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October 6, 2009 GovTech Summit 2009 2
INTERNET AS CLOUD
• The Internet has been represented as a cloud right since it was conceived in the Sixties.
• “We always drew networks as amoeba-like things.” --Vint Cerf
• “As this Internet was being conceived, … some used cloudlike sketches to represent the Internet itself.” --Bob Taylor
October 6, 2009 GovTech Summit 2009 3
CONSIDER• Schlage LiNK,
http://consumer.schlage.com/LiNK/product_tour/default.asp
• PRO: Flexibility. Scalability. No single point-of-failure. More professional? Cost?
• CON: Ownership? Subscription termination? Privacy? Bandwidth? Addressing? Exit strategy? Security? Malware for the deadbolt?
October 6, 2009 GovTech Summit 2009 4
WHAT IS CLOUD COMPUTING?
Beyond the hype, some characteristics:• Commoditized service• Appears personalized or branded• Delivered via the Internet• Rented/leased (not owned)• Zero fixed cost• Per-unit pricing• Dynamically scalable & elastic
October 6, 2009 GovTech Summit 2009 5
IS IT CLOUD COMPUTING?• Purchasing from Drugstore.com?• Using Hotmail?• On-premise application?• On-premise infrastructure?• Schlage LiNK?• Internet store that uses
Amazon as the backend?• Timeshare on a supercomputer?
October 6, 2009 GovTech Summit 2009 6
A LOT TO THINK ABOUT• What is it that you do best? Why do
you want to keep the rest?• Capital expenditure vs. pay-go?• Legal residency requirements? PII?
Discovery turnaround time?• Owned property vs. rented/leased• KPI -> SLA• Service disruption• Client devices (here to stay)• Degree of customization
October 6, 2009 GovTech Summit 2009 7
MORE TO THINK ABOUT
• Helpdesk• Interfaces• Pipe size• Traffic shape• Legacy data assets• Legacy software assets• Legacy hardware assets• Exit strategy• Internet outage
October 6, 2009 GovTech Summit 2009 8
VARIOUS FLAVORS
• Vertical slicing: software, platform, infrastructure
• Horizontal slicing: private cloud, government cloud, public cloud
• Vendors position themselves opportunistically: http://blog.appirio.com/2009/03/cloud-computing-next-evolution-or.html.
October 6, 2009 GovTech Summit 2009 9
IN-HOUSE I.T. STAFF• Focus shifts from keeping the
engine running to solving actual business problems.
• Focus shifts from administration to governance.
• Creates new opportunities to collaborate more directly with the business.
• Cloud or not, adaptability and willingness to acquire new skills remain the most prized assets.
October 6, 2009 GovTech Summit 2009 10
COSTS• Short Term: Depending on the
complexity of the transition, costs may actually go UP.
• Medium Term: Beyond the transition, costs will likely go DOWN.
• Long Term: At current level of competition, costs will likely remain low. Excessive consolidation may change the competitive landscape and drive costs back UP.
October 6, 2009 GovTech Summit 2009 11
DYNAMIC SIZING• Scalability: Seamless capacity
provisioning for variations in demand (spikes and dips)
• Elasticity: On-demand scale-up and scale-down in granular steps
• Operationalize capital expenditure via predictable, periodic outlays through an installment plan.
October 6, 2009 GovTech Summit 2009 12
GARTNER ON CLOUD EMAIL
GARTNER LEADER’S TOOLKIT 23
23
Tens of Millions
Lights Out
$24/User/Year
DAS
$3.75/GB/Year
6GB
No
Thin
The Consumerized/Socialized Internet in the Game: Cloud E-Mail vs. On-Premises E-Mail, Circa 2012
On-Premises CloudScale
Ops Model
Cost
Storage Type
Storage Cost
Storage Amount
Tape Backup
Client
5,000 to 10,000
Higher-Touch
$120/User/Year
SAN & DAS
$25/GB/Year
500MB
Yes
Fat
October 6, 2009 GovTech Summit 2009 13
GOVERNMENT IN THE CLOUD• Federal: USA.gov (claims 90%
infrastructure cost reduction); Apps.gov
• Maine: MaineCare claims payment; Campground reservation; Central voter registry? Financials? HR? Private cloud data center?
• North Carolina-Apple data center• Michigan public cloud• Google Government Cloud: FISMA and
SAS 70 compliant by 2010
October 6, 2009 GovTech Summit 2009 14
SUMMARY: PLUSES• Cost containment, pay-go• No maintenance or upgrades• Focus on actual solutions• Scalability and elasticity• Rapid deployment• Greener (financial impact)• More robust: security, fault-
tolerance, backup, recovery, archiving, discovery, etc.
October 6, 2009 GovTech Summit 2009 15
SUMMARY: MINUSES• Pipe constraints?• Rough transition: Data loss?
Service disruption?• Poor service? Inadequate contract?
Relationship management overhead?• Data residency? PII? Discovery?• Broken customization & interface?• Transition for in-house I.T. staff?• Difficulty in changing providers ->
Effective lock-in and monopoly?