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Technology Budget Issues for ETAC

Technology Budget Issues for ETAC. Willie Pritchard Vice-Chancellor & Chief Technology Officer October 23, 2003 and November 19, 2003. Today’s Presentation. Total Cost of Ownership (TCO) Desktop hardware and software Networks and Telephones Measure E Information System (ERP).

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Technology Budget Issues for ETAC

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  1. Technology Budget Issuesfor ETAC Willie Pritchard Vice-Chancellor & Chief Technology Officer October 23, 2003 and November 19, 2003

  2. Today’s Presentation • Total Cost of Ownership (TCO) • Desktop hardware and software • Networks and Telephones • Measure E • Information System (ERP)

  3. Total Cost of Ownership (TCO) • What is TCO? • Recognition that the cost of technology is more than just the initial purchase price • Accounts for all costs of technology • Acquisition • Maintenance • Software • Training/Support • Overhead • A budget plan for technology acquisition and maintenance that levels costs over time

  4. Current Inventory Desktop Computers Network Telephone System

  5. Desktop Computers • District has over 4,000 desktop computers • These computers are purchased by the colleges or CS, not by ETS • Range in age from new to five years old or older • Critical that we maintain relatively current systems, especially in our instructional labs and classes • TCO plan hadbeen for a three-year replacement cycle; now being pushed out to four or more years

  6. Desktop Computers • Challenges • Ideal plan would be to spread acquisition costs evenly over time (TCO) • Aging of our desktop inventory • Nearly half of our inventory is over 3 years old • Moving toward older and older computers • Next year nearly 2/3 will be over 3 years old

  7. Implications • More repairs; will take longer to repair • Increased costs for maintenance • Less efficient work force • At some point forced to upgrade (driven by software requirements) • Less competitive • Possible negative enrollment impact

  8. Network, Systems & Telphones • Network maintenance costs ~ $230,000 per year • Information system hardware and software annual maintenance costs of ~ $291,000 • Telephone system costs ~ $808,000/year • Total cost – ~ $1,300,000/year

  9. Measure E Equipment Needs Staffing

  10. Measure E Equipment • Three technology components: • New desktop computers • Network and phone equipment • Classroom/lab technology

  11. Measure E Equipment Costs(By Type) * Includes only computer and peripheral equipment, not furniture and traditional lab equipment (microscopes, scales, glassware, etc.)

  12. Measure E Equipment Costs(By Year)

  13. Measure E Staffing Needs • Technical support staffing is needed as new buildings come on online

  14. State of Information System(ERP) The Obvious Need Options Replacement

  15. Current Information System (ERP) • Doesn’t support our users’ current needs • Poor functionality / “User unfriendly” • Flat file data base technology • Antiquated screen interface or home-grown query tool (MAUI) that is staff-intensive to support • FR, HR, and SIS data are not integrated • Can’t use it to do direct analysis of student learning • Opportunity cost • Some points of vulnerability, but NOT in immediate danger of catastrophic crash

  16. What are our options? • Bring additional functionality to current system • Without overtaxing system • While keeping options open for new ERP • Completely replace current system

  17. Add Functionality • Use industry-accepted open (non-proprietary)standards that will work with any new ERP system • Relational database (SQL, Oracle) • HTML, Java, XML, LDAP • Investment for today & future, with lower costs • Examples of added functionality • New registration system (TouchNet) – DONE • CATS/IEP/eTAG/FIPSE (Grant) – In process • Portal environment (Grant) – Just awarded ($1,087,450 over five years) • Data Warehouse and Query Tool • Office Automation/Forms Processing

  18. Replacement • Multiple Year Project (3-5 years) • Involves many district resources • Personnel • Budget • Cost ~ $10,000,000

  19. ERP Cost Itemization (Estimate)

  20. ERP Cost Itemization (2nd Estimate)

  21. Notes • Any industry open standard application we add now to our system will result in an almost 1 to 1 reduction in cost of new ERP • Migration to new ERP is very staff-intensive (line staff & tech staff) • Benefits of migration won’t be realized for some time after initial implementation

  22. Summary of Anticipated Costs(over next 4-5 years) • Desktop technology – $1.9M - $2.9M • Measure E technology - ~$5.9M • Desktop computers – ~$2M • Network and telephone system – ~$1.9M • Classroom technology – ~$2.1M • New information system (ERP) – ≤$10M • Total ~$18M - $19M

  23. ETS A & B Budget(over the years)

  24. Declining ETS Budget

  25. Budget Changes due to… • Layoffs (21 positions lost to cuts, contracts & grants ending, or to reorganization) • Cuts to B budget • Savings by renegotiating some contracts • Moved some expenses from B to A budget • Contracts for Alcatel, SCT, Data Center operations • Software site licenses

  26. Questions?

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