CISCO SMARNTET (MAINTNENACE) RENEWAL – FY17

Executive Summary

Background

UMC has standardized on CISCO Equipment / Technology for all Network & Telecommunication infrastructure components (switches, routers, Voice over IP (VOIP) / Call Manager, Wireless Access Points and Controllers, Wireless phones (City, County, School Districts, many other large businesses in the Community have standardized on CISCO as well; CISCO as well is listed as the supported infrastructure partner by most of our large vendors: Cerner, Siemens)

The Infrastructure supports the Campus Buildings (UMC & EPCH Towers, Annex Building, Data Center, Laboratory / Parking Garage, remote clinic locations: Ysleta, Fabens, Northeast, Crossroads, George Dieter, Delta, Burnham, Mattox, El Paso Drive, Viscount, Far East and West Staging, El Convento, etc)

SmartNet is the trade name that CISCO utilizes for their maintenance services

  • CISCO does not sell directly to Customer; they utilize reseller.
  • Only Core Switches are covered under Maintenance - The individual switches that support the devices are ‘limited lifetime warranty’ therefore, UMC ‘spares’ them (a few are kept in stock for quick turnaround).
  • The Maintenance services include repair/replacement, remote support / troubleshooting and firmware updates and license support for all phone software and upgrades.
  • All Core Switches and other infrastructure equipment when purchased are acquired with 12 month warranty.
  • Purchases of Maintenance are done by issuing a PO to the reseller for a particular ‘part number’ for the registered products with CISCO.
  • E-mail Encryption is covered as well through a subscribtipm through Smart

FY16 Cost $188,675.99

SmartNet & e-mail encryption Annual Renewal

Reseller utilized is under the State of Texas DIR (Department of Information Resources) Contract and is a Platinum Reseller (Sigma Solutions) - Sigma Solutions is a Platinum Certified partner (therefore able to offer higher discounts from list price) – DIR –TSO-2542

Coverage Period 11/1/16 – 10/31/17

Renewal Price: $259,820.00 – with 15% allocation to EPCH for the CISCO SmartNet and a per user fee for e-mail encryption, in purchased for one-year only.

The renewal price if a two year coverage period is selected, from 11/1/16 – 10/31/18 would be $460,966.64 ($58,674 savings) provided up-front payment of two years.

The Products included / covered under the renewal period are:

  • 3 Wireless Controllers
  • 4 Firewalls
  • 28 Routers
  • 4 Core Switches
  • 6 Appliances (Call Center Servers, Wireless Monitoring Appliance, CISCO device monitoring Appliance, Email Encryption Appliances)
  • 43 Voice Gateways
  • Call Manager Licenses Support (Centralized Scheduling for UMC & EPCH, Clinic Scheduling, PBX, Patient Financial Services, IT offer Call Center services)
  • 2900 e-mail encryption license subscription

Device / License under Maintenance / FY2016 / FY2017 / Details
Routers / 27 / 28 / ** Router price on average increased by $150 per.
Voice Gateways / 40 / 43
UCS Servers / 2
Core Switches / 5 / 4 / ** New switch 6509 (replacement/upgrade) cost was $10,000 higher (although net number of devices the same)
Cisco ASAs / 4 / 4 / ** Vendor CPI increase per unit
Cisco Call Manager Enhanced Licensing / 2255 / 3233 / ** Cisco Licensing model changed. Cost is $32,274 higher
Analog Licensing / 471 / 471 / ** $2300 – Adding Licensing support; previously not covered, needed for upgrades
Cisco Call Center Express Licensing / 100 / ** Cisco changed licensing for CCX. Cost is $29,600 higher
Cisco Unity Voicemail Licenses / 746 / 1205 / ** Cisco changed licensing to cover all mailboxes owned not just used.
eMail Encryption - 2900 users / 2900 / 2900 / ** Cost is $2500 higher
Total Annual Fees / $188,675.99 / $ 460,967 (2 years)
$230,484 (annual spread) / Note, when devices are upgraded, due to models and capacity of the devices and warranty period, some fees per item go down; others increase and others are pro-rated for a portion of the year (depending on when item was purchased)

A PO will be issued for the purchase of the SmartNet maintenance items listed in the detailed spreadsheets (attached) - The DIR Terms apply to the purchase

Management’s recommendation is to purchase a 2 year term. These products represent the base network infrastructure for the campus EPCH included. There is a significant capital investment on this infrastructure. It is unlikely that it would change. Throughout the next 12 months, additional switches, phones, licenses for email encryption will be added; next year we will true-up the support for those devices that are added.

Renewal for Maintenance/support for Equipment and e-mail Encryption subscription budgeted under 10844:

  • FY17 Maintenance budgeted amount under 10844: $204,000
  • FY17 E-mail Encryption subscription budgeted amount under 10844: $41,760