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Mukesh Chulani Research Manager, MEA IDC Government Insights June 14, 2012. Cloud Computing: A Paradigm Shift of Government ICT. (Good Luck) Defining Cloud Computing. (Good Luck) Defining Cloud Computing. CEO. “Cloud is a buyer-centric view of technology where applications are

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cloud computing a paradigm shift of government ict

Mukesh Chulani

Research Manager, MEA

IDC Government Insights

June 14, 2012

Cloud Computing: A Paradigm Shift of Government ICT

slide3

(Good Luck) Defining Cloud Computing

CEO

“Cloud is a buyer-centric view of technology where applications are

available through purchase or rental, wherever and whenever.”

Cloud Computing is all of these things!

“Cloud is an approach to consume technology in a pay-as-you-go model

where consumers only pay for what they use.”

CFO

CIO

“Cloud is a comprehensive virtualization model for technology from the

infrastructure layer all the way to application delivery.”

state of colorado legacy ict profile
State of Colorado: Legacy ICT Profile

FY 2012: Approximately $300 million ICT budget & nearly 900 employees, ~$100 million in non-personnel related operational expenses

FY 2012: Approximately $21 billion in operating funds & nearly 51,000 employees

  • Agency-by-agency ICT provisioning resulted in 40+ data centers, 15 disparate networks, 400+ LOB systems, and 1,800 servers (including 122 servers dedicated to provisioning email services.

Source: Office of Information Technology, State of Colorado

colorado s legacy system assessment 2009
Colorado’s Legacy System Assessment (2009)

Source: Office of Information Technology, State of Colorado

cloud computing based it resource growth model
Cloud computing-based IT resource growth model

Time to utilize

Resource Growth Rate

Excess Capacity Purchased

Resource Usage Growth

Traditional IT Growth Pattern

Cloud Growth Pattern

Time

colorado s cloud strategy october 2011
Colorado’s Cloud Strategy - October 2011
  • “Colorado is adopting a Cloud-First policy. All new services and applications & major revisions will be supported in a cloud-based environment first, unless there are significant reasons to host these on the State’s private infrastructure.”
  • Public Cloud
  • Communication and non-sensitive data dissemination , e.g. email, office productivity,
  • collaboration tools, and websites
  • March 2012, enterprise email for 26K FTE’s to be moved to Google .
  • E-Fort Private Cloud
  • Core and highly-secure data including taxes, Medicaid, driver’s licenses, vital records, and law enforcement

Savings

Estimated US$8 million annually + cost avoidance of nearly $20 million between 2012-2015.

  • VPC
  • Hosting large systems such as ERP, improving disaster recovery capabilities and providing storage and archiving.

Source: Office of Information Technology, State of Colorado

colorado s cloud readiness decision tree
Colorado’s Cloud Readiness Decision Tree

Source: Office of Information Technology, State of Colorado

colorado s cloud security approach
Colorado’s Cloud Security Approach
  • Office of Information Security is a unit within OIT tasked to be the single state source for cyber security readiness and awareness.
  • Adopted the consensus-based Center for Internet Security benchmark standards
  • IT Security policies governing:
    • Information Security Planning
    • Incident Response
    • IT Risk Management
    • Disaster Recovery
    • Vendor Management
    • Network Operations
    • Access Control
  • Change Control
  • Physical and Personnel Security
  • Data Classification, Handling, and Disposal
  • System Access and Acceptable Use
  • Online Privacy
  • Security Awareness
  • Security Metrics Measurement

Source: Office of Information Technology, State of Colorado

state of michigan legacy ict profile cloud strategy
State of Michigan: Legacy ICT Profile & Cloud Strategy

FY 2011: Approximately $48 billion in operating funds & nearly 48,000 employees

FY 2011: Approximately $415 million ICT budget & nearly 1,600 employees, 11% CAPEX

  • The first published state government cloud computing strategy in the U.S. (October 2010)
  • Government Cloud
  • Primary business support functions that are critical to government operations or impose unique security requirements and legal constraints

Mandate: “Rapidly create a service transformation capability to transform core services.”

  • External and Commercial Cloud
  • Secondary business support functions that are not critical and do not impose unique security requirements or legal constraints

Source: Department of Technology, Management, and Budget, State of Michigan

michigan s cloud readiness decision tree
Michigan’s Cloud Readiness Decision Tree
  • Multiple potential consumer agencies?
  • Successful 3rd party implementation to emulate?
  • Primary or secondary government function?
  • Leverages architecture planned to be adopted or retained?
  • Internal resources and skills able to deliver the function?

Source: Department of Technology, Management, and Budget, State of Michigan

slide15

Michigan’s Cloud Hosting

  • Automated Hosting (AH) service deployed as private cloud solution; live in May 2011
  • Feature and cost competitive with leading public cloud IaaS vendors such as Amazon EC2 and Rackspace. Usage-based billing at a daily rate.
  • Total project cost = $118K. Project payback occurs in 5 months. In 8 months, ROI = 248%

Source: Department of Technology, Management, and Budget, State of Michigan

slide17

“Start where you are.

Use what you have.

Do what you can.”

-- Arthur Ashe

slide18

Thank You!

mchulani@idc.com