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Reduce IT Costs and Complexity Exploring Solutions That Fit Your Needs

Reduce IT Costs and Complexity Exploring Solutions That Fit Your Needs. Elisabeth Vanderveldt VP Business Development. Agenda. Priorities IT Spending and TCO Operations – The Manual Reality Reducing Operational Costs The Microsoft Solution Case Studies and Demo Roadmap to Solution.

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Reduce IT Costs and Complexity Exploring Solutions That Fit Your Needs

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  1. Reduce IT Costs and Complexity Exploring Solutions That Fit Your Needs Elisabeth Vanderveldt VP Business Development

  2. Agenda • Priorities • IT Spending and TCO • Operations – The Manual Reality • Reducing Operational Costs • The Microsoft Solution • Case Studies and Demo • Roadmap to Solution

  3. Cost Risk Effort Priorities Security Availability Management Automation Operations Consolidation Automation Integration Management

  4. IT Spending • IT accounts for nearly 50%1 of all business equipment investment • Average IT spending increase in 2000 was 15-20%. Next 12 months, 3.3%2 • CIO’s Top 3 Goals3 • Reduce Costs and Complexity (TCO) • Promote Information Security • Support Innovation 1 IT Doesn’t Matter, Harvard Business Review, May 2003 2 CIO Magazine survey, May 2003 3 Gartner survey of 600 CIOs

  5. Expected Total IT Spend Growth During Bubble Desired Mix 15% CAGR Growth IT Spending – Opposing Forces $ Billions Actual IT Spend Source: McKinsey Source: Accenture

  6. Hardware and Software Downtime Day-to-DayOperations End User Operations Administration TCO: More Than Just Hardware and Software Gartner’s TCO Chart of Accounts Direct (Budgeted) Indirect (Unbudgeted) Operational Costs

  7. 70 60 50 40 30 20 10 Degree of Automation 0 Manual Scripts Automated Tools Staff Costs Downtime Training Software Hardware Security Mgmt 62% 14% 25% Network 16% 24% 60% 18% 24% Event 58% 56% Performance 17% 28% 54% Storage 17% 29% 53% 24% 23% Change/Config 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percent of Reponses Operations – The Manual RealityManual tasks drive costs Over 60% of TCO over a 5 year period driven by manual task costs Staff are spending their time on manual tasks instead of increasing value Source: IDC 2002, Microsoft Primary Quantitative Research. 400, 30 min phone surveys of IT professionals in data centers with 25 or more servers

  8. Methods For Increasing Operational Efficiency • Simplify Management • Reduced cost of managing servers • Reduced cost of managing clients • Reduced time to resolution • Unify Environment • Less training required • Less administration required • Easier development and deployment • Consolidate Infrastructure • Fewer systems to support • Fewer specialized skills required • Reduced hardware and software costs

  9. Distinct steps along journey to continuous improvement Management Lifecycle – Maturity Model Technology - Designed together Management Unix Migration Improve ROI NT 4 Migration Server Consolidation Reduce TCO Operational Efficiency – An Ongoing Process Best Practices - improving existing environment

  10. Unix Migration Improve ROI Management NT 4 Migration Server Consolidation Reduce TCO Increasing Operational Efficiency with Microsoft Do More with Less

  11. Microsoft StrategySoftware For The Agile Business • Integrated platform • Spans and connects the entire solution cycle • Solutions architecture and methods • The only way to reduce complexity and cost • Partner ecosystem and economics • Unrivaled breadth, specialization, and value

  12. Windows Server System

  13. Typical Canadian Customer and IOE“Reduce Costs and Increase Productivity” User Layer Security and Control with Active Directory Automated Refresh for increased productivity Development of Business Services Layer Integration with UNIX and Netware NT Application Migration and UNIX Application Migration with Visual Studio tools and practices Data Layer Windows Server 2003 and Active Directory for Security Server Consolidation Management Suite SMS/MOM OS consolidation 64 Bit Platform

  14. Manage Your Infrastructure With MicrosoftReduce TCO and deliver value to your business • Reduce TCO by increasing management process efficiency • Improve interoperability to reduce the cost of managing systems across platforms • Reduce the cost of deploying servers, applications and patches into the datacenter • Free up IT resources for the implementation of new business solutions through automation of manual tasks • Utilize proven methodologies and best practices • Microsoft Operations Framework (MOF) • Microsoft Solutions for Management (MSM)

  15. Release Approved Review SLA Review Release Review Operations Review Patterns And Practices: MOF Capacity Management Availability Management Financial Management Workforce Management Service Continuity Management Service Level Management Change Management Configuration Management Release Management Service Monitor & Control Security Administration Network Administration System Administration Job Scheduling Storage Management Print/Output Management Directory Services Administration Service Desk Incident Management Problem Management

  16. Ops Assessment Security Patch Mgt Service Monitoring New Application Deployment Business Desktop Deployment Windows Server Administration Windows Server Deployment Microsoft Solutions For Management • Integrated people, process and technology • Targeted customer scenarios • Engineered, tested and proven • Increases Business Value of IT • Reduces cost of operating Windows • Reduces cost of managing Window clients • Provides resource agility • Microsoft Operations Framework (MOF) • Management Technologies Available Offerings:

  17. Migrating From NT4.0Creating a Unified Environment • Best practices, examples and tools available for migration • Significantly increase efficiency of people, processes and infrastructure • Significantly reduce costs through consolidation on Windows 2003 • Reduce downtime over 50% • Reduce expensive file recovery 90% • Eliminate of 80% of reboots • IIS: 487% faster, File/Print: 64-148% faster, AD: 345% faster

  18. Customer Business challenges • With this model each district was responsible for finding qualified administrators – expensive and difficult • Domains and systems were configured in a variety of ways • Servers went unpatched and unmaintained • The system had become unstable and unmanageable • The KDE needed to improve manageability and security for the entire KETS environment • Wanted to retain the autonomy of the districts Kentucky Department of Education KDE maintains 1,400 schools in 176 districts. The Kentucky Education Technology System (KETS) was deployed over the last decade to provide equitable access to technology for all public school students and teachers, K-12. Over 700,000 users4400 Servers – 3500 NT4 Servers300 NT4 Domains in a very decentralized management model “The education business model needs to remain structured around educating Kentucky's children, not around building self-sustaining IT super-centers. We need to centralize the management of core network resources while preserving the autonomy required for local administration at the district level.” - Phil Coleman, Director of School Network Services at KDE

  19. Solution To address these challenges, KDE is upgrading the KETS domain infrastructure to Active Directory running under the Microsoft Windows Server 2003 operating system. They’ve designed the network with a separate domain for each district for autonomy and a root domain for centralized control of core network services. Significantly Improved Operational Efficiencyand reduced TCO Results • Reduction in operational costs and overall TCO • Reduction in complexity of operations • Stabilization of the KETS networking environment • Dramatic increase in overall network security “Schools need to focus their limited resources on educating children, and will be able to do so more effectively as we assume management of enterprise-wide IT services. …we’ll no longer need to spend 80 percent of our time fixing what gets broken.”- Phil Coleman, Director of School Network Services at KDE

  20. Customer Feedback “We see our migration as more of a business upgrade than a technical one. By eliminating complexity at the district level, we have enabled districts to reduce costs and increase their focus on education. Our team can shift to a proactive mode of operation, which will increase security and network stability yet decrease our workload. We’ll be able to focus on meeting new and emerging business requirements that will improve education instead of spending all our time keeping our existing environment running.” Phil ColemanDirector of School Network ServicesKDE

  21. Solution For Unix MigrationUnified Environment • Best practices and migration tools • Microsoft Solution for Unix Migration • Run Unix apps on Windows • Port Unix apps to Windows • Significantly lower TCO • Thriving and broad ecosystem • The lowest risk platform for the future

  22. Infrastructure ConsolidationReduced Operational Overhead • Reduce a vast array of operational costs • From administration to real-estate • Windows 2003 built for consolidation • Reduce File and Print servers • Reduce Messaging servers • Scale up Database servers with SQL • Collapse domain and reduce domain controllers with Active Directory • Reduce number of and improve scalability of Web servers

  23. Windows Server System

  24. Summary • IT Operations is a major contributor to TCO • Increasing operational efficiency reduces costs • Three key ways to increase operational efficiency • Simplify IT management • Unify your environment • Consolidate your infrastructure • Microsoft’s solution • Utilize Microsoft’s Solutions for Management • Migrate from NT4 and Unix to Windows 2003 • Consolidate systems and servers on Windows 2003 • To take the next step, analyze your environment and get engaged with a Microsoft Certified Partner or MCS • You will see, as many other companies have, a significant increase in operational efficiency

  25. Operational Efficiency Resources For more information about Operational Efficiency: www.microsoft.ca/technet/oe For more information about Conamex International www.conamex.com Management Solutions Information and to get the Windows Platform Manageability Kit: www.microsoft.com/management Consolidation Information and to get the Server Consolidation Kit: http://www.microsoft.com/canada/technet/oe/consolidate NT4 Migration Information – Business and Technical resources:www.microsoft.ca/technet/oe/migrate Migration Assessment: Elisabeth Vanderveldt evanderveldt@conamex.com (514) 381-1900

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