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Reducing Your IT Costs Welcome What do you hope to learn today? Please take a moment to fill out a yellow card. Our presenters will review the cards to ensure we cover the topics of interest. We will collect them before we get started. Thanks! Maury Weinstein President System Source 410-771-5544 x4319
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Welcome [] · 2019-08-05 · OML 1 OML 2 OML 3 OML 4 OML 5 Technology Standards Standards not defined without goal to standardize. ... to last replication interval Virtual Machine

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Page 1: Welcome [] · 2019-08-05 · OML 1 OML 2 OML 3 OML 4 OML 5 Technology Standards Standards not defined without goal to standardize. ... to last replication interval Virtual Machine

Reducing Your IT Costs

Welcome

What do you hope to learn today?

Please take a moment to fill out a yellow card.

Our presenters will review the cards to ensure

we cover the topics of interest.

We will collect them before we get started.

Thanks!

Maury Weinstein

President

System Source

410-771-5544 x4319

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Page 3: Welcome [] · 2019-08-05 · OML 1 OML 2 OML 3 OML 4 OML 5 Technology Standards Standards not defined without goal to standardize. ... to last replication interval Virtual Machine

Agenda Run, Grow and Transform

IT Maturity Level

Controlling Personnel Costs

Smart Investing

Measuring Progress

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Assigning Responsibilities for Run, Grow and Transform

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Outsource Run So You Can Grow & Transform

“Run” “Grow”

“Transform”

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IT Maturity Level - OperationsOML 1 OML 2 OML 3 OML 4 OML 5

Technology

Standards

Standards not

defined without

goal to

standardize.

Technology

purchased without

IT approval.

Key standards

partially developed

with no timeframe

for compliance.

Standards largely

developed without

compliance. IT

purchase approval

sought but

exceptions

frequently made.

Standards

developed and

organization driven

towards standards.

CxO level beginning

to support

standards.

Technology

standards

completely defined,

and documented

with CxO support.

Standards key part

of every technology

decision.

Utilize system

and service

management

tools

Ad hoc use of

point solution

tools. Little or no

automation,

documentation or

analysis.

Reduced number of

tools. Basic

automation and

documentation

performed semi-

consistently.

Basic integrated

tools. Workload

analysis toward

automation and

problem reduction.

Investment in

integrated toolset.

High SLA

compliance and

reporting. Basic

manpower

planning.

Fully integrated

systems with

manpower planning.

SLA and exception

reporting.

Automation enables

lower cost staff.

Document

and train its

operating

processes

Little or no formal

documentation

and rarely

updated. Vendor

technical or

hands-on training,

Some basic

process

documentation but

not updated

frequently. Each

function uses own

process

documentation.

“Process to create

a process” in place

with moderate

compliance.

Progress on

systematic listing of

process.

Major process flow

charted.

Compliance to

process creation

and documentation

is high. Refresh is

formal and

consistent.

Virtually all

processes are

designed and fully

documented before

the process is put in

place.

External

support model

Reactive – Time &

Materials

Recurring Scheduled Hours (Professional

Affordable IT)

Managed Services

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Managed Services Definition: Remotely provided IT services at a fixed

price with a service level agreement

Replaces today’s desk side services and reactive

support

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Printer Management Much of the avoidable printer expense is:

Help desk tickets to fix/re-supply

Premium priced OEM toner

Supplies leftover when printer no longer needed

Supplies purchasing costs

One client saves $6,840 annually using managed

print service for 20 printers

Free surveys estimate savings accurately

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Controlling Personnel Costs Personnel scheduling and assignment

Proactive

Recruitment stress penalty

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Personnel SchedulingControlling Utilization

Ticket entry data prompts you to:

Study demand patterns

Schedule personnel accordingly

Move non-customer facing time off peak hours

i.e. meetings or special projects

Use part time personnel for peak periods

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Personnel SchedulingMatch Supply and Demand

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Removing Costs from Resolution Path

Requests from ticket system,

phone or email

Assign to appropriate

level

Users receive ticket updates automatically

Ticket held a day after close

to ensure resolution

Single question

satisfaction survey sent

Departments without or not using ticketing systems

spend too much in triage or assign to wrong help

desk level – usually doubling ticket expense

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I know which

computer has a

virus!

Proactivity Drives Utilization

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Proactivity Drives Cost Savings35% Patch

Score!

Increased to 91%

with attention

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Recruitment Stress Penalty

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Recruitment Stress Penalty

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Smart Investing Set Recovery Time and Point Objectives first

ROI before you buy

Common sense purchasing

Office 365 (SaaS)

Amazon Web Services (IaaS and DaaS)

Workstation replacement cycle study

Gartner Hype Cycle

Prioritize security purchases

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Recovery Time and Point Objectives for

Lower Downtime Costs

$100/pp/day average cost

at 50% productivity loss

Cost = labor to restore

transactions lost

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Implementing Recovery Time & Point ObjectivesRecovery

Scenario:

Recovery Point Objective

(RPO)

Recovery Time Objective (RTO)

Short (hours)

RTO - Medium

(less than 1 day)

RTO - Long

(multiple days)

Single Server

to last backupVirtual Machine backed up locally

with Veeam

Backup Exec to disk for VMDK

Backup Exec to disk for

physical servers

Tape backup

Cloud backup

to last replication interval

Virtual Machine with vSphere

Replication

Veeam Replication

SAN snapshot

Zerto Replication to AWS

NA NA

Multiple

Servers

to last backup NA

Backed up locally with

Veeam Backup Exec to

disk for VMDK

Backup Exec to disk

for physical servers

Tape backup

Cloud Backup

to last replication intervalVirtual Machines with vSphere SRM

Veeam Replication

SAN snapshot

vSphere Replication w/o

SRM

Zerto to AWSCloud Backup

Individual

Itemto last backup

Virtual Machine backed up with

Veeam Enterprise

Backup Exec with GRT and

applicable agent to disk for virtual or

physical servers

Cloud Gateway

NATape backup

Cloud backup

$100/pp/day average

downtime cost at 50%

productivity loss

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Office 365 Exchange versus On-Premise ROI

Initial Cloud Investment Year 1 Cloud Savings Year 2 Cloud Savings Year 3 Cloud Savings Year 4 Cloud Savings Year 5 Cloud Savings Year 6 Cloud Savings Year 7 Cloud Savings

(11,386)$ 46,506$ (360)$ (360)$ 46,506$ (360)$ (360)$ 46,506$

Savings Through Year X 35,120$ 34,760$ 34,400$ 80,906$ 80,546$ 80,186$ 126,692$

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Totals

Traditional On-Premise Deployment

Hardware (Including Server Licensing)

Exchange Server Hardware 8,934$ 8,934$ 8,934$ 26,802$

SharePoint Server Hardware 13,152$ 13,152$ 13,152$ 39,456$

Lync Server Hardware -$ -$ -$ -$

Licensing

Exchange CALs 4,080$ 4,080$ 4,080$ 12,240$

SharePoint Standard CALs 5,700$ 5,700$ 5,700$ 17,100$

Lync CALs -$ -$ -$ -$

eCAL -$ -$ -$ -$

Office Pro Plus -$ -$ -$ -$

Support

Exchange User Support 5,004$ 5,004$ 5,004$ 5,004$ 5,004$ 5,004$ 5,004$ 35,028$

SharePoint User Support 5,004$ 5,004$ 5,004$ 5,004$ 5,004$ 5,004$ 5,004$ 35,028$

Full Suite Support -$ -$ -$ -$ -$ -$ -$ -$

Consulting and Migration

Exchange Migration Costs 7,500$ 7,500$ 7,500$ 22,500$

SharePoint Migration Costs 7,500$ 7,500$ 7,500$ 22,500$

Office Migration Costs*

Administration

Exchange Administration 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 31,500$

SharePoint Administration 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 4,500$ 31,500$

Lync Administration -$ -$ -$ -$ -$ -$ -$ -$

Total 65,874$ 19,008$ 19,008$ 65,874$ 19,008$ 19,008$ 65,874$ 273,654$

Cloud Based Deployment

Microsoft O365 Fees 5,760$ 5,760$ 5,760$ 5,760$ 5,760$ 5,760$ 5,760$ 40,320$

O365 Enhanced User Support 10,008$ 10,008$ 10,008$ 10,008$ 10,008$ 10,008$ 10,008$ 70,056$

Enhanced Server Support 3,600$ 3,600$ 3,600$ 3,600$ 3,600$ 3,600$ 3,600$ 25,200$

One-time Migration Costs- Exchange 3,886$ 3,886$

One-time Migration Costs- SharePoint 7,500$ 7,500$

One-time Migration Costs- Lync -$ -$

Total 19,368$ 19,368$ 19,368$ 19,368$ 19,368$ 19,368$ 19,368$ 135,576$

(11,386)$ 46,506 (360) (360) 46,506 (360) (360) 46,506 138,078

User Count

60

SAVINGS

ANALYSIS

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Common Sense Purchasing

Track contract renewal and notice periods

Licensing purchase consolidation

“Sleep” versus “normal” savings is $25/year for 16

hours a day (plus HVAC savings)

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Server ConsolidationServer sprawl can occur when engineers add a server for each new

application. Though this makes configuration and test easier pre-

production, consolidation may yield long term cost savings for:

Domain Controllers – who needs extra Active Directory

synchronization traffic anyway?

SQL servers – a properly scaled system can handle > couple

databases

Remote Desktop (RDS) or Citrix servers

Web servers

Stop when further reduction either:

Lowers redundancy below your risk tolerance

Impacts performance below user expectations

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Office 365 Your Microsoft license expense should benchmark

against a $5/user/month standard (<300 users)

Office 365 Skype for Business might be the standard

finally replacing business travel time/expense

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AWS Costs Tend Lower • Turn off when in use

• Scale larger/smaller easily

• Massive AWS scale

• Pay only for storage used

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Controlling the Cost Dial

I see a

trend.

How can I

optimize?

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Computer Replacement Cycle Intel study on end user computing replacement

found optimal economic decision = 3.5 years

Long server life is a mirage

Baltimore County personal property tax

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Gartner Hype Cycle for IT Infrastructure Availability and Performance Management, July 2015

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Prioritize Security Purchases

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Prioritize Security Purchases - HealthCareBackups

8.1 (High) - Ensure that each system is automatically backed up on at least a weekly basis,

and more often for systems storing sensitive information. To help ensure the ability to rapidly

restore a system from backup, the operating system, application software, and data on a

machine should each be included in the overall backup procedure. These three components of

a system do not have to be included in the same backup file or use the same backup software.

There should be multiple backups over time, so that in the event of malware infection,

restoration can be from a version that is believed to predate the original infection. All backup

policies should be compliant with any regulatory or official requirements. (Quick Win)

Skilled Staff

9.3 (High) - Implement an online security awareness program that (1) focuses only on the

methods commonly used in intrusions that can be blocked through individual action, (2) is

delivered in short online modules convenient for employees (3) is updated frequently (at least

annually) to represent the latest attack techniques, (4) is mandated for completion by all

employees at least annually, and (5) is reliably monitored for employee completion. (Quick Win)

Online Security Awareness Program

17.1 (High) - Deploy approved hard drive encryption software to mobile devices and systems

that hold sensitive data. (Quick Win)

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Limited Admin

12.1 (Medium) - Minimize administrative privileges and only use administrative accounts when

they are required. Implement focused auditing on the use of administrative privileged functions

and monitor for anomalous behavior. (Quick Win)

Audit Logging

14.5 (Medium) - Have security personnel and/or system administrators run biweekly reports

that identify anomalies in logs. They should then actively review the anomalies, documenting

their findings. (Quick Win)

Online Security Awareness Program

17.6 (Medium) - Conduct periodic scans of server machines using automated tools to

determine whether sensitive data (i.e., personally identifiable information, health, credit card,

and classified information) is present on the system in clear text. These tools, which search for

patterns that indicate the presence of sensitive information, can help identify if a business or

technical process is leaving behind or otherwise leaking sensitive information.

(Visibility/Attribution)

17.9 (Medium) - Use network-based DLP solutions to monitor and control the flow of data

within the network. Any anomalies that exceed the normal traffic patterns should be noted and

appropriate action taken to address them. (Configuration/Hygiene)

Prioritize Security Purchases - HealthCare

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Managing Multiple Vendors is Expensive

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Measuring Progress Un-benchmarked processes always bring savings

(especially the first time!)

Metrics can be constructive or destructive

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Benchmarking UptimeI’m

exceeding

my SLA

I’m having

trouble

meeting

my SLA

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Increasing User Productivity

0.000

0.010

0.020

0.030

0.040

0.050

0.060

0.070

0.080

total tickets per user/business day 3 per. Mov. Avg. (total tickets per user/business day)

Avoiding 40% of tickets at $25/pp/hour average

downtime cost = $120/pp/year for 1 hour/ticket

-40%

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Ticket Causes by Number of Tickets

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Inexpensive Trainingranked roughly by expense

Microsoft Software Assurance

Government Training Funds

Quick Reference Cards

E Learning

$14 per app user or $159 per tech user at our MD County client

Each course accessed saves $261-$2,836 versus live classroom

training

Recorded or Live Webinars

Demonstrations Sessions $37/student for 60

Private Group Training $126/student for 24

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Ask about IT