CLOUD COMPUTING SUMMIT 2011 WELCOME & INTRODUCTIONPHIL COTTERILL – HEAD OF PUBLIC SECTOR SALES, ONI
AGENDA15:55 – 16:00 - Welcome – Phil Cotterill – Head of Public Sector, ONI16:00 - 17:00 - John Suffolk - Ex CIO, UK Government17:00 - 17:20 - Andy Macleod - Strategy Manager, Cisco17:20 - 17:40 - Stace Hipperson - CTO, Real Status17:40 - 17:55 – Lewis Honour – Security Business Practice Manager, ONI17:55 – 18:00 – Close - Phil Cotterill – Head of Public Sector, ONI18:00 – 19:00 - Networking and Canapés
SHIFTING THE PARADIGM OF TECHNOLOGY JOHN SUFFOLK EX CIO AND CISO – UK GOVERNMENT
THE AGENDA, SORT OF…• The world is a changin‟ are we keeping up?• Typical spending on ICT in Governments and enterprises – there is another way• The new way is optimised data centres, efficient technology and cloud computing• Cloud computing, driving innovation and flexibility at a dramatically lower cost• The move does not need to be big bang• Summary followed by questions
LET US START WITH GUESSING THE NEXT TECHNOLOGY… Moore‟s law alive and kicking His paper from 1965.
PROCESSING POWER AND INTELLIGENCE USAGE INHEALTH…TUMOUR DEFINITION BY MOLECULAR ANALYSISWhen you think the cost of healthcare is predicted to rise by 50% by 2020 just tostandstill, using technology is crucial to the future of healthcareUK Government looking to save c£83bn by 2014/15... Yet will need to save anotherc£50bn by 2020 just to keep the NHS at the same level of 2011!Source: PwC Dec 2010 “Build and Beyond pp10”
OR THE VAST AMOUNT OF REAL-TIME DATA HARVESTING…WE FEEL FINE…HARVESTING BLOGS AND SOCIAL SITES FOR HOW WE FEEL…
PREDICTING SEISMIC EVENTS, VISUALISING DAMAGE,CHANGING BUILDING REGULATIONS TO SAVE LIVES…Source: Cray Computers
SO WHERE WOULD YOU PLOT YOUR KNOWLEDGE ONTODAY‟S TECHNOLOGY? BACTERIUM? MONKEY? HUMAN?
SO A QUESTION… So hands up if you’re keeping up?
THE CONSEQUENCES… The cumulative Rate of change Area of lost opportunity? Area of more opportunity? Area of increased risk? Area of less risk? But where is your organisation? Our ability to take on board changeSource: based onabsolutely no datawhatsoever Time
AND THE UNINTENDED CONSEQUENCES… Source: FM Global
AND IT WOULD BE REMISS OF ME NOT TO MENTION CYBERSECURITY AND INFORMATION ASSURANCE…IT IS NOTPOSSIBLE TO DO ALL DEFENCE ON YOUR OWN
THE OLD PARADIGM IS DEAD, LONG LIVE THE NEWPARADIGM, THE PIZZA PARADIGM OF ICT… Global supply chain Shrink wrapped Can be delivered options available to almost any door Available globally Open source and crowd sourceFast delivery components Instant gratification, Variable thickness or not! infrastructure Easy integration with other Totally options customisable Pay for use
SO IN SUMMARY… A = Technology advancement in all fields continues to accelerate beyond the comprehension of those outside that field B = As business people our ability to keep up with this change and the consequences of this change is not possible A – B = Trouble
OPTIONS FOR GOVERNMENTS AROUND THE WORLD… WHICHDO YOU THINK IS THE MOST COMMONLY IMPLEMENTED?Is it easier for Governments to increase tax and reduce benefitsOr• Transform public services?• Outsource ?• Rationalise departments?• Implement Shared Services?• Move towards a Common Infrastructure?• Common ICT, applications, Cloud?• Change procurement?
So a little about public sectors general use of ICT spend… opportunities to radically change are huge if there is strong leadership
ICT across the Public Sector has key challenges that have arisen partly through the silo‟d and individual development of ICT – departments and agencies can, and do, make their own decisions… A world phenomenon
Public Sector spending on ICT is approximately 3-5% of total expenditure each yearICT costs and legacy systems and supports a sophisticated and substantial ICT base Most areas of the Public Sector have similar ICT requirements, yet each provides its Duplication own solution often duplicating what already exists Suppliers to Public Sector organisations are able to lock themselves into long Supplier lock-in contracts and render themselves indispensible as they “own” the ICT stack… especially in an outsourced world Procurement activities are time consuming, costly and result in further lock-in of Long timescales suppliers. It is so painful we make the contract long so we don’t have to repeat the process or we stick with our old supplier There are multiple large scale projects on-going across the Public Sector, but little Numerous, large projects ability to influence the upfront policy or design, development or ICT approach leading to overlap, inconsistency, duplication SME’s cannot afford to bid, large suppliers look to pass risk onto SME’s that they Lack of SME support cannot sustain
BASED ON GARTNER MODELLING TYPICAL SPEND ON ICT LOOKSLIKE THIS… THIS MODEL IS TYPICAL FOR CORPORATE AS WELL 53% of a typical budget is on infrastructure Overheads increasing with legacy complexity ?Source Gartner analysis January 2010
However much of what we do is similar/identical. Typically the bottom of the ICT stack, the “utility” end is where substantial opportunity exists for standardisation, simplification and common use
Common SharedThe Technology Stack Infrastructure Reduced Costs Capability Specific to that Reduced costs Specific ICT to that organisation through department only Use and Re-Use Shared competition across components Localised applications departments Open source/ standards/ innovation HR, Finance, ICT, Procurement etc. Simplification, Middleware, Databases standardisation, etc. Common shared Infrastructure Data Centres Voice and Data Simplification, Reduced costs Telecommunications standardisation, through Common open mandation consolidation Desktop and Peripherals Standards and simplification, Architecture mandation
HOW MANY DATA CENTRES DOES IT TAKE TO RUN THE PUBLIC SERVICES OF THE U.K.? BY THE WAY THIS IS TRUE IN MOST COUNTRIES… AND INDIVIDUAL STATES* Tier Uptime % Hours Cost Index Central Wider Public Down per Government Sector 5 Years has Has (tier 2+) Server 99.67 144.54 1 8000+ Police 88 room/ Local Tier I Government II 99.75 109.5 1.49-1.65 400+ III 99.98 8.76 1.97 1 Australian 220+ IV 99.99 4.38 3.11 state has List-X 99.99 4.38 4.00-6+ 130 A Tier IV Data Centre costs approximately £750 and £2,000 per square foot to build. A List-X facility is a specially protected and secured UK Government data centre (although maybe run/owned by a third-party) . The security addresses people, process, physical and technology. Issues. * Tier, uptime, cost index provided by the Uptime Institute. List-X cost index is an estimate
AND HERE IS THE HARSH REALITY OF OLD WORLD VERSUSNEW WORLD… CISCO, VMWARE AND EMC
ONI’S DATA CENTRE IS A PRIME EXAMPLE OF THISCHANGE… • Data guaranteed to stay within UK shores • Very green, using the latest technology for cooling, re using the heat generated for hot water and heating the building • Applying for List X approval • All engineers are security cleared
And now to Cloud computing and removing the lock-out and lock-in problem, innovating, moving at speed and at a price you can afford
CLOUD COMPUTING, UBIQUITOUS HIGH SPEEDCONVERGED NETWORKS, A DEVICE FOR EVERYTHINGAND EVERYTHING A DEVICE…
AND THERE ARE MANY DIFFERENT MODELS TO SUIT YOURMATURITY, REQUIREMENTS AND BANK BALANCE… ONESIZE DOES NOT NEED TO FIT ALL
THE SYSTEMS INTEGRATOR LOCK-IN AND THE SME LOCK-OUT.THIS IS NOT A CRITICISM OF SUPPLIERS BUT A STATEMENT OF FACTON HOW ORGANISATIONS SOMETIMES “DRIFT” INTO A CERTAINMODEL WITH PROFOUND CONSEQUENCES… Today Pareto works your top 20% suppliers get 80% of your business Application It can take 77 weeks to bid for a Government contract – SME’s can’t afford to bid, or have the resources to tie up for so long Each layer is Suppliers claim framework bids can cost up to £500k, full bids up intricately to £10m and about 5% of full project costs is for the linked and procurement dependant Infrastructure on the next Government procurement approaches try and pass much of the risk to the supplier’s balance sheet. SME’s cant take that risk The In the EU procurement rules say we cannot specify an ICT Systems product or brand. The SI’s select the products, the brands, the Integrator architecture selects all and locks Frequently in outsourced contracts the SI design, develop, run IT Stack us in and maintain the whole ICT stack. You want to change… you pay Cloud + “app” store can break this lock-in
IT GETS COMPLICATED…A SUPERMARKET ANALOGY They heavily They decide how They own the They decide what influence product much they tell store they want to sell input price you They set the output price They decide on store setup The buyer can goIf you want to buy to many stores at from them you no cost use their checkout The buyer can In store the buy the same Suppliers to them product provider are subservient product from are many sellers disintermediated
AND THE SYSTEMS INTEGRATORS WORK IN A SIMILAR WAY They heavily They decide what They decide how They frequently influence product they want to sell much they tell own the store input price (the procurement you (the data centre) (SME‟s/ products) process) (the bid, billing) They set the output price They decide on (cheapest on bid, store setup not cheapest)(technology/stack) The buyer can‟t go to many storesIf you want to buy (contract, Costfrom them you use procurement) their checkout(they control subs) The buyer can In store the buy the same Suppliers to them product providers product from are subservient are many sellers disintermediated (in theory)
CLOUD’S WILL WORK WITH EXISTING DEPARTMENT ICT AND OTHERCLOUDS… THEY WORK AT DIFFERENT SECURITY LEVELS AND SUPPORTOPEN AND PROPRIETARY TECHNOLOGY. ORGANISATIONS SHOULDFOCUS SOLELY ON THINGS UNIQUE TO THEM Amazon Justice DWP “Unclassified/ Restricted” Defence/ Government Cloud Google Shared common HMRC “Unclassified” infrastructure for Common systems/ Utility/ shared services computing Salesforce Microsoft .com “unclassified/ Restricted” Defence
CLOUD, ISN‟T ONE THING: IT HAS FIVE “WORLDS”: HOSTING, TESTING,SHARING, WEB, SME. DEPARTMENTS WANT AND NEED DIFFERENT THINGSSO A CLOUD NEEDS TO OFFER THEM FLEXIBILITY TO MAKETHE OFFER COMPELLING… “Testing world” Portal I don’t want to buy computers to test new systems, can I rent them “Hosting world” “Shared world” from you? My computer systems are ERP – HR/ Finance fine, I just want to close my data centres and use yours. Shared App App ID&V What can be shared, should Give me economies of scale, be shared. Common shared App “SME security and growth, reduce systems for all to use. my capex need world” Can I use your Cloud to offer services to my non “Web world” Government customers. Online/web UK tax growth, services to innovation employees/ citizens and business
AND DRAWN ANOTHER WAY IT LOOKS LIKE THIS… EACH WORLD ISPROVIDED WITH THE BASICS OF STORAGE, PROCESSING ETC. BUT HAVEFREEDOM TO DEVELOP AND RUN SOFTWARE USING ANY TECHNOLOGYSTACK ON A COMMON INFRASTRUCTURE… Hosting Testing Shared Web SME Data Storage Processing Capacity Security, Resilience, Support Software design, development , testing and integration tools/ components A choice of “technology stack” vendors
SO WHERE DOES AN APPLICATION STORE FIT IN? IT‟S A BAD NAME,THINK OF AN EBAY FOR GOVERNMENT OR DEFENCE OR ???, BUT WITHA TWIST… Applications Store It could include: • Classifieds, Buy It Now, Auctions “eBay” Suppliers/ SME‟s can have their own store front • Anyone can be in the store • Marketing is cheap • SME‟s don‟t need capital to “prove” their software… they can test it on the Management Tools Configuration Deployment Service Cloud • No SI lock-in, no technology stack lock-inHosting Testing Shared Web SME Any “application” or service from any Data Storage supplier(s) can be deployed on a common Processing Capacity infrastructure using any back end technology stack (the lines) Security, Resilience, Support Software design, development , testing and integration tools/ components The infrastructure provider handles security and scalability. Think of it as the electricity A choice of “technology stack” vendors grid. They dont decide what you do with it It is pay for use, there is no lock-in to long term software licence contracts
SO WHAT DOES THIS MEAN FOR A DEPARTMENTSTECHNOLOGY, SYSTEMS, DATA CENTRES AND PEOPLE?ADD VALUE AND FOCUS ON ONLY WHERE YOU CAN… High Cloud should be considered Application/ Service run on on a case by case basis local departmental infrastructure, Controlled by department, Uniqueness of technology solution Must conform to ICT strategy/ Standards Application/ service run on Cloud if application non Mandatory use of open core Standards Application/ service run on Application/ service run on Cloud Cloud if application non core Departments should consolidate all their ICT into a Cloud environment Low Low Size / Scale of Department and capability High
SO IN SUMMARY• Everything as a service will happen. It has profound consequences for most roles, most companies, most markets.• Technology has changed dramatically, increasing opportunity and risk. Commodity items should be commodity, common/shared items should be common and shared• Cloud computing, however you define it, enables a significant shift in how technology is designed and deployed. It is a paradigm shift – but takes leadership• Don‟t get lost in the circular , my technology is better than yours debate, all technology is changing so be flexible and pragmatic – ONI set a good example AND FINALLY• Pay-for-use, no big up front capital and licence payments means you can experiment - start moving some of the non mission critical systems into another world. Try building new applications in the new world… learn, learn, learn
G-CLOUD 3rd TIME LUCKY ANDY MACLEODSTRATEGY & POLICY, PUBLIC SECTOR – CISCO
AGENDA• Setting the scene – John Suffolk – comments• A decade of change and innovation – what next?• Cloud Computing – a stimulus for economic growth• CloudWatch – results from our survey• Public Sector computing evolution scenarios• Some good first steps – Service maturity analysis• Cisco‟s role in this transformation• Q&A
CHANGING THE WAY WE... DO STUFF( BTW ITS A CLOUD DELIVERY) iViva FOAF Hobby Reputation What interests me What‘s said about me
THE IMPACT THE INTERNET HAS ON OUR LIFE • “I cannot imagine a life without...” • A mobile phone: 97% • The Internet: 84% • A car: 64% • My current partner: 43% % of 14 – 29 year oldsSource: BITKOM – Bundesverband Informationswirtschaft,Telekommunikation und neue Medien e.V., 2010
AND EVERY MINUTE 20 HOURS OF VIDEO UPLOADED TO YOUTUBE
ARE BUSINESSES THINKING ABOUT CLOUD60%IT decision makers who saw public cloud as an enabler, versus 40% who viewed itas “immature”.– Yankee Group, August 201070%IT decision makers using or planning to use enterprise-class cloud technology withintwo years.– Savvis, July 2010100%Expected growth of server hardware market between 2010 and 2014 due solely toPublic and private cloud computing.– IDC, August 2010It is adopting cloud now!
CLOUD INVESTMENT PLANS BY APPLICATION: GOVERNMENT Already invested Plans to invest in next 12 months Would potentially invest Will not investUnified communications 4% 14% 40% 42% Web conferencing 6% 18% 50% 26% Video conferencing 6% 24% 42% 28% Voice services / VoiP 4% 10% 42% 44% Back up 8% 20% 32% 40% Supply chain 6% 10% 26% 58% Business intelligence 4% 8% 26% 62% ERP 4% 12% 22% 62% Payroll / finance 10% 10% 20% 60% HR 10% 8% 30% 52% CRM 4% 18% 20% 58% Desktop applications 4% 20% 40% 36% Email hosting 6% 16% 34% 44% 0% 20% 40% 60% 80% 100% Q4. For each of the following areas, please tell me if you have already invested, have plans to invest, would potentially invest or will not invest?
BENEFITS OF CLOUD COMPUTING – BY SECTOR Government Healthcare Finance Retail Service providersReduced costs 62% 52% 56% 58% 58%Better control of costs 60% 42% 72% 42% 46%Increased responsiveness / scalability 48% 46% 42% 46% 46%Flexibility to change suppliers 46% 40% 42% 54% 44%Easier maintenance 62% 66% 72% 66% 68%Improved service to our customers 56% 32% 44% 58% 50%Automatic updates 76% 48% 72% 60% 62%Rapid deployment / speed to market 62% 60% 62% 56% 66%Improved security 22% 30% 26% 30% 28%Ease of integration 44% 42% 46% 42% 48%Improved collaboration / communication 76% 46% 56% 72% 52%Other 2% 6% 0% 0% 4%Q7. Which of the following do you consider to be the key benefits of cloud computing to an organisation in your industry sector over and above keepingIT in-house or using managed services?
KEY BARRIERS TO WIDER ADOPTION OF CLOUD BY SECTOR Government Healthcare Finance Retail Service providersSecurity and privacy concerns 86% 82% 78% 72% 60%Difficulties integrating with in-house IT 66% 74% 64% 50% 58%Difficulties integrating with other hosted 64% 70% 62% 48% 56%servicesConcerns about supplier lock-in 56% 52% 60% 56% 56%Concerns about location of data 70% 62% 70% 52% 68%Lack of a heterogeneous management 30% 36% 30% 32% 20%platformService model / SLA limitations 46% 48% 52% 44% 60%Technology / service immaturity 58% 42% 52% 52% 58%Lack of industry standards 56% 50% 52% 38% 44%Service quality / performance concerns 52% 48% 58% 52% 50%Doubts about investment / cost savings / ROI 50% 58% 44% 66% 38%Cultural / organisational resistance 54% 56% 50% 54% 62%Concerns about cost / charging models 50% 50% 50% 62% 36%Compliance concerns 66% 54% 68% 56% 46%Other 2% 4% 0% 0% 0% Q8. Which of the following do you consider to be key barriers to wider adoption of cloud in your industry sector?
USE / CONSIDERATION OF DIFFERENT CLOUD DEPLOYMENT MODELS: GOVERNMENT Currently use Would consider using Would not consider using Dont know Private cloud 28% 40% 20% 12% Hybrid cloud 10% 34% 34% 22% Public cloud 16% 22% 42% 20%Community cloud 8% 22% 54% 16% 0% 20% 40% 60% 80% 100% Q11. Which of the following deployment models for cloud do you currently use or would you consider using?
CLOUD DATA CENTRE SPEND WILL BE $30B BY 2013 Cloud – DC Spend (IT Infra, Mgmt SW, DC services) (estimate - $B) 35 30.2 30 25 21.8 Internal 20 Cloud 14.5 15 9.0 10 Public 5.4 Cloud 5 0 2009 2010 2011 2012 2013 Source: Cisco IBSG; Note: Migration data based on Enterprise CIO/CTO interviews (primary research)
CLOUD AS A STIMULUS FOR ECONOMIC GROWTH• Europe ( big 5) • Ireland • E9.5bn by 2014• E177bn by 2015 • 8600 Jobs (+2000)• 2.3 million jobs • 20% savings on IT costsCEBR report. Dec 2010 • Goodbody report .Jan 2011
CORPORATE VIEW - EVOLUTION TO CLOUD LARGE ENTERPRISE - Virtualized Data Center Converged IT Infrastructure Compute Network Storage Converged IT Infrastructure Private Public Cloud Cloud Control combined with: On-demand Compute • Rapid elasticity access to Compute additional IT • Resource pooling resources • On-demand self-service and functionality • Chargeability & Metering Network Storage Network Storage • Agility / Speed of response Converged IT Infrastructure Converged IT Infrastructure
G-CLOUD 2A MATURITY MODEL
NIST CLOUD MODEL - PUBLIC SECTOR USE CASE
SERVICE MATURITY ANALYSIS – A GOOD FIRST STEP• IT service audit• Rationalise• Consolidate• Standardise• Virtualise• Automate
LEGACY AS–IS CHARACTERISTICS
DISCRETE CLOUD CHARACTERISTICS
DYNAMIC CLOUD CHARACTERISTICS
OPPORTUNITIES FOR BOTH PUBLIC SECTOR AND INDUSTRY• Basic requirements – Cost, Agility and Innovation• These can be addressed with Hybrid models• You can build in community centric differentiators and services to support the migration• Public Sector needs strong security and governance• It simplifies cost benefit analysis and will shorten the sales cycle and reduces cost of saleCultural and political barriers are being challenged from the top
CATALYSING AND POWERING THE MARKET TRANSFORMATION Provider Partner Success in Cloud Services Architecture Operations Commercials Go To Market • Standardise • B-O-T • Access to funds • Simplify/Automate • Accountability • Pay-as-you-grow •Co marketing • „More with less‟ • Access to key skills • Outcome Based •Grow services Costs, Agility, Scale Syndicate Risk Improve Cashflows Accelerate Success
ENABLING DECISIONS AT THE SPEED OF SIGHT STACE HIPPERSON CTO – REAL STATUS
HYPERGLANCEYour whole IT estate Dynamic User-defined in one view 3d layout filtered views
HYPERGLANCEYour whole IT estate Dynamic User-defined in one view 3d layout filtered views
HYPERGLANCEYour whole IT estate Dynamic User-defined in one view 3d layout filtered views
Exclusive focus Highly scalable Auto layout 3D topology Filtering
SEE, UNDERSTAND, ACT
CLOUD THE HIDDEN DANGERS TO DATA PROTECTION LEWIS HONOUR SECURITY BUSINESS PRACTICE MANAGER, ONI
CLOUD – THE HIDDEN DANGERS TO DATA PROTECTIONLewis Honour• Security Business Practice Manager• CISSP• Joined CLAS in 2001
CLOUD – THE HIDDEN DANGERS TO DATA PROTECTION Question 1:• How well protected is your corporate or private data when it is moved to the cloud? Answer 1:• It depends upon who is interested in your data or even just the meta data.• Foreign governments directly or Foreign governments indirectly.
CLOUD – THE HIDDEN DANGERS TO DATA PROTECTION Question 2:• Is any of your private data housed, stored or processed by a company, which is a U.S. based company or is wholly owned by a U.S. parent company?• (Amazon, Microsoft 365, Rack Space, HP, AT&T, IBM etc) Why?
PATRIOT ACT CAN ACCESS EU-BASED CLOUD DATA• Any data which is housed, stored or processed by a company, which is a U.S. based company or is wholly owned by a U.S. parent company, is vulnerable to interception and inspection by U.S. Authorities.
PATRIOT ACT CAN ACCESS EU-BASED CLOUD DATA
MICROSOFT AND GOOGLE JOIN THE PRIVACY DEBACLE
WRAP-UP & CLOSE• Insightful and thought provoking session• There is no “one size fits all”• Many considerations and ways forward• Partnership is key • Public Sector focus • Track record • Expertise & Experience • Design, Implement & Support • UK based Tier 3+ Data Centre• ONI Workshops & road-mapping sessions• Thank you and please join us for Drinks and Canapés• Feedback forms