Enterprise Technology Services

1. Enterprise Technology Services ETS Rate Model Development 2015/17

2. Agenda • Brief History of ETS Rates Development • Outcomes of Rate Development Processes • Benefits of using proposed rate methodology • Service Lines • Process & Key Planning decisions • Timeline • Rate Elements • Customer Input

3. Rate Development History

4. History – Lessons Learned • Iterative Methodology Adjustments • Defining Services • Units • Cost Allocations • Resulted in continuous rate adjustments • Rate Transparency requested

5. Today’s Rates • Bringing forward learning from the past • True Cost of Delivering a Service • Eliminate subsidization

6. Process Forecast Costs Forecast Usage • Compensation • HW/SW • Maintenance • Overhead • Trend Analysis • Growth Projections • Customer Feedback Unit Rate Forecast Usage = × ÷ Pricelist • Estimates by Customer by Service line Customer Budget =

7. Outcomes & Benefits • List of products and services • Clearly defined • Discrete products • Stabilize rates • Collaborative planning with customers • Refine our usage and cost projections • Investment vs. Refund

8. Outcomes & Benefits cont. • Publish Rate & Pricelist • Eliminate subsidization • True cost of service delivery • Budget predictability • A-87 compliant rates • Service Benchmarks • Demonstrate value for services provided

9. Questions ?

10. Rate Sheet & Pricelist Example

11. CUB Responsibilities • Review and approve methodology • Key meetings to review work to date • Transparency of rate model includes internal and external scrutiny • Final layer of CUB scrutiny • Final rate approval

12. ETS Rate Methodology • Define services to meet business demand • Unit descriptions • Forecasted current customer usage & growth • New customer projects • New customers

13. ETS Rate Methodology cont. • Pessimistic and optimistic forecasts • Staffing assumptions • Forecasted external • Forecasted overhead costs

14. Service Rate Development Pricelist & Rates

15. ETS Rate Model and Project Timeline

16. ETS Services Lines • Application Services • Application Delivery • E-Government • Data Network Services • Local Area Network • State Network Access • Data Storage Services • Backup • Data Storage

17. ETS Services Lines cont. • IT Professional Services • Managed Computing Services • Collocation • Hosting • Workplace Productivity Services • Computer Lab • Desktop Services • Enterprise Email • Phone

18. Example of a Computing Rate

19. ETS Rate Development - Common Terms • FullCost ™ Tool • Tool used to define services, develop business plan, budget planning and calculate rates • Budget Units • An aspect of our planning tool that allows the ETS budget to be segregated by services offered • Internal Costs • Buy and sell services within the organization

20. Common Terms cont. • External Costs • Expenses paid outside the organization • Deliverables • A service or product sold to the customer • Cost Pools • A collection of costs spread across more than one deliverable or allocated to a specific service

21. Key Messages • CUB & ETS experience • Value • Collaborative Planning • Thank you!!!