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© 2015 IBM Corporation

Ohio Digital Government Summit:Cloud-Based Provisioning

September 16th, 2015




Cloud – and government

“Cloud computing offers limitless

vistas of

– Cheap, utility computing

– Low capital needs

– Rapid application development

– Happy users…

– … and therefore even happier

CIOs…!”

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Well, not quite!!.

While cloud is undoubtedly a powerful tool for governments, a number of significant

constraints apply. But, these can be addressed – so let’s explore them.



© 2015 IBM Corporation3

“Gentlemen, we have run

out of money. Now we have

to think.”(Ernest Rutherford or Winston Churchill)

Social

Analytics

Mobile Cloud

Social

nalytics

Mobile

Cloud

Big Data

Speed and agility – faster service

delivery.

Scalability.

Efficiency, automation.

Pay in line with usage.

Opex replacing capex.

Certainly, governments areunder continuous pressure todo more with less, and cloud

can play a big role…

“Systems of engagement” for citizens

and workforce.

Targeted services that engage

citizens as individuals, based on

analysis of needs.

Seamless experience – “joined up

government”.

..and certainly, cloud is a majorenabler of mobile computing,big data and many otherbuzzwords




So governments are becoming highly creative in how they use cloud

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Cost reduction – Canadian

provinces, many

others

Shared services –

Group of NY statetownships

Mainframe skills

replacement –

(US State)

IaaS platform forpublic sector

entities - California

Economic and skills

development engine

– Singapore, Taiwan

E-governmentplatform - Estonia

Local infrastructure

(for NGOs, private

sector) – Catalonia,

Sunderland (UK),

WuXi (China)

Community

enablement engine

– Norfolk (UK)

Revenue source

– New South

Wales, Australia

Hurricaneresilience –

Caribbean

nations



© 2015 IBM Corporation5

Hi gh s p e e d c omm uni c a t i on s f or a

l l u s er s

UserCounties,

Cities

A shared services model?

Business Process as a Service

Software as a Service

Lead Entity(State?)

Infrastructure/Platform as a Service•Collaboration tools•Billing and metering•Security•etc

P u b l i c

B u s i n e s

s e s ?

I n t er n

al

O p er a t i

on s

P u b l i c

B u s i n e s s e

s ?

I n t er n al

O p er a t i on s

Complex Workflows

(Example - emergency response)

C u s t om

er P or t al

Simple Workflows

(Example - property taxtransaction)

Data Models and Integration

(“Single view of the student/taxparcel/citizen/asset/criminal….”)

Appl ication Catalog

(Multiple vendors)




But there are decisions to be made…

Opex vs Capex

Data residency

Compliance

Public vs Private vs Hybrid Management and Cyber-Security

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Opex vs capex: the need isn’t always clear cut

Many governments are attracted to

converting capital expense to

operating or revenue expense.

But not all. Some governments are

not capital constrained:

– Example – US State X, and UK

Water Utility Y. Both have tightrevenue budget constraints, but

still find it easy to raise debt.

– But they still want to pay by

usage…they just want a way to

aggregate cloud expenses into a

capital payment. Also, many cloud users are wary of

sudden cost surges if payment is

driven purely by usage.

– They prefer a fixed (or at least

predictable) monthly cost.

OpexCapex


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Data residency and local content requirements are common worldwide. Phillip Snowden and the NSA made them more so.

Many governments have

geographically-defined data

residency requirements.

May be a legal requirement - or

just a tacit preference.

Some countries are data residentbut not “support resident”.

Some have local employment

conditions, to boost economies by

creating skills and jobs.

Restrictions also exist on sharingpublic clouds between specific

countries.

Even in the US, some states want

data to stay within their borders,

while others work with US

borders.

Data residency fundamentally breaks the original

economic model for cloud, of utility computing at

enormous scale. So it implies trade-offs:

– Is there a public cloud vendor in your desired

territory, or do you need a private cloud option?

– How close can you get to cloud benefits with a

private cloud?

– Are all workloads data resident, or just some?



“The appliance of compliance”

Compliance with privacy and security

standards such as FISMA/FedRamp,

HIPAA, CJIS and FFIEC imposes

constraints (and costs) on cloud:

– Premises;

– Staff vetting;

– Hardware/control stack; – Applications – especially if multi-tenant;

– Procedural – risk analysis, process

design, attestation, documentation,

audit.

CJIS is a particular issue. DoJ’s position is

that CJIS data may not co-exist onhardware with non-CJIS data – period.

IBM clients increasingly want compliance

with ISO 27000 series, even for otherwise

non-compliant data, just to demonstrate due

care and stewardship.

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Most compliance standards are basedat least to some extent on the same

core ISO and NIST standards.

This may mean that ISO 27000 series

is a good “base camp” from which to

additionally comply with the other

standards required.

There is a “superset” of compliance

requirements that once met will apply

to other standards. For example:

– FIPS 140-2 encryption

– HIPAA procedural “superstructure”

– CJIS staff vetting…



Public vs Private vs Hybrid Cloud

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Public Private

+Ve:

– Low costs – Flexibility and elasticity

– Opex payments

– Back-up capability

– Economies of scale

also apply to security!

-Ve:

– Data residency – Support for compliance

– Some legacy apps and

workloads are not

cloud-suited

– Visibility of security

provisions

+Ve:

– On or off-prem options

– Enables data residency

– May be best option for

legacy workloads

– May be easier to

ensure compliance

– Accountability

– Optimizes return onexisting investments

-Ve:

– Skills availability

– Costs

– Access to public cloud

ecosystem and

development tools

Hybrid

+Ve:

– Optimizes workloads to the best

locations – may be unavoidable

– Retains economics of public cloud

where applicable

– Retains existing investments whereapplicable

-Ve:

– Potentially, organizational and

technical complexity in achieving

required integration (but see

over).



Management and Cyber-Security - in a hybrid environment, the keyword is “integration”

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(Traditional IT)

Orchestration (Often multiple cloud environments)

Development environment

Integrated Security and Compliance Management

Management - Visibilit y, Performance, Usage Reporting

Public PrivateHybrid

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