1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Jane Lacy - Sr. Manager, US Emerging Partners
Amazon Web Services
June 13, 2017
Get Started Today with
Cloud-Ready Contracts

2. Equipment
Resources and
Administration
Contracts Cost
No Up Front Expense
Pay for What You Use
Improve Time to
Market & Agility
Scale Up and
Down
Self-Service
Infrastructure
Traditional
Infrastructure
AWS Cloud
What is Cloud?

3. 2,300 Government Agencies, 7,000 Educational Customers, and 22,000 Non Profits
Who Uses Cloud?

4. New York City Department of Transportation
The New York City Department of Transportation has created
several citizen-facing mobile applications for city resident
convenience and safety using the AWS Cloud.
• The Sustainable Streets program charts DOT's progress in
making streets safer, improving mobility, and maintaining and
enhancing infrastructure.
• The DOTMap Portal shows alternate-side parking schedules
and other parking rules on a map, as well as data concerning
street resurfacing projects, construction, and reconstruction
projects.
• The iRideNYC application provides information on multiple
modes of transportation: subways, busses, bikes, and walking
paths offering users live data.
• The Superstorm Sandy Damage Assessment application was
built for rapidly assessing damage as a result of the storm.

5. Historic Cloud Contracting Challenges
Contract to cover all Cloud Deployment
Models (e.g., public, private, hybrid, etc.)
• Confusion when selecting a product,
service or Cloud Deployment Model
• Vendor assumes terms that do not apply
• e.g., Liability for a Public CSP Supplier may be
different from a Private CSP Subcontractor
• Increased complexity in determining
applicable terms
• Complimentary products & services often
excluded
• e.g., Support, Professional Services, Training,
etc.
Frame
work
Public Cloud
Terms
Hybrid
Cloud Terms
Private
Cloud Terms

6. Successful cloud procurement strategies focus on
application-level, performance-based requirements
that prioritize workloads and outcomes, rather than
dictate the underlying methods, infrastructure, or
hardware used to achieve performance requirements.

7. Don't Know Where to Start?
https://aws.amazon.com/how-to-buy/

8. • Focus on cloud computing benefits
• No ownership of physical assets
• Massive scalability
• Global data center redundancy
• Commit to a cloud-first policy
Cloud procurement should be purposively different from traditional IT procurement
Build a Cloud-Centric Procurement

9. Take Advantage of the Pace of Tech
Refresh & Innovation
Pace of innovation and continuous service improvements are a major reason
why more and more public sector customers are moving to the cloud
2010
61
516
1,017
159
2012 2014 2016

10. A successful cloud strategy involves all key stakeholders at an early stage
• Reset expectations about how to procure IT
• Highlight cost savings
After spinning out from its parent company, Claritas Genomics needed a low-
cost IT environment for its clinical diagnostics laboratory. The company took
advantage of AWS Security and Compliance to build a genetics platform that
met HIPAA requirements.
By using AWS, Claritas has lowered its IT costs by 30% per month, so it can
invest its limited resources in the business instead of IT.
• Conduct cloud security learning
• Discuss change management
Engage Key Stakeholders Early

11. Reframe the RFP Process
Use third party analyst reports to
evaluate RFP responses.
*Gartner, Magic Quadrant for Cloud Infrastructure as a Service, Worldwide, Leong, Lydia, Petri, Gregor,
Gill, Bob, Dorosh, Mike, August 3, 2016. This graphic was published by Gartner, Inc. as part of a larger
research document and should be evaluated in the context of the entire document. The Gartner document
is available upon request from AWS: http://www.gartner.com/doc/reprints?id=1-
2G2O5FC&ct=150519&st=sb. Gartner does not endorse any vendor, product, or service depicted in its
research publications and does not advise technology users to select only those vendors with the highest
ratings or other designation. Gartner research publications consist of the opinions of Gartner's research
organization and should not be construed as statements of fact. Gartner disclaims all warranties,
expressed or implied, with respect to this research, including any warranties of merchantability or fitness for
a particular purpose.

12. Insist on Solutions Architected for Government Requirements
And many more…
https://aws.amazon.com/compliance/
Cloud Providers should have certifications and accreditations for workloads that
matter to public sector customers

13. Understand Security Is a Shared Responsibility
+ =
• Facilities
• Physical security
• Compute infrastructure
• Storage infrastructure
• Network infrastructure
• Virtualization layer (EC2)
• Hardened service endpoints
• Rich IAM capabilities
• Network configuration
• Security groups
• OS firewalls
• Operating systems
• Application security
• Proper service configuration
• AuthN and account management
• Authorization policies
More secure and compliant
systems than any single entity
could normally achieve on its
own
Customers retain control of what
security they choose to implement
to protect their own content,
platform, applications, systems and
networks, no differently than they
would for applications in an on-site
datacenter.
AWS manages security of the cloud
Security in the cloud is the
responsibility of the customer.

14. Cloud Pricing Considerations
1. Transparency
CSP pricing should be publicly available and
transparent. Pricing in this format demonstrates the
cloud’s true commercial nature. AWS pricing information
is publicly available and found at
http://aws.amazon.com/pricing/.
2. Variable Prices
Given the massive scale of cloud computing, and the
utility-like model of offering standardized services to
millions of customers, it is not possible for a CSP to
provide unique pricing that is “locked-in” at a certain
price. Instead, a cloud procurement model should
include the flexibility to allow cloud prices to fluctuate
based on market pricing. This approach takes
advantage of the dynamic and competitive nature of
cloud pricing, and supports innovation and price
reductions (AWS has lowered prices 59 times since
2006).
3. Multiple Pricing Models
Allowing CSPs to offer different pricing models enables
organizations to evaluate each CSP pricing model
against their own unique IT requirements, as opposed to
an arbitrary “apples to apples” pricing comparison of
compute or storage “units.”
Cloud solicitations should allow CSPs to offer their own
pricing models, enabling customers to select a model
that best meets their unique requirements. Solution
Procurement solicitations (as described in Table 1
above) should challenge SI/consulting firm bidders to
leverage a CSP’s pricing model in an optimal way as
they present pricing in their solicitation responses.
4. Pay-Per Use Utility Model
Incorporating a pay-as-you-go utility model, where at
the end of each month you simply pay for your usage,
is optimal for utilization and resource metrics.
Public sector organizations should also consider how
to optimize their cloud spend via leveraging optional
CSP minimum commitments, such as multi-year
enterprise discount programs and discounted
reserved resources such as Reserved Instances (see
page 9 for information on AWS Reserved Instances).

15. Single Line-Item Structure
 CSPs often have tens of thousands of “cloud CLINs,” a number that is growing rapidly, in
step with CSP innovation.
 Cloud service consumption varies from month to month, so costs can fluctuate. Every time a
customer scales up or down, someone would have to issue a contract modification when, for
example, the instance size, type, or number changes—which would negate the agility
offered by the cloud model.
 A far more effective approach involves using general classes of service with a not-to-exceed
(NTE) ceiling price. Using this kind of single line-item structure for cloud services is a simple,
utility-based approach to leveraging the cloud’s pay-per-use model.
 To demonstrate this single line-item model, it helps to consider the cornerstones of a cloud
environment or cloud migration effort as: (1) Cloud Services (compute, storage, networking,
etc.); (2) Professional or Managed Services; (3) Cloud Marketplace; (4) Cloud Support; and
(5) Cloud Training.

16. One Stop Shopping for Cloud – Building Blocks

17. Keep it Simple:
Example Single Line Item Structure
ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT
1001 Cloud Services 1,000 Each $1 $1,000
1002 Professional/Managed Services 1 Per Week $13,000 $13,000
1003 Cloud Support 1 Per Month $1,000 $1,000
1004 Cloud Training 1 Per Day $5,400 $5,400
1005 Cloud Marketplace 10 Each $10 $100

18. Cloud Service Provider vs Managed Service Provider
displayed in Figure 5.
A cloud service provider is not a systems integrator or managed service provider.
Many public sector customers will require a cloud service provider for their
infrastructure, and outsource “hands on keyboard” planning, migration, and
management work to a systems integrator or managed services provider.

19. Tens of thousands of the world’s largest
technology and consulting companies 3,800+ products across 35 categories
Customers run over 370 million hours of
Amazon EC2 for AWS Marketplace
products
Capitalize on the Cloud Ecosystem

20. http://aws.amazon.com/contract-center/
AWS Public Sector Contracts Page

21. NASPO ValuePoint Public Cloud Hosting
Services https://aws.amazon.com/contract-center/naspo/
• IDIQ (License to Hunt) public cooperative contract
• Master Agreement contract that provides Participating Entities with access to technical
capabilities that run in cloud environments. . . Sub-categories in scope . . . Software as a
Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
• Available through AWS Government Authorized Resellers:
• A&T Systems
• Deloitte
• DLT Solutions
• Emergent
• Unisys
• SHI International Corp.
• Insight
• Strategic Communications
• CSRA
• InfoReliance
• Smartronix

22. State of Texas DIR Contract
• IDIQ (License to Hunt)
• Cloud Broker, IaaS, PaaS
• Out of State Customers eligible to use DIR contracts via the Interlocal
Cooperation Contract
The City of McKinney, Texas has about 155,000 residents and
is located 15 miles north of Dallas. The city’s IT department is
going all-in on AWS and uses the platform to run a wide range
of services and applications, such as its land-management and
records-management systems.
By using AWS, the city’s IT department can focus on delivering
new and better services for its citizens and city employees
instead of spending resources on buying and maintaining IT
infrastructure.

23. Questions?
Thank you!