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8/11/2019 Estimating the Costs of Distributed IT Services (242321782)
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Estimating the Costs of Distributed IT ServicesDavid Stack
Deputy CIO, University of Wisconsin—
Milwaukee
Cindy Mitchell Associate CIO, University of
Maine System
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Why Understand Distributed IT Spend?
• Three Costs Centers:• Central Information Technology Expenses
• Enterprise Technology Expenses
• Distributed Information Technology Expenses
• The Question: How Much is IT Costing the Campus
• CIO accountable for total IT budget
• CIO cannot manage what they cannot see
• Central IT while the frequent target is only part of the picture
• The Impact of Distributed IT
• Central IT required meet obligations incurred by acquisitions
• Duplicated services (cost, hardware, staff)
• Increased costs due to duplicate contracts, lack of negotiation
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What is Distributed IT Spend?
• Identify spend currently in Central IT
• Determine candidates for research for
distributed spend• Research computing
• E-learning
• Education Technology Services• Analytics
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Poll: How far along are you?
1. Thinking about measuring IT spend
2. Making initial efforts at measuring IT spend
3. Making good progress measuring IT spend
4. Have enough data for what we need
5. Fully tracking IT dollar spending
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What you will and won’t get from thispresentation…
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What you won’t get:
• SQL Code which you can take home, run, andproduce the total cost of all IT at your institution
• A Distributed IT Spending for Idiots guidebecause everyone’s budgets are different
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What you will get:
• Reasons for investing in the research
• Tips for places to look and partners in the search
• Ways to manage the costs and developtransparency
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UW-Milwaukee’s Motivations
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1. Guilty about guessing on the EDUCAUSE
Core Data Survey:
“Please estimate distributed IT expenditures and
staffing at your institution during the prior FY .”
2. Role of CIO is broader than Director of IT
3. Three most important management
initiatives:• data, data, data
• efficiency, efficiency, efficiency
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University of Maine System’s Motivation
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Bad News Budgets in the Forecast;
Compelling Need for Change
• $66 Million structural gap by 2019
• Eight IT departments
• System Office Central IT
• Seven Campus IT Departments
• Lots of centralization in place already
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System Central IT Budget: $12M Estimated UMS IT budget: $25-40M
Act Like a System
Reduce IT spending by $3.2 Million by FY16Improve Service and Streamline
The Charge from the Chancellor’s Office
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• Single CIO— All IT Directors report to central CIO• Transition from eight silos to shared service delivery
Identify Staff: Where
are they? What do theydo?
Identify Spend: What
are we buying? Who isbuying it?
Identify Services: What do
we own and how many ofthem?
Identify Contracts: Who are
we doing business withunder how manycontracts?
Actions to Meet the Charge
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Digging the Data out of Your GeneralLedger or Purchasing System
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Identify & Sum Purchases with IT Commodity Codes
2330 Rental of DP Equip2335 Lease of DP Equip
2600 DP Services-State & Univ Dept
2610 DP Services - Outside Source
3150 Software Purchases
3194 Computers and Related Peripherals - Not Capitalized
3151 Software Maintenance Payments
3791 Computer Exchange Repair Parts
3792 Campus Printing Purchased Paper
4620 Computer Equipment4625 Computer Equip-Cap Lease
4630 Software Purchase Capitalized
4635 Software-Capital Lease
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Identify & Sum Purchases for Credit Card Merchants
4812 TELECOM EQUIPMENT4816 COMPUTER NETWORK/INFORMATION S
4821 TELEGRAPH SERVICES
5045 WHOLESALE COMPUTERS/
5732 ELECTRONICS STORES
5734 COMPUTER SOFTWARE STORES
5967 INBOUND TELESERVICES
7372 COMPUTER AND DATA PROCESS
7375 INFORMATION RETRIEVAL SERVICES
7379 COMPUTER REPAIR/MAIN7622 ELECTRONIC REPAIR SHOPS
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Q: Have you found any tricks ortechniques for querying your
financial systems?
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Digging the Data out of HumanResources
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Identify IT Staff and Salaries
• Network Specialist
• Network Analyst
• Network Engineer
• Programmer/Analyst
• Analyst/Programmer
• Director of Information Systems
• Director of Information Technology• Data Analyst
• Developer
• Technology Specialist
• System Analyst• IT Supervisor
• Director Computer Services
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Don’t forget all the different types of positionsthat may exist at your institution:
• Academic Staff
• Classified Permanent
• Classified Project
• Classified Limited Term
• Limited Term
• Student
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Understand Roles and Responsibilities to Determine if
REALLY IT
• Is the current job description accurate?• What % of work is IT and what % involves departmental
subject matter?• Who is the backup for the employee if they are out?
• What would you do if the employee left tomorrow?• What skills would you look for in a replacement?• How close to capacity is the employee working?• Where do you think the employee should report for
greatest efficiency?• If the department, how do you see the employee
interacting with US:IT?
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Q: Have you found any tricks ortechniques for gathering HR salary
and wage data for IT?
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Digging into Procurement Data
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Procurement Data
• Spending Analytics using Spikes Cavell
• Took all procurement data (Sciquest, AP, Pcard) and
provides BI environment to drill into data by vendor
codes
• Vendor, amount, number of transactions, department• Helps identify procurement opportunities
• Helps IT identify where spend is and for what as well as
who is spending
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Q: Have you used data from aprocurement system to analyze IT
spend?
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Overall UW-Milwaukee IT Budget
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Partnership “Opportunities”
• Human Resources
• Financial Affairs
• Purchasing
• Internal Audit• Institutional Research
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Q: Have you found any other keypartners?
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Managing Distributed Spending
• Policy
• Relationships
• Partnerships, e.g., Procurement
• Governance
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Managing the Work Institutionally
• Why are you asking the questions?
• What is the desired outcome for your institution—
how does it fit in institutional strategy.
• Recognize that your research may make someonefeel uncomfortable.
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New ECAR Working Group
ECAR: Cost of Distributed IT Working Group
• Work starts mid-October, complete Mid-April 2015
• 5-8 page white paper discussing barriers,strategies to overcome barriers, and definitions ofwhat counts as IT expense
• Interested in group or becoming a reviewer:
• More info athttps://www.educause.edu/ecar/ecar-working-groups
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What else?
What were you expecting to hear today that youdidn’t?
What experience do you have with distributed IT youcan share with the audience today?
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