Draft Estimating IT Infrastructure and IT Services
Original draft sent out for review for the GAO cost handbook section on estimating IT infrastructure and IT services. There is a newer version that has some adjustments to the WBS that should be public, distributed from the GAO web site soon. The WBS adjustments were done primarily by the Air Force Cost Agency to make the WBS more consistent with some of the services.
IT Infrastructure & Services Must Be Considered In Total Ownership Costs
Studies have shown that IT services outside the software development and maintenance (e.g. software maintenance costs, hardware cost, help desk, upgrade installation, training, etc.) can account for over 60% of the total ownership costs, Figure 1.
Figure 1: Relative Cost of IT Vs. Software Development Vs. Software Maintenance
Even systems such as ships, aircraft and mission control centers have a major IT infrastructure and IT services components to them. In fact, some IT systems encounter over 90% of their costs in the infrastructure and services required to support and run the system.
Yet when we read of costs, successes, failures, and challenges in IT systems the vast majority of the systems that are being referred to are the software portions only, ignoring the IT services and IT infrastructure components. Making matters more difficult for those estimating IT systems, there are numerous definitions of what composes IT Infrastructure. One useful, overarching definition is:
IT Infrastructure: “IT infrastructure consists of the equipment, systems, software, and services used in common across an organization, regardless of mission/program/project. IT Infrastructure also serves as the foundation upon which mission/program/project-specific systems and capabilities are built.”
Software development and maintenance costs are covered elsewhere in chapter 12. This section dedicates itself to the estimation of IT Services, IT Hardware systems, and IT facilities.
Unique Components of IT Estimation
IT estimation is, in some ways simpler than software development estimation since IT infrastructure and services are more tangible. However, IT estimation is wrought with issues such as what is the cost of the system engineering to define the IT system, how much computing power is needed to support a system; how many help desk personnel to support X users, containing cost versus spending on innovation, and quantifying the value versus the cost. Simply getting a quote from a vendor for an IT system is rarely sufficient. Even if such quotes could be trusted, they rarely include items such as internal application help desk, facilities, ongoing setup, etc.
Caution: Many vendors are currently featuring outsourced IT infrastructure either as a software as a service (SAAS) platform or just cloud computing. Outsourced IT infrastructure hardware can be viable if issues such as loss of control, security and potential resource sharing are acceptable. But outsourcing infrastructure does not usually eliminate the costs the ongoing IT services to provide users help desk, local computing, setup training and other infrastructure and services.
Estimating IT Infrastructure and IT Services Size with IT Infrastructure Points
As the table below shows, IT Infrastructure costs do vary with the size and complexity of the system supported. THIS IS ONLY A SAMPLE OF THE WHOLE APPROACH. I CAN PUT IT ALL IN BUT I SUSPECT IT SHOULD BE REMOVED SINCE IT IS NOT AN EVERYDAY USE BEST PRACTICE???
| Server Points | New Installation | Upgrade | Migration |
| Single Server | Low | Low | Average |
| Network Load Module | Low | Average | High |
| Cluster | Average | High | High |
| Server Unadjusted Syspoints | |
| Low complexity Servers | 15 |
| Average Complexity Servers | 25 |
| High Complexity Servers | 40 |
Major Drivers Associated With IT Estimation
Physical attributes that drive IT costs:
- Facilities
- Users of IT hardware and software
- Number of concurrent users
- Number of infrastructure hardware items
- Number of end user hardware and software items
- Number of software applications and services
- Number of databases
- Database size
- Physical and organizational entities
- Complexity of Infrastructure Environment (e.g. disparate platforms)
- Number of transactions per second
Other attributes
- Criticality/reliability of systems
- Usage patterns (transaction rates)
- Complexity of systems (either hardware or software)
- Experience with systems
- Expected service level (aka service level agreements)
- Process experience and rigor
-
Security requirements
Economic factors/considerations
- Years of operating
- Labor rates
- Leasing/purchasing agreements
- Outsourcing strategy
- Replacement/upgrade policies
Common Risks for Infrastructure Projects
The following set of risks was adapted from an Australian IT project management document.
| Schedule | Unscheduled changes/delays |
| Personnel turning up without notification | |
| Non-conformance – not starting/failures | |
| Reliance on external sub-contractors/organizations | |
| Technical | Unplanned/unapproved changes |
| Disasters | |
| New design not working | |
| Version control problems | |
| Hardware failure | |
| Software failure | |
| Incorrect images/version loaded | |
| Integration with existing systems | |
| Personnel | Changes of personnel – CUSTOMER/Vendor |
| Lack of skills/knowledge | |
| Not aware of policy/procedures Inadequate personnel to support help desk and deployment |
|
| Logistical/Equipment | Supply availability |
| Physical storage of equipment on arrival – security | |
| Contingency equipment availability | |
| User | Not aware of Vendor schedule/activities |
| Inability to perform core business activities | |
| Inability to perform non-core business activities | |
| User expectations | |
| Confusion about CUSTOMER/Vendor responsibilities | |
| Loss of data | |
| Project Management | Lack of detailed site information |
| Lack of reporting | |
| Unaware of Customer site requirements | |
| Absence of quality control/management process built into plan | |
| Absence of issue log/change request log/configuration management log | |
| Role confusion | |
| Lack of issue identification – trends | |
| Inconsistent project documentation Lack of IT process model (E.g. ITIL, ISO 20000) |
|
Scheduling IT Project (Non-Recurring)
The IT project involved the investment / development activities. Both labor and materials are included. Staff loading of IT projects is similar to software development during early architecture and design. Actual implementation and deployment can use more parallel personnel to execute the work.
Estimating IT Operations (Recurring)
IT recurring operations costs include costs similar to the maintenance of general fixed facilities. In additional facilities costs such as power, security, and general facilities support, IT recurring operations also includes purchased software licenses, training, technical refreshment, and various service level agreements.
Estimating Commercial off the Shelf hardware
The cost of hardware changes daily as does the requirement for computing power in items like servers. Designing with a 50% reserve in capacity is prudent since systems tend to grow.
Best Practices Checklist Estimating IT Systems
- Be sure to do an independent estimate, not just use vendor quotes
- Size systems with 50% growth in processing, to account for probable growth
- Evaluate virtualization versus physical hardware costs
- Account for costs of infrastructure and services not provided by SAAS vendors
- Identify and factor in risks: estimate the likely scenario
- Security can significantly increase the costs of IT
- If within estimating charter compare the value provided to the costs
Labor (Services) Categories
Identifying what labor categories are included or excluded
Management. Management includes the planning, staffing and tracking of projects. Also involved with the ongoing daily operational activities, ensuring resources are effectively being used and that services are being delivered.
Analyst. The analyst role is generally involved in the planning and definition of needs and requirements for IT projects and related support systems. The analyst is also involved in the ongoing support of systems, often serving as a bridge between the user or customer and the technical team. An analyst generally has domain or specialty knowledge of a certain type of system, technology or discipline which is used to apply technology to address business and user requirements. Some examples include:
Business Requirements Analyst
Business System Analyst
Business Process Analyst
UI Analyst
Support Analyst
Network Analyst
Telecommunications Analyst
Operations Analyst
Database Analyst
Security Analyst
Architect. The architect role is to develop high level design plans of systems so they meet the needs of the organization and comply with organizational polices. The architect can also be involved in formulating policies and plans that support the organization, particularly as they pertain to technologies used to carry out policies and procedures. Some examples include:
Systems Architect
Systems Engineer
IT Architect
Storage Architect
Network Architect
Data Architect
Technician. The technician role is primarily involved in the physical setup, support and maintenance of systems according to well defined plans and procedures. This includes system setup, installation, upgrades, and troubleshooting of problem areas. Some examples include:
Desktop/PC Technician
Network Engineer/Technician
Hardware Technician
Telecommunications Technician
Test/QA. The test/QA role is primarily involved with verifying the integrity and performance of systems being deployed and operated. As a part of this, the test/QA role will also develop test plans and procedures, collecting and tracking defect data and problem reports. This role will also serve as an auditing function to ensure compliance with policies and procedures. Some examples include:
IT Auditor
QA Analyst
Application Tester
Documentation. The documentation role prepares and/or maintains documentation pertaining to programming, systems operation and user documentation, including user manuals and online help screens. Some examples include:
Technical Writer
Report Writer
Online Help Publisher
Content Developer
Documentation Specialist
Training. The training role prepares and updates courseware and training materials. The training role is also responsible for conducting actual training classes or events.
Administrator. The administrator role is generally involved with the ongoing administration, maintenance and support of specific systems to ensure they are operating properly and effectively. An administrator will be associated with a specific system or type of system such as a platform, database, network, or a specific enterprise application. Managers of specific systems (e.g. License Manager, CRM Manager) to be part of the administrator role. Some examples include:
Network Administrator
System Administrator
Database Administrator
Enterprise Application Administrator
Security Administrator
Storage Administrator
Telecommunications Administrator
Computer Operators. Computer operators not included in the support of the IT infrastructure and IT services.
Indirect Support. Secretarial, reception, and other labor in support of the IT services and infrastructure personnel and systems.
Sample IT WBS
Note this WBS includes IT infrastructure and IT services only. Software Development and software maintenance are covered elsewhere in this guide.
1. IT Project (Non-Recurring)
1.1. IT Facilities (E.G Buildings, Flooring)
1.1.1 Infrastructure Site Construction
1.1.2 Operational site construction
1.1.3 Integration / test facility construction
1.2 Purchased Software (e.g. ERP system Procurement, Deployment, Licensing)
1.3.Purchased IT Infrastructure hardware (e.g. servers, switches, initial spares)
1.4. Project IT Services (e.g system architecture, training, hardware & software setup)
1.4.1 IT Systems Architecture / Design
1.4.2 Software / Database Services (e.g. deploying & supporting enterprise applications, databases, data migration, supporting middleware and software services)
1.4.3 Infrastructure Services (e.g. setup, deploy, test, checkout infrastructure systems such as servers, storage systems, & networks)
1.4.4 End User Services: (e.g. labor to setup & deploy end user systems such as PC’s, notebooks, PDAs, communication devices, and other mobile devices)
1.4.5 User documentation preparation labor
1.4.6 Internal Training (e.g. course development, personnel training)
2.0 IT Operations (Recurring)
2.1 IT Facility Operations
2.1 .1 IT Facilities Maintenance & Support
2.1.2 Power
2.2. Purchased Software Maintenance (e.g. Ongoing Licensing)
2.3 Change Architecture / Design
2.4 Technical Refresh (e.g New Hardware, New Software, Spares)
2.5 IT Operations
2.5.1 IT Hardware Operations & Support Services (e.g. hardware maintenance, computer operators)
2.5.2 IT Infrastructure Operations Services (e.g. service level agreement,
2.5.3 IT Operations Services (e.g. Training, service/help desk)
2.5.4 Software / Database Services (e.g. supporting enterprise applications, databases, supporting middleware and software services)
2.5.5 Infrastructure Services (e.g. setup, deploy, test, checkout infrastructure systems such as servers, storage systems, & networks)
2.5.6 End User Services: (e.g. setup & deploy end user systems such as PC’s, notebooks, PDAs, communication devices, and other mobile devices)
2.5.7 User documentation preparation labor
2.5.8 Recurring Training (e.g. Service / help desk personnel, trainers)
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
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