office 365 public sector buyers guide
TRANSCRIPT
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Public Sector Buyers Guide for office productivity in the cloud
A Microsoft U.S. Public Sector Solutions Guide
March 2011
Cloud Decision Guide
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This document is provided as-is. Information and views expressed in this document, including URL and other Internet website references, may change without notice. You bear the
risk of using it.
This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference
purposes.
2011 Microsoft Corporation. All rights reserved.
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ContentsUsing the cloud in the public sector ..................................................................................................................................................... 1
Step 1: Determine your on-premises vs. cloud balance ................................................................................................................ 2
Step 2: Choose your cloud ........................................................................................................................................................................ 4
Step 3: Assess your workloads................................................................................................................................................................. 6
Step 4: Compare the services ................................................................................................................................................................... 8
Step 5: Assess risk and security ............................................................................................................................................................... 9
Next steps ..................................................................................................................................................................................................... 11
List of tablesTable 1. Considerations when comparing on-premises vs. cloud computing ..................................................................... 2
Table 2. Benefits of cloud messaging and collaboration services ............................................................................................. 3
Table 3. Summary of Microsoft Online Services SLA ...................................................................................................................... 5
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Using the cloud in the public sector
Looking for innovative ways to do more with less, governments of all sizes areturning to cloud computing as a key way to save money.
For example, the United States Department of Agriculture (USDA),ithe States of California
iiand
Minnesota,iii
and New York Cityiv
have all recently chosen the Microsoft cloud computing platform
because of the way it provides enhanced IT services, such
as email and other business productivity applications, in a
standardized and predictable way. Compared to traditional
systems deployed on-premises, cloud computing can offer
significant cost reductions and better support for disaster
recovery and mobility efforts, such as teleworking.v
Cloud computing refers to sourcing information andcommunications technology services over the Internet on a
pay-as-you-go basis. In the last few years, the topics of
cloud computing and software as a service (SaaS) have
dominated the IT landscape. For citizens, SaaS
applications in the cloudtranslates into a more
connected world where they can access their data and
information at virtually any time from just about anywhere.
For the public sector, SaaS provides compelling benefits,
from improved worker productivity to faster delivery of
new services.
Microsoft has been in the forefront of the cloud revolution
for more than a decade. Today, the companys cloud
includes top global enterprisesvienergy companies,
telecom firms, banks, and pharmaceutical giantsin
addition to more than 500 state and local governments in
the United States.vii
The latest cloud service is Microsoft
Office 365, which includes Microsoft Exchange Online,
Microsoft SharePoint Online, Microsoft Lync Online, and
Microsoft Office Professional Plus.
With a long-standing commitment to the cloud, Microsoft
understands that public sector institutions face uniqueregulatory requirements. This guide is designed to help
you adopt the cloud solution thats right for your needs.
Based on numerous conversations with our customers, the
guide features common buying criteria and answers to
frequently asked questions about cloud solutions.
Cloud applications in the public
sector
A cloud computing infrastructure can
deliver one application to many users,
regardless of their location, rather than
the traditional model of one
application per desktop. Cloud
activities are managed from central
locations in a one-to-many model,
including architecture, pricing,
partnering, and management
characteristics. In addition, the cloud
provider handles software updates for
you. These attributes make the cloud a
cost-effective option for government,
education, and health care groups.
In the public sector, the cloud iscommonly used for:
Email and instant messaging. Desktop productivity, such as
document creation and sharing.
Public records tracking. Collaboration and presence. Payment processing.
Identity and relationshipmanagement.
User services delivered through theweb, such as e-government projects
and school portals.
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Step 1: Determine your on-premises vs. cloud balance
The choice to move to the cloud is not an all-or-nothing proposition. As you weigh your options, youcan start by comparing traditional computing on-premises to cloud computing. A key differentiator is
control. In general, traditional, on-premises computing solutions give you complete control over your
assets with all the overhead and expenses that the scenario implies. The cloud computing model asks
you to relinquish some control and potentially share assets in exchange for greater scalability, rapid
deployment, and reduced costs. Most organizations use a hybrid approach.
Your solutions can span on-premises and cloud environments. That way, you can preserve your
current IT assets while investing for future needs. Table 1 shows a few fundamental differences
between the two models to help you begin the selection process.
Table 1. Considerations when comparing on-premises vs. cloud computing
On-
premises
Hybrid Cloud
Heterogeneous
infrastructure
Homogeneous
infrastructure
Capital expense Operating expense
Own Lease or rent
Self-managed Third-party managed
Cycle in years Cycle in months
On-site Off-site
Built for peak demand Changes based on demand
Decision point: What is your priority?
If your goal is to shift more of your IT cost center from a capital expense to an operationalexpense, the pay-as-you-go SaaS model is a good choice. However, if your organization
requires direct control over physical assets and operational personnel, a solution on-
premises may work better for you.
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Microsoft offers solutions that let you enjoy the benefits of the cloudlower IT costs, enhanced
collaboration, and ease of accesswith the applications you already know and trust. Table 2 takes a
closer look at how the cloud can benefit public sector organizations.
Table 2. Benefits of cloud messaging and collaboration services
Considerations Cloud benefits
Infrastructure Replaces heterogeneous IT platforms and legacy infrastructures, whichoften operate as data silos, with a unified platform.
Supports geographically distributed teams and mobile workers with asingle infrastructure in the cloud.
Business model Helps simplify budgeting, because the clouds all-inclusive pricing modelseliminate the need to estimate hardware, licensing, service, and support
fees separately.
Can replace capital expenditures with a more predictable monthly servicefee.
Availability Provides network-based access to applicationsemail, documents,contacts, calendars, and morefrom virtually anywhere on almost any
device.
Supports predictability and flexibility for all or part of your organizationwith pay-as-you-go pricing options.
Management Offloads operational maintenance of the services, thus reducing youradministrative overhead.
Includes business-class features, such as IT-level phone support, a servicelevel agreement (SLA) of 99.9-percent uptime,viii geographic redundancy,
and disaster recovery.
Technology updates Deploys updates seamlessly so you dont need to manage softwaredeployment processes.
Scale Accommodates peaks and valleys in demand automaticallyand you payonly for what you use.
Reduces capital and operational expenses associated with equipping andmanaging data centers to serve peak capacity periods.
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Step 2: Choose your cloud
Just as the public sector encompasses many different organizations and missions, the cloud is not asingle entity. Messaging and collaboration needs vary, and so do cloud models.
Microsoft hosts business productivity tools in three ways:
In a public cloud. When software and services are hosted in a data center shared by manysubscribers and operated by a commercial entity, it is called apublic cloud. For example, the City of
Plano, Texas, uses Microsoft Business Productivity Online Suite (BPOS) to provide employees with
online access to email messages, calendar and task items, and shared documents.ix
Microsoft
Online Services hosts several government solutions in this way, and the latest is Office 365, the
next generation of BPOS communication and collaboration products and services.
In a dedicated cloud. This solution hosts applications and services within a separate, securedhardware infrastructure dedicated to a single customer. Microsoft Office 365 Dedicated with ITAR
and BPOS for Federal work this way and are designed to meet the enhanced security needs of the
U.S. government, including state and local governments, government contractors, and other
entities that require this level of security. For example, the USDA has chosen to provide email,
document sharing, and other collaboration tools in this manner.x
In a private cloud. This solution hosts applications and services within your own or a partnersdata center that you manage, giving you a high degree of operations control, enhanced security,
and data sovereignty. The U.S. Defense Information Systems Agency (DISA) delivers Microsoft
Office applications from a private cloud. The U.S. Army is a tenant.xi
Cloud models from Microsoft
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In the cloud, you put your trust in the providers ability to deliver the level of service you require.
Table 3 summarizes the SLA you can expect from Microsoft Online Services.
Table 3. Summary of Microsoft Online Services SLA
Service type Microsoft dedicated and public cloud data centers
Security Data centers continuously strive to meet or exceed U.S. federal
government and international security body standards.
Secure Internet protocols include HTTPS and HTTP over SSL to access yourservices.
Data centers and services are managed by rigorously screened and highlytrained staff.
Reliability and
availability
99.9-percent uptime Service Level Agreement.
Provisioning You can adjust your deployment model dynamically as your needs shift and
grow.
Customer support Support is available 7 days a week, 24 hours a day.
Disaster recovery Data centers are outfitted to operate during power outages and after
natural disasters.
Redundant network architecture is capable of disaster recovery.
Microsoft replicates data from its primary data centers to secondary datacenters for redundancy, without storing any data off-site.
Decision point: Where are the hosting facilities?
If a cloud service provider uses a data center located outside the United States, you need
to know which law applies to your institution's datathe law where you are located or the
law where your data is located. Export control laws may also apply to your data. If your
data must be stored within the United States, Microsoft has primary and backup data centers in theUnited States to help ensure reliability and failover for government customers.
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Step 3: Assess your workloads
Another way to evaluate cloud computing versus traditional computing models is to assess yourworkloads. Using the public cloud for pay-as-you-go services like email can reduce your total cost of
ownership by lowering the need for infrastructure, maintenance, and management. However, privacy
or compliance concerns may require you to keep sensitive data, such as human resources (HR) data,
financial databases, or proprietary business intelligence (BI), on-premises, whether in a traditional data
center or a private cloud.
In addition, hybrid implementations can be a good option. That is, your solution can span on-
premises and cloud resources. For example, you can move email or your communication and
collaboration stack to the cloud while keeping financial applications and other sensitive workloads
on-premises.
You should also consider how much customization you require. For standard business productivity
workloads, public cloud solutions like Office 365 offer the tools you need. For custom-tailored
solutions, you can develop applications on-premises or using cloud services. For example, the City of
Miami created the Miami 311 application to record, track, and report on non-emergency incidents.
Developed using the Windows Azure platform of cloud application tools, Miami 311 is also hosted by
Microsoft, which gives the city greater scalability than they could achieve in their own data center.xii
Our top three workloads in the cloud for the public sector
Email and collaboration Websites and
public domain data
Public records and
correspondence management
Decision point: Customization in the cloud
A public cloud solution should allow you to modify the workflows of applications and
services to suit your business processes. Dedicated and private clouds typically offer a
greater degree of customization and integration of services than do public clouds.
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How workloads are hosted in cloud architectures
From private, self-hosted clouds to dedicated clouds to
public clouds, cloud data centers rely on multi-tenant
architecture to deliver services efficiently and affordably.
Multi-tenantmeans that individual applicationsthe
tenantsshare data center resources in the cloud.
Public clouds use higher degrees of multi-tenancy, which
enable you to deploy services rapidly and provide
immense scalability for your users. Thats why youll find
common productivity workloads, such as email, messaging,
and collaboration, in public clouds.
By comparision, dedicated and private cloud data centersgive you the greatest flexibility in customization and add-
on services for your workloads.
Decision point: Application performance
If you run bandwidth-intensive applications that require lower latency and packet loss
than your Internet provider can deliver, you probably dont want to use the cloud for that
workload. A high-performance infrastructure on-premises may be preferred and could be
integrated in a hybrid cloud model for the agency.
Microsoft core cloud principlesIn delivering cloud services to the
public and private sector, Microsoft
follows these core principles:
You are the owner of your data.Microsoft tells you where your
data is.
Microsoft will never use the datahoused in its cloud for data-mining
purposes, nor does Microsoft
monetize your data via advertising.
Microsoft Online Services usesmultiple layers of industry-
recognized security controls and
multiple technologies as part of
its strategy for defense in depth
and breadth.
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Step 4: Compare the services
Before moving users and services to the cloud, you need to know whether your key requirements willbe met. Are there potential roadblocks to be aware of? Public sector organizations need to pay
attention to regulatory compliance, in particular. Another consideration is the feature set you receive
in the cloud. If your organization currently uses custom features or add-on services, you need to know
whether equivalent features are available from your hosted service.
Decision point:Is your organizations current IT structure centralized?
Even if your IT platform is not based on Microsoft technology, the journey to a Microsoft
cloud data center goes more smoothly when your existing IT resources are already
centralized. Youll encounter fewer policy and organizational hurdles.
Regulatory requirements
Office 365 services are built to meet both government and commercial regulatory requirements and
have additional security features, such as two-factor authentication. Each agency has unique needs,
though, so please contact us to discuss your specific agency requirements and accreditations.
Decision point: Will legal requirements be met?
Microsoft data centers help preserve the chain of custody for 20 different document
formats, including XML Paper Specification (XPS), Portable Document Format (PDF) 1.5,
PDF/A, and Open Document Format (ODF) v1.1. When moving these types of documents
between Microsoft on-premises and cloud services, documents retain the format and fidelity neededto comply with the requirements of the Federal Records Act, the E Government Act of 2002, Freedom
of Information Act (FOIA), and the implementing regulations issued by the National Archives and
Records Administration (NARA).
Feature requirements
Are you using features, add-ons, or services in on-premises deployments that you want to ensure are
also available in your cloud-hosted software? Make sure you verify whether the custom forms or add-
on services that you use today are also available from the cloud service. Public and dedicated clouds
can differ in the type of features they offer, even when the services are based on similar software.
Decision point: Will one size fit all in your organization?
You may need to meet the unique requirements of individual user groups, such as kiosk
workers who do not typically work at a desk or information workers who do. Microsoft
Online Services allow your agency to choose an appropriate mix of services without
requiring you to over-provision to meet specific agency needs.
http://www.microsoft.com/industry/government/products/contactus.mspxhttp://www.microsoft.com/industry/government/products/contactus.mspx -
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Step 5: Assess risk and security
Probably no cloud computing topic gets more attention than security. Whether you are protecting assets on-premises or in the cloud, you need to assess the technologies and methods used for user authentication,
data transfer encryption, data storage, server security, and the security of data center facilities.
Furthermore,no discussion of security is complete without an assessment of your institutions risk tolerance.
Microsoft Online Services, including BPOS, uses multiple layers of security controls and multiple
technologies as part of its strategy for defense in depth and breadth. Currently Microsoft has controls,
contractual verbiage, and features in place to help your organization comply with a wide variety of
industry standards and certifications. These include but are not limited to:
International Organization for Standardization (ISO) 27001. Statement on Auditing Standards (SAS) 70 Type I (BPOS-S) or Type II (BPOSD and Global
Foundation Services).
Health Insurance Portability and Accountability Act (HIPAA). Family Educational Rights and Privacy Act (FERPA). Title 21 CFR Part 11 of the Code of Federal Regulations. Federal Information Security Management Act of 2002 (FISMA) Authorization to Operate (ATO) for
Microsoft Cloud Infrastructure. The ATO covers the Microsoft cloud infrastructure that provides a
trustworthy foundation for the companys cloud services.xiii
Business Productivity Online Services-Federal has also received FISMA certification andaccreditation resulting in an official ATO, which includes Exchange Online, SharePoint Online, and
Office Communications Online.xiv
Data protection and risk management best practices
Computing in the cloud can raise legitimate questions about security and data protection. Many
public sector IT managers have come to recognize that Microsoft data centers help protect data at a
standard higher than they could achieve on their own. In using private, dedicated, or public clouds for
your messaging and collaboration needs, however, you can further extend your own security controls
and processes:
Manage riskthrough a comprehensive program that encompasses security, privacy, servicecontinuity, and compliance management.
Use multiple layers of physical and logical security controls and multiple technologies. Align risk management controls and practices with recognized standards, such as ISO 27001
and SAS 70, and periodically validate your controls and practices through third-party certification.
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Data privacy in the cloud
Decision point: Is data encryption enough?
Some regulatory or security issues may prevent you from hosting even encrypted data in
a public cloud. A private cloud may offer an alternative if you still want to take advantage
of cloud benefits.
When you entrust your data to someone elses data center, your need to know how that data is
collected, used, and stored. In a Microsoft data center, your data is handled at an operational level
and processed as part of the services you use. For example, a user might send an email using the
Exchange Online service or post a document to a shared workspace using SharePoint Online. TheMicrosoft service does not know what is in the email or document but uses security protocols that
help protect your contents during transfer and storage. Your data is treated by Microsoft under the
terms of its privacy and security policies.
Data privacy extends beyond data center technology to include partnerships and collaboration
among users and providers. Thats why Microsoft policies and processesxv
are designed to ensure that
we:
Engineer privacy into our products during the product life cycle. Implement privacy-based technology throughout our internal processes. Execute our global privacy practices properly throughout the company. Provide leadership for the industry.Microsoft will not contact a customers users, nor will we use any personal information collected for
providing the services, for marketing or advertising purposes, except with the explicit consent of the
customer.
Decision point: Does your cloud provide privacy?
Make sure a cloud service includes data encryption, effective data anonymization, and
mobile location privacy in their service. In federal agencies, your contract with a service
provider should include provisions for complying with the Privacy Act of 1974.
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Next steps
Todays expectation for messaging and collaborationvirtually anywhere and on any almost every device is being
met in the cloud. To find out how your organization can
benefit while meeting your operational and regulatory
requirements, call your Microsoft sales representative or
channel partner and ask for more information.
For more information
See Cloud computing for government atwww.microsoft.com/govcloud.
Visit theMicrosoft Office 365website atwww.microsoft.com/office365.
See theOnline Securitywebpage, including the whitepaperSecuring Microsofts Cloud Infrastructure, at
www.globalfoundationservices.com/security/.
Getsecurity guidancefor government atwww.microsoft.com/govsecurity.
Set up a pilot program to testMicrosoft OnlineServicesin your organization at
www.microsoft.com/online.
See theBusiness Productivity Online Suite forgovernmentwebpage.
Download the data sheet (Portable Document Formatfile, 336 KB):Business productivity with Microsoft
Online Services for government agencies.
Microsoft in the cloud
Microsoft has been running some of
the largest, most reliable cloud servicesin the world for almost 15 years.
With more than 40 million paying
customers, our online services help
public and private sector organizations
alike to improve efficiency and cut
costs by migrating part or all of their
messaging and collaboration solutions
to the cloud.
On your journey to the cloud, look to
Microsoft for options that fit yourspecific requirements. We can deliver
your cloud services from the public
cloud, a private cloud, or a self-hosted
cloud infrastructure. In addition, we
offer a robust hybrid model that
combines both on-premises and cloud
service-based computing.
Learn more at
http://www.microsoft.com/govcloud
http://go.microsoft.com/fwlink/?LinkID=202003&clcid=0x409http://go.microsoft.com/fwlink/?LinkID=202003&clcid=0x409http://go.microsoft.com/fwlink/?LinkID=202003&clcid=0x409http://www.globalfoundationservices.com/security/http://www.globalfoundationservices.com/security/http://www.globalfoundationservices.com/security/http://www.globalfoundationservices.com/security/documents/InformationSecurityMangSysforMSCloudInfrastructure.pdfhttp://www.globalfoundationservices.com/security/documents/InformationSecurityMangSysforMSCloudInfrastructure.pdfhttp://www.globalfoundationservices.com/security/documents/InformationSecurityMangSysforMSCloudInfrastructure.pdfhttp://www.microsoft.com/govsecurityhttp://www.microsoft.com/govsecurityhttp://www.microsoft.com/govsecurityhttp://microsoft.com/onlinehttp://microsoft.com/onlinehttp://microsoft.com/onlinehttp://microsoft.com/onlinehttp://www.microsoft.com/industry/government/products/bpos/default.aspxhttp://www.microsoft.com/industry/government/products/bpos/default.aspxhttp://www.microsoft.com/industry/government/products/bpos/default.aspxhttp://www.microsoft.com/industry/government/products/bpos/default.aspxhttp://download.microsoft.com/download/A/4/E/A4EAB26E-2308-4FFF-93C6-DAB5330517DC/BPOSFederalDatasheetNov2010.pdfhttp://download.microsoft.com/download/A/4/E/A4EAB26E-2308-4FFF-93C6-DAB5330517DC/BPOSFederalDatasheetNov2010.pdfhttp://download.microsoft.com/download/A/4/E/A4EAB26E-2308-4FFF-93C6-DAB5330517DC/BPOSFederalDatasheetNov2010.pdfhttp://download.microsoft.com/download/A/4/E/A4EAB26E-2308-4FFF-93C6-DAB5330517DC/BPOSFederalDatasheetNov2010.pdfhttp://www.microsoft.com/govcloudhttp://www.microsoft.com/govcloudhttp://www.microsoft.com/govcloudhttp://download.microsoft.com/download/A/4/E/A4EAB26E-2308-4FFF-93C6-DAB5330517DC/BPOSFederalDatasheetNov2010.pdfhttp://download.microsoft.com/download/A/4/E/A4EAB26E-2308-4FFF-93C6-DAB5330517DC/BPOSFederalDatasheetNov2010.pdfhttp://www.microsoft.com/industry/government/products/bpos/default.aspxhttp://www.microsoft.com/industry/government/products/bpos/default.aspxhttp://microsoft.com/onlinehttp://microsoft.com/onlinehttp://www.microsoft.com/govsecurityhttp://www.globalfoundationservices.com/security/documents/InformationSecurityMangSysforMSCloudInfrastructure.pdfhttp://www.globalfoundationservices.com/security/http://go.microsoft.com/fwlink/?LinkID=202003&clcid=0x409 -
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Endnotes
i
USDA moves 120,000 users to Microsofts cloud. Microsoft press release. December 8, 2010.http://www.microsoft.com/presspass/features/2010/dec10/12-08usda.mspxiiMicrosoft signs cloud deals with California, New York City. CIO. October 20, 2010.
http://www.cio.com/article/627563/Microsoft_Signs_Cloud_Deals_with_California_New_York_CityiiiState of Minnesota signs historic cloud computing agreement with Microsoft. PR Newswire. September 27, 2010.
http://www.prnewswire.com/news-releases/state-of-minnesota-signs-historic-cloud-computing-agreement-with-microsoft-
103865608.htmlivMicrosoft signs cloud deals with California, New York City . CIO. October 20, 2010.
http://www.cio.com/article/627563/Microsoft_Signs_Cloud_Deals_with_California_New_York_CityvThe economics of the cloud tor the U.S. public sector. Microsoft white paper. November 2010.
http://download.microsoft.com/download/E/9/4/E94877E4-012E-42ED-A043-
2A3A00E09F70/USPublicSectorCloudEconomics.pdfviMicrosoft helps customers, partners harness Cloud Power . Microsoft. November 1, 2010.
http://www.microsoft.com/presspass/features/2010/nov10/11-01CloudPower.mspxviiMicrosoft unveils new government cloud offerings at eighth annual Public Sector CIO Summit. Microsoft. February 24, 2010.
http://www.microsoft.com/presspass/press/2010/feb10/02-24ciosummitpr.mspxviii
Financially-backed 99.9% uptimestated in Office 365 Pricing and Fact Sheet. Microsoft. 2011.
http://office365.microsoft.com/uploadedFiles/Office365FactSheet_en.docxixFast-growing city moves to online services to reduce costs, boost productivity.Microsoft case study. July 13, 2010.
http://www.microsoft.com/casestudies/Microsoft-Exchange-Server-2003/City-of-Plano-Texas/Fast-Growing-City-Moves-to-
Online-Services-to-Reduce-Costs-Boost-Productivity/4000007938xUSDA moves 120,000 users to Microsofts cloud. Microsoft press release. December 8, 2010.
http://www.microsoft.com/presspass/features/2010/dec10/12-08usda.mspxxiArmy to move e-mail accounts to DISA cloud. Federal Times.com. January 7, 2011.
http://www.federaltimes.com/article/20110107/IT03/101070301xiiCity government improves service offerings, cuts costs with cloud services solution. Microsoft case study. February 24, 2010.
http://www.microsoft.com/casestudies/case_study_detail.aspx?casestudyid=4000006568xiii
http://blogs.technet.com/b/gfs/archive/2010/12/01/microsoft-s-cloud-infrastructure-receives-fisma-approval.aspxxiv
http://blogs.technet.com/b/msonline/archive/2011/04/20/bpos-federal-amp-fisma.aspx BPOS Federal and FISMAxv
Microsoft privacy in the cloud. Microsoft Trustworthy Computing website.http://www.microsoft.com/privacy/cloudcomputing.aspx
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