ssierHP Tech Do STRATEGY GUIDE TO APPLICATION MODERNIZATION IN GOVERNMENT Citizens expect and deserve quality service from their government. But today’s world, with its mobile devices and ubiquitous Internet access, has raised the bar. We live in a society where people want and expect information instantly, whether they are checking the weather and sports scores on their phones or accessing the local library from their tablet device. Similarly, they want government service that is faster, more convenient and more efficient than ever. Many state and local governments, however, are saddled with legacy systems and SPONSORED BY HP AND INTEL applications, some dating as far back as the 1960s. These environments have become overly complex and expensive to maintain. More important, they preclude agencies from moving forward to take advantage of the latest technologies, such as cloud computing, that enable services that are more efficient and cost-effective. Application modernization is an important step to transform an organization with out- dated technology to one that benefits from a modernized platform. This technology dossier explains the challenges and benefits of application transformation and suggests how government IT departments might begin the process.
2 // HP Tech Dossier: BUSINESS RISK MITIGATION FOR HEALTHCARE /// OLD SYSTEMS HOLD AGENCIES BACK “Rolling out applications Do you still rely on mainframe systems that are quicker and shortening the more than 30 years old? Many governments still do. Although modified over the years to meet new needs, time to deploy new servers these systems rely on old programming languages, are several advantages of such as COBOL, that are inflexible and in which expertise is disappearing as mainframe programmers virtualizing on HP servers.” retire. Have you added systems atop the old, creating — Paul Roybal a convoluted IT environment that is expensive, error- Chief Information Officer prone and time-consuming to maintain. In general, up Bernalillo County, New Mexico to 80 percent of an IT budget is used to keep currently Read the full story implemented systems up and running. When older systems and applications are involved, that figure goes even higher. and Affordable Care Act mandates the creation of Government agencies are handicapped when it comes health insurance exchanges, requiring many states to to delivering better services and meeting federal upgrade their systems so they can handle electronic mandates. For example, the 2010 Patient Protection health records and integrate with other state and regional exchanges as well as federal databases. At the same time, state and local governments are HP APPLICATION TRANSFORMATION under tremendous budget pressure. Although the EXPERIENCE WORKSHOP federal government offers some grants for certain projects, most modernization relies on current shrinking internal IT budgets. Avoid being penny-wise DRAWING ON EXTENSIVE EXPERIENCE in application transforma- but pound foolish when it comes to modernization. tion, HP offers the Application Transformation Experience to help customers determine how modernization might help them. This Your legacy systems may be weighed down by heavy practical workshop helps customers: maintenance costs and inflexible architecture. They consume increasing amounts of IT resources while k Develop a clear understanding of their transformation require- ments, challenges and ongoing initiatives limiting government capabilities. And it’s important to remember that modernization need not be one large k Envision what their own modernization project might look like by investment. In fact, by taking even small steps toward walking them through a large application transformation program and examining critical success factors and best practices modernization, IT organizations can often net substan- tial savings. According to HP the typical return on , k Determine what value could be achieved by transforming investment for modernization projects can range from applications 20 percent to 60 percent. Those savings can then be k Understand how to develop an application transformation used for further modernization. A crucial first step is to road map conduct an accurate assessment of your systems and The workshop details the stages of a successful transformation application portfolio. The key is to identify projects that project, from identifying reasons to modernize to devising a plan require a low up-front investment and yet promise the for doing so, including possible funding options. most-significant advantages. (See story on HP Applica- tion Transformation Experience on the left.)
3 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION MODERNIZATION IN GOVERNMENT “HP’s server blade technology SMALL TOWN, BIG SERVICES as part of our new virtualized IN MODERNIZATION AS IN LIFE, timing can be everything. The City server environment has of Niles, Ohio, modernized its IT infrastructure in 2007, just before the allowed us to reach availabil- financial meltdown of 2008. Today, even as many local governments struggle under unprecedented budget cutbacks, the City has found ways ity thresholds that we couldn’t to increase revenue, improve services and support a growing business community—largely because of its new IT infrastructure. before.” — Tim Garza The city of 20,000 has essentially one full-time IT person: IT Director Chief Information Officer Tom Telego. Before the modernization, more than a dozen physical State of California Department of Water Resources servers scattered across the city and running individual applications meant that Telego often had to rush from one site to another to Read the full story implement short-term fixes. The City deployed HP Converged Infrastructure technologies, including HP P4000 G2 and P4500 G2 SANs as well as two HP ProLiant DL360 Servers that now host 45 virtual machines, enabling the local govern- /// THE BENEFITS OF MODERNIZATION ment to take advantage of cloud computing. Modernization brings many advantages. They include both short- and long-term savings as well as immediate “HP Converged Infrastructure technologies have given us, a small city, tactical and long-term strategic benefits: the ability to respond to our community’s needs and the economic environment at a speed that would not have been possible with our k COST: Modernization eliminates outdated systems piecemeal legacy infrastructure,” says Telego. and builds a standardized platform that requires less time and money to maintain. Systems and O B J E C T I V E: applications do not require staff with specialized, Create a 24 x 7 secure, cost-effective and scalable infrastructure to hard-to-find and expensive skills. Because these support important city functions and services platforms use smaller hardware and modern techniques such as virtualization, they require less I S S U E S: expenditure for physical machines, the space to k Downtime-prone, decentralized legacy IT infrastructure house them and the energy—both human and k Minimal IT budget electrical—to run them. k One-person IT staff k FLEXIBILITY AND AGILITY: Unlike old systems that can be hard to reprogram, modern platforms I T I M P R O V E M E N T S: are based on standard hardware, applications and k 70 percent reduction in system maintenance time, freeing staff for programming languages. Staff can change and add more-valuable tasks applications quickly, adjusting to shifting regulations k 99.7 percent reduction in unplanned system downtime, from 14 days and adapting to the needs of citizens. The systems a year to less than an hour also enable easy integration of new technologies, k 15 minutes to roll out a new virtual machine, compared to two or enabling new services to be deployed faster. And three days previously for a physical server because they require less maintenance, modern k Ability to support 50 percent annual data growth systems free up IT staff to add more value to the k 60 percent savings in storage space through thin provisioning organization through activities such as devising new services and developing new applications. B U S I N E S S B E N E F I T S: k ALIGNMENT OF IT WITH INTERNAL k Threefold increase in IT services offered to state employees and PROCESSES: In too many instances, rigid the community legacy systems have dictated agency processes, k As much as $8,000 saved in each new software rollout or upgrade preventing improvements that would lower costs k 40 percent increase in police patrol time due to streamlined and improve efficiency. A system may have been online reporting programmed to process information in a particular way, based on government regulations, for example. k Projected 50 percent reduction in time required to remotely monitor and maintain 911 emergency system But when regulations change, it is difficult or impos- sible to reconfigure the system, so an agency may k Maximum IT availability to operate city services be forced to stick with an old business process that k Projected increased revenue generation due to implementation includes steps that would not be necessary in a of a smart power grid to optimize power usage modern system. With modern systems, IT adjusts
4 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION MODERNIZATION IN GOVERNMENT to support business processes rather forcing the CRITICAL ISSUES IN STATE AND business processes to adapt to it. LOCAL GOVERNMENT k Improved security: Many legacy systems were designed before the explosion of the Internet and IN AN ERA OF SHRINKING BUDGETS, state and local governments are thus did not take into account the possibility of the hard-pressed to find the funds to modernize applications and systems. Web and ubiquitous connectivity. Modern systems Organizations like yours are looking to modernization to improve include security features specifically designed to efficiency, productivity, and security as well as reduce costs. The protect against security threats from the Internet. best approach may be to start with small, incremental steps. Among the critical issues for government are: /// WHERE TO BEGIN k RISING CITIZEN EXPECTATIONS: Society is more mobile and Modernization can seem overwhelming, but like any connected and citizens are increasingly expecting faster, more other journey, it begins with the assessment of your convenient and more accessible services. current infrastructure. An experienced partner can k SHARED SERVICES: As various state agencies as well as local guide government IT managers through this assess- governments consolidate infrastructure and start to share services, ment phase, helping identify which modernization systems and applications will be key to achieving expected cost steps will net the highest ROI and lay the groundwork reductions. for an overall modernization plan. k INSECURE LEGACY SYSTEMS: Mainframe systems were designed pre-Internet, with no network security, so they can pose data security HP has more than 45 years of experience in applica- risks. tion transformation, providing comprehensive modern- k ORPHANED SYSTEMS: As Baby Boomer programmers retire, ization solutions and strategies for clients across a governments find it increasingly difficult and expensive to find staff range of industries. HP’s innovative approach can to run old legacy systems and applications. improve business performance by up to 25 percent, k STRATEGIC MODERNIZATION: Thorough evaluation of current reduce application and infrastructure costs by 30 to 60 apps and systems is required in order to identify the stages and steps percent and redirect IT spending to growth initiatives. of modernization. Together, HP and Intel redefine energy efficiency, data center and cloud platform innovation. With an unmatched depth of resources, partnership and lead- ership, HP and Intel enable their customers to manage the volatile demand for energy, data and applications. For more information on HP offerings in application transformation, Application Transformation Solutions. n Four Ways to a Self-Sufficient Infrastructure: HP ProLiant Gen8 Learn more about the new HP ProLiant Gen8…explore the architecture, see the portfolio, understand the value and join the conversation. Intel and the Intel logo are registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.Watch Paolo de Santis, Director of Applications and Security, MIUR, talkabout their technology infrastructure modernization rollout. HP is a registered trademark of Hewlett-Packard Company.
5 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION MODERNIZATION IN GOVERNMENTSuggested ReadingThese additional resources include business white papersand previously published articles from IDG Enterprise. //////////// //////////// Study: IT Shops Running Way Pfizer’s Future Depends on Too Many Applications IT Transformation Nearly two-thirds of enterprises are supporting more With its business model ailing, this pharmaceutical gi- or “far more” applications than they actually need to ant tries a new IT formula, including a loyalty discount run their operations, according to a survey released card, mobile applications aimed at consumers, and a Monday by Hewlett-Packard and Capgemini. cloud-based tablet CRM system for physicians By Chris Kanaracus By Kim S. Nash CIO.com CIO.com Nearly two-thirds of enterprises are supporting more Chip-munching, sedentary people have made Pfizer a or “far more” applications than they actually need to bundle of money. Lipitor, a drug that lowers cholester- run their operations, according to a survey released ol, ranks as Pfizer’s top-selling pill for 12 years running. Monday by Hewlett-Packard (HPQ) and Capgemini. A blockbuster among blockbusters, Lipitor brought in $10.7 billion, or 16 percent, of the company’s $67.8 Just 4 percent of the roughly 100 IT decision-makers billion in revenues last year. polled consider every system they run to be “busi- ness-critical,” according to the study. This month, though, Pfizer loses a crucial patent protection on Lipitor and, with it, the exclusive right The simple cost of retiring applications was the leading to make and sell the drug. Competitors are ready to reason cited for keeping obsolete software in produc- swoop in with generic versions and swoop out with tion, since most IT budgets are aligned around areas many billions of dollars. like maintaining existing applications and new projects, according to the study. Read the full article Smaller companies surveyed didn’t have the same problems with excessive software. Almost 75 percent //////////// of small businesses said they have “just the right” number of applications, and another 23 percent said Transforming IT to Show Cost they don’t have enough. of Services: 5 Best Practices There was a wide disparity in application portfolio IT has struggled for years to calculate and prove what sizes as well. Eighty-four percent of smaller companies its own services actually cost to deliver to the busi- said they support fewer than 50 applications. Mean- ness. Consider these five strategies, as shared by CIOs who’ve already battle-tested them, says Sunny Gupta, while, enterprises reported they handle up to 10,000 CEO of Apptio. applications. By Sunny Gupta, CEO Apptio Bloated and redundant IT landscapes result from CIO.com factors like mergers and acquisitions, coupled with a lack of formal processes for retiring software, the Recently, we brought together 60 CIOs and IT leaders study said. from the Fortune 1000 for our bi-annual “CIO Technol- ogy Business Management Council” meeting. The Its respondents were from companies of a variety purpose of this event was to provide participants with of sizes and industries, with 63 percent in Europe and an opportunity to learn from their peers about how to 37 percent in the U.S. transform their IT organization into a services oriented HP and Capgemini provide a range of application organization and run “IT like a business.” modernization products and services. Today’s IT leaders need real-time intelligence to make Chris Kanaracus covers enterprise software and fact-based decisions. Think of IT in the context of a general technology breaking news for The IDG classic supply chain. News Service. Chris’s e-mail address is Read the full article Chris_Kanaracus@idg.com
6 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION MODERNIZATION IN GOVERNMENTSuggested Reading //////////// //////////// The Secret to Successful U.S. CIO Unveils Mobile Strategy Software Innovation Projects for Federal Government Building your own software seems nuts these days. Obama administration tech chief Steven VanRoekel But these CIOs from NYSE, KKR and Alcoa are doing it looks to narrow mobile gap between feds and private anyway. Why? To gain competitive advantage. sector, also cites consumerization of IT and the migra- tion to the cloud as key areas. By Kim S. Nash CIO.com By Kenneth Corbin CIO.com Enterprise software has long been available, neatly packaged, for all core corporate functions. And now, The Obama administration at the Consumer Electron- in the age of cloud computing, it can be turned on and ics Show in Las Vegas unveiled an ambitious new off like water from a spigot. Outsourcers run our data initiative to remake the way the federal government centers, technology is for sale at discount warehouse approaches mobile technology, soliciting ideas from clubs. And still, some CIOs choose to build major soft- the public for how federal agencies can tap mobile ware from scratch. Why? devices and apps to operate more efficiently and bet- ter serve citizens. Creating competitive advantage is the goal of many IT innovation projects, and in some cases you can’t U.S. CIO Steven VanRoekel announced the program at achieve that without building your own systems. The the annual Consumer Electronics Show in Las Vegas, New York Stock Exchange (NYSE) Euronext and its a symbolic setting that amplifies the theme of the fierce rival Nasdaq OMX, for example, run custom-built federal government taking its cues on IT from the most trading systems that they continually tweak for stabil- innovative quarters of the private sector. ity and speed. Read the full article Read the full article //////////// //////////// State Dept. Official: Governments TechAmerica Foundation: Govern- Can’t Fight Social Media ments Need to Get Into the Cloud Ross calls for governments to support an open Internet, but not for terrorism organizations The cloud is being pitched as the best way to do more with less, but government agencies are slow to mod- By Grant Gross ernize, California official stresses CIO.com By Paul Krill Government officials worldwide should stop fighting CIO.com against the use of social media and embrace con- Cloud computing presents opportunities for govern- versations with their citizens, except in the case of ments to modernize and improve cost efficiency, terrorist groups, a U.S. Department of State official public officials stressed Thursday at the introduction said Tuesday. of a report advising state and local governments on It will be difficult for government officials to control cloud adoption. But one California official cited govern- social media use, Alec Ross, senior advisor for innova- ment tendencies making the modernization process a tion in the Office of Secretary of State Hillary Clinton, slow one. said during an online chat with journalists. A journalist The TechAmerica Foundation’s State and Local from Guyana asked Ross how governments should Government Cloud Commission released its report en- “deal with or control” the negative consequences of titled “The Cloud Imperative ,” offering best practices social media. for cloud computing for state and local governments. Read the full article Read the full article