•  Janet Cloud Services frameworks • Knowing IT costs to make informed decisions • The outputs you will receive • Benchmarking with peers • How Janet works with you • Our charges • Modelling costs of cloud vs in-house • Questions & discussion

1. The “Financial X-ray”
of IT Services costs
Dan Perry
Director of Product and Marketing
dan.perry@ja.net

2. • Janet Cloud Services frameworks
• Knowing IT costs to make informed decisions
• The outputs you will receive
• Benchmarking with peers
• How Janet works with you
• Our charges
• Modelling costs of cloud vs in-house
• Questions & discussion
Synopsis

3. • University of Huddersfield
• Newcastle University
• De Montfort University
• University of Lincoln
• Imperial College London
• College of Haringey and North-East London
• Oxford and CherwellValley College
• Loughborough University
• University of Leicester
• Portsmouth University
• Lancaster, Sheffield, Oxford starting in June 2013
Work completed / in progress / coming up

4. The Financial X-ray
example outputs

5. 1. It’s a diagnostic tool, not a medicine.
2. It’s not an audit.
3. A standardised approach permits benchmarking.
4. Working in close collaboration with your Finance
and IT colleagues is essential.
5. We perform detailed analysis but keep the amount
of time you need to spend proportionate.
6. Developed by Janet with our HE-FE customers.
Financial X-ray: in summary

6. Costs of your IT Services, at a glance
• A standardised
taxonomy of IT
services and platforms,
developed with UCISA,
tried and tested at
several HEIs and FECs.
• Total absorption costs:
pay + non-pay +
overheads.
• Activity based costing,
analysis of pay and non-
pay costs.
• Covers central and
devolved IT costs.

7. IT platforms that enable IT services
• End-users do
not interact with
platforms
directly.
• IT Platform
costs must
ultimately be
absorbed into IT
Service costs.
• We can tell you
the annual
running costs of
your data
centre.

8. Headline costs for delivering IT services
• “How much of our IT spend
has a direct bearing on our
students’ experience?”
• “We didn’t realise it was
costing us so much.”
• “We didn’t realise our peers
are investing much more.”

9. How much are our peers investing in IT?

10. 1. Prior to visit: initial data collection by email.
2. On campus for 4-8 days…data analysis performed
by a firm of Chartered Accountants with detailed
experience of the Research & Education sector.
3. Initial findings presented to the Director of IT and/
or Finance on the last day on campus.
4. Further analysis and report writing back at base.
5. Possible follow-up visit.
6. Detailed final report.
How Janet works with you

11. Charges for the
Financial X-ray service

12. Turnover of institution Fees till 31st Dec 2013
FE College or University up to £49m turnover £4,000 + travel +VAT
FE College or University of £50m to £149m turnover £6,000 + travel +VAT
University of £150m to £299m turnover £8,000 + travel +VAT
University of £300m to £499m turnover £10,000 + travel +VAT
University of £500m+ turnover
(except Oxford & Cambridge)
£12,000 + travel +VAT
Scale of charges

13. In-house vs cloud
data centres:
Investment appraisal model

14. Data centre investment appraisal
• Swiftly
compares
costs of
building or
refurbishing an
in-house DC
vs Cloud.
• A complex
Excel model
underneath
but as easy to
use as an
online
mortgage
calculator.

15. Data centre investment appraisal
• Covers the
key cost
drivers for
in-house
and cloud
DCs
• Developed
with
Logicalis
but the
model is
vendor
neutral.

16. Data centre investment appraisal
• Classic DCF /
NPV
investment
appraisal.
• Covers all
relevant data
centre costs.
• Model is freely
available to all
Janet
customers on
request.

17. Janet, Lumen House
Library Avenue, Harwell Oxford
Didcot, Oxfordshire
t: +44 (0) 1235 822200
f: +44 (0) 1235 822399
e: Service@ja.net