Consolidation and outsourcing in an enterprise e-business transformation.

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2 Session id: Consolidation and outsourcing in an enterprise e-business transformation. Anthony Hill Chief Technology Officer Golden Gate University

3 Enterprise Context GGU is a private university with undergraduate and graduate programs in Business, Law, Technology, and Tax 5,500 students, 1,000 staff and faculty, 50,000 alumni IT department 29 FTE and 5 part-time Downtown San Francisco with 7 teaching locations in California and Seattle, WA GGU is underway with a major e-business transformation

4 Why an e-business transformation? New competitive pressures New market entrants for adult higher-education New expectations for services Doing business and learning online is now expected GGU was behind the technology curve Aging legacy systems with no e-business architecture and poor integration Heavy pressures to deliver new functionality, create a new customer experience, reduce cost of IT delivery over time

5 Transformation Challenges and goals Transform a legacy IT shop into a team capable of 24x7 e-business Required a consolidation of systems, and outsourcing critical, complex infrastructure Design an enterprise architecture and IT delivery model that would allow us to: Redesign and rebuild our online services (Web) Consolidate the data center (servers, OS, DB) Deploy a new, integrated ERP suite Improve IT security

6 Transformation: Constraints Willing to make capital investments, but Operating Cost must stay level. Cannot make it more expensive to run IT Every investment needed an offsetting saving Economies of scale and both technical and staffing leverage became paramount New capabilities & improved service levels were the initial motivators; cost savings pressure will increase over time Need to be positioned to drive out cost

7 Transformation How GGU is addressing the challenge Invested in a new enterprise architecture based on the Oracle 9i stack, Oracle 11i application suite, Linux, Dell, Novell Consolidation strategy for each layer of the enterprise architectural stack Realigned IT delivery to extend GGU s capabilities through key outsourcing partners Outsourced the most complex technology management chores

8 GGU Legacy Environment Operating systems: Solaris, Windows, MPE/ix, Netware, Mac OS, Digital Unix Hardware platforms: SUN (Sparc), Dell (Intel), HP 3000, Macintosh, DEC Alpha Databases: Oracle, SQL Server, Access, FoxPro, HP Image Development: Coldfusion, HTML, Javascript, UniBasic No common code, data, OS, management process, customer experience

9 File / Print / Messaging Web Architecture

10 Consolidation benefits achieved Leveraged technology investments No new core technologies are needed Faster deployment cycles Staffing leverage same skills deploy across the enterprise Fewer management consoles, monitoring systems, maintenance contracts, etc. Positioned to outsource

11 Outsourced enterprise model Walnut Creek Sacramento Monterey San Jose Seattle Los Angelas Remote User Internet - VPN GGU GGU Services Oracle Outsourcing Austin, TX Internet Self Service Apps ecollege Denver, CO Internet (VPN) Broadwing San Francisco

12 Outsourcing benefits New skills and experience Staffing continuity and risk management Project leverage Accomplish more in less time Faster innovation Time to market/value Graduated investment Value proposition unique to ISV-based outsourcers like Oracle Oracle applications example

13 Be aware of Not necessarily a cost reduction You are still responsible for systems integration some complexity can increase Coordination of your team, your systems integrator, and your outsourcer can be complex Some risks go up, some go down Trust and commitment Complex contracts, financial engineering, SLA s etc. Costs of switching or a bad partner decision can be enormous

14 Q & A Q U E S T I O N S A N S W E R S

15 Reminder please complete the OracleWorld online session survey Thank you.

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17 What consolidation allowed GGU to do #1 benefit has been skills leverage across IT and the enterprise Everyone focuses on 1 database, OS, and ERP suite User community all learn the same ERP suite and associated workflows and business rules #2 benefit has been consolidation of maintenance costs.

18 What outsourcing allowed GGU to do Oracle example ecollege example GGU still controls the user experience, project management, and operations coordination GGU acts as the integration point for data, user experience, project management, and operations coordination. Reduce focus on significant new technology management challenges

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