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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
     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

 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.
          SLG Cloud Commission
• Launched in September 2011
   – Key facts and figures
       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
• SLG-CC followed TechAmerica’s Federal Cloud2 initiative,
  which produced a Federal Cloud Buyer’s Guide in July 2011

    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
    2. Web Platform/Common Portal
    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

                                                      Cloud Definition
     • NIST* definition of Cloud
*National Institute of Standards and Technology-v15
                                                                Cloud is not just about technology
                                                           but about automating service management

     • This cloud model promotes availability and is
       composed of:
               – 5 essential characteristics
               – 3 service models
               – 4 deployment models
                                                                 Let’s quickly review to have a
                                                                common basis of understanding

     NIST Cloud Model Defines Three Dimensions
                                                     •   On-demand self-service

       5             Essential
                                                         Broad network access
                                                         Resource Pooling
                                                         Rapid elasticity
                                                         Measured service

       3             Service Models
                                                     • Cloud Software as a Service (SaaS)
                                                     • Cloud Platform as a Service (PaaS)
                                                     • Cloud Infrastructure as a Service (Iaas)

                                                     •   Private Cloud
                     Deployment                      •   Community Cloud
                     Models                          •   Public Cloud
                                                     •   Hybrid Cloud

National Institute of Standards and Technology-v15

                   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
                   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…

                Business Value Impact

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

Cloud Considerations
        • Risks
           – Portability
               • Data
               • Service
           – Security
           – Appropriate Service
           – Securing Funding
           – Contract Terms
           – Getting the SLA Right
           – Governance
    WSCA –                                    Maine –
  eProcurment                   Oregon –      Hosted                 Nebraska –
     System                     Building       ERP                    Enterprise
  Cooperative                  Permitting                           Job Applicant
                                                     Hudson Cty.       System
      Virginia – eVA     Arizona –                   NJ – Private
      Procurement      eProcurement                   Cloud for
          System          System                      Disaster
    CA Dept. of                                                New Mexico –
                                            Illinois –         AG’s email and
   Institutions –
 Records Request                             Private                Staff
  Management                                  Cloud             Scheduling
System Using CRM                              email               System
   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
   – 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,

Technology Issues Impacting Adoption of Cloud Solutions

     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.                     Cloud

                                 Operations                        Risk
                                Best Practice                   Assessment

                                                Best Practice

Issues Unique to State and Local Governments

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

   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

         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
• 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
• 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
    SLG-CC continues into the future
• SLG-CC’s Web Portal –
  – 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

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

Gary Lambert, Chief Procurement Officer, Commonwealth
      of Massachusetts,

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

 Michael Kerr, Senior Director, State & Local Government,
  TechAmerica, 703-284-5324,

                       THANK YOU

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