Next Generation Data Center Services (DCS) Market Engagement – HUB Forum & Networking Event

okay welcome thank you for coming today
taking the time out of your busy schedule to meet with us
i’m Amy Pfluger the procurement and purchasing lead for DIR in the chief procurement office
i want to address the question process for our in-house people here today we
have little slips of paper like this that have an email address on it
if you would send your questions to that email box we’ll be watching it as we go
through the presentation today and if we’re able to we’ll try to answer some
of those questions today that being said I know I’m the procurement and
purchasing lead but we’re not in a procurement yet we’re just about there
so we are in what we call our market engagement time and this is to give
the vendors a little information about our potential future DCS procurement
okay there’s nothing to bid on right now so I want to kind of get that out of the
way for questions coming up there is no RFO out there there’s nothing to bid
on okay if we have a an RFO in the future it probably won’t be released
prior to September 1st so hint hint look start looking out for
September 1st I just wanted to take that question out of the line right away so
even though we haven’t started the requirements yet and we’re in market research we have finished our one-on-one meetings that we began back in February related
to the RFI that we had posted back in December for this project so we finished
our one-on-ones we’re moving into market engagement
because we really have heard from the market about some of the obstacles that
you all have when trying to do business with the state
so throughout this process and the future market engagement events we have
we’re really trying to meet those needs try to check off the box
the list of the things that make you comfortable when you’re making your bid
no bid decision so we’re trying to level the playing field some make sure that
you’re able to understand what doing business with the state of Texas looks
like we have quite a few different topics in the future that we’re going to
cover so be watching the ESBD for announcements on the future events
that we’ll have going forward where part of the purpose of this is to
try to give you some time to begin scoping out what it might look like for
you as a vendor teaming up with the primes versus the subs which is one of our goals of
today’which is to try to help you get that little extra time before we release the RFO
so that you can already have started thinking about how you might
team up for different service components of this we will be posting that question
and answer document on the ESBD after this along with the webinar which we’re
recording and then if you haven’t already given one of us your
business cards so that we can make sure we have the right business contact
information for you and we’ll be posting the sign-in sheets as well again make
sure you signed in if you haven’t you can sign in a little bit later and I
think that’s all I have for you so again thanks to you for taking the
time to be here and we’ll be fielding some of your questions we’ll be
answering at our discretion if we get close to what it sounds like maybe
fishing for a requirement well delay answering those until we either have
answers or the RFO is posted so I’m here to try to protect the future procurement
we don’t want any vendors to get disqualified for any reason so that’s one
of the reasons why we may decline to answer some stuff so welcome and I’m
gonna turn it over to Chad Lersch he is the director of enterprise strategic outsourcing good afternoon everybody thanks for
joining appreciate your time hopefully I can
make it worth your while between Amy and Kate here I think this I
just need to make sure I don’t wreck the procurement but in the interim do I just
can I just click on this mouse button just yep so as Amy noted my goal here
today and moving forward is to communicate to you more or less where
DIR’s mind is at with regard to the expectations for the next generation
data center as Amy noted we have not officially started drafting requirements
for the RFO but we do expect to start that in the near future with an RFO
out sometime in the early fall so this is my opportunity to talk with you guys
and field some questions from you guys because we believe that our best
opportunity to get a good return on our RFO is to communicate
to you what it is DIR is thinking the expectations I will
tell you that as we move forward I think we’re shifting our focus more to
services versus sort of the raw commodity of infrastructure so hopefully
you see a thread of that both in this presentation as well as the
requirements once they hit the street so that being said I’ll just start at a
very high level for those of you who have seen this before
sorry for being so repetitive but this is the sort of operating model we work
under today the blue box at top there is the customers the shared services
program under the MSI serves and as many of you know we just recently reprocured
and awarded a new MSI contract and let me just stop here and note that
today’s current practice and I expect on into the future is awarding
one four year base contract for these shared services with four one year
optional renewals right so I say that not only because that’s what we did with
the MSI and the newest service component providers for the but we also
expect to do that with the infrastructure the DCS program and the
reason I think this is germane to the discussion today is because let’s assume
well in reality we won’t award this contract until or this contract won’t
come into being until September 1 of 2020 and then potentially the contract
could be a four-year base with you know let’s say theoretically all for one year
renewals so that’s an eight year contract and that’s ten years from more or less
from today so trying to sort of see into the future is a little bit tricky as you
might imagine I can certainly tell you when we awarded the infrastructure the
DCS program the last contract I don’t think we had fully envisioned the
prevalence of SaaS whether it be IaaS, PaaS or SaaS in today’s models so I think as much
as we’re trying to read the tea leaves and infuse innovation into the next
contract we’re also just trying to infuse the contract with the level of
agility to allow us to shift and change with the changing technology so that
sort of does lead me to the discussion around the MSI and what we’ve done with
the MSI which is we’ve established what we’re calling a digital platform which
we hope will allow us to not only bring on new customers but new services at a
faster rate there will also be a level of self service to existing customers
that we don’t see in today’s model so we hope that will provide a level of
agility and flexibility choice and control to our customers which is
something that’s been asked for quite a bit and we are trying to respond to that
act to the extent we can in that green box there that represents the source for
primary functions that the MSI handles I won’t dive too deep into those unless
somebody has a particular question around those functions but all of those
have been retooled and have been built into the digital platform so that our
customers can leverage it in a digital capacity so with that you’ll see the so
just to get our just to level set on the terminology I use those five
tabs well if you include the future tab there I call service components and/or
program they can be sort of interchangeable for example the managed
security services under AT&T that’s a service component with MSS the AT&T being
the single service component provider and/or SCP that’s sort of how we refer
to it internally so I wanted to get everybody familiar with that terminology
externally and then of course the managed application services program not really
the managed application services service component is comprised of two one of
which DXC there’s application development and then the rate card is
done by allied as you may know was just recently in the
last month or so awarded we took a model that used to be a p3 model and
inverted that so to speak and now that is a contract between the state it’s a
managed service we provide the contract management oversight over that as you
also may know before it was with one vendor who did all the
application work and also did the payment services we have as you see
split that up and awarded the services the appdev and maintenance to
Deloitte and then the payment services that which will integrate into the appdev
and maintenance to NIC I’ll note one interesting fact for those of you
who don’t know or aren’t aware in the reprocurement we also included
requirements for what we’re calling an online digital assistant so a part of
that reprocurement is going to include a new application that should plug into
the Texas gov portal and provide you mobile access and what we call it of
sort of a concierge for citizens and we have already engaged several agencies to
participate in that program and essentially they hook in to that digital
assistant and that allows the citizen to interact through one point of contact or
one point of entry and then achieve multiple services throughout the state
of Texas so we expect that to grow as time moves on but I think ultimately the
point to that is is it reduces the level of friction right in between the citizen
and the state services they’re looking to consume so that’s exciting and then
the last but not least and the reason we’re here today I suppose is the data
center services program which as is indicated up there is currently provided
by Atos for a bulk of the service components and then of course Xerox
handles the print mail so I’ll move on I covered much of this already so I guess
I jumped the gun and maybe should have looked at your print out a little more
closely but the digital MSI which we stood up or we are in the process of
standing up these are the some of the key components I think the reason why
it’s important to hit on the digital MSI is because we awarded that that goes
live September 1 2018 and then of course the data center services program once
awarded won’t go live until September 1 to 2020 much of the capability or
capacity or functionality we’ve built in to or asked of our service provider
Capgemini won’t really reach fruition or be realized until we bring on those new
data center services providers so I just think it’s important to highlight that
the level of automation choice and control is really our customers will see
some of that now or September 1 of this year and then we expect that to increase
significantly once we onboard a new service component provider for data
center services so that being said a couple things I wanted to point out the
new dedicated and focused outreach and growth platform as many you may or may
not be aware DIR has always had there are multiple goals that we hope to
achieve through the shared services program one of that is a value to our
state agencies and we feel as though the best way to achieve value to our state
agency customers is to grow the customer base so we have set up a pretty distinct
outreach and growth program with the new MSI that will not only task the MSI with
performing a level of outreach around the shared services program generally
but will also task our service component providers
those who are most familiar with the unique wares they sell to our customers to also
drive growth in that capacity as well so that should be interesting and then I
also wanted to touch on the dashboards and analytics that we expect to come
onboard with the new digital platform the dashboard will not only be customer
facing whereas the customers should be able to pull up a dashboard and
understand their consumption and the rate of consumption at any given time or
near real-time that will also provide DIR internally with the same dashboard
that will help us manage what it is our customers are consuming where they’re at
where there’s a level of discord or where there’s happiness and be able to
address their needs at a much faster rate
so also automation digitization I mention digitization and that’s a
tough word for me to say obviously I mention that because when we touch on
the print mail the next generation of print mail I just want to speak a little
bit to our desire to drive digitization especially in that capacity and we are
currently as we have been over the last month or two engaging our customers to
understand what their business needs are and how we can establish services that
address those business needs and we are also actively pursuing opportunities to
take standard print mail what may be a letter in an envelope with a stamp on it
today and understanding where we might have opportunities to digitize that we
know that there’s a lot of constituents that have an expectation of that now and
certainly going forward so I just wanted to point that out and I’m sure
I’ll revisit that when I step through the print mail service component wanted
to briefly touch on what we believe the DCS benefits are for our customers
built-in refresh and technology currency that’s always been I think a real
benefit as you may or may not know we are today on a five-year refresh cycle
for our physical infrastructure in the data center which means 20% of our
environment is refreshed annually so it keeps us relatively current for those
customers who are consolidated into our private cloud at the physical data
centers the self insured disaster recovery that obviously was a core
function that the legislature expected us to achieve when they when they passed this
this legislation of mandating the DCS program disaster recovery was certainly
at the core of that rigorous industry standard service levels we think that we
have stood up a solid set of service levels of course we look for additional
opportunities to tune and tweak those going into this next procurement and
obviously service levels and their expectations both from our customers and
the vendors who participate that has shifted somewhat right with the with the
advent or the furthering growth of the cloud type products those service levels
certainly look different today than they did you know five years ago for example
I think we look much less to return to operation and much more to high
availability so that’s just one example I think that covers it for DCS benefits
I just wanted to note here just because we often get asked this question by
service component providers once they’re awarded the shared services contract who
are available customers to the contracts as you know these are enterprise
contracts and once stood up and agreed to Texas state agencies, Institutes of
higher education and local governments can all participate so I’ll caveat that
with a couple things as you see in parens there we have the Information
Technology Council for higher education as we affectionately refer to it
internally as ITCHE for any higher education addition to the program often
we need to not often by statute we need to run that by ITCHE and get their sort
of blessing so that’s just a caveat for Institutes of higher education although
we do see some opportunities for consolidation there local governments is
a I shouldn’t say a focus but we think it’s a good opportunity for some of the
next generation data center services and again with the eye to expanding our customer
base to pass on the value of the savings to our core mission which is our state
agencies the one thing I will note and is a little bit different
then our let’s say our cooperative contracts where customers are defined
slightly different I think it’s interesting to note here which is other
states are not eligible to participate in the data centers programs so 2054
which is our enabling statute defines governmental entities to include other
state agencies so there are folks in other states there are states and there are
localities in other states that leverage some of our cooperative
contracts once a contract is executed by and between the two entities for
data center services that is off the table the legislators have specifically
precluded that from the defined customer here so I wanted to point those out so
everybody goes into it eyes wide open in terms of having a knowledge of the
potential market you could speak to the next thing is sort of now we’re going to
shift focus really primarily to where DIR is at and the expectation we have to
the next generation data center I’ll try not to read this verbatim because I
always hate when somebody reads the PowerPoint verbatim but I want to note
the innovation, flexibility, agility, choice and growth so we have had a
significant feedback from our customers I have gone through a number of customer
engagement sessions where I have given a presentation similar to this and fielded
a lot of great questions so that is going to further shape how this RFO
eventually looks and feels but one thing of note I will say and this was towards
the end of last week so I suppose we didn’t really have time to change these
one of the so in my head in my mind inherently I thought price and or
reduction in price or cost savings could be achieved by any one of those
innovation, flexibility, choice, growth but our customers were very clear in saying
we would really like one of the outcomes to specifically speak to reduction in
cost so I being a dutiful servant of our customers will include that in the next
iteration of this PowerPoint but I just wanted to note that otherwise again as I
noted the modern state-of-the-art data center, the environment, the toolset,
the platform, we expect a hybrid capacity of the data center we expect to
supplement, augment the new MSI to come on board and as I have noted there has
been some functionality with the new MSI we have literally tabled until 2020
when we bring on these new service component providers so it’s really a
multi-stage process and you know once we’re done with this there’ll be a new
technology that we need to incorporate into the shared services so it’s ongoing
job security I suppose as long as I do it okay so one of the couple of the
core strategies that we’re looking at accomplishing in this next
procurement for DCS first and foremost as I mentioned before we see a true
commoditization of the underlying infrastructure right so to our customer
generally as time progresses they’re getting much more savvy and they’re
saying to us we don’t really care what kind of box our application runs on we
just want it to run well all the time and as cheaply as possible and we want it
to be secure so to that point when we look to the next generation data center
and we procure both a new provider for for what we call the private cloud our
on prem dual data centers or a public cloud it shouldn’t really matter to our
customer I think the MSI along with several of the shared services in the
program and the new infrastructure providers that will come in will
provide that sort of back-end support which should ultimately net in a service
to our customers and that service to the customers should really serve the
applicatio,n their business needs which really I think comes out in the
applications they build and run today so to the extent we have a richer
understanding of both business needs of our customers and more important
importantly the application stack that they’re running I think that will only
help us serve our customers through the DCS program I’ll take a second to note
one of the things we’ve done with the multi-sourcing service integrator, the
new digital platform is we’re standing up an application portfolio maintenance
module that is going to be available to all the
data center customers so we hope that they will leverage that tool and populate
that tool we have a CMDB that exists today that essentially houses all those
CIs it should then self populate the APM tool and then when it becomes live it
will be up to our customers to sort of go through that clean that up
rationalize that makes sense of that because of course it will
populate the CIs but there’s a lot of there’s additional functionality around
the APM tool for budgeting, planning purposes that our customers will have at
their fingertips I say that because I think that’s going to be a core
component to the next data center in terms of understanding the
infrastructure needs of our customers and whether it makes sense to stay on an
infrastructure an IaaS or managed infrastructure internally or move to a
PaaS or a SaaS based product I think that’s going to be really critical for
those for the folks in our customer agencies to make those kind of decisions
again as I noted and I won’t belabor this point the MSI we understand will
create a high level of automation that will allow will again sort of unhinge or
detach the underlying infrastructure from the services our customers need so
they will be I shouldn’t say completely agnostic it should as time goes on they
will be become less and less concerned with the infrastructure the white box if
you will that their application is running on in and whether they’re
getting the right performance out of that application having said that
I think one of the important components which we will not only look to the next
generation data center providers to provide to us but frankly we’re going to
need help from our customers is that cultural shift right I think we have
begun to hear more desire and more demand for agile based development for
DevOps environment but that requires a shift in mindset that I’m not sure all
our customers are quite there yet in fact I would say many of our customers some of
our larger customers are getting there or they’re at least they’re beginning
the journey but not all our customers are there but we understand that
again when we’re talking about 10 years from today
many more of our customers will be in that space so we want to enable
them through the infrastructure to get there and not only infrastructure
right let’s note the fact that the managed application services has
opportunities there to shift our customers into a DevOps or an agile type
environment amongst other things so lastly the thought leadership and
entrepreneurial spirit this lives on as some of you may know I work for the
chief technology office and my boss is John Hoffman who is the chief technology
officer and this is his little golden nugget that he like for me to
proselytize but you know I think the idea behind it is going back to the
cultural shift and I know that internally at DIR we try we have a
somewhat of an entrepreneurial spirit for a small agency so we have that
luxury we don’t get any revenue from from the general fund and all of our
revenue is derived from our customers so it’s important for us that our customers
are happy and continue to consume the programs that enable us to keep going on
so I think that drives sort of an entrepreneurial spirit internally and I
think by setting up some of the agility and flexibility for our customers to
leverage it will help your staff sort of become a little bit more entrepreneurial
and provide thought leadership and and the changing nature of technology
today so as Amy had also alluded to in this process and this has been this is
I’ve been working on the conceptual next-generation data center since I
don’t know maybe July of last year and one of the things we’ve done more
recently as in some of you in the room I know either visited with us or responded
we issued an RFI request for information back in I want to say early December and
we got a healthy dose of responses back we got about 30 responses back the RFI
was around the next generation data center was posted on the ESBD we reviewed
them all and unfortunately we couldn’t speak to all 30 we have some time
constraints internally with the procurement of the MSI and the Texas gov
so we had to narrow that down a little bit and
as a result we ended up with we ended up with six we had six half-day sessions with the likes
of IBM, Amazon, Dell and obviously I’m missing three more all were good all
were informative all helped us to understand where the market’s at today
and where they expect it to go and I can tell you all of them sort of uniformly
emphasized the need to focus on the application stacks and much less on the
underlying infrastructure so we have heard that time and time and time again
so that’s a big driver and then after the six half-day sessions my boss John
and I sat down with another six vendors of that RFI response and had two hour
sessions which also netted I think as much if not more benefit than the four
hour session it was a very lively conversation and we were able to
back-and-forth dialogue and I think frankly John and I were able to take
some of the questions that we netted from those larger presentations and
drill down on those some so it has all that is to say it has led to
here and as Amy had also noted our goal ultimately is to get as many quality
responses back as possible for this next generation data center so hence the
reason for these types of presentations and hopefully we will have more as time
goes on I know at some point time when the procurement officially starts we
won’t necessarily be able to respond back to you but we hope to continue
pushing information out as we have the information available to us again the
expectation is is we don’t want the mind developing this in DIR to look like
black boxes to the vendor community with you guys trying to guess what it is we
ultimately want so we’re going to try and be as clear and concise as possible
just a bit of high-level here some of the key art of the possible takeaways
which I think you will see in some of the future slides that I’ll be speaking
to but of course hyper-converged hardware is a thing and really probably
a standard going forward of course we have as I noted refreshed Hardware in
the environment so there is no expectation that we come to September
1 of 2020 we would just wholesale lifts and shift our existing hardware for new
hardware however we do expect that that will be a key and critical component to
the responses and we would expect that we would refresh into hyper-converged
hardware of course a part of that is software-defined network we understand
some of the limitations we have today not only in our private cloud but then
in our hybrid cloud which we are actively working to fully stand up is
largely dependent upon software-defined network consumption based billing I
think the best way to speak to that is we would expect the same billing model
for our private cloud our on Prem as we do for public cloud today again it
should really be what whether our customers consume on Prem private cloud
resources or public cloud resources other than the right fit for the right
model it really should not be a real concept for them so we think that
consumption based billing for our private cloud will help with that cloud
versus on-premise compute as I noted we have been actively working on a hybrid
cloud for the last two years the last leg of that is building out a network
which will facilitate that and we are currently actively engaged with our
cloud providers and our on Prem provider to identify the right tool sets
both in the cloud and on-premise to enable that and I think we’re real close with that
application awareness business needs again this should probably be right up
at the very top I think I’ve spoken to that and I’m sure I’ll speak to that
again edge computing we know that more and more today as compute increases the
applications increase the demand edge needs to be enabled
moreover the hope would be is that the more we can drive taking the data center
or the network out to regional opportunities that will not only help
further consolidate some of our existing customers and may facilitate local
customer growth and then it will just provide additional levels of compute for
those customers that are not soundly seated in the sort of Central Texas area
so standardized hardware and software this
is not going to be an easy feat the thing we understand is that the more hardware
and the more flavors of software you have in the environment the more costly
it is to provide services to those softwares and hardwares so again
similar to the hyper-converged hardware there is no expectation that on
September 1 2020 we go to a standardized software hardware service offering but
with the opportunity for this to be an eight year contract we expect to see
a plan to help our customers standardize both hardware and software to drive down
the cost of the data center to our customers it’s interesting from our
customers’ base and I see a few folks in here that were customers and no longer
anymore but I’m sure they understand on one hand our customers ask for choice
and then on the other hand they ask for simplification and low cost and it’s
kind of tough it’s that sort of where we’re at the pivot of how do we provide
the choice without enhancing the complexity of the program in driving
cost up in terms of having to enable the support and maintenance of all those
different choices of software and hardware so I would urge folks to think
hard about that and help DIR to the extent they can solve that
problem last but not least mainframe as a service I think I mentioned that IBM
came and talked to us for the art of the possible and of course they spoke
heavily to mainframe as a service today we have a very robust mainframe I think
we’re pretty proud of it most of our customers I think are pretty happy with
it but as you know it’s a legacy technology and it’s not to say that it
still doesn’t serve its purpose but some of our customers have a mind and or
goals to migrate off the mainframe either to server or god forbid up into
the cloud but that being said we have a problem with sunk cost in
infrastructure and licensing for mainframe and the less and less our
customers consume it those customers that remain on the mainframe have to
shoulder the burden of that cost it doesn’t go down
uniformly with every MIP that drops the price of the mainframe doesn’t
necessarily correlate with an equal and opposite drop in cost so
we see mainframe as a service as a viable alternative again
not necessarily September 1 2020 because we’ve got quite a bit invested into our
mainframe and it’s been refreshed and it’s certainly very modern and I think that’s
why the customers that use it are happy with it but to the extent we can solve
the problem of what we affectionately refer to as the last man standing
internally that would be helpful so I would hope that folks will take a look
at that I’m going to move on to as I noted before the service component and
really I’ll spend a little bit of time and I don’t know I may have already
exceeded my time but okay I feel like I put too many slides and I’m
always way too ambitious with the slides anyhow the facility management, server,
network, mainframe, print mail all existing service components today as you
may or may not be aware public cloud operations while we have public cloud in
the program it is not its own distinct service component and we look to see
that sort of culled out from our current framework and then the enterprise
solution services is sort of the most unique new offering I think that we’re
going to ask for in this next solicitation so I want to spend a little
bit of time on that what we’ve heard from our customers and frankly what
we’ve seen as we stand up hybrid cloud is often times our customers don’t have
the internal expertise to understand their application portfolios to
understand what’s best to be retired versus retooled versus migrated to a
cloud-based application so on and so forth and as you move into an agile type
development or a DevOps situation and you start talking about containers micro
services there’s a lack of knowledge base for our customers and I think it’s
incumbent upon DIR if we want to enable this type of technology and drive our
customers to the technologies that will save them money and provide
modern IT functionality we need to stand up what I would really sort of think
about is maybe an army of cloud architects that can go in and help our customers
rationalize their application stacks help them build out a roadmap about
near-term, midterm and long-term goals around their applications help them
justify the budgetary requirements in order to modernize those legacy
applications and then last but not least help them to understand how they’ll need
to retool their internal workforces to address or accommodate those changing
technologies and the modernization of their legacy environment so that’s a
critical component and we’ll dive a little bit more into that I think I’ve
spoken to most of these so I won’t belabor these points I will say that
that top bullet in my mind is the most critical of all along with focusing on
the business outcomes of our customers and enabling the services that help them
to drive their businesses also helping them to modernize their environment as
you may know DIR is tasked with inventorying and sort of
managing the legacy modernization effort for the state for the enterprise but to
the extent we can leverage the shared services program and help to drive that
and also by the way help our customers articulate the value and the need for
either additional budgetary capacity to to drive that modernization and or to
help them if there’s cost savings realize which we do expect some cost
savings to be realized with this next contract maybe to help reinvest those
those cost savings to help further modernize their legacy environments so I think I Wow I really did jump the gun
I have really I’ve spoken to much of this but this is just a quick snapshot
of where we have come from and where we are now you’ll see the red part there
that’s the market engagement which we intend to actively pursue over the
summer of course once we start the development of the RFO it will have a
different flavor and I will spend much more time pushing information out to the
market and much less time asking the market for feedback and then of course
you see there the posting of the RFO it says there September maybe mid to late
September maybe even early October but certainly no later than that the goal is
as you can see there is to award a contract somewhere around
nine or ten of 2019 and give the infrastructure provider a year of
transition so public cloud operation again so let me explain to you how it
currently how it currently looks in the data center program we have the server
service provider who currently is Atos and they essentially what happens is for
our hybrid cloud today when we get a request when a customer requests an
instance in one of our cloud providers and today we have three right we have
AWS we have Azure and we have Google when a customer wants to deploy an
instance into one of those public clouds that request goes through our Service
Catalog which is essentially our MSI and is then passed on to our server service
provider who then deploys that into the cloud we did that for a myriad of
reasons we essentially stood up the hybrid cloud mid-contract so we didn’t
have as much flexibility on who and how we might we might stand those
instances up also it just seemed to fit in terms of our current contract
structure with some of our cloud providers so it made sense at the time I
think going forward the expectation is is that we will create a level of parity
as you might imagine to some degree at least perceptually and you know I won’t
argue with whether in reality it’s this way but when you have your server
service provider sitting on top of your cloud providers there may be a conflict
so to the extent we can provide a level of parity and let our on Prem our private
cloud provider stand in parity with our public cloud providers and then
allow our customers to make the decisions based on the needs of their
individual applications without having to go through one provider or the other
we think that would add value to our customers so that’s a key and critical
component to this next procurement now having said that how we procure that is
yet to come you know there’s a lot of different ways
we’re looking at it right for instance we could we could buy a broker
that brokers those applications we could leverage some existing
functionality to provision in the cloud so that’s to be determined as of
yet so that’s one of the things that I expect we will update you guys
throughout the summer as to how that eventually lands but make no mistake
about it the ultimate goal is to provide a level of a fair playing field I
shouldn’t say that that’s not a fair just some parity in terms of private
and public cloud so and just a note of interest and I think I hit on this
before when we procured the next generation digital or the digital MSI a
component to their new platform is automatic provisioning to the cloud so
what that really means and what the expectation might ultimately be is maybe
even going as far as leveraging the public cloud providers’ service catalogs
right not even replicating that in our own
Service Catalog but a handoff from one Service Catalog to the other to allow
our customers to go now of course that’s within reason we have to constrain the
environment much to the chagrin of some of our customers just because it’s tough
to keep a boundary around that if we just let them go nuts and we also have
to make sure that whatever instance is stood up in the cloud has the same level
of security the instances in our private data center have which as you
may know run all that runs through the NSOC at the end of the day so we
have that level of security and at our private data center and we need to make
sure that at a minimum those tools are deployed in any instance that is
connected to our network in any way going forward so there’s some there’s
some restraints but I think that we will enable a faster and we will ultimately
allow more control to our customers and this is what I spoke about before and
the enterprise solution services which I hope will ultimately help drive
consumption of cloud whether it be IaaS, PaaS or SaaS the idea here would
be through consultation they would provide an independent third party sort
of assessment of our customer’s application stack and help them to build
out a roadmap and articulate the business case around
the need for additional funding exceptional items so on and so forth and
of course and I could tell you just last week when we had a customer engagement
session our executive director Stacy Napier stood up and wholeheartedly
volunteered the fact that DIR is interested in standing side by side with
our customers to the extent we can to drive this legacy modernization and
articulate the value to the legislature and help them to articulate the value of
any given additional expense that might be required and the cost savings we
would expect from modernizing any legacy environments I think I pretty much hit
on that and I will be around if anybody has any specific questions on that
because that might still be a bit nebulous the one thing I want to hit on
with network management we believe that network is critical and probably frankly
the fibers, the backbone to all of this happening and as of right now we have
the network component managed by our server services provider and I think in
again we awarded both of those service components to a single service
component provider for very legitimate business needs back in the early teens
of 2000 but I think the goal here is is to keep that a separate service
component and award that to a service component provider that has a core
capability to really drive a next-generation network in particular
with a software-defined network to enable much of what we’re trying to do
with not only legacy modernization but hybrid cloud and advanced technologies
going forward so that’s the one thing of note I might add there print mail I
spoke about digitization that’s sort of a big push for us I know it’s near and
dear to my boss’s heart and he’s visited with a lot of folks around opportunities
for digitization and we just had a lengthy discussion last week with our
customers and I think our next just so you understand where we’re going our next
objective is to circle the wagons and bring those customers back in to share
ideas and collaborate on ways we can digitize
what they currently are churning out in their print mail services you know
there’s I think sometimes real I think sometimes perceived may be a misnomer
maybe a reality that certain things may not be able to be digitized right there
are certain laws and regulations that require the actual
printing and mailing I can tell you having a legal background myself I know
there’s a lot of legal requirements around notice for certain actions taken
by the state or through the state on behalf of a constituent we also know that
there’s opportunities for opt in just as you do in the private sector with
litigation counsels can opt into digital notices customers also that do business
with the state have opportunities for opt in there so we’re interested in
exploring those opportunities for opt in we’re interested in driving legislation
to the extent possible to not only drive down the expense of print mail but we
also think bring a new level of competition to that arena because we
know there are a lot a lot of vendors out there that are highly engaged in
digitization and documentation digitization practices and a few big
ones that really do what we do today so we’re interested in infusing some more
competition and capability into that tower as we move forward last but not
least mainframe and again I noted the mainframe as a service we think that
that’s a good opportunity for a pilot program coming out of the gate an
optional pricing to allow our customers to adopt and or opt in as they
see fit and we’ll see what kind of legs that has under it so that about covers
the service component on prem server management so on prem server management
or as I’ve been referring to it the private cloud we have which is the dual
data center model one of the questions I get asked a lot is as you as you get
more cloud adoption is it really necessary to have a dual data center
model right especially when you think about the fact that one of the some of
the low-lying fruit with cloud capability or cloud infrastructure is
disaster recovery and that’s one of the reasons for our what we call the self
insured model right the dual data center where we can fail over to one or the
other data center and my response really is is I do not expect our dual data
centers to go away in this next contract that is not an expectation of DIR
however we do see a runway a roadmap to whereby the next time we procure this
right eight ten years down the road there may no longer be the need for a
dual data center and we’ll cross that bridge when we come to it but certainly
it becomes tough to justify the level of infrastructure and the cost to manage
that when half or more of your compute is in the cloud so also I wanted to note
that one of the things we expect to see in the next private cloud requirements
or responses is you know some people are calling it a digital fabric I just call
it a high level of automation orchestration creates sort of a
lights out, self-healing capability I understand that much of that is enabled
with the advent or the integration of containers and micro services that’s
really when you see the value of that sort of orchestration and being able to
slide containers around without thought really of the underlying box
it’s running on so understand that that also is a aspirational goal and what we
would expect to see we grow into over the next contract so just wanted to note
that facilities management really hasn’t changed it’s really it is what it is
right cooling power you know for both the ADC
and the SDC so and that’s it I think how long did I run over like 20 minutes again I just want to restate that
anything we’re saying here is still penciled in right so there’s no
guarantees of quantities or structure or how the towers are put together or not
and we’re not implying or inferring any commodities or services just for legal so I just want to make
sure that when the RFOs come out the RFO requirements and what’s in
that that will rule not things we’re saying here okay hi good afternoon I’m
Lynn Sanchez I’m the HUB program manager at DIR I know some of you so although we don’t know what it will
look like exactly we do know that there will be a HUB subcontracting plan
attached to this procurement and all respondents will have to submit one and
it will have to be completed correctly or you do not pass go you do not
collect two hundred dollars you won’t get to talk to Chad anymore you’re going to
stop at our office so legally everybody is required to complete one and that’s
why we’re here two HUB goals that are attached to most of our procurements are
other services and commodities so depending on what our RFO is let out for
what particular services or products it will have a corresponding goal this is
the goals for the life of the contract okay not just for one year not just for
one piece it’s the goal for the entire amount paid out through this contract
now these are three helpful links the forms that you’ll use on any of y’all
are familiar with it it’s not our form it’s the comptroller’s office form we’re
required to use that form in all of our procurements so you can yell at me but I
don’t have anything to do with it but it’s posted on the comptroller’s website
we’ll bookmark that page and then the CM BL this is the link to where you can
identify HUBs and we will hold your hand I will talk to you over the phone you
can come into our office we will search the CMBL and we will identify
HUBs for you on this online tool and then there’s another link to the
business trade organizations and development centers these are the
organizations throughout the state of Texas that have partnered up with the
comptroller’s office that you can send your bid opportunity to and market to so
like I said every procurement all of our procurements have the HUB subcontracting
plan the first page is simply a checklist to try to help you figure out
what method you’re going to complete and unless your company has a forge and
you’re whittling down your own pencils you probably are not self performing or
self fulfilling this entire contract so if you don’t know how deep you need to
dig for HUB numbers you need to contact us because we can identify that so
everybody in here buys office product that’s a subcontracting opportunity
everybody in here is going to be buying some type of software that’s a
subcontracting opportunity if you’re leasing space that is a subcontracting
opportunity and I mean are you leasing space for your employees to help fulfill
this contract yes unless you built that yourself and you’re paying taxes on
that yourself it’s a subcontracting opportunity we want to help you identify
every subcontracting opportunity so you can put together your team and try to
meet or achieve these HUB goals so I’ve put the HUB plan up here
but I don’t want us to run out of time so we’re gonna the main thing you need
to remember about section 1 put your company’s name and contact information
and your state VID number is your federal EIN so everybody has one don’t
leave it blank I don’t know who to contact if I need clarification so don’t
forget to leave that blank and I’m saying that because vendors leave it
blank section two there are two boxes at the top of the page yes I will be
subcontracting or no I will not you will check one of those boxes if you will not
be subcontracting you’ll proceed to section 3 if you are you’ll complete
Section 2 and you’ll identify every subcontracting opportunity and every
percentage you’re going to sub out to a HUB or non HUB vendor
and the aggregate total cannot exceed 100% okay so section three you
complete yourself performing justification and if you’re going to do
that don’t tell us how you’re going to complete it or self-fulfill the contract
and then make promises that should we be awarded the contract we support HUB
businesses and we’ll look into that you no you’re telling us how you’re going
to self perform it that’s how you’re going to respond and then don’t forget
to sign and date it if you’re going to meet or exceed the identified goals make
sure you complete attachment a method a and this method you simply identify your
subcontractors and what approximate dollar amounts and percentages of the
contracts they will receive we have to have all of those pieces or your plan is
not complete if you are not going to meet the goal you will complete method B
attachment B this is the section that you are required to solicit a minimum of
three HUB vendors and two minority trade organizations that rolls back to the
links we provided earlier we will hold your hand we will help you fill this out
once it is completed we will review these forms for you to ensure
this is not a fail item in your response so y’all need to start calling us
ya’ll need to start contacting us I have Teresa Williamson who’s a HUB
coordinator at DIR if you have never seen a HUB subcontracting plan she has
some in her nice little pocket right there on the front row come up and pick
one up we can have meetings about this we can talk about this I can tell you
what events you may need to attend to help identify subcontractors that could
be potential partners for you for this so talk to us it’s our job we like our
job and so that’s the end of our little portion and again we will review the HSP
at any time up until the RFO is due and you can go back if time
allows you can go back and make as many corrections to it as you need to
as long as we have those days built into it and this is the end and in a minute
y’all all going to stand up and you’re going to find your table IBM
who’s over there you’re going to find your table and those of you who are
interested in subcontracting are going to float from table to table and there’s
a sign-in sheet and you’re going to leave a business card and you’re going
to network and you’re going to talk about what services and products y’all
can provide so interact with each other because I’m going to finish so you’ll
have enough time okay I think at this time that concludes our
webinar for those of you who are online we thank you for attending and the
question answers and attendees and the slide deck will be posted.

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