| CNIC Initiative |
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| Frequently Asked Questions |
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August 9, 2004 - CNIC Agency Staff Meeting, Q&A session
Q1. How large will the new data center be?
A1. 60,000 square feet or less.
Q2. How many people will staff the new data center?
A2. Approximately 85-100 using multiple shifts for 24 / 7 operation.
Q3. Will the size of the planned facility allow for consolidating other agency data centers (beyond the original 12)?
A3. Yes.
Q4. How soon will groundbreaking for the new data center begin?
A4. As soon as possible. First, legislative approval is needed. DAS Facilities will present testimony and a request for approval at the September meeting of the Emergency Board. It is estimated that the new data center will be operational by September 2005. DAS Facilities plans to build incentives into the construction contract for early completion.
Q5. Some agency equipment is nearing or past the end of its lifespan and needs to be replaced. Were these costs taken into account in the business case estimates?
A5. Yes, the business case contains an equipment replacement assumption.
Q6. What is the consolidation “launching” timeframe? How much time will it take to get each agency “up and running” in the new data center?
A6. The preliminary plan calls for approximately four months for each of the three largest centers to be consolidated. Smaller agencies may be consolidated more quickly.
Q7. What is the order for agencies to be consolidated?
A7. Determining the order for which agency is consolidated first, second, third, etc. will be finalized during more detailed, agency-specific planning (this is not a part of Task 7 to be completed by late September, early October).
Q8. Will the new data center be a new construction or an existing building? There are existing buildings in the Salem area that seem suitable.
A8. DAS Facilities has conducted a thorough search for suitable existing facilities including within the Salem area. At this time, it appears that building a new building on state-owned property in Salem (between Lottery and the Print Plant on Airport Road) is the most cost-effective solution and does not remove property in Salem from tax rolls.
Q9. When will implementation planning be complete, and is the final product of implementation planning another “go” switch for the project?
A9. Implementation planning (also known as Task 7 of the Accenture contract) will be completed by late September, early October. DAS Facilities is requesting Emergency Board approval (to begin facility construction) in early September. If implementation planning reveals that the project be abandoned (and the governor concurs), all aspects of the project would stop.
Q10. How was the $3 million savings figure for servers arrived at?
A10. Most of the savings in this category are from better utilization. It was also discovered that 80 percent of servers are at or near the end of their lifespan. Some savings was also projected for maintenance contracts reduction.
Q11. When will servers actually be consolidated – during the “move” or after?
A11. A small group of agency staff is working on this issue with the project team and Accenture. There may be opportunity for some advance consolidation (this is in large part because of the length of time it will take for the facility to be constructed).
Q12. What about advance consolidation of networks?
A12. Some advance consolidation is desirable and may be possible, but to a lesser degree than for servers.
Q13. It would be nice to see alignment of this initiative with a strategic vision. This would enable staff to see “why” we’re doing initiatives.
A13. CNIC is in alignment with Oregon’s Enterprise Information Resources Strategy, which recommends data center consolidation. The State CIO has a process ready to address the state’s next round of strategic IT planning (in coordination with the state CIO Council). The initiative itself is strategic in that it positions Oregon to take advantage of other cost saving exercises in IT.
Q14. What is the approach for addressing the non-technical aspects of the initiative in the planning process (referring to key processes for the new data center)?
A14. Accenture is providing Oregon with various industry best practices. Existing processes being used within agencies that are working well will be studied. Also, there will be training for the key processes of the new data center.
Q15. How will the new data center prioritize work requests?
A15. This cannot be answered at this time. The CNIC Governing Board will address all issues of ongoing structure and governance for the new data center. An answer to this question will be in place prior to opening the new data center.
Q16. There was an assumption in the earlier business case that there would be no major projects for three years. Is this a current assumption in the revised business case?
A16. The reason it appears that way is because of the new approach consultants are using to estimate growth. It involves a flat line assumption with a standard growth factor applied.
Q17. Regarding risk management and government accountability, who can we point to that will say, “This was my decision, this was my call?”
A17. The state is proceeding with this initiative at the direction of the governor.
Q18. When will the management team for the new data center be developed?
A18. It is hoped that the management team will be determined by the end of the year. The first step is finalizing the needs of the center (which will be done over the course of the next several weeks).
Q19. Will technical staff participate on interview panels to ensure managers are technically competent to lead the new data center?
A19. The CNIC Governing Board will likely be involved in hiring the data center manager, but the selection process for hiring managers has not yet been defined. See A22.
Q20. Will the firm selected to build the new data center have specific data center experience?
A20. Yes. All responders to the design/build RFP have experience building such centers. Additionally, there will be independent quality assurance for the project moving forward.
Q21. Has the state contacted other entities that have an oversight role (such as Secretary of State audits, federal government) regarding the facility?
A 21. Not yet. We will follow up on this.
Q22. What is the process and timeline for hiring staff?
A22. The process for hiring staff has not yet been defined. The CNIC Labor/Management Committee will make process recommendations to the Governing Board. They are evaluating timeline first, then staffing and management needs, and finally the criteria for hiring. After these items are outlined the process will be finalized. The Labor/Management Committee is operating under the assumption that current classifications will be used (i.e. no new classifications will be written for the new data center).
Q23. Regarding ongoing accountability for the new data center - won’t there be too many “captains?”
A23. No. Management of daily operations will be the responsibility of the new data center management team. The management will report to the CNIC Governing Board.
Q24. Will the new data center have authority to say “no” if agencies make requests that involve activities/functions that should not be part of the new data center?
A24. It is important that the new data center have accountability and operate from architecture and standards. There needs to be a clear separation of regulatory and service functions so the service provider is not the watchdog. Defining this is the responsibility of the CNIC Governing Board.
Q25. What level of detail will the implementation plan contain?
A25. Checklists, templates, and specifics on how consolidation is accomplished. These tools will then be used closer to the actual consolidation when the agency-specific consolidation plans are developed.
Q26. Are there plans to have an independent third party review the financials for this project?
A26. This has not been done for the initial phase of the project, but a multi-agency team provided analysis. Additionally there will be independent quality assurance during the next phase.
Q27. What is the timeline for the implementation plan and the final decision of the governor?
A27. The implementation plan will be complete by late September, early October. The governor has not set a timetable for his decisions.
Q28. You spoke about offering further information to agency staff regarding how data center consolidations are accomplished. When will this be offered?
A28. Wednesday, September 15, 2004, 10 a.m. to noon at the Employment Department Auditorium, 875 Union Street NE, Salem.
Q29. Will the three largest data centers be consolidated simultaneously and if not, why not?
A29. The current plan is to consolidate DAS, DHS and ODOT serially. Accenture’s experience indicates this is the best approach from a risk perspective.
Q30. Because the projected 16 percent savings is so close to the minimum criteria set for the project (i.e. 15-30 percent), will Task 7 [of the Accenture contract] refine cost projects?
A30. This has been discussed at the CNIC Governing Board level. There is no expectation that the cost projections will go down; rather, there is consensus that savings will be increased.
Q31. Some consolidation efforts may have to happen sooner than the new data center is ready (because of the lifespan of certain agency equipment); in this scenario, have these costs to agencies been taken into consideration?
A31. There will certainly be new purchases of equipment by agencies prior to consolidation. During that time each significant purchase will be reviewed to help assure that the new equipment being purchased will migrate easily to the new data center.
Q32. Have you looked at the success stories for data center consolidation in other states?
A32. Yes, specifically Virginia and North Carolina. The state has also studied projects from large cities and counties (whose computing power is larger than the state of Oregon).
Q33. Can we consider “shared services” to be the new model for the state?
A33. We are creating the mechanism to address this through the governance model.
Q34. Accenture seems to have a bias for Microsoft, yet not all agencies are using the same operating system. How will these decisions be made without bias?
A34. The governance model for the new data center will be defined by the CNIC Governing Board. This governance model will include a management structure which can shape the systems architecture going forward. Accenture does not play a role in the long term management or governance of the data center. Accenture may make recommendations along these lines, but the state is the decision-maker.
Q35. What is Accenture’s past practice for consolidation of applications?
A35. They generally keep things in DMZs (i.e. DAS to DAS, ODOT to ODOT).
Q36. Has the Governing Board changed the scope beyond the computing and networking infrastructure? When will there be a “stake in the ground” to finalize scope?
A36. The entire computing and networking infrastructure is in scope unless some portion thereof dilutes the savings of the business case. Other projects may emerge from CNIC, but those projects need to be kept separate. It is intended to finalize scope by the end of Task 7 [of the Accenture contract], however, there may be instances during agency-specific consolidation planning where more things are included in the new data center—or excluded—based on agency need and/or savings generated or diluted.
Q37. Once the new data center is operational, how will agencies be controlled when an agency-specific request receives a “no” answer from the Governing Board?
A37. There are several strategies to use: having a strategic IT plan, enticing agencies to do the right thing, and involving peer review through the membership of the CIO Council.
Q38. What about pricing? Will an agency be able to purchase a lower level of service if it meets their needs, or will there be “one price fits all?”
A38. Tiered service levels and pricing will be used. Agencies will select from a menu of services and be charged accordingly.
Q39. Since the governor requested the project become more aggressive in regard to savings, will the numbers in the business case be revisited if the scope changes?
A39. Yes. Anything that comes into scope will need to be verified to ensure the state is still achieving appropriate cost savings.
Q40. Service level agreements are “living documents.” Who will maintain them?
A40. Defining the process for service level agreements is a major part of this initiative but not something that is final today; the process should be outlined within a few months.
Q41. Some agencies have seasonal, fluctuating workloads that will take months to properly analyze. Isn’t defining a service level for an agency too close to the actual consolidation too late in the process?
A41. Balance must be achieved. Rigorous analysis is needed for an accurate picture, but it cannot be done too early or too close to consolidation.
Q42. Will service level agreements that agencies have with existing customers be rolled over to the new data center and/or improved?
A42. Yes to either depending on circumstances. The goal for customer service is to meet or exceed current levels.
Q43. Will service levels be rolled into the charge back system?
A43. Yes.
Q44. Can the new data center truly provide the same customer service agencies enjoy today?
A44. Service will be as good or better than today, but it will be different. We must be able to define current service levels factually.
Q45. If we are not consolidating operating systems and (as an example) DHS servers will be on DHS servers in the new data center, what is actually being consolidated?
A45. Underutilized servers are the primary savings in the server arena. Migrating to new equipment will also occur. Once all agencies have been lifted to the new data center other consolidation can occur.
Q46. How will rates, assessments and performance be enforced?
A46. These are issues to be resolved by the Governing Board with input from agency CIOs.
Q47. How will issues for small agencies be resolved when work requests or issues are in conflict with large agencies?
A47. Resolving the decision-making process for the ongoing governance structure is the responsibility of the Governing Board. It should be noted that the shared infrastructure of the new data center will meet common needs. A process for any agency to address unique needs must be established.
Q48. If the three large agencies (DAS, DHS, ODOT) represent 90 percent of the state’s compute load, why are there nine other agencies included in this initiative?
A48. The benefits and efficiencies to be gained through the consolidated infrastructure such as cyber security, disaster recovery capabilities, business continuity planning, etc are needed in all state agencies.
Q49. Has Accenture done data center consolidation before?
A49. Accenture has done major consolidation work in the states of Illinois and Florida, and in the United Kingdom. Additionally in the federal government Accenture has been involved in consolidation activities for US Dept of Education and Internal Revenue Service.
Q50. When did the Accenture projects with the states of Illinois and Florida begin?
A50. Both projects started before Accenture entered into a contract with Oregon.
Q51. How will FTE savings occur?
A51. Savings will be derived from the difference between the current agency-centric model and a shared model. It is more expensive to staff and operate 12 data centers than one.
Q52. How many FTE will be eliminated?
A52. This will be defined in the final business case, and may be refined further during implementation.
Q53. What will signify the completion of Accenture’s part in this project?
A53. Task 7 will be complete in late September, early October. At that point, a contract extension will be put into place for phase 2 (implementation). Implementation is currently estimated to be complete by the third quarter of 2007.
Q54. It was stated earlier that the Legislature desires the state to conduct this type of project. Have we taken this initiative back to legislative leadership to see if this project is “it?”
A54. The Joint Legislative Committee on Information Management and Technology (JLCIMT) has been briefed several times on this initiative and they are very supportive of it. They are pleased to see agencies working together collaboratively across traditional boundaries. The CNIC Governing Board expects continued help and support from the Legislature.
Q55. Can you post the utilization data that was developed during the agency inventory?
A55. Publishing the inventory data would present a potential security risk.
Q56. Some of the participating smaller agencies have equipment that is past a normal lifespan today. How can they wait over two years for their turn to consolidate?
A56. There are several ways to solve this problem. Some equipment may need to be replaced before an agency is scheduled for consolidation. It also is possible to fit an agency into the consolidation schedule earlier as the need warrants.
Q57. How can you explain the proposed two to three year payback period being lengthened to five years?
A57. During the analysis of the business case by the committees of the CNIC Governing Board some cost assumptions were modified and some additional costs were added. These committees used the worst case estimates for costs to assure that the most conservative business case was presented.
Q58. Can you explain the governor’s desire for the project to be “more aggressive?” Aren’t we “biting off more than we can chew?”
A58. There are two ways to be more aggressive with this project – speed up the project schedule (which shortens the return on investment period), and/or increase the scope (which enhances the savings achieved). These must be balanced against the risk of moving too fast and/or making the project too large and complex to manage.
Q59. How will current service level agreements be measured to ensure an accurate baseline for comparison to the new data center?
A59. Service levels must be quantified. We must understand and verify in measurable terms current service levels agency by agency. Measures and metrics should be the same across all twelve agencies, but the service level agreements will be different based on agency need.
Q60. Will agency CIOs be involved in development of service level agreements?
A60. Yes.
Q61. Can you explain the hiring process as it affects a small agency employee? If their agency won’t be consolidated right away, how can they compete for jobs?
A61. Staff selection will be done for the full operating capabilities of the center in advance of agency consolidation. A particular staff who is selected to work in the new data center may continue to work in their agency IT shop until the time their agency is consolidated (or until such time as the management of the data center determines). The Labor/Management Committee is addressing these details.
Q62. Migrations are very resource intensive, yet one of the savings of this project is through FTE reduction. How is it possible to reduce FTE levels and maintain or improve customer service?
A62. Through sequencing; not all staff reductions will be taken on day one. Reductions will likely be made incrementally as agencies are consolidated.
Q63. The plates of agency staff are already too full. When will we be compensated for all the extra work we’ve done?
A63. We will continue to be asked to do more with less. We are positioning ourselves to go after more opportunities for savings.
Q64. Can you explain how IT enables business to be more efficient, yet IT is always cut back?
A64. Business cannot achieve their objectives without the enabling capabilities of IT. At the same time, there is increasing cost pressure on state agencies. CNIC is designed to deliver the same capabilities at lower cost.
Q65. Are the costs of agency staff working on this project gathering information etc being tracked?
A65. Not by the CNIC project office; some agencies are tracking this information.
Q66. Can any more detail be provided on the human resources process?
A66. New positions will need to be established. Select positions in agencies will be abolished. Hiring the management team for the new center will be accomplished before staff decisions. Job descriptions will be written. There will be an application process with clearly defined selection criteria.
Q67. Will staff transfer to the new data center when the equipment they work with in their agency is consolidated?
A67. No. Staff are not being “transferred” to the new data center.
Q68. Who can apply for the jobs at the new data center?
A68. The current assumption is that initially, the IT staff from the 12 participating agencies can apply. If there are still vacancies after that process is complete, other staff from within state government can apply.
Q69. It appears that some services will still be done within agencies.
A69. Yes, agencies will still have staff to perform those functions and services retained at the agency level. Not all IT positions within agencies are being abolished. However, the business case is built on the premise that there will be fewer positions overall following completion of the project.
Q70. How is it possible to have sufficient knowledge transfer?
A70. The management for the new center must be established first. They will be involved in developing a plan to support full knowledge transfer.
Q71. How do you move a fractional FTE?
A71. The way the larger agencies dealt with this was primarily through expanding the scope. We will work with smaller agencies on an individual basis to address this concern.
Q72. What agency will be in charge of the data center?
A72. It may be within DAS, but will be separate from IRMD. The data center management will report directly to the governing board.
Q73. What suggestion can you offer for communicating the technical requirements of an agency up the ladder to ensure business leaders understand the true nature of their agency needs?
A73. Work with your agency CIO to identify the issues. Some answers may come out of the educational session on data center consolidation and some from the further development of the human resource program.
Q74. How can agencies build toward common standards?
A74. This will be an iterative process. There may be an “opening day” picture and a picture two to three years in the future.
Q75. Will phase 2 go out for bid? Is it preferred that Accenture do implementation? What if Accenture doesn’t want to do it?
A75. Phase 2 (implementation) is a negotiable item in an existing contract with Accenture.
Q76. Is IT infrastructure consolidation the only cost saving initiative?
A76. This is not the only thing being thought of, but it is the primary focus currently. To the degree we have a good IT infrastructure, we can go after some of these other opportunities.
Q77. Who will determine standards?
A77. The CIO Council has been driving an enterprise architecture and standards setting process with the involvement of technical people and this should continue. There are some instances where defacto standards can and should be declared. An example of this is in the area of geospatial software where 90 percent of state agencies are using the same GIS software.
Other audience comments:
- The state should leverage the standards that the CIO Council subcommittees have developed over the past two years.
- It was suggested that lessons learned from the state’s 1993-1994 “Sequent” project be applied to CNIC.
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