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Today my battle against the state data center ends. Now, the battle begins.

February 1, 2010

After months of waging a spirited, public war on this blog and a more private one in the Legislature against the Washington State “Wheeler” Data Center project–a $300 million decision that I believe with conviction taxpayers will regret for decades–I am today formally ending my vigorous opposition.

It is time to accept that construction is well underway, the cranes tower over the Olympia skyline, and my post-2009 legislative efforts to stop the data center piece of the massive building project will not see victory.

I accept the reality that my opposition was too little too late. I gave it everything I had and, as a freshman lawmaker new to state bond issues, learned a great deal personally, politically and professionally.

On a personal level, I do believe that had I been in office longer than just a few short months when it all hit, I could have helped bring about a different conclusion. My thanks to the many legislators and others who offered insight, counsel and perspective and to those who stood against what I believe is a $300 million mistake. My deep and sincere apologies to those who may have felt my public opposition was disrespectful to their role and opinion or was simply technically wrong. It was not my intention to criticize any person, only the troubling lack of transparency, openness and access to critical public information that led to this unfortunate decision.

I remain deeply distressed that neither the Information Services Board–the legislative-driven panel charged with strategic oversight of our state’s technology–nor any other public entity conducted an independent analysis of the state data center project. There was no independent, second opinion of the technical and financial plan to the one provided by the state agency that stood to benefit from the expansive project. This was a profoundly serious mistake that we must not repeat.

To give you context to my decision to stop fighting the state data center, recently the Legislature’s non partisan, professional staff using independent bond counsel concluded that the state’s hands are effectively constrained due to the unique type of ’63-20 bonds’ that have been used in this transaction. These bonds effectively hand control over the project to a non profit entity and the state has limited ability to make changes during the construction process. In a cruel twist of fate, after the project is complete–and the full building is constructed–the state has great flexibility to modify the use of the facility as desired for its own interests. Thus, we could construct the $300 million facility in full and then change the use of the building without ramifications. And we may ultimately do just that. But for now, the massive data center hole in the Olympia ground marches on. I hope this is a teachable moment that there is a dark side to 63-20 bonds and the financing tool should be used with great care.

My opposition to the state data center has never been about anything other than a deep seeded belief that the technology decision around the 110,000 square foot data center is a vestige of 1980s and 1990s thinking. It is, in my view, inconsistent with the view of a vast majority of other states and the Obama Administration that are aggressively decommissioning large scale, publicly-owned, proprietary, hardware-centric data centers.

Cloud computing–in highly energy and cost efficient private data centers where virtualization and other approaches are built in from the outset–may not win in the marketplace of ideas today but it will ultimately be the standard worldwide in both public and private sectors. What we are paying for as a value-added infrastructure today will ultimately be a commodity where price and quality features are easily measured. I do not believe the public sector can successfully compete on price and quality with the private sector in this area, nor should they. I want state employees adding value by overseeing the safety and wellness of foster youth, nursing homes, schools and other uses of public dollars–not watching lights blink on clunky old 1980s databases.

In my view, the Wheeler state data center is on the wrong side of the technology history of tomorrow. The project still does not have a true ‘total cost of ownership’ from which we can judge apples to apples cost models for the state’s data. We are, in effect, building a $300 million solution before we truly understand the scope and scale of the problem.

The consultant Unisys will provide a comprehensive analysis of how to effectively implement state agency data into the Wheeler data center, and until that review is complete it’s hard to know how best to make this implementation efficient. My intuition is that the state data center is dramatically overbuilt with excess capacity for the state’s needs. But that conclusion must wait until the report is available in the coming months.

We will have a modern, 110,000 square foot state data center in Olympia blocks from the State Capitol building.

Now our challenge is to embrace the opportunity of this investment. To make bold, courageous, forceful, non political and technically-independent decisions as a state to aggressively consolidate our technology approach and spending.

I have an excel spread sheet in front of me with $54,166,000 in new requests for technology in the state’s supplemental budget, on top of the $170,230,000 we funded in the 2009-2011 two year biennial budget. And that is only what staff can find. There are clearly more dollars hidden inside various agency budgets. The effort to bring transparency to this journey is underway.

The ‘systems issue’ is that through this state data center strategy, the State of Washington has chosen to go down the path of complete and total internal consolidation of infrastructure, systems, networks, applications and services.

If we’re going to do it in this fashion, then let’s do it right. The new battle is to ensure that we embrace an enterprise-wide strategy. That is not the same thing as consolidation, although that will occur in some fashion, but it does mean we design a strategic statewide strategy together.

The Department of Information Services is our state’s IT department despite the fact that we have decentralized CIOs in each agency with their own budgets, staff and service delivery models. This model has done well on some projects, poorly on others. Like all agencies DIS has challenges internally with employees and externally with customers. Now, the people of DIS–who I believe want to be successful and are committed to doing their very best–are charged with leading our technology strategy into the 21st Century. We must support their efforts on all fronts. Their success belongs to us all.

The old model of widely divergent strategies, vendors, standards and systems is inconsistent with our new strategy of a strong, coordinated IT strategy. Agencies can no longer go it alone.

We need fundamental structural and systems reform of how we spend our $1.2 billion technology dollars a year in Washington. We need transparency and openness and courageous honesty–and vigorous public debate instead of private deals–about the best technology strategy going forward. We need a new look and a new outlook to how we embrace technology as a tool to serve citizens, not as an end itself.

A vigorous dialogue and debate is essential.

I did not run for the state Legislature to work on IT issues. But I cannot sit idly by as we spend billions without proper oversight or accountability while we eliminate modest scholarship programs for foster youth.

Technology is the largest category in the state budget that has yet to experience ruthlessly honest and independent oversight and analysis. It is time for radical systems change to unleash the potential that technology holds for the people of our state.

I am, of course, but one voice and many really great people in Olympia are working to profoundly transform our approach to technology in state government.

Join us in this new chapter. If you ideas, suggestions, concerns or insight, or if you believe I am on the wrong path, please share it with me publicly or privately.

None of us want technology to be a department down the hall.

The question today is not bigger government or smaller government but better government.

Your partner in service,

Reuven.

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5 Comments leave one →
  1. Hayden Patterson permalink
    February 2, 2010 8:09 pm

    Reuven,

    I find myself both appreciative and disappointed. I’ve been following your blog and associated articles & studies in reference to the data center project. I’m appalled at how an agency (DIS), who is responsible for representing IT best practices and enforcing ISB oversight and guidelines broke all the rules and somehow got away with it…. to the tune of $300 million of tax payer money; And, at a time when we can’t spare a dime. I also understand that $300 million is just for the building and we’ll need to invest another $100 million, or so, just to get started.

    I believe this building and technology direction will be outdated before it is complete. It won’t save a dime and will tarnish the reputation of IT in the State of Washington for years to come. …this is a shame. There are many, many great examples of solid technology investments, innovation and responsible spending throughout state government. DIS does not represent the best of IT in our govt. agencies…, in fact, I believe it is quite the opposite. **Disappointed**

    That said, I’m appreciative of the light you have shown on this unbelievable, irresponsible, embarrassing and unethical sham of a decision and “criminal” waist of our tax dollars. I am hopeful that your efforts will lead to additional scrutiny as this process moves forward and make sure we get some value from this building. Although, I don’t think it will be from data center consolidation; At least not on the scale envisioned by DIS.

    Thanks,
    Hayden

  2. Jean Davis permalink
    February 3, 2010 4:10 pm

    I would like to echo the comments from Mr. Patterson. As an IT professional and business manager, I see the poor technology approach and even worse managerial approach to the issue of this data center. It is a credit to you that you questioned it so vigorously and took a stand early in your legislative career. Some of the other ways in which we could improve the provision of state services are less clearcut so I encourage you to use this experience to delve into other issues.

    It seems to me that legislators are such easy marks for becoming advocates for NEW programs but usually not tenacious at examining existing programs and services for better results. Hope you can pursue more improvements in existing programs and services.

  3. Dwayne permalink
    February 3, 2010 7:37 pm

    I would like to see the how you compare this DIS/ISB Data Center “issue” with (the former) Center for Information Services (CIS – the “DIS” for Community & Technical Colleges) “Re-hosting” project that wasted $12.5M and held up advancing and re-designing systems to support student success in the State’s Community & Technical College system for almost a decade – the most critical moments to the success of that project happened to be while you where on the State Board for Community and Technical Colleges (SBCTC).

    Remember when it was finally killed how open and transparent that was?

    Seen all those news items related to students not getting their Financial Aid checks (and ending up homeless in some cases) due to computer system issues at local Community Colleges lately?

  4. February 4, 2010 12:18 pm

    Dwayne,

    Actually I think the rehosting project wasted $19 million, not $12.5 million. It was a total, complete disaster and I’m disgusted that it took my efforts on the state board to help kill that project.

    Thanks for your note.

    Reuven.

  5. Thomas Lawrence permalink
    February 9, 2010 6:55 am

    I am sorry the fight is over concerning the data center, but please keep up the fight for responsible spending in IT. The one question I have with the post is the vendor chosen to provide the planning for the new network in the Wheeler data center. I hear from some friends in the industry that Unisys wasn’t chosen, but INX was. INX is known to be a Cisco-only shop, thus it looks like DIS will be following its pattern of sticking with what it knows and not what is best.

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