October 20, 2004Mike J. Ressler, Deputy CIO

& Director of Operations

Presentation to theIT Directional

Meeting

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1. ITD Annual Report – Mike Ressler2. ITD Customer Service Division – Mike Ressler3. IT Planning Activities – Nancy Walz4. Enterprise Architecture Activities – Nancy Walz5. Project Management Activities – Nancy Walz6. Testing Tools – Selected Segue – Marlys Jangula7. Functional Consolidation Recap – Dean Glatt

8. Mainframe Migration Update – Cost Savings – Jeff Carr

9. Instant Messaging – Gary Vetter10. Standard Intervals for Telecommunication Services –

Jerry Fossum11. Customer Survey – Dan Sipes12. Password Resets – Dan Sipes

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Nancy Walz, Director

IT Policy & Planning

IT Planning ActivitiesEnterprise Architecture Activities

Project Management Activities

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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

EA ActivitiesPC / Laptop RFP – intent to award

Specification and Quantity

Typical WSCA Price

RFP Price Potential Cost Avoidance over 4 years

Office Automation PC w/ 17” CRT (~5000)

$1,073 $665 $2,040,000

Mainstream Laptop (~1000)

$1886 $1334 $552,000

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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

SITAC Project Ranking1 ND Public Safety Mobile Communications2 MMIS Rewrite 3 CJIS - Establish services to support deployment

 4 Integrated Tax System 5 CAD - Computer Aided Dispatch 6 ITAG** 7 Mainframe Migration 8 AS/400 Migration 9 Time and Labor10 Enhanced Support Center11 GIS12 HIPAA

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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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Marlys Jangula, Manager

Software Development

Testing Tools – Selected Segue

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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 Software’s 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@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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Dean Glatt, Director

Computer Systems Division

Functional Consolidation Recap

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Consolidated Services

Service# of Agencies

Fully Consolidated

# of Agencies Partially

Consolidated

Electronic Mail 5 0

File and Print 25 0

Database 5 1

Storage 3 0

Application Server 10 3

Web Hosting Services

11 0

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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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Jeff Carr

Systems Architect

Mainframe Migration Update

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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 – G&F, ITD, Health, others• Mainframe – DHS, BND, ITD, OMB,

DOT, Tax, others• HP/UX – BND (Cash Management)• Apple OS/X – Water Commission

Note: 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 state’s mainframe:– These applications include the tax system, several

DHS systems (MMIS, VISION, FASCES, etc.), Driver’s License, BND’s 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 state’s 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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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.

Option 4: Estimated Migration Costs Cont.

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Comparing Ongoing Annual Costs

Current Mainframe Cost $3,790,000Future Mainframe Cost $4,030,000Outsourcing Cost $5,100,000Migrated 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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Gary J. VetterGroupware/EDMS Supervisor

Instant Messaging

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Jerry Fossum, DirectorTelecommunications

Standard Intervals for Telecommunications Services

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Service Standard IntervalService Standard Interval

Telephone Moves, Adds and Changes 5 Business Days Disconnect 2 Business Days Voice Menu and ACD Changes 2 Weeks Installation of New Wall Jack 7 Business Days

Network Network Port 3 Business Days Wide Area Network Connection

T1 DSL Cable

4 Weeks

IP Admin Request IP DNS

2 Business Days

Network Disconnect Port Circuit

Next Business Day

Installation of New Wall Jack 7 Business Days

Non-Standard Services OC3 DS3 Fiber Installation of More Than 1 Wall Jack

Custom Per Project

Wireless WAN Connection(s)

Standard Intervals

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Dan Sipes, DirectorAdministrative Services

Customer SurveyPassword Resets

ITD Overall Performance Measures

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Professionalism &Courtesy

Know ledge Timeliness Quality Value

Very Satisf ied

Satisf ied

Dissastisf ied

Very Dissastisf ied

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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 details

328-3173 aveit@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 ITD’s Windows SUS Server to keep current on Windows workstation patches

– Contact Sean Wiese for more details

328-1985 swiese@state.nd.us

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