FY2014 Allocation Explanation
In accordance with 22 V.S.A. § 902a, an information technology internal service fund is used to support activities of the Department of Information and Innovation (DII). The major funding source of this internal service fund is referred to as the DII allocation. The FY 2014 DII allocation was calculated by spreading common (enterprise) IT costs across state government based on the number of positions in each business unit. This is the same method as FY 2013. The position count used is from the Governor’s Recommended Budget, as submitted by departments in the budget development system (BDS) aka Vantage. The total positions in the state = 8841 (down 415). The total DII allocation for FY 2014 is $9,678,097, an increase of $2,460,474 compared to FY 2013. Part of the increase is a $203,343 deficit recovery.
The allocation increase is due to multiple things. The biggest are:
- DII will supply all Microsoft Office Licensing for the standard edition with software assurance for state employees starting in FY 2014. Taking advantage of enterprise licensing will reduce the overall cost to the state and ensure legal compliance with the software manufacturer. We will continue the discussion with your technology leaders at our next State Technology Leadership Team meeting (STLT). If you are interested in attending that meeting by phone, please let Darwin know.
- These licensing costs are not net new, i.e. they have been part of your costs/budget, and are now being shifted.
- DII will also supply desktop and laptop Windows operating system licensing with software assurance for the state.
- These licensing costs are not net new.
- Increase in network costs resulting from Tropical Storm Irene, sustainability investments, increased consolidation, and numerous new work locations.
Even though the allocation for common services is up, we continue to shift some previously allocated services to demand based services. As your technical leaders know, DII has transitioned to a “Private Cloud” service delivery model for data center resources such as virtual servers, storage, networking and backup recovery, and this year we are centralizing more licensing, driving overall costs down. DII is working with business units to develop sustainable cost models based on both business and technical requirements. The cost models referred to cover five years and provide supporting detail to the spreadsheet you received from DFM outlining your FY14 targets. Business managers, please use these models for budget planning, and let us know if you need a copy. The Infrastructure as a Service (IaaS) column (column P) on the spreadsheet from DFM should reflect an annual estimate that synchs with the DII cost model.
DII will continue to pay and allocate wide area network (WAN) costs for all of state government, and we have been consolidating local area networks (LANs) as well. Again, ensuring sustainability and optimizing costs.
Other allocated costs include Exchange Client Access Licenses (CALs), Symantec Information foundation licenses, SharePoint Server CALs, Windows CALs, network infection detection, and digital signature licensing.
It is important for business managers and technology supervisors to understand and collaborate on the impact of these changes on budgets. If your unit has no technical support, please coordinate with DII.
As in previous years, if you administer your own email system, i.e. if your email address is not email@example.com, you are effectively paying for two systems; the State email system and yours. To save money and take advantage of the economies of scale an enterprise system provides, we encourage you to migrate to the enterprise email system provided by DII. If not already on the migration schedule, feel free to contact DII to discuss the details.
Covered by DII Allocation
- Microsoft Office Standard Edition
- Enterprise Email including Archiving
- Enterprise Email Storage
- Enterprise SharePoint Server sites
- Windows Server CALs
- Windows Desktop Operating Systems
- Enterprise Digital Signature Solution (Silanis eSign)
- Network intrusion notification (FireEye)
Not covered by DII Allocation
- Microsoft Office Professional (you pay the difference if needed)
- Non-Enterprise Email Systems
- Non-Enterprise Email Storage
- Non-Enterprise SharePoint sites
- Other operating system CALs
- Non-Enterprise Digital Signature Solutions
- Other network infection protection
Each year, Finance and Management adjusts your budget target for the General Fund (GF) difference between the prior year’s DII allocated charge and the year you are currently budgeting. If your DII charge goes up by $10, and your GF percentage is 60%, your target will be raised by $6. Conversely, if your charge goes down by $10, your target will be reduced by $6. This year, due to the continued shift from allocated services to demand services, Finance and Management will consider cost differences in existing demand-driven services along with the cost differences in the allocation in determining your target. If you have any questions regarding this process, please contact your budget analyst.
If you have questions regarding your DII charges, demand services, or desktops support services, please email Darwin Thompson or call 828-1142.