IT’s expensive … Where does all the money go?
Thirty-three per cent of organisations are unable to calculate the financial cost of their IT systems, according to a report from research group Vanson Bourne. ComputerWeekly.com - April 2006
New Technology Support Expectations Compliance Training Availability Redundancy Best Practice BCP Reliability Security Policies Legacy Systems Data Explosion Facilities Management Governance
Reliability “In the Internet era, reliability is becoming something you have to build, not something you buy.That is hard work, and it requires intelligence, skills and budget.Reliability is not part of the basic package.” Joel Snyder – Network World Test Alliance 1/10/2000 “Reliability: Something you build, not buy”
Availability • Change in expectation – “Always On” • Instant access • From anywhere • Reduced maintenance windows
Redundancy One Box can not do everything Some failures are outside your control Fast recovery Increase in complexity (Clusters, SAN, Fibre Fabric, HSRP)
Never enough • Data Explosion • Increasing user base • Streaming media • Email • Wireless • Gadgets (Smart Phones, PDAs,…) • Databases • Search engines • IT support staff ;-)
Facilities management • Engine room • Cooling • Power – UPS & Generator • Racks & cable management • Fire prevention & detection • Physical security • Control & monitoring systems
Security and threat mitigation • Then • Anti-Virus • Now
Ongoing infrastructure costs • Cabling • Service provider • Service contracts • Firmware & software • Oopsies • Re-fresh
Legacy equipment support • Layer Cake Architecture • “Extended” Life-Cycles • Results: • Old Hardware • Legacy Operating Systems • Unsupported Applications • Aging Cabling Infrastructure • Yesterday's WAN link
Operational costs • Compliance • Compatibility – Yeah, right! • Visibility, logging and auditing • Documentation • Business enabling technology
Many companies see IT as a black box that generates significant costs. Few business managers know exactly what they are paying for and why their outlays keep rising. From the McKinsey QuarterlySpecial to CNET News.comAugust 23, 2005, 10:00 AM PDT
Training requirements • Project training • Staff training (new technologies) • Staff training (development) • Staff training (compulsory) • Technology trends awareness
Business alignment • Aligning the technology with the business • Building efficiencies into the solution • Introducing additional features not previously utilised • Enable the re-alignment of business processes and streamlining of service delivery mechanisms through IT
Growth & Business changes • Growth in the client base • Growth in services required • Growth in the uptake of services • Changes in business requirements & growth due to business driven projects • Growth in the physical network
Business Continuity • Identification of services – service catalogue • Identification of KPI’s • Identification of levels of downtime • Development of processes to be introduced at each level of downtime • Summary of what we can deliver within our recurrent budget
Special needs / Individual requirements • Divisions applications • Special events • Security of information • 69 Members all with different requirements • Electorate offices
Departmental commitments • Department as a customer – respond to 2 Directors, Executive Director, Chief Executive and Departmental Executive • Compliance with Departmental policies • Ministerials, briefings, please explains • Compulsory training
Health & Safety commitments • Lifting/moving of equipment • Crossing an arterial road • Disability awareness • Departmental requirements
Licensing & maintenance agreements • Licensing for Servers • Licensing for Desktops • Licensing for network management applications • Maintenance agreements with service providers, Novell, Microsoft, Cisco, HP, etc • Additional maintenance for out-of-date or aging equipment
Governance ..Who decides what? • Dept of Treasury and Finance (DTF) – Electorate Services • DTF – Treasurer • Attorney General’s Dept (AGD) – Parliamentary Counsel • DAIS • Parliament • Members of Parliament • ……..
Investment in our people • Training • Performance development • Team development • Knowledge assets and knowledge management
Cost vs. Value Often the true value of IT is not realised until the services are unavailable.