The document provides an extensive overview of cloud computing, tracing its history from the 1960s and discussing its evolution through the decades, particularly focusing on its applications and benefits for organizations like the Borough of West Chester. It covers various cloud service models, deployment types, and essential factors for selecting a cloud provider, including cost, performance, and security considerations. The case study of West Chester highlights the need for evaluating existing infrastructure and identifying which services could be migrated to the cloud for improved efficiency and cost savings.

1. Cloud Computing
“A History and Case Study of possible cloud
services for the Borough of West Chester”
William Mann, Borough of West Chester
Chief Information Officer
CGCIO™, Rutgers University
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2. Part I
A short history of
“Cloud Computing”
PC Client Server Web Services
Cloud Services
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3. Introduction
Cloud Computing is a new and exciting trend which many of us, even in the information
technology field are, let’s say, a “little cloudy about”.
What are the advantages of cloud computing as opposed to
maintaining an infrastructure?
Are there different levels or types of cloud computing?
Who exactly are these cloud computing providers?
Are there security ramifications when utilizing cloud
computing?
How much control do you have over your data when you
migrate to the cloud?
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4. Introduction
As a result of the current world economic situation any solutions that offer substantial
cost savings will of course attract consideration from financial officers.
Chief Information Officers and other technology professionals both in the private and
public sector must be prepared to answer these questions.
Technology professionals must be prepared to move their organization in the right
technological direction, be that to the cloud or continuing to maintain an independent
infrastructure or in many cases a hybrid solution.
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5. Questions About The Cloud
• What is cloud computing anyway?
• What exactly is the history of cloud computing?
• What is the status of cloud computing today?
• Who are the cloud computing service providers?
• What is the cost and cost savings in respect to cloud computing?
• Security and cloud computing.
• Who is using cloud computing today?
• Is there a long term track record?
And finally….
Is cloud computing a realistic option for local government using the
Borough of West Chester as a case study?
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6. Cloud Computing – Not Such a New Idea
The idea of “cloud computing” dates as far back as the 1960’s when John McCarthy
envisioned a time when “computation may someday be organized as a public utility”.
This vision of McCarthy’s is somewhat profound considering where computing actually
was in the 1960s. The 1960s represent what many refer to as the “second generation”
of computers. Computers of the 1960s were of solid-state design and relied on
transistors.
1960 brought the first small computer with its own keyboard and monitor. The term
“computer” had not even been used at this point. The creator of this first small
computer, Digital Equipment Corporation, called it a “Programmed Data Processor”. It
sold for between $125,000 and $150,000. It is in this technologic environment that John
McCarthy, an American Computer Scientist, spoke of organized computation similar to a
public utility being in our future.
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7. Cloud Computing – Not Such a New Idea
Fast forward to the 1990s when phone companies began for the first time offering
virtual private network (VPN) services in addition to dedicated point-to-point data
circuits which had been the service standard. “Cloud” probably originates with this new
“telephony” virtual network which offered a comparable quality of service as the
dedicated point-to-point circuits while being more cost effective.
The cloud symbol was used to denote to demarcation points between the responsibility
areas of the customer and provider.
Ramnath Chellappa, an Associate Professor at the Emery Goizueta Business School
reportedly is the first to have used the term “cloud computing” during a 1997 lecture.
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8. Cloud Computing – Not Such a New Idea
Shortly after the dot-com bubble (1995-2000) the online shopping company, Amazon,
played a major role in the development of cloud computing by redesigning their data
centers. Amazon was trying to find a way to use more of their computer network
capacity which was about 90% unused and eventually initiated a new product, offering
cloud computing for external customers and launched Amazon Web Services (AWS) in
2006.
Google, IBM and a number of universities followed Amazon’s lead and in 2007 started a
large and coordinated cloud computing research project. By this point cloud computing
was marching forward with some organizations switching away from company-owned
hardware and software assets.
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9. The Hidden World of Cloud Computing
Here are some examples of currently accepted “cloud computing” services
which many of us have been utilizing for at least the past 5 years.
Remote backup services: Many of us remotely back up our data. This service has become
much more cost effective and applicable because of affordably increased bandwidth capacity.
The continued trend in high bandwidth availability has spawned many credible online backup
services such as Corbonite and Mozy.
Email Services: Email services such as Google (gmail), Microsoft (Hotmail) and America
Online provide email services in which account holders connect through their browser. These
email providers store the account holder’s email at their data centers.
Invoicing Services: Recently companies such as FreshBooks have begun offering invoicing
services to companies in which all invoicing needs are handled through the customer’s
browser with the data being stored at a remote data center. This allows companies to offer
professional invoicing while maintaining the smallest possible computing infrastructure in
order to keep cost down.
If “cloud computing” is broadly defined as having application and data stored
and accessible remotely then these services are evidence that “cloud computing”
has indeed been with us much longer then most of us would initially believe.
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10. Defining Cloud Computing
For my purposes I define cloud computing as “anything you use outside of your
system’s firewall”. However even this definition alone, simple as it may be does not
accurately describe the evolving concept of cloud computing. Once you start to
really research and think about it you quickly realize that cloud computing also
almost always includes a pay-per-use or subscription service.
Quite simply for my purposes I believe cloud computing can be accurately described
as:
1. Anything outside of your system’s firewall and
2. Includes a pay-per-use or subscription service that extends your agencies
information technology through the internet as the primary access point.
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11. Defining Cloud Computing
One thing is for certain.
Cloud computing today remains true to John McCarthy’s 1960s vision of
utility computing where companies purchase their computing needs in
the same manner as conventional utility services such as electricity,
water, phone and television.
This basically replaces the existing information technology model of
major capital investment with a pay as you go philosophy in its place.
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12. 3 Approaches to Cloud Computing
The most popular approach to cloud computing:
Software as a Service (SaaS)
Software as a service (SaaS) has been gaining strength as the most successful
model in respect to cloud computing.
Specific applications for countless numbers of users are accessed through
their internet browsers.
For the customer there is no capital investment in servers and many times
only the internet browser is necessary to access their applications and data.
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13. 3 Approaches to Cloud Computing
2 more approaches to cloud computing:
Managed Service Providers (MSPs) or Platform as a Service is another
approach. MSPs offer various services interfacing with the information
technology departments of business rather than the individual end users.
Desktop management, application monitoring, anti-virus scanning and anti-
spam filtering are common offerings from MSPs. This, of course, usually
requires more management from the end user as opposed to SaaS.
The Infrastructure as a Service (IaaS) model transfers even more control
and responsibility for security from the cloud provider to the client. In this
model the end user can often access the operating system that supports
the visual images, networking and storage.
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14. 5 Cloud Deployment Models
Public Cloud (or External Cloud)
Services are provided on an as-needed, pay-as-you-go basis over the internet by
using web applications and services from a remote third party provider.
Community Cloud
Community Clouds may involve several organizations with similar mission
statements who seek to share infrastructure cost and management. Security is
and control is enhanced because fewer users are accessing the information in
this manner as opposed to the public could. This is usually more expensive than
a public cloud; however the enhanced security and privacy may be attractive
and warrant the additional cost.
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15. 5 Cloud Deployment Models
Hybrid Cloud
Hybrid Clouds often use a combination of public and private storage clouds. Archiving
and backup functions allowing local data to be replicated to a public cloud is a good
example of this type of deployment.
Organizations may elect to use physical hardware and virtualized cloud server
instances together to provide a single common source.
Combined Cloud
Combined Clouds consist of multiple internal and external providers. By integrating
multiple cloud services users are often able to ease their way into cloud computing.
Private Cloud (or Internal Cloud)
Private Clouds strive to emulate public clouds but on a local level. These services offer
products where host applications are available on virtual machines within a host’s
own environment. This type of “private cloud” offers the benefit of utility computing
and shared infrastructure cost. There is however a much larger infrastructure cost
here then with the other cloud types which minimizes the benefits of cost saving and
information technology management.
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16. Evaluating Cloud Computing Service Providers?
Cost
Of course the most attractive part of moving away from an infrastructure situation
to cloud computing is saving money for the organization.
Performance
Determine where the cloud providers are geographically located and be aware that
application performance results can be impacted by this situation.
Data and Security
Although the potential cloud provider may host your data in a data center facility
that does not necessarily mean that the provider has made any special
arrangements to protect your data. Firewall services may still be required on your
end and encryption of data necessary. You should also be aware of where the data
is actually being stored, which in some cases may actually be required through state
or local regulations.
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17. Evaluating Cloud Computing Service Providers?
Service Level Agreements
Service level agreements (SLA) are crucial in predicting a cloud computer provider’s
confidence in respect to its service delivery platform. The closer to 100 percent
computing availability is obviously where you want this to be.
Support
This is one of the areas where cloud computing providers reportedly need to
improve. At this point, cloud providers are not known for offering strong support. This
is bound to change as cloud computing continues to mature. However for mission
critical agencies this could be a challenge. Determine the hours of support available,
turnaround time guarantees, and annual service contract cost projections in order to
make sure that service requirements are achieved.
Putting It All Together
A Request for Proposal is probably a good idea in respect to putting all of these
evaluation points together clearly identifying the specific needs of your organization.
By writing a clear and precise Request for Approval and distributing it to available
cloud providers a good picture should appear regarding your cloud computing
options.
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18. Identify What Has Cloud Potential
Finding success through “cloud computing” must include identifying from the outset
what, if anything cannot be accomplished effectively and efficiently in the cloud.
Once these technical issues are identified, the services that remain outside of the
cloud and inside the organization’s network infrastructure will of course impact the
projected technology savings.
Other considerations should also include the age and condition of the various
computing and networking parts in the existing infrastructure. It is this consideration
that can result in deployment into “cloud computing” occurring at multiple phases,
spanning several years.
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19. Cloud Providers Are Everywhere.
There are many other cloud service providers out there and these are simply a
sampling of the some of the most prominent providers today.
Google Apps
With the Google Apps Engine users can build, run and maintain their
applications on Google’s infrastructure with no servers to maintain.
Microsoft Online Services / Microsoft 365
All of the Microsoft Office applications available in the cloud.
Rackspace
Rackspace is currently the number 2 cloud provider only behind
Amazon.com.
IBM
Somewhat new to this list is IBM. Just launched is there Iaas
(Infrastructure as a Service) Cloud.
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20. Cloud Providers Are Everywhere.
Verizon Cloud Services
Verizon recently began providing cloud services offering an
enterprise-grade IT solution allowing the customer to purchase
services as needed and pay-as-you go allowing scaling up or down
as needed.
And of course… one of the first successful cloud providers
Amazon
The king of cloud is still Amazon Web Services (AWS). No other
company has come close to the cloud-based innovation AWS
provides.
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21. Part II
The Borough of West Chester:
A Case Study in Cloud Computing Possibilities
This presentation will not detail the actual “on the ground” installation, deployment,
migration and training of moving to the cloud. We can discuss West Chester’s
experience with the actual migration process at the conclusion.
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22. Reviewing The Need – Phase 1
Network Infrastructure
Every organization's network infrastructure is different, with some more
complex then others. These infrastructures mature and grow over time, as the
organization’s needs change and new technologies become available. This
situation is of course the same for the Borough of West Chester. As recently as
the early 1990s our local area network (LAN) network was almost non-existent.
What networking there was in existence, was contained to local workgroups in
specific departments.
Once I started managing information technology in the late 1990s I had one
primary goal. Combine these individual “workgroups” into one “domain”
which would centralize all server equipment, offer cross-department file
sharing, enhanced file and network security and eventually reduce cost &
enhance productivity by sharing servers and networking cost as opposed to
every department individually managing and spending resources on
technology.
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23. Reviewing The Need – Infrastructure
Network Infrastructure
The status of the Borough of West Chester’s network infrastructure at the time
of the “cloud” case study included the following:
• 3 File Servers (applications, payroll, mapping, archiving, user files, etc.)
• AV (anti-virus) Server
• Security Profile Server (Websense)
• Citrix Server (remote access)
• Exchange Server (email services)
• ALPR (automatic license plate reader) Server
• 2 Audio Recorder Servers (police – radio & telecommunications)
• 2 Video Records (building security & criminal officer interviews)
• I-COP Server (police vehicle recordings)
• Toshiba Server (phone system & unified messaging)
• Information Technology Work Orders Server (Track-It!)
That’s a total of 15 server based pieces of hardware.
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24. Reviewing The Need – Infrastructure
Network Infrastructure
The following department’s are served through this network infrastructure.
1. Borough Management
2. Finance
3. Building and Housing
4. Parks and Recreation
5. Parking Enforcement
6. Police Department
7. Police Communications (emergency dispatch center)
8. Public Works
9. Waste Water
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25. Reviewing The Need – IT Staffing
Information Technology Staffing
An honest look at staffing must be evaluated in order to determine if moving
any service to the cloud would be of benefit to your organization. Obviously
the more services in “the cloud” the less on premises IT staffing is required.
In the case of the Borough of West Chester, one individual acts in the
following roles.
• Chief Information Officer
• Chief Technology Officer
• Help Desk Technician &
• Chief Communication Officer*
* Manages all elements of the Police
Department’s Emergency Dispatch Services
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26. Reviewing The Need – IT Staffing
Information Technology Staffing
Because the Borough of West Chester is in a very unique position where all
elements of information technology are managed by one individual the overall
cost of providing this service is very small.
$180,317.14
Total Cost of Information Technology , 1%
Information Technology cost which includes
network hardware, service contracts, IT Budget
software and staffing has remained
consistently at about 1% of the overall 2011
budget. Budget
$18,059,057.00
Although this low cost may seem , 99%
unsustainable, given the current state of
the world economic situation, it would
be in the borough’s best interest to work
towards maintaining this low cost for as
long as possible. …could the answer be in the clouds?
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27. Reviewing The Need – Technology Services
After looking at your infrastructure and staffing situation the next evaluation
should involve “need”. What services that you are currently providing should be
considered for cloud services?
In our case, the obvious target for cloud services was email services. Why?
• The mail server is replaced every 3-4 years at an estimated cost of $15,000 to
$20,000.
• The mail server is often the most taxing of all the servers in respect to maintenance.
• The mail server must of course be backed up, both onsite and remotely.
• Archiving continues to become more challenging in respect to “open records”
requirements.
• Spam Filtering and Virus Control can be demanding.
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28. Finding a Provider
Once email services were targeted, research was required in order to find potential
solutions, vendors and identifying advantages, disadvantages and cost.
I conducted this research through the following channels.
• I contacted our technology partner, CDW-G for recommendations and solutions.
• I found and reviewed “white papers” and “case studies”.
• I found and reviewed currently technology articles regarding cloud services and
cloud providers.
afterward
• I focused on two (2) providers where I was finding consistent positive reviews and
where I believed current trends were heading.
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29. Finding a Provider
I made a decision to focus on Microsoft Online Services and Google Apps.
Why these companies?
• Long term track records in the technology industry.
• Aggressive moves by both into “cloud services”.
• Financially sound, independent companies.
• Strong vision of what “cloud services” can become.
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30. Considering Providers
Choosing a provider can be a very daunting and challenging task. No one wants to
choose the wrong provider of any service. Therefore take your time, prepare a
plan and conduct fair and consistent interviews.
How to do this?
Prepare an “interview script”. The “interview script” should include:
• A description of your organization’s information technology infrastructure.
• A description of your staffing situation.
• A description of how email services are currently deployed and managed.
• Detail of shared calendars, public folders.
• Detail of how email is accessed on premises and remotely.
• Detail of how smartphones and other mobile devices are utilized.
• List a series of a questions that respond to any questions & concerns you
have.
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31. Considering Providers
With this “interview script” in hand I scheduled and conducted interviews and
follow-up interviews with representatives from Microsoft and Google.
The interview and evaluation process proceeded over a two month period.
During this time I reviewed my “interview script” notes (which I completed
during the interviews).
I researched their responses through published “case studies” and “white
papers”.
I remained in contact with the representatives asking questions and following
up as needed to understand and validate the information provided.
I then had to make a choice….
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32. Making a Decision
Every CIO must make decisions with the best interest of their organization in mind.
Because the Borough of West Chester has only one staff member managing and
providing all technology services the ability to reduce some overhead was critical
to maintaining such a small footprint on the budget.
The Borough of West Chester’s network is Windows based. Microsoft Office is
the productivity suite in use.
The Microsoft Online Service is built with Microsoft Office (and Outlook) in
mind. On the other hand Google Apps of course utilizes their existing G-Mail
infrastructure.
Because of these facts the following question was continually being considered
in my mind.
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33. Making a Decision
If Google Apps was chosen would I simply be trading server based
maintenance (time) for user end service as employees were asked
to adopt and learn how to use G-Mail as opposed to Microsoft
Outlook?
Now for me, this was a critical question, and one I could not afford to get wrong.
Microsoft Online Services was very strong in all of their responses and at
no point was Google Apps able to alleviate the fear I had of adding more
“help desk time” (G-Mail) while reducing “server maintenance” time.
In addition these issues were considered:
• The “price points” were very close. No clear winner here.
• Microsoft offered superior data security solutions.
• Microsoft offers other cloud services such as “Sharepoint” which are integrated
into Microsoft Office. Again, less training and learning time for our employees.
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34. Microsoft Online Services
I chose “Microsoft Online Services”. In the end it was not a very difficult decision.
After all, by removing the mail server and continuing to provide email services
through a “pipe” that the employees were already familiar I predicted a win-win!
In addition to simply handing over the email to
Microsoft we would be enhancing the
following services.
• Enhanced Accessing Options
• Enhanced Backup Services
• Corporate Compliant Archiving (7 years)
• Integrated Anti-Virus (AV) services
• Integrated Spam Filtering (Forefront)
• Enhanced Data Security*
* 6 data centers in the continental US.
* US Department of Defense (DOS) certified data security.
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35. Microsoft Online Services - Cost
Ok so what does it cost?
Microsoft Exchange Online: $3.98 (user/monthly)*
Exchange Hosted Archiving: $3.45 (user/monthly)
* Each mailbox has 25GB of space available.
Budget Year - 2011
As a result of no longer needing to purchase an exchange server in the year
2011 and by ending our contract with Postini (spam filtering) a projected
saving of $1,657 is expected.
Budget Year - 2012
A projected saving of $1,785 is also expected in 2012 as a result of retiring
the old exchange server and re-assigning it to another task.
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36. Microsoft Online Services - Cost
A Final Word on Projected Savings
The projected saving of $3,442 over 2 years is not the most critical element for
the Borough of West Chester.
By moving the email services to Microsoft’s cloud the Borough of West Chester
places itself in a position to continue maintaining its low cost footprint in
respect to information technology as it relates to the general annual budget.
Exchange Online and perhaps other
Microsoft Online Services such as
“Sharepoint” will help the Borough of West
Chester continue to provide excellent
information technology services without
breaking the government’s bank.
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