| CNIC Initiative |
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| Frequently Asked Questions |
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May 21, 2004 - excerpts from an agency staff meeting with CNIC Program Manager Mike Freese.
You looked at states which have consolidated data systems. What about the other states?
Generally, consolidation initiatives are undertaken in response to economic pressure. Consolidation initiatives in other states are varied and encompass a range of IT functions, including data centers and networks.
Have any states moved to decentralize?
Not that we know of, though centralization and decentralization have historically been cyclical. We are evaluating centralization where it makes sense to do so, and do not intend to pursue it where it doesn’t make sense. Candidates for centralization are functions where there is a high degree of commonality, and efficiencies and economies of scale can be gained. Functions which are specific to agency needs and/or where efficiencies and economies of scale cannot be gained are not good consolidation candidates.
Have you analyzed the experience of those who have centralized so Oregon can avoid the pitfalls?
Extensive research has been conducted on other states’ efforts to help avoid pitfalls. We are also relying on the experience of the vendor we have chosen, and the expertise of our CIOs and agency technical staff to make this effort successful.
Why start with the big data centers? Doesn’t that increase the potential for problems?
Yes, but they comprise the bulk of the computing infrastructure, and therefore offer the greatest savings opportunity. Accenture (the project contractor) is tasked to develop two implementation strategies; one data center and two data centers. The business case must factor in the inherent risk and associated mitigation costs to consolidate under one roof. Consolidating the largest agencies first results in quicker return on our investment (ROI), and reduces the length of time the state has increased risk exposure due to consolidation activities.
What is the scope of the project? What is the definition of a network for purposes of this project?
CIOs of CNIC participating agencies are tasked to resolve “fractional FTE” issues, i.e., those positions performing multiple tasks. Our responsibility will be to house the boxes in the data center and our responsibility ends at the remote site – up to and including the router at the remote agency site. All devices on the other side of that router will be the agency’s responsibility, i.e., LAN.
What is the plan for the agencies not identified in the first phase? Department of Fish & Wildlife has equipment in the Revenue building but is not in the list of 12 participating agencies. Will they be added to the consolidation project?
Fish & Wildlife is in scope, since their host is currently collocated at the DAS data center. The CNIC project has three phases: 1) Assessment; 2) Consolidation; 3) Small agency data center consolidation on a case-by-case basis.
Is there a long range plan to contract out the work?
No.
Why are you looking outside Salem for a facility? Won’t that add to the cost?
We looked at facilities within Salem and found them less suitable and cost effective than others. In the ´90s facilities were popping up with millions of dollars invested in them including data lines, telephony, etc. Since the bubble burst in the late ´90s many sit vacant. Therefore, we can obtain these facilities at a fraction of the cost and our expense in retrofitting can be recouped within our two to three year projected timeframe.
Will you factor in the cost of diminished service if you move away from the user base? What about the added costs of phone calls, video conferencing and other costs associated with service when the data centers move from the agencies?
We do not assume that service will deteriorate, but the service delivery model would change. Economies of scale would allow us to afford “best practice” service level management technologies and processes.
In determining the costs of consolidation, what is factored in? Does it include the cost of the staff time currently being spent meeting with the contractor?
If you are currently tracking that, we would like the information so it can be considered as part of the one-time transition cost.
How are you dealing with the issue of dedicated funds and or dedicated hardware which is limited to a specific use? How is all of this being tracked and the costs estimated?
Some initial analysis is required to determine whether there is potential impact on the business case. More extensive analysis will be required to build the operational funding model.
How will the confidentiality of data be protected?
This is a key requirement which the security team will resolve.
How are you going to consolidate hardware?
By moving compute loads onto shared infrastructure (where possible) and collocating where necessary. Better price/performance ratios on equipment are one of the savings opportunities. This will be described in more detail in the project plan.
What will happen to non IS staff currently assigned to the units?
This has not yet been determined. The new center would need administrative support, and this will be addressed both in the business case and human resources processes.
When you do the cost analysis will you include the change in ongoing costs (what DAS bills agencies) compared to current agency costs?
This is being factored into the business case. Aside from one-time savings, a consolidated facility would have to demonstrate continued value over time, i.e., sustain service levels and savings.
How do you reconcile the consolidation strategy with the outsourcing projects (decentralization) that are currently being contemplated?
I don’t know of any outsourcing/decentralization initiatives, so I can’t respond.
Business Continuity Planning favors decentralization, how do you reconcile this value with data centralization?
We have to mitigate the risk in the event of a disaster. The issue is that losing one of one data centers is more catastrophic than losing one of 12. The cost to mitigate such risk will be factored into the business case.
What’s the hurry?
We must deliver savings in a relevant timeframe. Once the business case is developed, it must be acted upon or it quickly becomes invalid due to necessary changes in the technology environment.
What is the fall back plan when things go wrong because of the haste to consolidate before all the logistical problems are considered?
We don’t intend to overlook potential logistical problems, that’s why we brought in a partner with a proven track record to help. There will be a plan for “fall back” at every step. Industry experience indicates the project schedule is not hasty.
What is the schedule for the presentations to the workers in the Agencies?
Quickly. Initial visits will be complete in the next couple of weeks, and then we would like to come back at every major milestone for updates.
What is your plan for retraining?
A specific plan has not been developed yet, but it is essential to project success; we will work through it with affected parties.
Will a new plan for communicating changes in data center resources (new software releases, hardware, etc.) be completed before the consolidation, so that we can avoid excess staff time fixing items that break?
Yes, this is absolutely critical to the ongoing success.
Who will the consolidated center be accountable to (which agency)? How will other agencies resolve problems with data center services?
The data center will be operated by staff from the participating agencies, and will be placed organizationally within DAS. A governing board comprised of the participating agency directors, will direct the shared services data center.
Will the business case be available for review once released?
Yes, as soon as it is validated.
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