Wessex Education Shared Services Ltd• VAT ‘Cost Share Group’ • New flexibility in July 2012 Finance Bill • Addresses key constraint familiar from outsourcing & partnership working • A Private Company limited by guarantee • Jointly and wholly owned by its member colleges • Employer of staff: TUPE, pensions etc • Joint procurement and/or development of systems
Cloud: The ‘Next Big Thing’ in IT? 2009 2010 Ready for This? 2011 2012
So what’s the Problem? 30 6 Projects Projects • Email • Developer tools • Storage (disk space) • Office apps • Databases • Content delivery • CRM • Web apps • Backup/DR • Facebook • Azure • Compute (processors, memory) Technology services shared and delivered over the Internet
Business Benefits of Cloud?• Expenditure management • Pay-per-use; shared/managed services; fewer fixed costs; elastic capacity; moving Capex → Opex; enhanced cashflow• Quality improvement • Getting more service/capacity; providing better services to our customers; IT getting out of the way• Innovation and agility • The world changes; IT changes; opportunities change; keeping up with the next big thing!• Focussing on what we’re good at! • Keeping what adds value, outsourcing what doesn’t, adding more value by buying-in just the services we need
Cashflow, ROI, and flexibility In-College Systems In-Cloud Systems Elastic as £k +£k +£k +£k demand growsinvested invested invested invested (or contracts)
Wessex: Strategic Objectives for Sharing Reduce expenditure onadministrative activity across Enhance scale, capacity and our business support capability for continuing services process innovation in business support services Aligning, Standardising and Innovating Processes is the Key
Process Innovation NeedsIT Systems Innovation College C College B College A Building this in the cloud is inevitably going to be easier than trying to maintain multiple installations across multiple college locations!
So what about the Risks?• Our data is somewhere “out there”? • Security; public or private cloud? is the door locked?• Where in the world is our stuff? • Legal jurisdictions? regulatory compliance; data protection? £-$ exchange?• Service Level Agreements • Service/support; uptime guarantees (with financial penalties?); technical support; time zones?• Partners • Trust; reliability• Single point of failure moves elsewhere • JANET connection: capacity/cost; redundancy?All Manageable. But are we losing control…?
Managing the Challenges Ahead… A February 2012 vendor survey of 270 financial directors at Further Education colleges found over half reporting that their top goal over the next 12 months would be cost-cutting and increasing efficiency to cope with central funding cuts. 13% of institutions said they were looking at Shared Services, with a further 11% investigating Cloud-based solutions.