3/17/2014
Cost Effective IT Solutions
Larry Mattox
Government Solutions Specialist, VC3
Ryan Draughn
CIO, North Carolina League of Municipalities
VC3 Background
Extensive Local Government IT Experience
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Relationships with over 130 municipalities, counties, COGs
Focused on small and medium local government
Headquartered in Columbia with offices in Raleigh, NC and
Atlanta, GA
Over 20 years experience
Broad suite of technology solutions
85+ employees
Strategic Technology Partner
Municipal Association of South Carolina
Strategic Technology Partner
North Carolina League of
Municipalities
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Major Themes for Today
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Things you need to know
Your IT is more complex than you think
Who is making your municipality’s IT decisions?
What is your current support model?
Challenges when choosing the right IT plan
Technologies that save time and money
The Cloud
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Things You Need to Know
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Costly IT mistakes are made all the time
IT is not visual - hard to compare to other needs
Significant IT $$$ are wasted every year
It is hard to find someone to provide real IT guidance
Poor decisions – technology becomes outdated quickly
Key staff and Council need to be more savvy
Your IT is More Complex Than You Think
• Purchasing of PCs, servers, software licenses, network
equipment, etc.
• Equipment and/or monthly cost for data backup
• A real Disaster Recovery plan for IT
• IT support (proactive, reactive, projects, etc)
Who Is Making Your IT Decisions?
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Committee
Individual departments
IT staff member
Employee who has city job, but is your IT
Small, one-man shop
Larger, multifaceted company
Organization that provides
your software app
• Organization that provides
other service… and some IT
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What is Your Current IT Support Model?
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None
IT Staff Member
Employee who has city job, but is your IT
Small, one-man shop
Organization that provides your software app
Organization that provides other service… and some IT
Multi-faceted, full time IT company
Challenges when Choosing the Right IT Plan
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IT can be confusing. City knows Finance, HR, Police, Fire… not IT
No set standards for making a decision
How much do you budget, or pay?
What qualifications do you use?
Reactive vs. Proactive
Technologies That Save Time and Money
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Hosted desktop
Hosted telephony
Cloud backups and DR
Live helpdesk
Budget planning and IT roadmap
Web content management
Online Services
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3/17/2014
The
Cloud
Good, Bad and Ugly
of Cloud Computing
Ryan Draughn
CIO - NC League of Municipalities
Agenda
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What is the “cloud”?
Issues with moving to the cloud
Status at NCLM
The Good, Bad, and the Ugly
Overall Risks of Cloud Computing
Having a good contract
What in the world is
Cloud Computing?
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“Cloud Computing Definition”
Cloud computing, or something being in the cloud, is an expression used to describe a variety
of different types of computing concepts that involve a large number of computers connected
through a real-time communication network such as the Internet.
Cloud computing is a term without a commonly accepted
unequivocal scientific or technical definition
The popularity of the term can be attributed to its use in
marketing to sell hosted services in the sense of
application service provisioning that run client server
software on a remote location
Source - Cloud Computing. (2013). In Wikipedia. Retrieved October 10, 2013, from http://en.wikipedia.org/wiki/cloud_computing
Public Cloud Providers
Private Cloud: What is It?
Similar to “Cloud Computing”, but not exactly…
• Dissimilar - data is not housed with true
cloud service providers (Google, Amazon,
etc.) and NOT co-mingled with any other
organization’s data.
• Similar - connectivity via web browser
will grant access to all NCLM applications
from any device.
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Premised Based Environment
• Reoccurring software license fees
• Insufficient skill level and quantity of IT
staff
• Lacks adequate backups & security
• Slow restoral of critical business processes
after a disaster
• Expensive hardware – has to be constantly
maintained and has short life span
Hosted Environment
Enterprise Class Data Center
Why is moving to Cloud Computing challenging?
• MIS-Information: Business managers not getting GOOD information
• Marketing materials are gimmicky and misleading
• Business managers recognize benefit but don’t understand all the dynamics
• Most IT professionals see cloud services as extremely threatening to their
job and value they contribute to the organization
• Glitches by public cloud providers make many uneasy
• Cloud service providers are selling services; they aren't ones you should get
educated from
• Security concerns or paranoia?
• Organization may not be ready to handle the flexibility that cloud computing
provides. Will personnel policies need to change?
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Change in Culture and Change in Business Procedures
• Change from CAPEX model to OPEX financial model
• IT infrastructure no longer purchased as capital expenses and
depreciated over its lifecycle
• Instead, IT infrastructure paid as operating expense like a utility.
• Shift of some “controls” and “administration” of IT equipment
• Outsourced vs. dedicated IT staff to perform these duties
• Traditional IT duties shift from PC/network technicians to service
managers. Or said differently, IT will shift from being the “mechanics” to
the “process improvers” or “service innovators”.
What we have done at NCLM?
Background/Status at NCLM
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Moved to Private Cloud Offering in December ‘12
Utilize service from VC3 called Virtual Office Advantage (VOA)
Preceded by SA-Lite Managed Services contract in January ‘12
Virtualized staff’s desktop environment (approx. 80 seats)
Hosted Exchange, Anti-SPAM, AV, File/Print Services.
Moved application servers running insurance claims system
(iVOS), Policy mgmt. (Navrisk), document mgmt. (Laserfiche),
Finance (Navision), Association Mgmt. System (CRM).
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Background/Status at NCLM (Cont.)
• Moved SharePoint (Intranet and Internet)
• NCLM.org and other websites
• Outsource helpdesk operations (24x7x365)
• Minimal server/network hardware exists onsite
• Now running on 64-bit architecture
• Dual monitors for all thin client staff (around 80% of organization)
• Staff embraced change
• I’m still employed 
Background/Status at NCLM (Cont.)
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Provider supplying servers
Provider supplying Thin Client, monitor, keyboard and mouse
• Pay for what I need on a per desktop/month basis
• Little to no up-front capital cost
• Scale up/down much more quickly
(in many cases monthly)
Financial Component – Former Budget
Annual Software Cost Highlights
• Microsoft Enterprise Agreement
• SQL Server, Office, Exchange, SharePoint, CALs
• Symantec Anti-Virus
• MailFoundry Anti-Spam
• Network monitoring tools
• Ticketing system software
• Total: $33,818/annual
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Financial Component – Former Budget
Annual Datacenter Cost Highlights
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Storage Area Network (SAN)
VMWARE Licenses
ESX Server Environment
Server Licenses
Sonicwall NSA and SSL VPN
Total – $43,600/year
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Doesn’t include HVAC costs and RISK of ownership
Now I pay only for what I Use (Per emp./Per month)
Standard Applications
• Microsoft Office Standard Edition
• Word, Excel, PowerPoint, Outlook, OneNote…
• Microsoft Exchange Email
Storage
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Individual and shared
storage for all users
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Provider handles..
Backups
Nightly backups
30 days of Nightly Backups retention
Monthly and annual archives
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Security
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SPAM filtering
End-point Anti-Virus for devices
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And provides..
Support
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24x7 Service Desk
Server and Network
• Administration
• Patch Management
Remote and Onsite Support
Software application support
Patch management for
supported software
User Satisfaction tracking
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And provides..
Hardware
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Thin client, keyboard,
mouse and monitor
All-in-one unit
Reports and Documents
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IT Documentation
IT Performance Report
Best Practices and Policies Library
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The
Cloud
Shoot it to me straight
What’s
really the
deal?
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The Bad
• Change in culture: Adopting processes from outside firm
• Ticketing system, storage quotas, billed for usage, etc.
• Staff may lose individual preferences
• Windows Search/Desktop features
• Oversight of IT operations changed
• Managing dynamics between IT support staff
• May have to re-org, re-align or displace
• Loss of in-house technical skills over time
• IT under a microscope – Cloud commitment
• Printing
• Scanning
• Sound volume
• New procedures/change
The Ugly
• May have to abandon/re-work contracts or relationships with existing partners
• Cloud provider contract negotiations can be dicey
• Could upset existing IT staff – will they follow your lead?
• Equipment or provider loyalty will likely change
• Devote time to training
• Properly set expectations.
• Staff may not like what they hear
(but say it anyway)
• May need to dangle some carrots
The Good
• Organization sees IT in new positive light - Empowerment vs. Service based
• Focus on enhancements/projects instead of putting out fires
• CIO - Organizational leader versus IT leader
• Less servers – good exercise to condense VMs that were needed
• Disaster Recovery/COOP plan more flexible and easier to implement
• Enhances staff’s capabilities – Remote work environment, changing work/life balance,
generational workforce embraces
• Less pressure on BYOD
• Simplified budgeting
• Monthly cost per employee
• Elimination of hardware capital investment
• Monitoring of apps by team of engineers
• Example of Claims app improvement
• Proactive monitoring
• Patches/updates on OUR schedule
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Costs
• ROI calculations - factor in IT staff time
• Managed services produced substantial savings: Approximately 25-25%
• Private cloud service move more costly in year 1: Approximately 5% higher
• Software licenses had to be converted to TLP or required pro versions
• Estimated net – neutral savings in year two and beyond
• Hard to calculate efficiencies gained in IT NOT managing hardware but
offering process and business improvements
• Hard to calculate overall staff productivity gain by offering more flexible work
options, less downtime, faster application response time, new application
access options.
Contract Guidelines
Ownership of Data
All data provided by Client Company to Service Provider
pursuant to the Agreement is and shall remain the sole
property of Client Company and Client Company reserves all
right, title and interest (including all intellectual property
and proprietary rights) in and to such data.
Contract Guidelines – Cont.
Access to Data
At its sole discretion, Client Company retains the right to
access and retrieve data provided by Client Company that is
stored on Service Provider’s infrastructure. This includes
physical access to data as well as the right to request data
be retrieved by Client Company. The Client Company will
give Service Provider advanced notification of 15 days for
data access or retrieval.
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Contract Guidelines – Cont.
Data Disclosure to Third Parties
Service Provider will not receive, transmit or otherwise
deliver any data provided by Client Company outside of the
continental United States, nor will Service Provider transmit
or otherwise deliver any such data to any third party (except
for Client Company’s employees) without Client Company’s
prior written consent.
Contract Guidelines – Cont.
Disposition of Data Upon Agreement Termination
Upon termination of the Agreement, Service Provider shall, at the option of the
Client Company, either return all the data provided by Client Company and any
copies thereof to the Client Company, or destroy all the data provided by Client
Company and any copies thereof and certify to Client Company that it has done
so. Service Provider shall perform its obligations under this paragraph in
accordance with the selected option of Client Company within thirty (30) days
after Service Provider is notified of the option selected. If Client Company
elects that data provided by it be returned, then Service Provider shall make
available to Client Company for a complete and secure (i.e. encrypted and
appropriately authenticated) download file of Client Company’s data in its
native format. The Client Company may optionally request that data be
physically returned on hard drives or other physical media. Service Provider
warrants that upon request of Client Company, it will submit its data processing
facilities for an audit of the measurers described herein.
Contract Guidelines – Cont.
Data Breaches
Service Provider shall report, either orally or in writing, to Client Company any use or
disclosure of data provided by Client Company not authorized by the Agreement or in
writing by the Client Company, including any reasonable belief that an unauthorized
individual has accessed such data. Service Provider shall make the report to Client
Company immediately upon discovery of the unauthorized disclosure, but in no event
more than two (2) business days after Service Provider reasonably believes there has been
an unauthorized use or disclosure. Service Provider’s report shall identify: (I) the nature
of the unauthorized use or disclosure, (ii) the Client Company’s data used or disclosed, (iii)
who made the unauthorized use or received the unauthorized disclosure, (iv) what Service
Provider has done or shall do to mitigate any detrimental effect of the unauthorized use
or disclosure, and (v) what corrective action Service Provider has taken or shall take to
prevent future similar unauthorized use or disclosure. Service Provider shall provide such
documentation, including a written report, as reasonably requested by Client Customer.
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Contract Guidelines – Cont.
Data Storage Location
Service Provider agrees to receive, store and process all
data provided by Client Company only in the continental
United States.
Contract Guidelines – Cont.
Deposition in Litigation
Service Provider agrees to be deposed in litigation cases
where data administration processes are required. Any costs
incurred by service provider in time or resources is the
responsibility of the service provider.
The
Cloud
Discussion
Cloud
efforts/thoughts
from other
organizations?
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Thank You!
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