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Delivering Value to the Mission: The Case for IT Consolidation & Optimization

Adrian Farley

CTO & Acting Director of Technology Services

Sacramento HDI – April 21, 2011

By the Numbers – State BudgetAnnual Budget: $127.37 billion

General Fund: $84.6 billion

K-12 Ed: $36.2 billion

HHS: $21.2 billion

Higher Ed: $9.8 billion

Corrections: $9.1 billion

Governor has proposed balanced solution to address $25.4 billion General Fund budget deficit.

$12.5 billion program cuts (approved by Legislature)

$14 billion in revenue solutions

$1 billion reserve fund

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By the Numbers – IT Budget

• IT Budget: ~$4.5 billion– Executive Branch: $2.8 billion– General Fund: $0.9 billion

Executive Branch• IT Projects: ~$700 million

– General Fund: $200 million– Project Portfolio: $6 billion over 9 years

• Hard/Software: ~$900 million• Telecomm/Net: ~$400 million• IT Staff: ~$900 million

– Total Staff FTE: 10,000

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Why consolidate and optimize?

Provide better services to Californians

Improve data management and security

Improve cost effectiveness

Position the State to do more with less

Reduce the State’s carbon footprint / improve stewardship of environmental resources

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Key Drivers

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Consolidation & Optimization

Increase Agility

Reduce Cost of Service Delivery

Manage Risk

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IT Consolidation & Optimization Focus

The Infrastructure Consolidation Program (ICP) reflects best practices being applied by private and public sector industries across the country and throughout the world. Infrastructure consolidation focuses on:

establishing standards,

streamlining operations,

leveraging economies of scale,

centralizing resource pools to establish centers of excellence,

improving cost management, and

establishing infrastructure that supports increased flexibility, security, and reliability of business programs and services.

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Benefits for Californians

Improved access to servicesImproved security of personal dataImproved allocation of tax dollars in support of critical servicesImproved stewardship of natural resources

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Benefits to State Agencies

Improved reliability for critical business applications.Decreased time required to implement new business applications and infrastructure.Increased technical career and staff development opportunities.More modern infrastructure upon which to work

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Thank You