Data center consolidation and major upgrades of the NIH Computer Center’s MVS systems during 1997 have combined to produce much greater cost reductions and efficiencies than were originally anticipated. The Computer Center’s MVS customers will share in the benefits through a rebate of nearly $8M.

Normally, customers receive rebates on a pro rata basis. While the calculation of proportionate shares will be complicated somewhat by the changes in customer base resulting from consolidation, a similar procedure will be followed again this year. Non-NIH customers—both other HHS OPDIVs and non-HHS agencies served by the Computer Center—will receive credits directly to the accounts that originally accumulated charges. However, a decision about the method of distribution of the NIH portion of the rebate will be made by senior NIH management based on advice from the Central Services Budget Review Committee.

A number of circumstances contribute to these extraordinary savings:

• Large MVS enterprise servers now rely on many of the same technologies that go into personal computers, making them less expensive to purchase, maintain, and operate.

• DCRT obtained very aggressive pricing for system upgrades through the CERTAN Corporate Systems Contract, awarded in December of 1996.

• Although it was expensive to carry out, data center consolidation required less investment than DCRT had originally prepared for.

• Consolidation improved operating efficiency and reduced costs much more than was expected.