NACRC 2013 | Cloud Technology: Do you Compute

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The cloud has changed the face of technology as we know it. It impacts our daily activities, in and out of the workplace. So what exactly is cloud technology, and how does it affect you? Pete Eichorn, …

The cloud has changed the face of technology as we know it. It impacts our daily activities, in and out of the workplace. So what exactly is cloud technology, and how does it affect you? Pete Eichorn, Director of Technology at Texas.gov, will take this technical concept, break it down into plain language, and equip you with the knowledge you need to embrace and move forward with this technology. After this interactive session, here's what you'll know about the cloud:
* What it is
* How it has changed the technology landscape
* Advantages, disadvantages, and risks
* Models: public, private, and hybrids
* Protecting the integrity of your data
* Practical applications: Texas.gov case studies

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  • Texas.gov is the official website for the State of Texas. We help Texans take care of their government business online, and we help government agencies put their services online.Texas.gov is a collaborative, public-private partnership between the State of Texas and Texas NICUSA, LLC. Austin-based Texas NICUSA, LLC is a subsidiary of NIC, the nation's leading provider of official government portals, online services, and secure payment processing solutions.Texas.gov payment processing solutions help you automate your office and improve customer service. Our secure, PCI-compliant payment products let you process online and over-the-counter payments for services such as:License and registrations,property taxes and records,permits, traffic citations,utility bills,vital records, and more.Texas.gov currently offers more than 1,000 online services. Since inception in 2000, the website has*: processed more than 180 million transactions, collected more than $27 billion in state and local revenue, and contributed more than $141 million in new revenue to the State's General Revenue Fund. *Through December 31, 2012
  • Cloud TechnologyWhat – is it?How – is it changing technology landscape, business and government?Where – is it occurring?Why – do we care?
  • The definition of Cloud Computing: The set of disciplines, technologies, and business models used to render IT capabilities as an on-demand, scalable, elastic service. >Joe Martin, GartnerThere are definitions galore surrounding cloud computing, but you should be clear when we’re done.
  • There is so much terminology in IT. But, what does it all really mean?What is Wi-fi? In 2000, The Wi-Fi Alliance had hired Interbrand to determine a name that was "a little catchier than 'IEEE 802.11b Direct Sequence'".  Per Wikipedia, they came up with “wi-fi”.Broadband – “Internet access that is always on and faster than the traditional dial-up access.” - Wikipedia
  • The know-it-all character from Cheers, Cliff Clavin might give us a painfully detailed explanation of what the cloud is. But, at a basic level, why the name “cloud”? “Networking people” – shorthand for networks, by the way – would draw diagrams and insert a cloud image when referring to the internet storage piece. This concept caught on and people started using the term “cloud”.
  • The Could is changing the technology landscape, in business and government. The journey starts here – with a few excursions – like a family trip in the car.
  • We’ll start with consumer technology to highlight the state-of-the-art products and services utilizing the Cloud, and then we’ll move to business/government delivery and use of technology.Cloud technology allows these services to be free. They can scale and they are elastic. Note that all of these services/products were all created in last 10 years.
  • Nothing against Facebook, but with over 1 Billion users, it’s useful to illustrate.We are the product – how amazing is that?
  • Let’s talk about the apps on your smartphones. How have expectations changed?Most of us are okay with a $0.99 charge, but we feel bad for $5.99 app. How much have you paid for productivity software and games? I saw this week on Wired.com that people expect free – 90% of apps in Apple’s app store are free – up from 84% since 2010. There has been a huge change – we now have hundreds of thousands of apps available for our devices. Sounds like Star Trek kinda stuff!
  • So, why do I care about the Cloud, and why should you? If affects all business people… and technologists, too. When delivering a new service, we all have different objectives and many ways to fulfill them. If they involve technology, everyone is involved, not just the techies.
  • We’re going on another excursion on our journey – Greece.Compare this to a new service: the main objectives are known. But there are many ways to accomplish your objectives and there will be lots of choices by everyone involved along the journey.
  • One way to experience Greece.
  • Another way to experience Greece. What’sdifferent? What’s the same? Overall, collective experiences can be different – experiences, costs, and long-term implications. For example, what if I purchased the boat vs. rented it?These are the same implications from technology folks working to deliver your vision.
  • These Cloud terms will help you understand the concepts I’ll be discussing in this presentation.
  • There are 3 cloud computing types: Private, Public, and Hybrid.
  • Are you familiar with this approach when tacking an IT project? We call this “traditional IT”. We still do lots of this today.
  • This is what the Cloud looks like behind the scenes – shipping containers full of cloud technologies: servers, network, and power delivery. It’s all in a box.This visual shows the scale of a public cloud. This setup was state-of-the-art a few years ago, but technology is moving beyond this. today
  • With the public cloud, the main difference is that your capital expenditure becomes an operating expense.
  • In a private cloud, cloud computing technologies run behind a company’s firewall and managed by the IT department, a traditional outsourcing company, or most recently by a cloud company (Amazon and CIA). This approach may be slower, but it could be more secure and more customized for your business.
  • Here’s an example of how Texas.gov utilizes a private cloud. This graphic demonstrates on of our services, The City of Houston Ticket Pay system.The Common Checkout Page enables partners to request payment from their customers without building, hosting, and maintaining a payment page within their environment. This service provides several advantages including ease of integration to applications, PCI compliance achievement, and a common look and feel for payment activities regardless of the application origin.For real-time scenarios, the partner’s application submits transactions to the Common Checkout Page which interacts with the Texas.gov payment engine. The payment engine passes the transaction to the credit card processor, and ultimately to the customer’s bank. The customer’s bank returns a response to the processor that is sent to the payment engine. The payment engien returns the transaction to the Common Checkout Page and finally to the application, thus providing a complete cycle and response (accept or decline) in real-time.
  • As the name illustrates, a Hybrid cloud is a combination of traditional IT, public cloud, and private cloud.
  • Here’s another Texas.gov example. We host an online commissary application for the Texas Department of Criminal Justice. It utilizes a combination of our private cloud and a public cloud hosted by Microsoft. The Common Checkout Page I referenced earlier enables partners to request payment from their customers without building, hosting, and maintaining a payment page within their environment. This service provides several advantages including ease of integration to applications, PCI compliance achievement, and a common look and feel for payment activities regardless of the application origin.For real-time scenarios, the partner’s application submits transactions to the Common Checkout Page which interacts with the Texas.gov payment engine. The payment engine passes the transaction to the credit card processor, and ultimately to the customer’s bank. The customer’s bank returns a response to the processor that is sent to the payment engine. The payment engien returns the transaction to the Common Checkout Page and finally to the application, thus providing a complete cycle and response (accept or decline) in real-time.
  • Here’s what a technical architect should consider in design. The terms IaaS, PaaS, and SaaS were created to simplify definitions of who does what.You care for business continuity, SLAs, business risk, and day-to-day operations. You can outsource the technology, but not the risk and responsibility.
  • All of you have probably considered the above… “what happens if?”Cloud providers take different approaches, and some of this you don’t have direct control.
  • Stay focused on your business outcomes and vision . Remember that technology can enable it. Understand your needs first, then solutions will come.
  • FedRAMP and Amazon AWS cloud services were recently certified.
  • Case study
  • The Cloud is a game changing model.
  • Texas.gov/Solutions: Check out what our thought leaders have to say about a variety of topics in the Government IT industry.

Transcript

  • 1. Cloud Technology: Do you Compute? Presented by Pete Eichorn, Director of Technology, Texas.gov
  • 2. Award-winning, official website for Texas Self-funded, public/ private partnership Subsidiary of NIC, the nation's leader in eGovernment Online & over-the-counter payment solutions Mobile-optimized online applications
  • 3. We provide 1,000+ online and over-the-counter services for 230+ government partners Since inception in 2000, Texas.gov has: Securely processed 189+ million financial transactions Collected $27+ billion on behalf of state and local government partners Contributed $141+ million to the State’s general revenue fund
  • 4. AGENDA What? Where? Why? And what does cloud mean to me? How?
  • 5. Cloud Computing The set of disciplines, technologies, and business models used to render IT capabilities as an on-demand, scalable, elastic service >> Joe Martin, Gartner
  • 6. The cloud has changed the technology landscape.
  • 7. Why are these free?
  • 8. freemium a business model by which a product or service is provided free of charge, but a premium is charged for advanced features, functionality, or virtual goods.
  • 9. Why cloud is important it affects how your service is built, how much it costs, how it’s supported, the capabilities you get, and risks you’ll encounter
  • 10. {define} storage: disk space compute: processing power network: connect to and from cloud
  • 11. There are different models of cloud technology.
  • 12. Cloud Computing Types Public The CloudPrivate Hybrid On Premise / Internal Off Premise / 3rd Party
  • 13. {define} traditional IT then… maintenance upgrades patching new features growth designpurchase
  • 14. The Public Cloud
  • 15. traditional order hardware time to delivery plan space installation capital expenditure public cloud admin login elastic virtual design pay for what you use instant increased capacity operating expense
  • 16. private cloud
  • 17. example Texas.gov / NIC premises Credit Card Processor (Visa, Mastercard, AmEx, etc) send payment info approve / decline select “Pay” checkout Client website Texas.gov Common Checkout (SaaS) Private cloud Assumes responsibility for PCI compliance, USAS integration, redundancy, software updates, and more
  • 18. Hybrid Cloud
  • 19. combo of traditional, public, and private privatetraditional public
  • 20. example Application & Data TDCJ Online Commissary Microsoft Azure Platform (PaaS) Texas.gov manages Microsoft manages
  • 21. service models: who does what? Traditional IT Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a Service (SaaS) Applications Data OS Virtualization Servers Storage Networking CustomerManages Applications Data OS CustomerManages Service Provider Manages Applications Data CustomerManages Service Provider Manages Service Provider Manages
  • 22. There are advantages & disadvantages to the cloud.
  • 23. Advantages operating vs. capital expense, pay as you go, pay for what you use configure and purchase online, instant availability scale up or down with ease
  • 24. Disadvantages “Where is my data? Who’s controlling it?” Cloud Risks Control Center
  • 25. Risks: what happens if? Contract expectations SLAs, terms, audit, security, exit strategy, virtualization Operations Backups/Recovery, technical operations
  • 26. Weigh your options private publichybrid benefits … promises … risks … challenges
  • 27. How safe is your data in the cloud?
  • 28. ASK: How important/sensitive is my data? What are you doing with my data? How are your operations people trained? How are you audited? How is your physical access controlled? Your provider and your data
  • 29. LOOK FOR: Industry certifications: SSAE 16 Regulatory requirements: HIPAA BAA FedRAMP certifications Exit strategy Your provider and your data
  • 30. NPR.org: U.S. Army To Scrap $7 Billion In Equipment In Afghanistan - Ginny Fahs
  • 31. Why cloud is important it affects how your service is built, how much it costs, how it’s supported, the capabilities you get, and risks you’ll encounter
  • 32. Learn more TEXAS.GOV/SOLUTIONS PCI Compliance Mobile Strategy Web Analytics Social Media Strategies Agile Project Management Security
  • 33. Q & A Contact: peichorn@egov.com | @pkeich