1. Challenge
IT division operating costs are at high levels

2. Relocation
Move operations to location were costs are lower

3. Assets
 Resources – Office, Furniture
 Staffing – Employees, Salaries
 Technology – Equipment,
Hardware, Software, Applications

4. Division Analysis
 Assessment
 Comparison
 Identification
 Presentation

5. Time Line

6. Demographics
 450 Employees
 Offices in 14 States
 Technology
 Support Operations

7. Office Locations
 Arizona
 California
 Delaware
 Florida
 Illinois
 Indiana
 Louisiana
 Michigan
 New Jersey
 New York
 Ohio
 Oregon
 Pennsylvania
 Texas

8. Finance
Information
Technology
Human
Resources
Real Estate
Groups

9. REAL ESTATE TEAM
 Brent Kelley – Project Manager
 Amit Atrey - DBA
 Kavita Ahuja – Business Analyst
 Chris Francia - Architect

10. Calculation
 Four sites in each location
 Price = Average of four (single)
 Price = Average of four (combined)
 Cubicle size 8x8 manager
 Cubicle size 8x6 non manager
 Additional 5%

11. State Individual Combined
 New York $6,689 $81,312
 Arizona $2,639 $29,948
 California $2,358 $53,187
 Florida $2,096 $20,457
 Delaware $1,865 $24,387
 Texas $1,803 $23,893
 Louisiana $1,704 $22,584
 Michigan $1,544 $23,239
 New Jersey $1,525 $18,539
 Oregon $1,420 $18,820
 Illinois $1,284 $17,020
 Indiana $1,025 $13,583
 Ohio $827 $10,965
 Pennsylvania $790
$10,474

12. Office Furniture
 Management Furniture Cost
$ 90,000
 Non-Management Furniture Cost
$ 321,300

13. Individual Office Location

14. Combined Office Location

15. HUMAN RESOURCE
TEAM
 Paul Roethele – Project Manager
 William Maw - DBA
 Abdulkadir Moallin – Business
Analyst
 Jerry Mudd - Architect

16. Challenges
 Employee relocation
 Salary commensurate with location
 Incentive relocating
 New employee acquisition
 Calculate cost savings

17.  Compare Salary/ Position analysis
from 14 states
 Employee survey
 Factor potential impact to other
departments
 Relocation costs
Requirements

18. Four Top Positions By Location

20. IT TEAM
 Josh Huber – Project Manager
 Dustin Lutz – Network Architect
 Joe Baldwin – Business Analyst
 Clayton Deringer – Database
Admin

21. Challenges
 Research and Develop a
comprehensive database that will
track all IT assets.
 Track location and cost at a
granular level for all IT assets.

22. Solution
 IT group developed an excel
spreadsheet that analyzed all the
states separately.
 A summary sheet delivers an
overall cost for IT assets at all
fourteen locations.

23. Asset Locations
PrductID ProductName ProductType ProductCategory CostPerUnit
1 DL 580 (HP) Server Server Hardware 7680
2 DL 380 (HP) Server Server Hardware 2149
3 D63012 Dell Laptop Computer Hardware 830
4 19" Widescreen LCD Monitor Hardware 165
5 Docking Station Docking Hardware 196
6 Blackberry Phone Phone Hardware 100
7 i265 by Motorola Phone Hardware 25
8 Cisco 7975 G Phone Hardware 650
9 Cisco 7906 G Phone Hardware 150
10 Cisco CallManager Service Software 12000
11 Cisco Catalyst 3750 Switch Hardware 7500
12 Cisco catalyst 6500 series Switch Hardware 9000
13 Enterprise Server 2003 Service software 10000
14 Ethernet cable Data Transfer Hardware 0.25
15 T1 Lines Data Transfer Hardware 359
16 Fiber Optics OC3 Data Transfer Hardware 5425
17 HP Laserjet P2015dn BW Printer Hardware 250
18 HP Laserjet 3600n Color Printer Hardware 550
19 HP 4345 MFP Multifunction Printer Hardware 1800
20 Xerox 232 Multifunction Printer Hardware 5700

24. Location Cost Analysis
State Per Month Per Person
 New Jersey $7018.54 $360.80
 Delaware $7018.54 $360.80
 New York $7018.54 $360.80
 Pennsylvania $7018.54 $360.80
 Florida $6672.04 $385.75
 Louisiana $6672.04 $385.75
 Texas $6672.04 $385.75
 Michigan $6563.71 $382.25
 Illinois $6563.71 $382.25
 Indiana $6563.71 $382.25
 Ohio $6563.71 $382.25
 Arizona $6563.71 $382.25
 California $6563.71 $382.25
 Oregon $6563.71 $382.25

25. IT Asset Summary $94,036.28/mo
Item Quantity Unit Cost Total Cost Life(mo) Locations Monthly Rate Paid By All Locations
DL 580 (HP) Server 35 $7,680 $268,800 36 2 $7,466.67
DL 380 (HP) Server 40 $2,149 $85,960 36 2 $2,387.78
D63012 Dell Laptop 450 $830 $373,500 36 450 $10,375.00
19" Widescreen LCD 450 $165 $74,250 36 450 $2,062.50
Docking Station 450 $196 $88,200 36 450 $2,450.00
Blackberry Phone 140 $100 $14,000 24 140 $9,683.33
i265 by Motorola 72 $25 $1,800 24 14 $3,675.00
Cisco 7975 G 154 $650 $100,100 60 154 $1,668.33
Cisco 7906 G 310 $150 $46,500 60 310 $775.00
Cisco Call Manager Service $12,000 60 450 $200.00
Cisco Catalyst 3750 16 $7,500 $120,000 60 450 $2,000.00
Cisco catalyst 6500
series 2 $9,000 $18,000 60 450 $300.00
Server 2003 150 $10,000 $1,500,000
Ethernet cable 133000 $0.25 $33,250 36 $33,250.00
T1 Lines 14 $359 14 $5,026.00
Fiber Optics OC3 2 $5,425 2 $10,850.00
HP LaserJet P2015dn
BW 28 $250 $7,000 36 14 $194.44
HP LaserJet 3600n Color 14 $550 $7,700 36 14 $213.89
HP 4345 MFP 7 $1,800 $12,600 36 7 $350.00

26. FINANCE TEAM
 Ryan Mendoza - Project Mgr
 Yusuf Abdulkarim - DBA
 Pete Silon – Business Analyst
 Mark Osei - Architect

27. Challenges
 What data is relevant to finance?
 How do we present this data?
 How can we assist management in the
decision making process?

28. Solutions
 Selected informative data.
 Examined what is valuable to
management.
 Compiled relevant spreadsheets &
charts.

29. Real Estate Cost By State
State
Cost

30. IT Cost By State
State
Cost

31. Salary Cost By State
State
Cost

32. Total Cost By State
(Total Cost = Salary + IT + Real Estate) State
Cost

33. Example Recommendation
Savings of $2.9 Million over 3 years!
• NJ closed, all employees and equipment moved to LA

34. Q & A Session