Have Prepared This Document For:
Operations Review Analysis
Analysis Date: March 2011
Copyright Notice: Material contained in this document is proprietary to Excipio Consulting, L.L.C. and is to be treated confidentially
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Table of Contents
EXECUTIVE SUMMARY ...................................................................................................................................... 4
SCOPE AND ASSUMPTIONS ............................................................................................................................... 7
BACKGROUND ............................................................................................................................................................... 7
DELIVERABLES ............................................................................................................................................................... 7
IN SCOPE ..................................................................................................................................................................... 7
PROCESS ...................................................................................................................................................................... 8
ASSUMPTIONS .............................................................................................................................................................. 8
AGENCY OVERVIEW ......................................................................................................................................... 10
END USER SUPPORT ......................................................................................................................................... 11
SERVICE DESK ............................................................................................................................................................. 11
DESKTOP AND LAPTOP SUPPORT ..................................................................................................................................... 18
SMART PHONES AND CELL PHONE SUPPORT ...................................................................................................................... 24
PRINTER, COPIER, AND MULTI‐FUNCTION PRINTER (MFP) SUPPORT ..................................................................................... 25
DATA CENTER OPERATIONS .............................................................................................................................. 30
MAINFRAME OPERATIONS ............................................................................................................................................. 30
SERVER OPERATIONS .................................................................................................................................................... 31
STORAGE AND BACKUP ................................................................................................................................................. 40
NETWORK AND TELECOMMUNICATIONS ........................................................................................................... 46
NETWORKING ............................................................................................................................................................. 46
SECURITY ................................................................................................................................................................... 50
TELECOMMUNICATIONS ................................................................................................................................................ 51
APPLICATION SUPPORT .................................................................................................................................... 53
APPLICATION LIFECYCLE ................................................................................................................................................ 53
APPLICATION SUPPORT ................................................................................................................................................. 54
STAFFING ......................................................................................................................................................... 56
OVERVIEW ................................................................................................................................................................. 56
STAFF WORKLOAD ....................................................................................................................................................... 56
STAFF TENURE ............................................................................................................................................................ 59
ORGANIZATIONAL STRUCTURE ........................................................................................................................................ 59
STAFFING LEVELS ......................................................................................................................................................... 66
SALARY RESEARCH ....................................................................................................................................................... 73
STAFF DEVELOPMENT ................................................................................................................................................... 75
ENTERPRISE SUPPORT ...................................................................................................................................... 79
PROGRAM MANAGEMENT ............................................................................................................................................. 79
PROJECT MANAGEMENT ............................................................................................................................................... 79
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CHANGE MANAGEMENT ............................................................................................................................................... 82
REPROGRAPHICS .......................................................................................................................................................... 82
STRATEGIC ROLES ........................................................................................................................................................ 86
MANAGEMENT DEVELOPMENT ...................................................................................................................................... 87
IT STEERING COMMITTEE .............................................................................................................................................. 87
TRANSITION PLAN & FINANCIAL IMPLICATIONS ................................................................................................. 90
DATA SOURCES ................................................................................................................................................ 96
APPENDIX A ‐ GOVERNANCE ............................................................................................................................. 97
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Executive Brief
Background
The Municipality of Anchorage (MoA) requested Excipio assess the information system (IS) and
information technology (IT) current state environment and define an appropriate future strategy to
optimize the existing investment in hardware and minimize the ongoing operations costs, while
understanding the support resource requirements.
Agencies in Scope
Operational Health and Sustainability
MoA technology operations provide exceptional service levels to MoA organizations with a strong focus
on customer service. All MoA Agency Directors provided positive feedback regarding the use of
technology and the level of support. However, the current support levels are costly to maintain and
difficult to sustain in the long-term. Across all agencies, technology is a reactionary culture, versus a
proactive culture, which is driven by a high service level expectation from the users they support.
Below are the areas of strength across all MoA technology teams:
 Customer service and support
o The staff strives to provide good customer service and takes great pride in their work
o The technical staff maintains high customer service in lieu of politics, management
instability, and the lack of a common goal across all agencies
o Although the technical infrastructure is outdated, the staff continues to keep
applications and services up and running
 The foundation for shared services is in place to allow the centralization of IT services
o Oversight Committee
o Centralized procurement
o Enterprise-wide policies and procedures in place (but not enforced)
o ITD is the single largest IT group and already provides a shared services model
From a cost perspective, the following graph represents a comparison to similar public sector clients and
overall Excipio client averages. Included in the industry standard financial metrics are infrastructure
Agency Name Total FTEs
Total PC
Users
Total
Servers
Total PC
Devices
Total Print
Devices
Anchorage Fire Department (AFD) 3 430 43 285 167
Anchorage Police Department (APD) 7 693 49 724 131
Health and Human Services (HHS) 3 210 21 275 198
Information Technology Department (ITD) 70 1,191 242 1,564 722
Solid Waste Services (SWS) 2 108 6 41 15
Anchorage Water and Wastewater Utility (AWWU)
Municipal Light and Power (ML&P)
Grand Total 85 2,632 361 2,889 1,233
Note: AWWU and ML&P reside on the MoA network, but were not included in the original scope of the assessment.
Not in Scope
Not in Scope
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hardware, hardware maintenance, and staff support costs. Excipio uses a stop-light color coding to
establish a performance comparison with typical client averages.
The higher cost metrics are attributed the following:
 Hardware Equipment Costs – This typically indicates a lack of standards or no enforcement.
For example, MoA supports a mixture of 13 personal computer manufacturers and more than
298 different models. Most organizations would have two to three manufacturers and 25-30
models in service. There is a tendency for each agency to view their requirements as being
“unique”, which results in lower economies of scale and lack of uniformity. Standardization is
the key to reducing IT costs.
 Staff Costs – The higher unit costs would indicate either overstaffing or a staff cost that is
much higher than comparable peers. Excipio finds the later to be true in the case of MoA. In
most technical functions, MoA is staffed appropriately. In general, the MoA significantly overcompensates
low-end positions by 25%-50% and underpays the specialized, highly skilled
resources and executives. While a significant portion of the excess can be attributed to the
costs of benefits and pension funding, the existing titles and compensation framework needs
to be reviewed and revised.
Recommendations and Results
Most of Excipio’s public-sector clients are consolidating and centralizing the IT function. In the current
state, MoA is well into this strategy with many successes through the Information Technology Department
(ITD); network, telephony, messaging, desktop support, and help desk functions are established for the
enterprise. Excipio has listed the following as opportunities to mitigate risk associated with operational
sustainability and improve the efficiency and effectiveness of the operation:
Strategic
 Complete the effort to centralize and federate technology operations for the enterprise, which
will require breaking existing cultural paradigms, removing politics, and realigning
expectations
 The MoA needs to have a single, comprehensive IT strategy across organization as a whole,
not multiple individual strategies that compete against each other for funding
 Continue down the path of selecting and implementing a new ERP in order to retire the costly
mainframe environment
 Establish formal technology service level agreements with customers
Client I Client II Client III
Excipio
Client
Average
MoA
Personal Computing ‐ Annual Cost per PC $532 $754 $595 $400 ‐ $600 $863
Windows Server ‐ Annual Cost per Instance $4,146 $1,474 $7,215 $4K ‐ $6K $3,601
Unix Server ‐ Annual Cost per Instance $1,432 $1,992 $4,984 $5K ‐ $8K $7,802
Data Storage ‐ Annual Cost per GB $2.69 $2.64 $8.38 $5 ‐ $10 $9.04
Data Backup ‐ Annual Cost per GB $3.93 $1.80 $1.09 $3 ‐ $5 $8.52
Network ‐ Annual Cost per Port $198 $87 $83 $200 ‐ $400 $438
Call Center ‐ Annual Cost per Contact $22.66 $26.11 $22.68 $15 ‐ $25 $48.12
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 Complete an application inventory and begin the consolidation/elimination of outdated
applications to reduce support costs and staff requirements
Data Center
 Invest in a consolidated enterprise data center facility
 Establish an executable disaster recovery and business continuance plan for the enterprise
Financial
 Consider outsourcing commodity service offerings: Service Desk, Reprographics, Geographic
Information Systems, and Desktop Support.
 Develop a transparent cost recovery model based on user consumption and service levels
 Realign position titles and responsibilities with appropriate market-based compensation
Metrics
 Reduce the number of active technology projects based on priority and impact to the
organization; focus on the main objectives and eliminate distractions
 Incorporate complete governance and enforcement, particularly in the area of policy and
standards
 Establish operational productivity metrics and set performance goals for improvements
Cost Savings and Cost Avoidance
Upon review of the opportunities for cost savings, there is no low-hanging fruit. Most of the
recommendations require investment and a clear commitment to realize future cost savings.
However, all of the recommendations would improve the culture, operational
efficiency/effectiveness, and reduce operational risk. True cost savings yield would be a result of
proper implementation and managing these initiatives. The operations review outlines potential
financial savings in the following chart:
Observations:
 Of the one-time capital spending, nearly all of it is due to the data center remodeling project.
 As a whole, the MoA is underinvested in technology, processes, and automation.
Financial Impact
Minimum
Potential
Impact
Maximum
Potential
Impact
One Time Capital Spending $ (1,700,000) $ (2,800,000)
Projected Annual Savings $ 1,772,500 $ 2,395,000
Total Five Year (Cost)/Savings $ 7,162,500 $ 9,175,000
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Scope and Assumptions
Background
The Municipality of Anchorage (MoA) requested Excipio assess the information system (IS) and
information technology (IT) current state environment and define an appropriate future strategy to
optimize the existing investment in hardware and minimize the ongoing operations costs, while
understanding the support resource requirements. Excipio understands the current environment to have
the following characteristics:
 Organizations/Agencies In-scope:
o Information Technology Department (ITD)
o Anchorage Police Department (APD)
o Anchorage Fire Department (AFD)
o Health and Human Services (HHS)
o Solid Waste Services (SWS)
 Approximately 2,632 end users
 An estimated 361 servers
 Approximately 85 IS/IT resources
Deliverables
The final deliverable will focus on the following elements:
 A recommendation for organizational structure;
 A recommendation of staffing levels for each area of support;
 A staff skills assessment of IT staff within scope;
 An inventory of hardware for all IT areas that are in scope;
 Recommendations on areas for consolidation;
 Findings and recommendations on current IT strategies;
 Detailed cost comparisons and service implications of major alternatives for consolidation;
 A recommended resource and staffing transfer plan for the proposed solution, including any
shared services and strategic sourcing (outsourcing, insourcing and co-sourcing);
 A transition plan and schedule for the recommended solution.
In Scope
This engagement includes a review and analysis of the following components defined below:
 Server Operations
 Storage and Backup Operations
 Network Operations
 Personal Computing Management
 Print Management
 Helpdesk Operations
 Organizational Structure
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Process
To gather all of the information for this analysis, Excipio provided MoA IT staffs with data collection
templates. After the data was initially populated, Excipio used the following data sources to gain
additional information into the daily operations practices:
 MoA internal Subject Matter Experts (SMEs) currently responsible for technical operations,
data center facilities, and business leadership.
 MoA internal facilities documentation via invoices, bids, contracts, or spreadsheets from the
SMEs.
 External vendor documentation and pricing from vendors’ web sites and contacts provided by
the client.
 Industry standard information and engineering analysis from past Excipio clients.
After interviewing the SMEs, Excipio cross-referenced the data against internal documentation to check
for discrepancies or large deltas. The data was categorized and analyzed for material impact to the
bottom line, overall risk, and probability of occurrence. Any areas of discrepancy were brought to the
attention of the MoA staff for clarification or additional explanation. Excipio also used relevant data points
from other Excipio clients, industry analysts, and research articles.
Assumptions
Excipio assumes all information provided by MoA is materially accurate and complete, as undisclosed
variances could have a significant impact on the recommended results. The assumptions section below
outlines assumptions made or data points needed to complete the analysis.
Finance
 All hardware and software pricing was obtained from MoA. Where information was not
available, Excipio assumed the data by using other assets with similar configurations or used
actual data from similar client engagements.
 MoA does not have a state income tax rate.
 The accuracy of the economics is based on the quality of the financial information provided
by the client, which is +/- 10% variance.
 The extent of the economic results is intended to assist in directional planning purposes only.
This is not a bid for services, nor is either party contractually bound to execute under this
engagement.
 Annual maintenance costs for all hardware were assumed to be inclusive of 5-year
maintenance at acquisition. Where extended maintenance expense was not provided, 20%
of the purchase was applied. If information received states that maintenance was not
purchased, no cost was applied.
 Excipio assumes the following depreciation schedules:
o Data center facility equipment – 15 years
o Servers – 5 years
o Desktop workstations – 5 years
o Laptops and handheld devices – 3 years
o Printers, copiers, fax, and scanners – 5 years
o Backup & storage equipment – 5 years
o Network switches, routers, and security devices – 5 years
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Data Center Facilities
 Utility Power – Utility usage is based on rated watts (W) for equipment power supplies at a
power factor of 45% to 65% to establish the range between normal and peak demand.
 Utility Power Cost is $0.10 per kWh.
 Any missing power, cooling, security, or fire system equipment costs, and the associated
maintenance, was estimated from similar Excipio engagements and vendor estimates.
Server Infrastructure
 Server Equipment – Missing models were assumed by other factors provided - manufacturer,
primary purpose, and similar configuration. Missing processor family, cores, and speeds
were assumed based on similar manufacturer/model for the missing data.
 Operating Systems - Excipio applied assumptions for the missing OS and version based on
server manufacturer, model, and processor similarities.
 Ownership - Excipio assumes all server equipment is owned by MoA.
 Hardware Age - Acquisition year was based on the release year of the model, processor
family, and speed.
Printer HW
 Printer Inventory – Missing leased print devices are assumed at an average annual cost of
$2,000. Replacement and maintenance costs were assumed using similar model costs.
Otherwise, the costs were estimated at retail pricing.
 Printer Equipment Age – The age of the equipment is based on model release year or similar
models provided.
Network
 Network Equipment – Device type was assumed based on manufacturer model.
 Active Ports – Excipio assumed port counts at 2.5 ports per user PC.
 Telephony Equipment Cost – Annual maintenance and replacement costs were assumed
using pricing from provided agreements.
Service Desk
 Service Desk Hardware and Software – Annual maintenance and replacement costs were
listed as network equipment.
 Service Desk Statistics – Performance metrics were calculated using data and reports
provided.
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Agency Overview
This section identifies the agencies that were included in this assessment and provides a high-level
summary of technical operations. The data shows there are 85 full-time equivalent resources (FTEs)
providing services and support to 2,632 MoA users.
Agencies in Scope
Conceptually, MoA technology is structured as a shared service model with ITD providing the technical
services, which is considered a best practice in the industry. However, the service model is not fully
implemented, as many agencies have only adopted a subset of the services offered.
ITD provides enterprise services such as telephony, network, email, and help desk are core service
offerings to MoA. With the exception of HHS, all agencies support and manage their own infrastructure
(i.e. servers, storage, backup, desktops, etc.), even though the services are offered by ITD. All agencies
independently support their own business line applications. In conclusion, the shared service model for
MoA is incomplete at this time.
In January of 2010, an IT Steering Committee was formed as an oversight authority for technology related
decisions for MoA. This council is made up of MoA management from the various agencies that
represent the organization as a whole. The council is responsible for approving all technology decisions
for MoA including technology strategy, policy, and direction.
Agency Name Total FTEs
Total PC
Users
Total
Servers
Total PC
Devices
Total Print
Devices
Anchorage Fire Department (AFD) 3 430 43 285 167
Anchorage Police Department (APD) 7 693 49 724 131
Health and Human Services (HHS) 3 210 21 275 198
Information Technology Department (ITD) 70 1,191 242 1,564 722
Solid Waste Services (SWS) 2 108 6 41 15
Anchorage Water and Wastewater Utility (AWWU)
Municipal Light and Power (ML&P)
Grand Total 85 2,632 361 2,889 1,233
Note: AWWU and ML&P reside on the MoA network, but were not included in the original scope of the assessment.
Not in Scope
Not in Scope
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End User Support
Service Desk
Current State
The service desk is one key area that will require immediate attention to improve the overall
services offered by MoA Information Technology Department (ITD). The following section
documents some key fundamentals required for any service desk to establish appropriate goals
and objectives. The values in the chart below have been compiled from Excipio clients with
properly functioning service desks.
The following analysis is based on industry best practices as defined by Gartner, The Help Desk
Institute, Support Services Professional Association, and Excipio’s experiences with other leading
providers of support services (CompuCom, Insight, and Unisys). Industry studies show that
desks progress through a standard set of maturity stages:
Re-Active
 Newer Help Desk
 Fire Fighting mode
 Lacking tools, process, staffing and training programs
 No client/partner relations
 Help Desk may be bypassed
 Underground support is primary support method
 Help Desk defined as “ticket takers”, not problem solvers
Responsive
 Begin a leveling-off of call volumes and staffing levels
 Early stages of tool deployment, some automation in place
 Telephony tools are in place (ACD, reader boards, etc.)
 Problem Management System
 Knowledge Base is implemented and in use
 Network of problem solvers in place
 Extensive agent training
Pro-Active
 Best Practices in place for process, technology, resources, employee/customer
relations
 Pro-active efforts toward call avoidance
 Anticipate and plan for customer support demands
 Maturation of support technology deployment
 Call volume decreases but complexity increases
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Preventative
 Mature problem management processes in place
 Focus is on problem elimination
 Support automation in place to fix problems before the end user is impacted
 Large percentage of contacts are submitted using support automation tools
 Incidents that come to Help Desk are complex
 Technical skills of agents must be advanced.
Based on the findings during this analysis, the service desks across the MoA operate at a
very basic or “reactive” maturity level. However, some attributes of a responsive maturity
level do exist. Agencies provided the following details used to summarize the service
desk environment.
Service Desk Inventory
Observations:
 No formal Knowledge Management System (KMS) exists.
 Altiris is the solution for problem and incident management. Smaller agencies are more
informal and represent no formal use of the system.
 The service desk solution does not include automation or user self-help services.
Metrics:
The following are examples of reports typically found in Information Technology
Infrastructure Library (ITIL) compliant service desks.
Agency ACD
Reader
Board
Voice
Mail
Problem Mgmt
System
Knowledge
Mgmgt System
Self Help
System
Incident Mgmt
System
AFD N N Y N Informal N N
APD N N Y Altiris N N Altiris
HHS N N Y Altiris N N Altiris
ITD Y N Y Altiris Informal N Altiris
SWS N N Y N N N N
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Figure SD – 4: Service Desk Metrics
Weekly Reports - Automatic
 Call Activity Reports – Tracks the total number of inbound and outbound calls
by number, extension, or queue. This report should be viewed no less than
weekly, preferably daily, for trending or Work Force Management scheduling.
 Agent Performance Metrics – Tracks the call activity of the customer service
representative (CSR). Measurements typically tracked are occupancy,
utilization, after-call work, and average handle time. A critical metric is First
Call Resolution (FCR), which measures the ability of the CSR to triage and
resolve an inbound call without transferring to another agent or group for
second level support.
 Desk Side Performance Metrics – Tracks information on the desk side
incidents, resolution time, parts used, assigned technician, and equipment type
for root cause analysis and trending.
Monthly Reports - Automatic
 Problem Types – This report would provide information on the number of calls
and type of problem by predefined category (password reset, Microsoft Office,
printers, network, etc.), and the resolution duration to compare against service
level agreements (SLAs).
 Problem Outage Reports – Tracks all the information on major outages, their
duration, and the associated resources involved in resolving the issue.
Metric
Capture
Method
Recommended
Publishing
Frequency
Current Status
Call Activity Reports ACD Weekly Minimal use of the ACD for metrics
Agent Performance Metrics ACD Weekly Minimal use of the ACD for metrics
Desk‐Side Performance Metrics PMS Weekly No service levels in place, minimal metrics tracked
Problem Types PMS Monthly No service levels in place, minimal metrics tracked
Problem Outage Reports PMS Monthly Appropriate level of detail not tracked
Trend Analysis PMS Quarterly Appropriate level of detail not tracked
Cost per Call/incident
Manual Cost
Model
Quarterly Limited use, no consistency across the agencies
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Quarterly Reports - Manual
 Trend Analysis – This is a capability that combines many of the other reports
used to develop meaningful trending - Root Cause Analysis, Mean Time
Between Failures, Vendor Equipment Failures, and Frequent Flyers (meaning
users who call for support more than others).
 Cost per Call / Incident – One of the more sought-after measurements in
Service Desk operations is the cost to operate various contact channels such
as telephone, email and web chat. Service Desks attempt to lower their
operating costs by channeling customer traffic through less-expensive selfservice
channels and providers of self-service software often use cost-peraccess
metrics to substantiate their claims for return on investment. Used in
moderation, Cost per Call is a reasonable metric to track Service Desk
efficiencies.
The metrics in the following chart were provided by the agencies and could not be validated for
accuracy by Excipio. The agencies that could not provide these metrics employ an informal
service desk and do not track service productivity or performance.
Service Desk Monthly Statistics
Chart Observations
 The lack of information regarding agent utilization and occupancy reflects a
relatively unsophisticated capability across the MoA as a whole. Statistical
incident tracking measures support staff productivity and, more importantly,
trends symptoms to proactively identify larger issues.
 The estimated number of calls reported per end user (.91) for the ITD service
desk is less than the industry average (1.5 per end user). This would indicate a
user practice of informal support (i.e. “help your neighbor”) or a large
percentage of calls not being captured. Excipio expects that the call count gap
is associated with untracked methods, such as customer created tickets via
web or email, and voice messages left due to agent availability.
 The number of tickets being generated was not provided. For a mature service
desk, the First Call Resolution (FCR) should be in the 70%-80% range with an
Agency
Total Calls
(Inbound &
Outbound)
Total
Calls per
FTE
Estimated
Number of
Calls per
End‐User
Number of
Self‐Service
Calls
Number of
Tickets
Logged
Number of
Password
Resets
Number of
Walk‐up
Requests
Percent (%)
FTE
Utilization
Average (%)
Percent
Occupancy
Adherence
per FTE,
Utilization %
Average
Handle Time
(seconds)
AFD
APD 100% 90% 100%
HHS
ITD 2,391 598 0.91 476 70% 224
SWS
Totals 2,391 598 0.91 0 0 0 476 100% 80% 100% 224
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Average Handle Time (AHT) of 10 minutes, depending on the scope of services
provided by the desk. This metric also does not take into account the informal
support processes, which result in no ticket by the service desk.
 The AHT (224 seconds or 3.73 minutes) would indicate that the service desks
operate as call centers; the agents capture the name, phone number, and the
issue, and then forward the ticket on to a resolver group. In a true service
desk, the issue would be addressed at the first point of contact and call
durations would be closer to 10 minutes.
Monthly Statistics – Cont’d
The general lack of metrics, across the agencies, reflects a low maturity level. Based solely on
the reported information, the most comprehensive service desk would appear to be ITD’s, which
is still a reactive call center.
Service Desk Cost Model
Observations
 Altiris is the current system and all agencies have access to the system. Altiris’ reporting
capability is in development, but the system does not interface with all contact types
(web, email, etc.). Smaller agencies voiced a lack of time to update the system with all
tickets. Direct contact with support FTEs is the standard across the enterprise, which
typically does not result in an Altiris ticket.
 The MoA does not currently have a true “service desk” as defined by ITIL, but more as a
call center. Service desks are typically characterized by high first call resolution rates
Agency
Calls
Answered
by Staff
Contacts
Answered
other than
by Staff
Abandonment
Rate (%)
Average
Talk Time
(min)
Average Call
Closure
Time (min)
Average
Speed of
Answer
(seconds)
Average
Hold Time
(seconds)
Average Call
Back Time
(hrs)
AFD
APD 2% 20 20 60 120 0.33
HHS
ITD 846 8 7% 4 24 28
SWS
Totals 846 8 5% 12 20 42 74 0.33
A B C=A/B D E F G=E*F H=C+D+G I J=H/I
Agency
Total
Hardware
Cost
Useful Life
(yrs)
Annualized
Hardware
Costs
Avg Annual
Software
Maintenance
Cost
Number of
Support FTEs
Avg FTE
Burdened
Cost
Total Annual
FTE Cost
Total Annual
Service Desk
Cost
Total Annual
Service Desk
Calls
Total Cost
per Call
AFD
APD
HHS
ITD ‐ 5 $ ‐ $ 15,325.40 4 $ 119,492 $ 477,968 $ 493,293 10,252 $ 48.12
SWS
Totals ‐ ‐ $ 15,325.40 4 $ 119,492 $ 477,968 $ 493,293 10,252 $ 48.12
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(>70%) and systematic support processes. Call centers are geared more towards call
triage and routing of tickets to other support groups than call resolution.
 For most of the agencies, the service desk capability is shared or rotated across various
operational support roles. Issues are logged and managed through an informal process
geared towards providing “best efforts” service and do not have service levels
commitments in place. The service desks would best be characterized as Level I desks.
 General Administration requests (password resets, requests, etc.) are not automated and
require manual intervention. ITD is in the process of expanding the web-based capability
for request forms (procurement, permissions, application, access, etc.).
 More than 90% of the calls are believed to occur during normal business hours (7AM-
5PM).
Based on MoA call statistics and the following assumptions, Excipio was able to produce other
statistics based on the information from the ITD Service Desk using the following assumptions:
 47 weeks per year
 21.7 coverage days in a month
 40 hours per week per agent
 9 hours of support coverage
Observations
 The true Occupancy Rate is 28%.
 The “on phone” utilization is only 44.56 hours per month per FTE.
 For appropriate desk coverage, 4.38 FTEs are required.
Excipio developed another scenario using the same call data and assumptions from above, but
used 75% Occupancy Rate.
A B C D = A * B E = D / 60 F = E / C
G = (47 * 40 /
12) * C
H = E / G I = 9 * 21.7 J = I / F
Contacts
(Inbound,
outbound,
walk‐ups)
Average
Handle Time
(min)
Desk
Agents
Monthly
Average On
Phone Minutes
Monthly
Average On
Phone Hours
Monthly On
Phone Hours
per Agent
Desk Agent
Available
Coverage
Hours
Occupancy
Rate
Required
Coverage
Hours per
Month
Minimum
FTE for
Coverage per
Shift
2,867 3.73 4 10,694 178 44.56 627 28% 195.3 4.38
A B C D = A * B E = D / 60 F = E / C
G = (47 * 40 /
12) * C
H = E / G I = 9 * 21.7 J = I / F
Contacts
(Inbound,
outbound,
walk‐ups)
Average
Handle Time
(min)
Desk
Agents
Monthly
Average On
Phone Minutes
Monthly
Average On
Phone Hours
Monthly On
Phone Hours
per Agent
Desk Agent
Available
Coverage
Hours
Occupancy
Rate
Required
Coverage
Hours per
Month
Minimum
FTE for
Coverage per
Shift
2,867 3.73 1.52 10,694 178 117.50 238 75% 195.3 1.66
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Observations
 The Occupancy Rate is 75%.
 The “on phone” utilization is 117.5 hours per month per FTE.
 To cover the operational hours, 1.52 FTEs are required. To cover the nine-hour
hypothetical shift used, 1.66 FTEs are appropriate.
Service Desk Benchmarks
Observations:
 The comparable peers operate service desks that function more closely to a call center
with similar performance metrics as the ITD desk.
 MoA’s Cost per Call ratio is more than double the comparable peer and the Excipio client
range.
 The higher cost is mainly attributed to support costs.
Recommendations
The primary recommendation is to outsource this capability for the following reasons:
 The current costs are not competitive for MoA to host a service desk. As shown above,
the current cost per call is more than $48 per call, which is more than double the cost for
an outsourced solution. This is largely due to the high
overhead structure of the staff.
 Based on the number of calls to the Service Desk, end
user participation is low. A service desk should expect
1 to 1.5 calls per user per month. The Service Desk
should have more than 7,000 calls per month…
 The Service Desk is relatively immature, thus it would
be easy to dramatically improve service to the end
users without a long, complex transition.
 The physical location of the Service Desk has no
geographical requirements, thus a third party service could be located anywhere in the
world.
Should the MoA decide to keep the Service Desk, the recommendations are as follows:
Client I Client II Client III
Excipio
Client
Average
MoA
Number of Annual Calls 10,056 8,652 12,456 Varies 10,252
FTEs 3 2 4 Varies 4
Total Annual Costs $ 227,868 $ 225,912 $ 282,440 Varies $ 493,293
Annual Cost per Call $22.66 $26.11 $22.68 $15 ‐ $25 $48.12
Outsource the Service Desk
due to:
 Cost structure
 Limited use
 Low maturity
 Lack of geographical
constraints
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1) Continue to develop meaningful performance metrics related to overall service desk
productivity versus staff utilization. Help Desk/Service Desk operation requires dedicated
resources focused on incident resolution, not balancing multiple operational roles.
2) Accumulate all agencies’ support effort statistics into a centralized reporting mechanism.
3) Incorporate cost metrics into statistical reporting to realize the value of the service desk for
the enterprise.
Desktop and Laptop Support
Current State
In general, each agency is responsible for supporting its hardware, operating systems, and
application stacks unless agencies have contracted with ITD to provide desktop support. The
current environment includes the following hardware:
Hardware Inventory
The PCs are a mixture of 13 manufacturers with Dell the primary desktop vendor and
Panasonic for laptops, excluding 77 handheld devices. The PCs represent a wide range
of models across vendors, as more than 298 different models are currently in place.
Component Qty % of Total
Average
Age
Desktops 1,896 65.6% 2005
Laptops 8 40 29.1% 2003
Smartphones 77 2.7%
Tablets 33 1.1% 2003
VDI 43 1.5%
Grand Total 2,889 100% 2004
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PCs by Manufacturer
PC Models by Manufacturer
Metrics
The average PC age is six to seven years, as shown below. Note that the charts below use the
following color legend:
 Green indicates years that would be included in the current average useful life across all
agencies.
 Red indicates years outside the useful life reported.
 The black vertical line indicates the average age of the devices across all agencies.
Manufacturer PC Count %
Dell 1541 54.8%
LENOVO 451 16.0%
Panasonic 384 13.7%
HP/Compaq 283 10.1%
Matsushita 40 1.4%
Data911 34 1.2%
VMware, Inc. 28 1.0%
Tangent 26 0.9%
Xplore 12 0.4%
Libramation 8 0.3%
All Others 5 0.2%
Totals 2,812 100%
Manufacturer Estimated
Model Count
%
Dell 137 46.0%
LENOVO 100 33.6%
HP/Compaq 33 11.1%
Libramation 8 2.7%
Matsushita 6 2.0%
Panasonic 4 1.3%
Xplore 2 0.7%
AOpen 2 0.7%
FUJITSU 2 0.7%
Data911 1 0.3%
VMware, Inc. 1 0.3%
Tangent 1 0.3%
Gateway 1 0.3%
Totals 298 11%
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Desktop Aging
Laptop Aging
‐
100
200
300
400
500
600
700
800
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
‐
50
100
150
200
250
300
350
400
450
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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PC Summary by Agency
PC Environment Metrics by Agency
PC Cost Analysis
A B C = B / (A+B) D E=(A+B)/D F G = (A+B)/F
Agency Name
# of
Desktop
PCs
Average
Desktop
Age
# of
Laptop
PCs
Average
Laptop
Age
% Laptop
# of PC
Users
PCs per
User
# Supported
PCs
Support
FTEs
Support
Ratio
PC/FTE
Est Support
Cost per PC
ITD 1,164 2005 323 2004 22% 1,191 1.25 2,047 8.00 256 $ 470
APD 308 2004 416 2002 57% 693 1.04 724 1.75 414 $ 297
AFD 212 2004 73 2005 26% 430 0.66 $ 458
HHS 218 2005 57 2004 21% 210 1.31 $ 487
SWS 37 2004 4 2007 10% 108 0.38 41 0.35 117 $ 1,038
Totals 1,939 2005 873 2003 31% 2,632 1.07 2,812 10.10 278 $ 550
Note: AFD and HHS Cost per PC includes IGCs for Desktop Support Services.
Agency
Name
H/W
Manufacturers
Average Age Total PCs
PC Support
FTEs
PCs per
Support
FTE
ITD 8 5.6 4.6 2,047 8.00 256
APD 2 6.9 3.0 724 1.75 414
AFD 7 5.7 4.5
HHS 3 5.6 5.0
SWS 1 4.4 4.8 41 0.35 117
Totals 4.2 5.6 2,812 10.10 278
Excipio
Assumed
Refresh Rate
Support Cost
A B C = A * B D E = C / D F G H = F * G I = H / A J K = F + H + K L = K / A
Agency
Total
PCs
Avg Cost
per PC
Total
Hardware Cost
Useful
Life (yrs)
Annualized
Hardware
Cost
Number of
Support
FTEs
Avg FTE
Burdened
Cost
Total
Annual FTE
Cost
Total FTE
Cost per PC
Annual
Service Cost
Total Annual
Cost
Annual
Cost per PC
ITD 1,487 $ 1,130 $ 1 ,680,855 5.0 $ 336,171 8.00 $ 120,342 $ 962,734 $ 470 $ 1,298,905 $ 635
APD 724 $ 2,974 $ 2 ,153,286 5.0 $ 430,657 1.75 $ 122,962 $ 215,184 $ 297 $ 645,841 $ 892
AFD 285 $ 1,465 $ 417,416 4.3 $ 97,073 $ 130,573 $ 227,647 $ 799
HHS 275 $ 1,165 $ 320,499 5.0 $ 64,100 $ 133,880 $ 197,980 $ 720
SWS 41 $ 1,276 $ 52,300 3.6 $ 14,528 0.35 $ 121,649 $ 42,577 $ 1,038 $ 57,105 $ 1,393
Totals 2,812 $ 1,645 $ 4,624,356 4.9 $ 942,529 10.10 $ 120,841 $ 1,220,495 $ 434 $ 2,427,478 $ 863
Note: ITD Annual Cost per PC includes AFD and HHS PC counts.
Hardware Costs Labor Cost Metrics
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PC Benchmarks
Observations:
 MoA’s Cost per PC is 27% higher than the average comparable peer and 42% higher
than the Excipio client range.
 The increased cost can be attributed to higher hardware and support costs
Recommendations
Like the Service Desk, this is an area where outsourcing could easily generate savings of 30%
and higher. Unlike the Service Desk which has no geographic boundaries, Desktop Support
would require local resources. Excipio is not familiar with the cost structure of the Anchorage
market, but our research indicates that multiple options exist. At a minimum, Excipio would
expect a local provider to be 30% less in cost, solely due to the MoA’s burden structure.
The only downside to outsourcing Desktop Support is the
high amount of customer service provided by this team. In
nearly all cases, the teams pride themselves in providing
“high touch”, support, meaning that they go above and
beyond for the end users. While this may be desired by the
end users, this is not necessarily the most efficient means of
support. Most organizations will define a list of VIPs (10% -
15%) that receive high levels of service, while the rest of the
staff receives next business day service.
Should the MoA decide to keep support internal, consider the following priorities:
1) Focus on Education – With very few exceptions, there is little difference in hardware
requirements from one agency to the next. What differ are the agency-specific applications
that run on these platforms. Desktop and laptop hardware is a commodity from the operating
system down, and should be supported by a single support
entity across the MoA. For example, APD operates with
Panasonic Toughbooks for mobile laptop technology in
patrol cars. The price paid for the Toughbooks is
significantly higher than the costs seen in other clients.
Look for manufacturers that offer competitive alternatives at
a lessor cost to accommodate the actual need requirements
Client I Client II Client III
Excipio
Client
Average
MoA
Number of Devices 2,601 2,500 3,030 Varies 2,812
Number of Users 1,850 1,535 2,750 Varies 2,632
FTEs 9 16 9.6 Varies 10.1
Total Annual Costs $1,383,513 $1,884,902 $1,801,595 Varies $2,163,024
Annual Cost per PC $532 $754 $595 $400 ‐ $600 $863
If kept internal, focus on:
 Education
 Desktop virtualization
 Hardware refresh
 Leveraging vendors
Outsource potential due to:
 Cost structure
 Availability of local
options
Risks:
 Current end user
expectations
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for durable mobile laptop devices.
2) Research Desktop Virtualization – Many aspects of desktop utilizations would benefit from
desktop virtualization. Based on network capabilities, many functional desktop sessions
could operate in a virtualized environment. Virtual Desktop Infrastructure (VDI) should be
given serious consideration, not for the minimal financial benefits, but for the intangibles:
a) Increased Life for PC Assets: When the processing is done on the server, existing
assets can be kept in service until they fail or on much smaller devices.
b) Increased security: All data is stored on servers and not on desktops and laptops
c) Access: Staff can work from any location at any time. This is ideal for severe
weather, disaster recovery, and after hour’s projects.
d) Software as a Service: More and more applications are going to “the Cloud”, which
already uses this type of model.
e) Technology Independence: With VDI, MoA could greatly relax hardware
requirements. In many cases, a “bring your own technology” policy could be
implemented, as all work-related processing would occur within a virtual session.
3) Refresh and Standardize - The number of manufacturers and models is excessive, but is not
uncommon in a distributed IT capability. The average age of the PCs overall indicates the
lack of a regular refresh policy. The average age of desktops is 2004, with 63% beyond the
5-year useful life. The average age of laptops is 2003, with 96% beyond the 3-year useful
life.
4) Leverage External Vendors - None of the agencies currently use external suppliers to load
PC images at the point of procurement. Even where image deployment is in use, the process
is not automated and still requires significant manual intervention. In addition, technicians
still spend time performing end user customizations, which add little value to the mission of
the Municipality. While some agencies have attempted to create standard images, the
images do not span across all agencies.
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Smart Phones and Cell Phone Support
In general, the requested inventory provided was materially incomplete as ITD was the only agency to
provide inventories. The following generalizations were drawn given the limited responses provided.
Smartphone and Blackberry devices are included in the environment and are supported by the local
agency IT staff. Where the agency leverages the enterprise email architecture, ITD provides support for
Blackberries, the current platform standard. The current environment includes the following devices:
Smart Phones
Recommendations
The policies surrounding cell phones varies greatly from organization to organization. The
following are the most common solutions and trends found across Excipio’s client base:
 Enterprise Acceptance – It appears the use of mobile hand-held devices is relatively new to
MoA. If asked for justification, most users would include a list of benefits of this convenience.
However, the trend of many organizations is to leverage this technology.
 Governance – Although a new trend, this growing presence needs to include adopting
governance related to support capabilities, standards, and policy. Handheld devices include
a variety of personal preferences, which will make the standard hard to develop. Industry
standard trends indicate a choice limiting the options to a single or dual-manufacturer based
on proven presence in the market of three to five years.
Manufacturer Row
Labels
Model
Count Total Qty %
4 2
3S 2
8110 1
8310 32
9000 18
9700 19
9800 2
8330m 1
Totals 8 77 100%
RIM ‐ Blackberry 73 95%
Apple ‐ IPhone 4 5%
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Printer, Copier, and Multi-Function Printer (MFP) Support
Current State
 Troubleshooting of commodity printers is provided by the local IT staff, but hardware
support may or may not be included in the cost of the consumables (cost per click). The
support model varies greatly based on the department and the device. The MoA
currently has 1,233 print devices within the scope of this study, which is an excessively
high number based on best practices.
 Copiers and enterprise MFP devices are typically leased from a third party. These lease
arrangements usually include regular maintenance and support.
 Printers present a special challenge, as a single standard or implementation strategy
does not exist even though standards have been defined by ITD.
Copiers and MFP Devices by Manufacturer
 Device use by agency is between 1.14 users per printer and 8.31 users per printer.
HP
59%
Kyocera
6%
Canon
4%
Brother
4%
Sharp
3%
Dymo
3% UPEK
3% Dell
3%
Fujitsu
2%
Digital
2%
Xerox
2%
Lexmark
1%
Zebra
1%
Pentax
1%
Savin
Epson 1%
1%
Logitech
1%
Others
3%
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Total Printers by Agency
Metrics
The number of printers and their age covers a span of more than 20 years. The following chart
uses the color legend:
 Green years are current operating models.
 Yellow years are end of life where efficiency begins to fall off,
 Red reflects printers that should be replaced or consolidated,
 The black vertical line reflects the average age across all reported devices.
Note: Based on data provided, only 42% of the requested inventory was complete, thus this
quantity was used to extrapolate the characteristics for the total equipment population.
Reviewing the chart below, the red and yellow years represent 43% of the environment.
Printer Aging
Agency
Name
# of Total
Print/Copy
Devices
# of Models
# of
Manufactures
# of Users
Users per
Print/Copy
Device
Included
Number of
Copiers and
MFPs
Adjusted
Users per
Print/Copy
Device
AFD 167 66 14 430 2.57 51 3.71
APD 131 48 6 693 5.29 18 6.13
HHS 198 66 15 210 1.06 14 1.14
ITD 722 304 25 1,191 1.65 198 2.27
SWS 15 14 4 108 7.20 2 8.31
Totals 1,233 100 13 2,632 2.13 283 2.77
0
20
40
60
80
100
120
Lease
1987
1989
1992
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
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Total Device Breakdown by Agency
Copier Breakdown Analysis
MFP Breakdown Analysis
A B C = A * B D E = C / D F G = E + F H I = H / A J = G / H
Agency Total Devices
Avg Cost
per Device
Total
Hardware
Cost
Useful
Life (yrs)
Annualized
Hardware
Cost
Annual Lease
Rate / Maint
rate
Total Annual
Cost
Total PC
Users
Users per
Print
Device
Cost per
PC User
AFD 167 $ 1,685 $ 281,410 5 $ 56,282 $ 56,282 430 2.6 $ 131
APD 131 $ 1,335 $ 174,850 5 $ 34,970 $ 34,970 693 5.3 $ 50
HHS 198 $ 1,706 $ 337,700 5 $ 67,540 $ 2,500 $ 70,040 210 1.1 $ 334
ITD 722 $ 969 $ 699,300 5 $ 139,860 $ 233,295 $ 373,155 1,191 1.6 $ 313
SWS 15 $ 1,830 $ 27,450 5 $ 5,490 $ 480 $ 5,970 108 7.2 $ 55
Totals 1,233 $ 1,233 $ 1,520,710 5 $ 304,142 $ 236,275 $ 540,417 2,632 2.1 $ 205
A B C = A * B D E = C / D F G = E + F H I = H / A J = G / H
Agency
Name
Total Copiers,
Fax, Scanners
Avg Cost
per Device
Total
Hardware
Cost
Useful
Life (yrs)
Annualized
Hardware
Cost
Annual Lease
Rate / Maint
rate
Total Annual
Cost
Total PC
Users
Users per
Print
Device
Cost per
PC User
AFD 34 $ 3,224 $ 109,600 5 $ 21,920 $ ‐ $ 21,920 430 13 $ 51
APD ‐ $ ‐ $ ‐ 5 $ ‐ $ ‐ $ ‐ 693 0 $ ‐
HHS 31 $ 2,946 $ 91,336 5 $ 18,267 $ 2,500 $ 20,767 210 7 $ 99
ITD 128 $ 532 $ 68,050 5 $ 13,610 $ 72,000 $ 85,610 1,191 9 $ 72
SWS 2 $ 250 $ 500 5 $ 100 $ ‐ $ 100 108 54 $ 1
Totals 195 $ 1,382 $ 269,486 $ 53,897 $ 74,500 $ 128,397 2,632 13 $ 49
*Costs are exclusive of consumables (paper, ink, toner, etc.), as these costs are not tracked consistently across the agencies
A B C = A * B D E = C / D F G = E + F H I = H / A J = G / H
Agency
Name
Total MFPs
Avg Cost
per Device
Total
Hardware
Cost
Useful
Life (yrs)
Annualized
Hardware
Cost
Annual Lease
Rate / Maint
rate
Total Annual
Cost
Total PC
Users
Users
per Print
Device
Cost per
PC User
AFD 36 $ 1,763 $ 63,450 5 $ 12,690 $ 12,690 430 12 $ 30
APD 18 $ 1,000 $ 18,000 5 $ 3,600 $ 3,600 693 39 $ 5
HHS 5 210
ITD 111 $ 225 $ 25,000 5 $ 5,000 $ 161,295 $ 166,295 1,191 11 $ 140
SWS 2 $ 4,900 $ 9,800 5 $ 1,960 $ 480 $ 2,440 108 54 $ 23
Totals 167 $ 696 $ 116,250 $ 23,250 $ 161,775 $ 185,025 2,632 16 $ 70
*Costs are exclusive of consumables (paper, ink, toner, etc.), as these costs are not tracked consistently across the agencies
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Laser Printer Breakdown Analysis
Other Printer Breakdown Analysis
A B C = A * B D E = C / D F G = E + F H I = H / A J = G / H
Agency
Name
Total
Printers
Avg Cost
per Device
Total
Hardware Cost
Useful
Life (yrs)
Annualized
Hardware
Cost
Annual
Lease Rate /
Maint rate
Total Annual
Cost
Total PC
Users
Users
per Print
Device
Cost per
PC User
AFD 97 $ 1,117 $ 108,360 5 $ 21,672 $ ‐ $ 21,672 430 4 $ 50
APD 112 $ 1,396 $ 156,350 5 $ 31,270 $ ‐ $ 31,270 693 6 $ 45
HHS 86 $ 2,528 $ 217,382 5 $ 43,476 $ ‐ $ 43,476 210 2 $ 207
ITD 467 $ 1,281 $ 598,250 5 $ 119,650 $ ‐ $ 119,650 1,191 3 $ 100
SWS 11 $ 1,559 $ 17,150 5 $ 3,430 $ ‐ $ 3,430 108 10 $ 32
Totals 773 $ 1,420 $ 1,097,492 $ 219,498 $ ‐ $ 219,498 2,632 3 $ 83
*Costs are exclusive of consumables (paper, ink, toner, etc.), as these costs are not tracked consistently across the agencies
A B C = A * B D E = C / D F G = E + F H I = H / A J = G / H
Agency
Name
Total
Specialty
Printers
Avg Cost
per Device
Total
Hardware
Cost
Useful
Life (yrs)
Annualized
Hardware
Cost
Annual
Lease Rate /
Maint rate
Total Annual
Cost
Total PC
Users
Users per
Print
Device
Cost per
PC User
AFD 430
APD 1 $ 500 $ 500 5 $ 100 $ 100 693 693 $ 0.14
HHS 81 $ 358 $ 28,982 5 $ 5,796 $ 5,796 210 3 $ 27.60
ITD 16 $ 500 $ 8,000 5 $ 1,600 $ 1,600 1,191 74 $ 1.34
SWS 108
Totals 98 $ 382 $ 37,482 4 $ 7,496 $ ‐ $ 7,496 2,632 27 $ 2.85
*Costs are exclusive of consumables (paper, ink, toner, etc.), as these costs are not tracked consistently across the agencies
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Recommendations
1) Consolidate and Standardize - The current average number of users per print device is less
than 4:1; this metric is typically in the 10:1-15:1 range in optimized environments. This may
require a detailed printer operations assessment to help identify the hardware requirements,
location of devices, and the exception criteria.
2) Retire Outdated Devices - Approximately 43% of the total
print devices are older than five years. As printers surpass
five years, their efficiency and reliability begin to drop due
to the cost of consumables and repairs. In addition,
technological advancements in applications and operating
systems often render older hardware obsolete.
3) Eliminate Departmental Supplies – While out of scope for
this assessment, Excipio predicts that many departments
have local consumable supplies for the various models in
their departments. This could be a material dollar amount
across all agencies.
4) Create a Copier/MFP Standard – While MoA does have a process in place today, agencies
are able to manipulate the process to get products based on personal preference. The new
copier/MFP strategy should be the backbone of the enterprise print strategy, as these
devices have the capacity to replace high volumes of local printers, as well as providing
shared copy, scan, and fax capabilities.
5) Cost Reduction Measures – The opportunity to reduce the total cost from the current $205
per user in half, at a minimum. An optimized environment can get as low as $40 to $60 in an
ideal environment. Initial estimates indicate potential of greater than $250K per year, but this
would need a detailed printer assessment to confirm.
The risk of executing a printer consolidation project likely outweighs the rewards. Printer
replacement initiatives are better served during a planned and scheduled refresh policy for
the following reasons:
a) It is unrealistic to replace all print devices using internal support staff. Most, if not all,
print support resources are also supporting the personal computing infrastructure as
well. Support services for the customer will suffer during a one-time replacement.
b) No matter when this change occurs, it will impact end user productivity and cause
business disruption. Politically, this will not be a popular decision with the end users.
c) A proper refresh strategy is based on useful life. If the useful life of an asset is
deemed to be five years, then an annual schedule is set for 20% of the oldest
devices are to be replaced.
Recommendations
 Consolidate and
standardize
 Retire outdated
equipment
 Centralize supplies
 Create a copier/MFP
standard
 Savings potential -
$300K/yr.
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Data Center Operations
Mainframe Operations
This section focuses on the mainframe capability, which is owned and operated by ITD for all of MoA.
Current State
 The mainframe processing is operated in a shared services model for three to four
primary agencies.
 Mainframe services are currently provided by an IBM mainframe supported by ITD. The
Z9 BC F02 model was released by IBM in 2006.
 Twelve on-line terminal emulation licenses for all MoA mainframe users.
 Current mainframe software and tools are acquired or licensed from eight different
vendors. The software stack uses an estimated 25 applications across three physical
devices.
Mainframe Systems
Recommendations
Stay the course - MoA already has a strategy in process to replace the antiquated PeopleSoft
ERP, the primary application on this platform, with a server-based solution. This transition will
lead to retiring the mainframe. Given that this strategy is already in motion, Excipio did not spend
any cycles performing detailed analysis in this area. This strategy is consistent with Excipio’s
experience with other mainframe shops.
Mainframe environments are difficult to benchmark due to specificity of the hardware and
software stacks; standardized operational benchmarks are difficult to obtain. Due to experiences
with other clients and feedback from outsourcers in this market, additional staffing efficiencies are
possible in this area. However, these resources will likely be required to assist in the upcoming
ERP migration. Once this migration is complete, these resources should be added to the server
operations team or repurposed for other critical roles, if available.
Manufacturer Model
Application
Name
Total
MIPS
Operating
System
Operating
System
Version
IBM z9 BC 2096-F02 PeopleSoft and
CAMA
171 z/OS z/OS 1.9
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Server Operations
Current State
Approximately 17% of the servers are virtualized (18% Wintel and no UNIX). Best practices
suggest the target should be 40% - 60%. This represents a significant opportunity to reduce
hardware costs and data center requirements and improve the number of server instances
supported per administrator. The servers are spread across an estimated 15 facilities, with 70%
located in seven primary facilities. The current inventory includes the following server
breakdown:
Servers by Type
The MoA’s 301 physical servers span six different manufacturers, but HP servers represent the
majority.
Servers by Manufacturer
In general, each agency is responsible for supporting its own hardware, operating systems, and
software stacks. A few exceptions exist where some utility services, such as Enterprise Email,
network, telephony, etc., are offered as a service by ITD.
While each agency’s infrastructure is comprised of the same basic technology components
Server Type Phyiscal
Servers
Virtual
Servers
Total
Servers
% Virtualization
Wintel 280 60 340 18%
UNIX 21 0 21 0%
Total 301 60 361 17%
HP/Compaq
60%
VM
17% Dell
13%
IBM
9%
All Others
1%
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(servers, storage, network, etc.), the software stacks vary across the agencies. Standardizing
software and platforms will reduce costs and improve service levels, but also represents a
significant organizational challenge due to personal preferences, technical restrictions, and cost
factors.
The servers represent a moderate range of models across suppliers. Ideally, an organization
would have two to three Windows models and two to three UNIX/LINUX models to support over a
span of five years (20-30 total models). MoA currently has 72 different models in production as
shown in the chart below.
Number of Server Models per Manufacturer
As a percentage of the total server instances, the dominant server operating system is a
Microsoft-based solution. The Windows category contains 5 different Microsoft versions, but
Server 2000 and 2003 account for more than 95% of the Windows instances. The UNIX category
is also comprised of 5 different versions, with AIX and ESX accounting for 80% of all UNIX
instances.
HP/Compaq, 35
Dell, 21
IBM, 13
SUN, 1
STRATUS, 1
DIGITAL
, 1
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Server Operating Systems
Metrics
The age of the servers spans 15 years, with the average server being five years old. Note the
green bars indicate servers within the five-year industry average useful life. Approximately 45%
of the infrastructure is beyond average useful life.
Server Age
The following chart represents the mix of operating systems in use at the MoA.
 11% of the operating systems no longer provide mainstream support (red)
 86% of active operating systems are supported through extended support (yellow), meaning
that strategies should be in place to migrate off these platforms in the next 12-24 months
 3% are current versions of vendor products
Windows
93%
UNIX
7%
‐
10
20
30
40
50
60
70
80
90
100
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Server Operating Systems
Major OS Major Version
Total
Instances
% of Total
Instances Official End of Life
AIX 6.1 5 1% TBD
IBM z/OS 1.9 1 0% General Support End - 09/28/2007
Extended Support End - 09/30/2010
3.5 11 3% General Support End - 01//10/2010
Extended Support End - 01/10/2013
4 1 0% TBD
HP MPE 3000 1 0% 11/1/2001
Solaris (SunOS) 8 (5.8) 2 1% 3/31/2012
WNT NT4 Std 6 2% 12/31/2004
WXP Professional 1 0% 4/8/2014
Advanced Server 8 2% Mainstream 6/30/2005, Extended
Support available thru 7/13/2010
Server 25 7% Mainstream 6/30/2005, Extended
Support available thru 7/13/2010
Enterprise 25 7% Mainstream 7/13/2010, Extended
Support thru 7/14/2015
Standard 273 76% Mainstream 7/13/2010, Extended
Support thru 7/14/2015
W2K8 Standard 2 1% Mainstream 7/9/2013, Extended
Support thru 7/10/2018
Totals 361 100%
W2K
W2K3
ESX VMware
(Hardened Redhat
Linux)
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Windows Servers by Agency
Windows Server Costs by Agency
Agency
Name
# of H/W
Vendors
# of Physical
Servers
# of Virtual
Servers
Total # of
Server
Instances
%
Virtualization
Average
Age
FTE's
Server
Instances
per FTE
AFD 2 43 43 0% 2006 0.50 86
APD 3 44 44 0% 2005 1.00 44
HHS 2 17 3 20 15% 2005
ITD 4 171 57 228 25% 2005 5.00 46
SWS 2 5 5 0% 2005 0.10 50
Total 3.4 280 60 340 18% 6.60 52
Metric
A B C = A * B D E = C / D F G H = F * G I J = H / I K = (E+H) / I
Agency
Total
Physical
Servers
Avg Cost
per Server
Total
Hardware
Cost
Useful
Life (yrs)*
Annualized
Hardware
Cost
Number of
Support
FTEs
Avg FTE
Burdened
Cost
Total Annual
FTE Cost
Total
Server
Instances
Total FTE
Cost per
Server
Instance
Total Cost per
Server
Instance
AFD 43 $ 4,350 $ 187,050 5 $ 37,410 0.50 $ 83,691 $ 41,846 43 $ 973 $ 1,843
APD** 44 $ 8,457 $ 372,100 5 $ 74,420 1.00 $ 134,979 $ 134,979 44 $ 3,068 $ 4,759
HHS 17 $ 5,353 $ 91,000 5 $ 18,200 0.00 $ ‐ $ ‐ 20 $ ‐ $ 910
ITD 171 $ 6,082 $ 1,040,100 5 $ 208,020 5.00 $ 137,801 $ 689,007 228 $ 3,022 $ 3,934
SWS 5 $ 8,200 $ 41,000 5 $ 8,200 0.10 $ 121,650 $ 12,165 5 $ 2,433 $ 4,073
Totals 280 $ 6,183 $ 1,731,250 5.00 $ 346,250 6.60 $ 133,030 $ 877,996 340 $ 7,063 $ 3,601
* Server refresh is assumed at 5 years
** APD provided no data for four servers assumed to be Wintel
Hardware Costs Labor Cost
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UNIX Servers by Agency
UNIX Server Costs by Agency
Agency
Name
# of H/W
Vendors
# of
Physical
Servers
# of
Virtual
Servers
Total # of
Server
Istances
%
Virtualization
Ave Age FTE's
Server
Instances
per FTE
AFD
APD 1 5 0 5 0% 2004 0.00
HHS 1 1 0 1 0% 2007 0.00
ITD 3 14 0 14 0% 2008 0.00
SWS 1 1997 0.00
Total 20 0 20 0%
Metric
A B C = A * B D E = C / D F G H = F * G I J = H / I K = (E+H) / I
Agency
Total
Physical
Servers
Avg Cost
per Server
Total
Hardware
Cost
Useful
Life (yrs)*
Annualized
Hardware
Cost
Number of
Support
FTEs
Avg FTE
Burdened
Cost
Total Annual
FTE Cost
Total
Server
Instances
Total FTE
Cost per
Server
Instance
Total Cost
per Server
Instance
AFD 0 $ ‐ $ ‐ 5 $ ‐ 0.00 $ ‐ $ ‐ 0 $ ‐ $ ‐
APD 5 $ 45,000 $ 225,000 5 $ 45,000 0.00 $ ‐ $ ‐ 5 $ ‐ $ 9,000
HHS 1 $ 7,000 $ 7,000 5 $ 1,400 0.00 $ ‐ $ ‐ 1 $ ‐ $ 1,400
ITD 14 $ 41,943 $ 587,200 5 $ 117,440 0.00 $ ‐ $ ‐ 14 $ ‐ $ 8,389
SWS** 1 $ ‐ $ ‐ 5 $ ‐ 0.00 $ ‐ $ ‐ 1 $ ‐ $ ‐
Totals 21 $ 39,010 $ 819,200 5.00 $ 163,840 0.00 $ ‐ $ ‐ 21 $ ‐ $ 7,802
* Server refresh is assumed at 5 years
**SWS has one Unix server, but the system will not be replaced
Hardware Costs Labor Cost
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Total Server Costs by Agency
Observations
 The agencies with a lower cost per instance tend to run more commodity grade hardware due to the lesser processing loads.
 The variance in FTE cost per server instance is more likely due to the difficulty of smaller agencies to break staff time down
into the requested reporting categories.
Metric
A B C = A * B D E = C / D F G H = F * G I J = H / I K = (E+H) / I
Agency
Total
Physical
Servers
Avg Cost
per Server
Total
Hardware Cost
Useful Life
(yrs)
Annualized
hardware
Cost
Number of
Support
FTEs
Avg FTE
Burdened Cost
Total Annual
FTE Cost
Total
Server
Instances
Total FTE Cost
per Server
Instance
Total Cost per
Server
Instance
AFD 43 $ 4,350 $ 187,050 5 $ 37,410 0.50 $ 83,691 $ 41,846 43 $ 973 $ 1,843
APD 49 $ 12,186 $ 597,100 5 $ 119,420 1.00 $ 134,979 $ 134,979 49 $ 2,755 $ 5,192
HHS 18 $ 5,444 $ 98,000 5 $ 19,600 0.00 $ ‐ $ ‐ 21 $ ‐ $ 933
ITD 185 $ 8,796 $ 1,627,300 5 $ 325,460 5.00 $ 137,801 $ 689,007 242 $ 2,847 $ 4,192
SWS 6 $ 6,833 $ 41,000 5 $ 8,200 0.10 $ 121,650 $ 12,165 6 $ 2,027 $ 3,394
Totals 301 $ 8,473 $ 2,550,450 5.00 $ 510,090 6.6 $ 133,030 $ 877,996 361 $ 8,602 $ 3,845
Hardware Costs Labor Cost
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Server Benchmarks
Observations:
Wintel Infrastructure:
 MoA’s Cost per Instance is 19% less than the average comparable peer and 39% less
than the Excipio client range.
 Client II is a highly virtualized environment with exceptional processes
 The lower cost is attributed to staffing cost as MoA server administrators manage a 55:1
Server per Admin ratio. Also, the hardware is less expensive commodity grade
equipment, which is an example to follow in the public sector.
Unix Infrastructure:
 MoA’s Cost per Instance is 64% higher than the average comparable peer and at the
higher end of the range for other Excipio clients.
 The higher cost can be attributed to enterprise grade servers in the Unix environment.
Recommendations
1) The number of Microsoft operating systems in use (94%) indicates Microsoft as the standard.
However, 93% are versions that are beyond mainstream support and need to be migrated in
the next 12-36 months.
2) Increase use of server virtualization to improve staff productivity, improve testing/R&D
capability, reduce data center requirements, and improve disaster recovery capabilities for
the MoA Enterprise. Below are other observations related to server virtualization:
a) For the MoA to be successful, a single vendor platform should be selected in order to
standardize the solution across the organization. MoA does not have enough size
and complexity to warrant multiple platforms. Given that the MoA is predominantly a
Microsoft organization, the primary platforms under consideration should be VMWare
Client I Client II Client III
Excipio
Client
Average
MoA
Wintel
Number of Instances 256 301 219 Varies 340
FTEs 7 2 2.25 Varies 6.60
Total Annual Costs $1,061,376 $443,674 $1,580,085 Varies $1,224,340
Annual Cost per Instance $4,146 $1,474 $7,215 $4K ‐ $6K $3,601
Unix
Number of Instances 2 27 45 Varies 21
FTEs 0 0 1.55 Varies 0
Total Annual Costs $2,864 $53,784 $224,280 Varies $163,540
Annual Cost per Instance $1,432 $1,992 $4,984 $5K ‐ $8K $7,802
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and Microsoft’s Hyper-V platforms.
b) The current environment is only 17% virtualized; the minimum target should be 40%.
Excipio typically observes client virtual environments below 20% to be
test/development instances. New virtual server environments are typically flooded
with new development and test instances by developers and technical resources,
primarily because funding is scarce for these low-value purposes. The virtual
environment for MoA is made up of 87% production instances, thus the 17%
virtualization understates the actual progress being made to reduce physical
instances.
c) Excipio believes an achievable target for virtualization across MoA is 60%. Obvious
observations typically include dev/test instances, file/print and other low utilization
server instances, and systems with a relatively low number of users.
d) Systems not typically virtualized are systems with high transactions loads, production
database servers, and mission critical application that have high availability clusters
in place.
e) Increasing the use of virtualization will also improve MoA’s disaster recovery and
failover capabilities, as the virtual server hosts will have the ability to fail over from
one data center to another (provided the storage is replicated between sites).
f) Many server virtualization supporters have provided very weak arguments for
significant costs savings as a result of virtualization. Although there are many
benefits to this technology, the reality is the virtualization software typically offsets the
future hardware savings.
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Storage and Backup
Current State - Storage
The figure below summarizes storage capacity by type:
Storage by Type (Gigabytes)
A tremendous amount of excess storage is unused in the environment (65% or 53.6 terabytes),
primarily due to each agency maintaining independent storage infrastructures. This represents a
significant consolidation opportunity through centralized and shared storage platforms.
Excipio found that most agencies did not have archiving strategies to purge older data and
reduce future storage requirements. The lack of clear and restrictive policies also creates
potential legal liabilities related to discovery requests.
Current State - Backup
Tape and backup systems are standardized on HP and IBM. While HP leads manufacturers by
the number of devices, the majority of the volume is being handled by the ITD IBM system.
Based on the number of installations, versus total volume, Symantec NetBackup is the standard.
Count of Tape System Models by Manufacturer
Storage Type Total Capacity
Available
Capacity
Capacity In
Use
Utilization
SAN 72,400 52,090 20,310 28%
NAS 3,260 500 2,760 85%
DASD Unreported Unknown Unknown 2,000 Unknown
DASD 3,200 1,000 2,200 Unknown
Totals 78,860 53,590 27,270 35%
Dell, 1
HP, 5
IBM, 1
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Just like the storage environment, significant excess tape capacity exists due to the decentralized
environment. Agencies implemented dedicated tape infrastructure for local servers, representing
a consolidation opportunity.
Percent of Total Tape Volume by Manufacturer
With only three vendors in the environment, this would indicate moderate standardization across
the organization.
Metrics
SAN Storage by Agency
IBM, 59%
HP, 30%
Dell, 11%
A B C = A ‐ B D = B / A
Agency
Name
# SAN
Devices
Current Storage
Capacity (GB’s)
Storage
Available
Storage In Use Storage
Utilization %
Avg Age
AFD
APD 1 19,100 12,750 6,350 33% 2005
HHS
ITD 9 53,300 40,340 12,960 24% 2008
SWS
Totals 10 72,400 53,090 19,310 27% 2006
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NAS Storage by Agency
DASD Storage by Agency
Observations:
 Annual storage growth projections are estimated at 10% for most of the agencies. The
only exception is APD, which estimates an 80% growth every year. The extremely high
growth estimate for APD is the result of new legislation related to police video retention.
 The SAN storage utilization averages 27% for the two agencies using this technology.
This is an indication of the following:
o Capacity planning is extremely conservative
o As a whole, the agencies are over-investing based on growth estimates
Tape Systems by Agency
A B C = A ‐ B D = B / A
Agency
Name
# NAS
Devices
Current Storage
Capacity (GB’s)
Storage
Available
Storage In Use Storage
Utilization %
Avg Age
AFD
APD
HHS
ITD
SWS 2 3,260 500 2,760 85% 2007
Totals 2 3,260 500 2,760 85% 2007
Agency
Name
Platform
# of
Devices
Current
Storage
Capacity (GB)
Storage
Used
Storage
Available
Storage
Utilization %
AFD Commodity Unknown Unknown 2,000 Unknown Unknown
APD
HHS
ITD Mainframe 1 3,200 2,200 1,000 69%
SWS
Total 1 3 ,200 4,200 1,000 69%
Agency Name
# Agency
Locations
# of Tape
Manufacturers
# of Tape
Models
Type of Tape System
# of Tape
Drives
# of Tape
Slots
AFD 1 1 1 LTO‐4 1 24
APD 1 1 1 LTO‐4 8 242
HHS 1 1 1 LTO‐3 1 344
ITD 4 2 2 LTO‐3 12 24
SWS 1
Totals 8 5 5 22 634
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Storage Cost Analysis
Tape Cost by Agency
Observations
 The variance in FTE cost per server instance is more likely due to the difficulty to break staff time down into the requested
reporting categories.
A B C = A * B D E = C / D F G H I = G * H J K = I / J M=(E+F+I)/K N=(E+F+I)
Agency
Name
Total
Storage
Devices
Avg Cost
per Device
Total Hardware
Cost
Useful Life
(yrs)
Annualized
hardware
Cost
Annual
Hardware
Maintenance
Number of
Support
FTEs
Avg FTE
Burdened
Cost
Total
Annual FTE
Cost
Total
Storage
(GB)
Total FTE
Cost per GB
Total Cost
per GB
Total
Annual Cost
AFD 2,000
APD 1 $ 500,000 $ 500,000 5 $ 100,000 $ ‐ 1.25 121,690 $ 152,113 6,350 $ 23.95 $ 39.70 $ 252,113
HHS
ITD 9 $ 8,778 $ 79,000 5 $ 15,800 $ 832 16,160 $ 1.03 $ 16,632
SWS 2 $ 2,250 $ 4,500 5 $ 900 $ ‐ 0.10 121,650 $ 12,165 2,760 $ 4.41 $ 4.73 $ 13,065
Totals 12 $ 48,625 $ 583,500 5.00 $ 116,700 $ 832 1.35 121,687 $ 164,278 27,270 $ 6.02 $ 10.33 $ 281,810
Hardware Costs Labor Cost Metric
Hardware Co Software
A B C = A * B D E = C / D F G H I = G * H J K = I / J M=(E+F+I)/K N=(E+F+I)
Agency
Name
Total
Backup
Devices
Avg Cost per
Device
Total
Hardware
Cost
Useful
Life (yrs)
Annualized
hardware
Cost
Annual
Hardware
Maintenance
Number of
Support
FTEs
Avg FTE
Burdened
Cost
Total
Annual FTE
Cost
Total Tape
Storage
(GB)
Total FTE
Cost per GB
Total Cost
per GB
Total
Annual Cost
AFD 1 $ 6,000 $ 6,000 5 $ 1,200 $ 600 2,000 . $ 1,800
APD 1 $ 50,000 $ 50,000 5 $ 10,000 $ ‐ 1.25 121,690 $ 152,113 6,350 $ 23.95 $ 25.53 $ 162,113
HHS 1 $ 6,000 $ 6,000 5 $ 1,200 $ 504 $ ‐ $ 1,704
ITD 4 $ 65,250 $ 261,000 5 $ 52,200 $ 2,472 16,160 $ 3.38 $ 54,672
SWS 0.10 $ 12,165 2,760
Totals 7 $ 46,143 $ 323,000 5.00 $ 64,600 $ 3,576 1.35 121,687 $ 164,278 27,270 $ 6.02 $ 8.52 $ 232,454
Labor Cost Metric
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Storage and Backup/Restore Benchmarks
Observations:
Storage:
 MoA’s Cost per gigabyte (GB) averages 28% higher than the comparable peer and the
Excipio client range.
 The higher cost is mainly attributed to support and hardware costs across MoA. MoA has
significantly overinvested in storage based on current requirements and support is
decentralized.
Backup:
 None of the benchmark clients, or MoA allocated resources dedicated to the backup
function as the storage administration, performs this responsibility. For comparison
purposes, Excipio includes the same storage FTEs in this metric.
 MoA’s Cost per GB is triple the average comparable peer costs and over well outside the
typical Excipio client.
 The higher cost can be attributed to higher equipment costs in the decentralized
environment.
Recommendations
1) Consolidate Storage Support - The consolidated storage could easily be managed by a single
individual across all agencies for now and for several years to come.
2) Consolidate Storage Hardware - Because storage is
purchased and managed by each individual agency, the
surplus capacity is excessive. Nearly 65% of all storage
purchased is not in use. The excess SAN storage
alone comes with an estimated premium of $554K
(53,590GB * $10.33/GB) per year. Realizing these
efficiencies would require implementation of a
Client I Client II Client III
Excipio
Client
Average
MoA
Storage
Number of Systems 38 19 4 Varies 12
Total Storage (GB) 46,825 78,400 113,276 Varies 27,270
FTEs 1 1 1 Varies 1.35
Total Annual Costs $374,306 $981,615 $178,249 Varies $281,810
Annual Cost per GB $7.99 $12.52 $1.57 $5 ‐ $10 $10.33
Backup
Number of Systems 6 1 3 Varies 7
FTEs 1 1 1 Varies 1.35
Total Annual Costs $184,200 $141,250 $123,893 Varies $232,454
Annual Cost per GB $3.93 $1.80 $1.09 $3 ‐ $5 $8.52
Recommendations:
 Consolidate storage
and support
 Quit over-buying
capacity
 Create data
management policies
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centralized, shared storage infrastructure.
3) Standardize Storage Vendors and Hardware - The storage infrastructure is spread across
more than four vendors. Most of these decisions were made based on price versus
performance decision criteria. Given recent advances that allow vendors to mix and match
multiple performance tiers within the same physical device, standardization will allow the MoA
to improve efficiencies while still providing multiple performance and price tiers.
4) Vendor Selection and Negotiations – Some Excipio clients have negotiated a “pay as you
grow” solution with vendors. The tactic is to purchase the capacity of a large chassis and,
based on needs requirements, choose at a future time to purchase disk based on
performance needs. This strategy costs a premium upfront, but allows flexibility and options
in the future capacity and performance-based planning.
5) Implement Data Retention Policies - In general, the MoA is significantly behind in
implementing data retention, classification, and de-duplication strategies. These strategies
are critical to slow the growth of expensive storage, regain data center space, and reduce
backup requirements.
6) The number of backup systems and platforms has a direct impact on the ability to achieve
performance metrics. The number of vendors also impacts the MoA’s ability to create a
standardized disaster recovery (DR) solution that meets the requirements of all agencies.
7) Until the MoA can create a comprehensive disaster recovery solution, tape will continue to be
a requirement in order to ensure offsite data storage. Virtual tape libraries should become
the mainstream, due to their increased speeds and replication capabilities, once a viable
disaster recovery solution is implemented.
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Network and Telecommunications
ITD is the primary provider of telecommunications management services across the various agencies, so
this area has already been consolidated for the most part with the exception of LAN devices at various
agency locations.
Networking
Current State
The number of reported LAN devices was 19, which are Cisco devices. The Cisco devices
reported are highly standardized as they include two distinct models:
LAN Devices by Manufacturer
The number of reported WAN devices was 117, which is more than 15 different models across
two manufacturers. In general, agencies provide the network equipment that is managed by ITD.
Cisco is the primary manufacturer (95% of all devices) and is the standard for MoA.
For the agencies that responded, 115 data circuits were reported. The agencies reported various
connectivity and circuit types in use, as shown below:
Network Connectivity Types
Manufacturer Model Count
Cisco WS-C3560 18
Cisco WS-C3550 1
Connectivity Types Count
Dedicated I‐Net 4
DSL 9
Transparent LAN 96
Wireless 6
Total 115
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Circuit Sizes
Network Protocols and Services
 Only ITD provided information related to network protocols and services. All
locations are using TCP/IP protocol. All MoA agencies have at least 10MB
connectivity within the site.
 Load balancing is in use by ITD, which appears to be reserved for larger
agencies with high-availability requirements and for public-facing business
applications.
 ITD uses Firewalls, VPN, and RAS technology for access management. Based
on discussion during interviews, intrusion and prevention service (IDS/IPS)
practice is indicated as a deficiency across the enterprise.
Network Management
 In general, ITD is responsible for managing and maintaining the network for all
agencies. In most cases, the asset is owned by the agency, but installed,
configured, and managed by ITD. ITD support includes the management of all
switches, routers, hubs, wireless access points, and firewalls.
 Network monitoring is done primarily by ITD and the circuit provider ACS, but
some agencies monitor their own network. The relationship between ACS and
ITD appears to be strong based upon comments from the ITD staff. However,
ACS monitoring service is poor and MoA does not employ an enterprise
monitoring capability.
Size Count
200M 14
100M 4
50M 1
20M 7
10M 14
9M 1
6M 3
5M 2
4M 1
3M 4
2M 8
1.5M 2
1M 23
768K 20
512K 1
256K 2
n/a 2
Unknown 6
Total 115
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Monitoring Tool Instances by Company
Telecommunications Procurement and Administration
 ITD acts as an aggregator of telecommunications capacity across the agencies.
The telecommunications team evaluates all of the capacity requirements for the
various agencies.
 ITD is currently responsible for contracting enterprise service to third parties.
ITD Telephony services include first and second level technical support and
single point of contact between the agencies and the telecommunications
vendors.
 While the agencies may ask ITD for design support or hardware
recommendations, agencies with technically qualified resources are allowed to
make autonomous decisions. For devices related to the network backbone or
WAN, ITD is responsible for the procurement, configuration, and installation of
these devices.
 ITD manages a significant portion of the contracts and establishes rates for the
traditional analog telecommunications services, including long distance, calling
cards, audio conferencing, etc.
Recommendations
Network monitoring requires an enterprise approach. ACS attempts to provide monitoring
services, but the service falls short of expectations. Excipio recommends the following:
1) Increase the service level with ACS to provide an enterprise solution
2) MoA implements a suitable system for enterprise monitoring. Many Excipio clients are
satisfied with Solar Winds as a reasonably cost effective solution.
Manufacturers Application
PRTG PRTG
MySpeed MySpeed
IBM NetView
IPSwitch WhatsUpGold
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Metrics
LAN Hardware Components
WAN Hardware Components
Telecommunications Cost Analysis
Agency
#
Hardware
Vendors
#
Models
Access
point
Core
Switch
Ethernet
NTP
Firewall KVM
Load
Balancer
Net
Clock
RAS
Redundant
Power
Router Switch VPN
Wiring
Closet
Video
Streamers
Total
Devices
AFD 1 1 1 1
APD 1 2 17 17
HHS ‐
ITD 1 1 1 1
SWS 2 ‐
Grand Total 1.0 1.5 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 19 ‐ ‐ ‐ 19
Agency
#
Hardware
Vendors
# Models Firewall IDS/IPS Internet Load
Balancer
Other RAS Remote
Core
Router Switch Video or
Voice
VPN WAN Grand
Total
AFD 1 5 1 7 11 19
APD 1 4 2 24 26
HHS 1 3 2 2 1 5
ITD 1 12 11 5 24 18 58
SWS 2 4 6 2 1 9
Grand Total 1.2 5.6 14 ‐ ‐ ‐ 13 ‐ ‐ 59 31 ‐ ‐ ‐ 117
A B C D = A + B + C E F = D / E G H I J = H * I K = F + G + J
Agency
Name
WAN H/W
Cost
LAN H/W
Cost
Telephony
H/W Costs
Total
Hardware
Cost
Hardware
Useful Life
(yrs)
Annualized
Hardware
Cost
Network H/W
Maintenance
Number of
Support FTEs
Avg FTE
Burdened
Cost
Total Annual
FTE Cost
Total Annual
Network Cost
AFD $ 91,500 $ 6,500 $ ‐ $ 98,000 5 $ 19,600 ‐ $ ‐ $ 19,600
APD $ 448,000 $ 65,000 $ ‐ $ 513,000 5 $ 102,600 ‐ $ ‐ $ 102,600
HHS $ 17,300 $ ‐ $ ‐ $ 17,300 5 $ 3,460 ‐ $ ‐ $ 3,460
ITD $ 1,125,400 $ 3,000 $ 1,425,550 $ 2,553,950 5 $ 510,790 1,656,779 6 $ 130,380 $ 782,279 $ 2,949,847
SWS $ 15,100 $ ‐ $ ‐ $ 15,100 5 $ 3,020 ‐ $ ‐ $ 3,020
Total $ 1 ,697,300 $ 74,500 $ 1,425,550 $ 3,197,350 $ 639,470 1,656,779 6.0 $ 130,380 $ 782,279 $ 3,078,527
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Network and Telephony Benchmarks
Observations:
 MoA’s Cost per Port averages 72% higher than the comparable peer, which lies just
outside of the Excipio client range
 The higher cost is mainly attributed to support and hardware costs across MoA.
However, it is worth noting that MoA is transitioning from POTS telephone to VOIP
technology. During a major network project such as this, it could require additional staff
to support the network and the telephony migration.
Observations and Recommendations
The wide area network and telecommunications contract areas are centrally managed by the ITD
organization. The established standards are followed by all agencies with very few exceptions.
The general practices surrounding the support and management of the network capabilities are
effective and efficient. Excipio lists the follow observations related to network and
telecommunication services:
 Network and telecommunication maintenance and support services are centralized.
 A healthy mixture of circuit providers exists today.
 Network procedures and practices are standardized.
 As a whole the MoA is significantly under-invested in intrusion detection and prevention
technologies. Excipio would strongly recommend the MoA solicit a security vendor to
assess and remediate what could be a significant threat.
In general, Excipio has no major recommendations to make in this area, other than significant
improvements in security, which are covered in the following section.
Security
Current State
The security capability of MoA is shared amongst available resources. A chosen few share this
responsibility as a secondary role. It is likely that the organization has been compromised, but is
unaware of the breach. This is a critical need for MoA, as the backlash to credibility from internal
relationships and external media could be devastating. Some shortcomings of the current
approach are listed below.
 Lack of dedicated resources
Client I Client II Client III
Excipio
Client
Average
MoA
Number of Ports 6,503 6,250 7,575 Varies 7,030
FTEs 3 2 2.4 Varies 6
Total Annual Costs $1,289,193 $ 544,341 $ 625,552 Varies $3,078,527
Annual Cost per Port $198 $87 $83 $200 ‐ $400 $438
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 Lack of IDS/IPS tools
 No checks and balances between active directory, server security, and application
security
 No regular penetration testing
Metrics
Because no capability exists, no metrics exist
Recommendations
1) Security is a specialized area that requires dedicated resources to establish standards,
develop a strategy, and continuously monitor the environment. The result of a security event
has devastating effects on credibility for any company or public organization. Security
compromises happen every day and the perpetrators do not discriminate.
2) As a whole the MoA is significantly under-invested in intrusion detection and prevention
technologies. Excipio would strongly recommend the MoA solicit a security vendor to assess
and remediate what could be a significant threat.
Telecommunications
Current State
MoA has 1,000 IPT phones currently in use, which represents an estimated 30% of the users.
The transition project is in the process of converting outdated PBX systems to this newer
technology. No meaningful usage statistics are tracked to determine appropriate use of this
technology. Below is feedback for management from interviews with staff:
 The decision to implement VOIP versus traditional PBX was not popular with the
telecommunications team, primarily due to the lack of redundancy. If the network fails,
the VOIP users not only loose application, but also lose all phone access.
 The team appears to still be harboring some resentment regarding how this process was
handled
Metrics
Operational metrics are not tracked, but Excipio has provided known statistics below:
 3,200 telecom users spread across 105 MoA locations
 <1,000 current VOIP users
Recommendations
1) Need to leverage the investment and complete the migration, as it is often more expensive to
operate multiple platforms
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2) Track the performance of the financial benefits to improve the perception of the investment
and drive participation from the remaining organizations.
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Application Support
Application Lifecycle
The MoA, in general, does not have an application lifecycle policy. Many organizations continue to
support applications without knowing if the initial business drivers are still valid. A formal Application
Lifecycle Policy is needed to establish a process to continuously evaluate application usefulness.
Two scenarios exist to explain the risks and costs of maintaining legacy applications. First, the cost of
internal resources maintaining and supporting the application is more than the revenue/cost-efficiency
generated. In some cases, an organization can have more resources supporting, maintaining, and
upgrading applications than the number of application users. Second, an organization can be “held
hostage” by a single independent resource that knows everything about the application without a backup.
This is a common issue because the support resource feels this scenario provides job security, but it
exposes the organization to a serious risk issue.
To be successful in establishing an Application Lifecycle Policy, MoA needs to consider the following:
 Eliminate or consolidate the number of apps over a certain age or on outdated technologies
 A list of supported platforms needs to be consolidated and enforced
 Do not allow end users to make platform decisions that are not strategic to the MoA (ex.
FileMaker Pro)
Observations
 Agency resources are consumed supporting applications that serve 1-3 users
 Operational support consumes the majority of the staff, leaving little time for strategic
improvements/advancements
 Many applications are still in service based on end users wants, not business need (ex. I
don’t want to change, I have to do it this way, etc.)
Recommendations:
1) Determine what applications are required by executing a use assessment. Application
studies are performed by business analysts, which MoA currently lacks. A true business
analyst capability includes studying application effectiveness, use, and alignment with
organizational goals and priorities.
2) Create a path to consolidate applications into a single platform. For example,
Salesforce.com started as a CRM, but the platform was used to add additional supporting
applications for time entry, expense management, payroll, recruiting, project mgmt., etc.
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Application Support
Application support is strength for ITD when discussing enterprise applications. Enterprise email,
Microsoft SharePoint, and Altiris is offered and supported at ITD. For the MoA Enterprise, there are still
areas for improvement, as agency level support of some commodity applications still exist.
Observations and Recommendations
1) Within every organization, agency will require specialized support familiar with the agency
business line applications that understand the requirements and alignment with the needs of
the agency mission. These resources will expect to be retained at the agency level until a
suitable service is provided.
2) Below is a list of functions that should be centralized (ITD vs. agencies)
a) Database maintenance
b) Application security
c) Application standards
d) Application hosting and backup
e) Application version control and change management
3) Invest in the Business System Analyst (BSA) role that identifies opportunities to make
efficiency improvements and perform value-based application assessments for the
organization. Examples include:
a) Procurement automation versus manual processes
b) A single licensing system for all MoA requirements (DL, vehicle registration, snow
machine, fish/game license, etc.)
c) Use of mobile apps for smartphones
d) Solicitation of ideas from the public
GIS
Excipio understands there are multiple GIS service needs across the MoA Enterprise. Within the scope
of this assessment, ITD provides GIS maintenance for AFD and APD. However, other agencies and
departments provide GIS services at an agency level. When asked about the GIS service provided by
ITD, the feedback indicated the service was more dedicated to map generation than a true GIS function.
Although the service is a specialized skillset, many outsourcers exist in the vicinity that is capable of
providing this service to MoA. GIS is a service that can be targeted for outsourcing.
Observations
 No clear strategy or mission
 No new development or innovation, most support is reactionary in nature
 Skill sets are stale, as is the technology, which is multiple updates behind what’s available
 Purely in a maintenance mode – layer updates, address changes, etc.
 Other than ITD, none of the agencies in scope have this expertise
 Skill sets are stale, as is the technology, which is multiple updates behind what is available
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 Accuracy is critical to APD/AFD, as the 911 systems rely on this information (life/safety issue)
Observations and Recommendations
Insource to another agency within the MoA (MLP) creating a centralized expertise or outsource it
to a local provider.
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Staffing
Overview
This section identifies the agencies that were in the scope of this assessment. The data show there are
85 FTEs providing services and support to 2,632 MoA users.
Agencies in Scope
Staff Workload
This section discusses the workload across the five agencies.
Staff Survey
In order to gather insights into the environment, Excipio created an online survey for the following
purposes:
 To solicit feedback from the staff to determine perceived areas of strength and weakness
 To gather some organizational statistics regarding the tenure and skills
The survey generated 407 responses; 21.6% were responses from employees about themselves,
50.4% were peer evaluations of another staff member, and were 28% managerial responses
regarding direct reports.
Self-Reported Workload
Across the 81 (out of 85) respondents, each was asked to report the percentage of their time in
each of twenty-one major categories. The results are mapped in Figure S-1 on the following
page.
Agency Name Total FTEs
Total PC
Users
Total
Servers
Total PC
Devices
Total Print
Devices
Anchorage Fire Department 3 430 43 285 167
Anchorage Police Department 7 693 49 724 131
Health and Human Services 3 210 21 275 198
Information Technology Department 70 1,191 242 1,564 722
Solid Waste Services 2 108 6 41 15
Grand Total 85 2,632 361 2,889 1,233
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Figure S-1: Staff Workload
Figure S-2: Workload by Function
0.0%
5.0%
10.0%
15.0%
20.0%
Administrative Time (email,…
Application Support
Desktop Support
Application Development
Service Desk
Management - Proj Mgmt
Management - Admin
Application DBAs
Server Windows
Networking (LAN/WAN)
Management - Executive
Procurement - IT
Data Storage
Data Backup/Restore
Operations - Security
Mainframe
Operations - Change Mgmt
Data Center Facilities
Server Other
Operations - NOC
Server UNIX/Linux
Based on your typical workload over a calendar year, please enter the
percentage of your time spent in each of the categories. All numbers should
be entered as whole numbers and need to total 100%.
Admin, 27%
Apps, 29%
Operations,
20%
End User
Support, 16%
Management,
7%
Sum of Workload
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The interesting implications from Figures S-1 and S-2 are as follows:
 The staff spends 27% of all staff time performing administrative tasks, which includes
staff meetings, emails, procurement, finance, and other non-technical activities.
 Application support and development consumes 29% of all staff time, which includes
developers and DBA time.
 Operations consume 20% of the staff time, and include data center, server, mainframe,
storage/backup, and networking activities.
 End user support (16%) is comprised of desktop support and the service desk.
 The remaining time (7%) is associated with staff management activities.
Figure S-3: Staff Reconciliation
Note in Figure S-3 above, only minor differences exist between the staff reported time versus the
management reported time received by Excipio.
Staff Highlights
 Across the agencies, 85 FTEs provide IT services across the MoA.
 Of the 85 FTEs, 100% are employees and no contractors are present.
 The average IT compensation (salary/wages + total benefits) across the staff is $129,048
per year. The MoA currently spends 36.54% of salary/wages in the form of employee
benefits, excluding the additional cost of $17,664 per employee for medical coverage.
The average compensation by agency ranges from $83,691 on the low end to $180,898
on the high end.
 The average staff-to-manager ratio is 12.8:1, although the ratio varies greatly across the
agencies (14:1 – 1:1).
Observations and Recommendations
 Implement time tracking - None of the agencies reported using any time tracking tools with
the staff. This makes it difficult for managers to understand what tasks are consuming the
majority of the staff’s time. This information should be used for trending, utilization, and
personal development to improve the overall efficiency of the team. Many organizations
make the mistake of making this overly complex, which reduces staff productivity. The goal
is to capture time at a high enough level to identify trends and operational metrics, both
positive and negative.
Category
Staff
Reported
Management
Reported
Variance
Admin 27.4% 19.1% 8.4%
Apps 28.9% 36.6% ‐7.7%
Operations 19.9% 19.9% ‐0.1%
End User Support 16.5% 16.6% ‐0.1%
Management 7.4% 7.8% ‐0.4%
Grand Total 100% 100%
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Staff Tenure
Figure S-4 below reflects the years of service with the organization in comparison to typical public sector
organizations. Based on the reported data, the average tenure is 12 years with the organization.
Figure S-4: Staff Tenure
The results do not reflect any unusual variations, other than the variance between staff with 15-20 years
of tenure.
Organizational Structure
Current State
In making recommendations to change the organizational structure of any culture, it is important
that people first understand the perceptions, which are often reality, shared by different facets of
the organization. The following are observations taken directly from interviews and observations
in working with the various staffs:
Culture
MoA is a political organization where the motivations of each individual are not
coordinated for the greater good of the organization. The most interesting dynamic is the
hands-on agency workers seem to work very well together and all strive towards
providing customer service as a focus. The major distractions are the result of
differences in strategy, priority, control, ownership, and personal preference from the
agency IT leaders, some more so than others. This dynamic is not expressed from the
Agency Director position. Excipio discussed a variety of topics with the agency directors
and found openness to the idea of centralization, consolidation, and collaboration of
technology services. In many cases, the Agency Director acknowledged the leadership
challenges of their IT management.
One interesting dynamic that we found was the wide variation between agency IT
leaders. The IT leaders seem to be at one extreme or the other, with very little middle
0%
5%
10%
15%
20%
25%
30%
<=5 yrs >5 and
<=10 yrs
>10 and
<=15 yrs
>15 and
<=20 yrs
>20 yrs
MoA
Typical
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ground. Some IT leaders profess to be supportive of a “what’s best for the MoA” thought
process, while others are solely focused on their individual agency and are quite critical
of other agencies. In general, the agency IT leaders that demonstrated a “silo” thought
process provided responses that did not match the observed behaviors in various
sessions. These individuals often made harsh statements and were critical of other IT
leaders, the assessment process, and MoA senior management.
On the opposite end of the spectrum, the agency IT leaders that were consistent between
responses and observed behaviors were also much more open in discussing issues,
potential changes, and in collaborating with others. These IT leaders seek to be part of
the solution and an agent of change, versus being a sideline critic. It will be critical for
the MoA as a whole to create positive incentives across each of the agencies in order to
enact real change in both the short and long-term future. Other notable issues that will
need to be addressed include:
 Perceptions of ITD
o Perceived as wanting to control all things IT
o Takes an excessive amount of time to evaluate new technologies and
consistently results with high-cost, low-value solutions
o Lack of track record for completing projects within a reasonable amount
of time
 MoA IT Strategy Coordination
o Each agency has their own individual strategy
o All IT initiatives should tie into a master strategy that prioritizes projects
across the organization as a whole
o Coming up with a prioritization process that fairly prioritizes projects
across all agencies, which should be ranked based on impact, benefit,
and risk.
Staff Management
 Performance Reviews – Regardless of the role or tenure with the organization,
managers need to provide formal objectives, goals, and progress feedback to
each individual on regular basis. Excipio suggests no less than every 12-18
months. Individuals will typically perform at or slightly below expectations,
assuming they understand the expectations. Statistically, only a handful of
individuals will exceed expectations, and these individuals need to be rewarded
for exceptional performance.
 Rule Enforcement (Context vs. Control) – The MoA currently has a “no
overtime rule” in place, but the rule is not taken seriously by the staff. However,
the rule is not disregarded due to management push-back or fighting authority,
but out of a desire to help their customers. Many staff members perform the
work, but don’t report the time.
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 Training Opportunities – IT people are different from many other types of staff.
More than any other business area, IT resources thrive on new challenges and
technologies, and take great pride in creating and implementing solutions that
make a difference. However, the MoA staff has a serious deficiency in current
training, as the overwhelming majority has had no new training in three years.
Given the astounding pace of technology and the number of new solutions
available each year, MoA should provide continuous training and improvement
on technologies that are core to IT’s mission. This does not mean that each
person needs training every year, but rotating training across the team will
result in more capable, competent, and efficient staff.
Current Organizational Structure
As part of this deliverable, Excipio was asked to review the current organizational structure and
recommend improvements. Excipio would like MoA to understand that the reporting structure is
not nearly as critical as how the organization functionally operates. Below are the current MoA
organizational structures.
Figure OS-1: Current ITD Organizational Structure
Chief Information Officer
Financial Services Project Management
Admin Support
Technology Services
Manager
E‐Government &
Applications Manager
Data Services
Manager
Network Services
Supervisor
Server
Administration
Desktop Services
Network
Administration
Graphic Services
Database Services
GIS Services
Records
Management
Graphic Services
Supervisor
Application Services
ERP Services
Supervisor
ERP Services
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Figure OS-2: Agency IT Organizational Structures
Observations
 Although many enterprise services are offered through ITD, many organizations still
maintain a small staff to manage and maintain agency technology.
 The appearance of this structure depicts a shared services foundation that more
advanced than many of Excipio’s public sector clients.
 While the position names for APD are unique, the responsibilities are similar to all other
agency roles.
 For AFD and SWS, the agency IT Leader plays a functional role balancing management
with technical production-level responsibilities.
 In HHS, the agency IT Leader appears to split time between being a Help Desk triage
source and managing the team, which is not an efficient use of the resource.
 In APD, the IT Leader appears to have no technical responsibilities; the staff is not large
enough to require a dedicated managerial role.
 ITD, because of the size of the staff, appropriately has dedicated managers to oversee
operational staff.
 Based upon the enterprise staffing ratios, MoA is not grossly overstaffed. However, key
roles are missing that would enable the organization to be more effective and would allow
for marginal improvement in staffing efficiencies.
Future Recommended Organizational Structure
Below is the recommended MoA organizational structure in concept. This future structure is a
reorganization of roles at a high-level, but has minimal impact on production positions in the
current environment. To accomplish a more standardized and unified IT strategy, Excipio is
recommending a single, centralized IT structure for MoA for the following reasons:
 To reduce competing strategies or priorities and create a single point of accountability
and oversight into all IT initiatives
 To gain staffing efficiencies and reduce overheads
 To leverage technologies and standards across all entities
 To consolidate similar technologies and reduce the total number of applications being
supported
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 To facilitate communication between agencies and establish common best practices
across all agencies
 To solve the problematic re-hiring policy that occurs when open technology positions are
offered to employees fired from other agencies for performance reasons.
 The only exceptions to centralization are key resources that support time sensitive,
critical agency applications. These applications are life/safety related where immediate
support is critical. These roles may also become centralized over time.
Figure OS-1: Future ITD Organizational Structure
Blue Highlights – New roles to be included in the enterprise structure
Yellow Highlights – Existing agency positions to be collapsed into the enterprise support structure
Red Highlights – Services to consider outsourcing in the new enterprise model
Primary Purpose
 This structure continues the strategy of a more efficient and effective enterprise
approach. If implemented effectively, this will remove political barriers, promote technical
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strategy alignment for MoA as a whole, and provide accountability for all agencies and
departments.
 Places valuable resources in a single organization to cultivate and share experiences,
new ideas, and technical knowledge. During the technical interviews, Excipio purposely
invited all agency/department specialists by technology. Even in a mid-sized
organization, many of individuals have never formally met after years of employment with
MoA.
To support a standardized and consolidated enterprise technology strategy, Excipio recommends
the following changes.
Executive Roles
Executive Management - MoA requires a second executive management arm to the organization
structure. The primary reason is to balance the role of technology, provide distinct focus areas,
distinct accountability, and remove political biases from the daily operations. This new arm will be
led by a CTO/Chief Architect, whose focus will primarily be operational in nature and include:
 Setting technical infrastructure standards
 Directing the day-to-day operations for all MoA infrastructure
 Developing/researching new technologies and their application in MoA’s future strategies.
The CIO’s responsibilities will be more customer-focused and involve the following:
 Responsibility for the End User Services team, which will consist of Desktop Support, the
Service Desk, Reprographics, and Records Management. Many of the capabilities in this
team are potential outsourcing candidates, thus the role could evolve into more vendor
management than actual staff management.
 Responsibility for the Application Support Team, who will have oversight and
responsibility for all major applications, development, and related standards.
 Responsibility for Portfolio Management, which involved regular interaction with,
partnering, and building mutually beneficial relationships between ITD and the rest of the
agencies. This is a high touch, labor intensive role that will involve political savvy,
integrity, and humility.
Operational Roles
Underneath these new executive roles, the MoA requires the following role additions and/or
changes:
 Security Office – This role focuses on enterprise security as a dedicated resource,
instead of a shared responsibility amongst existing staff.
 Business Analysts - In the proposed model, agencies will be assigned a dedicated
business analyst to determine agency needs, understand business processes, and be
the single point of contact between the central IT organization and the agency. This was
the initial intent with the existing agency IT Leaders, but the focus was lost over time as
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these individuals became more focused on the agency’s needs and less on the bigger
picture of the MoA.
 The yellow boxes represent previous agency positions that would be consolidated into
existing support roles for the enterprise to improve service capability, enhance shared
support efficiency, and overall performance.
Keys to Success
Specific keys to success in the new organizational structure include:
 Identifying current managers who demonstrate and support the overall MoA objective(s),
and place these resources in spheres of influence where they can have the most impact
 Identifying and leveraging staff with tacit day-to-day knowledge of each agency’s
business activities and support requirements based on a mutual understanding of the
agency needs.
 Minimizing any interruption to the current support models by removing political and
ownership/entitlement/uniqueness barriers
 Establishing a functional MoA ITD service catalog, competitive pricing, transparent cost
structure, and appropriate SLAs for each service based on agency requirements.
 Improving the culture by taking a lesson from production worker’s attitude of customer
focus, removing political/entitlement barriers, and reviving the “what is best for the MoA”
team dynamic.
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Staffing Levels
Current State
The breakdown of the MoA staff compares well with other Excipio clients with a few critical
exceptions:
 Desktop support, administrative & clerical, and other (aka Graphic Services) are all
significantly higher than comparable organizations
 IT managers and service desk levels appear to be lower than the benchmarks
 IT security, change management, and business analyst roles are completely missing
from the organization
Figure S-8: Staff Breakdown
Major Functions
Computer
Economics
Survey
Excipio
Benchmarks
MoA
Benchmarks
IT Managers 11.2% 12.0% 7.8%
Project Managers 3.4% 2.3% 4.4%
Business Analysts 6.6% 3.0% 0.0%
App Developers and Programmers 23.1% 24.0% 33.4%
Systems Admins (Wintel & storage) 8.7% 10.0% 9.4%
Mainframe and Production Control 3.1% 4.0% 3.5%
Service Desk 9.9% 9.0% 4.7%
Desktop Support 8.2% 6.0% 11.9%
Network Admin/Support 9.5% 10.0% 7.1%
Database Admin/Support 4.1% 5.0% 3.2%
Change Management and Q&A 1.4% 1.0% 0.0%
Security 2.0% 2.0% 0.0%
Training/Documentation 1.1% 1.0% 0.0%
Administrative & Clerical 1.7% 2.0% 7.6%
Other 1.3% 0.7% 7.1%
Totals 95% 92% 100%
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Figure S-9 below summarizes the staffing in each of the agencies.
Figure S-9: Reported Staff Costs by Agency
Observations:
 HHS and SWS appear to have slightly lower compensation structure, as shown by the lower average cost per FTE
 The overall average cost per FTE is $129,048
 ITD has more than 80% of the total staff
Typical Technology Positions FTEs Total Dollars FTEs Total Dollars FTEs Total Dollars FTEs Total Dollars FTEs Total Dollars FTEs Total Dollars
Wintel Server resources 0.50 $ 41,846 1.00 $ 134,979 ‐ $ ‐ 5.00 $ 689,007 0.10 $ 12,165 6.60 $ 877,996
Unix Server resources ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐
Mainframe resources ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ 3.00 $ 438,975 ‐ $ ‐ 3.00 $ 438,975
LAN/WAN resources ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ 6.00 $ 782,279 ‐ $ ‐ 6.00 $ 782,279
Desktop Deployment ‐ $ ‐ 0.40 $ 46,551 ‐ $ ‐ 1.20 $ 144,410 0.15 $ 18,247 1.75 $ 209,208
Desktop Break Fix ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ 3.20 $ 385,093 0.10 $ 12,165 3.30 $ 397,258
Desktop Support ‐ $ ‐ 1.35 $ 168,633 ‐ $ ‐ 3.60 $ 433,230 0.10 $ 12,165 5.05 $ 614,028
Data Storage/Back‐up Restore ‐ $ ‐ 1.25 $ 152,113 ‐ $ ‐ ‐ $ ‐ 0.10 $ 12,165 1.35 $ 164,278
Application Developers 0.50 $ 63,288 0.25 $ 31,575 1.00 $ 111,987 2.90 $ 383,269 ‐ $ ‐ 4.65 $ 590,119
Application Support 0.50 $ 63,288 1.75 $ 245,005 1.00 $ 103,728 12.10 $ 1,661,543 0.40 $ 48,660 15.75 $ 2,122,223
Functional Support ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ 3.00 $ 408,096 ‐ $ ‐ 3.00 $ 408,096
GIS Technician ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ 5.00 $ 626,237 ‐ $ ‐ 5.00 $ 626,237
DBA's 0.50 $ 41,846 ‐ $ ‐ ‐ $ ‐ 2.00 $ 280,755 0.20 $ 24,330 2.70 $ 346,930
Change Management/Scheduler ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐
Project/Program Management 0.50 $ 90,449 ‐ $ ‐ 1.00 $ 128,314 2.00 $ 295,507 0.20 $ 24,330 3.70 $ 538,600
Security ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐
Administration ‐ Other ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ 12.00 $ 1,233,227 0.50 $ 60,825 12.50 $ 1,294,052
Management ‐ IS Executive 0.50 $ 90,449 1.00 $ 138,272 ‐ $ ‐ 5.00 $ 833,897 0.15 $ 18,247 6.65 $ 1 ,080,866
Data Center Facility resources ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐
Service Desk resources Level 1 ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ 4.00 $ 477,968 ‐ $ ‐ 4.00 $ 477,968
Service Desk resources Level 2 ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐
Service Desk resources Level 3 ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐ ‐ $ ‐
Totals 3.00 $ 391,165 7.00 $ 917,127 3.00 $ 344,029 70.00 $ 9,073,493 2.00 $ 243,299 85.00 $ 10,969,113
Average FTE Compensation $ 130,388 $ 131,018 $ 114,676 $ 129,621 $ 121,649 $ 129,048
AFD APD HHS ITD SWS Total FTEs
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Metrics:
The following chart provides a variety of metrics clients have found useful in understanding workloads. Many managers use these metrics
to accurately predict changes in staffing requirements on a quarterly, but no less than an annual basis.
Figure S-11: MoA Staffing Ratios
Major Functions Ratio
Small (Rev
<$50M but
<$350M)
Medium (Rev
>$350M but
<$1B)
Large
(Rev >$1B)
Typical Excipio
Clients
MoA
IT Managers Direct reports per manager 12.5:1 11.1:1 9.4:1 10:1 ‐ 15:1 12.8:1
Project Managers Developers per PM 2.4:1 5:1 8:1 3:1 ‐ 8:1 7.7:1
Business Analysts App Programmers/Sys Analysts per BSA FTE 10:1 6:1 6:1 7:1 ‐ 10:1
App Developers and Programmers Users per FTE 105 140 82 100:1 ‐ 125:1 93:1
# Major apps per FTE (support only) 20:1 25:1 24:1 20:1 ‐ 30:1
Server Support Staff Mainframe FTEs per Used MIPS NA NA NA .05 ‐ .15
Mainframe Operators per Used MIPS NA NA NA 0.01:1 0.02:1
Servers per FTE (no mainframe) NA NA NA 35:1 ‐ 45:1
Windows servers per FTE (no virtualization) NA NA NA 40:1 ‐ 50:1 55:1
Windows servers per FTE (>50% virtualized) NA NA NA 60:1 ‐ 80:1
Production SAN TB per Storage FTE NA NA NA 150:1 ‐ 250:1 37:1
Backup FTEs per client NA NA NA 2 ‐ 4 0.675
Sevice Desk Calls per FTE NA NA NA 4K ‐ 6K/yr per FTE 2559:1
Users per FTE (per shift) 163:1 283:1 658:1 250:1 ‐ 400:1 658:1
PCs per FTE 172:1 300:1 600:1 250:1 ‐ 400:1 722:1
Desktop Support <750 PCs 750‐2,500 PCs >2,500 PCs
In‐House Users per FTE (no projects per shift) 300 300 450 250:1 ‐ 400:1 261:1
Network Admin/Support <750 PCs 750‐2,500 PCs >2,500 PCs
Ports per FTE (incl LAN and WAN) NA NA NA 2,500:1 1806:1
IP Telephony Users per FTE 2,250:1 500:1
Database Admin/Support # Databases per DBA NA NA NA 20 ‐ 40 51
# App Dev per DBA (custom dev >50%) 3.5 4.5 3.8 10 ‐ 15 10.5:1
# App Dev per DBA (custom dev <50%) 6.8 8.7 7.4 15 ‐ 20
Change Management and Q&A # App Dev per QA FTE 3 6 6 4:1 ‐ 8:1
% or orgs with QA Staff 0.27 0.39 0.63 30% ‐ 45% 0%
Security # Security FTEs 0 1 3
# Users per Security FTEs 700 1000 1000
NW Admins per Security FTE 2 2 2.3
Training/Documentation Users per FTE 625 1164 1784 1,000:1 ‐ 1,500:1
Developers per FTE 2 2 2.3 3:1 ‐ 5:1
IT Process & Standards Total IT staff per FTE NA NA NA 2% ‐ 4%
IT Administration and Finance Total IT staff per FTE NA NA NA 1% ‐ 3% 7.6%
Other (Graphic Services) Value based versus local market NA NA NA NA
Totals
Typically
included in the
NW Admin ratio
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The chart below reflects the current staffing ratios by agency. An asterisk denotes HHS because the desktop and one of the developer
resources are actually ITD FTEs that are dedicated to the HHS team. In order to calculate the ratios accurately, Excipio moved these
resources from ITD to HHS.
Figure S-12: Agency Staffing Ratios
Observations:
 AFD is understaffed in server support, but overstaffed in DBA and management roles
 APD is overstaffed in the storage/backup, development, and management roles
 HHS is management heavy given the size of the staff
 ITD appears to be appropriately staffed, with the exception of some critical capacities that have no staffing (to be discussed later
in this section)
 SWS appears to be appropriately staffed given the size and complexity of the organization
Typical Technology Positions FTEs Ratio FTEs Ratio FTEs Ratio FTEs Ratio FTEs Ratio FTEs Ratio
Wintel Server resources 0.50 86:1 1.00 49:1 N/A 5.00 53:1 0.10 60:1 6.60 55:1
Mainframe resources N/A N/A N/A 3.00 0.02:1 N/A 3.00 0.02:1
LAN/WAN resources (incl Telephony) N/A N/A N/A 6.00 1806:1 N/A 6.00 1806:1
Desktop Support N/A 1 .75 414:1 1.00 275:1 7.00 264:1 0.35 117:1 10.10 286:1
Data Storage/Back‐up Restore N/A 1.25 6:1 N/A N/A 0.10 28:1 1.35 37:1
Application Developers & Support 1 .00 285:1 2.00 362:1 3.00 92:1 22.00 131:1 0.40 N/A 28.40 102:1
DBA's 0.50 2:1 N/A N/A 2.00 11:1 0.20 2:1 2.70 10.5:1
Project/Program Management 0.50 N/A N/A 1.00 3:1 2.00 N/A 0.20 N/A 3.70 7.7:1
Administration ‐ Other N/A N/A N/A 12.00 N/A 0.50 N/A 12.50 7.6%
Management ‐ IS Executive 0.50 6:1 1.00 7:1 N/A 5.00 13.6:1 0.15 13.3:1 6.65 12.8:1
Service Desk N/A N/A N/A 4.00 722:1 N/A 4.00 722:1
Totals 3 .00 7.00 5.00 68.00 2.00 85.00
AFD APD HHS* ITD SWS Total FTEs
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Ratio overview – While ratios can be an effective manner to provide general management insight,
unique situations often exist that may cause an organization to vary from the ratios in order to
meet other objectives such as service levels, response time, or specific cost per unit metrics.
This potential impact could not be ascertained, as none of the agencies currently have service
level commitments in place; work is performed on a “best efforts” basis.
 Where data was available from similar Excipio clients or organizations, the ratios were
provided in the Typical Client Ratios column.
 In areas where no standard metric was available, Excipio drew conclusions based on
similar staff structures and consultant experiences.
Figure RSR-5: Recommended Ratios and Metrics
Major Functions Ratio MoA
Current
MoA
Ratios
Target Ratios
Staffing
Ratio FTEs
Staffing
Delta
IT Managers Direct reports per manager 6.65 12.8:1 12:1 7 0.350
Project Managers Developers per PM 3.7 7.7:1 5:1 6 2.300
Business Analysts App Programmers/Sys Analysts per BSA FTE 0 0 7:1 4 4.000
App Developers and Programmers Users per FTE 28.4 93:1 100:1 ‐ 125:1 23 ‐5.000
# Major apps per FTE (support only) 0 20:1 ‐ 30:1
Server Support Staff Mainframe FTEs per Used MIPS 0.018 .05 ‐ .15
Mainframe Operators per Used MIPS 3 0.02:1 0.01:1 2.00 ‐1.000
Windows servers per FTE (no virtualization) 6.6 55:1 45:1 7 0.400
Production SAN TB per Storage FTE 0.675 37:1 200:1 0.125 ‐0.550
Backup FTEs per client 0.675 0.675 1 1 0.325
Sevice Desk Calls per FTE 4 2559:1 5,000:1 2 ‐2.000
Users per FTE (per shift) 658:1 400:1
PCs per FTE 722:1 250:1
Desktop Support
In‐House Users per FTE (no projects per shift) 10.1 261:1 261:1 10.1 0.000
Network Admin/Support
Ports per FTE (incl LAN and WAN) 4 1806:1 2,500:1 3 ‐1.111
IP Telephony Users per FTE 2 500:1 2,250:1 0.4 ‐1.556
Database Admin/Support # Databases per DBA 51 20 ‐ 40
# App Dev per DBA (custom dev >50%) 2.7 10.5:1 10:1 2.7 0.000
# App Dev per DBA (custom dev <50%) 0 NA
Change Management and Q&A # App Dev per QA FTE 0 8:1
% or orgs with QA Staff 0 30% ‐ 45%
Security # Security FTEs 0
# Users per Security FTEs 0
NW Admins per Security FTE 0
Training/Documentation Users per FTE 0 1,000:1 ‐ 1,500:1
Developers per FTE 0 4:1
IT Process & Standards Total IT staff per FTE 0 2%
IT Administration and Finance Total IT staff per FTE 6.5 NA NA 3 ‐3.500
Other (Graphic Services) Value based versus local market 6 0 NA 6 0.000
Totals 85 78 ‐7
Typically
included in the
NW Admin ratio
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Observations
 IT Managers - While the ratio of managers is reasonable, the workload dispersed across
the managers is not consistent. Some agencies have nonfunctional managers, while
others have technical responsibilities. As a general rule, a manager should be
responsible for the supervision of 10-15 direct reports. MoA’s manager ratios range from
1:1 to 1:28.
 Project Management - The PMO team is understaffed based on the application
development function. The list of active projects provides more evidence of understaffing
as IT resources fill this role in many cases. This results from a lack of strategic
coordination across the various silos within MoA. Inefficient project coordination and
execution results in ongoing delays as operational resources are assigned to multiple
projects or are routinely re-deployed to support changing project priorities.
 Business and System Analysts – With the list of projects and application development
activities, no resources exist for the business analyst role. This could result in a
disconnect when valuing the business purpose or objective of application development,
new technologies, and program improvement.
 Application Programmers & Development - The efficiency of this team is difficult to
ascertain, because the true number of users and/or major applications supported are not
known quantities.
 Server Support Staff - In total and based on the functional allocation from MoA, this group
appears to be effectively staffed. However, when broken down into the various
disciplines, the metrics identify the following:
o The total mainframe support (Mainframe Systems Support, System
Operations, and Production Control) totals 3 FTEs. When divided by the MoA
average MIPS in use (estimated at 171 based on MoA provided information),
the ratio yields .018. This is just outside of the range. The industry metric
Mainframe FTEs per Used MIPS ratio has a wide range (.05-.15), as the
workload and use of mainframes varies significantly across client
organizations.
o The enterprise Windows server team is measured by server instances per
FTE. Typical clients with little virtualization employed yield a ratio of 35:1 to
45:1. MoA enterprise is at 55:1.
o Based on total managed storage of 25.27TB, the data management team
appears to be staffed appropriately. This conclusion is driven by
storage/backup FTE coverage of a primary FTE and backup FTE. APD
represents 25% of the total MoA storage and anticipates 80% annual growth.
 Help Desk/Service Desk – The Service Desk requires half its current resources, based on
the following metrics:
o Total estimated monthly call volume – 784
o Average Handle Time (AHT) – 3.73 minutes
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The ITD Service Desk appears to operate as a call center based on the operational data
and statistics.
 Network Admin/Support - The ratios for network support include WAN, LAN, telephony,
and security, and indicate this area is overstaffed by 2 FTEs. Based on the information
provided, MoA is in transition to VOIP at the time of this engagement, which would likely
raise the MoA ratio in line with the target once fully converted. The transition may require
more staff until the migration is complete, so Excipio recommends making no changes
until such time.
 Change Management, Q&A/Testing, Training/Documentation, and IT Process &
Standards- These responsibilities are absorbed by the existing staff and management.
Much like the business analyst role, these responsibilities are critical to an
efficient/effective IT operation. Based on several outages that have occurred during the
course of this engagement, this is an area of significant improvement for MoA, and
especially ITD.
Recommendations
Based on the preceding chart, Excipio makes the following recommendations:
1) Work with each of the functional managers to realize the potential cost savings in each of the
areas.
2) Invest in missing critical roles including an enterprise architect/CTO, security/CISO, and
business systems analysis (BSA) roles.
3) Strive to understand, implement, and track metrics to demonstrate improvements.
4) Make managers accountable for their staffing levels and spending. MoA should expect initial
resistance, as this will feel very personal to each of them. While some managers will be open
to the staffing changes, many will be resistant due to personal relationships within the teams.
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Salary Research
In order to provide meaningful feedback regarding the staff’s compensation, Excipio used the following
sources:
 The 2010 Dice Survey for IT
 4Q2009 data collected from Salaru.com for a previous public sector client
 2011 projections from Robert Half, an international staffing and recruiting firm
 2010 Excipio client data from eight different clients with similar attributes
Excipio then took this external data and adjusted the benefit dollars to the MoA overhead structure
(column G). The delta between the MoA compensation versus the research data is reflected in column F.
Figure S-10: Summary of Salary Research
Based on Figure S-10, Excipio has the following observations:
 The MoA appears to be overpaying for low-end resources, specifically desktop support, the
service desk, and general administrative staff.
 Some of the more technically skilled resources (storage/backup, developers, and DBAs) are
underpaid.
 The mainframe resources appear overpaid.
MoA Average
A B C D E F=Average B‐E
G=F*.7/(1‐
.3654) +
$17,664
F = A ‐ G
Typical Technology Positions Total Dollars
2010 Dice
Survey Results
2009
Salary.com
Results
2011 Robert
Half
Projections
2010 Excipio
Clients
Lower 48
Average
Adjusted to
Alaska Delta
Wintel Server resources $ 1 33,030 $ 94,278 $ 136,647 $ 85,156 $ 108,457 $ 106,134 $ 134,736 $ (1,707)
Unix Server resources $ 1 31,588 $ 102,344 $ 109,990 $ 114,641 $ 144,119
Mainframe resources $ 1 46,325 $ 118,153 $ 82,813 $ 116,926 $ 1 05,964 $ 134,548 $ 11,777
LAN/WAN resources $ 1 30,380 $ 92,258 $ 111,749 $ 107,969 $ 108,501 $ 105,119 $ 133,616 $ (3,237)
Desktop Deployment $ 119,548 $ 62,941 $ 84,315 $ 44,688 $ 82,094 $ 68,509 $ 93,234 $ 26,314
Desktop Break Fix $ 120,381 $ 62,941 $ 84,315 $ 44,688 $ 82,094 $ 68,509 $ 93,234 $ 27,148
Desktop Support $ 1 21,590 $ 62,941 $ 84,315 $ 44,688 $ 82,094 $ 68,509 $ 93,234 $ 28,356
Data Storage/Back‐up Restore $ 121,687 $ 121,250 $ 110,568 $ 115,909 $ 145,518 $ (23,831)
Application Developers $ 126,907 $ 105,336 $ 143,580 $ 109,531 $ 104,934 $ 115,845 $ 145,448 $ (18,541)
Application Support $ 1 34,744 $ 95,080 $ 121,571 $ 100,313 $ 118,947 $ 108,978 $ 137,873 $ (3,128)
Functional Support $ 136,032 $ 95,080 $ 121,571 $ 1 00,313 $ 118,947 $ 108,978 $ 137,873 $ (1,841)
GIS Technician $ 1 25,247 $ 95,080 $ 121,571 $ 100,313 $ 118,947 $ 108,978 $ 137,873 $ (12,625)
DBA's $ 128,493
Database Administrator $ 1 28,493 $ 113,092 $ 129,762 $ 115,938 $ 122,092 $ 120,221 $ 150,274 $ (21,782)
Database Archtect $ 128,493 $ 105,522 $ 145,284 $ 136,406 $ 141,239 $ 132,113 $ 163,392 $ (34,899)
Change Management/Scheduler $ 1 17,420 $ 117,420 $ 147,185
Project/Program Management $ 145,568 $ 125,771 $ 133,811 $ 120,156 $ 111,676 $ 122,854 $ 153,179 $ (7,611)
Security $ 121,250 $ 121,250 $ 151,410
Administration ‐ Other $ 103,524 $ 45,000 $ 45,000 $ 67,302 $ 36,223
Management ‐ IS Executive $ 162,536 $ 153,839 $ 248,136 $ 154,531 $ 204,228 $ 190,184 $ 227,447 $ (64,911)
Data Center Facility resources $ 1 12,813 $ 78,571 $ 95,692 $ 123,218
Service Desk resources Level 1 $ 119,492 $ 53,852 $ 70,153 $ 42,813 $ 58,230 $ 56,262 $ 79,724 $ 39,768
Service Desk resources Level 2 $ 81,321 $ 65,469 $ 80,846 $ 75,879 $ 101,363
Service Desk resources Level 3
Averages $ 129,582 $ 94,144 $ 121,638 $ 95,672 $ 105,800 $ 103,316 $ 131,627 $ (2,046)
External Data Points
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 The senior management positions, not to be confused with the team lead and shift
supervisors with 2-4 direct reports, appear significantly underpaid.
Labor is typically the largest expense component of an IT organization. For the public sector, there are
many cost components of compensation. Employer-paid health benefits, additional holidays, and pension
funding are all attractive benefits for public sector careers. As these benefits are not typically found in the
private sector, public entities usually experience the following side effects:
 There are high retention rates for staff with more than ten years of experience.
 Quick increases in employee pay as managers attempt to match staff salaries versus
external private party rates. This is problematic, as managers often exclude the cost of the
benefits in making this comparison. In addition, the staff quickly reaches the salary cap for
their grade, which can create discontent as future increases are only tied to cost of living
increases.
 For tenured staff, the public sector provides a level of security not found in the private sector.
 The lack of individual incentive options often causes employee’s mentalities to transform their
role perspectives from a career to a job.
MoA is closely aligned with many staff ratios and metrics from a FTE count perspective, but the total labor
costs are not aligned with the IT function. Using Figure S-10, the MoA average cost difference between
the entry level position (help/service desk) to the highest position (IT Executive), from a cost perspective
is $43K. In comparison, the Adjusted to Alaska cost range for the same resources is $148K.
Recommendations
1) The MoA needs to review positions and compensation for each position. Discrepancies exist
across the IT organization and within different IT positions/titles, and this was not unique to
any specific agency. Contributing factors to this situation include:
a) The MoA’s title framework and salary ranges may not be flexible enough to
accommodate the market for certain “in demand” skills.
b) The MoA is definitely overpaying for certain “commodity” skills, while it lacks the
flexibility to pay the market rate for other specialty skills.
c) The MoA’s compensation levels do not reflect recent downward reductions in labor
costs due to the weaker economy.
2) The burdened overhead on staffing places the MoA at a distinct disadvantage versus IT
organizations based in the Continental US. The primary issues are:
a) The public sector typically has a higher overhead structure than private sector
organizations. Excipio typically finds public sector overheads in the 25%-32% range,
which includes all Social Security, Medicare, state unemployment, pension, and
healthcare costs.
b) One of the main issues is directly related to the mandated pension costs, known as
PERS (22%). This cost is funded 100% by the MoA and in addition to all other
burdened costs.
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3) The method used by the MoA to distributed healthcare costs, while simplistic, has the
potential to create significant issues in the near future. Proposed legislation is being
prepared that would treat employer paid costs as taxable income to the employee. Should
this legislation pass, the current method is unfair to the employees that require less than full
family coverage.
Excipio makes this statement based on the following:
a) The typical cost for family coverage is typically $16K-$18K per year.
b) The cost for employee plus spouse is typically $10K-$12K per year.
c) The cost for the employee only is typically $5K-$6K per year.
4) Should MoA decide to change the method used to distribute health care costs, this could
create another issue. Once the actual staff census is determined, the plan may have to
allocate more money to individuals requiring family coverage to make up for those who do not
require this level of coverage. Common remedies include:
a) Reducing deductibles
b) Reducing or eliminating coverage
c) Place a ceiling on the amount of coverage paid by the MoA, requiring employees to
participate in funding
d) Most employers cover 80%-100% of the employee, but only a portion of the family.
The best organizations cover 80% of the family, but it is more common to see 40%-
60% of the family covered by the employer.
Staff Development
Staff Certifications
Technical and professional certifications can be a complex area for organizations to assess. For
internal IT organizations, certifications are often left to the individual employee to pursue. Some
organizations will assist individuals with certification costs for those who pass. Allowing
individuals to pursue certifications on company time is often used by organizations as an
alternative to additional compensation. The chart below represents the existing certifications at
MoA:
Figure S-5: Certifications
Excipio makes the following observations:
Number of
Certifications
Certification
Qty
Percent of
Total Staff
Qty in Last
3 Yrs
Percent of
Total Staff
1 23 28% 7 8.6%
2 18 22%
3 8 10%
4 4 5%
>4 2 2%
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 Although 28% of the staff has some form of technical certification, on 7% hold
certifications within the past three years. Given the rapid rate of change in IT, most
certifications are only meaningful for two years. This is an indication that the majority of
the staff has not received any recent training and is likely falling behind on new technical
skills.
 Although 18% of the staff holds two or more certifications, note that this percentage
declines by 50% every year.
The true “service provider” is typically held to a higher standard of service, marketing themselves
as experts with knowledge and skills. Their IT operations are expected to be superior to those of
internal organizations. For this reason, many service providers expect their staff to attain and
maintain certifications for customer credibility. As ITD models itself to be a service provider,
employee certification expectations should be higher and clearly documented. MoA should
establish a certification program for new and existing employees and should also set policy based
on if, when, and how it will contribute to certification costs. The most common certifications are
provided below:
Windows Server
 Microsoft Certified Systems Administrator (MCSA)
 Microsoft Certified Systems Engineer (MCSE)
UNIX Server
 IBM Certified Associate System Administrator (ICASA)
 Red Hat Certified Engineer (RHCT)
Network and Security Certifications
 Cisco Certified Network Associate (CCNA: Security/Voice/Wireless)
 Cisco Certified Design Associate (CCDA)
 Cisco Certified Design Professional (CCDP)
 Cisco Certified Internetwork Expert (CCIE)
 Cisco Certified Security Professional (CCSP)
 Cisco Certified Voice Professional (CCVP)
 ISSA Professional in Critical Infrastructure Protection (PCIP)
Developers and DBAs
 Microsoft Certified Database Administrator (MCDBA)
 Microsoft Certified Professional Developer (MCPD)
 Microsoft Certified Solution Developer (MCSD)
 Oracle 11g OCA
 Oracle9i DBA OCA
 Sun SCP J2SE
Desktops
 A+ Certification
 Microsoft Certified Desktop Support Technician (MCDST)
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Other Areas
 Service Desk – Help Desk Institute (HDI) Customer Service Rep (CSR), HDI
Support Center Analyst (SCA)
 PMO – PMI’s Project Management Professional (PMP)
 VMware Certified Professionals (VCP)
 Disaster Recovery – ISSA Master Business Continuity Professional (MBCP),
ISSA Business Continuity Certified Expert (BCCE), Disaster Recovery Certified
Expert (DRCE)
Staff Reviews
Per Figure S-6 below, only 27% of the staff has received formal performance feedback within the
past year. While 45% of the staff has received a review within the past two years, this leaves
more than half the staff without recent feedback. Nearly 5% of the staff has never had any
performance feedback. Based on feedback from the onsite interviews, performance reviews
seem to stop once an individual reaches their maximum performance grade. It is the staff’s
perception that once they reach this level, no additional performance reviews occur. At this point
the staff is only eligible for cost of living increases.
Figure S-6: Performance Reviews
Figure S-7: Performance Rating
0‐12 months,
27.2%
12‐24 months,
28.4%
24‐36 months,
11.1%
36+ months,
28.4%
Never, 4.9%
Response
Percent
Response
Count
64.6% 51
34.2% 27
1.3% 1
0.0% 0
Poor 0.0% 0
Answer Rating
Excellent
Good
Neutral
Fair
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Based on preceding chart, it is the staff’s perception that more than 98% of the performance
feedback was rated “Good” or better. This is indicative of one or more of the following conditions:
 The review criteria are set at a relatively low level, meaning the performance criteria are
too easy to achieve.
 The managers and supervisors doing the evaluations are not critical enough of the staff
performance. If this is the case, this will not help the staff improve unless they are held
accountable to performance expectations. In fact, more than 76% of the staff reported
that they do not have a resulting action plan in place.
 The staff could be comprised of a significantly above average group of highly performing
individuals. Given that Excipio has interviewed a significant portion of the staff, Excipio
did not find any indicators that would make the staffs unique from other Excipio clients.
Recommendations
1) The MoA IT organization as a whole does not currently provide a career path for its staff.
Individual employees perform their roles as a job, not a career. The average tenure and low
turnover of the staff is often perceived as a positive, but is more a product of multiple
variables (above average compensation, lack of responsibility, minimal work hours, union
protection, and job satisfaction), depending on the group. An organization without career
development plans will struggle to attract and retain new talent, especially the younger
generations.
2) It is impractical to continue the process of promoting technical resources to middle
management without providing appropriate training around staff management. Managing
people takes a significantly different skill set than managing technologies. Technical
employees with management potential should be placed on a management track that
includes management training and skills development. Management outcomes should be part
of a manager’s evaluation. Below is a strategy to employ a performance review process:
3) Implement a plan to clearly document and update the roles and responsibilities of each staff
position.
4) Implement a process to establish annual performance reviews where individuals are
evaluated against specific performance criteria, objectives, and metrics. The performance
review should include individual goal-setting and development planning and follow-up
reviews.
5) Work with human resources to develop a human capital plan, which will provide for staff
development from new hires through various stages to senior positions. For example, an
entry-level position may start in the Service Desk, and then graduate to other disciplines in IT
with the eventual goal of attaining a senior architect/analyst position. Establish a parallel
management track with appropriate training for IT management.
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Enterprise Support
The following observations are considered as strategic inclusions for enterprise considerations related not
only to centralized operations, but to the enterprise strategy as a whole.
Program Management
In order to ensure a common understanding of the terms in this section, ITIL defines the following:
“Program - A number of Projects and Activities that are planned and managed together to
achieve an overall set of related Objectives and other Outcomes.”
Based on the definition above, ITD does not have any defined programs in place at this time. Informal
components of programs exist, but lack significant coordination and management. Introduction of
initiatives or direction related to programs requires formal processes for successful implementation. For
example:
Desktop Management Program
 Acquisition and deployment of devices
 Recycle and re-provisioning of devices
 Acquisition and deployment of peripheral devices
 Virtual desktop deployment and support
 Disposition and destruction
To implement program management, ITD must achieve the following:
 Define the appropriate programs based on future strategy and customer feedback
 Assign an owner to the program that is accountable for the performance, costs, and quality of
service.
 Set specific goals, objectives, and metrics for each program that can be measured and
monitored on a regular basis.
 Leverage ITIL processes to implement continuous improvement.
Project Management
ITIL defines Project Management as:
“Project - A temporary Organization, with people and other Assets required to achieve an Objective or
other Outcome. Each Project has a Lifecycle that typically includes initiation, planning, execution, closure
etc. Projects are usually managed using a formal methodology such as PRINCE2.”
ITD currently has a shortage of project management resources and struggles with keeping up with the
project workload and misses timelines on a regular basis. After discussions with the various groups
across ITD, Excipio believes a change in how the portfolio of projects is managed will dramatically
improve the quality and rate of delivery, as well as reduce resource constraints for active projects.
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In the current environment, ITD may have 30 to 40 active projects at any one time. These projects all
compete for funding, technical and PMO resources, which are known constraints. Even though the
Figure PPO-1 below is not populated with actual data, it is a reasonable depiction that graphically
demonstrates the complexity of the project portfolio. Imagine that each block represents a different
project, each requiring a project manager and the time from 3 to 10 resources across the Technology,
Security, Financial, and Customer Management teams. Attempting to connect and diagram all of the
relationships, dependencies, and manage these projects in a portfolio would be a complex and resourceintensive
task.
Figure PPO-1: Current Project Portfolio
Current Challenges
 The current process used to manage and prioritize projects is inefficient.
o Most projects are introduced to the PMO with a predetermined deadline.
o Without prioritization, most project schedules will slide and miss deadlines.
o No overall “map” of projects and their relationships to establish critical paths and
dependencies exist.
o A single group may have multiple simultaneous projects that compete for the same
resources and dollars.
o The need exists to group individual projects into programs or themes that are
sequentially executed based on priority and value.
 The PMO staff is spread too thin due to the sheer volume of projects.
o PMs spend their time in reactive mode performing scheduling, reporting, status
updates, vendor payments, etc.
o PMs have little time allotted to proactively manage project risks.
 PMs have no authority to make decisions or allocate resources.
o The operational staffs are often consumed by daily support issues and PMs have no
ability to schedule operational resources.
o The above often results in schedule delays, unless the project is preferred by the
manager over the operational resources.
 Service consistency is a challenge
o The skill sets and technical expertise vary great across individuals.
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o The PMs may not be consistent within a series of projects due to resources loads
and lack of project prioritization.
Proposed Method
Now let us focus on a new method for managing the same portfolio of tasks. Using this method,
the project portfolio will be assessed using the following process:
 All projects will be grouped and categorized based on the technical groups sponsoring and
funding the projects.
 Next, all projects will be ranked in prioritized based upon:
o Operational need – criticality or potential to impact service
o Revenue generation/cost savings potential
o Legislative or regulatory requirements
o Funding requirements
Figure PPO-2: Hypothetical Project Portfolio
Under this type of approach, the forty projects would not be simultaneously active.
Instead, each team would focus their available resources on the highest priority project.
Once that project is completed, the team can move on to the next project on the list.
Attacking projects in this manner will accomplish the following objectives:
Project Name
Enterprise
Priority/Risk
Revenue
Generating
(Y/N)
Legislative or
Regulatory
Requirement
(Y/N)
Project or
Contract
Number
Project Description
Total Requested
Funding
Total Approved
Funding
FYE 6/30/2010 $ 11,475,000 $ 8,970,000
$ 5,950,000 $ 4,900,000
Project 1 Critical N Y $ 250,000 5%
Project 2 High Y Y $ 1 ,120,000 28%
Project 3 High N Y $ 1 ,200,000 52%
Project 4 Moderate N Y $ 100,000 54%
Project 5 Moderate Y N $ 1,000,000 75%
Project 6 Moderate Y N $ 730,000 90%
Project 7 Moderate N N $ 500,000 100%
Project 8 Low N N $ 1,000,000 120%
Project 9 Low N N $ 50,000 121%
Finance $ 800,000 $ 800,000
Project 1 Critical N Y $ 570,000 71%
Project 2 High Y N $ 230,000 100%
Security $ 4,725,000 $ 3,270,000
Project 1 Critical Y N $ 50,000 2%
Project 2 Critical Y Y $ 2,500,000 78%
Project 3 Moderate N N $ 500,000 93%
Project 4 Moderate N N $ 220,000 100%
Project 5 Low N N $ 675,000 121%
Project 6 Low N N $ 80,000 123%
Project 7 Low N N $ 700,000 144%
Data Center Operations
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 Technical resources will be spread over a fewer number of simultaneous projects, eliminating
the majority of the resource constraints experienced by the PMO today.
 Instead of MoA implementing 20% of project’s capabilities to meet a deadline, which happens
today, 70% to 80% of the project objectives should be accomplished.
 Today, each project requests and is funded on an individual project basis. If a project does
not get full funding, a portion of the functionality or deliverables is typically removed from the
scope of the project. Under the structure above, funding is applied to the pool of projects in
the order of priority (ex. Project one, Project two, etc.). Funding could also be balanced
across multiple groups for any excess or shortage in any approved funding.
Change Management
The Change Management capability is currently maintained at the agency level. All agencies participate
in change management, but policies and execution strategies vary greatly. Some agencies loosely
document changes and hold meetings to discuss and communicate changes, while others use Altiris for
system management. In all cases, there is significant room for improvement. During the interviews, it
was a common theme that both time and resources were not available to consistently follow a formal
policy. This perception is an issue for the following reasons:
 Change management is critical to any organization and requires a formal policy with
appropriate procedural detail.
 One of the main reasons for change management is to provide knowledge and communicate
updates to all resources. Changes need to be approved by an authority prior to moving
forward. During the interviews, discussions pointed to agencies implementing global
changes that affected other agencies without any advance notice.
 Although a formal policy is written, the language requires a detailed process and approval
process that includes a way to track and police the policy.
 Change management needs to be included in all support efforts as an expectation, without
exception.
Observations and Recommendations:
1) A change management capability currently exists but is relatively informal and has resulted in
outages dues due to staff not adhering to existing processes.
2) Consider leveraging Remedy as an interim tool. A true change management system will also
involve aspects of data center facilities maintenance, network, server, firewall, patch
management, and application version control
3) Responsibility needs to be assigned, education performed across the agencies, and serious
penalty provisions implemented for those who do not follow the process
Reprographics
The Reprographics department is managed by ITD, providing print reproduction, graphic design, and
mailroom services to the MoA Enterprise. As with most internal reprographics services, this venture was
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intended to reduce the need of print devices and lower the cost of specialty reprographics needs.
Overtime, as with many business services, the value proposition changes. Below are some observations
related to challenges for these services:
 Improvements and enhancements in print technology/functionality have reduced the need for
centralized specialty services. Most multi-function devices have the technical capabilities
required at a departmental level.
 Environmental awareness has reduced the need for hard copy print
 The mass reproduction equipment and maintenance is expensive, and organizations are
constantly trying to reduce overhead costs
 The resources required to operate these devices have specialized, more expensive, skill sets
Metrics and Statistics:
The Reprographics Shop provided basic production data representing the month of October
2010. From this data, Excipio was able to provide the following productivity statistics. The
following charts summarize reprographic service activity by job and number of impressions from
the data provided.
Observations:
 From the 234 service jobs, nearly 70% were represented in two service categorized as
Cut Sheet and Forms.
 Most of the service jobs include basic services, such as business cards, booklets, and
wall plates.
Service Category Jobs %
Cut Sheet 91 39%
Form 68 29%
Business Cards 21 9%
Booklet 19 8%
Wall Plate 11 5%
Envelopes 7 3%
Brochure 3 1%
Digital File 2 1%
Graphics 2 1%
Wallet Card 2 1%
Bindery 1 0.4%
Contracted 1 0.4%
Data Mailer 1 0.4%
Die cut 1 0.4%
Display 1 0.4%
Door Hangers 1 0.4%
Letterhead 1 0.4%
Testing 1 0.4%
Grand Total 234 100%
Service Category Impressions %
Cut Sheet 199,719 42%
Form 107,450 23%
Booklet 106,629 23%
Contracted 16,000 3%
Brochure 14,750 3%
Letterhead 9,000 2%
Business Cards 7,751 2%
Door Hangers 6,667 1%
Testing 4,450 1%
Envelopes 500 0%
Die cut 200 0.04%
Wall Plate 11 0.002%
Graphics 1 0.0002%
Digital File N/A N/A
Wallet Card N/A N/A
Bindery N/A N/A
Data Mailer N/A N/A
Display N/A N/A
Grand Total 473,128 100%
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 From the impressions chart, Cut Sheet, Forms, and Booklets represent 88% of
reproduction activity.
 The next largest number of impressions is the service category “Contracted”, which
Excipio assumes represents a job that was outsourced.
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The next chart breaks down job priority and service output.
Observations:
 Excipio noticed for this particular month of production, no low priority jobs were present.
 The break-out between high and medium priority jobs were split at almost 50%
 On average by job, the high priority jobs took 7.6 days to turnaround while the medium
jobs took 5.7 days. High priority jobs typically take three days or less in most
organizations.
 The Reprographics Shop employs some of the highest tenured staff, which from a cost
perspective represents higher salaries when compared to market rates for the same
skillset. Higher tenured staff results in higher burden costs.
 Although not familiar with the market, have other data points from other local clients who
have outsourced this capability
 The chargeback model is complex and is based on historical agency customer use.
InterGovernmental Charges (IGCs) are based on points and not on actual dollar costs,
which adds another level of complexity. As an example, the cost of an office name plate
at city hall (the same location as the Reprographics Shop) was $13. The material
Priority Service Category Jobs
Average Production
Days by Job
(Order In / Order Out)
Contracted 1 35
Die cut 1 21
Door Hangers 1 21
Graphics 2 15
Form 22 13
Business Cards 4 9
Data Mailer 1 7
Display 1 5
Booklet 14 4
Envelopes 1 4
Cut Sheet 63 3
Digital File 2 3
Brochure 2 2
Testing 1 0
High Priority Total/Average 116 7.6
Brochure 1 38
Letterhead 1 13
Business Cards 17 13
Booklet 5 12
Envelopes 6 12
Wall Plate 11 8
Cut Sheet 28 5
Form 46 4
Wallet Card 2 1
Bindery 1 0
Medium Priority Total/Average 118 5.7
High
Medium
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included a piece of paper with the printed name on paper slid into a name plate holder.
The quality was good and the product looked professional. In a general search on the
internet, an engraved name plate costs $8 to $12.
 Excipio does not believe the MoA has enough volume to efficiently operate the Xerox
device. This was reported as costing in excess of $1M, plus the dedicated operator.
Assuming this the unrealistic scenario where this device has a 10 year useful life the print
volume is consistent, and 100% of the print impressions are done on this device, the cost
per impression is $.035 - $.04, exclusive of consumables.
A device of this class is intended to be operational 70% of normal business hours to be
cost effective.
Recommendations and Options
1) The service is still a requirement in certain cases, but the value proposition and economics of
insourcing needs to be evaluated against the local market.
2) Some Excipio clients have partnered with high schools and local colleges to have simple
printing and graphics work done by students taking a reprographics-type course as a school
project to lower the costs and promote community service.
3) Within a mile or two of city hall, there are three specialty print/graphics service businesses
with 30+ years of experience. Excipio recommends a study to determine if outsourcing this
service is a viable alternative to the insourced solution.
Strategic Roles
Project Management
Project and Program management is viewed as a functional role instead of a strategic role for the
MoA organization. With 40+ projects or initiatives on the roadmap, project management is
considered an afterthought amongst the resources. When discussing the role of project
management during interviews, the resounding response was “projects are introduced with
predetermined expectations and defined deadlines without any documented research or duediligence”.
Based on experience and the size of projects, a single project manager is expected to
manage five to ten active projects at one time.
Business Analysis
The business analyst role exists to perform analysis related to aligning technology with the
business strategy. This function is defined by the International Institute of Business Analysis
(IIBA) which describes the role as, "a liaison among stakeholders in order to understand the
structure, policies, and operations of an organization, and to recommend solutions that enable the
organization to achieve its goals."
MoA does not have a dedicated business analyst role to function at the enterprise level. The
function today is backfilled by technical managers from the direction of the executive staff.
Business analytics should be an assessment of strategy against the business requirements. The
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business analyst works with executive management (including agency directors) to understand
business strategy, project managers to define project scope/objectives, and stakeholders (agency
customers) to understand need requirements. Excipio recommends adding this role for the
following reasons:
 Bridge the gap between executive strategy and technology
 Assist in establishing strategy
 Evaluation and improvement of business processes
 Improve Operational and financial due diligence to frame-up projects for success
 Assist in prioritizing projects based on the business strategy
Enterprise Architect
MoA would benefit from a dedicated enterprise architect role in the organization. The current
standards appear to be more related to hardware and derived from each technical discipline (i.e.
server hardware from the server team, network hardware from the network team). The enterprise
architecture incorporates a broader view aligning all aspects of systems integration and not just
the hardware. The enterprise architect leads a team of subject matter experts to develop
standards from a holistic technical platform perspective that align with the organizational strategy
to provide services.
Management Development
For the most part, the middle management layer is not staffed with individuals trained in managing
people. The vast majority are technologists that have, through attrition and dedication of time to the
organization, been promoted to manage peer technologists. This can detrimentally impact the
organization for the following reasons:
 In many cases, the person managing the group was once a technologist. This can result in
stagnant technology and thought processes, as the manager typically has a personal
attachment to the technology or a tendency to keep operating at the status quo.
 This promotion method does not bring in new ideas, new experience, or concepts into the
organization.
 The middle managers are often not equipped with the correct training and tools to manage a
diverse staff or emerge as a leader.
MoA needs to focus on either training these individuals or replacing them with new managers from
outside the organization.
IT Steering Committee
Excipio reviewed the provided presentation from the January 2010 Steering Committee Kickoff Meeting
and the IT Roadmap. The IT Steering Committee is a group of MoA Management formed to represent all
municipal departments excluding ML&P and AWWU. The committee has the following Mission
Statement:
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“The IT steering committee is responsible for the effective and cost-efficient application of
information technologies, related personnel resources and funding to meet the strategies, goals
and objectives of MOA General Government.
The IT steering committee aims to obtain the greatest value and returns within a well-controlled
risk containment framework.”
The formal and documented Steering Committee Roles and Responsibilities are as follows:
 Provide IT Governance
 Develop IT Strategy
 Define IT Policy
 Align IT Objectives and Projects with the business of MOA
o Evaluate Project Proposals
o Approve/Disapprove Proposals
o Prioritize IT Projects
 Approve and commit to the MOA IT Plan for the Future
Observations:
 During the interviews with technology resources and IT management, all discussions routed
back to the same general perception of the IT Steering Committee. The perception is the
committee is in place to approve and disapprove all IT projects.
 The committee members, except for the ITD representative, do not have extensive technical
backgrounds.
 Excipio endorses the committee principles and foundation in theory and concept.
 Agencies are frustrated with the amount of time it takes to get committee approval
 The current committee is not a governing body, as the committee is used to approve IT
investments. The committee also needs to expand its role to include policy governance and
enforcement, as agencies regularly bypass existing processes today.
 Should be setting overall strategy and investment priorities across all agencies
 Overall, the current administration and environment seems to steer away from governance
and enforcement. Everyone wants to get along and do a good job, but no one wants to hold
other parties accountable. Governance and enforcement is critical to drive down operating
costs and improve efficiencies.
 The staff’s perception of the Steering Committee is more about control than governance.
Excipio has proved Appendix A with ideas on a governance model that can be applied to all
policies
Recommendations:
While the Committee has made significant progress on some issues over the past year, other
areas continue to suffer from a lack of focus and direction. Excipio recommends a minor change
to the current structure.
The current IT Steering Committee should change its name to the IT Advisory Board. Based the
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overall organizational objectives, this team would be charged with alignment and funding of
projects across the MoA. For example, if each agency submits ten projects for the fiscal year, it
would be the Advisory Board’s role to determine the number of projects to be funded in total and
which of the projects meets the objective criteria. This could mean that some agencies get zero
project funding in one year, but could get all projects funded the following year.
Excipio recommends second team that focuses on the technologies and operational efficiencies
of IT for all of MoA. This team could be the “IT Steering Committee”, and should be comprised of
the CIO, the CTO or Chief Architect, and each of the agency liaisons. This team would be able to
talk about technical challenges, wants, needs, and requirements for the organization, and use this
information to derive technical standards, processes, and strategy for the organization. This
group should meet no more than bi-monthly, with a specific agenda and limited timeframe for
each meeting.
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Transition Plan & Financial Implications
One of the challenges MoA currently faces, which will only become more of an issue in a centralized environment, is how to prioritize projects
across the organization. The following list of projects does not take into account any individual agency initiatives which could have an impact on
the overall timing and priority. The chart below identifies recommended projects/initiatives from a priority perspective:
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Management
Staff Productivity Ratios and
Operational Metrics
$ ‐ $ ‐ High 1 2Q11
Operations
Review
Project Management
Portfolio Management
Methodology
Implement project ranking/prioritization
process and integration of BSAs
$ ‐ $ ‐ High 1 2Q11 None
Financial
Cost Reduction Identification
Study
GIS ‐ annual cost savings $ 200,000 $ 400,000 High 2 2Q11
Operations
Review
Application Development Inventory Applications $ ‐ $ ‐ High 3 2Q11 None
Financial
Implement a Cost Recovery
Model Based on Consumption
$ ‐ $ ‐ High 3 2Q11 Establish SLAs Excipio
Financial
Cost Reduction Identification
Study
Service Desk TBD TBD High 3 2Q11
Operations
Review
Excipio
Financial
Establish Service Level
Agreements
Depends greatly on agency inputs TBD TBD High 1‐2 2Q11 None Excipio
Management
Agency Alignment and
Governance Structure
Align IT focus/direction across all agencies,
work on "Big Brother" perception
$ ‐ $ ‐ High 1‐2 2Q11 None
Server Operations Server Virtualization Strategy Need seed money for the research $ (50,000) $ (100,000) High 2‐4 2Q11
Storage/Backup
Strategy
Storage and Backup Operations Multi‐Tiered Storage Strategy Need seed money for the research $ (50,000) $ (100,000) High 2‐4 2Q11 None
Data Center Operations Facilities Upgrades Cost of operations $ (1,600,000) $ (2,600,000) High 3‐4 2Q11 None
Network Operations
Implement Intrusion Prevention,
Detection, and Monitoring
Out of scope Out of scope High 3‐6 2Q11‐4Q11 None
External
Vendor
Management
Implement Staff Performance
Reviws and Staff Goals
$ ‐ $ ‐ High 6‐12 2Q11‐4Q11 None
Financial ERP Replacement Out of scope Out of scope High In Process 2Q11‐2013 None
Financial
Procurement ‐ Policy Definition
and Enforcement
$ ‐ $ ‐ High Ongoing 2Q11 None
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Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Application Development Create MoA Standards $ ‐ $ ‐ Medium 1 3Q11
Application
inventory
Management Reporting Structure $ ‐ $ ‐ Medium 1 3Q11 None
Application Development Develop Application Lifecycle Potential for staff reductions TBD TBD Medium 2 3Q11
Application
inventory
Financial
Cost Reduction Identification
Study
Reprographics ‐ annual savings $ 200,000 $ 400,000 Medium 2 3Q11
Operations
Review
Excipio
Data Center Operations Change Management Minimize business interruptions $ ‐ $ ‐ Medium 3 3Q11
Data center
upgrade
Excipio
End User Services
Virtual Desktop Integration (VDI)
Strategy
Speed of service, potential reduce PC
purchases
$ ‐ $ ‐ Medium 3 3Q11 None Excipio
End User Services Print Management Strategy $ 1,000,000 $ 2,000,000 Medium 3 3Q11 None Excipio
Financial
Cost Reduction Identification
Study
Desktop Support ‐ annual savings $ 500,000 $ 100,000 Medium 3 4Q11 None Excipio
Server Operations Server Consolidation & Refresh
Reduction in capital expenditures,
increased operating expenses
$ ‐ $ ‐ Medium 12‐18 4Q11‐2012 None
Storage and Backup Operations
Standardization and
Consolidation
Depends on the strategy TBD TBD Medium 12‐18 4Q11‐2012 None
Data Center Operations Disaster Recovery Minimize business interruptions $ ‐ $ ‐ Medium 12‐24 2012‐2013 Consolidation
End User Services Desktop Refresh $ ‐ $ ‐ Medium 12‐24 4Q11‐2013 VDI Strategy
Management
Staff Training and Development
Plan
All straff receives training at least every
three years
$ (127,500) $ (255,000) Medium 12‐24 1Q12‐2013 None
Management Fill Strategic Roles
CSO, Enterprise Architect/CTO, BSAs,
Project Managers
$ ‐ $ (250,000) Medium 3‐12 3Q11‐1Q12 None
Human Resources
Review ‐ Titles, Skills, and
Compensation
$ ‐ $ ‐ Medium Ongoing 2Q11 None
Other Electronic Records Management Depends on the ERP solution TBD TBD Medium TBD 2012 ERP Project Excipio
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Observations
 The purpose of this chart is not to review the myriad of smaller technology projects, but to help the MoA understand where each of
the smaller projects fits into the overall strategy.
 Of the one-time capital spending, nearly all of it is due to the data center remodeling project.
 As a whole, the MoA is underinvested in technology, processes, and automation.
The next set of chart identifies the same projects/initiatives isolated by focus area and priority.
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Mainframe Operations Transition Strategy $ ‐ $ ‐ Low 2 4Q11 None
End User Services Print Refresh TBD TBD Low 12‐24 4Q11‐2013
Transition
Strategy
Network Operations
Telecom ‐ Complete VOIP
Migration
Out of scope Out of scope Low 12‐36 Ongoing None
Other Procurement Automation Depends on the ERP solution TBD TBD Low TBD 2012 ERP Project
Other Mail Scanning Depends on the ERP solution Out of scope Out of scope Low TBD 2012 ERP Project
One Time Capital Spending $ (1,700,000) $ (2,800,000)
Projected Annual Savings $ 1,772,500 $ 2,395,000
Total Five Year (Cost)/Savings $ 7,162,500 $ 9,175,000
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Application Development Inventory of applications $ ‐ $ ‐ High 3 2Q11 None
Application Development Create MoA standards $ ‐ $ ‐ Medium 1 3Q11
Application
inventory
Application Development Develop an application lifecycle Potential for staff reductions TBD TBD Medium 2 3Q11
Application
inventory
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Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Data Center Operations Facilities upgrades Cost of operations $ (1,600,000) $ (2,600,000) High 3‐4 2Q11 None
Data Center Operations Change management Minimize business interruptions $ ‐ $ ‐ Medium 3 3Q11
Data center
upgrade
Excipio
Data Center Operations Disaster Recovery Minimize business interruptions $ ‐ $ ‐ Medium 12‐24 2012‐2013 Consolidation
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
End User Services
Virtual Desktop Integration (VDI)
Strategy
Speed of service, potential reduce PC
purchases
$ ‐ $ ‐ Medium 3 3Q11 None Excipio
End User Services Desktop Refresh $ ‐ $ ‐ Medium 12‐24 4Q11‐2013 VDI Strategy
End User Services Print Management strategy $ 1,000,000 $ 2,000,000 Medium 3 3Q11 None Excipio
End User Services Print refresh TBD TBD Low 12‐24 4Q11‐2013
Disaster
Recovery
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Financial
Establish Service Level
Agreements
Depends greatly on agency inputs TBD TBD High 1‐2 2Q11 None Excipio
Financial
Implement a cost recovery model
based on consumption
$ ‐ $ ‐ High 3 2Q11 Establish SLAs Excipio
Financial
Study cost reduction
opportunities
Service Desk TBD TBD High 3 2Q11
Operations
Review
Excipio
Financial
Study cost reduction
opportunities
GIS ‐ annual cost savings $ 200,000 $ 400,000 High 2 2Q11
Operations
Review
Financial ERP Replacement Out of scope Out of scope High In Process 2Q11‐2013 None
Financial
Procurement ‐ policy definition
and enforcement
$ ‐ $ ‐ High Ongoing 2Q11 None
Financial
Cost Reduction Identification
Study
Reprographics ‐ annual savings $ 200,000 $ 400,000 Medium 2 3Q11
Operations
Review
Excipio
Financial
Cost Reduction Identification
Study
Desktop Support ‐ annual savings $ 500,000 $ 100,000 Medium 3 4Q11 None Excipio
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Human Resources
Review ‐ Titles, Skills, and
Compensation
$ ‐ $ ‐ Medium Ongoing 2Q11 None
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Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Mainframe Operations Transition Strategy $ ‐ $ ‐ Low 2 4Q11 None
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Management
Implement Staff Performance
Reviws and Staff Goals
$ ‐ $ ‐ High 6‐12 2Q11‐4Q11 None
Management
Staff Productivity Ratios and
Operational Metrics
$ ‐ $ ‐ High 1 2Q11
Operations
Review
Management
Agency Alignment and
Governance Structure
Align IT focus/direction across all agencies,
work on "Big Brother" perception
$ ‐ $ ‐ High 1‐2 2Q11 None
Management Fill Strategic Roles
CSO, Enterprise Architect/CTO, BSAs,
Project Managers
$ ‐ $ (250,000) Medium 3‐12 3Q11‐1Q12 None
Management
Staff Training and Development
Plan
All straff receives training at least every
three years
$ (127,500) $ (255,000) Medium 12‐24 1Q12‐2013 None
Management Reporting Structure $ ‐ $ ‐ Medium 1 3Q11 None
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Network Operations
Implement Intrusion Prevention,
Detection, and Monitoring
Out of scope Out of scope High 3‐6 2Q11‐4Q11 None
External
Vendor
Network Operations
Telecom ‐ Complete VOIP
Migration
Out of scope Out of scope Low 12‐36 Ongoing None
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Other Electronic Records Management Depends on the ERP solution TBD TBD Medium TBD 2012 ERP Project Excipio
Other Procurement Automation Depends on the ERP solution TBD TBD Low TBD 2012 ERP Project
Other Mail Scanning Depends on the ERP solution Out of scope Out of scope Low TBD 2012 ERP Project
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Project Management
Portfolio Management
Methodology
Implement project ranking/prioritization
process and integration of BSAs
$ ‐ $ ‐ High 1 2Q11 None
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Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Server Operations Server Virtualization Strategy Need seed money for the research $ (50,000) $ (100,000) High 2‐4 2Q11
Storage/Backup
Strategy
Server Operations Server Consolidation & Refresh
Reduction in capital expenditures,
increased operating expenses
$ ‐ $ ‐ Medium 12‐18 4Q11‐2012 None
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Storage and Backup Operations Multi‐Tiered Storage Strategy Need seed money for the research $ (50,000) $ (100,000) High 2‐4 2Q11 None
Focus Area Task Example or Comment
Minimum
Potential
Impact
Maximum
Potential
Impact
Priority
Estimated
Duration
(months)
Timeline Predecessors
External
Resources
Storage and Backup Operations
Standardization and
Consolidation
Depends on the strategy TBD TBD Medium 12‐18 4Q11‐2012 None
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Data Sources
The following is a list of the individuals and staff, considered internal and external subject matter experts,
contributed the information contained in this document.
Individual Affiliation Individual Affiliation
Gail Turner & Staff MoA - ITD Mark Mew MoA - APD
John Roberts & Staff MoA - ITD Mark Hall MoA - AFD
Doina Nica & Staff MoA - ITD
John Falconer & Staff MoA - ITD
John Rockwell & Staff MoA - APD
Jeff Myers & Staff MoA - SWS Dave Hutchison Excipio Consulting
Randy Henderson & Staff MoA - HHS Jody Graham Excipio Consulting
Teresa Helleck & Staff MoA - AFD Kevin Geltz Excipio Consulting
Diane Ingle MoA - HHS Scott Berg Excipio Consulting
Steven Smith MoA - APD Rod Dozier Excipio Consulting
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Appendix A - Governance
To ensure that all parties have the common definition of governance, ITIL defines governance as:
“Ensuring that policies and strategy are actually implemented, and that required processes are
correctly followed. Governance includes defining roles and responsibilities, measuring and
reporting, and taking actions to resolve any issues identified.”
As shown in the chart below, governance itself is a process with specific levels of progress and its own
continuous improvement loop. To properly implement governance, an organization has to start at the
bottom and build upon the base. At any point in the process that an issue is identified, it may cause a
change in the policies and strategies that flow upward through the governance process.
Figure G-1: Governance Maturity
For any governance process to work effectively, it must have all of the key components identified above.
As with any process, an organization and its individuals must know the following:
 What is the objective we are trying to accomplish (policies and strategies)?
 What do we need to do or how will we get there (processes)?
 What is my authority and role in the strategy/process (roles & responsibilities)?
 How will we know if we are on the right track (metrics)?
For example, the importance of technical change management is to properly define, document, and
communicate technical environmental changes across an organization. MoA appears to have a
documented policy and procedures for change management, but does not seem to have a mechanism to
ensure the process is followed. Upon a recent onsite visit, a service outage was caused by a
configuration change to a device that was not properly documented or communicated.
 davido.extraxim@gmail.com