1. CLOUD COMPUTING SUMMIT 2011

2. CLOUD COMPUTING SUMMIT 2011WELCOME & INTRODUCTIONPHIL COTTERILL HEAD OF PUBLIC SECTOR SALES, ONI 3. AGENDA15:55 16:00 - Welcome Phil Cotterill Head of Public Sector, ONI16:00 - 17:00 - John Suffolk - Ex CIO, UK Government17:00 - 17:20 - Andy Macleod - Strategy Manager, Cisco17:20 - 17:40 - Stace Hipperson - CTO, Real Status17:40 - 17:55 Lewis Honour Security Business Practice Manager, ONI17:55 18:00 Close - Phil Cotterill Head of Public Sector, ONI18:00 19:00 - Networking and Canaps 4. SHIFTING THE PARADIGM OF TECHNOLOGYJOHN SUFFOLKEX CIO AND CISO UK GOVERNMENT 5. THE AGENDA, SORT OF The world is a changin are we keeping up? Typical spending on ICT in Governments and enterprises there is anotherway The new way is optimised data centres, efficient technology and cloudcomputing Cloud computing, driving innovation and flexibility at a dramatically lowercost The move does not need to be big bang Summary followed by questions 6. LET US START WITH GUESSING THE NEXT TECHNOLOGYMoores lawalive and kickingHis paper from 1965. 7. PROCESSING POWER AND INTELLIGENCE USAGE INHEALTHTUMOUR DEFINITION BY MOLECULAR ANALYSISWhen you think the cost of healthcare is predicted to rise by 50% by 2020 just tostandstill, using technology is crucial to the future of healthcareUK Government looking to save c83bn by 2014/15... Yet will need to save anotherc50bn by 2020 just to keep the NHS at the same level of 2011!Source: PwC Dec 2010 Build and Beyond pp10 8. OR THE VAST AMOUNT OF REAL-TIME DATA HARVESTINGWE FEEL FINEHARVESTING BLOGS AND SOCIAL SITES FOR HOW WE FEEL 9. PREDICTING SEISMIC EVENTS, VISUALISING DAMAGE,CHANGING BUILDING REGULATIONS TO SAVE LIVESSource: Cray Computers 10. ARTIFICIAL INTELLIGENCE 11. SO WHERE WOULD YOU PLOT YOUR KNOWLEDGE ONTODAYS TECHNOLOGY? BACTERIUM? MONKEY? HUMAN? 12. SO A QUESTIONSo hands up if youre keeping up? 13. THE CONSEQUENCES The cumulative Rate of change Area of lost opportunity?Area of more opportunity?Area of increased risk?Area of less risk? But where is your organisation?Our ability totake on boardchangeSource: based onabsolutely no datawhatsoeverTime 14. AND THE UNINTENDED CONSEQUENCESSource: FM Global 15. AND IT WOULD BE REMISS OF ME NOT TO MENTION CYBERSECURITY AND INFORMATION ASSURANCEIT IS NOTPOSSIBLE TO DO ALL DEFENCE ON YOUR OWN 16. THE OLD PARADIGM IS DEAD, LONG LIVE THE NEWPARADIGM, THE PIZZA PARADIGM OF ICTGlobal supply chainShrink wrappedCan be deliveredoptions available to almost anydoor Available globallyOpen source andcrowd sourceFast delivery components Instant gratification, Variable thickness or not!infrastructureEasy integrationwith otherTotallyoptions customisable Pay for use 17. SO IN SUMMARY A = Technology advancement in all fields continues to accelerate beyond the comprehension of those outside that field B = As business people our ability to keep up with this change and the consequences of this change is not possible A B = Trouble 18. OPTIONS FOR GOVERNMENTS AROUND THE WORLD WHICHDO YOU THINK IS THE MOST COMMONLY IMPLEMENTED?Is it easier for Governments to increase tax and reduce benefitsOrTransform public services?Outsource ?Rationalise departments?Implement Shared Services?Move towards a Common Infrastructure?Common ICT, applications, Cloud?Change procurement? 19. So a little about public sectors general use of ICT spend opportunities to radically change are huge if there is strong leadership 20. ICT across the Public Sector has key challenges that have arisen partly through the silod and individualdevelopment of ICT departments and agencies can, and do, make their own decisions A world phenomenon 21. Public Sector spending on ICT is approximately 3-5% of total expenditure each yearICT costs and legacy systems and supports a sophisticated and substantial ICT base Most areas of the Public Sector have similar ICT requirements, yet each provides itsDuplication own solution often duplicating what already exists Suppliers to Public Sector organisations are able to lock themselves into longSupplier lock-in contracts and render themselves indispensible as they own the ICT stack especially in an outsourced world Procurement activities are time consuming, costly and result in further lock-in ofLong timescalessuppliers. It is so painful we make the contract long so we dont have to repeat the process or we stick with our old supplier There are multiple large scale projects on-going across the Public Sector, but little Numerous, large projectsability to influence the upfront policy or design, development or ICT approach leading to overlap, inconsistency, duplication SMEs cannot afford to bid, large suppliers look to pass risk onto SMEs that they Lack of SME support cannot sustain 22. BASED ON GARTNER MODELLING TYPICAL SPEND ON ICT LOOKSLIKE THIS THIS MODEL IS TYPICAL FOR CORPORATE AS WELL53% of atypicalbudget is oninfrastructureOverheadsincreasingwith legacycomplexity ?Source Gartner analysis January 2010 23. However much of what we do is similar/identical. Typicallythe bottom of the ICT stack, the utility end is wheresubstantial opportunity exists for standardisation, simplification and common use 24. CommonSharedThe Technology Stack Infrastructure Reduced Costs Capability Specific to that Reduced costsSpecific ICT to thatorganisationthroughdepartment only Use and Re-Use Shared competitionacrosscomponentsLocalised applications departmentsOpen source/ standards/ innovationHR, Finance, ICT,Procurement etc. Simplification,Middleware, Databases standardisation,etc.Common shared InfrastructureData CentresVoice and DataSimplification, Reduced costsTelecommunications standardisation, throughCommon open mandationconsolidationDesktop and Peripherals Standards andsimplification, Architecturemandation 25. HOW MANY DATA CENTRES DOES IT TAKE TO RUN THE PUBLIC SERVICES OF THE U.K.? BY THE WAY THIS IS TRUE IN MOST COUNTRIES AND INDIVIDUAL STATES*TierUptime % Hours Cost Index CentralWider Public Down perGovernment Sector5 Years has Has (tier 2+)Server99.67144.54 18000+ Police 88room/Local Tier I GovernmentII99.75 109.5 1.49-1.65400+III 99.988.76 1.971 Australian220+IV99.994.38 3.11state hasList-X99.994.384.00-6+ 130A Tier IV Data Centre costs approximately 750 and 2,000 per square foot to build. A List-X facility is a specially protected and secured UK Government data centre (although maybe run/owned by a third-party) . The security addresses people, process, physical and technology. Issues.* Tier, uptime, cost index provided by the Uptime Institute. List-X cost index is an estimate 26. AND HERE IS THE HARSH REALITY OF OLD WORLD VERSUSNEW WORLD CISCO, VMWARE AND EMC 27. ONIS DATA CENTRE IS A PRIME EXAMPLE OF THISCHANGE Data guaranteed to stay within UK shores Very green, using the latest technology for cooling, re using the heat generated for hot water and heating the building Applying for List X approval All engineers are security cleared 28. And now to Cloud computing and removing the lock-outand lock-in problem, innovating, moving at speed andat a price you can afford 29. CLOUD COMPUTING, UBIQUITOUS HIGH SPEEDCONVERGED NETWORKS, A DEVICE FOR EVERYTHINGAND EVERYTHING A DEVICE 30. AND THERE ARE MANY DIFFERENT MODELS TO SUIT YOURMATURITY, REQUIREMENTS AND BANK BALANCE ONESIZE DOES NOT NEED TO FIT ALL 31. THE SYSTEMS INTEGRATOR LOCK-IN AND THE SME LOCK-OUT.THIS IS NOT A CRITICISM OF SUPPLIERS BUT A STATEMENT OF FACTON HOW ORGANISATIONS SOMETIMES DRIFT INTO A CERTAINMODEL WITH PROFOUND CONSEQUENCES TodayPareto works your top 20% suppliers get 80% of your businessApplication It can take 77 weeks to bid for a Government contract SMEscant afford to bid, or have the resources to tie up for so long Each layer is Suppliers claim framework bids can cost up to 500k, full bids upintricately to 10m and about 5% of full project costs is for the linked and procurement dependant Infrastructureon the nextGovernment procurement approaches try and pass much of therisk to the suppliers balance sheet. SMEs cant take that riskThe In the EU procurement rules say we cannot specify an ICTSystems product or brand. The SIs select the products, the brands, the Integratorarchitecture selects alland locks Frequently in outsourced contracts the SI design, develop, runIT Stackus in and maintain the whole ICT stack. You want to change you pay Cloud + app store can break this lock-in 32. IT GETS COMPLICATEDA SUPERMARKET ANALOGYThey heavily They decide how They own the They decide whatinfluence productmuch they tell store they want to sell input price youThey set theoutput price They decide on store setup The buyer can goIf you want to buy to many stores at from them youno costuse theircheckoutThe buyer can In store the buy the sameSuppliers to themproduct provider are subservient product fromaremany sellers disintermediated 33. AND THE SYSTEMS INTEGRATORS WORK IN A SIMILAR WAYThey heavilyThey decide what They decide howThey frequentlyinfluence productthey want to sell much they tell own the store input price(the procurementyou(the data centre) (SMEs/ products) process) (the bid, billing)They set theoutput priceThey decide on (cheapest on bid,store setupnot cheapest)(technology/stack)The buyer cant go to many storesIf you want to buy(contract, Costfrom them you useprocurement) their checkout(they control subs) The buyer can In store thebuy the same Suppliers to them product providersproduct fromare subservient are many sellers disintermediated(in theory) 34. CLOUDS WILL WORK WITH EXISTING DEPARTMENT ICT AND OTHERCLOUDS THEY WORK AT DIFFERENT SECURITY LEVELS AND SUPPORTOPEN AND PROPRIETARY TECHNOLOGY. ORGANISATIONS SHOULDFOCUS SOLELY ON THINGS UNIQUE TO THEM Amazon Justice DWP Unclassified/ Restricted Defence/ Government CloudGoogle Shared common HMRCUnclassifiedinfrastructure for Common systems/ Utility/ shared servicescomputing SalesforceMicrosoft .com unclassified/Restricted Defence 35. CLOUD, ISNT ONE THING: IT HAS FIVE WORLDS: HOSTING, TESTING,SHARING, WEB, SME. DEPARTMENTS WANT AND NEED DIFFERENT THINGSSO A CLOUD NEEDS TO OFFER THEM FLEXIBILITY TO MAKETHE OFFER COMPELLINGTestingworldPortal I dont want to buy computers to test new systems, can I rent them Hosting worldShared world from you? My computer systems are ERP HR/ Finance fine, I just want to close my data centres and use yours. Shared AppAppID&VWhat can be shared, should Give me economies of scale,be shared. Common shared AppSME security and growth, reducesystems for all to use.my capex needworldCan I use your Cloud tooffer services to my nonWeb world Government customers. Online/web UK tax growth, services toinnovation employees/ citizens and business 36. AND DRAWN ANOTHER WAY IT LOOKS LIKE THIS EACH WORLD ISPROVIDED WITH THE BASICS OF STORAGE, PROCESSING ETC. BUT HAVEFREEDOM TO DEVELOP AND RUN SOFTWARE USING ANY TECHNOLOGYSTACK ON A COMMON INFRASTRUCTURE Hosting TestingShared WebSMEData Storage Processing Capacity Security, Resilience, Support Software design, development , testing and integration tools/ components A choice of technology stack vendors 37. SO WHERE DOES AN APPLICATION STORE FIT IN? ITS A BAD NAME,THINK OF AN EBAY FOR GOVERNMENT OR DEFENCE OR ???, BUT WITHA TWISTApplications Store It could include: Classifieds, Buy It Now, Auctions eBaySuppliers/ SMEs can have their own store front Anyone can be in the store Marketing is cheap SMEs dont need capital to prove their software they can test it on the Management Tools Configuration Deployment Service Cloud No SI lock-in, no technology stack lock-inHostingTestingShared Web SME Any application or service from anyData Storage supplier(s) can be deployed on a common Processing Capacity infrastructure using any back end technology stack (the lines) Security, Resilience, SupportSoftware design, development , testing and integration tools/ components The infrastructure provider handles security and scalability. Think of it as the electricityA choice of technology stack vendors grid. They dont decide what you do with it It is pay for use, there is no lock-in to long term software licence contracts 38. SO WHAT DOES THIS MEAN FOR A DEPARTMENTSTECHNOLOGY, SYSTEMS, DATA CENTRES AND PEOPLE?ADD VALUE AND FOCUS ON ONLY WHERE YOU CANHighCloud should be consideredApplication/ Service run onon a case by case basis local departmentalinfrastructure,Controlled by department,Uniqueness of technology solutionMust conform to ICTstrategy/ StandardsApplication/ service run onCloud if application nonMandatory use of opencoreStandardsApplication/ service run on Application/ service run onCloud Cloud if application noncoreDepartments shouldconsolidate all their ICT intoa Cloud environment LowLowSize / Scale of Department and capabilityHigh 39. SO IN SUMMARY Everything as a service will happen. It has profound consequences for most roles, mostcompanies, most markets. Technology has changed dramatically, increasing opportunity and risk. Commodityitems should be commodity, common/shared items should be common and shared Cloud computing, however you define it, enables a significant shift in how technology isdesigned and deployed. It is a paradigm shift but takes leadership Dont get lost in the circular , my technology is better than yours debate, all technology ischanging so be flexible and pragmatic ONI set a good exampleAND FINALLY Pay-for-use, no big up front capital and licence payments means you can experiment -start moving some of the non mission critical systems into another world. Try building newapplications in the new world learn, learn, learn 40. THANK YOU 41. G-CLOUD 3rd TIME LUCKYANDY MACLEODSTRATEGY & POLICY, PUBLIC SECTOR CISCO 42. AGENDA Setting the scene John Suffolk comments A decade of change and innovation what next? Cloud Computing a stimulus for economic growth CloudWatch results from our survey Public Sector computing evolution scenarios Some good first steps Service maturity analysis Ciscos role in this transformation Q&A 43. CHANGING THE WAY WE... DO STUFF( BTW ITS A CLOUD DELIVERY)iVivaFOAF HobbyReputation What interests me Whats said about me 44. THE IMPACT THE INTERNET HAS ON OUR LIFE I cannot imagine a life without... A mobile phone: 97% The Internet: 84% A car: 64% My current partner: 43% % of 14 29 year oldsSource: BITKOM Bundesverband Informationswirtschaft,Telekommunikation und neue Medien e.V., 2010 45. AND EVERY MINUTE 20 HOURS OF VIDEO UPLOADED TO YOUTUBE 46. ARE BUSINESSES THINKING ABOUT CLOUD60%IT decision makers who saw public cloud as an enabler, versus 40% who viewed itas immature. Yankee Group, August 201070%IT decision makers using or planning to use enterprise-class cloud technology withintwo years. Savvis, July 2010100%Expected growth of server hardware market between 2010 and 2014 due solely toPublic and private cloud computing. IDC, August 2010It is adopting cloud now! 47. CLOUD INVESTMENT PLANS BY APPLICATION: GOVERNMENT Already invested Plans to invest in next 12 monthsWould potentially invest Will not investUnified communications 4%14%40%42%Web conferencing6%18%50%26% Video conferencing 6% 24% 42% 28%Voice services / VoiP4%10%42%44% Back up8% 20% 32%40%Supply chain6% 10% 26% 58% Business intelligence 4%8% 26%62%ERP4% 12%22% 62%Payroll / finance 10% 10% 20% 60% HR 10% 8%30%52% CRM 4% 18%20% 58% Desktop applications4%20% 40%36% Email hosting6% 16% 34% 44% 0% 20% 40% 60% 80% 100% Q4. For each of the following areas, please tell me if you have already invested, have plans to invest, would potentially invest or will not invest? 48. BENEFITS OF CLOUD COMPUTING BY SECTOR GovernmentHealthcareFinanceRetail Service providersReduced costs62% 52% 56%58%58%Better control of costs60% 42% 72%42%46%Increased responsiveness / scalability 48% 46% 42%46%46%Flexibility to change suppliers46% 40% 42%54%44%Easier maintenance 62% 66% 72%66%68%Improved service to our customers56% 32% 44%58%50%Automatic updates76% 48% 72%60%62%Rapid deployment / speed to market 62% 60% 62%56%66%Improved security22% 30% 26%30%28%Ease of integration44% 42% 46%42%48%Improved collaboration / communication 76% 46% 56%72%52%Other2%6%0% 0% 4%Q7. Which of the following do you consider to be the key benefits of cloud computing to an organisation in your industry sector over and above keepingIT in-house or using managed services? 49. KEY BARRIERS TO WIDER ADOPTION OF CLOUD BY SECTOR Government Healthcare Finance Retail ServiceprovidersSecurity and privacy concerns86%82%78% 72%60%Difficulties integrating with in-house IT66%74%64% 50%58%Difficulties integrating with other hosted 64%70%62% 48%56%servicesConcerns about supplier lock-in56%52%60% 56%56%Concerns about location of data70%62%70% 52%68%Lack of a heterogeneous management 30%36%30% 32%20%platformService model / SLA limitations46%48%52% 44%60%Technology / service immaturity58%42%52% 52%58%Lack of industry standards 56%50%52% 38%44%Service quality / performance concerns 52%48%58% 52%50%Doubts about investment / cost savings / ROI 50%58%44% 66%38%Cultural / organisational resistance 54%56%50% 54%62%Concerns about cost / charging models50%50%50% 62%36%Compliance concerns66%54%68% 56%46%Other2% 4% 0%0% 0% Q8. Which of the following do you consider to be key barriers to wider adoption of cloud in your industry sector? 50. USE / CONSIDERATION OF DIFFERENT CLOUD DEPLOYMENTMODELS: GOVERNMENTCurrently use Would consider usingWould not consider usingDont know Private cloud 28% 40% 20%12%Hybrid cloud10% 34% 34% 22% Public cloud16%22% 42% 20%Community cloud 8% 22%54% 16% 0% 20% 40%60%80% 100% Q11. Which of the following deployment models for cloud do you currently use or would you consider using? 51. CLOUD DATA CENTRE SPEND WILL BE $30B BY 2013 Cloud DC Spend (IT Infra, Mgmt SW, DC services) (estimate - $B) 35 30.2 30 25 21.8Internal 20Cloud 14.5 15 9.0 10 Public5.4 Cloud 5 02009 201020112012 2013 Source: Cisco IBSG; Note: Migration data based on Enterprise CIO/CTO interviews (primary research) 52. CLOUD AS A STIMULUS FOR ECONOMIC GROWTHEurope ( big 5) Ireland E9.5bn by 2014E177bn by 2015 8600 Jobs (+2000)2.3 million jobs 20% savings on IT costsCEBR report. Dec 2010 Goodbody report .Jan 2011 53. CORPORATE VIEW - EVOLUTION TO CLOUD LARGE ENTERPRISE - Virtualized Data CenterConverged ITInfrastructure Compute Network Storage Converged IT InfrastructurePrivate PublicCloud CloudControl combinedwith:On-demand Compute Rapid elasticityaccess to Computeadditional IT Resource pooling resources On-demand self-service and functionality Chargeability & Metering Network StorageNetwork Storage Agility / Speed ofresponseConverged IT InfrastructureConverged IT Infrastructure 54. G-CLOUD 2A MATURITY MODEL 55. NIST CLOUD MODEL - PUBLIC SECTOR USE CASE 56. SERVICE MATURITY ANALYSIS A GOOD FIRST STEP IT service audit Rationalise Consolidate Standardise Virtualise Automate 57. LEGACY ASIS CHARACTERISTICS 58. DISCRETE CLOUD CHARACTERISTICS 59. DYNAMIC CLOUD CHARACTERISTICS 60. OPPORTUNITIES FOR BOTH PUBLIC SECTOR AND INDUSTRY Basic requirements Cost, Agility and Innovation These can be addressed with Hybrid models You can build in community centric differentiators and services to support themigration Public Sector needs strong security and governance It simplifies cost benefit analysis and will shorten the sales cycle and reducescost of saleCultural and political barriers are being challenged from the top 61. CATALYSING AND POWERING THE MARKET TRANSFORMATION Provider Partner Success in Cloud Services Architecture OperationsCommercials Go To Market Standardise B-O-T Access to funds Simplify/Automate Accountability Pay-as-you-grow Co marketing More with less Access to key skills Outcome Based Grow servicesCosts, Agility, Scale Syndicate Risk Improve Cashflows Accelerate Success 62. THANK YOU 63. ENABLING DECISIONS AT THE SPEED OF SIGHT STACE HIPPERSON CTO REAL STATUS 64. NETWORKS SERVERSSTORAGESECURITY VIRTUALIZATION CLOUD 65. NETWORKSSERVERS STORAGESECURITY VIRTUALIZATION CLOUD 66. HYPERGLANCEYour whole IT estate Dynamic User-defined in one view 3d layout filtered views 67. HYPERGLANCEYour whole IT estate Dynamic User-defined in one view 3d layout filtered views 68. HYPERGLANCEYour whole IT estate Dynamic User-defined in one view 3d layout filtered views 69. INSIGHT 70. Exclusive focus Highly scalableAuto layout 3D topology Filtering 71. SEE, UNDERSTAND, ACT 72. CLOUD THE HIDDEN DANGERS TO DATA PROTECTIONLEWIS HONOURSECURITY BUSINESS PRACTICE MANAGER, ONI 73. CLOUD THE HIDDEN DANGERS TO DATA PROTECTIONLewis Honour Security Business Practice Manager CISSP Joined CLAS in 2001 74. CLOUD THE HIDDEN DANGERS TO DATA PROTECTIONQuestion 1: How well protected is your corporate or private data when it is moved to thecloud?Answer 1: It depends upon who is interested in your data or even just the meta data. Foreign governments directlyorForeign governments indirectly. 75. CLOUD THE HIDDEN DANGERS TO DATA PROTECTIONQuestion 2: Is any of your private data housed, stored or processed by a company, whichis a U.S. based company or is wholly owned by a U.S. parent company? (Amazon, Microsoft 365, Rack Space, HP, AT&T, IBM etc)Why? 76. PATRIOT ACT CAN ACCESS EU-BASED CLOUD DATA Any data which is housed, stored or processed by a company, which is aU.S. based company or is wholly owned by a U.S. parent company, isvulnerable to interception and inspection by U.S. Authorities. 77. PATRIOT ACT CAN ACCESS EU-BASED CLOUD DATA 78. MICROSOFT AND GOOGLE JOIN THE PRIVACY DEBACLE 79. THANK YOU 80. WRAP-UP & CLOSE Insightful and thought provoking session There is no one size fits all Many considerations and ways forward Partnership is key Public Sector focus Track record Expertise & Experience Design, Implement & Support UK based Tier 3+ Data Centre ONI Workshops & road-mapping sessions Thank you and please join us for Drinks and Canaps Feedback forms