ORDINANCE _________________

AN ORDINANCE related to the Department of Information Technology; removing a budget proviso that restricts an appropriation in the 2007 Adopted Budget, accepting the summary business case presented by the Department of Information Technology, authorizing the next phase of planning for the Technology Infrastructure Optimization project; and authorizing the carry forward of the 2007 appropriation for this project in the Department of Information Technology's Technology Leadership and Governance Budget Control Level into the 2008 fiscal year.

WHEREAS, the 2007 Adopted Budget provides $1,030,000 to the Department of Information Technology (DoIT) for the Technology Infrastructure Optimization (TIO) project; and

WHEREAS, the approach to planning for the TIO project is to develop, in two phases, a comprehensive plan for implementing a migration to an integrated software platform for the City's email and file/print infrastructure; and

WHEREAS, in adopting the 2007 budget, the City Council passed Green Sheet 96-1-A-1, which includes a budget proviso restricting the expenditure of an appropriation of $1,030,000 in DoIT's 2007 Adopted Budget to $374,000 for planning the TIO project; and

WHEREAS, the TIO proviso stated the Council's intent to lift the proviso provided that DoIT presents a compelling business case and management plan for the project; and

WHEREAS, DoIT has provided the Council with a series of research papers addressing issues identified by Council staff; and

WHEREAS, DoIT has produced a "Summary Business Case," which presents an overview and analysis of all studies and research papers previously provided to the Council, includes a management plan for TIO, and makes recommendations for implementing a migration to an integrated Microsoft email and file/print software platform; and

WHEREAS, DoIT is ready to begin Phase Two of planning for the TIO project; and

WHEREAS, DoIT has satisfied the requirements set forth in the Council's 2007 budget proviso; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The restriction imposed by the following budget proviso is removed, and it is no longer a restriction for any purpose including for Subsection 1(b) of Ordinance 122298.

Department Green Sheet Proviso Description BCL

Department of 96-1-A-1 Restricts spending to no more than D2200 Information $374,000 of the $1,030,000 appropriated Technology in the 2007 Adopted Budget for the Technology Infrastructure Optimization project until authorized by future Council resolution.

Section 2. The City Council hereby accepts the "Summary Business Case" attached hereto as Exhibit A and authorizes the Department of Information Technology (DoIT) to proceed with Phase Two of planning for the Technology Infrastructure Optimization (TIO) project.

Section 3. Any portion of the $1,030,000 appropriation in the Department of Information Technology's Technology Leadership and Governance Budget Control Level for the TIO project, not spent or encumbered in 2007, shall not lapse at the end of the 2007 fiscal year but shall automatically carry over into the 2008 fiscal year until fully expended, abandoned or reappropriated to other authorized activities; provided, however, that the appropriation shall lapse at the end of the 2008 fiscal year unless carried over further by a future ordinance.

Section 4. Any act pursuant to the authority and prior to the effective date of this ordinance is hereby ratified and confirmed.

Section 5. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2007, and signed by me in open session in authentication of its passage this _____ day of __________, 2007.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2007.

_________________________________

Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2007.

____________________________________

City Clerk

(Seal)

Exhibit A. Summary Business Case

Technology Infrastructure Optimization (TIO) Summary Business Case

TABLE OF CONTENTS

Executive Summary 1

The Business Problem 1

Recommended Solution 2

Recommended Implementation Strategy 2

The Request to Council 2

The Summary Business Case 3

Introduction 3

How Did We Get to a Summary Business Case? 3

1. Why A Migration Is Needed, and Why Now 4

Scope: Email and File/print 4

Background 5

The End-User Computing Infrastructure 5

Consolidation in the Marketplace 6

Problems and Opportunities 7

Why it is Time to Migrate 8

Linkage to Microsoft Office 9

2. The Options 9

Email and Calendaring 10

File/print 10

3. Evaluation of the Options 11

Market Analysis 11

Business Case Analysis 12

Findings 12

Limitations of the Business Case 12

Conclusions from the Business Case 13

4. Recommended Strategy and Management Plan 13

Implementation Strategy 13

Management Plan 14

Appendix 1: The Impact of the Mixed Environment on Support Staff 16

Appendix 2: Third Party Applications 18

Executive Summary

Most City workers rely on personal computers to get their jobs done. The ability to send email messages, manage calendars and create and manage documents is at the heart of many City employees' everyday work life. Email and file/print software provides a foundation for much of the City's service infrastructure and must work smoothly with other technology investments including major business applications.

The Technology Infrastructure Optimization (TIO) project addresses whether the City should replace our current multi-vendor, outdated email and file/print infrastructure with a standard set of integrated software products. The default alternative is to continue on the current path, requiring more investment and further division of the infrastructure.

This paper summarizes the work done to analyze and assess the City's opportunity in making this decision. It is presented in support of a request to lift the proviso on current budget dollars so we may proceed with detailed planning and prepare a 2009/2010 budget submittal supporting the migration to an integrated email and file/print platform.

The Business Problem

The City's current email and file/print software comes from two vendors, Novell and Microsoft. These products are not integrated and must be continually patched, upgraded and maintained so employees can use them. Converting to a standard email and file/print software platform will address a significant number of problems and opportunities, including:

* Reduce time and effort spent by support staff to maintain two systems. The burden of making Novell and Microsoft software work together smoothly is currently placed on support staff. Products from a single source are integrated by the vendor. Appendix 1 shows some examples of the problems we face today.

* Eliminate redundant products. The City maintains redundant products that can be eliminated by adopting an integrated platform.

* Increase options for third-party applications. Many business applications (Summit, Blackberries, voice mail and many more) integrate with email and file/print software. Vendors write software to be compatible with leading email and file/print products, including Microsoft. It is difficult to find vendors who are compatible with Novell. Appendix 2 lists some specific examples where our choices have been constrained.

* Allow the City to move forward with new technologies. Other organizations are able to deploy a range of new technologies in their businesses to address business problems. These include collaboration software to make workgroups more productive, and integrated communications to support users at their desks, in the field or on the road. These technologies are more difficult to implement with a mixed infrastructure.

* Keep us from making investments in divergent directions. Novell products are making a transition to the Linux operating system, which is not widely used in the City. If the City stays with Novell, we will eventually have to convert that part of our system to Linux or invest in another direction.

* Avoid risk from a major vendor. The decision to implement Novell email and file/print products was made in the mid 1990's when the company was a leading contender in email and a dominant player in file/print. However, Novell's email and file/print products have steadily lost market share for the last decade. Novell continues to struggle technically and financially, while Microsoft continues to grow and expand its product offerings.

Recommended Solution

The last eighteen months of investigation indicate that the best course for the City is to adopt an integrated platform based on Microsoft products. This recommendation is based on business case analysis, existing investments, the City's strategic directions for technology and trends in the software marketplace. An integrated software platform will address current integration problems, allow us a broader range of third-party products and new technologies, and, in the long run, reduce costs and support burdens.

Replacement of the current system will take approximately four years because it involves nearly every one of the over 10,000 computers in the City, most department systems, and thousands of applications. The effort is of similar magnitude to upgrading a major application like Summit or HRIS. The decision on direction must be made with enough time to adequately plan and execute a controlled conversion and avoid more costly piecemeal transitions as departments move forward.

Recommended Implementation Strategy

The City has an opportunity to migrate to an integrated email and file/print infrastructure in coordination with upgrades to another major City investment, Microsoft Office (MS Office). MS Office has been the City's standard office software suite for over a decade, providing word processing, spreadsheets, presentations, graphics and other capabilities. The Outlook component of Office is required for implementation of Microsoft email. The 2009/2010 biennium represents an optimal time to migrate to an integrated Microsoft email and file/print platform. Therefore, the recommended strategy is to:

* Upgrade to the current version of MS Office in 2009/2010, standardizing end-user computers across City government. This will include the Outlook email client.

* Convert the email system to Microsoft Outlook and Exchange. Email and calendaring must move in a synchronized fashion in order to continue working smoothly.

* Convert the currently mixed file/print system to a standard Microsoft Windows platform from 2009 to 2012. The transition will occur as current servers are replaced, conforming to a standard design. Spreading the migration over four years will lessen impact on departmental budgets, utilizing funds that would normally go toward replacing servers as part of normal maintenance.

The Request to Council

In order to implement this strategy, the Council is asked to:

* Review and approve the scope, strategy and timeline for migration of the email and file/print infrastructure as described.

* Lift the proviso on $676,000 in 2007 budget dollars in order to accomplish detailed planning with departments. This transition planning will result in a proposal for the 2009/2010 budget.

The Summary Business Case

Introduction

As with a car or a house, email and file/print systems must be continuously maintained with an ongoing series of upgrades, repairs and adjustments. Maintaining the City's email and file/print capability is a matter of making an ongoing series of repairs and adjustments in order to continue to function. The City currently maintains an email and file/print infrastructure from two different vendors, Novell and Microsoft. The day-to-day difficulties of supporting a divided platform are buried in maintenance budgets. City staff spends undue time and effort getting pieces of technology from different vendors to work together, sometimes jury-rigging components to keep systems functioning. Adding to the frustration is the realization that there are redundant capabilities among the various systems.

The current system is less than optimal, but the City needs to make ongoing changes to stay current. If we do not alter our direction, future changes will include a major upgrade to Novell products as they de-emphasize support for existing products or discontinue them altogether. This will force us to move to a new operating system, Linux. Staying with the current mix of systems will absorb significant funds for normal maintenance and upgrades and will not advance the City's capabilities.

If the City were to make a fresh investment today, there would be little question that we would acquire an integrated set of software from one vendor rather than selecting individual pieces of technology and making them work together ourselves. A better approach is to migrate to an infrastructure where the manufacturer has made sure the products work smoothly together. In technology jargon, adopt an integrated platform.

How Did We Get to a Summary Business Case?

This document summarizes a body of work initiated in early 2006, including the following:

* TIO Assessment. A feasibility assessment on converting the current system to an integrated platform was made in early 2006, with the participation of departmental experts in email and file/print. It assumed consolidation of infrastructure support staff and budgets into the Department of Information Technology via the Aligning City Technology (ACT) project, which did not move forward.

* TIO Business Case. A TIO Business Case was completed in August of 2006 by a team consisting of consultants and City staff. The Business Case was shared with Council Staff at the time of completion (August 2006). The business case did not assume the completion of ACT, but addressed the platform conversion across a broad range of products.

* Issue clarification on options and timing. A series of research white papers were written in the first half of 2007 to clarify specific issues in the TIO Business Case identified by Council Staff. These addressed the range of options available in the market, timing drivers behind the decision, Novell directions, and examples of problems and opportunities. In March, Novell was invited to present their side of this story with a Council Staff member in attendance.

This document draws from all of these documents and discussions and lays out the arguments for migration by showing the following:

1. Why a migration is needed and why now,

2. The options for going forward,

3. Evaluation of the options, and

4. Recommended strategy and management plan.

1. Why A Migration Is Needed, and Why Now

Scope: Email and File/print

The graphic below shows the scope of the email and file/print computing infrastructure in simplified form. The process begins when a City employee logs onto the network to access the file/print system and creates and document, then files it in folders that reside either on their own computer or on a server. The same user can log onto separate software to send email (which may include the document created and filed previously), view calendars and schedule meetings. Along the way, users interact with the Directory, which serves as a sort of phonebook, keeping track of passwords, users and access rights.

Figure 1: TIO Scope

Business applications like Summit, HRIS, Hansen, CCSS and others are inextricably linked to both email and file/print systems. Many applications use the email system to send messages and the directory systems to determine who has access rights. They use Word for word processing functions or Excel for calculation and reporting. Thirdparty business applications are engineered to be compatible with specific email and file/print software products.

Behind the scenes are many moving pieces, with dozens of software and hardware elements. Approximately 200 servers provide these capabilities to over 10,000 users. Thousands of City business applications operate on the same networks and must interoperate to varying degrees. This complex "ecosystem" of technologies must function smoothly; a conflict between a business application and email software, for instance, may render a computer useless.

For this reason, it is desirable to have standards limiting the variety of vendors and versions of software. Vendors typically integrate products across their own product lines. Mixing vendors increases complexity, making it harder to keep things working smoothly.

Background

The End-User Computing Infrastructure

The foundations of the existing email and file/print systems date back to the early 1990s. There were twelve different email systems in use in City of Seattle government before Novell GroupWise was deployed in 1994. Novell NetWare became the de facto standard for file/print in the early 1990s, during a time when that product dominated the market, although it was never adopted as an official City-wide standard.

Figure 2 The End-User Computing Infrastructure Platform

The City's end-user IT infrastructure has evolved over time. Figure 2 shows the current mix of products inside City government. Some departments did not adopt Novell NetWare for file/print, choosing Microsoft products instead. Today, about 30% of the City uses Microsoft for file/print, and 70% uses Netware. A redundant element of the infrastructure is directory software, which function like a phonebook, keeping the record of users, computers, applications and who has access to what. Although Novell's eDirectory product serves as the City's principal directory tool, the City has also deployed Microsoft Active Directory for about 50% of the City because many applications require it to operate.

Figure 2 illustrates that:

* Novell products represent a subset of the overall computing ecosystem. Most application servers, our Internet servers, the majority of desktop software, one of the directories and 30% of file/print services are Microsoft. Novell products are a far smaller percentage of the overall environment, comprising less than one third of the City's server computers. Microsoft products comprise the majority of software on desktop and laptop computers.

* The larger City computing platform is highly inter-dependent. Enduser hardware, operating systems and applications must work together smoothly. Applications are also delivered via desktop computers, so if the entire combination of hardware and software (or "stack") does not integrate, then City services can grind to a halt.

* The more vendors, the more complex the ecosystem. Each symbol on this diagram represents dozens of individual pieces of software and hardware, all of which must integrate. More complexity in the platform means more fragility, reducing overall reliability and placing the burden on staff to make fixes.

Consolidation in the Marketplace

The marketplace has changed since the original decisions behind email and file/print were made. In the 1990s, Novell held a significant portion of the email market with GroupWise and dominated the file/print marketplace with NetWare. As a company, Novell had approximately $2 billion in annual revenues. Today, Novell occupies a distant third place in a highly consolidated email marketplace. The then-specialized file/print capabilities of Netware have since been subsumed into operating systems like Windows and Linux. (Operating systems continually absorb services, just as you can now find pharmacies, banks and coffee shops inside grocery stores). Novell has shrunk to less than $1 billion in annual revenues. Contacts and inquiries with other municipalities indicate that the vast majority have already converted their email and file/print systems to Microsoft technology, or are in the process of studying that transition.

Novell has recently purchased one of the major providers of Linux software, and is in the process of making the transition to Linux as a foundation for the company's products. The Linux operating system represents a significant departure from the City's current IT investments. Implementation of Linux-based software would require retraining of staff and significant adjustments to the overall infrastructure.

Meanwhile, Microsoft products have approached dominance in the email and file/print markets. Microsoft's overall strategy is to provide an integrated platform for business, and a review of market share trends indicates that this strategy is succeeding.

Problems and Opportunities

The current email and file/print infrastructure is showing its age. Some of the major areas of opportunity or concern include the following:

* Excessive time and effort spent by support staff to keep systems working. The City expends substantial effort trying to keep products from the two major vendors working together. The ongoing burden of keeping these systems running together falls on the shoulders of City staff. DoIT staff supports approximately 20% of the City's computer users. Appendix 1 contains examples of problems DoIT staff encounters in keeping the two environments working smoothly.

* Redundant products. The City maintains two directories, one from Novell and one from Microsoft. User names and rights must be maintained in each, and the two coordinated. This is labor intensive and prone to error. The City also buys and maintains separate system management software to perform maintenance and problem handling for the two product sets, each with appropriate staff and training requirements. Again, the two have to be coordinated, causing further problems.

* Expand availability of third-party applications to address City business needs. Most third-party software vendors write their applications to be compatible with leading platform vendors. Buying products that will work with Novell systems in particular can prove difficult. For example, the City's emergency response function (the Office of Emergency Management, public safety, the utilities, DPD and regional partners) is currently evaluating an application called eSponder to use email to alert and update first responders in emergencies. The application, however, only works with Microsoft email. Appendix 2 includes other specific examples.

* Allow us to move forward with new technologies. There are many capabilities now being built into the infrastructure itself that are difficult to implement in a split environment. Workflow allows the routing of items like purchase orders or personnel forms which must pass from person to person for approvals. Workflow typically integrates with the email system. Collaboration software enables work groups and teams to work together more efficiently. Various forms of communication, including voice mail, email, wireless, instant messaging and others, are being consolidated by email systems as the central point of management. These technologies have similar potential to revolutionize the way we do work in the City, just as technologies like the Internet, email, barcode scanning, wireless communications and others have done so in recent years. The City has difficulty in implementing these features in the current nonstandardized environment.

* Avoid making investments in divergent directions. Over time, Novell is heading toward the migration of GroupWise and NetWare into a different computing platform (Linux). While Linux has its place in the larger computing infrastructure, the City does not widely use it in the end-user computing area. Novell has stated that it will continue to support the current GroupWise and NetWare products, but it is unclear how long they will be able to do so, or how much attention will be paid to these older products. The City will eventually have to either convert to Linux-based products or choose another direction. Investments made in the Linux direction will further fragment the overall infrastructure and support staff.

* Avoid risk from a major vendor. Novell continues to struggle technically and financially. Revenues of Novell shrunk below $1 billion in 2006. This represents about half the revenue level of Novell in the mid-1990s when it undertook a series of acquisitions to compete against Microsoft (including the acquisition of UNIX, WordPerfect word processing and other desktop applications). Products such as GroupWise and Netware-Novell's key products for email and file/print-have consistently lost market share and momentum since that period. Although Novell currently has entered into an agreement with Microsoft that may buoy revenues, Novell could be threatened in the market as an independent company much more easily than Microsoft.

Why it is Time to Migrate

It is not likely that the current email and file/print systems will suddenly stop working. But it is not possible to stay with the existing mix of products indefinitely. Infrastructure technology must be upgraded on a continual basis to remain functional. Without upgrades, it will be too difficult to maintain integration between the many pieces of technology that must stay in synch to provide the computer support necessary for the City's workforce to do their jobs. If the City stays on its current path, it will need to either follow Novell's upgrade path or convert to a different vendor altogether. The question is therefore not if the City needs to migrate, but when.

Using available research material, DoIT assembled industry perspectives on timing issues for the TIO decision in a paper supplied to Council Staff. The paper concluded that Novell was likely to force customers to transition to Linux in the near future. As Gartner Group said, "By the end of 2008, Novell will no longer be enhancing the NetWare kernel in OES [Open Enterprise Server, the current version of the NetWare product] (80% probability)." And "By the end of 2010, all users will be compelled to move to the Linux kernel version of OES (70% probability).1"

Novell was invited to give its side of the story and did so on March 6, 2007, with a member of Council Staff in attendance. During that meeting, Novell made assurances that the City's current Novell products would continue to run as they do now.

Novell's ability to deliver on these promises will depend on its position in the market. In terms of Linux and other services, this position is favorable. However, the core products in the email and file/print sectors (GroupWise and Netware) have been declining in market share since the middle 1990s.

Converting this highly complex set of systems will take a period of years, requiring considerable planning and coordination as well as the conversion of over 10,000 users and thousands of dependent applications and systems. The most efficient approach for the City is to plan the migration around other technology upgrades and replacement cycles. It is therefore important to begin the work of planning the conversion to get City departments and staff focused on the task, and to make sure that our future investments are in line with an overall design. Without an intentional design and strategy, City departments may choose to migrate in different directions, driven by the needs of individual applications. This will result in needless expenditures for the City.

Linkage to Microsoft Office

Microsoft Office (MS Office) has been the City standard for word processing, spreadsheets and other end-user functions for over a decade. MS Office as a product includes Microsoft Outlook, the userside software that provides email. City users are currently on versions of Office ranging from MS Office 97 to MS Office 2003. The City needs to upgrade Office to a more current version now. An upgrade of the MS Office client is an opportunity to make the transition in the email platform by deploying Outlook. Doing so will standardize the desktop computer environment across the City.

Given that the City will be likely to have to make conversions to existing products in the foreseeable future, and achieving a migration will take four years or more, it is prudent to begin making investments in the direction of an integrated platform.

2. The Options

Given the sometimes rapid changes in technology markets, how does the City know it has considered the right options? The short answer is because, as markets mature, consolidation tends to increase. Email and file/print are mature markets, with only a few viable vendors in each category. In the early 1990's, the City of Seattle ran twelve different email systems and the market for email software was crowded. Today, there are only three vendors the City might consider. The file/print market segment has been squeezed down to two significant players.

In order to be considered a viable option for the City, an alternative must have the following attributes:

* Significant market share. Platform transitions are expensive and time consuming, so it makes sense to select a product that has a significant market presence. High market share indicates that a product will be more stable over time, enhanced through subsequent versions and may become a de facto industry standard. Most existing City IT standards are based on market dominance, including the Windows operating system, Microsoft Office, Oracle and Microsoft SQL Server database products, Cisco networking equipment and ESRI for GIS.

* Continued technical momentum. Products need to show a track record of continual improvement, with regular upgrades and additions to their feature set, to remain viable in the market. Products that stagnate become more difficult for City IT staff to support and do not attract staff interested in working with them.

* Compatibility with existing investments. The City's IT ecosystem is broader than email and file/print. These systems must work smoothly with desktop software, systems management, security software and business applications in an integrated "stack." Conflicts in the "stack" mean end users cannot do their jobs.

* Availability of trained staff. Products require staff support. If trained people are not currently on staff they must be re-skilled or

hired. It is harder to attract and retain qualified staff for products that are no longer in the mainstream of technology. Products without "mindshare" are not attractive to job seekers who want to maintain long-term employability.

Email and Calendaring

The email and calendaring market segment has undergone a shakeout, such that few viable options exist. The options considered were:

* Microsoft Outlook and Exchange. Microsoft has approximately 47% of the market and growing. These products maintain technical momentum by integrating additional features with each new release towards the goal of making Outlook and Exchange the enterprise communications hub.2 Products are integrated across the range of Microsoft offerings. Microsoft's market dominance and proximity to Seattle help assure availability of staff. Most third-party software packages prioritize compatibility with Outlook and Exchange.

* Novell's GroupWise. Our current product has about 5% of the email

marketplace. Novell hopes that a new version of GroupWise may reverse this trend. Technical momentum has flagged, as has availability of staff and compatibility with third party software vendors. Although the City currently has trained staff, finding people to work on GroupWise has become more difficult, and is likely to become more so in the future. Integration with existing investments and third party software is a continuing problem.

* IBM Lotus Domino. Domino has approximately 42% of market share for email. The fatal flaw with Domino is its lack of compatibility with the existing City of Seattle infrastructure. Domino represents a radical change in infrastructure and would necessitate significant alterations to business applications. Staff availability is also a problem. For this reason, Domino was not evaluated in the business case.

* Open Source email. Open source alternatives offer a much more restricted set of features than the leading vendors. The companies in this segment of the market are much smaller, without significant longevity or market share-no one vendor has more than 1%. Staff availability is unknown. These vendors represent too great a risk.

Microsoft Outlook/Exchange and Novell GroupWise were the two products evaluated in the Business Case (from August 2006) for email services. Lotus Domino is not a realistic choice, based on the amount of change required. Open Source alternatives are not stable or complete enough to consider.

File/print

When Novell began to produce the NetWare product, network operating systems were specialized and distinct from general application or server operating systems. Over time, file/print services have been subsumed into the major operating system products. NetWare's competitors are now the Windows and Linux operating systems.

* Microsoft Windows Server. Microsoft has almost 70% of the market share for server operating systems. This market share is growing. As with email, Microsoft has technical momentum and trained staff is available within the City and in the marketplace. Many of our existing application servers are Microsoft and 30% of our file/print environment already runs on Windows Server.

* Linux. Linux is one of the two leading server operating systems, with about 17% of market share and growing, mostly at the expense of its progenitor, UNIX. Linux is the chosen direction for future Novell products. Linux has not been widely adopted in Seattle City government, and there is less availability of staff and restricted compatibility with existing systems. This option was evaluated in the August 2006 business case since Novell is going in the Linux direction.

* Current Novell Netware. The current version of Netware constitutes its own operating system (i.e., a network operating system). Netware market share is unknown: the percentage is embedded in the remaining 6% that contains "everything else" beyond Windows Server, Linux and UNIX. Remaining with the current proprietary version of Netware was not evaluated in the business case because market trends and analysis indicate that the City cannot stay with NetWare over the long term without converting to Linux.

File/print has devolved into a market with two players: Microsoft and Linux. Again, Microsoft maintains the dominant position.

3. Evaluation of the Options

Two major methods of analysis have been applied to this question: a market analysis and a business case.

Market Analysis

A market analysis, evaluating the trends in technology as provided by major vendors, is critical for strategic IT decisions. The City has standardized many of its key infrastructure products based on market share and technology trends, including Microsoft Office and Windows, Cisco networking, Nortel phone systems, Motorola radios, ESRI GIS and others.

As indicated in the previous section, Microsoft is becoming the dominant vendor in both the email and file/print marketplace. Of greater significance, it is becoming the dominant vendor in the larger realm of end-user computing services, offering a product set that continues to grow in breadth and market share. Novell, on the other hand, has become a niche market software provider and cannot hope to supply the same sort of integrated platform as Microsoft. Novell's direction has gravitated to Linux and Open Source software, which largely depends on integration at the customer level. Novell can point to recent improvements in interoperability with Microsoft products, but this is not likely to ever result in the same level of integration expected across the Microsoft platform.

On the basis of market share, technical momentum, compatibility with existing investments and the trend toward an integrated platform, there appears to be only one choice in the marketplace: Microsoft.

Business Case Analysis

The TIO Business Case was completed in August of 2006 by a team consisting of consultants and City staff. This business case was built on an earlier feasibility assessment with the participation of departmental experts in email and file/print. The Business Case was shared with Council Staff at the time of completion (August 2006). As discussed in the Options section above, the Business Case compared two basic alternatives:

1. Continuation of the current mixed set of Novell and Microsoft products, with a transition to Linux for Novell products.

2. Migration to a Microsoft email and file/print platform. Two variations of this strategy were evaluated, differing only in implementation dates.

Findings

The TIO Business Case recommended a conversion to a Microsoft integrated platform in the 2009/2010 timeframe. This analysis was based on the lowest Net Present Value across options, as well as factors of risk, maintainability, compatibility with third-party applications and integration with the larger infrastructure.

Limitations of the Business Case

As with most major decisions, perspectives and strategies have changed in the course of this decision. The Business Case therefore made some assumptions which have been modified. These include:

* Scope. The TIO Business Case encompassed a broad scope, with more elements than the baseline email and file/print platforms, including system management, security, digital rights management, collaboration tools and governance initiatives. This broad scope was adopted in order to capture the maximum benefit from adopting an integrated platform. It was recognized that the ultimate scope of the project would need to be refined in order to arrive at a more accurate cost estimate of the migration.

* Benefits. The email and file/print infrastructure provide many services to users, but incremental improvements are hard to measure in terms of direct hard-dollar savings. While it is true that there are benefits to staff from an integrated platform, these savings would not result in net dollar savings unless staff was to be eliminated. Since there is more than enough for current staff to do, it is doubtful any positions would actually disappear. On the advice of an economist on loan from Seattle Public Utilities, the Business Case compared the two options on the basis of cost. The Business Case therefore compares the relative costs of providing these essential services across two different alternatives. Hard dollar savings from eliminating redundant software packages and servers were captured in the business case.

* Consideration of existing budgets. The costs reflected in the TIO Business Case do not net out budgets for regularly scheduled maintenance, such as server replacement, which typically occurs on a three or four year cycle.

* MS Office. The TIO Business Case did not include an upgrade to Microsoft Office. The City periodically upgrades Office to stay current. Microsoft email software (Outlook) is part of Office and can only be purchased as part of that product. The TIO Business Case made the assumption that Office, including Outlook, would be upgraded in advance of a migration of the email system.

Conclusions from the Business Case

The conclusions of the business case are still fundamentally sound in identifying the factors and economics in moving to an integrated platform. The business case did not identify the specific scope and implementation strategy for moving forward.

Because of time constraints in the 2007/2008 budget process, it was not possible to pin down a firm scope, involve departments in the process and establish more accurate costs in time for a budget submittal. Recognizing the need for more planning, $1,030,000 was placed in the 2007/2008 budget for continued work on TIO implementation planning to establish a final scope and budget submittal.

4. Recommended Strategy and Management Plan

There are many reasons to go forward with an email and file/print migration. From a market analysis approach, the clear choice is an integrated platform rather than the current piecemeal environment. The City has already invested heavily in Microsoft products and it makes sense from a strategic perspective to adopt a Microsoft platform.

Meanwhile, the City continues to make investments in upgrading the email and file/print infrastructure on an ongoing basis without fixing fundamental problems. Proceeding with a migration will take up to four years, so establishing a long term objective is timely. Migrating to a Microsoft platform is the better investment compared to upgrades in the existing mixed environment.

Implementation Strategy

The email and file/print migration should occur in coordination with other investments. The recommended implementation strategy is:

* Focus first on email migration. Email must move in a carefully coordinated way to make sure the City can continue to exchange email and perform calendar functions. Both email environments (GroupWise and Outlook/Exchange) will have to be maintained during the life of the migration with specialized software. Email should be the focal point for migration, and it should be accomplished in a centrally coordinated manner. To minimize the impact of maintaining two email systems, the migration should be limited to 2009/2010.

* Gradual migration of file/print. The file/print platform is already split between Microsoft and Novell and can be moved over time to a standardized environment. Staging the migration over a longer period allows migration within the normal replacement cycle for servers, softening the budget impact. Standards for the conversion will be set by the Chief Technology Officer, including a time limit

for conversion by 2012.

* Coordinate the email conversion with an upgrade to Office. The City should purchase and implement a consistent version of Microsoft Office (Microsoft Office 2007) which includes the Outlook email client for all City users.

* Limit the scope. The software infrastructure of the City has a broad list of features and services. This strategy limits the immediate changes to desktop standardization, email and file/print. This makes the migration more practical, will have less of an impact on ongoing operations and other business projects and will reduce budget impact. Changes to other features will be separately justified and implemented as departmental business needs dictate.

* Make a commitment to migration. The City departments' IT Directors are behind the migration to a Microsoft platform for email and file/print. Lifting the proviso for planning money for this project will enable departments to fully participate in devising a new architecture and implementation plan which can then be placed in the 2009/2010 budget proposal alongside other budget priorities.

The timeline below shows the proposed schedule for TIO planning and implementation, keyed to the 2009/2010 budget. Proceeding with this plan will allow City departments to participate in detailed planning and adjust budget submittals for 2009/2010 accordingly. Interim investments will be in line with the overall technical strategy and will not continue taking the City in divergent directions. This strategy opens the door for a wider range of third-party software options, new technologies to improve service delivery and more freedom on the part of support staff to focus on improvements rather than keeping systems integrated.

Figure 3: TIO Planning and Implementation Timeline

Management Plan

The City is in a good position to plan, coordinate and execute the conversion of email and file/print software. The City has a history of coordinating complex conversions and upgrades. Examples include the major upgrades of Microsoft software, such as the Windows 95/98 conversion to Windows 2000, which presented a fundamental change in technology that also affected many applications. Upgrades to Summit and HRIS are similar in scope to TIO, and also impact hundreds of users across vital business functions.

The City has a collective body of best practices around project management that will be applied to TIO. These include the use of experienced project managers, industry standard project management and system integration methodologies and use of independent quality assurance to monitor performance. The organization and effectiveness of the project will be monitored by the City's Project Management Center of Excellence. A project team and a Steering Committee will be formed including key decision makers and technical staff. DoIT's new Deputy Chief Technology Officer will assume management control of the TIO project.

It is currently expected that staffing will be mostly internal. A network of highly trained technical support staff currently maintain and coordinate the existing email and file/print infrastructure, and have done so for many years. Staff will be trained as necessary in the new technologies and consultants with deep expertise in email and file/print conversions will be brought in to advise us on design and testing issues during the Detailed Implementation Planning phase. Departments will need to commit key staff and budget dollars to make this happen.

Detailed Implementation Planning will give the City the necessary information to adequately design, cost and organize the implementation phase and prepare the 2009/2010 budget submittal. Meanwhile, existing efforts in the City, such as the ongoing expansion of Microsoft Active Directory and investments in systems management software, will proceed with an eye toward the long term plan of converting the core software. Acknowledgement of the long run objective will enable the City to make investments according to a thought-out strategy. Once the TIO project is approved to move forward as part of the 2009/2010 budget, implementation will proceed.

Appendix 1: The Impact of the Mixed Environment on Support Staff

The examples below illustrate the difficulties that support staff sees on a daily basis when supporting a mixed vendor computing platform. These examples were compiled by DoIT support staff providing services for approximately 20% of all City end users. These activities represent problems they encounter frequently.

1. Password resets. Directories govern users' ability to sign into networks and applications. The City runs two different directory products, Novell eDirectory and Microsoft Active Directory. Support staff now must synchronize passwords between the two directories to

ensure a can access files, folders and services while maintaining security. With just one directory, this problem goes away.

2. Security patches. Computer software must be continuously patched with updates from software vendors as security vulnerabilities are discovered. Support staff currently must update both Microsoft and Novell systems, then test the two of them individually and togethermore than double the effort required with a single vendor platform. Sometimes there are conflicts between the two vendor's patches. Microsoft patches are released after they have been tested with the Microsoft OS and systems, making testing easier.

3. Administration complexity. The City's networked computers are managed using various software packages to perform administrative tasks. Since we have both Microsoft and Novell software packages on each computer, they have to be managed using administrative software applicable to each. A network administrator must use two different administration tools to do something as simple as removing a computer from production to surplus. New users must be set up in both environments, using both different tools. Because both tools contain similar information, there are problems with errors and

inconsistencies. These administrative software packages must be purchased and maintained, driving redundant costs and staffing.

4. Problem resolution. Support staff must work in both the Microsoft and Novell environments to address the problems that inevitably arise in our computing environment. Vendor documentation and knowledge bases (which record typical problems and their solutions) often does not cover the complexities and conflicts of a mixed environment. Error messages sometimes do not indicate what they should. It is increasingly difficult to find pertinent information on problems in the mixed environment on message boards and technical support websites.

5. Directory software. The most prevalent database used for business applications in the City is Microsoft SQL Server. Thousands of applications, including all public-facing Internet applications, use SQL Server. Applications using SQL Server often require the use of Active Directory. Support staff must sort out the relevant access rights of each user for applications and file/print services between the two directories (Active Directory and Novell eDirectory). Coordination between the two directories is difficult. Utilizing one directory for both purposes would eliminate this difficulty.

6. Automated updates. End-user devices require constant updates to remain functional and secure on City networks. The most efficient way to update user computers is through the use of automated tools, which use administration tools and directories to perform their

function. Update tasks are more complex and time consuming due to the mixed environment, requiring more knowledge on the part of the support teams and increased testing. The risk of failed updates and glitches increases. Before a new application or service is deployed it must be tested against both systems individually and together, doubling the work and then some. On some occasions, conflicts between the tools make automated deployment very difficult.

7. Web servers. The City's Internet and InWeb services run on Microsoft's Internet Information Service (IIS) software. The City's web applications, such as utility bill payment, B&O tax payments and others rely on this technology. There are continuing problems in establishing secure connections between IIS and Novell's eDirectory. Currently, applications operate in a mode that is less than optimum with respect to security. Using Windows authentication solves this problem with appropriate encryption and security.

8. File system incompatibility. End users store data on their NetWare file servers that they then want to process in applications running on Windows servers. Making NetWare-based data available to Windows servers adds a layer of complexity and increases the time needed to support such configurations. Even accessing data on NetWare files systems via VPN requires the use of a Citrix client to "bridge the gap" adding more complexity and cost.

9. System operations. The two platforms have different specification which sometimes conflict. One example involves the use of USB memory sticks, often used to transfer files from one computer to another, such as a desktop computer to a laptop. Novell has a system

requirement that the first drive on your system is the "F:" drive. The USB standard takes the first "available" drive on a computer, and makes it a physical device. Support staff has had to build custom utilities to check for the existence of the F: drive as the first Novell drive to resolve issues that show up as problems.

Appendix 2: Third Party Applications

Most third-party software vendors write their applications and maintain compatibility for the leading platform vendors. Buying products that will work with Novell systems in particular has proved difficult. The following examples illustrate areas where we have encountered problems integrating with the existing environment, or where applications don't fit with current infrastructure:

1. SPAM and virus filtering of email. The City has recently engaged an outside vendor to receive and scrub the City's incoming email. This service promises to eradicate the SPAM that requires attention by all City computer users and support staff, as well as increase security by heading off viruses, which typically come in via email. Implementing this solution has proven to be extremely difficult because the vendor (Postini), though a leader in this field, does not have an existing interface into the GroupWise email environment.

2. Nortel voice mail. In 2006, the City upgraded its voicemail system. Integration of voice and email is an important emerging capability in the marketplace. Only one vendor offered integration

of voice mail and email for GroupWise. The limited choice of vendors led to selection of a product that was not well received by users. Many vendors deliver this service for Exchange/Outlook.

3. eSponder. The City's emergency response function (the Office of Emergency Management, public safety, the utilities, DPD and regional partners) is currently evaluating an application to use the Internet and email to alert and update first responders in emergencies. The application, however, only works with Outlook/Exchange.

4. Netmotion. Sprint Wireless is a service used heavily in Police, Fire and the utilities to provide reliable wireless communications. This service relies on the use of a product called Netmotion. The product works well with the Microsoft platform, but not well with Novell.

5. Blackberries. About 500 City staff carries Blackberry wireless communication devices, combining the capabilities of cell phones and computers, including access to email and applications. The RIM Blackberry is the City's standard mobile device, and it must synchronize with GroupWise. Blackberries were available on the market in the 2001 timeframe, but a reliable GroupWise connector was not available until approximately four years later. The connector to Outlook/Exchange was available immediately. Ongoing support of the Blackberry-GroupWise software is problematic; support staff, for example, must sometimes call the Exchange specialists at RIM to get help on GroupWise.

6. Duplex printing. Our printing environment requires the use of a third-party utility program in order to comply with the Mayor's initiative to reduce paper use. A program called PPP is necessary to make sure that printers default to dual-sided printing. Microsoft printing handles this easily.

7. DEA financial applications. In the DEA realm, the UPK application for PeopleSoft Training, SUNGARD Investment Software and others only work under Windows. Departments like DEA have to support file servers to run NetWare and separate Windows servers to support applications that cannot be integrated with Netware.

8. Network monitoring. Both Novell and Microsoft servers are monitored on the network using an open source product called Nagios and another called IBM Director. Windows servers (and other parts of the network) have software interfaces allow Nagios and IBM Director to work with them. The City presently has to configure convoluted solutions to monitor the general health of NetWare systems with these tools.

9. Patches and upgrades. All software needs an ongoing series of upgrades or "patches" in order to remain secure and functional. All levels of the infrastructure need these patches, from desktop operating systems to server operating systems, utilities and application software. The City currently does not have a patch management system that covers all the pieces of the email and file/print environment. The City has one for the Windows environment, but it does not cover Novell. This means that patches can be performed in an automated manner for Windows servers, but must be done directly by a system administrator for Novell servers.

10. Microsoft SQL Server applications and email. Thousands of applications in City government utilize Microsoft's SQL Server database. Many applications rely on the underlying email system in order to send messages when a specific event occurs. Server monitoring applications, for instance, send email alarms to a technician when the machine detects a problem. Microsoft does not support SQL Server mail messages through GroupWise (http://support.microsoft.com/kb/263556). This forces applications to send such messages using less capable methods (web services).

1 "Where To Go After Netware," John Enck, Gartner Group, 11/14/2005

2 "Microsoft's Exchange 2007 Could Set the Future of E-Mail," Matthew W. Cain, Gartner Group, 9/26/2006

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