brian rawson, cto, 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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Consolidation Business Case

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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



DIR Customer Base

Market Segment Analysis55% Education25% Local Government20% State Government

Market Segmentation

Local Gov't

State Gov't

Education

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DIR Customer Base

Market Segment Analysis

Over 2,800 active customers in Texas

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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