The IT department of Orange County, Calif., has turned itself into a provider of IT-as-a-service for other county agencies over a two-year-plus period, and in the process vaulted itself into the top 10 percent of government agencies in terms of its ability to provide IT services.
Joel Manfredo (pictured), CTO for the County of Orange, outlined his organization's journey to the cloud during a presentation to government and business CIOs and IT administrators at the annual three-day end user symposium hosted by Nth Generation, a San Diego-based solution provider.
The County of Orange consists of 32 agencies and a $5.6 billion budget, said Manfredo, whose department provides IT services to those agencies from a 66,000 square foot data center.
These services include network and platform, telephony, data center operations, security, and business continuity infrastructure as well as business information services such as database, applications, IT processes, and quality assurance. County departments have the option of getting their services from any provider, which means his team has to compete with commercial service providers, he said.
However, unlike commercial cloud service providers, Manfredo said he has to set prices that reflect the fact that his organization is a government agency.
"At the start of the year, we have to set the rate for these services so that at the end of the year we don't make money or lose money," he said.
Setting the rates for the year has to take into account multiple considerations, Manfredo said. These include costs related to the server, networking, security, and other hardware and software; the costs of contracts for providing and maintaining WAN connectivity; data center facility costs; depreciation of the firewall, router, core switch, monitoring, and content filtering hard and software; and labor costs and other IT services.
"These are real costs," Manfredo said. "And they must be covered."
Manfredo's organization worked closely with Nth Generation’s Professional Consulting Services and Hewlett-Packard’s Converged Infrastructure Maturity Model (CIMM) to develop a comprehensive transformation plan, measuring progress with such metrics as reduced incident tickets, decreased SLA exceptions, and increased staff productivity.
Orange County's move to become a cloud services shop was a five-phase journey which began in April of 2009 and is still ongoing. The county decided it needed to provide managed services to its agencies while making its IT services more efficient, Manfredo said.
Prior to the start of the journey, the IT department was heavily siloed in terms of its services. Personnel found it difficult to assign responsibility for issues and were reluctant to change, he said.
At the same time, the department had to deal with a 27-percent cut in its budget over two years, he said.
The first phase consisted mainly of a variety of training and planning processes to lay the foundation for delivering IT as a service, including assessments of all personnel in the IT department to learn how to best work with them as the department changed.
Phase two, which started in October of 2009, focused on reorganizing the department's network and platform services, designing the services, and monthly MAP (management action plan) meetings to assess the progress, Manfredo said.
The IT department went through a process of looking at the kind of services its customers required, who could build those services, who would use them, and potential issues before it actually started building its service packages, he said. "This brings a level of efficiency into the build and transformation process that we wouldn't have had before," he said.
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