© 2017 VMware Inc. All rights reserved.

2018 VilniusDarius Spaičys

Accelerate Digital Transformation

EMEA Public Sector IT Market

4

EMEA North Central Southern

158 Bio Euros 52 % 24 % 24 %

Central and Local Healthcare Defense Security Education

64 % 20 % 15 % 6% 5 %

= CAGR 2020 7 % CAGR 2020 1.2 % ? CAGR 2020 7.2 % CAGR 2020 - CAGR 2020

USA : 186 Bio Euros

Our alignment 12 % 15 % 5 % 5 %

Source : Gartner 2016

EMEA Government Sub Segments

Federal

Central

AdministrationDefense

Transportation

Postal

Utilities

NATO, EU, EDA

UN Agencies,

Urban communities

Rural communities

Rail, Road, Air, Sea

Infrastructure

Public transportation

Contracting

Education &

Research

Patient pathways

Networked providers

Privacy

Border Control

Law Enforcement

Crisis resolution

Natural disaster

Contracting

Security

International

Government

Organisations

Intelligence,C3 systems

Cyber Defense

International operations

Contracting

Student e-books

Virtual university

Land management

Subsidies management

Natural parcs

Food trackingSocial Security

Pensions

Welfare

Finance

HR

Healthcare

Local & Global

Communities

Social

Agriculture

Regalian missions

What is new for the Public Sector

6

• Recovery from the 2008 financial crisis – still?!

• The focus on financial balance has not resolved pre existing issues, additional have surged• Defense• Security• Migrations• Democratic divide• EU Regulatory Framework (NIS, GDPR, e-Communications)

• Modernization of Government is a must• Societal change and issues• Cost effectiveness• Cooperation and Smart at Security and Defense

• Digital transformation is an opportunity, models are in becoming

• VMware is recognized to deliver a Vision and technology Solutions

• Successful implementations are within an established IT Governance model (ie Estonia, Slovenia)

EMEA Public Sector Trends

7

ORGANIC

• Work force; - 20 % by 2022• Costs to produce services• Pension systems costs• Revert to contracting (utilities, transport)• Legacy systems and applications• Mobility and optimized use of resources

ENVIRONMENT

• EU treaty; budget deficit• Societal change, democratic divide • Aging population, Pensions, Health, • Youth unemployment vs pensioners• EU Digital regulations• Outbound Defense, Security, Migrations

Challenging factors

GLOBAL IMPACT

• Economic Policy and Performance• Drive all populations inclusion• Grey economy• Sustain social and healthcare model • Cooperative Border Protection• Enabling Smart Defense Coalitions

DIGITAL TRANSFORMATION

• Networked permissive e-Government • Services delivery costs optimization• Enforce data security and privacy• Re build citizen trust• Reduce fixed costs• Agile, cooperative Defense & Security

Government Costs to Produce Services as a % GNPCosts optimization is not there yet

8

18,7

21,9

14,4

21,3 21,6

26,6

22,7

27,728,8

31

29,430

27

31

23,4

21,320,4

22,9

0

5

10

15

20

25

30

35

% GNP

USA UK Irel Ital Spain Bel Ger Fra Neth Fin Dnk Swe Nor Lith Est Lat Pol OECD Avgr

Source OECD –Government at a Glance 2017

Citizen Experience with e-GovernmentMuch progress needed

9

The Highest Risk : Democratic DivideRe establish Citizens Trust

10

Indicator

E-Citizen Centric Curve

Web

e-Government

e-Citizen

Digital Citizen

Departmental

transactions

Informational • Trust Framework

• Transparency

• Ubiquity of quality information

• On any device, any time

• Value added applications

• Ease of use

Integrated

Transactional

Digital Society

Policy Drivers to Digital Government

14

Digital Government is an evolution of the governance model derived from a general model of society, aligning with societal change underpinned by permissive technologies

Governments have a unique position; they have to serve all people equally, including the ones in inaccessible places or with debilitating conditions, at the margins of society, and ensure privacy. Migration to Digital is an enabler to Governments’ missions fulfillment

For governments the failures to evolve could mean an accelerated loss of trust and a perception that it is out of touch with societal and technological trends

For the Policy Makers and the Institutions, it is an opportunity to resolve the Democratic Divide or Citizens participation crisis.

Barriers to Government Digital Transformation

• By nature Government is risk adverse

• Control and sovereignty; first move is private on premise

– Make or buy open source

– What is the most compelling argument vs open source ? Sovereign ministries adopting our technologies ?

• Legal framework and Data Privacy laws (GDPR and NIS)

• Lack of analysis of data sensitive domain vs non sensitive

• Perception that non national private service providers make the market (AWS, IBM)

• National service providers have a key role to play that we need to leverage in a programmatic manner

• Formulation of benefits of Hybrid Cloud vs all private and on premise

– Are benefits driven by functional deployments ?

– What does it bring to the Policy Makers ?

– What are the opportunity costs and opportunity risks of not leveraging a Hybrid Cloud service architecture ?

16

The Corner Stone : Citizens’ Trust

The Digital Citizen becomes the central player as a Participative Citizen with the ability to influence, report, interact in real time.

His/her trust will reside in the formulation and application if his/her data privacy, underpinned by data security.

The challenge is the explosion of data and information derived from the Digital Citizen activities and connectivity

through devices

What do you think ? is a SMART City a circle of trust ?

Who should know where data pertaining to the Digital Citizen physically reside ?

Who owns the data and information pertaining to citizens activity ?

How is Citizens ‘ consent managed ?

INTERNET OF THINGS

DATA ANALYTICS

EDGEARTIFIFICAL INTELLIGENCE

Data Security and Privacy

Government Digital TransformationSovereignty and Security, Data Privacy

18

Sovere

ignty

HighLow

Private

cloud on

premise

Public

cloud

Private or

Public

outsourced

High

Low

Private

outsourced

GDPR and NIS compliance are enablers

Certified Electronic Health Records service providers

Sovereignty & Data Sensitivity are driving the models

Government Public Cloud Acceptance Matrix

19

Data

sensitivity

Min Finance Social Affairs Healthcare Defense Law Enforcement

Low Procurement Procurement Procurement Day to day

Procurement

Procurement

Medium Recruitment Recruitment Recruitment Recruitment Recruitment

High Tax information Registration Appointment Logistics &

Contracting

Communication network

Tax returns Claim Benefits Back office shared

Services Centers

Field Medical Case management

Tax payment Benefits Electronic Health

Records

C3 systems Criminal data

Real estate

management

Real estate

management

Real estate

management

Real estate

management

Real estate management

Budget management

& performance

Budget

management &

performance

Emergency Medical

Services

Equipment

Maintenance

Contracted or not

Fleet management

Assets Management Assets

Management

Fleet management &

contracting

Military Base services

(food, laundry, etc…)

Convicts management

Human Resources Human Resources Health network point of

care services

Human resources Court management

Segment cloud applications between cloud native and public cloud applicationsbased on data sensitivity and sovereignty index

Empower Digital

Workspaces

Transform

Security

Modernize

Data Centers

Integrate

Hybrid Clouds

Staged and agile roll out of

enhanced cost effective

transactional applications

through virtualisation

Risk manage deployment of

applications through segmented

workloads

Automated applications update

over projects life cycles

Regain sovereignty and control

through G Cloud

Increase agility and costs

effectiveness by segmenting non

sensitive applications to roll out

through Public Cloud

Risk manage through reversibility,

enforce sovereignty

Scalable resources

Fulfil mission delivering citizens

privacy and increase trust

Deliver critical infrastructures

continuous services

Contain cyberattacks

Non data intrusive security

End to end network security

Agile and quick deployment of

services on any device, accessible

anywhere embracing all

constituents

Trial and Run approach to citizen

centric services roll out

Increase Citizens’ engagement

Address Democratic Divide

FROM VISION TO REALITY

Ačiū!