IT Direction State of North Carolina

1. IT DirectionState of North Carolina CIO Forum November 30, 2010

2. Game Changer – Social Networking • Facebook Debuts E-mail Service – “multimodal messaging” • There is more social networking happening over e-mail than on any social network • “Will this bring about improvements in contact management – could it become the single point of contact for reaching people, no matter where they are and what means of communication they have?”

3. Game Changer – Cloud Computing • Mainframe – shared computing, scalable, and ….. • Private Clouds, Community Clouds, Public Clouds, Hybrid Clouds • Security, Legal, Storage concerns • “Are we willing to challenge the obstacles so that we can meet our growing business needs?”

4. Game Changer – Infrastructure Study & Assessment • Independent, 3rd party vendor to perform assessment of IT infrastructure for State of NC and compare to market data • Recommendations may include external service providers, internal service providers, or a combination of both • “How do we make the best “build vs. buy” decisions for the State and avoid pitfalls other States have experienced?”

5. Timeline • July 2010 Memo from Governor • August 2010 Assessment vendors prequalified • Sept. 2010 RFP for assessment • Oct. 2010 Assessment vendor selected • Nov – Jan. Assessment • Jan. – Feb. Evaluate data, business cases • Feb – March Sourcing recommendations • April 2011 Phase 2, including RFP(s) for any outsourced services

6. Game Changer – Limited Funding • Budget deficit of $3.5B – July, 2011 • Budget reductions 5/10/15% scenarios • Ideas • Renegotiation of current contracts • Leverage buying power - ELA • Bid Maintenance • Tool review and consolidation • “What other ways has the IT Industry cut costs? Should IT be cut equally if it can provide efficiencies to the business?”

7. Enterprise trends • Large enterprises • Most are well into transformation via server virtualization • Some already moving to private cloud environment • Only 8% are using public cloud services • Small-medium enterprises • Less have virtualized their server environments or begun moving to private cloud environments • Many of these are using public cloud services, especially smaller enterprises

8. Cloud business • Virtualization is the key enabler for cloud computing • Cloud models, business opportunities • Putting competitive pressures on almost all enterprise strategies • Throttling capacity will be a new “must” • Hybrid cloud environment • Will be typical for many enterprises • Multiple cloud services augmenting and extending a private cloud environment

9. Things we might expect • Cloud roadmap providers • Virtualization services • Private cloud environment (on-premise + remote) • Integrated augmentation (compute, storage) • Secure access to public cloud services • Security-as-a-service • Managed remotely • Connected to enterprise networks and firewalls • Policy support and alignment

10. Journey to Private Cloud • 4 things you need • Standardized operating procedures • Fully automated deployment and management • Self-service access for business and IT users • Business units sharing the same infrastructure • Need to be business-centric (not IT-centric) • Virtualization maturity is a journey • Server, storage, application delivery, clients/VDI • Network, data center fabric

11. Additional notes • Private clouds don’t have to be built internally • Can use a hosted private cloud • Dynamic provisioning should tie directly to costs, billing, and self-service order adjustments • Starting with test/development environments can be helpful • Helps bring cloud-friendly approach to production • Need to deploy within hours (not days or weeks)

12. State of NC initiatives • Portal • Citizen access to services • Business process reengineering, eForms • Application modernization • Infrastructure/network services • Sourcing recommendations from assessment • Data centers • Private cloud, provisioning, user interface • Directory services, common authentication