This document discusses the federal government's strategy for adopting cloud computing. It outlines that [1] federal data centers currently have low utilization rates and high costs, [2] shifting to cloud computing could save up to $20 billion per year by improving efficiency, agility and innovation, and [3] some early government adopters like HHS, GSA and the Department of Defense have already realized significant cost savings and other benefits from cloud computing.

1. Federal Cloud Computing Strategy
Vivek Kundra
U. S. Chief Information Officer
www.whitehouse.gov

2. The Case for Change
Manufacturing Capacity Utilization
90
80 Manufacturing Average – 79%
70
60
% Utilization
50
83 83 81
t
40 78 79
71
30
20
27
10
0
Typical Federal U.S. E.U. France Germany U.S. Brazil Canada
Government Server Sources: Board of Governors of the Federal Reserve System
Eurostat (Data for E.U., France, & Germany)
Source: Agency Data Central Bank of Brazil
Statistics Canada
2

3. The Case for Change
2,500
Efficiency • Low asset utilization
2,094
(
(server utilization < 30%
2,000 typical)
• Fragmented demand and
duplicative systems
Data Centers (Number)
• Difficult‐to‐manage
N
1,500
1 500
Agility • Years required to build
data centers for new
services
1,000 • Months required to
increase capacity of
i f
existing services
500 Innovation • Burdened by asset
432 management
235
• De‐coupled f
l d from private
12 sector innovation
0 engines
1997 1998 2009 2010 • Risk‐averse culture
Federal Government IBM
3

4. Federal Government Cloud Computing
Potential
Efficiency • Improved asset utilization
• Aggregated demand and accelerated
gg g
system consolidation (Federal Data
$ 80 Billion $ 20 Billion Center Consolidation Initiative)
• Improved productivity in application
development, application
management, network, and end‐user
g , ,
Agility • Purchase “as‐a‐service” from trusted
cloud providers
• Near‐instantaneous increases and
reductions in capacity
• More responsive to urgent agency
needs
Innovation • Shift focus from asset ownership to
service management
• Tap into private sector innovation
Total IT Spending Potential • Encourages entrepreneurial culture
Spending on
• Better linked to emerging
Cloud Computing technologies (e.g., devices)
4

5. Potential Spending on Cloud
Computing by Agency
5

6. Early Adopters
HHS GSA Dept of Defense
Electronic Health Cloud Email Migration Army Experience
Records (EHS) Center (AEC)
 Reduced time to go live  $15 M savings  Implementation cost
from 1 year+ to 3 1/20 of estimate to
 Migrating 17,000 users
months upgrade legacy system
 Eliminating redundant ($54 K vs. $1 M+)
 Supports more than
infrastructure at 17
100,000 Primary Care  Reduced recruiter
global locations
Practitioners workforce required to
handle the same
workload
Recovery Dept of Defense Dept of Agriculture
Accountability &
Air Force – Personnel Cloud Email Migration
Transparency Board
Services Delivery
Recovery.gov Transformation
 $750 K savings  $27 M savings
 $4 M annual savings
 Reallocate $1 M+ to  Migrating 120,000 users
 Improved customer
identify fraud, waste, search times from 20  Consolidating 21
and abuse minutes to less than 2 fragmented email
minutes systems
6

7. Catalyzing Cloud Adoption
SECURITY STANDARDS PROCUREMENT GOVERNANCE
• Centralize certification and • Define and evolve standards • Develop procurement vehicles • Set policy and enforce
accreditation for cloud to ensure interoperability, to accelerate the purchase of budget priorities
solutions portability, and security cloud solutions
• Prioritize security controls to • Propose and test interim • Maximize strategic sourcing to • Align with regulatory and
counter the most serious standards buy cloud solutions legal frameworks
threats
• Publish cloud computing • Eliminate redundant and • Drive government‐wide
• Use near real time security business and technical use inefficient vendor certifications adoption
dashboards to facilitate cases a neutral reference
cases,
continuous monitoring architecture and taxonomy • Integrate needs of State and • Collaborate with
local governments international entities
• Integrate identity
management
7

8. Exponential Growth in Demand
Shifting from asset ownership to service provisioning
CATEGORY SERVICE EXAMPLES AGENCY EXAMPLES
• Agency‐wide email to the cloud
Collaboration
• Office productivity tools
• Employment verification
• Grants management
Workflow
• Claims processing
• Customer relationship management
• Public‐facing websites hosted in the cloud
• Application development/testing
Infrastructure
• Content delivery
• Virtualized data centers
• Data analytics
Business Intelligence
• Performance management
Information
f ti • Identi
Id ity management
Security • Security management services
8

9. Vivek Kundra
U. S. Chief Information Officer
www.whitehouse.gov
February 14, 2011