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Cloud Computing:

Software Services and Applications

Lauren Farese, Sr. Director

Oracle Public Sector – State and Local Government

NASCIO Enterprise Architecture Committee, ITIL V3

The following is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into any

contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decisions.relied upon in making purchasing decisions.

The development, release, and timing of any

features or functionality described for Oracle’s

products remain at the sole discretion of Oracle.

2© 2009 Oracle Corporation

I've looked at clouds from both sides now,

From up and down, and still somehow

It's cloud illusions I recall.

I really don't know clouds at all.

Joni Mitchell - Both Sides Now

Live,1970

Why Cloud ? Why Should You Care ?

• S&L Budget cuts forcing IT

Consolidation

• Cloud Computing Is a

NASCIO Priority [#4 2010]

• We are at the Peak of the

Hype Cycle

“IT suppliers must position as

leaders in IT cloud services or

forfeit an ever-expanding portion of

the industry’s growth” IDC

• Federal Government’s “Cloud First” policy

• By 2012, 44% of enterprises will be leveraging private cloud services

• Demand for new Web 2.0 services from citizens

NIST Definition of Cloud Computing

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.

This cloud model promotes availability and is composed of:

Source: NIST Definition of Cloud Computing v15

3 Service Models

• SaaS

• PaaS

• IaaS

4 Deployment Models

• Public Cloud

• Private Cloud

• Community Cloud

• Hybrid Cloud

5 Essential Characteristics

• On-demand self-service

• Broad network access

• Resource pooling

• Rapid elasticity

• Measured service

Application(SaaS – CRM, HRMS)

Oracle On Demand

Salesforce.com

Built by Cloud

Customer

ProvidedPlatform

Cloud Service Models

Providedby Cloud

Platform(PaaS – Database, Middleware, Content)

Google AppEngine, Amazon RDS

Infrastructure(IaaS - Network, OS, Storage, Servers)

Amazon EC2

Private Clouds and Public Clouds

Private Cloud

INTERNET

Public Clouds

INTRANET

PaaS

SaaS

IaaS

PaaS

SaaS

IaaS

• Used by multiple tenants on a shared basis

• Hosted and managed by cloud service provider

• Exclusively used by a single organization

• Controlled and managed byin-house IT

Lower upfront costs

Outsourced management

OpEx

Lower total costs

Greater control over security, compliance, QoS

CapEx & OpEx

Trade-offs

Enterprises will adopt a mix of private and public clouds

Enterprise Evolution To CloudNIST Deployment Models

Private Cloud Evolution

Public Cloud Evolution PaaS

SaaS

IaaS

Public Clouds

App1 App2 App3

Virtual Private Cloud

Hybrid

PaaS

SaaS

IaaS

App2 App3App1App1 App2 App3

Hybrid

• Federation with public clouds

• Interoperability

• Cloud bursting

App1 App2 App3

Private IaaS

Private PaaS

Private Cloud

• Self-service

• Policy-based resource mgmt

• Chargeback

• Capacity planning

App2 App3

Private IaaS

Private PaaS

App1

Silo’d Grid

• Physical

• Dedicated

• Static

• Heterogeneous

• Virtual

• Shared services

• Dynamic

• Standardized appliances

App1 App2 App3

App1 App2 App3

Private IaaS

Private PaaS

Oracle Cloud Computing Strategy

Private Clouds

PaaS

SaaSINTE

Public Clouds

PaaS

SaaS INTR PaaSPaaS

SaaSSaaS

Oracle Applications Oracle Applications OnDemand

IaaS

PaaSERNET

Users

IaaS

PaaS RANET

IaaS

PaaS

IaaS

PaaS

Oracle Technology for CloudsOracle Technology for Clouds

Cloud – Current Trends

Data Center Consolidation is the new Private Cloud

• Server Consolidation

• Service Consolidation – Database as a Service

What are customers looking for?

• Integrated Pre-Engineered Hardware-Software solutions

• Improve manageability

• Improved Security• Improved Security

Collaboration Services - Mail and Office

What are customers looking for?

• How do I secure my “attachments” – Information Rights

Management

• How do I control users in an external system –

Integrated/Federated Sign-On.

Private Cloud Momentum

“Cloud computing projects are still at an early stage at most companies, if they are happening at all. However, the overwhelming majority of IT executives have at least

Source: CIO Insights Q2 2010 http://internet.ziffdavisenterprise.com/CIOI_Downloads/CIOI_2010_Q2_CloudRsrch.pdf

IT executives have at least begun evaluating the benefits of cloud technology, with much of their focus on private clouds.”

Copyright ©2011, Oracle. All rights reserved.

NASCIO Draft - Cloud Deployment for

Government

IT-as-a-Service

Optimized IT Core

Service Group A Service Group B Service Group C

Integration Layer

A Sustainable IT Operating Model is the

Foundation for Cloud Computing

FBT PAY GNTS

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Customs

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Complexity

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Security

SFAProduct LMSInv

MGMTB2Bproduct SCM product DBERP

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Dev

SFASFA-

Test

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Stage

Product

Product

ERP-

StageERP-

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Stage

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Stage

Service Group A

Data Grid Data GridData Grid

Service Group B Service Group C

Security Layer

Application Grid Application Grid Application Grid

The 4 Principles

of

IT Optimization

IT Optimization: the Roadmap to Cloud

IT-as-a-Service

FBT PAY GNTS

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Service Group A

Data Grid Data GridData Grid

Service Group B Service Group C

Integration Layer

Security Layer

Application Grid Application Grid Application Grid

14

IT Optimization

1

2

3

4

Management AutomationRationalization

Consolidation

(& Virtualization)

Shared Services

CR

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Enterprise

Architecture

Enterprise Architecture: The Process for

Achieving CloudIT-as-a-Service

FBT PAY GNTS

TRDS

Client

Customs

RBA

NTS A/c

1

Data…….

Penalty

FBT PAY GNTS

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Client

Customs

RBA

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Complexity

Transitional

Security

SFAProduct LMSInv

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Service Group A

Data Grid Data GridData Grid

Service Group B Service Group C

Integration Layer

Security Layer

Application Grid Application Grid Application Grid

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1

2

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Governance ModelAlign Business & IT

Focus on Future State Repeatable, Iterative Approach

Cloud Service AdoptionSecurity Continues to be the #1 Concern

It could actually be a benefit…..

Source: www.networkcomputing.com / IDC Survey: Risk In The Cloud, June 16, 2010

“So if you flip that apprehension on its head, there may be benefits in leveraging a cloud offering with the [security] focus and core competence that a cloud provider brings to the table.”

-Michael Pearl, PricewaterhouseCoopers

Copyright ©2011, Oracle. All rights reserved.

ICAM Workshop• Requirements

- Budget Constraints

- Programs & Funding

- Online vs. “In Line”

- Portal Initiatives

- Actions that require interaction

- Proactive Citizen Services

- Cloud

• Design & Architect

• Building Interfaces

• Leveraging Standards

• Security Mandates

• Trust Assurance

• Identity Sharing/Federation

• Data Security & Compliance in

Shared Environments- Cloud

Cloud Success Story – State Data CenterDatabase as a Service - Goals and Anticipated Benefits

• Standardize- Provisioning

- Management and monitoring

- Backup and recovery (BUR)

- Cost recoupment

• Resource Efficiency• Resource Efficiency- More efficient use of storage

- Easier network management (firewall rules)

• Increase Quality- Rapid environment provisioning

- Efficient use of development/test environments

- Bolster capability to enforce security policies

NC Education Cloud Model

DRAFT

Some State Examples

• New Jersey Transit Authority

- CRM (SaaS – Salesforce.com)

• Response time dropped by 35%, productivity increased by 31%

• State of Connecticut

- ERP (PeopleSoft Private cloud)- ERP (PeopleSoft Private cloud)

• Financials and HR to all state agencies

• Standardized shared service

• Commonwealth of VA

- VITA Enterprise Application Development (Amazon EC2)

• New applications with little upfront cost

Some References

• “Cloud Computing Bible” – Barrie Sosinsky

• “Cloud Computing and Government : Background,

Benefits,Risks” – George I. Nikolov

• “The Cloud At Your Service” – Jothy Rosenberg,

Arthur MateosArthur Mateos

• “Cloud Computing Explained” – John Rhoton

• NASCIO.org – new whitepaper(s) coming!

© 2009 Oracle Corporation 21

22© 2009 Oracle Corporation