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
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
