Embed Size (px)
Citation preview
DISA ESS II Page 1 29 Feb 2011
Memorandum To: Dan Dougherty, VP Federal and Jean Edwards, Director Business Development Subject: DISA Enterprise Storage Services (ESS) II The purpose of this white paper is to provide a high-level overview of the DISA contract environment relative to enterprise storage, the existing DISA operational environment, capture strategies, and way ahead for EMC. The DISA Contract Environment The Defense Information Systems Agency (DISA) has ongoing requirements for reliable, responsive, and cost effective storage infrastructure services of on-demand Enterprise Storage Services for specified operating environments including: Windows, RED HAT Linux, SUSE Linux, HP-UX, Solaris, IBM AIX, IBM z/OS, IBM z/VM and VM, VM Ware ESX. On the existing DISA ESS contract, VION was awarded a prime contract on Jan 2007 for $700M. Table 1 provides comparative data for both the existing and recompete contracts. Current market intelligence indicates there will be little difference between the structures of the two acquisitions.
The service provider will acquire, install, de-install, transport, configure, maintain all hardware and provide software and software updates for all products associated with this acquisition. Storage will be provided “as a utility or managed service” in DoD facilities, while the government will retain operational control.
The initiative will include both the unclassified and classified environments of the 14 Defense Enterprise Computing Centers, 11 of which are located in the Continental United States, with 3 overseas, including Hawaii, Germany, and Bahrain.
Table 1 ESS existing ESS II recompete (anticipated)
Period of Performance 5 year(s) base plus 3 x 1 year(s) option(s)
5 year(s) base plus 3 x 1 year(s) option(s) (anticipated)
Solicitation Number HC101306R2005 DISARFI07221101
RFP date 12/28/2005 07/01/2014 (Deltek estimate), although government indicated Summer 2012.
Type of Contract Firm Fixed Price, Indefinite Delivery Indefinite Quantity
Firm Fixed Price, Indefinite Delivery Indefinite Quantity (anticipate Lowest Price, Technically Acceptable)
Award Date 01/31/2007 01/01/2015 (Deltek estimate)
Contract Award Value $700,000 ($k) $700,000 ($k) (estimated)
Current spend $188,651 ($k)
Prime Contractor(s) VION Anticipated primes include: VION, HP, Oracle, NGC, EMC, Dell, IBM.
DISA ESS II Page 2 29 Feb 2011
VION, as the incumbent, is highly regarded within DISA and looked upon favorably by the current DISA Program Manager, Kerry Miller. All known market intelligence among vendors, integrators, and government personnel, indicate VION as the incumbent has well over 90% likelihood of winning the recompete. DISA has hired a number of prominent DISA government program managers and executives, including the former DISA CIO, John Garing.
The DISA Storage Environment\ DISA has provided the below information about the existing environment at the DISA Customer Conference in Aug 2011. The percent of usage by disk type was not released, but anticipated to be primarily block (Hitachi), and also unknown is the percent of compute and storage that has been virtualized, although the virtualization technology is VMWare. Disk Arrays (67 total, with 600+ orders completed, 6.3 PB as of Aug 11, now estimated to be 18 PB).
• Enterprise Class - Hitachi USPV / VSP • Mid-tier - Hitachi AMS 2500 (FC) • Bulk - Hitachi AMS 2500 (SATA) • NAS - NetApp FAS
Storage Networking • Brocade
Data Protection • Hardware – Oracle/Sun, Data Domain • Software – Symantec NetBackup, CommVault • Storage Resource Management – Symantec
The DISA Operational Environment DISA, as a working capital agency, is expected to grow services and capabilities as services, agencies, and Combatant Commands (COCOMs) feel the pressure to reduce costs and consolidate data centers, in many cases outsourcing their IT to DISA. The project that has the most visibility right now is called Army Enterprise Email. The Army plans to migrate all of its existing Microsoft Exchange messaging to the DISA DECCs, with associated rapid growth in the block I/O storage. Several of the COCOMs and DoD separate agencies have committed to the enterprise email project, and the DoD CIO, Teri Takai, has forcefully stated the success of this program is of the highest priority, to both DoD and to Microsoft. EMC Global Services is currently providing much of the Exchange mailbox migration work. Assuming Enterprise Email is successful, DISA has also announced plans for an Enterprise Sharepoint offering, although few details have been released. As Sharepoint consists primarily of unstructured data, this offers TREMENDOUS growth opportunity in the Network Attached Storage market.
DISA ESS II Page 3 29 Feb 2011
The DISA ESS II Capture Opportunity and Way Ahead EMC has three viable courses of action to provide storage services to DISA.
• COA1 (least desirable, but some revenue opportunity): Team with VION on the recompete, primarily in the NAS space displacing Netapp, assuming EMC concedes the break/fix work to VION.
• COA2 (less likelihood of win, but higher potential payoff): EMC primes the recompete, and through the quality of proposal, migration services, and cost, displaces VION as the incumbent. EMC would have to capitalize any equipment and migrate all existing storage payloads to the new environment, unless EMC Global Services chose to operate the existing Hitachi infrastructure, which they would have to acquire from VION
• COA3 (recommended, but higher upfront costs): EMC acquires VION, and provides migration services from Hitachi and Netapp to EMC Storage solutions over time
I recommend EMC acquire VION not simply for the DISA Enterprise Storage contract, but for the cloud computing model of providing “storage as a service”, indicated in EMC’s 10k released 24 Feb 11, which would give EMC greater opportunities to prime public sector engagements. VION is estimated to have 3PB under management at Customs and Border Protection, and 2.8PB at the Internal Revenue Service. VION is highly regarded in the Federal market, and have developed a proven business model for capitalizing equipment and providing storage “as a service”, rapidly depreciating equipment until fully amortized, then achieving higher profit margins while still obtaining useful life from fully depreciated gear. Ancillary Benefits and the Art of the Possible EMC’s acquisition of VION would give greater reach and past performance credentials to EMC Global Services for priming future public engagements, accelerating DoD’s journey to the cloud, and achieving the vision of standing at the intersection of “Cloud and Big Data”, as Mr. Tucci articulated in his 2011 letter to shareholders. Additionally, EMC Global Services’ knowledge of the DISA compute and storage payloads will offer greater opportunities to have value discussions around Big Data, and how to best monetize and capitalize on the existing storage installed base, while protecting VMWare is the virtualization technology of choice. [email protected] (Proposed new email address) [email protected] +1 202-730-9760
