Presentation given by John Sheridan at the Gartner Infrastructure, Operations and Data Centre Summit – 16 March 2011

Slide 1: Shed Services

Alternative text:

Title slide as described in the surrounding text, with a background image of a shed.

Initiating, instituting and implementing the
Australian Government Data Centre Strategy 2010-2025

John Sheridan

Acting Australian Government CIO

Australian Government Information Management Office

Slide 2: The Formless Void

Individual agencies managed their data centres

Often converted office space, or the basement

Usually the responsibility of Property group, not IT group

Key assumptions were cheap electricity, 10/5 IT operations

Ad hoc approach to rack and cabling layouts

The big issue was space for all the equipment

Good enough for the 1980s and non-mission critical ICT

Slide 3: Let there be light

2008: Gershon Review - recommendation 5

“there is a prima facie case for the avoidance of $1 billion in costs through a whole-of-government approach to data centre requirements”.

2009: Interim data centre panel

2009: Data Centre Strategy developed

2010: Data Centre Strategy announced by Government

2010: Nine agencies relocate to data centres off the interim panel

2011: Procurement – data centre panels, migration services

2011: Policy – data centre optimisation

Slide 4: Bureaucracy is the lifeblood of democracy

Alternative text:

The top graphic shows three chevrons, listing three phases of the data centre program: initiate, institute, and implement.

Under the initiate chevron, the graphic shows the parties involved in developing, reviewing and approving the data centre strategy. AGIMO developed the strategy, with input from agencies and industry. The Chief Information Officer Committee (CIOC) reviewed and recommended the strategy for consideration by the Secretaries ICT Governance Board (SIGB). SIGB reviewed and recommended the strategy for consideration by Government. Government approved the strategy.

Under the institute chevron, the graphic shows the two parts of the Department of Finance and Deregulation that are managing the Coordinated Procurement Program. The Coordinated Procurement Program is a whole of government approach to leveraging the government’s purchasing power.

Under the implement chevron, the graphic shows the key activities toward achieving the goal of avoiding $1 billion in data centre costs. The key activities are better technology, modern data centre facilities and better processes.

Slide 5: Data Centre Strategy

The strategy is to avoid $1 billion in future costs:

  • Reducing electricity consumption
  • Increasing the return from our ICT assets
  • Leveraging our economies of scale

Key assumption is that ICT costs will grow at 10% per annum

The strategy is not about:

  • Keeping up with the latest fashion
  • Putting all Government ICT into one data centre
  • Reducing agency ICT budgets

Slide 6: Going to market

Alternative text:

The graphic shows the timeline for five procurement activities, by quarters and years.

The existing data centre facilities panel procurement began in Q3 2010 and is to finish in Q1 2011.

The fit out data centre facilities panel procurement began in Q3 2010 and is to finish in Q2 2011.

The greenfields data centre facilities panel procurement began in Q3 2010 and is to finish in Q3 2011.

The data centre migration services panel procurement began in Q3 2010 and is to finish in Q1 2011.

The data centre as a service procurement is to begin in Q3 2011 and finish in Q4 2011.

In this case, Q1 is January to March, Q2 to April to June, and so on.

Slide 7: Success stories

Data centre strategy endorsed and funded by Government

Interim data centre panel addressed urgent needs

  • 12 agencies approved, 9 have signed leases
  • About 2,500 square metres, in Sydney and Canberra
  • Avoided over $7 million in data centre costs

Panel for existing data centre facilities established

Panel for migration services established

Data centre optimisation policy adopted

Slide 8: Future’s so bright ... got to wear shades

Panels for fit out and green fields

Data Centre as a Service

Business case for whole of government data centre

Reporting on avoided costs to government

Agencies move their data centres

New opportunities arise from the consolidated data centres

Slide 9: Further information

AGIMO website:

AGIMO blog:

Data centre project team:

Australian Government entry point:

Australian Government public information datasets: