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Cloud Computing: A Paradigm Shift of Government ICT

Mukesh Chulani Research Manager, MEA IDC Government Insights June 14, 2012. Cloud Computing: A Paradigm Shift of Government ICT. (Good Luck) Defining Cloud Computing. (Good Luck) Defining Cloud Computing. CEO. “Cloud is a buyer-centric view of technology where applications are

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Cloud Computing: A Paradigm Shift of Government ICT

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  1. Mukesh Chulani Research Manager, MEA IDC Government Insights June 14, 2012 Cloud Computing: A Paradigm Shift of Government ICT

  2. (Good Luck) Defining Cloud Computing

  3. (Good Luck) Defining Cloud Computing CEO “Cloud is a buyer-centric view of technology where applications are available through purchase or rental, wherever and whenever.” Cloud Computing is all of these things! “Cloud is an approach to consume technology in a pay-as-you-go model where consumers only pay for what they use.” CFO CIO “Cloud is a comprehensive virtualization model for technology from the infrastructure layer all the way to application delivery.”

  4. 5 Fundamental Characteristics

  5. Cloud Computing…

  6. State of Colorado: Legacy ICT Profile FY 2012: Approximately $300 million ICT budget & nearly 900 employees, ~$100 million in non-personnel related operational expenses FY 2012: Approximately $21 billion in operating funds & nearly 51,000 employees • Agency-by-agency ICT provisioning resulted in 40+ data centers, 15 disparate networks, 400+ LOB systems, and 1,800 servers (including 122 servers dedicated to provisioning email services. Source: Office of Information Technology, State of Colorado

  7. Colorado’s Legacy System Assessment (2009) Source: Office of Information Technology, State of Colorado

  8. Cloud computing-based IT resource growth model Time to utilize Resource Growth Rate Excess Capacity Purchased Resource Usage Growth Traditional IT Growth Pattern Cloud Growth Pattern Time

  9. Colorado’s Cloud Strategy - October 2011 • “Colorado is adopting a Cloud-First policy. All new services and applications & major revisions will be supported in a cloud-based environment first, unless there are significant reasons to host these on the State’s private infrastructure.” • Public Cloud • Communication and non-sensitive data dissemination , e.g. email, office productivity, • collaboration tools, and websites • March 2012, enterprise email for 26K FTE’s to be moved to Google . • E-Fort Private Cloud • Core and highly-secure data including taxes, Medicaid, driver’s licenses, vital records, and law enforcement Savings Estimated US$8 million annually + cost avoidance of nearly $20 million between 2012-2015. • VPC • Hosting large systems such as ERP, improving disaster recovery capabilities and providing storage and archiving. Source: Office of Information Technology, State of Colorado

  10. Colorado’s Cloud Readiness Decision Tree Source: Office of Information Technology, State of Colorado

  11. Colorado’s Cloud Security Approach • Office of Information Security is a unit within OIT tasked to be the single state source for cyber security readiness and awareness. • Adopted the consensus-based Center for Internet Security benchmark standards • IT Security policies governing: • Information Security Planning • Incident Response • IT Risk Management • Disaster Recovery • Vendor Management • Network Operations • Access Control • Change Control • Physical and Personnel Security • Data Classification, Handling, and Disposal • System Access and Acceptable Use • Online Privacy • Security Awareness • Security Metrics Measurement Source: Office of Information Technology, State of Colorado

  12. State of Michigan: Legacy ICT Profile & Cloud Strategy FY 2011: Approximately $48 billion in operating funds & nearly 48,000 employees FY 2011: Approximately $415 million ICT budget & nearly 1,600 employees, 11% CAPEX • The first published state government cloud computing strategy in the U.S. (October 2010) • Government Cloud • Primary business support functions that are critical to government operations or impose unique security requirements and legal constraints Mandate: “Rapidly create a service transformation capability to transform core services.” • External and Commercial Cloud • Secondary business support functions that are not critical and do not impose unique security requirements or legal constraints Source: Department of Technology, Management, and Budget, State of Michigan

  13. Michigan’s Cloud Readiness Decision Tree • Multiple potential consumer agencies? • Successful 3rd party implementation to emulate? • Primary or secondary government function? • Leverages architecture planned to be adopted or retained? • Internal resources and skills able to deliver the function? Source: Department of Technology, Management, and Budget, State of Michigan

  14. Michigan’s Cloud Hosting • Automated Hosting (AH) service deployed as private cloud solution; live in May 2011 • Feature and cost competitive with leading public cloud IaaS vendors such as Amazon EC2 and Rackspace. Usage-based billing at a daily rate. • Total project cost = $118K. Project payback occurs in 5 months. In 8 months, ROI = 248% Source: Department of Technology, Management, and Budget, State of Michigan

  15. Cloud Computing…

  16. “Start where you are. Use what you have. Do what you can.” -- Arthur Ashe

  17. Thank You! mchulani@idc.com

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