Shared Services for DR

1. Shared Services for DR Kent Kubie Rick Golden Tom Conroy Confidential

2. Agenda • Shared Services – The Saga Continues • Kent Kubie – Client Executive IBM • Shared services in action • Tom Conroy OCIO and Rick Golden Associate CIO University of Nebraska CSN Confidential

3. “World recession fears mount after finance crisis” Oct. 15, 2008 “Why do we need international cooperation? Because we have a globalized financial system…We’re all in this together, and need a shared solution.” Paul Krugman “Nearly 10,000 jobs are to be lost and up to 100 courts could close as budget cuts hit the public sector.” “EU Summit: Financial Crisis Dominates Talks…[EU] trying to get all 27 leaders to back a plan to shore up the banking sector agreed to Sunday by Britain and the 15 countries that use the euro.” “Oct. 15, 2008” Oct. 9, 2008 “States Beg Washington for Money as Large Shortfalls are Predicted” “Over 32 states anticipating budget shortfalls are asking Washington for help.” Oct. 8, 2008 Oct.. 15, 2008 “Leaders 'United in Commitment' on Crisis, G-8 Says” “Global crisis has profound Asia effect” Oct. 15, 2008 Oct. 16, 2008 Confidential

4. NASCIO State CIO's Identify Priorities for 2009 • Consolidation • Shared Services • Budget and Cost Control • Security • Electronic Records Management/Digital Preservation/e-Discovery • ERP Strategy • Green IT • Transparency • Health Information Technology • Governance Confidential

5. Shared Service Drivers Consistency Consolidation Collaboration Shared Costs Managed Costs Off shoring Out tasking Stress Core competence Enterprise projects Common Themes Any one or any combination are drivers Confidential

6. What is driving current IT trends? Top drivers of IT Cost savings/budget pressures Lack of resources/staff/capacity Lack of internal knowledge/expertise Improved quality of services Need to focus on core business activities/ competencies Speeding up the implementation of application across business units Software upgrade Outgrown existing infrastructure Recommendation from a consultant or systems integrator Results of internal cost analysis Hardware/system upgrade or refresh Economic issues/business atmosphere New regulation/requirements Internal process improvement initiative Merger or acquisition New management team Information from an outsourcing vendor Other reason, none of the above, not sure 0 10 20 30 40 50 60 Source : IDC, “Customer Outsourcing Directions: IT Prefers Integrated Outsourcing, BPO Prefers Multisourcing – But What About the Future”, Doc #204612, Dec. 2006 (% of respondents) Confidential

7. Shared Services ― the continuing saga Shared Services Support Common Concerns • Reduces the cost of IT • Better economies of scale • Better efficiencies • Consolidates investments in large scale projects • Provides access to services that may be out of reach and out of budget • But are necessary • Enables focus on core competencies • Providing customer service • Provides access to skills and best practices • Access to 24x7 operations • Sustainability of on-going operations • Facilitates technology upgrades • Increases flexibility to meet changing business demands • Inability to deliver projected benefits and business value • Does one solution fit all • Perception of different requirements • Higher costs than anticipated • Sustainability costs money • Cost not evenly distributed between client and provider • Giving up something • Control • Staff • Cost • Insufficient methods for measuring and monitoring Shared Service provider performance • Need for SLA’s • Is it Best in Class and how do I know • Is it based on a successful model Confidential

8. Tell me what you see about this house? Ref Ref Ref Ref Ref Ref Ref Ref Ref Ref Confidential

9. Do all of the rooms need a stove and a fridge? Ref Ref Ref Ref Ref Ref Ref Ref Ref Ref Confidential

10. Do all of the rooms need a stove and a fridge? Probably not. Core Functions Ref Study Sleep Eat Cook Relax Ref Ref Ref Ref Ref Ref Ref Ref Ref Confidential

11. Governor Goals of Nebraska State Government • To Be Effective • To Be Efficient • Provide Self Service Legislature Ties to Goals Office of CIO Shared Services a Logical Perspective Shared Services • Consolidation of effort • Off/Out Tasking • Collaborations • Consolidation of resources • Maximize asset utilization • Reduce redundancy • Cost Reductions • Purchase consolidation • Leverage vendors Benefactors • Departments and agencies • University/Higher Education • City/County Government • K-12 • Reduce costs • Provide better services • Enable citizens Common Assets, Services and Processes, $ On-going Confidential

12. Shared Services in Action Tom Conroy Rick Golden Confidential

13. UNO UNMC Omaha Current fiber State of NE DS 8100 UN ESS 800 UN Z9 BC SoN Z9 EC Current State DR/Continuity Phased Approach: Yr1) Build Storage, Yr2) Upgrade Mainframe, Yr3) Lay fiber to Omaha and install equipment. Final Step) Install CBU in Omaha Current state. Mirrored storage between 501 Building and Nebraska Hall. Data is protected but application servers are not. Facilities are relatively close to one another. Fiber Lincoln Confidential

14. Process • Current State was the first step • Close collaboration for 3+ years • Procurements with the end in mind • Live within our means • Share responsibilities • University Network • State Mainframe Server • DR drills prove it works as designed Confidential

15. DR Considerations • RPO • RTO • Mirror • Scope of the Disaster vs. Distance • Cost / Capability / Risk / Probability Confidential

16. State of NE DS 8100 State of NE DS 8100 UN ESS 800 UN ESS 800 z10 CBU UNO UNMC Representation of planned DR and Business Continuity Shared Services between University of Nebraska and State of Nebraska. This will provide a hardened secondary site for DR/Continuity for both SoN and UN. The design point being a redundant Capacity Backup Unit System z to back up either the State of Nebraska or University of Nebraska’s mainframes in the event of an outage. Offsite mirrored storage would be available so no data loss would occur. This plan to be complete by January 09. It also lays the ground work for other applications/systems to take advantage of this new capability Omaha Current fiber Fiber Segment A Bi-directional Fiber Segment B Bi-directional Current fiber Lincoln UN Z9 BC SoN Z9 EC Confidential

17. Shared DR Infrastructure • New capabilities with the IBM CBU • RPO < 1 minute • RTO < 4 hours • Server, Disk and Tape in place • 2009 Full Scale Exercise • Testing on our terms Confidential

18. Communications Trailer • Shared mobile facility • Voice and Data • State Designed • Versatile Confidential

19. Questions? Confidential