© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Jane Lacy, Senior Capture Business Development Manager, Amazon Web Services

June 21, 2016

Get Started Today with

Cloud-Ready Contracts

Government Agencies and Educational Institutions

Worldwide Use AWS

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What is the Cloud?

Networking

Storage

Servers

Virtualization

Operating System

Middleware

Runtime

Data

Applications

Infrastructure(as a Service)

Networking

Storage

Servers

Virtualization

Data

Applications

Platform(as a Service)

Operating System

Middleware

Runtime

Networking

Storage

Servers

Virtualization

Software(as a Service)

Operating System

Middleware

Runtime

Data

Applications

Provider Responsible Consumer Responsible

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Why Move to the Cloud?

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1. Build a Cloud-Centric Procurement

• Successful cloud adoption flows down from well-built procurement strategies and

cloud-centric contract vehicles.

• Getting procurement ‘right’, will lead to a portfolio of cloud technology and services that

truly realizes the benefits cloud computing offers government agencies.

• Central to the success of cloud procurement is making sure end users have access to

the cloud services they need, when they need them.

• Focus on how cloud computing can benefit agencies and end users, and work

backwards from these benefits – avoiding needless obstacles that could hinder rapid

access to the services users need.

Cloud procurement should be purposively different from existing procurement

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2. Involve Key Stakeholders Early

A successful cloud strategy involves all key stakeholders at an early stage

• Senior executive of organization

• Chief Information Officers (CIOs)

• Program managers and Contracting Officer's Technical Representatives (COTRs)

• Acquisition/procurement specialists

• Directors of IT and mission-critical systems

• IT professionals

• Security professionals

• Legal and policy experts

• Finance and budget staff

• Human Resources (HR) and staff development

• Industry partners

• Academia partners

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3. Ask the Right Questions

You’ll only get what you ask for

• You are not buying physical assets; therefore, you do not need to ask for many things

you are used to asking for in a traditional data center RFP.

• Recycling data center RFP questions will inevitably lead to data center answers, and

may leave cloud vendors unable to bid.

• Make sure you ask the right question to get the best cloud solution.

• Cloud allows you to focus on application-level and performance-based requirements –

there is no need to dictate specific methods, infrastructure, or hardware.

Gartner “Magic Quadrant for Cloud Infrastructure as a Service, Worldwide,” Lydia Leong, Douglas Toombs, Bob Gill, May 18, 2015. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available at http://aws.amazon.com/resources/analyst-reports/. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

3.1. Analyst ReportsUse third-party analyst reports during Cloud Provider evaluations

4. Separate Infrastructure from Services/Labor

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• Cloud IaaS/PaaS

• Training

• Support

• Marketplace

• Requirements Analysis

• Strategy & Roadmap

• Solution Design & Architecture

• Application Development/Support

• Tech Review & Audit

• Implementation/Migration

• Governance

• Security

• Billing & Account Management

• Program Management

• Service Desk

Cloud Service Providers

Resellers, System

Integrators, Managed

Services

Public Sector

Customers

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4.1. The Cloud Ecosystem

5. Security Is a Shared Responsibility

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Security expertise is a scarce resource; Cloud Providers oversee the big picture,

letting your security team focus on a subset of overall security needs

5.1. Architected for Government Requirements

Cloud Providers should have certifications and accreditations for workloads that

matter to public sector customers

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6. Utility Pricing Model

Build an acquisition model for the on-demand, pay-as-you-go nature of cloud

computing

• Traditional IT pricing approaches can reduce or eliminate benefits of cloud.

• Accept different vendor pricing models – do not create single pricing model.

• Embrace on-demand, utility-like, OpEx model cloud pricing.

• Understand cloud provider tiered pricing, and reserved pricing (such as AWS's

Reserved & Spot Instances), to budget for estimated usage and reduce expenses.

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7. Tech Refresh/InnovationPace of innovation and continuous service improvements are a major reason

why more and more public sector customers are moving to the cloud

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8. Cloud Governance

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9. Acquisition Regulations

Cloud computing should be purchased as a commercial item and/or services

• Broadly speaking, a commercial item is recognized as an item that is of a type that has

been sold, leased, licensed, or otherwise offered for sale to the general public.

• In order to maximize the benefits of cloud computing, commercial terms should govern

the contract.

• Successful cloud procurements recognize that Cloud Providers are not providing

custom-built deliverables, and that the benefits of cloud stem from operating at a

massive scale.

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10.Terms and Conditions

Avoid recycling terms and conditions from traditional datacenter procurements -

this may lead to decreased Cloud Provider competition and loss of cloud benefits

• Physical Data Center Tours, Audits, and Access

• Physical Separation of Data, Assets, and Infrastructure

• Customization of Services to Interoperate with Legacy Systems

• Mandatory Flow Down of Business Terms and Conditions not Required by Statute

• Prescribed Data Center Personnel Background Checks

• Prescribed Infrastructure and Machines

• Fixed Service Terms and Pricing

• Small Business Subcontracting Plan

• Termination Assistance – Government can Terminate at any Time

• Rights in Data – Government Owns and Controls all Their Data

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A Menu of Cloud Capabilities

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Single Line Item Structure

Example from a U.S. Government Agency Task Order

MINIMUM GUARANTEE AND MAXIMUM SPEND: Because it will be impossible for the [Govt customer] to determine

exactly how much labor to be delivered by the reseller, and what volume of a specific Cloud Service Provider’s

resources will be consumed over a period of time, for the purposes of this delivery order, orders will be specified as fixed

price unit quantities of a single ordering CLIN for “Cloud Services and Ancillary Labor”.

Each unit of the CLIN ordered will equate to $50,000.00 worth of Cloud Services and Ancillary Labor. Orders will be

placed periodically for various quantities of $50,000.00 CLIN units based on the [Govt customer’s] estimated usage of

cloud services and associated labor. This arrangement will provide [Govt customer] with the flexibility to pre-order

“$50,000.00” units of “Cloud Services and Ancillary Labor” as necessary to support operations and to remain consistent

with cloud computing “pay as you go” commercial practices.

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Next Steps

Committing to a cloud-first strategy sends an important message that cloud is

indeed the new normal in the public sector, and here for the long-term

• Understand and Evangelize the Benefits of Cloud within your Organization. Work

backwards from these benefits to envision your ‘ideal cloud end state’, so that

customer and end user needs drive the effort.

• Engage with Partners. Having consulting and technology partner support in place

makes it much easier to deploy, adopt and/or shift workloads to the cloud.

• Engage with Industry. Facilitating discussions with Cloud Providers, Solution

Architects, and Business Development teams ensures that government and industry

are on the same page in respect to how cloud technology and procurement is evolving.

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Finally: Do a Pilot

Conduct iterations of small acquisitions through desired vehicles, mechanisms

and processes

• Find out quickly what works and doesn’t work, fix it in the next iteration, and try again.

• The benefit of cloud is that the cost of failure is close to zero. It may take several

attempts to perfect pilot acquisition, technical integration, business processes, and

security approaches in tandem.

• Establish a contract mechanism that is task performance-based/oriented, with a single

line item structure that provides for a range of services; with Not-To-Exceed controls,

and language associated with inclusion of governance processes.

• Incorporate regulatory guidelines to enable expansive on-boarding; with consideration

of various funding types and applicable delegated authorities.

Contract Pathways to Procure AWShttps://aws.amazon.com/contract-center/

AWS Public Sector Contracts Page

http://aws.amazon.com/contract-center/

• IDIQ (License to Hunt) available to federal, state, local, and tribal entities

• On April 29, 2015, GSA added Cloud Special Item Number (SIN) 132-40• 132-40 Cloud Computing Services• 132-52 Electronic Commerce and Subscription Services

• Available through these AWS Government Authorized Resellers: • Accenture Federal Services

• A&T Systems - 8(a) - Minority Owned (holds Cloud SIN)

• Apptis, Inc

• Aquilent

• Cloudnexa

• DLT Solutions (holds Cloud SIN)

• Four Points - SDVOSB - Service Disabled Veteran Owned

• InfoReliance Corporation (holds Cloud SIN)

• JHC Technology - SDVOSB - Service Disabled Veteran Owned

GSA Schedule 70

• GWAC (end to end IT solution contract); available to all federal agencies

• Scope: IT products and product-related services, including Cloud Computing

• Available through these AWS Government Authorized Resellers:• Accelera (small business)

• DLT Solutions (small business)

• Four Points Technology (SDVOSB)

• Insight Public Sector

• Strategic Communications (small business)

• Unisys Corporation

NASA Solutions for Enterprise-Wide Procurement V

(SEWP V)

NASPO ValuePoint (formerly WSCA-NASPO)

Public Cloud Hosting Services

• IDIQ (License to Hunt) - public cooperative contract

• GIS Cloud Hosting Services

• General Cloud Hosting Services

• Consulting and Design Services

• Available through these AWS Government Authorized Resellers:

• Day1 Solutions

• Unisys

• ESRI

State of Texas DIR Contract

• IDIQ (License to Hunt)

• Assessment, Cloud Broker, IaaS, PaaS

• Out of State Customers eligible to use DIR contracts via the Interlocal

Cooperation Contract

• Available through these AWS Government Authorized Resellers:

• DLT Solutions

• Avosys

• Vintage IT

• DoubleHorn

• General Dynamics

Questions?

Thank you!