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Estimating the Costs of Distributed IT Services

Explore the importance of understanding and managing distributed IT spend. Learn key strategies to identify, analyze, and optimize costs in central and distributed IT environments. Discover essential insights to enhance transparency and efficiency in IT budgeting.

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Estimating the Costs of Distributed IT Services

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  1. Estimating the Costs of Distributed IT Services

  2. Why Understand Distributed IT Spend? Three Costs Centers: Central Information Technology Expenses Enterprise Technology Expenses Distributed Information Technology Expenses The Question: How Much is IT Costing the Campus CIO accountable for total IT budget CIO cannot manage what they cannot see Central IT while the frequent target is only part of the picture The Impact of Distributed IT Central IT required meet obligations incurred by acquisitions Duplicated services (cost, hardware, staff) Increased costs due to duplicate contracts, lack of negotiation

  3. What is Distributed IT Spend? Identify spend currently in Central IT Determine candidates for research for distributed spend Research computing E-learning Education Technology Services Analytics

  4. Poll: How far along are you? Thinking about measuring IT spend Making initial efforts at measuring IT spend Making good progress measuring IT spend Have enough data for what we need Fully tracking IT dollar spending

  5. What you will and won’t get from this presentation…

  6. What you won’t get: • SQL Code which you can take home, run, and produce the total cost of all IT at your institution • A DistributedIT Spending for Idiots guide because everyone’s budgets are different

  7. What you will get: • Reasons for investing in the research • Tips for places to look and partners in the search • Ways to manage the costs and develop transparency

  8. UW-Milwaukee’s Motivations

  9. Guilty about guessing on the EDUCAUSE Core Data Survey:“Please estimate distributed IT expenditures and staffing at your institution during the prior FY.” Role of CIO is broader than Director of IT Three most important management initiatives: data, data, data efficiency, efficiency, efficiency

  10. University of Maine System’s Motivation

  11. Bad News Budgets in the Forecast; • Compelling Need for Change • $66 Million structural gap by 2019 • Eight IT departments • System Office Central IT • Seven Campus IT Departments • Lots of centralization in place already

  12. The Charge from the Chancellor’s Office Act Like a System Reduce IT spending by $3.2 Million by FY16 Improve Service and Streamline System Central IT Budget: $12M Estimated UMS IT budget: $25-40M

  13. Actions to Meet the Charge • Single CIO—All IT Directors report to central CIO • Transition from eight silos to shared service delivery Identify Staff: Where are they? What do they do? Identify Spend: What are we buying? Who is buying it? Identify Services: What do we own and how many of them? Identify Contracts: Who are we doing business with under how many contracts?

  14. Digging the Data out of Your General Ledger or Purchasing System

  15. Identify & Sum Purchases with IT Commodity Codes 2330 Rental of DP Equip 2335 Lease of DP Equip 2600 DP Services-State & Univ Dept 2610 DP Services - Outside Source 3150 Software Purchases 3194 Computers and Related Peripherals - Not Capitalized 3151 Software Maintenance Payments 3791 Computer Exchange Repair Parts 3792 Campus Printing Purchased Paper 4620 Computer Equipment 4625 Computer Equip-Cap Lease 4630 Software Purchase Capitalized 4635 Software-Capital Lease

  16. Identify & Sum Purchases for Credit Card Merchants 4812 TELECOM EQUIPMENT 4816 COMPUTER NETWORK/INFORMATION S 4821 TELEGRAPH SERVICES 5045 WHOLESALE COMPUTERS/ 5732 ELECTRONICS STORES 5734 COMPUTER SOFTWARE STORES 5967 INBOUND TELESERVICES 7372 COMPUTER AND DATA PROCESS 7375 INFORMATION RETRIEVAL SERVICES 7379 COMPUTER REPAIR/MAIN 7622 ELECTRONIC REPAIR SHOPS

  17. Q: Have you found any tricks or techniques for querying your financial systems?

  18. Digging the Data out of Human Resources

  19. Identify IT Staff and Salaries • Network Specialist • Network Analyst • Network Engineer • Programmer/Analyst • Analyst/Programmer • Director of Information Systems • Director of Information Technology • Data Analyst • Developer • Technology Specialist • System Analyst • IT Supervisor • Director Computer Services

  20. Don’t forget all the different types of positions that may exist at your institution: Academic Staff Classified Permanent Classified Project Classified Limited Term Limited Term Student

  21. Understand Roles and Responsibilities to Determine if REALLY IT • Is the current job description accurate? • What % of work is IT and what % involves departmental subject matter? • Who is the backup for the employee if they are out? • What would you do if the employee left tomorrow? • What skills would you look for in a replacement? • How close to capacity is the employee working? • Where do you think the employee should report for greatest efficiency? • If the department, how do you see the employee interacting with US:IT?

  22. Q: Have you found any tricks or techniques for gathering HR salary and wage data for IT?

  23. Digging into Procurement Data

  24. Procurement Data • Spending Analytics using Spikes Cavell • Took all procurement data (Sciquest, AP, Pcard) and provides BI environment to drill into data by vendor codes • Vendor, amount, number of transactions, department • Helps identify procurement opportunities • Helps IT identify where spend is and for what as well as who is spending

  25. Q: Have you used data from a procurement system to analyze IT spend?

  26. Overall UW-Milwaukee IT Budget

  27. Partnership “Opportunities” Human Resources Financial Affairs Purchasing Internal Audit Institutional Research

  28. Q: Have you found any other key partners?

  29. Managing Distributed Spending Policy Relationships Partnerships, e.g., Procurement Governance

  30. Managing the Work Institutionally Why are you asking the questions? What is the desired outcome for your institution—how does it fit in institutional strategy. Recognize that your research may make someone feel uncomfortable.

  31. New ECAR Working Group ECAR: Cost of Distributed IT Working Group Work starts mid-October, complete Mid-April 2015 5-8 page white paper discussing barriers, strategies to overcome barriers, and definitions of what counts as IT expense Interested in group or becoming a reviewer: ECARWG@educause.edu More info at https://www.educause.edu/ecar/ecar-working-groups

  32. What else? What were you expecting to hear today that you didn’t? What experience do you have with distributed IT you can share with the audience today?

  33. Help Us Improve and Grow Thank you for participating in today’s session. We’re very interested in your feedback. Please take a minute to fill out the session evaluation found within the conference mobile app, or the online agenda. cindy@maine.edudavid@uwm.edu

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