Transcript of "CIO Strategies 2013 - Cloud Computing for Public Sector and Government"
Savvis IT Infrastructure2013 Global IT Leadership Report CIO Strategies, 2013 Cloud Computing for Public Sector and Government
The Future is Hybrid CloudThe UK Public Sector faces ongoing scrutiny Jonathan Sowler, Vice President, Governmentand pressure to improve performance, offer Industry, Savvis believes that the public sector’sfaster, convenient, accessible and interconnected “lack of IT integration has a significantly negativepublic services, at a time when resourcing and effect, leading to duplication of effort and inefficientfunding are in short supply. The UK government’s processes”. He explains that for the public sectorDigital by Default strategy, set out in the report to operate flexibly and productively, IT leaders of“Directgov 2010 and Beyond: Revolution Not local and central government need to moderniseEvolution” highlights the need to make “radical and remodel IT delivery infrastructures to take fullimprovement to Government internet services to advantage of technologies now available.provide higher quality and more convenient 24/7services to users.”* Sowler recommends a “buy not build approach, analogous to the consumption of electricity andIn other areas of the public sector too, the focus other utility services, to better meet governmentis on modernisation and consolidation to reduce demand for compute resource”. He believes theboth cost and waste. “The government aims to most efficient way to modernise public servicesachieve efficiency and financial savings of £20 is to establish a hybrid infrastructure with privatemillion in 2012-2013, £60 million in 2013-2014 and and public cloud services and colocation of£80 million by 2014-2015 through the displacement government-owned IT assets delivered as aof data centres in favour of the Cloud.” managed service by a well-established service Source: Government ICT provider with end to end hybrid capability. “In this Strategy Cabinet Office 2011 way IT leaders in public sector organisations can achieve cross-government economies of scale,IT leaders in all UK public sector organisations deliver responsive IT systems and exploit neware feeling the pressure. Independent research*, technologies at affordable, opex-based prices.”conducted by Savvis tells us the top threepriorities for heads of IT in central and local IT Outsourcing and Cloud Strategies forgovernment are driving efficiencies across the Public Sector – the Benefits are Clearbusiness to improve performance; increasing Savvis research reveals the top three areascollaboration across systems and people to in which public sector IT heads expect todeliver connected, fast and seamless services; and gain efficiencies: moving to an on demandaccessing the right skills and specialist knowledge, infrastructure model where IT capacity canat the right time. easily be scaled up or down in line with business demand, standardising IT infrastructure andThe challenge for public sector CIOs is intensified, changing IT staffing levels and roles to drivehowever, due to a lack of IT funding as well efficiency and reduce waste.as the industry trend of low investment setagainst a backdrop of large, unwieldy legacy IT Government heads of IT are very clear on theinfrastructures, disconnected systems and a high benefits of outsourcing. They told us they expectproportion of manual processes. savings of just over 22 percent of IT budget, and the top reasons they would increase the amount Three Key Priorities for Public Sector CIOs of infrastructure they outsource are: in 2013 • Increase IT agility 1. Gain efficiencies across the organisation • Eliminate dependence on legacy infrastructures 2. Increase collaboration 3. ain access to the best people with the G • Move capex to opex right specialist skills • Refocus resources on core strengths2013 Global IT Leadership Report: Cloud Computing for Public Sector and Government 2
One survey respondent said “outsourcing made it “As a result, a hybrid data centre environmenteasier to justify trying new types of IT services as has been created, combining in-house services,there is less risk involved. It is cheaper and easier collocated services, hosted services and publicto be agile and flexible with new products.” and private cloud computing.”“The Government’s ICT strategy, issued by the McCreath advises public sector CIOs to selectCabinet Office in 2011, outlines a firm agenda an IT infrastructure provider that has capabilityfor data centre, network, software and asset across the hybrid value chain from colocation,consolidation” says Jonathan Sowler, “and a focused managed hosting, private and public cloud, asshift towards cloud computing to create a common well as networking and consultancy services. HeICT infrastructure. He explains “the public sector says “not all utility computing providers are equal.stands to benefit from cloud computing in several Infrastructure-as-a-Service should be providedkey areas: reduced cost and complexity, greater according to a flexible model that lets governmentpredictability, accelerated delivery and reduced departments choose which components of their ITrisk, as well as lower barriers to change, such as the infrastructure they continue to own and manage,ability to buy through a range of vendors rather and which aspects are more appropriately ownedthan a few large system integrators.” and managed on their behalf.”Survey respondents agreed that “Service He goes on to explain how a hybrid solution couldProviders offer expertise that we do not have. work in practice:Outsourced solutions can help us achieve our • egacy applications could be hosted and Lobjectives quicker and more cost effectively,” migrated to a cloud utility model over time, andadded one CIO. if relevant. • ore or select government services would continue CReinventing Public Sector IT Delivery to be supported in a colocation data centre.Models in the Cloud • ore government services could be managed or CCloud computing offers compute resources on a hosted in a private clouduser and per usage basis often with no fixed term • pikes in demand could be supported by cloud Scontract or up-front fees, and can be used for bursting into the public cloud to avoid overindividual projects, by department or function, or provisioning and waste.throughout an entire organisation. This type ofdelivery model is also known as utility computing Public Sector Adoption of Cloudand can be deployed within a private cloud Computinginfrastructure to assure security, privacy of dataand SLA driven performance targets, or a public IT leaders in central and local governmentcloud infrastructure where cost reduction and companies agree on the value of cloudcapacity spikes are the priority. computing, with 45 percent of heads of IT of public sector organisations having adoptedPublic sector survey respondents cited the private cloud computing, 21 percent use a hybridbenefits of utility computing as reducing cost, model of part private and part public cloud, andimproving quality of service, as well as IT 16 percent use public cloud services. Figure 1infrastructure scalability and flexibility, enhancingsecurity and reducing administration time.* Jonathan Sowler comments “as part of internal targets to drive efficiencies, governmentIn his role as Director of Cloud Solutions at Savvis, departments are rationalising server estates byAndrew McCreath is regularly on site working with turning to private cloud”, he believes that thispublic sector organisations. “The challenge is that trend will continue as long term governmentmost organisations have legacy solutions with contracts come to an end, and accredited publicageing infrastructures, so they still need to own clouds emerge. “Attitudes are changing becauseon-premise IT equipment and use colocation and government heads of IT now know more aboutother physical services,”. He continues “the vision of a cloud, and are taking advantage of governmentutility computing model does not demand wholesale accredited services available in the public cloud”.overnight migration to the cloud. Government datacentres are typically the embodiment of years ofconflicting pressures and operational requirements.”2013 Global IT Leadership Report: Cloud Computing for Public Sector and Government 3
He believes hybrid cloud adoption is set ona similar course with “secure data sitting in a Figure 2:dedicated government accredited private cloud, Select the most important benefits ofwhere high volume workloads and peaks are cloud computingmanaged by the public cloud”. 23% Figure 1: Does your company use cloud 23% computing? 29% 50 23% 40 29% 24% 30 29% ability to scale up and down compute, storage and 20 bandwidth consumption to manage ﬂuctuating demand 29% reduced administration time 24% fast provisioning time 10 23% enhanced security 23% faster time to market 23% ﬂexible billing models 0 Yes, we use ‘private’ cloud services Yes, we use ‘public’ cloud services Yes, we use a hybrid model of part private/public cloud Figure 3: Which of the following applicationsGovernment IT leaders reported many benefits are you currently putting in the cloud?from cloud computing, from ease of being able toscale up or down compute, storage and bandwidth Emailconsumption to manage unpredictable andfluctuating demand , to reduced administrationtime, faster provisioning, enhanced security, faster Intranettime to market and flexible billing models. Figure 2The CIOs surveyed represented large public sectorand enterprise organisations (three out of five work Website Micrositein public sector companies with more than 5000employees) with complex legacy IT infrastructures,large application sets and a high degree of CRMcustomisation. From the range of applicationsthat IT could potentially outsource, heads of ITare choosing those that are the most portableand easily separated from existing systems. These 0 10 20 30 40 50 60 70applications are often non-mission critical, andviewed as an overhead, so reducing the cost ofmaintenance is highly desirable: 64 percent of IT When asked what applications IT leaders areheads use cloud computing for email, 55 percent evaluating for the cloud, 31 percent said batchfor intranet, 41 percent for website and microsites processing of large quantities of data, for example,and 41 percent for CRM applications. consumer transactions for benefit claims or tax returns. Thirty percent said backup and disaster“Government departments are risk averse and like recovery, 28 percent test and development, perhapsto take a proven approach, so starting with simple in recognition of the flexibility and scalability cloudapplications that lend themselves to Software-as- offers, as well as the ability to turn cloud services ona-Service, like CRM, makes sense” says Sowler. and off quickly.2013 Global IT Leadership Report: Cloud Computing for Public Sector and Government 4
Sowler adds “Government typically generates lots storage to the public cloud, 7 percent outsourceof data and they have a duty of care to protect Big Data analytics and 12 percent outsourceand secure that data. Cloud is a cost effective, Mission Critical applications.resilient way to achieve that”. This result is surprising, says Sowler, as we wouldn’t have expected to see mission Figure 4: critical applications outsourced to the public Which applications are you evaluating cloud. However, there are some government for the cloud? departments that consider email and online services as mission critical, so if this is the case, it makes more sense” responds Sowler. Batch Processing Back Up and Figure 6: Disaster Recovery For which applications does your company use public cloud throughout Test and the organisation? Development 0 10 20 30 StorageFor some applications, IT leaders in the publicsector show a high level of commitment to cloud Big Data Analyticsas they have completely transitioned entireapplications to a private cloud deployment. Mission CriticalEach of these applications can either operate as Applicationsdiscrete areas, such as test and development, 0 10 20or are new technology areas such as Big Dataanalytics, with fewer legacy complications.Seventeen percent of public sector IT leaders Overcoming Public Sector Resistance to the Cloudoutsource their entire test and development In his work with public sector organisationsfunction, 13 percent their storage and Big Data Andrew McCreath has seen a growing trend toanalytics applications. Figure 5 cloud and utility based computing and believes that will continue. Yet when asked why some IT heads were not using cloud services, McCreath Figure 5: explains, “They tend to have concerns around For which applications does your the amount of management resource required, company use private cloud throughout or compliance and legal reasons of ensuring data the organisation in this area? is processed in authorised jurisdictions, whereas others are deterred because their applications cannot easily be migrated to the cloud.” Test and Development There will always be those that take longer to convince, he says, but we’ve actually come a long Storage way, as for many years the main resistance was cultural, a difficult area to address because it’s less tangible. At least now the reasons are practical Big Data Analytics ones, so they can be tackled, resolved and 0 10 20 changed over time says McCreath. “Government should always look to outsourceInterestingly, there is a significant difference in the less important areas, but aim to retain what’sthe number of respondents who outsourced their important, like strategy, or work that requiresentire application to the public cloud, compared to specialist government knowledge or is criticalapplications outsourced to the private cloud. Eight to their business” adds Sowler, “but what’spercent of public sector CIOs outsource all their equally important; is to maintain a significant2013 Global IT Leadership Report: Cloud Computing for Public Sector and Government 5
understanding of technology in house, so that McCreath believes that compliance and datagovernment IT heads know how to exploit security have always been priority areas oftechnology to full advantage for their business” concern for government departments and publicemphasises Sowler. sector organisations. So much so, that the UK government has developed a Compliance Scheme and we’re starting to see new ‘compliant’ or Figure 7: ‘accredited’ services being made available, he What are the reasons for not using cloud explains. In time, concerns around compliance computing within your company? will disappear and that change has already started to happen. What we’ll end up with is a 60 list of objections, similar to the those once held by commercial enterprise, around managing, 50 integrating, procuring and securing services. 40 What to Consider when Selecting an Enterprise Cloud Provider 30 1. ybrid Cloud Capability - select a hybrid cloud H solutions provider offering a mix of colocation, 20 private and public cloud deployment to manage legacy technology and new and 10 developing IT requirements. 2. ervice providers who can offer L1 and L2 S 0 government accredited services 47% Concerns over how much management and 3. nterprise-class Proven Experience - work with E control resource is required a provider that has a track record in delivering 47% application compatibility issues enterprise cloud solutions for high availability, 33% legal/compliance issues about processing workloads in an unknown geographic location performance, scalability, business class SLAs and self-service tooling. 4. ata Sovereignty - choose a provider DMcCreath explains that one of the benefits of cloud with a global network of data centres andis that it greatly reduces capital investment, not only with multiple data centres in all the majorbecause the service provider takes responsibility commercial centres required, so companiesfor delivering, maintaining and owning the IT can select the best in-country data centreinfrastructure, but because they also manage location to support their compliance and legaland support the whole service.” He continues “IT requirements.heads of public sector need less capital for the 5. True Utility Contract – make sure the provider Ainfrastructure, and less capital for resourcing, as offers a consumption model that’s charged ondelivery is down to the provider. In fact even less a per user and usage basis, that’s transparent incapital is required as the provider signs up to SLAs, all its conditions.so performance is easy to monitor.” 6. nterprise-Class Security – with government E security accreditation for all core utility services“Many government departments and public sector and facilities, as well as dedicated security teams.organisations have large application estates, and 7. edicated Network Connectivity – to help Dor legacy applications. Cloud promises long term ensure a robust, enterprise level security tobenefits but sometimes there’s a short term pain all network traffic irrespective of bandwidthfor applications that need to be reconfigured and required.made ready for the cloud. In some cases and withcertain applications it may not make sense tomigrate everything to the cloud, but this is usuallyhighlighted in the evaluation and business casestage of the process.” He says “that’s why it’s soimportant to have a provider that can deliver ahybrid of colocation, private and public cloudservices, to cater to every eventuality, as well asfuture needs”.2013 Global IT Leadership Report: Cloud Computing for Public Sector and Government 6
What? Why? Colocation Offers government IT departments space Delivers considerable economies of scale, and power for their servers and networking frees up internal networks, can accelerate equipment in the service provider’s data centre access speeds due to increased bandwidth Managed Provides dedicated servers and a full suite Alleviates government IT departments of Hosting of technical support, maintenance and virtually all administrative and maintenance monitoring services tasks and is a strong solution for legacy applications Dedicated Delivers a fully managed, customisable, Enables government IT departments to Cloud private cloud infrastructure with dedicated, deploy compute and storage resources secure virtualised hosting quickly and easily when needed Open Cloud Multi-tenanted public architecture offers a Compute resources can be provisioned highly flexible computing environment with elastically without the burden of long-term the scalability and security of an enterprise- contracts or the lead-time of traditional class platform deploymentsConclusion About SavvisIT leaders in the public sector and government Savvis, a CenturyLink company, is a global leaderare under never ending pressure to squeeze more in cloud infrastructure and hosted IT solutionsand more value out of their IT infrastructure, drive for enterprises. Nearly 2,500 unique clients,down costs and deliver better value to the tax including more than 30 of the top 100 companiespayer. As a result, many heads of IT are rethinking in the Fortune 500, use Savvis to reduce capitalbusiness models and combined with government expense, improve service levels and harness thedirectives to go digital by default, are adopting latest advances in cloud computing.utility computing to help them achieve this. For more information:Struggling to manage IT legacy and a move to Call us on +44(0)207 400 5600 email us at:cloud computing, government heads of IT are fast email@example.com or visit us atrealising the benefits of hybrid cloud, combining www.savvis.co.ukcolocation services for legacy infrastructureand applications, along with a combination of About the Researchprivate and public cloud services to blend the This independent survey was commissioned byoptimum mix of performance and cost efficiency, Savvis and conducted with 550 CIOs, IT Directors,compliance and security. Heads of IT and Senior IT Managers of global enterprises based in the USA, UK, Germany,2013 will be the year of the hybrid cloud for the Japan, Hong Kong and Singapore. 35% of thepublic sector audience was from financial services companies with more than 500 employees and global annualFind your solution with Savvis revenue between $1billion and $100billion. ThePublic sector and enterprise organisations around research used a combination of online fieldworkthe world have turned to Savvis to help them methodology and telephone interviewing and wasachieve the IT infrastructure they need to excel conducted by Vanson Bourne, a research basedin today’s constantly changing markets. Savvis technology marketing consultancy committed towill help you make the right decisions about how the latest MRS Code of Conduct.and where to house your data and infrastructure.Using a blend of colocation, managed hosting andpublic and private cloud services, we can ensureyou achieve the efficiencies you’re looking for, theagility your business demands, and the focus onwhat adds true value to your organisation.2013 Global IT Leadership Report: Cloud Computing for Public Sector and Government 7