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Adam FinlaysonJanuary 2015

Title

IT Transformation

Strategy

Stan Waddell, PhDJanuary 2015

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Session Overview• In this session, we will discuss aspects of IT

transformation that enable a robust, nimble, and

customer-centric IT infrastructure. Topics will include

enabling the business, reducing IT-related costs, andincreasing IT operational efficiencies by growing the

adoption of centralized services and increased

campus partnerships. These goals boil down to

becoming the "service broker of choice" for both on-and off-premises infrastructure services and reaping

the benefits of enhanced centralization.

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Session Outcomes

• Discuss strategies to achieve the goal of

becoming the broker of choice

• Define ways to renovate the IT core and

standardize processes

• Describe possibilities to consolidate

operational areas

• Discuss ways to reinvest in additional

technologies

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Chapel Hill Central ITS Goals

• Exceed expectations for service delivery

• Become the service provider of choice

 – Offer our services in a way that customers havecome to expect

 – Service ordering, fulfillment, and billing wrapped

up in neat (easy-to-understand) packages

 – Competitive value with acceptable charge rates

for departmental use

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Excellence, Product Leadership or Customer

Intimacy?• Setting a strategic priority in order to

complete – Walmart and Marriott are examples of companies that focus on

operational excellence – Companies like Apple, Sony, and Microsoft focus on product

leadership

 – Marriott and AAA are companies that focuses on customer intimacy

• My IT organization chooses to compete based on

operational excellence

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Northwestern University

Weinberg College IT Goals

• Primary broker/provider of IT services and

support to College

• Serve as consultant, facilitator, and advocate

for service delivery

• Enable outcomes that offer high impact to

teaching and research

• Core values: agility, accountability, curiosity,

discernment, transparency

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STANDARDIZERENOVATE

REINVEST

IT TRANSFORMATION

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Strategies for achieving Transformation

Entice adoption of centralized services based on

operational excellence1 all while enhancing customer

intimacy and service delivery expectations1. Renovation of the IT core,

2. standardizing processes and consolidating

operational areas,

3. and reinvesting in additional technologies that will

also increase the efficiency of IT operations.

1. Discipline of Market Leaders by Michael Treacy and Fred Wiersema

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Renovating the Core

• Completing Network Lifecycle

• Establishing Campus Wide Wireless Coverage

• Creating I&O Capital Lifecycles w/budget

• Creating Standardization

• Building in security processes

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Standardization

• Adopting a single platform for server delivery

using technologies like VMWare and CISCO

Unified Computing Systems

• Having Greater adoption of service

management best practices

• Realigning like operations for gains in

efficiency and process standardization

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Reinvesting

• New technologies and implementations

• Integrated Compute and Storage (UCS)

•

Server Catalogues• Service Portals

• Remote Access Points

• Cloud Technologies• Identity Management

• Mobile Technologies

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Deploying Cloud vs on-prem services

• Services in the Cloud

• Completing Voice over IP

•

Starting Office 365• Expanding the use of virtualization

 – Virtual Desktop Infrastructure

 –Server Virtualization

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Potential BenefitsThe University could benefit from:

Increased security

Better technical staff efficiency

Reductions in departmental computer room squarefootage

Deeper collective purchasing discounts

Decreased complexity

Reduced power and cooling costs

Hardware, software, and labor cost savings

Utilization of professionally managed data centers

Departmental focus on local service yielding better campus

technology experiences

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Considerations for Consuming Central Services

• Does this service solve my complete problem?

 – Does it support my hardware, operating systems?

• Is the solution the right size?

 – Will I be paying for more than I need?

• Do I have have adequate control?

 – Or can I rely on quick turnaround from central?

• Distributed units need to be educated about

hidden costs and opportunity costs 15

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Discussion Question and workgroup

exercise• What would entice you to migrate your

servers to a central offering

• What would keep you from migrating to a

central offering

• Audience Count are you currently centrally

hosting – Between 80% and 100% of your servers

 – Less than 80% but more than 50%

 – Less than 50 %

 –

0% 16

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Opportunity Detail

OPPORTUNITY A

20% migration of non-

ITS departmental

PHYSICALservers

to ITS as virtual servers.

407 servers

OPPORTUNITY B

20% migration of non-

ITS departmental

VIRTUALservers

to ITS as

virtual servers.

407 servers

OPPORTUNITY(A+B)

Enhanced

20% migration of non-

ITS departmental

ALL servers to ITS asvirtual servers, with

increased efficiency

in ITS server/host

environment from 25:1

to 40:1.

815 servers

OPPORTUNITY C

ITS-managed VIRTUAL

servers

increasing efficiency

of server/host

environment

ratio from

25:1 to 40:1.

696 servers

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Total Cost of OwnershipCost (presuming 4 year life cycle)

• Annual cost of low-end physical server $791 HW, $2752 Total

• Annual cost of virtual server @ 25:1 server/host ratio $530 HW, $1511 Total

• Annual cost of virtual server @ 40:1 server/host ratio $375 HW, $1356 Total

• Annual ITS virtual physical server hosting 25 $13,261 HW, $15992 Total

epartmenta

Physical

@ 25 server/host @ 40 server/host

Annual Hardware cost (4 yr life) 228$ 110$ 69$

Power / Cooling 513$ 62$ 38$

Software VMWare -$ 59$ 37$

Cost of Storage / Backup 50$ 300$ 188$

Other -$ -$ -$

Total Hardware Cost 791$ 530$ 332$

add GB @ $7K per 256 GB to support 40:1 environment 44$

Total Hardware Cost with add'l memory 791$ 530$ 375$

Estimated System Administration Charges 1,667$ 833$ 833$

Estimated Space Charges 295$ 147$ 147$

Total Hardware Cost including System Admin and Space 2,752$ 1,511$ 1,356$

Physical: HP ProLiant ML310e, 1 proc, 1 year 24x7 sup, 1 hard drive, 8 GB ram

ITS Virtual: HP DL380P High end server, 2 proc, 3 yr 24x7 sup, 2 hard drives, 256 GB ram

ITS Virtual Server

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Savings Summary

OPPORTUNITY A

20% migration of non-ITS

departmental PHYSICALservers to ITS as

virtual servers.

$445k annual savings

($106k hardware), 407

servers.

$60k Space savings for 3,000ft2.

$505k total annual

savings.

OPPORTUNITY B

20% migration of non-ITS

departmental VIRTUALservers to ITS as virtual

servers.

$339k annual savings

($0K hardware), 407 servers.

$60k Space savings for 3,000

ft2.

$399k total annual

savings.

OPPORTUNITY(A+B)’

20% migration of non-ITS

departmental ALL servers toITS as virtual servers, with

increased efficiency of

server/host ratio.

$911k annual savings

($232k hardware), 815

servers.

$120k Space savings for6,000 ft2.

$1,031k total annual

savings.

OPPORTUNITY C

ITS-operated VIRTUAL

Servers increasing efficiencyof server/host ratio.

$108k annual savings k

($108k hardware), 692

servers.

$0k Space savings for 0 ft2.

$108k total annual

savings.

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Discussion Question and workgroup

exercise• What other costs have we not considered

• Pick 3 and rank them 1 through 3

•Are your costs? – Higher

 – Roughly the same

 –

Lower

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Distributed Datacenters

• Might save money for the distributed unit

•

Increases risk to the unit and university – Physical security

 – Compliance

 – Flood; fire; disruption to electric, cooling

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Some Actions taken thus far•

Consolidated IT infrastructure Operations withFinance and Administration

• Developed Enhanced infrastructure support

model with Nursing• Consolidated ITS Virtual Server operations

Consolidation some commodity services with

Research Computing• Consolidated OS management within I&O

• MS Office 365 Cloud migration planning

• Deployment of Platform as a Service hosting

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Further steps to take

• Complete Inventory

• Standardize where possible

•

Consolidate Like Operations• ACTUALLY replace superseded/deprecated

services

•

Expand Automation/Orchestration Capabilities• Expand upon the service desk concept

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Executive Support Items

• Directive, suggestion , or enticements to

support the initiative

• Communication of strategy to support shared

services

• Additional funding to reduce barriers to entry

and ramp up costs

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Shared Services

• Are the new rage in higher education

• Some possible offerings might include

 – Backup management

 – Disaster recovering

 – Desktop management, remote administration

 – Virtual desktops

 – Helpdesk and tier one support

 – File sharing and collaboration

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What is the value proposition of distributed IT?

• Closer to the client

• Understands their unique needs

• NOT replicating central services

What are distributed IT units doing that can be

done centrally?• New services

• Improvement of services to fit existing needs34

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Discussion Question and workgroup

exercise• What are some possible IT shared services

options that would be beneficial

•

Pick 3 and rank them 1 through 3

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Questions

• Thank you for your time!

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