Welcome. Reducing Your IT Costs. What do you hope to learn today? Please take a moment to fill out a yellow card.

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1 Welcome Reducing Your IT Costs What do you hope to learn today? Please take a moment to fill out a yellow card. Our presenters will review the cards to ensure we cover the topics of interest. We will collect them before we get started. Thanks! Maury Weinstein President System Source x4319

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3 Collect Learn Today Cards What do you hope to learn today? Please take a moment to fill out a yellow card. Our presenters will review the cards to ensure we cover the topics of interest. We will collect them before we get started. Thanks!

4 Agenda Run, Grow and Transform IT Maturity Level Controlling Personnel Costs Smart Investing Measuring Progress

5 Assigning Responsibilities for Run, Grow and Transform

6 Outsource Run So You Can Grow & Transform Transform Run Grow

7 IT Maturity Level - Operations Technology Standards OML 1 OML 2 OML 3 OML 4 OML 5 Standards not defined without goal to standardize. Technology purchased without IT approval. Key standards partially developed with no timeframe for compliance. Standards largely developed without compliance. IT purchase approval sought but exceptions frequently made. Standards developed and organization driven towards standards. CxO level beginning to support standards. Technology standards completely defined, and documented with CxO support. Standards key part of every technology decision. Utilize system and service management tools Ad hoc use of point solution tools. Little or no automation, documentation or analysis. Reduced number of tools. Basic automation and documentation performed semiconsistently. Basic integrated tools. Workload analysis toward automation and problem reduction. Investment in integrated toolset. High SLA compliance and reporting. Basic manpower planning. Fully integrated systems with manpower planning. SLA and exception reporting. Automation enables lower cost staff. Document and train its operating processes Little or no formal documentation and rarely updated. Vendor technical or hands-on training, Some basic process documentation but not updated frequently. Each function uses own process documentation. Process to create a process in place with moderate compliance. Progress on systematic listing of process. Major process flow charted. Compliance to process creation and documentation is high. Refresh is formal and consistent. Virtually all processes are designed and fully documented before the process is put in place. External support model Reactive Time & Materials Recurring Scheduled Hours (Professional Affordable IT) Managed Services

8 Managed Services Definition: Remotely provided IT services at a fixed price with a service level agreement Today s replacement for desk side services and reactive support

9 Printer Management Much of the avoidable printer expense is: Help desk tickets to fix/re-supply Premium priced OEM toner Supplies leftover when printer no longer needed Supplies purchasing costs One client saves $6,840 annually using managed print service for 20 printers Free surveys estimate savings accurately

10 Controlling Personnel Costs Personnel scheduling and assignment Proactive Recruitment stress penalty

11 Personnel Scheduling Controlling Utilization Ticket entry data prompts you to: Study demand patterns Schedule personnel accordingly Move non-customer facing time off peak hours i.e. meetings or special projects Use part time personnel for peak periods

12 Personnel Scheduling Match Supply and Demand

13 Removing Costs from Resolution Path Requests from ticket system, phone or Assign to appropriate level Users receive ticket updates automatically Ticket held a day after close to ensure resolution Single question satisfaction survey sent Departments without or not using ticketing systems spend too much in triage or assign to wrong help desk level usually doubling ticket expense

14 Proactivity Drives Utilization I know which computer has a virus!

15 Proactivity Drives Cost Savings 35% Patch Score! Increased to 91% with attention

16 Recruitment Stress Penalty

17 Recruitment Stress Penalty

18 Smart Investing Set Recovery Time and Point Objectives first ROI before you buy Common sense purchasing Office 365 (SaaS) Amazon Web Services (IaaS and DaaS) Workstation replacement cycle study Gartner Hype Cycle Prioritize security purchases

19 Recovery Scenario: Single Server Multiple Servers Set Recovery Objectives First Recovery Point Objective (RPO) to last backup to last replication interval to last backup to last replication interval Recovery Time Objective (RTO) Short (hours) Virtual Machine backed up locally with Veeam Backup Exec to disk for VMDK Virtual Machine with vsphere Replication Veeam Replication SAN snapshot NA Virtual Machines with vsphere SRM Veeam Replication SAN snapshot RTO - Medium (less than 1 day) Backup Exec to disk for physical servers NA Backed up locally with Veeam Backup Exec to disk for VMDK vsphere Replication w/o SRM RTO - Long (multiple days) Tape backup Cloud backup NA Backup Exec to disk for physical servers Tape backup Cloud Backup Cloud Backup Individual Item to last backup Virtual Machine backed up with Veeam Enterprise Backup Exec with GRT and applicable agent to disk for virtual or physical servers NA Tape backup

20 Office 365 Exchange versus On-Premise ROI SAVINGS Initial Cloud Investment Year 1 Cloud Savings Year 2 Cloud Savings Year 3 Cloud Savings Year 4 Cloud Savings Year 5 Cloud Savings Year 6 Cloud Savings $ (11,386) $ 46,506 $ (360) $ (360) $ 46,506 $ (360) $ (36 Savings Through Year X $ 35,120 $ 34,760 $ 34,400 $ 80,906 $ 80,546 $ 80,186 ANALYSIS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Traditional On-Premise Deployment Hardware (Including Server Licensing) Exchange Server Hardware $ 8,934 $ 8,934 SharePoint Server Hardware $ 13,152 $ 13,152 Lync Server Hardware $ - $ - Licensing Exchange CALs $ 4,080 $ 4,080 SharePoint Standard CALs $ 5,700 $ 5,700 Lync CALs $ - $ - ecal $ - $ - Office Pro Plus $ - $ - Support Exchange User Support $ 5,004 $ 5,004 $ 5,004 $ 5,004 $ 5,004 $ 5,00 SharePoint User Support $ 5,004 $ 5,004 $ 5,004 $ 5,004 $ 5,004 $ 5,00 Full Suite Support $ - $ - $ - $ - $ - $ - Consulting and Migration Exchange Migration Costs $ 7,500 $ 7,500 SharePoint Migration Costs $ 7,500 $ 7,500 Office Migration Costs* Administration Exchange Administration $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,50 SharePoint Administration $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,50 Lync Administration $ - $ - $ - $ - $ - $ - Total $ 65,874 $ 19,008 $ 19,008 $ 65,874 $ 19,008 $ 19,008 Cloud Based Deployment Microsoft O365 Fees $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,76 O365 Enhanced User Support $ 10,008 $ 10,008 $ 10,008 $ 10,008 $ 10,008 $ 10,00 Enhanced Server Support $ 3,600 $ 3,600 $ 3,600 $ 3,600 $ 3,600 $ 3,60 One-time Migration Costs- Exchange $ 3,886 One-time Migration Costs- SharePoint $ 7,500 One-time Migration Costs- Lync $ - Total $ 19,368 $ 19,368 $ 19,368 $ 19,368 $ 19,368 $ 19,368 $ (11,386) 46,506 (360) (360) 46,506 (360) (36 User Count 60

21 Common Sense Purchasing Where s the bottleneck? Archive or automatically prune for free? continuity - 11 /user/month (with spam filter) Internet backup - $249 plus cell data Local, warm sites for virtualized servers from $357/month 6 VMs, 1TB with 1 backup and 7 rollback points

22 Common Sense Purchasing Track contract renewal and notice periods Licensing purchase consolidation Sleep versus normal savings is $25/year for 16 hours a day (plus HVAC savings)

23 Server Consolidation Server sprawl can occur when engineers add a server for each new application. Though this makes configuration and test easier preproduction, consolidation may yield long term cost savings for: Domain Controllers who needs extra Active Directory synchronization traffic anyway? SQL servers a properly scaled system can handle > couple databases Remote Desktop (RDS) or Citrix servers Web servers Stop when further reduction either: Lowers redundancy below your risk tolerance Impacts performance below user expectations

24 Office 365 Your Microsoft license expense should benchmark against a $5/user/month standard (<300 users) Office 365 Skype for Business might be the standard finally replacing business travel time/expense

25 AWS Costs Tend Lower Turn off when not using Scale larger/smaller easily Massive AWS scale Pay only for storage used

26 Controlling the Cost Dial I see a trend. How can I optimize?

27 Computer Replacement Cycle Intel study on end user computing replacement found optimal economic decision = 3.5 years Long server life is a mirage Baltimore County personal property tax

28 Gartner Hype Cycle for IT Infrastructure Availability and Performance Management, July 2015

29 Prioritize Security Purchases

30 Prioritize Security Purchases - HealthCare Backups 8.1 (High) - Ensure that each system is automatically backed up on at least a weekly basis, and more often for systems storing sensitive information. To help ensure the ability to rapidly restore a system from backup, the operating system, application software, and data on a machine should each be included in the overall backup procedure. These three components of a system do not have to be included in the same backup file or use the same backup software. There should be multiple backups over time, so that in the event of malware infection, restoration can be from a version that is believed to predate the original infection. All backup policies should be compliant with any regulatory or official requirements. (Quick Win) Skilled Staff 9.3 (High) - Implement an online security awareness program that (1) focuses only on the methods commonly used in intrusions that can be blocked through individual action, (2) is delivered in short online modules convenient for employees (3) is updated frequently (at least annually) to represent the latest attack techniques, (4) is mandated for completion by all employees at least annually, and (5) is reliably monitored for employee completion. (Quick Win) Online Security Awareness Program 17.1 (High) - Deploy approved hard drive encryption software to mobile devices and systems that hold sensitive data. (Quick Win)

31 Prioritize Security Purchases - HealthCare Limited Admin 12.1 (Medium) - Minimize administrative privileges and only use administrative accounts when they are required. Implement focused auditing on the use of administrative privileged functions and monitor for anomalous behavior. (Quick Win) Audit Logging 14.5 (Medium) - Have security personnel and/or system administrators run biweekly reports that identify anomalies in logs. They should then actively review the anomalies, documenting their findings. (Quick Win) Online Security Awareness Program 17.6 (Medium) - Conduct periodic scans of server machines using automated tools to determine whether sensitive data (i.e., personally identifiable information, health, credit card, and classified information) is present on the system in clear text. These tools, which search for patterns that indicate the presence of sensitive information, can help identify if a business or technical process is leaving behind or otherwise leaking sensitive information. (Visibility/Attribution) 17.9 (Medium) - Use network-based DLP solutions to monitor and control the flow of data within the network. Any anomalies that exceed the normal traffic patterns should be noted and appropriate action taken to address them. (Configuration/Hygiene)

32 Managing Multiple Vendors is Expensive

33 Measuring Progress Un-benchmarked processes always bring savings (especially the first time!) Metrics can be constructive or destructive

34 Benchmarking Uptime I m exceeding my SLA I m having trouble meeting my SLA

35 Increasing User Productivity Ticket Count Per User/Per Business Day total tickets per user/business day 3 per. Mov. Avg. (total tickets per user/business day)

36 Ticket Causes by Number of Tickets

37 Inexpensive Training ranked roughly by expense Microsoft Software Assurance Government Training Funds Quick Reference Cards E Learning $14 per app user or $159 per tech user at our MD County client Each course accessed saves $261-$2,836 versus live classroom training Recorded or Live Webinars Demonstrations Sessions $37/student for 60 Private Group Training $126/student for 24

38 Evaluations & Door Prizes THANK YOU!