Upload
faith-levine
View
34
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Technology Budget Issues for ETAC. Willie Pritchard Vice-Chancellor & Chief Technology Officer October 23, 2003 and November 19, 2003. Today’s Presentation. Total Cost of Ownership (TCO) Desktop hardware and software Networks and Telephones Measure E Information System (ERP). - PowerPoint PPT Presentation
Citation preview
Technology Budget Issuesfor ETAC
Willie Pritchard
Vice-Chancellor &
Chief Technology Officer
October 23, 2003 and November 19, 2003
Today’s Presentation
• Total Cost of Ownership (TCO)
• Desktop hardware and software
• Networks and Telephones
• Measure E
• Information System (ERP)
Total Cost of Ownership (TCO)
• What is TCO?– Recognition that the cost of technology is more than
just the initial purchase price– Accounts for all costs of technology
• Acquisition• Maintenance• Software• Training/Support• Overhead
– A budget plan for technology acquisition and maintenance that levels costs over time
Current Inventory
Desktop Computers
Network
Telephone System
Desktop Computers
• District has over 4,000 desktop computers– These computers are purchased by the colleges or CS,
not by ETS
• Range in age from new to five years old or older• Critical that we maintain relatively current
systems, especially in our instructional labs and classes
• TCO plan had been for a three-year replacement cycle; now being pushed out to four or more years
Desktop Computers
• Challenges– Ideal plan would be to spread acquisition costs
evenly over time (TCO)– Aging of our desktop inventory– Nearly half of our inventory is over 3 years old
• Moving toward older and older computers
• Next year nearly 2/3 will be over 3 years old
Computer Inventory
0
100
200
300
400
500
600
700
800
<1 1-2 2-3 3-4 >4
AGE IN YEARS
NUMBER
Foothill / District De Anza
Implications
• More repairs; will take longer to repair
• Increased costs for maintenance
• Less efficient work force
• At some point forced to upgrade (driven by software requirements)
• Less competitive
• Possible negative enrollment impact
Network, Systems & Telphones
• Network maintenance costs ~ $230,000 per year
• Information system hardware and software annual maintenance costs of ~ $291,000
• Telephone system costs ~ $808,000/year
• Total cost – ~ $1,300,000/year
Measure E
Equipment Needs
Staffing
Measure E Equipment
• Three technology components:– New desktop computers– Network and phone equipment– Classroom/lab technology
Measure E Equipment Costs(By Type)
ComputersNetwork & Phone
EquipmentClassroom
Technology*
$1,959,032 $1,874,192 $2,065,065
TOTAL $5,898,289
* Includes only computer and peripheral equipment, not furniture and traditional lab equipment (microscopes, scales, glassware, etc.)
Measure E Equipment Costs(By Year)
Fiscal Year Amount
2003-04 $390,797
2004-05 $2,496,256
2005-06 $1,522,093
2006-07 $1,424,143
2007-08 $65,000
TOTAL $5,898,289
Measure E Equipment Costs Over Time
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
03-04 04-05 05-06 06-07 07-08
YEAR
AMOUNT
Measure E Equipment (By Type & Year)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
02-03 03-04 04-05 05-06 06-07
YEAR
AMOUNT
Computers Network/Phones Multimedia
Measure E Staffing Needs
• Technical support staffing is needed as new buildings come on online
02-03 03-04 04-05 06-07
New computers
219 458 450 279
Desktop techs
1 3 3 2
Network techs
0.5 1 1 1
Instructional Associates
3 6 6 4
State of Information System(ERP)
The Obvious Need
Options
Replacement
Current Information System (ERP)
• Doesn’t support our users’ current needs– Poor functionality / “User unfriendly”– Flat file data base technology– Antiquated screen interface or home-grown query tool
(MAUI) that is staff-intensive to support– FR, HR, and SIS data are not integrated– Can’t use it to do direct analysis of student learning– Opportunity cost– Some points of vulnerability, but NOT in immediate
danger of catastrophic crash
What are our options?
1. Bring additional functionality to current system
a) Without overtaxing system
b) While keeping options open for new ERP
2. Completely replace current system
Add Functionality• Use industry-accepted open (non-proprietary) standards that
will work with any new ERP system– Relational database (SQL, Oracle)– HTML, Java, XML, LDAP
• Investment for today & future, with lower costs• Examples of added functionality
– New registration system (TouchNet) – DONE– CATS/IEP/eTAG/FIPSE (Grant) – In process– Portal environment (Grant) – Just awarded ($1,087,450 over five
years)– Data Warehouse and Query Tool– Office Automation/Forms Processing
Replacement
• Multiple Year Project (3-5 years)
• Involves many district resources– Personnel– Budget
• Cost ~ $10,000,000
ERP Cost Itemization (Estimate)
Year 1 Year 2 Year 3 Year 4 TOTAL
Capital
Hardware $300,000 $1,000,000 $1,300,00
Software $732,333 $732,333 $732,333 $2.197,000
Database $500,000 $500,000
Misc.equipment $100,000 $150,000 $100,000 $350,000
Total Capital 0 $1,632,333 $882,333 $1,832,333 $4,347,000
Implementation
Backfill $325,000 $648,000 $648,000 $1,621,000
Consulting $155,000 $1,000,000 $1,250,000 $1,250,000 $3,655,000
Data migration $25,000 $75,000 $50,000 $150,000
Transition $25,000 $25,000 $50,000
Training; Technical $125,0000 $375,000 $500,000
Training: Users $100,000 $100,000
Total Implementation
$155,000 $1,350,000 $2,123,000 $2,448,000 $6,076,000
TOTAL COST $10,423,000
ERP Cost Itemization (2nd Estimate)
Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL
Capital
Hardware $440,000 $370,000 $70,000 $290,000 $90,000 $1,260,000
Software $2.100,000 $378,000 $396,900 $416,675 $437,559 $3,729,227
Database $366,000 $310,000 $115,500 $121,275 $127,339 $1,040,114
Total Capital $2,906,000 $1,058,000 $582,400 $827,950 $654,898 $6,029,341
Implementation
Backfill $500,000 $1,000,000 $500,000 $2,000,000
Services $600,000 $500,000 $500,000 $200,000 $1,800,000
New DBA Position $50,000 $100,000 $100,000 $100,000 $100,000 $450,000
Transition $25,000 $25,000 $50,000
Contingency $1,000,000 $1,000,000
Total Implementation
$2,150,000 $1,600,000 $1,125,000 $325,000 $100,000 $5,300,000
SUBTOTAL COST $11,329,341
Savings (equipment & software maintenance, SCT LEAP program, etc.) (2.682.000)
TOTAL COST $8,597,341
Notes
• Any industry open standard application we add now to our system will result in an almost 1 to 1 reduction in cost of new ERP
• Migration to new ERP is very staff-intensive (line staff & tech staff)
• Benefits of migration won’t be realized for some time after initial implementation
Summary of Anticipated Costs(over next 4-5 years)
• Desktop technology – $1.9M - $2.9M• Measure E technology - ~$5.9M
– Desktop computers – ~$2M– Network and telephone system – ~$1.9M– Classroom technology – ~$2.1M
• New information system (ERP) – ≤$10M• Total ~$18M - $19M
ETS A & B Budget(over the years)
FY00-01 FY01-02 FY02-03 FY03-04
“A” Budget
$7.1 million $7.1 million $7.8 million $7.2 million
Starting “B”
Budget$1.5 million $1.5 million $1.2 million $501 thousand
Float $1.1 million$490
thousandZERO ZERO
Carryover from prior
yearZERO
$414 thousand
$517 thousand ZERO
Actual
“B” Budget
$2.6 million $2.4 million $1.7 million $501 thousand
TOTAL $9.7 million $9.5 million $9.5 million $7.7 million
Declining ETS Budget
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
'00-01 '01-02 '02-03 '03-04
CarryoverFloatStarting BStarting A
Budget Changes due to…
• Layoffs (21 positions lost to cuts, contracts & grants ending, or to reorganization)
• Cuts to B budget• Savings by renegotiating some contracts• Moved some expenses from B to A budget
– Contracts for Alcatel, SCT, Data Center operations
– Software site licenses
Questions?