Information and Communications Technology (ICT) in the State of Texas June 20, 2007 Brian S. Rawson Brian S. Rawson Chief Technology Officer The Great State of Texas
Information and Communications Technology
(ICT) in the State of Texas
June 20, 2007
Brian S. RawsonBrian S. RawsonChief Technology OfficerThe Great State of Texas
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Agenda Setting the Stage
Shared Success Model for Shared Success Strategic Business Goals Core Principles Critical Issues
Managed Services Data Center Services TexasOnline.com Converged Communications
ICT Commodity Procurement Overview Program Growth Customer Base Competitive Sourcing Vendor Opportunities
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Setting the StageEverything is bigger in Texas
Population23.5 million people 1,500 cities254 counties
The Dallas/Fort Worth Metroplex population exceeds the populations of 31 states
Brewster County can fit Connecticut, Delaware and Rhode Island within its borders
Education4.5 million public school children7,935 school campuses 1,033 school districts and 194 charter schools415,000 public higher education students 143 institutions of higher education
State government151 state agenciesEmploy 142,300 people In Austin alone, 45 state office buildings total more than 9.7 million sq. ft.
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ICT in Texas State Government Number of IT workers
5,000 IT workers in state government 11,000 IT workers in higher education
Total IT spend:$1.4 billion is the total IT spend for state government
InfrastructureData Centers
30 state government data centers
32 higher education data centers
51 total mainframes
11,000 servers
Personal Computers 120,000 desktops in state government
580,000 desktops in higher education
25,000 laptops in state government
275,000 laptops in higher education
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DIR’s Role in Statewide Technology DIR’s Charge
Effective planning, implementation and management of a statewide technology infrastructure that supports agency business operations
Pooling the purchasing power of government and leveraging it to drive down costs and add value to ICT purchases for state government entities
Adopting statewide technology rules and standards that contribute to effective enterprise management of ICT
Promoting security of state data and networks
Key OperationsTexasOnline.com, the Official State of Texas WebsiteData Center ServicesTelecommunications and IP NetworkSecurity ICT Cooperative Contracts Program
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Our Model for Shared Success
Agency Business outcomes for Texas citizens…our top priority
Collaboration Shared development of guidelines and practices for enterprise interoperability
Statewide Infrastructure Shared services foundation for utility-based information and communications technology (ICT) services
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Shared Vision for Texas
Maximize the value of our investments by working together to advance our missions
Shared success will be achieved through Enhancing flexibility to innovateClear commitmentsOpen and honest communicationsCollaboration that leverages the
shared strengths of agencies, education, local governments and the private sector
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Reduce government costs
Drive effective technology contracting
Leverage shared technology operations
Promote innovative use of technology that adds value
Protect technology and information assets
Strategic Business Goals
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Our Core Principles Business-Driven Approach
adopting sound, proven, value-driven business practices that are in line with statewide strategic goals and objectives
Collaborationengaging stakeholders to maximize resources, knowledge, and expertise that is shared across the enterprise
Accountabilityapplying a consistent method for assessing outcomes against clearly defined standards for success
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Critical Issues Adequate funding for data
center costs
Enhanced IT security for state agencies, including universities
Improved management and oversight of state IT projects
Consolidation of state IT planning and reporting requirements
Increased ability for agencies to use TexasOnline.com
Streamline IT procurement authority and oversight
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“Vision without a strategy and execution is simply an interestingstory.”
— Mark HurdCEO, Hewlett Packard
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Managed Services – Data Center Shared Services
Consolidating data centers across 27 state agencies
Consolidation Goals
Reduce statewide costs for IT infrastructure
Improve or maintain computing service levels
Enable agencies to focus on their missions and critical functions
Raise security and disaster recovery capability to a consistent standard across the state
Increase flexibility to position state to respond to changing needs
Guiding Principles
Do no harm during or as a result of consolidation
All services remain at current service levels or better
All data center and disaster recovery changes will be transparent to end users
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Managed Services – Data Center Shared Services
Consolidation Business Case
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Managed Services – Data Center Shared Services
Robust, commercial-grade processes Formal service levels that are tracked and reported Enterprise wide asset management and chargeback system Structured problem and change management
Predictable costs Standardized service charges, pay based on consumption Dramatically reduces capital request spikes Five year refresh on servers
Enhanced Security, Facilities, and Disaster Recovery Increased physical and information security Security standards across agencies Upgraded Data Center infrastructure (Tier III)
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Managed Services – TexasOnline.com
Ranked #1 in the nation (2006) Best revenue sharing model in the US
Complete English/Spanish content
Texas Emergency Portal
Texas Business Portal4 Steps to Start a BusinessConsolidated Business App
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Managed Services – TexasOnline.com
TexasOnline.com is self-funded public – private partnership
The State of Texas benefits
Over 800 online services
No state government funding or financial risk
Convenience fee revenue share20% of gross receipts50% of net receipts
Projected $36 million in revenue
Ownership of portal and application infrastructure
$3 billion citizen transactions
$1+ million transactions/month
Cumulative State Revenue ShareCumulative State Revenue ShareFiscal 2001-2010
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Managed Services – Converged Communications
Traditional Communications Strategy
Legacy customers were responsible for building and managing IP services using commodity telecom products and services
DIR’s role was to “deliver communications services”
New communications strategy Enabled by increased functionality on the IP based communications
platform
Allows DIR to provide a secure, standards based, shared infrastructure that supports convergence
Offers an array of managed services solutions that deliver business value to DIR’s customers
Enables customers to minimize the challenges presented with technology change and increasingly complex deployment of new communications solutions
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Managed Services – Converged Communications
Enhanced Business Value will be accomplished by
Providing an array of consumable communications services that better support or enhance the customer’s existing business processes
Enabling customers to direct more of their time, effort and resources towards achieving core missions
Achieving higher cost efficiencies through demand aggregation, statistical oversubscriptions and communications convergence
Enhancing network security and business continuity
Positioning DIR to be a more effective service advocate for customers by having a better understanding of their business environments and service requirements
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ICT Cooperative Contracts – Overview
Creates savings for taxpayers by aggressively leveraging the state’s buying power to lower prices and obtain best value
Optimizes the purchase of ICT commodities and services
Streamlines process for customers Reduces duplicate efforts Reduces purchasing and contract cycle time
Provides IT subject matter expertise
Simplifies the sales process for vendors
336 Cooperative Contracts
332 Go-Direct contracts 157 resellers 110 HUB prime contractors 94 HUB resellers
4 Non-Go-Direct
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$586
$805
$968 $1 Billion
2004 2006 2007 2008
ICT Contract Spend(in Millions)
Actual Projected
ICT Cooperative Contracts – Program Growth
Growth reflects aggressive customer-centric approach
Total ICT Contract Spend
44% growth in just 2 years (FY 05-06)
FY 07: $970 million projected
FY 08: over $1 billion projected
Contracts available to public entitiesnationally
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ICT Cooperative Contracts – Customer Base
Growth reflects aggressive customer-centric approach
Total ICT Contract Spend
DIR Customer Base
Market Segment Analysis55% Education25% Local Government20% State Government
Market Segmentation
Local Gov't
State Gov't
Education
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ICT Cooperative Contracts – Customer Base
Growth reflects aggressive customer-centric approach
Total ICT Contract Spend
DIR Customer Base
Market Segment Analysis
Over 2,800 active customers in Texas
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ICT Cooperative Contracts – Customer Base
Growth reflects aggressive customer-centric approach
Total ICT Contract Spend
DIR Customer Base
Market Segment Analysis
Over 2,800 active customers in Texas
36 other states were customers in FY 06
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ICT Cooperative Contracts – Sales by Region
3 2 1 4 5 7 6 8
* Tele Go DIRect sales of $55 M were distributed to regions via pro-rated percentage of sales.
Reg. 5
$31 M
Reg. 2
$188 M Reg. 8
$19 MReg. 7
$22 M
Reg. 6
$20 M
Reg. 1
$182 MReg. 3
$276 M
Reg. 4
$65 M
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ICT Cooperative Contracts – Sales by Commodity
$4.1 MVideoconference Equipment
$805.1 MTOTAL
$5.1 MMaintenance (hardware, software)
$6.4 MTraining
$8.0 MData Storage
$35.1 MPrinters
$47.9 MOther (peripherals, projectors, scanners, cameras, etc.)
$54.8 MServices
$55.2 MTelecommunication Commodities (wireless communications, Internet access, etc.)
$84.5 MNetwork
$97.6 MSoftware
$406.2 MComputers (desktops, notebooks, servers, etc.)
FY 06 SALES
COMMODITY TYPE
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ICT Cooperative Contracts – Competitive Sourcing
Continuous Improvement
Emphasis on Business-Driven, Collaboration, and Accountability Principles
Drive contracting value by providing state-of-the-art purchasing and contracting services that embody private sector best practices New organizational structure realigns skill sets to concentrate on strategic
supply chain management Focus on using market intelligence and analytics to improve sourcing
strategies, techniques, and tools Reduce contract cycle time and improve ability to address customer needs Implement technology tools National marketing strategies with selected partners
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ICT Cooperative Contracts – DIR Supply Chain Services
Three business units interact to provide comprehensive, integrated supply chain services:
Customer Services – Identify contracting opportunities and customer needs
Sourcing Analytics and Solutions – Provide business analytics and intelligence to develop new contracts, prioritize contracting opportunities, and implement new sourcing strategies
Contracting and Procurement Services – Ensure contractor accountability through timely execution of contracts and diligent contract monitoring
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ICT Cooperative Contracts – Current Opportunities
Current Contract Initiatives
Lists initiatives by procurement phasePlanningRFO Postings – links
directly to postings on Electronic State Business Daily
EvaluationRecent Awards
Each initiative has a brief description, expected phase completion date, and contact information
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ICT Cooperative Contracts – Monthly Bulletin
DIR Contracts Bulletin: dir.state.tx.us/store/contractsbulletin.htm
The Official website of the Great State of TexasThe Official website of the Great State of Texas
Visit TexasOnline.com
and and The #1 State Portal in the United StatesThe #1 State Portal in the United States