A Practical Discussion of Cloud Computing in Government

1. Cloudy Skies Ahead? A Practical Discussion of Cloud Computing in Government Dave Rogers, Government Strategic Advisor - Microsoft

2. “Cloud Computing” Another Industry term that no longer has any value Remember the basics… Technology is about having powerful tools that solve business problems.

3. When you hear Cloud Computing… • It means that you can “manage services” rather than on premises infrastructure and overhead- (reduces costs) • Own the TV station or just watch TV… • It is not new nor magical - your utilities, cable, cell phone, email, etc.

4. Why is government looking to the cloud? Are these really new in government? Under pressure to reduce costs Loss of Staffing – “I don’t have the staff to run my systems” My Users need to access data remotely Disaster Recovery costs are prohibitive and/or not budgeted “I am Out of datacenter Space/Power/AC” Need to shift CapEX to OpEx – “my infrastructure is aging” “E-Discovery/FOIA Requests is killing me…” Need to deal with dynamic application load to reduce costs Time to Value. “I want to deliver new capabilities faster…”

5. A little history… (out of beta 2009) Web Applications (2010) Avail to 400M consumers at release (2004) 2B emails/day (2003) 5B conf mins/yr (2001) 20M+ active users (1999) 2B queries/mth (1999) 320M+ active users (1998) Largest non-TCP/IP cloud service x100M users Windows Live Messenger Windows LiveHotmail Windows Update (1997) 550M users/mth (1996) 450M+ active users

6. “The system runs seven-by-twenty-four, never gets sick, never goes on vacation, and we can’t replicate that.” -Gordon Peterson, IT Director – City of Carlsbad, CA “We expect a savings of approximately 40 percent annually” “Enables us to reduce IT operational costs by roughly 30%”- Glaxo Smith Kline

7. Takeaway Number 1 The Cloud Done “Right” Really Works !

8. Doing the Cloud RightLet’s talk about the Models…

9. Takeaway Number 2 All Cloud Services are NOT Equal… Success comes from understanding how they are different and how they meet your business needs.

10. Pure Play Cloud ProvidersThe world through a browser… ON-PREMISES CLOUD SERVICES Interoperable by Design • Dept. must adapt to Cloud Offering • User adoption suffers, alternative solutions pop up • Business molds to technology rather than business driving. Does “one size fits all” really work in Government? Seamless User Experience

11. Enterprise ProvidersBrowser, Desktop Client, Mobile Phone Deployment Choice ON-PREMISES CLOUD SERVICES Interoperable by Design Enterprise Software For Enterprise Customers • Increased User Adoption • Handles diversity in depts. • Reduces productivity loss caused by limited options • Business needs drive Seamless User Experience

12. The Best of both Worlds…Why settle for less? Microsoft Cloud Approach Pure Play SaaS – Web Only ON-PREMISES CLOUD SERVICES ON-PREMISES CLOUD SERVICES • Deployment Choice • Interoperable • Hybrid Model Seamless User Experience Seamless User Experience Microsoft Online Services is the only way to get BOTH!

13. Microsoft Online –Enterprise • 25GB (default) Mailbox • Outlook and Web Access • Anti-Virus/Anti-Spam • Shared Calendars, Contacts & Tasks • Active Sync Mobile Devices • Blackberry Device Support* • Compliance Archiving* • Collaboration • Portal • Enterprise Content Management • Search • Business Process Forms • Business Intelligence • Platform & Extensibility • Web Conferencing • Small group collaboration to large events • Desktop sharing, chat, question manager • Training support and virtual breakout rooms • VOIP or PSTN voice support • Live 360 degree panoramic video • Instant Messaging and Presence • Group IM • Address Book Search • Distribution List Expansion • File Transfer • 1:1 Audio and Video * Optional capabilities at additional cost

14. Basic Differences to Know

15. “But I need to reduce costs and some of the Pure Play Cloud Providers have a compelling Cost…” – Anonymous CIO – California County

16. Takeaway Number 3 Peel back the covers, some things look better than they really are…”Hype Cycle”

17. Takeaway Number 4 Business Requirements must drive Cloud decision… When cost is king, you often get what you pay for…

18. User Experience

19. Compliance / Governance

20. Gartner Leader’s Quadrant – Lowers Risk Microsoft only vendor in all categories

21. Takeaway Number 5 User Adoption is “everything” Without User Adoption you are stuck in the water

23. Do you get the same “richness and familiarity with a pure-play?

24. Excel Web App Pivot Tables Charts

25. Reliability An SLA is nice… …financially-backed is better… SLA Threshold … but a proven track record is best… MS Online Uptime …because what you really want is the uptime, not the credit.

26. Takeaway Number 5 The Cloud is about Risk vs. Reward Do you know the value to your organization?

27. Business Value Gained • Reduces Cost to a predictable operational budget item • Higher productivity/service levels – more with less • Shifts focus to Line of Business projects – IT value increased • Improves Consolidation efforts – more reduced costs • Greater reliability, security and privacy • No additional hardware and lower internal staffing requirements. • Greater agility to scale software to meet changing business requirements. • Quicker time to value

28. Common Barriers to Entry No immediate need – “On Premise” systems running well Faith/Comfort – It is a Cultural Shift Security/Privacy Concerns Loss of Direct Control Migration Costs Risk – Liability (What happens if?)

29. Momentum PUBLIC SECTOR COMMERCIAL We have now sold Online solutions in 48 of 50 states. Over 3.4 million paid licenses of Online solutions in SLG. 400 SLG customers in the past 18 months, from large state agencies, to small municipalities.   More than 50% of the Fortune 500 now use MS Online services. Customers in every industry including: Healthcare, Pharmaceuticals, Finance, Retail, Energy & Transportation

30. MS ONLINE (50K TO 100K USERS) MS ONLINE (1K TO 50K USERS) WINDOWS AZURE MS ONLINE (100K TO 350K USERS)

31. MS ONLINE (5K+ USERS) And recently announced: State of Minnesota State of California City of Chicago, IL City of Miami, FL AZ Dept of Economic Security Cook County IL Hospital State of Illinois New York State FL House of Representatives Kansas City, MO 10K users 60K users 30K users 7K users 5K users MS ONLINE (1-5K USERS) City of Los Angeles Met. Water District City of Plano, TX City of Wichita, KS City of Alexandria, VA 2.7K users 3K users 2.5K users 2K users 2.2K users Congressional Republicans San Bernardino CA Superior Court WA Sound Transit CA Emergency Mgmt Agency San Joaquin County, CA King County, WA City of Carlsbad, CA City of Newark, NJ 1K users 1K users 2.3K users 1K users 1K users 1.5K users 1K users

32. Words to live by… • Evaluate vendors and approaches not technologies • Technologies always change, invest in partners/vendors that have the right vision and demonstrated future roadmap for your business

33. Today – built on 2007 Platform Office 365 – The Upgrade to 2010! • Store your important documents, and share expertise using personal My Sites • Share documents, task lists, and schedules to keep business units in sync using team sites • Work effortlessly with partners and customers by creating sites to share information securely • 10GB per tenant + 500 MB per user • Flexible service offering with pay-as-you-go, per-user licensing • The complete Office experience with services integration in Office 365 • Simplified user set-up to preconfigure services • Always the latest version of the Office apps, including Office Web Apps • Familiar Office user experience to access services • Collaboration • Portal • Enterprise Content Management • Search • Business Process Forms • Business Intelligence • Platform & Extensibility • 5GB (default) up to 25GB Mailbox • Outlook and Web Access • Anti-Virus/Anti-Spam • Shared Calendars, Contacts & Tasks • Active Sync Mobile Devices • Blackberry Device Support* • Compliance Archiving* • 25GB Mailbox • Outlook and Outlook Web App • Premium antivirus/anti-spam (Forefront) • Shared calendars, contacts, and tasks • Mobile email for most mobile devices including BlackBerry, iPhone, Nokia, Windows Phone • Email archiving and compliance capabilities • Instant messaging and presence • PC-to-PC audio and video calling • Click-to-communicate from Outlook, SharePoint, and other Office Applications • Online meetings with PC-audio, video conferencing and sharing • Single click meeting creation and join from Outlook • Calendar integration with Outlook and Exchange • Web Conferencing • Small group collaboration to large events • Desktop sharing, chat, question manager • Training support and virtual breakout rooms • VOIP or PSTN voice support • Live 360 degree panoramic video • Instant Messaging and Presence • Group IM • Address Book Search • Distribution List Expansion • File Transfer • 1:1 Audio and Video

34. Thank You! Question/Answer

35. Security – Level Set • Microsoft Datacenter • Carrier Class (Built and tested to exceed 5 nines availability) • ISO 27001 Certified • SAS 70 Type I & II • FISMA Certified -pending • Third Party Audited • All Data encrypted in transit (128 bit) • Data Encryption options • Data Access Audits and Controls • 9 Layers Security Model • Risk Based Security Program • Typical Gov. Datacenter • Basic datacenter • None • None • None • Rarely and not against certs • Rarely encrypted across local LAN/WAN • Limited Data Encryption • Limited Data Access Audits/controls • Budget limits amount of security • Limited Security Program

36. Focus on Government • Data located in the United States by design • Data resides in specific “Named” datacenters (No data fragmentation, fidelity protected) • Customer retains Ownership of Data • Government Certifications: • ISO 27001 (Security is managed explicitly –can be audited) • SAS 70 Type II (Audits controls over a period of time) • FISMA (Federal law around Risk Based Policies and audits) • FERPA (Educational Privacy Act protecting Students) • HIPAA & Hi Tech Act (Privacy of Health data) • IRS 1075 (IRS Tax Security Guidelines)