March 28 2016 WaTech Biennial Budget as proportion of total State budget WaTech Programs and Expenditure Authority Governors 2016 Supplemental Proposal ProgramSub Program Name FTE FY 2016 ID: 667056
Download Presentation The PPT/PDF document "WaTech Executive Board Meeting" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
WaTech Executive Board Meeting
March 28, 2016 Slide2
WaTech Biennial Budget
as proportion of total State budgetSlide3
WaTech Programs and Expenditure Authority
(Governor’s 2016 Supplemental Proposal)
Program/Sub Program Name
FTE
FY 2016
010 CTS Management
Agency Management
64.8
$7,068,298
Enterprise Technologies
10.0
$1,718,246
Wheeler Allocation Pool
$13,795,000
Professional Services
030 CTS Telecommunication Services
TSD Phone Services
34.0
$20,635,524
TSD Data Other Service
3.1
$768,684
TSD Data Network
40.5
$22,203,202
040 CTS Computing Services
CSD Email Communications
17.8
$6,487,088
CSD Content Management
7.6
$1,197,554
CSD Server Hosting
17.0
$7,210,326
CSD Storage Management
7.3
$4,745,628
CSD
Mainframe
Computing
42.0
$12,114,724
CSD Disaster Recovery
1.2
$1,647,936
040 (050) Data Centers
Data Center Facilities
10.0
$5,615,604Slide4
WaTech Programs and Expenditure Authority Cont.
Program/Sub Program Name
FTE
FY 2016
Program 060
Interactive Technologies
Enterprise Security
38.0
$14,081,624
Program 120 OCIO
Office of the CIO
11.9
$4,481,268
OCIO Projects
2.7
$202,732
Program 080 ETS
Desktop & Network Support
44.2
$4,593,358
DES, CTS and OFM Applications
14.0
$2,771,735
Shared
Application Support
35.2
Enterprise Systems
167.2
$34,532,817
Warrants
$367,764
Geospatial Portal
1.0
$353,456
JINDEX
2.0
$353,244
Program 080 E-GOV
Access
WA
8.0
$806,000
WABOS
$806,000
Agency Total
579.4
$168,558,503Slide5
Two Primary Sources of Revenue:
Fee-For-Service
Content
ManagementData Center FacilitiesDES, OFM ApplicationsDesktop and Network SupportDisaster Recovery
Email CommunicationsHigh Capacity ComputingPhone ServicesServer HostingStorage ManagementWireless
State-wide Allocations (CSM)
Access Inside
Washington & WABOS
AFRS Warrants
BC/DR
CTS Security Gateway
Enterprise Security Infrastructure
Enterprise System Rates
GIS
JINDEX
Network
OCIO
Production Support
Secure File TransferSlide6
Our Financial Goal is Pretty Simple
But Not Easy: Cost Recoverability
WaTech is a proprietary agency with a negative cash balance and a current operating loss
We have financial strategies to meet the goal of bending the negative b
alance curve: Pursuing More Allocations for Services that should be Enterprise
Maintaining and updating
FFS rates
Securing More SDC CustomersSlide7
Changes in Technology
Drive Changes at WaTech
WaTech is evolving from selling:
Specific technologies (TDM & Ethernet Circuits)
Selling specific services (Transport & Connectivity)
E
nabling particular capabilities (Inter-Agency/Government Collaboration & Cloud ConnectivitySlide8
What We Buy
July 2015 – January 2016
Infrastructure
Applications
Administration
OCIO
Total to Date
Staff
$ 13,761,597
$ 13,540,437
$ 5,968,789
$ 829,309
$ 34,100,131
Stuff
Telephone
$ 10,236,662
$ 52,453
$ 87,405
$ 10,589
$ 10,387,110
Hardware
$ 4,996,576
$ 43,013
$ 13,636
$ -
$ 5,053,226
Data Processing and Print
$ 5,728,617
$ 1,483,301
$ 1,256,642
$ 2,592
$ 8,471,152
Software
$ 11,306,236
$ 2,764,744
$ 837,015
$ 304,849
$ 15,212,844
Contracts
$ 2,650,390
$ 530,246
$ 519,936
$ 435,321
$ 4,135,892
Facilities
$ -
$ -
$ 2,790,996
$ -
$ 2,790,996
Other
$ 1,344,392
$ 358,808
$ 648,339
$ 102,251
$ 2,453,789
Stuff Total
$ 36,262,873
$ 5,232,566
$ 6,153,969
$ 855,601
$ 48,505,009
Debt Service
$ -
Office Building
$ -
$ 4,187,327
$ -
$ 4,187,327
SDC Debt Service
$ -
$ 7,318,970
$ -
$ 7,318,970
Equipment
$ 920,024
$ 89,775
$ -
$ -
$ 1,009,799
Debt Service Total
$ 920,024
$ 89,775
$ 11,506,297
$ -
$ 12,516,096
Equipment
$ 2,438,215
$ 926,753
$ 31,285
$ 528
$ 3,396,782
Grand Total
$ 90,565,607
$ 25,111,872
$ 41,320,607
$ 2,541,039
$ 159,539,124 Slide9
More Stuff than Staff
Stuff
includes:
19% Telephone
9% Hardware
11% DP and Print
21% Software
5% Contracts
3%
Other
Stuff
includes:
5% DP and Print
4%
Software
8% Contracts
4%
Other
Stuff
includes:
7% DP and Print 14% Software 3% Contracts 2% Other
Stuff
includes:
1%
Telephone
18
%
Software
26
%
Contracts
6%
Other
Slide10
Agency
Overhead
As of
January 2016
Department
FTEs
Overhead $
Directors Office
13
$1,048,026
Human Resources
8
$711,011
Finance Office
17
$1,543,904
Office of Legal Services
7
$448,995
Agency Technology
Solutions
11
$1,701,140
Customer Relations
4
$304,539
Enterprise Technologies
5
$507,325
Project Management
5
$346,597
Desktop & LAN
25
$2,233,151
Support Center
10$518,3571500 Jefferson Rent & Utilities0$2,790,996Total105$12,154,043Slide11
No
Cash Leads
to:
Operating lossesDifficulty making new investments
FY 2016 Projections
Staff
$ 60,417,308
Stuff
$ 86,871,829
Debt Service
$ 28,906,536
Total Costs
$ 176,195,673
Revenue
$ 164,667,777
Operating Loss
$ (11,527,896)Slide12
Financial Strategy
a blend of fee-for-service and allocations
Customer LOB
Fee For Service
46%
Allocations
54%
New
Economy of Scale
Concentrated Expertise
Mature Foundational
Enterprise
VPN, Wireless, Cloud Slide13
How WaTech fits into the
2017-19 Budget Process
Fee For Service
Rate PlanRequired by RCW
43.105.006OFM Review and Approve AnnuallyDue March 31, 2016
Rate Day
June 2016
Prepare for 2017-19 Biennium
Present Fee For Service Rates for customers to use in their budget planning
Allocations
Governor’s budget process
Decision Packages
Agency Biennial
Budget
Request to OFM Sept
2016Slide14
Questions?Slide15
WaTech Executive Board
Strategy for Moving the Washington State Enterprise to Microsoft Office 365
Dan Mercer
March 28, 2016Slide16
Questions We Will Address Today
What is Office 365?
Why
the state should move
How does the state moveWhat have we done so far
Where do we go
from hereSlide17
What Is
Microsoft Office 365?Slide18
What is Microsoft Office 365?
Office productivity suite desktop software
On-Line version of productivity
suite
Collection
of Cloud Services
Subscription licensing model
(5 devices per person)
+
+Slide19
What Changes With Office 365?
Shared services run at Microsoft
User files can be stored in Cloud
New cloud-only products
OneDrive
!
Yammer
!
State Gov. Network
State Data Center
Microsoft Cloud
AgencySlide20
What Stays the Same?
The User Experience!
The same Word, Excel, PowerPoint and Outlook you use today, running on the same computer, laptop, tablet or phoneSlide21
Why Move to Office 365?
Boost agility and productivity
New products
and
featuresImprove security
User-based
Licensing
Each user is licensed for 5 PC/Mac
+ 5 Tablets +
5 Phones
Positions the State Strategically
Microsoft investing and innovating in cloud products, not in on-premises
versionsSlide22
How Does the
State MoveSlide23
Moving to Office 365
Planning – Design - Testing
Enterprise Project Management and GovernanceSlide24
Identity and Access Management (IAM)
IAM is the Foundation of a Secure and Manageable Enterprise
Enterprise
Active Directory (EAD) is the State’s IAM Standard
OCIO/ISB Policy 183.20.10 - Identity Management User Authentication Standards, mandates executive branch agencies use the state’s Enterprise Active Directory as the standard identity management solution
We
must maintain the integrity of our name space
Crucial to a variety of strategies beyond O365
All enterprise applications (ERP, AFRS, HRMS)
Single Sign-On for all your internal applicationsSlide25
Tenant Design Options
DSHS
DOH
ESD
ECY
DOR
DFI
DES
L&I
DRS
HCA
DOC
DFW
Single Shared Tenant
DOH
DOR
L&I
DOC
DSHS
ECY
DES
HCA
ESD
DFI
DRS
DFW
Separate Agency Tenants
(1 agency per tenant)
Identity Access
Mgmt
IAM
IAM
IAM
IAM
IAM
IAM
IAMIAMIAMIAMIAMIAMBasic Choice: Shared Tenant or Separate Tenants?Slide26
Tenant Design Options
Single Shared Tenant + A Few
Separate Tenants
Identity
Mgmt
& Directory Federation
ESD
ECY
DOR
DFI
DES
DFW
DRS
Identity Access
Mgmt
DOH
IAM
DSHS
IAM
HCA
IAM
L&I
IAM
DOC
IAMSlide27
State Gov. Network
Office 365 Traffic
Network Aggregator
to Amazon
to other s…
to Azure
ExpressRoute
State Gov. Network
Network & Security Infrastructure
Option 1: Public Internet
Requires multi-million $ upgrades to existing firewalls
Unpredictable performance, high security threats
If we don’t act soon – state will devolve into this option
Option 2: Private Network (MS ExpressRoute)
Extends SGN routing and security context
Connected via network aggregation vendor
Strategically positions State to integrate other cloud services
Internet
State Data CenterSlide28
What Have We
Done
So Far?Slide29
Process To Reach
Strategy DecisionsSlide30
MCS Tenant Design Options Study
Spring 2015 - MCS assess tenant design options
Outcome
:
The majority of the state’s business needs could be met by either design
Single Shared Tenant
is
least complex and most cost-effective
Separate tenants
are better for
compliance and autonomy, but complex
and costlySlide31
Customer Workshop
Nov
2015
:
Customer workshop with representatives from 11 agencies
Criteria
derived from MCS report
analyzing
Compared single shared tenant and separate agency tenants
Prioritized criteria for decision making
Outcome:
Higher
Value
: regulatory compliance, e-discovery and agency autonomy
Lower Value
: reduced cost, architecture complexity and identity managementSlide32
Results
Department Autonomy
Overall Complexity
Identity Framework
E-Discovery
(Shared Tenant)
(Separate Agency Tenants)
Compliance
E-Discovery
Reduce Cost
Autonomy
Agency Participants
: DFI, DFW, DOC,
DOH
, DOR, DOT
, DSHS
,
ECY
,
ESD,
HCA,
L&I
Identity
Mgmt
ComplexitySlide33
Tenant Data
From Other States
Microsoft
State Gov. Customers
17 primarily single
shared
tenant,
some with exceptions
Gartner
Confirmed ~20 States
Almost
all
single shared tenant
No
reported
compliance concerns
Anecdotal Lesson Learned
Some states may be moving to
multiple shared tenants
State
Shared Tenant
Separate
Tenants
Comments
1)
Georgia
X
No exceptions2) North CarolinaXNo exceptions3) FloridaXNo central IT4) AlabamaX
w/ exceptions
5) LouisianaX
w/ exceptions6) New YorkX7) PennsylvaniaXNo exceptions8) MinnesotaX9) CaliforniaXComplicated by BPOS-D transition10) Kansas
X
One agency is anchor org
11) Texas
X
XMix12) HawaiiXw/ exceptions13) Rhode IslandXFew exceptions14) MaineX15) OhioX16) KentuckyXStill on-premises17) VirginiaXSome exceptions, but still on-prem18) MarylandXJust an RFP at this time19) NebraskaXStill on-premises20) Santa Clara County, CAXNo exceptions – maybe Sheriff’s officeSlide34
Which is Cheaper?
$22
$53 /
mo
Current
– Office Pro and WaTech Shared Services E-mail only
Office 365
– Separate Tenant, private network, customer network capacity upgrades
$32
Office 365
– Shared Tenant, private network, no customer network capacity upgrades
Current
– All products and WaTech Shared Services
$31Slide35
1
Additional Active Directory Federation, Tenant Administration and Support. (~2000 users /tenant)
$7
Separate
Tenant-
Total Monthly/U
ser
$38 - $53
Migration Costs:
One-time cost for migration tools and contracted support staff
$50,000
- $750,000
per agency tenant
Per User Cost Comparison
Product or Service
Current Service
Month
ly Per User
Office 365
Month
ly Per User
Software / Service User Licenses:
$22 - $32
$27
(Also includes
cloud-only products)
Office Professional desktop
Windows + Enterprise CALs
Email, Anti-virus/Anti-spamMessage Hygiene, Secure Email
Email Archive
Mobile Device Management
SharePointSkype for BusinessAdditional Identity Management, Tenant Administration and Support(Not required)$2Additional Network and Security Infrastructure(Not required)$2 - $17Shared Tenant-Total Monthly/User
$31 - $46
+
+
+Slide36
Where Do
We
Go From Here?Slide37
Go
Forward Proposal
Shared tenant agencies request
exceptions
Exception criteria to be determined
Agencies with separate tenants assume additional costs
Establish enterprise program
Establish
project
team(s),
governance structure and
budget
Implement a hybrid
environment to a “test
tenant”
Validate tenant and IAM architectures and management processes
Establish a private network connection to government cloud
Propose a Funding StrategySlide38
What We Need from You
Feedback and/or Buy-Off on strategy
Help define exception criteria
Assign people governance
Input into funding strategy Slide39
Thank You
Office 365 Strategy Brief