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Public Sector and the Cloud: Doing more for less
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Public Sector and the Cloud: Doing more for less


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Cloud services bring the flexibility the public sector needs. For example, hosting a number of existing local and national applications in one place boosts cooperation between governmental …

Cloud services bring the flexibility the public sector needs. For example, hosting a number of existing local and national applications in one place boosts cooperation between governmental organisations and provides a scalable platform for the future.

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  • 1. GROWTH AND TRUSTGlobal cloud insiGht - public sector Space to transform
  • 2. 2 summary • people want their governments to act more quickly, so “all processes and systems that support quick changes in laws and regulations have to be in place. applications that can be • public sector bodies need to: focus on doing more shared will be for less; make sure they deliver services reliably shared and and consistently; get the most out of existing hosted on legacy systems; and use technology to encourage a common collaboration and quicker decision making. infrastructure.” • More and more people, especially younger people, Donald van Gasteren expect to get services when they want it and Global Insight Director where they want it. and getting people to look after Logica themselves – the ‘self-service’ approach – is a big benefit for the public sector too. • budget cuts in the public sector are severe, so it’s no surprise that clients see ‘cutting business costs’ as the cloud’s number one role. but they also believe cloud services offer simple and speedy solutions to business issues. • public sector clients have started to think about how cloud services could help them achieve their top priorities and get rid of costly legacy services. • consolidating services, making them virtual, and sharing them is a key part of moving from a fixed-fee service or licence to a pay-per-use model, and bringing down costs and capital investment. • ‘data security’ is the number one concern for public sector clients. some even see it as a ‘show-stopper’ because of the sheer amount of legal and regulatory requirements that they need to comply with. Global cloud insiGht – public sector
  • 3. 3introduction“the cloud is just commonbusiness sense.”is the cloud just another delivery modelor will it change the public sector’srelationship with citizens? can it give thembetter services or is it a distraction? is itjust about cutting costs, or about findingnew ways to do things? or a bit of both?this research report puts forward evidencethat these questions can be answered, andin fact have been already. and that gettingthe implementation right is critical.“our clients’ cloud assessment.”We had more than 250 conversationswith our public sector clients acrossWestern europe in 2011 and found manyinteresting attitudes towards the this report, we’ll look at how these publicsector organisations see the impact ofcloud services on their business, now andin the future, and what concerns they have.Global cloud insiGht – public sector
  • 4. 4 the cloud’s getting a lot of interest the public sector’s use of the cloud has picked up momentum over the past few months, and the way these organisations use it has changed, too. some public bodies see the cloud as an evolutionary move from delivering products to delivering services; others see it as a fundamental change in how a government organisation works internally and with others. however they see it, our public sector clients are assessing and developing their cloud strategies. it isn’t hard to imagine how cloud services could dramatically change current business processes. Global cloud insiGht – public sector
  • 5. 5the cloud: it’s all about deliveringservices to citizensWe found that the issues our clients want some of the current services lack flexibilitycloud services to deal with changed a lot in and choice, but more citizens are askingthe first half of 2011. this is because they for more flexible access to public sector “We have beennow understand much better what these services. able to reduce ourservices can do. a number of facilities could help headcount by 40%in one out of three client here – those that support changes in over the past twoconversations We talked governmental organisational entities, years.” encourage different departments to workabout hoW iMportant it is Client quote together more, can ‘ramp up’ and ‘scaleto Make orGanisations More down’ infrastructure capacity, and speedaGile up the deployment of new networks and storage. they would also let organisationsin fact, ‘becoming more agile’ has introduce smart working practices, makemoved into first place. people want their their workforce more agile, cut down thegovernments to act more quickly, so number of offices they need, provide self-processes and systems that support quick service portals for citizens and make morechanges in laws and regulations have to use of conference calls and in place. some clients also see agility as being ableMost clients see agility as being flexible to deliver integrated services alongsideenough to cope with sudden peaks in private companies. for example, hospitalsdemand – at both the development are sharing patient information with otherand service delivery stages. they need health professionals like laboratories,to improve the way they develop new, family doctors and independent nursesupdated or enhanced services for more often. these programmes needcitizens, for example, by improving the flexible it services, modern tools atdevelopment cycle or by taking advantage reasonable prices, flexibility in capacity,of developments that have already been shared application support and flexiblemade centrally. clients recognise that software licensing. Figure 1. Top 5 most mentioned business issues45% 45%40% 40%35% 35%30% 30%25% 25%20% 20%15% 15%10% 10% 5% 5% 0% 0% Improving business Reducing operational Moving to a variable Improving Enhancing the current operating models risk cost structure business agility customer experience Central Government Local Government Healthcare Public Safety and Justice Space and DefenceGlobal cloud insiGht – public sector
  • 6. 6 froM siMplifyinG processes to iMprovinG the business “cloud services would operatinG Model allow us to move at the end of last year, clients were more to a mission-based concerned with simplifying their business structure where a processes, delivering services and cutting new mission can have operational costs. but 30% of them now see improving their business operating resources assigned to model as a big issue to sort out, specifically it from the cloud.” in areas of public safety. Client quote public sector bodies have a number of reasons to do this. in particular, they need to: • focus on doing more for less. this is MakinG the custoMer about being more efficient, not just experience better cutting costs. one item mentioned was consolidating data centre services another challenge clients mentioned a lot to significantly reduce costs across was how to make the citizen’s experience estates, communications and staffing of dealing with the public sector better – a as well as improve services. another key part of becoming more ‘citizen-centric’. was increasing the support for front and back office business process everyone should get the same high service outsourcing services – even those who live in rural areas. so a number of existing web-based facilities “a unified support • make sure they give their citizens need improvements. one of these areas is service will eliminate reliable and consistent services mobile web-based applications. More and duplication in staffing, more people, especially younger people, • get the most out of existing legacy expect to get services when and where estates, and contact systems. clients see partnering with a commercial body as the best way to they want them. and getting people to centre infrastructure do this, for example, in the area of web look after themselves – the ‘self-service’ (processes, approach – is a big benefit for the public hosting sector, too. telephony, tools, etc.) • offer services so citizens can get whilst delivering a more involved with policy and other cloud services could well help at both more consistent, decisions (for example, new ways of ends, giving citizens premium services communicating with citizens based through simple but innovative products, better quality, user through social media) and public sector organisations smart experience.” working facilities. Client quote • make decisions more quickly, both for national and local authorities and community bodies. Global cloud insiGht – public sector
  • 7. 7vieWs in the sub-sectors ‘improving the business operating model’ Moving existing solutions and applications as their top business issue. clients from to the cloud does come with some cost. so the other two – central government and you need a solid business case and a shortclients from three of the five sub-sectors local government – put ‘becoming more payback period for it to make sense.– healthcare, public safety and justice, agile’ at the top.and space and defence – mentioned Figure 2. Top 3 most mentioned roles of cloud40% 40%35% 35%30% 30%25% 25%20% 20%15% 15%10% 10% 5% 5% 0% 0% Reducing business cost Improving the business’ access to technology Other Central Government Local Government Healthcare Public Safety and Justice Space and DefencecuttinG business costs iMprovinG access to technoloGy “all applicationsbudget cuts in the public sector are severe,so it’s no surprise that clients see ‘cutting that can be shared clients believe cloud services offer simplebusiness costs’ as the cloud’s number and speedy solutions to business issues. will be shared andone role, switching places with ‘improving they’re not really interested in how the hosted on a commonaccess to technology’ from the end of last technology works, but in the way it letsyear. infrastructure.” them offer citizens better and richer services, give up physical documents,public sector clients see how the cloud can share more, get economies of scale and Donald van Gasterenconsolidate and standardise processes Global Insight Director Logica better accessibility.and make them more cost effective. butthey’re concerned about the cost of clients realise that younger citizens havemoving to the cloud and the possible loss grown up with devices in the palms ofof control. their hands and that they need to reach them through these new channels. but they also understand how important it is “any scope to reduce to keep a service up and running 24/7 and costs without loss performing well. so they often experiment of service is very with the cloud on non-critical business elements first, like twitter, as a way to welcome.” encourage working together and changing Client quote behaviour in the organisation.Global cloud insiGht – public sector
  • 8. 8 neW ideas for cloud vieWs in the sub-sectors an interesting change has taken place almost a quarter of clients put ‘cutting over the past couple of months: clients business costs’ as their top role for the are now mentioning other business roles cloud, as did the majority of clients from the cloud could have. for example, clients the local government, public safety and think of the cloud as a way to improve justice, and space and defence sub- operations and make sure services are sectors. Many central government clients available 24/7, while making less impact are still trying to find a role for the cloud. on the environment at the same time. healthcare clients gave a mix of responses, the cloud could also encourage different like ‘cutting business costs’ and ‘achieving departments to work together more and service excellence’. cut down the number of local applications the public sector has to manage (some governments have more than 2,000 of them). and of course new ways of communicating, like social networking, have taken off, which call for cloud-type models. business reasons: and get rid of costly legacy services. the cloud services bring the flexibility providinG a better service way they deliver services is a key element the public sector needs. for example, in this, as it has to strike the right balance hosting a number of existing local and between being cost effective and fitting national applications in one place boosts now that cloud services are easier to get with the organisation. since capabilities in cooperation between governmental hold of, public sector clients have started some areas are scarce, it makes sense for organisations and provides a scalable to think more about how these services departments to share cloud investments. platform for the future. can help them achieve their top priorities Figure 3. Top 3 most mentioned business reasons 50% 50% 45% 45% 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Allows us to focus resource on Lowers overall costs If it is only available as a service more important projects Central Government Local Government Healthcare Public Safety and Justice Space and Defence Global cloud insiGht – public sector
  • 9. 9focusinG resources loWers overall costsdepartments are losing skills: it’s hard to one of the biggest challenges for clientskeep good people, and many are retiring is lowering overall costs to balanceanyway. so it would come as a relief to be their budget. they’ll carefully look atable to focus on their core business and any proposition that makes actual costbusiness critical projects, and let trusted savings each year, after taking transitionsuppliers look after the infrastructure and costs into account. at the moment theyapplications. for example, using a secure think infrastructures are expensive andcloud environment to deliver infrastructure inefficient, and can’t cope with growth.and applications as a service would save consolidating services, making themmoney and resources by reducing the virtual, and sharing them is a key part ofhardware needed. moving from a fixed-fee service or licence to a pay-per-use model, and bringing down costs and capital investment, of course. but the formal purchasing procedures of the public sector could be an issue for pay- per-use.vieWs in the sub-sectors of space and defence clients put ‘lets us focus resources on more importantMany clients viewed ‘lowers overall costs’ projects’ as their major business an important business reason for the healthcare and central government clientscloud; almost half of local government gave a mixed response.clients and a third of public safety andjustice clients mentioned it. the majority Figure 4. Top 5 most mentioned business concerns60% 60%50% 50%40% 40%30% 30%20% 20%10% 10% 0% 0% Uncertainty regarding Vendor lock in Loss of control Data security Other location of server Central Government Local Government Healthcare Public Safety and Justice Space and DefenceGlobal cloud insiGht – public sector
  • 10. 10 security is the top business reluctant to share projects because it concern breaks down the separation of different types of data. and because you have our approach to securing ‘data security’ is the number one concern to delete some data after a certain the cloud amount of time, you have to be able to for public sector clients. some even see find it easily. 1. Work out the risks for each cloud it as a ‘show-stopper’ because of the sheer amount of legal and regulatory project, taking into account applicable • Public opinion and reputation. recent requirements in this area that they need regulations, data sensitivity and security breaches have damaged to comply with. so there’s a strong need business requirements. reputations and fostered the opinion for a cloud service that supports secure that data isn’t safe once it’s left your 2. decide on the deployment model operations. own premises. (private, public or hybrid) and the • a big challenge is to set up different service model (infrastructure as a there are different aspects of data levels of access to data and services, service, platform as a service, or security: without adding to the cost. software as a service) depending on the risks. • Legislation. the movement of data across borders has to be strictly other concerns 3. Make sure you integrate security with regulated. there is flexibility when it the existing technical, organisational comes to moving data around the the security aspects above are closely and procedural set-ups. evaluate the european union. but some people linked to the second and third most need to add security services like believe that governments should keep important business concerns, ‘not knowing digital signatures, time-stamping, their data in their own country. where the server is’ and ‘losing control’. secure archiving and logs. some clients don’t want to be dependent • Sensitive information. you should on outside service providers – they might never store confidential government 4. if a third party delivers the service, feel helpless if things go wrong. there documents in a public cloud. data like make sure you understand exactly are other concerns as well, like ‘being personal medical, military and criminal what security is in place. locked in to a particular vendor’, ‘not records can be highly sensitive and being compliant’ and ‘having migration needs its own solution. 5. set up and monitor performance problems’. indicators for security so you can make • Privacy. for personal data you need to sure it keeps doing the job over time. comply with national laws and privacy regulations. citizens want to know you Thibault Chevillotte, can segregate data so that only the relevant officials can get hold of the Senior Manager, Security & Risk relevant information. clients can be Management, Logica Business Consulting A protected space Global cloud insiGht – public sector
  • 11. 11conclusionis the cloud here to stay? We say yes, butwe also say the cloud is just the cloud services in the public sector “When we talk to our clients we find Governmentsstart to mature, new business models will across europe are using the cloud to transformappear, eventually reshaping the wholebusiness environment. the way they operate and deliver public services. it saves them money, supports inter-departmentalis it really that important? again, we say information sharing and new ways of engagingyes. cloud services will help you deal withthe growing need to cut costs and put the with their citizens.”citizen at the centre of what you do. Monique Mulder, Global Director Public Sector, LogicaWhat about the challenges? Well, theit’s already in place – that’s not an issue.We do need to overcome worries aboutsecurity and trust, which in time, we will.We need to be sensitive to how the publicsector deals with change, and help itthrough these business and challenging? yes. impossible? no.desirable? definitely.Global cloud insiGht – public sector
  • 12. copyright statement copyright © 2011 logica all rights reserved. this document is protected by international copyright law and may not be reprinted, reproduced, copied or utilised in whole or in part by any means including electronic, mechanical, or other means without the prior written consent of logica. Whilst reasonable care has been taken by logica to ensure the information contained herein is reasonably accurate, logica shall not, under any circumstances be liable for any loss or damage (direct or consequential) suffered by any party as a result of the contents of this publication or the reliance of any party thereon or any inaccuracy or omission therein. the information in this document is therefore provided on an “as is” basis without warranty and is subject to change without further notice and cannot be construed as a commitment by logica. logica is a business and technology service company, employing 41,000 people. it provides business consulting, systems integration and outsourcing to clients around the world, including many of europe’s largest businesses. logica creates value for clients by successfully integrating people, business and technology. it is committed to long term collaboration, applying insight to create innovative answers toLogica clients’ business needs. More information is available at brook driveGreen park australia / belGiuM / braZil / canada / chile / coloMbia / cZech republic / denMark / eGypt / estonia /reading, rG2 6ua finland / france GerMany / honG konG / hunGary / india / indonesia / kuWait / luxeMbourG / / Morocco / netherlands / norWay / peru / philippines / poland / portuGal / russia / saudi arabia / sinGapore / slovakia / spain / sWeden / sWitZerland / taiWan / ukraine / united arab eMirates / uk / / veneZuelacode 3586 1011