# Presentation: 226309

## IT Quarterly Forum
IT Infrastructure Line of Business
June 5th, 2008

Evolution and Status of the ITILOB 

Eric Won, ITILOB Program Manager
General Services Administration

**IT Infrastructure Line of Business**
**June 5****th****, 2008**
**Evolution and Status of the ITILOB **
- Eric Won, ITILOB Program Manager
**General Services Administration**

- For more accessible information please see notes pages

## President’s Management Agenda

**1****st**** Priority: Make Government citizen-centered,**** **_**results oriented and market based.**_
**5 Key Government-wide Initiatives**:
- Strategic Management of Human Capital
- Competitive Sourcing
- Improved Financial performance
_**Expanded Electronic Government**_
- Budget and Performance Integration

*PMA Reform Principles outlined July 10, 2002, for a citizen-centered, results-oriented, and market-based Government*

**Notes:**
In March 2006, the Office of Management and Budget (OMB) identified the Infrastructure Optimization Initiative (IOI) as an E-Gov Line of Business (LoB)... Later Renamed ITILOB
OMB selected infrastructure optimization after preliminary analyses demonstrated that consolidation and optimization (C&O) of Information Technology (IT) infrastructure represented a significant opportunity to realize cost savings through a coordinated approach [1].
The General Services Administration (GSA) was selected as the managing partner for this LoB. A government-wide IOI Task Force was created to develop “Common Solutions” to realize the goals and objectives of the LoB. The Task Force solicited information about potential solutions from the public and private sector through a formal Request for Information (RFI)[2]. 
 [1] Reference the March 3, 2006 memorandum for the President’s Management Council from Clay Johnson, Deputy Director for Management, OMB with the subject, “Launch of IT Infrastructure Optimization, Geospatial, and Budget Formulation and Execution Lines of Business and Task Force Formations”
This slide has a graphic of President GW Bush speaking.

## ITILOB Rationale

**Federal spending for infrastructure** as a percent of total IT **appeared to be higher than industry spending**
- While almost every Department/Agency had some infrastructure improvement initiatives focused on parts of the organization or parts of the infrastructure, there was **no systematic, comprehensive infrastructure optimization process** across the Government
- We **could not accurately assess the current state of infrastructure cost efficiency** across the Government
- Optimization **experience from industry, states, and selected Agencies suggested there were potential savings** while retaining or increasing service levels; and
- OMB determined that the government’s commodity **IT infrastructure costs could be significantly reduced or avoided through a common, government-wide approach**

## ITILOB Vision & Goals*

***infrastructure enabling core agency missions and ***
***government-wide customer-centric services***

**ITILOB Vision & Goals***

| Goal:  Institutionalize and lead Government-wide IT practices |  |
| --- | --- |
|   | Optimize technology infrastructure support for core agency missions and the delivery of government-wide customer-centric service |
|   | Operate in a manner that is secure, standardized, interoperable, extensible, resilient, adaptive, and cost-effective |
|   | Encourage collaboration and resource sharing across the Federal government through a coherent technology strategy |

- *From ITI LoB _Common Solutions Recommendation_ and ITILOB Exhibit 300 Business Case, FY07 & FY08

**Notes:**
VISION (direct quote from “Common Solutions”
The Vision Value Proposition:
Greater sustainability of the ITI Optimization program through administration-independent branding and emphasis on leadership development.
Better positioning for achieving the goals of IT infrastructure optimization by switching the focus from benchmarking to organizational learning and collaboration.
Self-directed IT infrastructure optimization CoPs are success stories themselves.

B. GOAL - Examples of infrastructure optimization:
Consolidated National Help Desk
State-of-the-art Data Center
State-of-the-art Disaster Recovery Services
Modernization Lifecycle
Modernized mainframes and its operating systems
Server virtualization
Roadmap toward an open systems environment
Desktop/Notebook Technology refresh
Replacement of desktops and notebooks on a 48-month refresh cycle 
Upgrading software to most current industry standards
Centralized WAN / LAN administration
Robust Security 
Service Level Agreements
DEPARTMENT/AGENCIES that APPROVED THIS BUSINESS CASE).

## ITILOB Governance Structure

**Agency Advisory ****Group (AAG)**

**Governance Working ****Group (GWG)**

**Acquisition Strategy  ****Working Group (ASWG)**

**Technical Working **
**Group (TWG)**

**Change Control****Board (CCB)**

**Telecom.**
**Systems and **
**Support (TSS)**

**Mainframes and**
**Servers **
**Systems and **
**Support (MSSS)**

**5-Year****Planning****and****Reporting**

**Policy and****Strategic****Planning**

**Executive Steering ****Committee (ESC)**

**Program Performance**
**Measurement Office ****(PPMO)**

**End-User **
**Systems and **
**Support (EUSS)**

## ITILOB Scope*

| 3 Areas of IT Infrastructure |  |
| --- | --- |
| End User Systems & Support | Desktop 
Peripherals
Laptop
Handheld Computing Devices
Personnel – end user support
Facilities |
| Mainframes/Servers Systems & Support | All hardware and software mainframe and mid-range computers (servers) grouped by platform (UNIX, Wintel, LINUX, etc.), including system management and utility software |
| Telecommunications Systems & Support | Wide area networks
Metropolitan area (and campus area) networks
Local area networks
Internet access
Remote access services
Local and long distance calling
Videoconferencing |

- **From ITI LoB _Common Solutions Recommendation_ and ITILOB Exhibit 300 Business Case, FY07 & FY08

**Notes:**
The ESC agreed to consolidate the scope of the ITI LoB from 5 areas to 3 areas 
ITI LoB is a service not just a commodity
The scope provides structure for agencies to develop and exercise an optimization strategy. 
Telecommunications systems and support include TIC and IPv6

## ITILOB Common Solutions Strategy

- A standard metric for IT Optimization across government developed by Program Performance Measurement Office  (PPMO)
- Development and use of service levels and cost effectiveness measurements
- Agency selection and use of appropriate aggregation approaches and best practices appropriate to their requirements and management
- A goal of achieving industry average services and cost efficiency within 5 years

***IOI Common Solution: a ******market-place driven approach****** ***
***to outcome based performance for IT optimization***

**Notes:**
Twenty- three Departments/agencies have ratified a "Common Solution" approach and are participating in government-wide initiatives to optimize the Federal government's information technology infrastructure. 

## ITILOB Participating Agencies

- DHS
- DOC
- DOD
- DOE
- DOeD
- DOI
- DOJ
- DOL
- DOT
- EPA
- GSA
- HHS

- HUD
- NASA
- OPM
- NSF
- SBA
- SSA
- State
- Treasury
- USAID
- USDA
- VA
- Small Agency CIO Council

## ITILOB Common Solutions Approach

- This allows a department/agency to make reasoned and analytically directed choices among the common solution tools as well as which infrastructure areas to prioritize to achieve the goals established.

***The ITI LoB approach achieves a strong degree of ******goal clarity****** and ******accountability****** for the results.***

***Agencies determine own optimization strategies*** – may use: Shared Service Centers, ITI Library, Capability Maturity Model, SmartBuy, Networx, etc
***ITI LoB will assist agencies to share best practices.***

**Notes:**
This slide has a graph that shows cost efficiency on vertical axis and the service level on the horizontal one. The goal is or all agencies to be n the quadrant with high cost efficiency and many optimization strategies

## ITILOB Common Solutions Approach

*How to achieve the common solution:*

_**Business Process Solutions Menu**_**:**
**Centralize      Consolidate**
**Aggregate      Automate**
**Standardize    Leverage           Rationalize**
***Consolidation is just one option for optimization***

**  **_**Sourcing Strategy Options**_
-    **Outsource to private managed **
**       ****service provider**
**    ****Outsource to Government **
**       ****service provider**
**    ****Define and use own internal  ****	****standards**

***Agencies retain decision making authority for cost-effective investment, ***
***using the common solution set, to achieve mandated results***

**Major Solution Set Components:**
-   **Metric for each infrastructure area for government wide use**
**  ****Government-wide Program Performance Measurement Office (PPMO)**
**  ****Business process solutions **
**  ****Potential future fee-for-service model**

- ----------------------------Best Practices-----------------------------
- Technology	  Acquisitions	  Business Practices
**SmartBuy**

**SAM, ITIL**

**Standards**

**Notes:**
 Deploy standardized platforms and applications to enable stronger cyber security
 Enhance service delivery while reducing costs
 Increase efficiency through a simplified, seamless operating environment 
 Establish central knowledge base for faster problem resolution
 Improve economies of scale in operations through department-wide standards enabling greater purchasing power

## ITILOB Benchmarking Study

**Optimization requires investments**
- Desktop and help desk tools
- Standardization of desktop management processes
- Establish a common desktop environment
**Closer monitoring and governance** of outsourcing
**Centralization** where possible
- Establish **continuous improvement** program
**Measuring Progress** over time

**ITILOB Benchmarking Study**

**Significant cost savings can be generated through consolidation and standardization**

**Observations**

**Cautions**

- The Lowest Cost Provider may not be optimal for meeting an agency’s mission and performance requirements
- Avoid static, long-term contracts since agencies’ requirements evolve
- Avoid independent, autonomous IT organizations

_**Third Factor**_ – ***Risk ***-*** ***An example of a program where performance requirements and cost may be higher in order to lower
- risk would be our nation’s critical infrastructure.

_**Results**_ - the cost and performance of Federal agencies IT infrastructures are comparable to peers in the private sector.

- Complete **benchmarking studies for both telecommunications and data centers**.

_**Next Steps**_

**Notes:**
This slide shows a graphic with images that represent telecommunications, IT help desk, data/voice networkds, Desktop seat management, and data centers. 

## End User Baseline Study: Initial View 

**Aggregate Cost per User (Client and Peripherals Support Plus IT Help Desk) in Relation to Normalized Composite Service Level**

**Notes:**
The agencies represented in the ESC have adopted the report GSA (Gartner) Report from 2/1/2008:
	IT Infrastructure (ITI) Line of Business (LoB), Comprehensive End User Systems and Support Infrastructure Report
Only the larger agencies depicted
This page shows an image of a graph with Efficiency Distribution Industry Midpoint Overall cost per user on the vertical axis and normalized service levels on the horizontal axis. The agencies are listed where their data falls. 

## ITI LoB FY 08 High Level Timeline

**MOU Distributed****Oct 07**

***Obtain Funding***

***Monitor and Communicate PMO Progress/Status***

**Funding Secured **

***Prepare End User Baseline ***

***Release****** MOU***

***Develop Mainframes & Servers Metrics & Baseline***

***Develop Telecommunications Metrics & Baseline***

**Final EUSS Report **

**Final Mainframes & ****Servers Report**

**Five-Year Plan Guidance Issued**

**Government-wide Infrastructure Optimization**
**Planning Report **

**Agency ****Five-Year Plans Received**

**Resource Library Launched**

**End User Metrics Refinement**

**Agency Annual Performance Report ****Mar 09**

**Website Redesign and Resource Library Update**

**Final Telecommunications Report**

**Agency Five-Year Plans (Update)**

**IT Mgmt. Tool Inventory Validation**

**Notes:**
Discuss:
5-Year Plan and relationship to other government-wide initiatives (TIC, FDCC, Green IT, IPv6, HSPD-12, FEA, etc)
This is the original FY 08 high level timeline  with milestones attached. It runs from November 07-October 08.

## “Mainframes and Servers” and “Telecom” Baseline Metrics Project Schedule

**Data Collection POC Kickoff – April 7**
**Scoping Sessions – April 8-21**
**Data Collection Phase **– May 5 through June 30 (8 Weeks)
**Data Collection Training Workshops – May 5-8**
- Department / Agency Data Collection – May 9-30
- Initial Data Submission – May 23
- Complete Data Submission – May 30
- Data Validation/Analysis by Gartner – June 1-27
- Includes Department/Agency data correction, review of validation comparisons with agencies
- Data Freeze – All Departments / Agencies by June 30
**Department / Agency Report Creation **– July 1-14
- Agency outbriefing calls – July 14 – 21
**Government-wide Report **– Draft August 8
**Comprehensive Report** – Draft August 22

**Notes:**
These are the upcoming deadlines.
We are not only asking the CIO’s for deliverables but we are also asking for their support...

What we also need from the CIOs ~ 
Continuing support as we complete the first year of establishing common performance metrics 
Continuing to send their best and brightest to the Agency Advisory Group (senior IT managers from across the government) to ensure that government-wide IT infrasructure strategies reflect the diverse needs of the Federal government. 
Keep the other senior managers in their agencies aware of the work of the infrastructure LOB, including their CAOs and CFOs, both of who will be key assets in optimization 
Make sure information flows throughout their agencies/Departments about optimization, since most of the work will be accomplished at the bureau, rather than Departmental, level. 

## Why are We Here Today?

***It is expected that a coordinated, Government-wide effort will result in improved cross-agency collaboration, more effective IT infrastructure management processes, and standardized architectures  that are consistent with the Federal Enterprise Architecture (FEA)***

**Key to achieving these results are:**
**Communities of Practice (COPs). **
**Five-Year Optimization Plans.**
**Segment Architecture.**** **

**This is not only a CIO Challenge, but it also extends to budget officers, acquisition officers, CFO, business owners, etc.**

**Notes:**
Communities of Practice... Reference to Eric’s Presentation
5-Year Optimization Plans... Reference to Eric’s Presentation
Segment Architecture... Reference to Kshemendra’s presentation
Not only a CIO challenge, but it also extends to Budget officers, Acquisition Officers, CFO, Business Owners, etc... Reference to SmartBuy Discussion