Realizing Cost Savings for the 4 th Utility: Technology

1. Realizing Cost Savings for the 4th Utility: Technology Katalyst Network Group www.katalystng.com 828-267-6450

2. About Katalyst Network Group • Incorporated in 2006 • Boutique systems integrator with over 10 years of industry expertise • 25 employees • Over 40 City, County, and Education clients in the Carolinas • Our business objective is to leverage IT solutions to: • Mitigate your risk • Improve your productivity • Save you money

3. Key Government Pressures • Increasing community access to people and resources • Improving communications and collaboration • Increasing resource productivity • Protecting privacy, information, and infrastructure • Keeping governments running The challenge today for governments is to keep pace with evolving service demands of their communities while controlling costs and dramatically improving internal efficiencies.

4. Key Education Pressures • Improving Communications and Collaboration • Support of Mobile Environment for Distance Learning • Ensure the security of the IT infrastructure • Provide advanced technology for future learning

5. Meeting Demands State and Local Governments seek to: Improve service effectiveness of employees Empower citizens with greater flexibility and access to services Improve public safety and security to allow citizens to live fear free and be secure Social Inclusion enables equality of access and input into the community Foster a pro business environment in the community that attracts businesses, new citizens, and tourists

6. Common Perception of IT Cost Center Complex Difficult to Align with Business Goals The 4th Utility- What is it? H20 ELEC GAS IT • The 4th Utility • Consolidates Cost Structures • Promotes Collaboration • Increases Productivity

7. What are my costs in IT today? • Telecommunications Costs • Internet & Data Network Costs • Server, Application, & Delivery Costs • Employee & Contractor Costs

8. Where are my telecom costs today? Public Switch Telephone Network: • Fax Lines • Centrex Lines • Long Distance Charges • PRI’s • Copper Phone Lines • Costs That Are in your Phone Bill

9. Where my phone system costs today? The Phone System: • Annual or Monthly Maintenance of hardware • Moves, Adds, and Changes of phones • Costs of replacement parts • Cost of internal employees to maintain • Lease costs associated with phone systems

10. Where are the costs for Internet today? Internet and Data Costs: • Internet Access • One location • Many Locations • Cost to connect various facilities • City Hall • County Administration • Public Safety • Police Department or Law Enforcement Facilities • Fire Department • Public Works • Recreation Areas • Cost to lay down fiber

11. Where are the costs in IT Communication? The Computer Network: • Annual or Monthly Maintenance of network hardware • Capital outlays on network equipment as needs expand • Costs of replacement parts • Lease costs associated with data network

12. Problem: Disparate Networks Cable PBX DSL Dial Voice Mail Voice Web E-Mail Data Circuits Phones IP Extranet Security ISDN Video Room-Based

13. The Internet Protocol (IP) Vision Internet Protocol or IP is a common communications platform that has been agreed upon by an international engineering standards body, the IEEE. This allows a “common language” to be spoken across all networks that were once stand-alone platforms.

14. Data Voice Secure Video Streaming Video Conferencing PA (Intercom) Video Monitoring Building Controls Safety One Network

15. Benefits of Implementing an IP Vision • Citizen-Centric Care • Increased Public Safety • Communications Everywhere • Collaboration & Education Tools • Mobility for Public Service Employees

16. What does your IT Environment Look Like? • You have applications • Utility Billings & Emergency Services Apps • Microsoft Apps • GIS Apps • You have servers • IBM • HP • Dell • You have a data center or server room where these servers and applications reside

17. What are Capital Costs in IT Infrastructure? • Costs on refreshing aging hardware • Costs on new software • Retrofitting real estate space • Network Infrastructure • Security

18. What are Operational Costs in IT Infrastructure? • Costs on maintenance for these servers • Costs with your application support and licensing • Operational costs associated with electricity, air handling and climate control • Employees or Contractors maintaining these systems

19. Virtualization – Doing more with less VMware vSphere Multiple Silos Email-(Exchange) Finance Applications File and Print Database Email-(Exchange) Finance Applications File and Print Dataabase Physical Server Physical Server Physical Server Physical Server Standardize on one business infrastructure virtualization platform for all your applications View your datacenter as a seamless pool of resources

20. The Power of Virtualization and Cost Savings • Server consolidation – reducing Capex for servers • Reduction in electrical costs • Reduction in real estate requirements • Simplify cooling • Increase overall performance of IT investment • Less components to keep maintenance on and less parts to break

21. I have already virtualized! Yes, but virtualization optimization can also save money by providing… • Disaster Recovery and Business Continuity • Consolidated Management for Virtual Environment • Virtual Desktop Interface • Move towards Cloud Computing

22. Cost of SLG Employee Breakdown • According to the Bureau of Labor Statistics, the annual cost of an employee for an employer is as follows:

23. What are the costs for IT Employees? • A Mid-level Network Administrator • Approximately $80,000 salary with a 34% up-fit for benefits - $107,200 annually • A Mid-level Systems Administrator • Approximately $80,000 salary with a 34% up-fit for benefits - $107,200 annually

24. How do save money on FTE’s? Staff augmentation solutions provided by Katalyst Network Group provide services that allow for: • Predictable costs • Robust flexibility on the resources assigned based on your organization’s current needs • Concise technology deliverables that includes: • Project based initiatives with defined objectives • Maintenance and optimization of current IT infrastructure investment

25. What Katalyst Can Offer Katalyst provides a “swiss-army knife” of expertise in South Carolina that includes but is not limited to: • LAN Switching & WAN Routing • Wireless Networks • Storage Architecture • VoIP Systems • Network Security • Microsoft Systems - Active Directory, Exchange, SharePoint • Virtualization

26. What are the Next Steps For An IT Cost Savings Plan? • Meeting with a consultant from Katalyst • Ask for an assessment of your IT Environment • Perform a detailed discovery of your current environment • Collaborate with the Katalyst team on cost saving opportunities that are tailored to your organization

27. Questions? ?