainframe applications would be
  modified to run on a UNIX or Windows platform
• This is not an application rewrite little if any
  change in functionality will result.
• Aging applications that need replacement will
  remain aging applications that need replacement.
• Migration can offer dramatically lower operating
  expenses.
• Migration will move the state's IT infrastructure
  towards the desired Future State.

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Option 4 Estimated Migration Costs Cont.

• The estimated one time costs of the migration
  are
• Development Cost 4,000,000
• Project Management 200,000
• Software Acquisition 1,300,000
• Hardware Acquisition 300,000
• Testing/Training Costs 500,000
• Total One Time Costs 6,300,000
• Note Testing will require significant agency
  resources the cost of these resources is not
  included.

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Option 4 Estimated Migration Costs Cont.

• Ongoing cost consist of Hardware, Software, and
  Labor costs.
• Annual Hardware Costs 275,000 (15)
• Annual Software Costs 700,000 (37)
• Annual Labor Costs 890,000 (48)
• Total Annual Cost 1,865,000
• (Hardware/Software 1,075,000)
• The number of FTEs is kept constant in the new
  environment. This will assure consistency of
  service levels.
• Note the major reduction in Annual Software costs
  as compared to the mainframe 2,450,000 for the
  mainframe vs. 700,000 for the new environment.

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Comparing Ongoing Annual Costs

• Current Mainframe Cost 3,790,000
• Future Mainframe Cost 4,030,000
• Outsourcing Cost 5,100,000
• Migrated Environment Cost 1,865,000
• Outsourcing increases annual operating costs by
  more than 1,000,000 and will not be considered
  further.
• Migration offers a reduction of 1,925,000 in
  operating costs from current levels, and a
  reduction of 2,165,000 in when compared to
  future mainframe cost.
• With a project cost of 6,300,000 this reduction
  translates to payback within 2 biennia.

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Putting it all together

• Migrating from the mainframe positions the
  state's IT infrastructure for the future.
• Migrating applications provides no change in
  functionality aging applications that need
  replacement remain aging applications that need
  replacement.
• Migrating from the mainframe can reduce annual
  operating expenses by as much as 2,000,000
• With a project cost of 6,300,000 this reduction
  offers payback within 2 biennia.

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Questions?
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Instant Messaging

• Gary J. Vetter
• Groupware/EDMS Supervisor

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http//www.state.nd.us/ea/activities http//www.mi
crosoft.com/livecomm

• Questions?

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Standard Intervals for Telecommunications Services

• Jerry Fossum, Director
• Telecommunications

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Service Standard Interval
Standard Intervals
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Questions?
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Customer Survey Password Resets

• Dan Sipes, Director
• Administrative Services

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Password Resets

• Please have users populate security database for
  password resets
• Increasing issue due to consolidation and
  Peoplesoft deployment
• Application can be found under the Security
  Section of ITD web site
• Contact Al Veit for more specific
  details328-3173 aveit_at_state.nd.us

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Virus Update

• Variation of W32.SPYBOT.WORM
• Basically a DOS attack against authentication
  servers
• Most local administrator accounts on workstations
  are locked
• Protection measures
• Update to latest version of virus definitions
• Force a system scan to remove the virus
• Apply Windows patches
• Utilize ITDs Windows SUS Server to keep current
  on Windows workstation patches
• Contact Sean Wiese for more details 328-1985
  swiese_at_state.nd.us

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Thank you!!