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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
       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


            4
    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




5
                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



            6
                                                      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

                                           7
     NIST Cloud Model Defines Three Dimensions
                                                     •   On-demand self-service


       5             Essential
                     Characteristics
                                                     •
                                                     •
                                                     •
                                                     •
                                                         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)




       4
                                                     •   Private Cloud
                     Deployment                      •   Community Cloud
                     Models                          •   Public Cloud
                                                     •   Hybrid Cloud

National Institute of Standards and Technology-v15




                                   8
                   Why Cloud?
• Cloud is frequently promoted for:
  –   Cost savings and efficiency
  –   Flexibility and scalability
                                             Value
  –   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
            9
                   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…




       11
                Business Value Impact
CASE 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




               12
Cloud Considerations
        • Risks
           – Portability
               • Data
               • Service
           – Security
           – Appropriate Service
             Levels
           – 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
                                                      Recovery
    CA Dept. of                                                New Mexico –
     Financial
                                            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
     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

             16
Technology Issues Impacting Adoption of Cloud Solutions




          17
     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
                                                 Readiness



                                 Operations                        Risk
                                Best Practice                   Assessment



                                                Implementn.
                                                Best Practice



          18
Issues Unique to State and Local Governments

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




           19
   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

          20
         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, gary.lambert@state.ma.us

 Carol Henton, Vice President, State & Local Government,
              TechAmerica, 650-357-7728,
             carol.henton@techamerica.org

 Michael Kerr, Senior Director, State & Local Government,
  TechAmerica, 703-284-5324, mkerr@techamerica.org

                       THANK YOU

								
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