PowerPoint Presentation

April 6-9, 2009 | Rosen Shingle Creek Resort | Orlando, Florida

April 6-9, 2009Rosen Shingle Creek ResortOrlando, Florida

IT Infrastructure Transformation in the Commonwealth of Virginia

Dave Burhop, Virginia Department of Motor Vehicles April 8, 2009


Presentation Topics• Virginia’s information technology (IT) model

– The need– Structure and governance– Responsibilities

• IT Infrastructure Partnership• Progress in core services

– Governance– IT procurement– IT infrastructure operations

• Lessons learned


Call to Action: State of Technology in 2002

• 90+ independent, autonomous IT shops

• Independent, duplicative systems

• $75M in failed IT projects in 5 years

• Inadequate protection of sensitive information and equipment

• Inability to leverage buying power or manage investments

• Obstacles to sharing information across agencies

• Few metrics on performance and service delivery


The Numbers Revealed The Need

90+ Independent, Autonomous IT Shops Responsible for:

• 67,000 PCs • 3,000 servers• 100 primarily independent data centers• 85 Internet connections• 61 helpdesks• 45 individual Wide Area Networks• 40 different email/messaging systems• 18 different telephony systems


Governor and General Assembly Took Action in 2003

• Created VITA, Virginia’s centralized IT “utility”– Abolished three IT agencies– Transferred IT assets and staff from 90+ agencies to VITA over 18 months

• Defined VITA’s primary responsibilities– IT governance– IT procurement– IT infrastructure operations

• Established funding mechanism– Internal Service Fund - budget is largely fees collected– Rates approved by Joint Legislative Audit & Review Commission (JLARC)


Governor and General Assembly Took Action in 2003

• Created Information Technology Investment Board (ITIB)

– 10-member supervisory board – 3 government members– 7 citizen members: 4 appointed by legislature, 3 by Governor – Responsible for VITA and all IT oversight and investments

• Chief Information Officer (CIO)– Hired by ITIB to a 5-year contract– ITIB’s agent as VITA Agency Head– Advise Governor and legislature of investment opportunities


Technology Management Governance Structure

General Assembly• Appoint Board members• Pass legislation including budget• Appointed JLARC oversight of VITA

For more details seethe Code of Virginia2.2-2005 – 2032 and 2.2-2457

IT Investment Board (ITIB)• Approve funding priorities• Approve project development• Approve policies, standards, guidelines • Approve Virginia’s IT Strategic Plan

Chief Information Officer• Develop VA IT Strategic Plan• Approve Agency IT strategic plans• Approve project planning • Develop policies, standards, & guidelines (for ITIB)

• Manage & support infrastructure• Procure IT goods & services• Support CIO and ITIB• Chief Security Officer• Chief Applications Officer

Governor• Set Executive branch priorities• Appoint Board members• Develop budget

Executive Branch Agencies• Develop Agency IT Strategic Plan• Adhere to Policies, Standards & Guidelines• Manage Agency Applications and Staff


IT Infrastructure Partnership


State of the IT Infrastructure (Pre-VITA)

• Aging, inefficient infrastructure – 1980s technology environment– 50% of equipment 8 to 10 years old

• The Commonwealth at risk– No maintenance on thousands of devices– 80% of agencies vulnerable to data breaches, hacking – Virginia’s data center building rated a high security risk– Inadequate ability to resume operations after a disaster – Copyright software license violations (legal liability)


Solution: Build a 21st Century Infrastructure

• Nation’s largest public-private partnership– Commonwealth of Virginia and Northrop Grumman Corporation formed partnership in November 2005– Contract valued at $1.9 billion over 10 years

• Northrop Grumman invests $270 million in up-front capital

– Replace aging, inefficient infrastructure in agencies– Modernize and standardize IT services and support– Consolidate and centralize infrastructure equipment and monitoring

• Investment in people and communities– Creates more than 400 jobs in rural southwest Virginia– No layoffs of state IT employees– Northrop Grumman is positioned to grow in Virginia


Infrastructure Investments Through Private Partners

Messaging Services

People – Process – ToolsReliable, High-Performance,

Enterprise-Wide IT Infrastructure$270 Million Investment

Enterprise Exchange/Outlook E-mail

Enterprise Collaboration ToolsActive Directory, DNS$25M Investment

Mainframeand Servers

New IBM and Unisys Mainframes Consolidation and Refresh of Servers

Migration of servers to the Data Center$50M Investment

Tier 3 and Tier 2 Facilities

New Data Center/Office Building in ChesterfieldNew Disaster Recovery Center and Help Desk

in Lebanon, Russell County$60M Investment

Desktop

Mass Desktop RefreshNetwork Printer Consolidation and RefreshEnterprise Desktop Management Systems

$35M Investment

Network

New Commonwealth-Wide MPLS Core WANLAN upgrades to Local Switches/Routers as Needed

Network Re-addressing of IP, DHCP$60M Investment

Help Desk

Enterprise Help Desk in Russell and ChesterfieldField Based Agents and Technicians for Level 3

Enterprise Help Desk System (Peregrine)$10M Investment

Security

Enterprise Security Operations CenterComputer Security Incident Response Center

Secure Internet Gateway$10M Investment

Voice / Video

Voice-Over IP Network Optimized for Voice and Video Traffic

$20M Investment

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Progress in Core Services


IT Infrastructure Accomplishments

• Significantly improved information security• Corrected software copyright licensing violations• Constructed two data center facilities (Chesterfield & Russell)• Began creating over 400 high-tech jobs in southwest Virginia• Replaced much of the infrastructure with new, standard equipment• Implementing standard, consistent processes and metrics statewide• Establishing predictable, consistent prices that are planned for and budgeted


Commonwealth Enterprise Solutions Center

Chesterfield County


Southwest Enterprise Solutions Center

Town of Lebanon,

Russell County


Enterprise IT Governance Accomplishments

From 2002:

• Lack of oversight• Independent, autonomous decision-making• $565 million spent on duplicative, stand-alone systems• $75 million in failed major IT projects from 1998 - 2002

To 2009:

• Strong investment management program for new IT projects• Strategic IT investment decisions promoting enterprise solutions• No major IT project failures since 2003


Centralized IT Procurement Accomplishments

From 2002:

• Buying power not leveraged• Lack of standards• Multiple, inconsistent procurement processes• Low spend with small, women- and minority- owned (SWaM) companies

To 2009:

• Leveraged buying power• Decreased costs • Increased annual SWaM

spend from $4M to $80M


IT Reform in Virginia Results in Efficiencies

Had we done nothing, Virginia would have…

• Experienced additional failures of major IT projects• Spent $200 million more over the next decade supporting an aging IT infrastructure • Spent an additional $120 million on energy consumption over the next decade • Paid $45 million more for IT products and services without central IT procurement management


Lessons Learned


Hard Lessons We Learned the Easier Way

• Executive sponsorship is essential• Talk to others about what worked, what didn’t and why• IT reform is about culture change

• Build and maintain momentum, confidence• Manage stakeholder expectations

Technology People & Process


Hard Lessons We Learned the Hard Way

• Get your arms around what you’ve REALLY got in your IT environment

– Be data-driven– Conducted five “due diligence” exercises

• “Legasaurs” – ancient equipment• Years of underfunded IT programs• Poor inventory records and processes• Lack of basic security protection• 1,200+ employees organized by agency, supporting more than 2,000 sites• Sorely under-utilized capacity for servers, printers

• Transformation takes longer than you think– Virginia’s schedule is aggressive (36 months)– Must accommodate agency business cycles (don’t transform Tax in April)



• Look behind the curtain

Back-end processes and procedures (the “how”) must transform with technology services (the “what”)

• Asset inventory• Service requests• Pricing & billing• Customer relationship

management• Communications

• IT support• Documentation• Purchasing• New service offerings• Change management• Personnel management



• All stakeholders – especially employees – need to feel they are being treated equally and kept informed

– Focus on the 90 – 95 percent who are “with” the program or can be swayed either way– Do not cater to the 5 – 10 percent you can never win over

• If outsourcing, understand the governance model and the relationship with your partner

– Traditional client-vendor relationship? A risk/reward-sharing partnership? Something in between?– State policies do not contemplate an outsourcing arrangement



• Ensure agencies coordinate with state budget department on rates (cost impact, timing, etc.) BEFORE they are implemented• Ensure agencies understand “what’s in the rates”• Implement all aspects of disaster recovery as part of the base modernization rate package – don’t make DR optional• Agency level SLAs should be identified early on so the “to-be” model can be designed to support them• Streamline early on the process that supports agency service requests • Centralized print close to the customer agencies is a necessity• Delegated Procurement Authority to agencies should be considered on a case-by-case basis• Delegated Project Authority to agencies should be considered on a case-by-case basis


Hard lessons we learned the hard way

• Embrace the media– Informed reporting vs. investigative reporting

• Start with the big agencies– The largest 15 agencies in Virginia represent ~80% of the spend

• What’s that noise?– It is not a celebration….(yet)– “There” is good; getting “There” is painful– The noise level overall has not decreased, but

We will eventually get There!


Recent recognition• Virginia’s security program rated #1 in the nation in 2008 by National Association of State CIOs (NASCIO)

• Virginia’s infrastructure partnership rated #1 in the nation by NASCIO

• Virginia’s Web site ranked #1 in the nation by the Center for Digital Government

• Virginia received a 2008 Telly Award for its security awareness video “The Duhs of Security”

• Virginia ranked #3 in the nation for all aspects of technology by the Center for Digital Government


References/Resources


Links/References

• VITA (Many thanks to VITA for providing much of the information used in this presentation!)http://www.vita.virginia.gov/• Virginia Information Technology Investment Boardhttp://www.vita.virginia.gov/itib• Virginia’s official portalhttp://www.virginia.gov• The Code of Virginia – IT governancehttp://leg1.state.va.us/cgi-in/legp504.exe?000+cod+2.2-2006•The Code of Virginia – PPEA (partnership vehicle)http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+TOC56000000022000010000000 •Technology oversighthttp://www.vita.virginia.gov/oversight/

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-2006

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+TOC56000000022000010000000

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+TOC56000000022000010000000

http://www.vita.virginia.gov/oversight/




Links/References

• IT Infrastructure Partnership homepagehttp://www.vita.virginia.gov/itpartnership • How we got here – proposals, historyhttp://www.vita.virginia.gov/itpartnership/default.aspx?id=381• Comprehensive infrastructure agreement – the contracthttp://www.vita.virginia.gov/itpartnership/default.aspx?id=451• Frequently asked questionshttp://www.vita.virginia.gov/itpartnership/default.aspx?id=379• Media kit and fact sheetshttp://www.vita.virginia.gov/itpartnership/default.aspx?id=6404• IT infrastructure transformation, schedulehttp://www.vita.virginia.gov/itpartnership/default.aspx?id=371

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