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Public Sector Cloud


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Cloud in a public sector environment is an interesting proposition. In business today there is an over riding pressure to reduce IT costs and in many countries in Europe there is a central “cloud first” policy intended to encourage the adoption of cloud within the Public Sector.

Yet there are concerns about security, privacy and availability of government and citizen data stored off premise in a public cloud entity.

However the technical and commercial flexibility of cloud can offer significant business advantages.

Published in: Government & Nonprofit
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Public Sector Cloud

  1. 1. Simon Greig, Executive IT Architect, IBM Global Business Services May 2015 Public Sector Cloud
  2. 2. About the Author  Simon is an experienced IBM Executive IT Architect with 20 years experience in designing and delivery complex projects  He has been working on complex systems integration projects since 1999 and over the years have been immersed in SOA, ESB and more recently cloud, mobile and agile technologies  Over his career he has delivered projects worth cumulatively about US$2Bn  His current role in IBM is Cloud Leader for the Public Sector business within IBM Global Business Services Europe  This presentation was created following many conversations with clients and colleagues about how cloud applies to the Public Sector  It is one person’s point of view on the subject…! 2 Simon Greig Executive IT Architect IBM Global Business Services Europe
  3. 3. Contents  What do we mean by “Cloud”?  Cloud in a Public Sector Environment  Government Cloud Architecture  Implications of Cloud  Conclusion
  4. 4. What do we mean by “Cloud”? Most people should be on the page by now…but just in case…
  5. 5. Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Definition of Cloud according to NIST * “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g. servers, storage, network, applications and business services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” Delivery Models Deployment Models Automation Virtualisation Standardisation Characteristics On-demand self-service Broad network access Resource pooling Rapid Elasticity Measured service Public Cloud Private Cloud Hybrid Cloud * NIST - National Institute of Standards and Technology Shared Services Off Premise On Premise
  6. 6. Cloud Delivery Models Infrastructure as a Service: • Pre-defined standardised images ready to use Platform as a Service: • Standardised development and deployment platform Software as a Service: • On-demand software to support business processes Cloud Services: • Solutions built upon cloud platforms IaaS PaaS SaaS Services
  7. 7. Cloud Delivery Models IaaS PaaS SaaS Services Relatively self explanatoryMultiple Options
  8. 8. Infrastructure as a Service Options Private Cloud Benefits: • Customisable • Local control & management • Customised security Benefits: • Accessibility • Pay-per-use • Elasticity Public Cloud Benefits: • Match applications to best-fit infrastructure • Balance risk and performance • Meet seasonal capacity without CAPEX Hybrid On Premise Off Premise
  9. 9. Cloud in a Public Sector Environment
  10. 10. Cloud in the Public Sector Environment  Commercial and technical disaggregation  Cost cutting  “Cloud First” government policy  Need an ability to react quickly to changes to policy and/or legislation “Provide better services with fewer resources” Drivers  Security  Data centre location  Data Protection  Aversion to risk  Snowden revelations  US NSA data access  Vendor lock in Concerns  Flexibility  Environmentally friendly  Cost effective  ‘Strength in numbers’ security  Cost benefits through scale  On shore delivery with security cleared staff (mostly) Demands !
  11. 11. Public Sector Cloud Use Cases Public Sector Cloud Use Cases DevOps & Agile Disaster Recovery Web Apps Mobile Seasonal Apps Big Data & AnalyticsPeak Load Processing Managed Apps as a Service Business Support SaaS Channel Shift Shared Services Dev/ Test/ PoC Citizen engagement & Workforce enablement Citizen & employee engagement Reduce DR costs and improve system recoverability Deliver projects faster and more efficiently Outsource management and support of individual applications Encourage users to move away from paper and telephone channels to digital Pay as you go for business supporting software. E.g. HR, education, contract management, procurement, collaboration Periodic spikes in processing load can be offset to a cloud. Seldom used apps (e.g. for compliance) can be made dormant to reduce costs when not needed Reduced costs through elastic storage and compute Offer common services across government departments and agencies in order to improve efficiency and reduce costs Rapid provisioning of dev & test environments that scale up and down with the team. Fast start, low entry cost for PoCs and Pilots.
  12. 12. System “Cloudiness” Regulated Open FlexibleInflexible Systems with Highly Sensitive Data Regulated Systems Systems with Consistent Workload Batch processing Social Business Mobile DevOps Front Office / Desktop Web Applications Customer Service HR Management Dev & Test Disaster Recovery Data Archive Systems with Variable Workload Big Data & Analytics Pilot / POC Legacy COTS Middleware Based Systems Systems with Complex Integrations Collaboration Mature Systems ERP CRM Good fit for cloud
  13. 13. System “Cloudiness” Regulated Open FlexibleInflexible Systems with Highly Sensitive Data Regulated Systems Systems with Consistent Workload Batch processing Social Business Mobile DevOps Front Office / Desktop Web Applications Customer Service HR Management Dev & Test Disaster Recovery Data Archive Systems with Variable Workload Big Data & Analytics Pilot / POC Legacy COTS Middleware Based Systems Systems with Complex Integrations Collaboration Mature Systems ERP CRM Good fit for cloud A large proportion of existing Public Sector systems fall into this quadrant. What do we do with them? Replace with SaaS? Migrate? Transform?
  14. 14. Unlock the Legacy in order to Tap Into the Cloud Ecosystem TransformMigrate Wrapper Migrate the system from dedicated hardware to a cloud infrastructure. Pros: • Offers a simple way to move to an infrastructure rental model at an appropriate tech refresh point. Cons: • Without alternation it is unlikely that the app will be able to take advantage of the benefits (e.g. dynamic scalability) that a cloud platform will provide • Care needs to be given to interfaces and dependent systems to ensure that their performance and operation are not adversely impacted. Leave the application where it is and create a cloud compatible secure API to the app that enables the cloud ecosystem to tap into the data and services offered by the application. Pros: • Existing applications could be cloud ecosystem enabled without the need for large changes to the existing application • Existing interfaces and users are unaffected by the change Cons: • The application remains where it is and merely interfaces to the cloud (might not be a con!) Rebuild the application from the ground up to take advantage of the cloud platform capabilities. Pros: • Applications that take advantage of the platform can be more dynamic and drive a lower infrastructure cost Cons: • Rebuilding the applications is a non-trivial exercise • Applications may be in long term support contracts that make it hard or impossible to rewrite the system Implementation speed Benefits realised from the cloud platform Born on the CloudLift and Shift Hybrid Cloud
  15. 15. Other Alternatives Radically Simplify Retire Where there is a good fit with an off the shelf software as a service product consider a complete replacement Pros: • Most SaaS products offer a per user per month charging model • SaaS offerings are very focussed on what they do and tend to offer significant functional benefits over a roll tyour own solution Cons: • Historic data may need to be transformed and imported to the SaaS provider. This data move will have an associated transition cost • The business process will likely need to change in order to support the way the SaaS product operates. This change will have an associated transition cost • Data integration between SaaS products and the rest of the enterprise may be harder than with a local solution Decommission the system either immediately or at the end of its contract term. Not as unlikely as it first appears as in a large application estate things can fall between the cracks when business priorities change leaving duplication and redundancy between systems. Pros: • Low cost option • Simplify the estate Cons: • Likely to be a very limited number of systems that fall into this category • The likelihood is that *something* will need to replace the functionality SaaS Enablement Turn Off X
  16. 16. Government Cloud Architecture Balancing the Hybrid Aspects of Government Enterprise
  17. 17. SolutionPlatformOptions Government AccessPublic Access Traditional Hosting On Premise IaaS Government IaaS Public IaaS Public PaaS Government PaaS Secure Data G2G Interfaces On Premise PaaS Traditional Platforms Compute Storage Network DevOpsAnalyticsMobile Interaction Data Public Data Infrastructure as a Service Platform as a Service Cloud Services API API Transaction Data Core Business Applications Citizen Interaction Web Apps Citizen Mobile Apps Government User Web Apps Government Mobile Apps Application Services Data Services Secure Access API API G2C Interfaces Public SaaS G2B Interfaces External Ecosystem Government Cloud Architecture Security Enforcement Security Integration Data Integration Data Security Integration Services Service Security Integration Bus Integration Bus Other Channel Apps Other Channel Apps Public API Analytics
  18. 18. Key Messages on the Architecture  Cloud may not be the only answer – Complex enterprises and systems require different solutions for different situations – Non-functional policy and rules may require that the master data is kept local – The secure and dependable integration of legacy systems and data to a cloud platform is key to the success  Unlocking appropriate access to enterprise data creates opportunities – Potential to increase digital adoption or citizen engagement with citizen centric solutions delivered via modern cloud based platforms  Enables “Government as a Platform” – Creating API interfaces into each layer of the application improves separation but also provides fine grained access control – The use of APIs allows for an ‘ecosystem’ approach to system development rather than relying on a single supplier
  19. 19. Implications of Cloud
  20. 20. Cloud Benefits •Deploy new instances in minutes or hours rather than weeks or months •Projects can start much quicker as development and test environments can be stood up quickly •Changes can be delivered very quickly and sometimes automatically Agility •“Safety in Numbers” security •Cloud is a bank vault security concept opposed to a safe in your office. The security controls on a vault are more efficiently delivered with scale Security •Costs of infrastructure, monitoring and support can be much more efficiently delivered •Costs are transparent and the spending controls are much more powerful Economy of Scale €
  21. 21. Cloud Risks • Pay for what you use risks costing a lot of money without governance and controls over the XaaS deployments • The performance difference between physical and virtual may increase software licencing costs Utility Costs • Integrating existing applications into the cloud environment may not provide cost or scaling benefits if the applications are not designed to take advantage • Software licencing from software vendors of migrated applications may not be flexible or elastic to match the hardware • The integration of multiple cloud suppliers with data transfer times/costs and security integration may be non-trivial Integration • Solutions and contracts risk being fragmented which could make SLA and service management a challenge • The more fragmented the environment the greater the data integrity and performance challenges Fragmentation
  22. 22. Scale Up Which Compute Workload Patterns Might Benefit From Cloud? Steady State The application workload is steady state and constant most of the time. Applications that fit this profile are quite rare. Moving an application such as this risks increasing the costs of operating the application. Cloud rental rates tend to be higher than on-premise self build costs. Cloud flexibility benefits may not apply in this case. Daily Variable This application profile is the most typical. Peaks in processing are predictable and occur at similar times each day. It is possible that an hourly cloud rental model could provide a more cost effective platform as extra compute power can be provisioned when needed and only paid for when utilised. = Likely to be a good fit for cloud = May not be a good fit for cloud Annually Variable This application profile is typical of large compliance based systems with an annual deadline. There is a constant background level of use but an annual spike at particular times of the year. Hosting an application such as this on a cloud platform could save a significant amount of money as the extra compute power is only provisioned when needed. On/Off Applications that fit this profile tend to me smaller applications that are only used occasionally and have a few number of users. Hosting an application such as this on a cloud platform could save money as some cloud providers do not charge for compute power when it is not being used. New applications tend to have a user growth – either forced by a roll out programme or unforced as user volumes increase by word of mouth or advertising. A cloud model allows for compute power to be paid for when it is needed. This avoids some of the need for complex business volumes predictions and having to buy peak load hardware many years in advance of when it may be used. Workload Time Workload Time Workload Time Workload Time Workload Time Scale Down Applications that are being phased out or have a declining user base will slowly reduce the need for compute power over time. A cloud platform potentially allows for the infrastructure to be scaled back in line with the users. The scaling back would reduce the infrastructure costs in a way that would be impossible with fixed on-premise infrastructure. Workload Time
  23. 23. Which Storage Workload Patterns Might Benefit From Cloud? AmountofData Time Standard System A steady increase of stored data over time. Cloud storage costs will rise proportionally to the amount of data stored. Cloud will offer virtually limitless storage on demand without a long lead time. Periodic archiving to lower cost storage will reduce cloud storage costs. AmountofData Time Standard Practice Analytics Data is taken on with periodic spikes in data for specific projects. Periodic purging of data that is no longer required will reduce cloud storage costs. = Likely to be a good fit for cloud = May not be a good fit for cloud AmountofData Time Real-time Streaming Analytics Data is streamed through the analytical engine without needing to be stored to disk. A background level of reference data and a small amount of results storage may gradually increase over time. Cloud would provide a very efficient platform for this profile of system. AmountofData Time Leading Practice Analytics Data is loaded for a specific purpose and then removed or archived when no longer needed. The determination of the data that is relevant and the data that can be deleted is key in order to achieve maximum benefit. Cloud would provide a very efficient platform for this profile of system. AmountofData Time Lagging Practice Analytics Data is taken on in large volumes and used for analytics. Data is never purged or archived and builds up over time. Using a pay as go storage model where there is no downscaling risks the medium to long term costs of the cloud storage being greater than the costs of hosting local on-premise storage.
  24. 24. Conclusion
  25. 25. Applying Cloud Technology to Government • ‘Peripheral systems’ (e.g. talent mgt, HR, contract mgt, supplier mgt, CRM) that are not fundamental to the business can be explored to be replaced with an off the shelf SaaS offering • Reduced costs and more efficient working • Unlocking enterprise data and getting it closer to the citizen for less cost and increased flexibility • Promote innovation • Rapidly stand up new environments • Turn on and off environments on demand • Reduce project delivery time • Integrated tooling to automate the build, deployment and test of applications • Reduce time and increase repeatability • More efficient working Unlock Systems of Record Radical Simplification Dev/Test Environments DevOps Automation
  26. 26. Where to start? Infrastructure as a Service Platform as a Service Software as a Service • Business support apps that are completely standard and non-differentiating but yet require costly management • Often offered with very low cost of entry with monthly per user per month prices • Go for citizen engagement applications first (e.g. form filling, mobile app, information sites) • Java/web development productivity improvement • Look for dev/test optimisation to play to strengths of cloud (flexibility, variable cost, short lead time) • Opportunity for Devops platform to improve IT department productivity • Application portfolio assessment looking for ‘low hanging fruit’ to transform to cloud platforms • On-prem or off-prem or a mix? What are the constraints? How do we work around them? • Is the business interested in the cloud technology? Lets assume not, so focus on time to value, reduced project costs, flexible pricing, low entry costs for projects, ability to experiment • Is there potential to reduce run costs estate optimisation through virtualisation and consolidation Where to Start?
  27. 27. Questions?