Cloudy Skies Ahead?

earsplittinggoodbeeInternet and Web Development

Nov 3, 2013 (3 years and 5 months ago)

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A Practical Discussion of

Cloud Computing in Government

Cloudy Skies Ahead?

Dave Rogers, Government Strategic Advisor
-

Microsoft



“Cloud Computing”

Another
Industry term
that no longer
has any value

Remember the
basics…

Technology is about having powerful tools
that solve business problems
.

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.



Why is government looking to the cloud?


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…”




Are these really new in
government?

A little history…

(1996)

450M+

active users

Windows
Live

Hotmail

(1997)

550M
users/
mth

(1998)

Largest
non
-
TCP/IP
cloud
service

x100M
users

Windows
Update

(1999)

320M+
active
users

Windows
Live
Messenger

(1999)

2B
queries/mth

(2001)

20M+
active
users

(2003)

5B conf
mins/yr

(2004)

2B
emails/day

(2010)

Avail to
400M
consumers
at release

Web
Applications

(out of beta
2009)

“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

“Enables us to
reduce IT operational costs by
roughly 30%
µ
-

Glaxo Smith Kline

“We expect a
savings of
approximately 40 percent
annually


The Cloud Done “Right” Really Works !


Takeaway Number 1


Doing the Cloud Right

Let’s talk about the Models…

All Cloud Services are NOT Equal…


Success comes from understanding how they are
different and how they meet your business needs.

Takeaway Number 2


Pure Play Cloud Providers

The world through a browser…

ON
-
PREMISES

CLOUD SERVICES


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?

Enterprise Providers

Browser, Desktop Client, Mobile Phone

Seamless User

Experience

ON
-
PREMISES

CLOUD SERVICES

Deployment Choice

Enterprise Software


For

Enterprise Customers




Increased User Adoption



Handles diversity in depts.



Reduces productivity loss


caused by limited options



Business needs drive

The Best of both Worlds…Why settle for less?

Microsoft Online Services is the only way to get BOTH!

Seamless User

Experience

ON
-
PREMISES

CLOUD SERVICES

Pure Play SaaS


Web Only

Seamless User

Experience

ON
-
PREMISES

CLOUD SERVICES

Microsoft Cloud Approach


Deployment
Choice

Interoperable

Hybrid Model



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



Instant Messaging and Presence


Group IM


Address Book Search


Distribution List Expansion


File Transfer


1:1 Audio and Video



Microsoft Online

Enterprise


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










* Optional capabilities at additional cost

Basic Differences to Know

Enterprise

Cloud

Pure Play SaaS

Data located in Continental U.S.

Not

always guaranteed, verify

Data

located in “Named Datacenters” in
original format

Data parsed across multiple servers across
multiple Datacenters

-

Fidelity ?

Chain

of custody preserved

Chain of custody unclear

Enterprise

Software running in the Cloud

Web based technologies running in Cloud

Transition off the Cloud is easy due to use

of same Enterprise Software running
millions of “on
-
premise” governments.

Transition off the Cloud requires moving
back to a new product “on
-
premise” with
end user training costs

Privacy

is protected


absolutely no data
mining

Privacy needs

verification

ensure no data
mining.

Choice in Deployment

and consumption


“One

size fits all”

“But I need to reduce costs and some of the Pure
Play Cloud Providers have a compelling Cost…”


Anonymous CIO


California County



Takeaway Number 3


Peel back the covers, some things look better
than they really are…”Hype Cycle”


Takeaway Number 4

Business Requirements must drive Cloud decision…

When cost is king, you often get what you pay for


User Experience


IT
depts

ignore user experience/adoption at their peril on major projects


Unfamiliar tools/experiences, missing features, and poor integration
hamper adoption

additional cost


Training can offset this but is
additional cost


Must integrate with user
-
dependent strategic initiatives like ECM or these
are doomed


additional cost

Key Considerations


Familiar interfaces, tools and paradigms


“Convenience breeds compliance”


Unmatched ECM integration


Measured, planned, communicated rollout of new features to users in
order to avoid churn


Microsoft's Cloud Story

Compliance /
Governance


Increasing pressure/cost on timely response to
FOIA,
eDiscovery

requests


Must be comprehensive


email, docs, IM, etc…


Document fidelity a requirement in many states


Integrated search across record types also
critical

Key Considerations


Full document fidelity preserved for docs


Full archiving solution for email/IM


Granular retention/auditing policies across docs,
email, and IM


Jointly search on premise and cloud repositories


Jointly search multiple record types *


Coming in 2010: Legal holds, comprehensive
cross repository search


Microsoft's Cloud Story

Gartner Leader’s Quadrant


Lowers Risk

Communication

Enterpri se Emai l
(05/09)

Web
Conferenci ng
(07/09)

Uni fi ed
Communi cati ons
(09/09)

Collaboration

Informati on
Access (09/09)

Hori zontal Portals
(09/09)

Enterpri se
Content Mgmt
(10/09)

Soci al Software
(10/09)

IT Project and
Portfol i o Mgmt
(06/09)

Infrastructure

PC Li fecycl e
Mgmt (11/09)

Software
Change/
Confi g

Mgmt (03/09)

Application
Platform

Busi ness
Intel l i gence
(01/09)

Data Warehouse
DB Mgmt (12/08)

Enterpri se
Appl i cati on
Server (09/09)

SOA

Busi ness Process
Anal ysi s (09/08)

New SOA
Appl i cati on
Projects (12/08)

Backend App
Integrati on
Projects (12/08)

SOA Composi te
Appl i cati on
Projects (12/08)

Microsoft only vendor in all
categories

User Adoption is
“everything”


Without User
Adoption you are
stuck in the water

Takeaway Number 5

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

Excel
Web App


Pivot
Tables



Charts

Reliability
An SLA is nice…

99.800%
99.825%
99.850%
99.875%
99.900%
99.925%
99.950%
99.975%
100.000%
CY08 Q3
CY08 Q4
CY09 Q1
CY09 Q2
FY10
Q1TD
Exchange Online
SharePoint Online
SLA

Threshold

… but a proven track record is best…

…financially
-
backed is
better…


because what you
really

want is the uptime, not the credit.

Takeaway Number 5

The Cloud is about Risk vs. Reward

Do you know the value to your organization?

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

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?)











Momentum

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.


PUBLIC SECTOR

COMMERCIAL

More than 50% of the
Fortune 500 now use MS
Online services.


Customers in every industry
including: Healthcare,
Pharmaceuticals, Finance,
Retail, Energy &
Transportation

MS
ONLINE (50K TO 100K USERS)

MS ONLINE (100K TO 350K USERS)

MS ONLINE (1K TO 50K USERS)

WINDOWS AZURE

10K users

AZ
Dept

of
Economic
Security

60K users

New York State

30K users

State of Illinois

7K users

Cook County IL
Hospital

5K users

Kansas City,
MO

MS ONLINE (1
-
5K USERS
)

MS ONLINE (5K+ USERS)

2.2K users

Ci ty of Los
Angel es Met.
Water District

2.5K users

City of Plano,
TX

2K users

City of Wichita,
KS

2.7K users

Ci ty of Al exandri a,
VA

2.3K users

Ci ty of Newark,
NJ

1K users

San Joaquin
County, CA

1.5K users

CA Emergency
Mgmt Agency

1K users

King County,
WA

1K users

City of
Carlsbad, CA

1K users

San
Bernardino CA
Superior Court

1K users

WA Sound
Transit

FL House of
Representatives

City of Miami, FL

City of Chicago, IL

Congressional
Republicans

3K users

And recently announced:


State of Minnesota

State of California

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







Today


built on 2007 Platform


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*



Collaboration


Portal


Enterprise Content Management


Search


Business Process Forms


Business Intelligence


Platform & Extensibility



Instant Messaging and Presence


Group IM


Address Book Search


Distribution List Expansion


File Transfer


1:1 Audio and Video




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










Office 365


The Upgrade to 2010
Thank You!


Question/Answer


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

35


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

Security


Level Set

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)