Georgia’s Technology Transformation

1. Georgia’s Technology Transformation Digital Summit November 21, 2008

2. Our Problems • GTA’s Response • Our Solution

3. Power Outages Plague State Data Center • Partial power outages led to several hours of unscheduled downtime • Data center crashed entirely when Hurricane Ivan hit Atlanta • Backup power systems failed • Critical systems down for 16 hours • Lost report warned officials to replace batteries • Repairs required more than 21 hours of scheduled downtime

4. Other Outages • Water from a holding tank leaked into a server room, computers down an entire day • Rodents gnawing on electrical cable caused power outage and loss of air conditioning, computers down for hours • Server room air conditioning failed • Temperature reaches 115 degrees • Hard drives and server permanently damaged • Batteries nearly explode

5. Other Outages • Server rooms for 7 agencies failed when state office building lost power • Accidental cable cut by a utility crew brought down systems used to manage the state’s tax collections • Outage lasted 11 hours • Affected e-mail, websites and even telephones

6. Security Breaches • Over 4 million notification letters have been issued since 2005 to citizens whose private information has been exposed from state computers • 81,842 records containing constituents’ private information wereexposed in 137 security incidents in FY 2008

7. GTA’s Response

8. Conducted Professional IT Assessment • First comprehensive assessment of the state’s IT needs leading to a solution • Retained TPI of Woodlands, Texas • Started with a review of all previous work • Commission for a New Georgia findings, April 2003 • Georgia Department of Audits and Accounts • Interviewed agency IT professionals, business managers • Gathered and assessed extensive amounts of data • Assessment contains operational, process and financial views

9. Scope of IT Assessment • Total Executive Branch annual IT spend: $617 million • Total annual expenditures in scope: $249 million • Data centers • Servers • Mainframes • End user computers (laptops and desktops) • Help desk services • Participating agencies • Juvenile Justice • Natural Resources • OPB • Revenue • State Accounting Office • Technical College System • Administrative Services • Community Health • Corrections • Driver Services • GBI • GTA • Human Resources

10. What We Found • Dedicated people, but thinly staffed • Aging infrastructure • Not meeting minimum standards • Absence of processes and skills • Duplicate spending with little measurement • Under funding of critical initiatives • Disaster recovery deficiencies • The capabilities within the state to fix the problem have deteriorated to such an extent that only an enterprise-wide initiative that draws services and skills from the market has the opportunity to make timely repairs. • − TPI Sourcing Assessment December 2007

11. Decision Summary • Self-funding solution • GTA manages consolidated IT infrastructure through External Service Providers • Competitively bid separate contracts for Infrastructure Services and Managed Network Services • Winning vendors make substantial investments • Continual investment program = current technology base • Reduce FTE’s from 1095 to about 170 • Transform GTA • Second data center • Enterprise disaster recovery • Server consolidation • Tools to manage and diagnose • Best practice operational management

12. Addressing Agency Business Needs • Agency involvement • RFP development • Evaluation of vendor responses • Agency teams were onsite at GTA three days each week • About 80 people served on various teams • Infrastructure Services • Managed Network Services • Local services • Finance • Data collection • Human resources • Communications

13. We Met Our Milestones • Developed requirements, RFQC, RFPs: January - March 2008 • Released RFQC: February 29 • Announced qualifying bidders: April 7 • Released RFPs: April 21 • Received Managed Network Services responses: June 12 • Received Infrastructure Services responses: June 26 • Announced intent to award Infrastructure Services and Managed Network Services contracts: November 7 • Transition to external service providers: November 2008 – April 1, 2009 (IS), and May 1, 2009 (MNS) • Technology transformation: November 2008 and beyond

14. Our Solution

15. Our Goals • Consolidate IT infrastructure • Secure state data • Stable operating environment • Well governed • Replace aging infrastructure • Robust disaster recovery • Broad industry standards

16. Summary: Infrastructure Services • Infrastructure Services with IBM for Mainframe, Servers, Print, Service Desk, End User Computing (Desktop), and Disaster Recovery • Benefits include: • Consolidation of state IT infrastructure • Centralized operational management model • Standardized service levels across the state • Technology tools needed to manage and diagnose • Services model including equipment refresh • Improved disaster recovery capabilities • Consistent perimeter information security solution • $873 million total contract value over 8 years; two, one-year options • 468 FTP’s in scope • 291 employees • 94 vacancies • 83 contractors • Offers to be extended to 291 employees

17. IBM Investments – Upfront and Ongoing • Transition and Transformation Investments ($62 million) • More efficient and robust security infrastructure • Wall-to-wall inventory and asset management system • Server and storage consolidation • Contact Center transformation to single Service Desk solution • Knowledge transfer and process documentation • Centralized and consistent billing and chargeback tools • Infrastructure Services Investments ($122 million) • End-user computing, server, and storage equipment refresh and standardization • Archive print facility capability assumed by service provider • Comprehensive and robust Disaster Recovery capability for all GAIT 2010 agencies, including annual testing and maintenance of plans

18. Summary: Managed Network Services • Managed Network Services with AT&T for Wide Area Network (WAN), Voice, and Local Area Network (LAN) services • Benefits include: • More robust and efficient network design • Centralized management model • Standardized service levels across the state • Services model including equipment refresh • Consistent perimeter information security solution • $346 million total contract value over 5 years; two, one-year options • 191 FTP’s in scope • 125 employees • 42 vacancies • 24 contractors • Offers to be extended to 33 employees

19. AT&T Investments – Upfront and Ongoing • Transition and Transformation Investments ($34 million) • More efficient and robust perimeter security infrastructure • Wall to wall inventory and asset management system • Conversion to VoIP where economically beneficial • Contact Center transformation to single solution where appropriate • Knowledge transfer and process documentation • Centralized and consistent billing and chargeback tools • Network Infrastructure Investments ($65 million) • Network equipment refresh over seven-year term • Includes new routers, switches, and voice equipment

20. GTA’s Transformation • Redefined roles, responsibilities throughout GTA • Eliminated functions and reduced overhead • Established Service Management Organization • Manage external service providers • Work with customer agencies to ensure business needs are met

21. Enterprise Management • Improved IT operations • 34% decline in telephone trouble tickets • Repair time up to 79% faster • Network and Internet availability exceed 99.93% • Focus on enterprise reporting • Issued Georgia’s first IT security report • New approach to policies, standards and guidelines • ITIL and industry best practices • Enhanced state portal • Rated No. 2 nationally

22. Georgia’s New IT Environment • Meeting business needs • Setting consistent standards • Measuring performance • Managing technology