Presentation to Nat’l Association of State Procurement Officials 17 April 2012

1. The Cloud Imperative: Leading Practices for Optimizing Cloud Computing Acquisition and Deployment Presentation to Nat’l Association of State Procurement Officials 17 April 2012 Carol Henton, TechAmerica and Gary Lambert, Commonwealth of Massachusetts

2. Presentation Overview • TechAmerica and its State & Local Government Cloud Commission (SLG-CC) • Understanding Cloud • What it is, why it saves money, how it helps • Acquisition (aka Procurement) Issues and Challenges for States & Localities

3. About TechAmerica • TechAmerica was formed in 2009 by merger of four organizations: • Leading voice for the U.S. technology industry • Approx. 1000 member companies – from startups to multinationals. • Technology industry's only grassroots-to-global advocacy network • Leading advocacy trade association on both federal and state procurement issues • TechAmerica Foundation’s mission is: • To educate executives, policymakers, press, opinion leaders, and the public on the size, scope, outlook, and impact of technology • To promote technology led ideas that advance economic growth and U.S. competitiveness

4. SLG Cloud Commission • Launched in September 2011 • Key facts and figures • SLG-CC followed TechAmerica’s Federal Cloud2 initiative, which produced a Federal Cloud Buyer’s Guide in July 2011

5. TechAmerica State and Local Cloud Commission products: • Report -- “The Cloud Imperative – Better Collaboration, Better Service, Better Cost” • Executive Summary plus • “A Comprehensive Guide for Best Practices in Cloud Computing for SLGs” • Web Platform/Common Portal • www.cloud4slg.org • Event: Released at a major event in Silicon Valley on February 16, 2012

6. Context What is Cloud? Cloud is: • The on-demand provisioning of applications, services, and/or infrastructure from a network, rather than a local computer • Not new technology, but new management capabilities, processes, and packaging

7. Cloud Definition • NIST* definition of Cloud • This cloud model promotes availability and is composed of: • 5 essential characteristics • 3 service models • 4 deployment models *National Institute of Standards and Technology-v15 Cloud is not just about technology but about automating service management Let’s quickly review to have a common basis of understanding

8. NIST Cloud Model Defines Three Dimensions 5 Essential Characteristics • On-demand self-service • Broad network access • Resource Pooling • Rapid elasticity • Measured service 3 Service Models • Cloud Software as a Service (SaaS) • Cloud Platform as a Service (PaaS) • Cloud Infrastructure as a Service (Iaas) 4 DeploymentModels • Private Cloud • Community Cloud • Public Cloud • Hybrid Cloud National Institute of Standards and Technology-v15

9. Why Cloud? • Cloud is frequently promoted for: • Cost savings and efficiency • Flexibility and scalability • Reduced data center issues • Rapid application development • Better data security • Cloud can enable innovation • Not a solution, but a catalyst for change • Drive speed, efficiency, creativity, access • Support collaboration, transparency, insight Value

10. Why Cloud? • But some fear: • Loss of control • Other data privacy and security issues • Audit process support, data location, etc.

11. Excerpt from SLG-CC Report…

12. Business Value Impact

13. Cloud Considerations • Risks • Portability • Data • Service • Security • Appropriate Service Levels • Securing Funding • Contract Terms • Getting the SLA Right • Governance

15. Maine – Hosted ERP WSCA – eProcurment System Cooperative Nebraska – Enterprise Job Applicant System Oregon – Building Permitting Hudson Cty. NJ – Private Cloud for Disaster Recovery Virginia – eVA Procurement System Arizona – eProcurement System CA Dept. of Financial Institutions – Records Request Management System Using CRM New Mexico – AG’s email and Staff Scheduling System Illinois – Private Cloud email

16. Technology Impact – Service Orchestration • Leveraged NIST Cloud Computing Reference Architecture • Physical Resource Layer (Hardware, Facility) • Focus on issues related to base hardware/software platform and servers • Standards versus propriety • Commodity versus state of the art or bespoke • Resource Abstraction and Control Layer • Focus on Hypervisor issues and recommendations • Commercial versus open source, bare metal versus OS hosted, etc. • Service Layer (IaaS, PaaS, SaaS) • Focus on recommendations for higher level services • Elasticity, bursting, provisioning, app development, deployment, scaling

17. Technology Issues Impacting Adoption of Cloud Solutions

18. Implementation Issues Impacting Adoption of Cloud Solutions Cloud Readiness • Research and report on key recommendations and guidelines that address the issues facing SLG IT Services leaders when planning and implementing Cloud based resources and business models • Focus on four key stages. Operations Best Practice Risk Assessment Implementn. Best Practice

19. Issues Unique to State and Local Governments • Unique state and local laws/practices • State data location requirements • Budgetary issues with legislators • Outsourcing issues

20. Acquisition and Contracting Issues Impacting Adoption of Cloud Solutions • Key Takeaways on Cloud Solutions Procurement -- • Successful cloud procurements must address these three key areas: • Procurement Vehicles • Pricing/Business Models • Key Contractual Terms • Funding Streams

21. SLG Cloud Commission Report Key Takeaways on Cloud Procurement (continued): • Procurement vehicles in use today may or may not be specifically designed for cloud services. • Contract vehicles for cloud services are also offered by multi-government consortia and the federal government; • To date, private clouds have dominated state CIO discussions. Factor in the need for varying application requirements such as development and test environments, prototyping, collaboration and e-mail and the cases for hybrid and virtual private clouds are gaining ground; • Private clouds offered by cloud vendors have the potential to obviate the need for large capital expenditures by state and local governments; • Acquiring cloud architectural design services raises specific procurement issues which must be addressed.

22. SLG Cloud Commission Report Key Recommendations for Cloud Procurement: • Create a state RFP specifically tailored for cloud services to support a variety of delivery models – and available for use by local governments; • When using an existing, non-cloud specific procurement vehicle, use terms and conditions specific to cloud services; • Develop and require specific terms and conditions for data portability, records management, security and privacy, and SLAs; • When addressing multijurisdictional clouds highlight and adjudicate governance issues; • Create or leverage buyer’s guides, including those from Federal and commercial sources, to vet and prequalify providers.

23. SLG-CC continues into the future • SLG-CC’s Web Portal – www.cloud4slg.org • Best Practices and Use Case examples • We’ve posted more than 35 to date; more are needed! • Tools and Resources • White Papers, Analyst Research, Case Studies go here • Community: • Expert Opinion/Cloud Community Dialogue • Marketplace: Area for leading providers of cloud to offer their wares • Speaking to government customers • Via webinars and other events

24. Questions… or to offer content to be added to cloud4slg.org web portal, contact: Gary Lambert, Chief Procurement Officer, Commonwealth of Massachusetts, gary.lambert@state.ma.us Carol Henton, Vice President, State & Local Government, TechAmerica, 650-357-7728, carol.henton@techamerica.org Michael Kerr, Senior Director, State & Local Government, TechAmerica, 703-284-5324, mkerr@techamerica.org THANK YOU