the cloud imperative: leading practices for optimizing cloud computing acquisition and deployment...

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The Cloud Imperative: Leading Practices for Optimizing Cloud Computing Acquisition and Deployment Presentation to Nat’l Association of State Procurement Officials 17 April 2012 Carol Henton, TechAmerica and Gary Lambert, Commonwealth of Massachusetts

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The Cloud Imperative: Leading Practices for Optimizing Cloud

Computing Acquisition and Deployment

Presentation to Nat’l Association of State Procurement Officials

17 April 2012

Carol Henton, TechAmerica and

Gary Lambert, Commonwealth of Massachusetts

Presentation Overview

• TechAmerica and its State & Local Government Cloud Commission (SLG-CC)

• Understanding Cloud– What it is, why it saves money, how it helps

• Acquisition (aka Procurement) Issues and Challenges for States & Localities

About TechAmerica TechAmerica was formed in 2009 by merger of four

organizations:

Leading voice for the U.S. technology industry Approx. 1000 member companies – from startups to multinationals. Technology industry's only grassroots-to-global advocacy network Leading advocacy trade association on both federal and state procurement issues

TechAmerica Foundation’s mission is: To educate executives, policymakers, press, opinion leaders, and the public on the size,

scope, outlook, and impact of technology To promote technology led ideas that advance economic growth and U.S.

competitiveness

SLG Cloud Commission• Launched in September 2011

– Key facts and figures

• SLG-CC followed TechAmerica’s Federal Cloud2 initiative, which produced a Federal Cloud Buyer’s Guide in July 2011

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38 Companies/Commissioners participated

35 Deputy Commissioners

13 Government Advisors (State, County, and City)

2 TechAmerica Foundation dedicated staff

Plus Writers, Web Designers, PR firm, Graphics Designer and more

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TechAmerica State and Local Cloud Commission products:1.Report -- “The Cloud Imperative – Better Collaboration, Better Service, Better Cost”

• Executive Summary plus • “A Comprehensive Guide for Best

Practices in Cloud Computing for SLGs”

2.Web Platform/Common Portal• www.cloud4slg.org

3.Event: Released at a major event in Silicon Valley on February 16, 2012

What is Cloud?

Cloud is:• The on-demand provisioning of applications,

services, and/or infrastructure from a network, rather than a local computer

• Not new technology, but new management capabilities, processes, and packaging

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Cloud Definition• NIST* definition of Cloud

• This cloud model promotes availability and is composed of:– 5 essential characteristics– 3 service models– 4 deployment models

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*National Institute of Standards and Technology-v15

Cloud is not just about technology but about automating service management

Cloud is not just about technology but about automating service management

Let’s quickly review to have a common basis of understandingLet’s quickly review to have a

common basis of understanding

NIST Cloud Model Defines Three Dimensions

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National Institute of Standards and Technology-v15

Essential CharacteristicsEssential Characteristics5

• On-demand self-service• Broad network access• Resource Pooling• Rapid elasticity• Measured service

Service ModelsService Models3 • Cloud Software as a Service (SaaS)• Cloud Platform as a Service (PaaS)• Cloud Infrastructure as a Service (Iaas)

DeploymentModelsDeploymentModels

• Private Cloud• Community Cloud• Public Cloud• Hybrid Cloud4

Why Cloud?• Cloud is frequently promoted for:

– Cost savings and efficiency– Flexibility and scalability– Reduced data center issues– Rapid application development– Better data security

• Cloud can enable innovation– Not a solution, but a catalyst for change– Drive speed, efficiency, creativity, access– Support collaboration, transparency, insight

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ValueValueValueValue

Why Cloud?• But some fear:

– Loss of control– Other data privacy and security issues

• Audit process support, data location, etc.

Excerpt from SLG-CC Report…

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Business Value ImpactCASE STUDY and USE CASE INVENTORY

Thirty (30) plus Case Studies included in the report and/or posted on SLG-CC web portal

Several newly document SLG “Use Cases” (e.g., City of Houston Water Meter billing, three counties in Colorado)

Includes tools and resources from both industry and SLG stakeholders -- for example: sample contract RFPs, White Papers, Technical Papers, “The Cloud Cookbook” written by Wisconsin’s enterprise architecture expert Kevin Acker, blog postings

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Cloud Considerations• Risks

– Portability• Data• Service

– Security– Appropriate Service

Levels– Securing Funding– Contract Terms– Getting the SLA Right– Governance

WSCA – eProcurment

System Cooperative

Oregon – Building

Permitting

Virginia – eVA Procurement

System

Arizona – eProcurement

System

Nebraska – Enterprise

Job Applicant System

Maine – Hosted

ERP

Illinois – Private Cloud email

Hudson Cty. NJ – Private

Cloud for Disaster

Recovery

New Mexico – AG’s email and

Staff Scheduling

System

CA Dept. of Financial

Institutions – Records Request

Management System Using CRM

Technology Impact – Service Orchestration

• Leveraged NIST Cloud Computing Reference Architecture• Physical Resource Layer (Hardware, Facility)

– Focus on issues related to base hardware/software platform and servers

– Standards versus propriety– Commodity versus state of the art or bespoke

• Resource Abstraction and Control Layer– Focus on Hypervisor issues and recommendations– Commercial versus open source, bare metal versus OS hosted, etc.

• Service Layer (IaaS, PaaS, SaaS)– Focus on recommendations for higher level services– Elasticity, bursting, provisioning, app development, deployment,

scaling

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Technology Issues Impacting Adoption of Cloud Solutions

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Implementation Issues Impacting Adoption of Cloud Solutions

• Research and report on key recommendations and guidelines that address the issues facing SLG IT Services leaders when planning and implementing Cloud based resources and business models– Focus on four key stages.

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Cloud Readiness

Implementn. Best Practice

Risk Assessment

OperationsBest Practice

Issues Unique to State and Local Governments

• Unique state and local laws/practices• State data location requirements• Budgetary issues with legislators• Outsourcing issues

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Acquisition and Contracting Issues Impacting Adoption of Cloud Solutions

• Key Takeaways on Cloud Solutions Procurement --

• Successful cloud procurements must address these three key areas:– Procurement Vehicles– Pricing/Business Models– Key Contractual Terms– Funding Streams

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SLG Cloud Commission Report Key Takeaways on Cloud Procurement (continued):•Procurement vehicles in use today may or may not be specifically designed for cloud services. •Contract vehicles for cloud services are also offered by multi-government consortia and the federal government;•To date, private clouds have dominated state CIO discussions. Factor in the need for varying application requirements such as development and test environments, prototyping, collaboration and e-mail and the cases for hybrid and virtual private clouds are gaining ground;•Private clouds offered by cloud vendors have the potential to obviate the need for large capital expenditures by state and local governments;•Acquiring cloud architectural design services raises specific procurement issues which must be addressed.

SLG Cloud Commission Report Key Recommendations for Cloud Procurement: •Create a state RFP specifically tailored for cloud services to support a variety of delivery models – and available for use by local governments;•When using an existing, non-cloud specific procurement vehicle, use terms and conditions specific to cloud services;•Develop and require specific terms and conditions for data portability, records management, security and privacy, and SLAs;•When addressing multijurisdictional clouds highlight and adjudicate governance issues;•Create or leverage buyer’s guides, including those from Federal and commercial sources, to vet and prequalify providers.

SLG-CC continues into the future• SLG-CC’s Web Portal – www.cloud4slg.org

– Best Practices and Use Case examples• We’ve posted more than 35 to date; more are needed!

– Tools and Resources• White Papers, Analyst Research, Case Studies go here

– Community: • Expert Opinion/Cloud Community Dialogue

– Marketplace: Area for leading providers of cloud to offer their wares

• Speaking to government customers– Via webinars and other events

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Questions… or to offer content to be added to cloud4slg.org web portal, contact:

Gary Lambert, Chief Procurement Officer, Commonwealth of Massachusetts, [email protected]

Carol Henton, Vice President, State & Local Government, TechAmerica, 650-357-7728,

[email protected]

Michael Kerr, Senior Director, State & Local Government, TechAmerica, 703-284-5324, [email protected]

THANK YOU