The Cloud Imperative:
Leading Practices for Optimizing Cloud
Computing Acquisition and Deployment
Presentation to
Nat’l Association of State Procurement Officials
17 April 2012
Carol Henton, TechAmerica
and
Gary Lambert, Commonwealth of Massachusetts
Presentation Overview
• TechAmerica and its State & Local Government Cloud
Commission (SLG-CC)
• Understanding Cloud
– What it is, why it saves money, how it helps
• Acquisition (aka Procurement) Issues and Challenges
for States & Localities
About TechAmerica
 TechAmerica was formed in 2009 by merger of four
organizations:
 Leading voice for the U.S. technology industry
 Approx. 1000 member companies – from startups to multinationals.
 Technology industry's only grassroots-to-global advocacy network
 Leading advocacy trade association on both federal and state procurement issues
 TechAmerica Foundation’s mission is:
 To educate executives, policymakers, press, opinion leaders, and the public on the size,
scope, outlook, and impact of technology
 To promote technology led ideas that advance economic growth and U.S.
competitiveness
SLG Cloud Commission
• Launched in September 2011
– Key facts and figures
38 Companies/Commissioners participated
35 Deputy Commissioners
13 Government Advisors (State, County, and City)
2 TechAmerica Foundation dedicated staff
Plus Writers, Web Designers, PR firm, Graphics
Designer and more
• SLG-CC followed TechAmerica’s Federal Cloud2 initiative,
which produced a Federal Cloud Buyer’s Guide in July 2011
4
TechAmerica State and Local Cloud
Commission products:
1. Report -- “The Cloud Imperative –
Better Collaboration, Better Service,
Better Cost”
• Executive Summary plus
• “A Comprehensive Guide for Best
Practices in Cloud Computing for
SLGs”
2. Web Platform/Common Portal
• www.cloud4slg.org
3. Event: Released at a major event in
Silicon Valley on February 16, 2012
5
What is Cloud?
Cloud is:
• The on-demand provisioning of applications,
services, and/or infrastructure from a network,
rather than a local computer
• Not new technology, but new management
capabilities, processes, and packaging
6
Cloud Definition
• NIST* definition of Cloud
*National Institute of Standards and Technology-v15
Cloud is not just about technology
but about automating service management
• This cloud model promotes availability and is
composed of:
– 5 essential characteristics
– 3 service models
– 4 deployment models
Let’s quickly review to have a
common basis of understanding
7
NIST Cloud Model Defines Three Dimensions
5
3
4
Essential
Characteristics
•
•
•
•
•
Service Models
• Cloud Software as a Service (SaaS)
• Cloud Platform as a Service (PaaS)
• Cloud Infrastructure as a Service (Iaas)
Deployment
Models
•
•
•
•
National Institute of Standards and Technology-v15
8
On-demand self-service
Broad network access
Resource Pooling
Rapid elasticity
Measured service
Private Cloud
Community Cloud
Public Cloud
Hybrid Cloud
Why Cloud?
• Cloud is frequently promoted for:
–
–
–
–
–
Cost savings and efficiency
Flexibility and scalability
Reduced data center issues
Rapid application development
Better data security
Value
• Cloud can enable innovation
– Not a solution, but a catalyst for change
– Drive speed, efficiency, creativity, access
– Support collaboration, transparency, insight
9
Why Cloud?
• But some fear:
– Loss of control
– Other data privacy and security issues
• Audit process support, data location, etc.
Excerpt from SLG-CC Report…
11
Business Value Impact
CASE STUDY and USE CASE INVENTORY
Thirty (30) plus Case Studies included in the report and/or posted on SLG-CC web
portal

Several newly document SLG “Use Cases” (e.g., City of Houston Water Meter billing,
three counties in Colorado)

Includes tools and resources from both industry and SLG stakeholders -- for
example: sample contract RFPs, White Papers, Technical Papers, “The Cloud
Cookbook” written by Wisconsin’s enterprise architecture expert Kevin Acker, blog
postings

12
Cloud Considerations
• Risks
– Portability
• Data
• Service
– Security
– Appropriate Service
Levels
– Securing Funding
– Contract Terms
– Getting the SLA Right
– Governance
WSCA –
eProcurment
System
Cooperative
Virginia – eVA
Procurement
System
CA Dept. of
Financial
Institutions –
Records Request
Management
System Using CRM
Oregon –
Building
Permitting
Arizona –
eProcurement
System
Maine –
Hosted
ERP
Hudson Cty.
NJ – Private
Cloud for
Disaster
Recovery
Illinois –
Private
Cloud
email
Nebraska –
Enterprise
Job Applicant
System
New Mexico –
AG’s email and
Staff
Scheduling
System
Technology Impact – Service Orchestration
• Leveraged NIST Cloud Computing Reference Architecture
• Physical Resource Layer (Hardware, Facility)
– Focus on issues related to base hardware/software platform and
servers
– Standards versus propriety
– Commodity versus state of the art or bespoke
• Resource Abstraction and Control Layer
– Focus on Hypervisor issues and recommendations
– Commercial versus open source, bare metal versus OS hosted, etc.
• Service Layer (IaaS, PaaS, SaaS)
– Focus on recommendations for higher level services
– Elasticity, bursting, provisioning, app development, deployment,
scaling
16
Technology Issues Impacting Adoption of Cloud Solutions
17
Implementation Issues Impacting
Adoption of Cloud Solutions
• Research and report on key recommendations and
guidelines that address the issues facing SLG IT
Services leaders when planning and implementing
Cloud based resources and business models
– Focus on four key stages.
Cloud
Readiness
Operations
Best Practice
Risk
Assessment
Implementn.
Best Practice
18
Issues Unique to State and Local Governments
•
•
•
•
Unique state and local laws/practices
State data location requirements
Budgetary issues with legislators
Outsourcing issues
19
Acquisition and Contracting Issues Impacting
Adoption of Cloud Solutions
• Key Takeaways on Cloud Solutions
Procurement -• Successful cloud procurements must address these
three key areas:
– Procurement Vehicles
– Pricing/Business Models
– Key Contractual Terms
– Funding Streams
20
SLG Cloud Commission Report
Key Takeaways on Cloud Procurement (continued):
• Procurement vehicles in use today may or may not be specifically
designed for cloud services.
• Contract vehicles for cloud services are also offered by multigovernment consortia and the federal government;
• To date, private clouds have dominated state CIO discussions.
Factor in the need for varying application requirements such as
development and test environments, prototyping, collaboration
and e-mail and the cases for hybrid and virtual private clouds are
gaining ground;
• Private clouds offered by cloud vendors have the potential to
obviate the need for large capital expenditures by state and local
governments;
• Acquiring cloud architectural design services raises specific
procurement issues which must be addressed.
SLG Cloud Commission Report
Key Recommendations for Cloud Procurement:
• Create a state RFP specifically tailored for cloud services to
support a variety of delivery models – and available for use
by local governments;
• When using an existing, non-cloud specific procurement
vehicle, use terms and conditions specific to cloud services;
• Develop and require specific terms and conditions for data
portability, records management, security and privacy, and
SLAs;
• When addressing multijurisdictional clouds highlight and
adjudicate governance issues;
• Create or leverage buyer’s guides, including those from
Federal and commercial sources, to vet and prequalify
providers.
SLG-CC continues into the future
• SLG-CC’s Web Portal – www.cloud4slg.org
– Best Practices and Use Case examples
• We’ve posted more than 35 to date; more are needed!
– Tools and Resources
• White Papers, Analyst Research, Case Studies go here
– Community:
• Expert Opinion/Cloud Community Dialogue
– Marketplace: Area for leading providers of cloud to
offer their wares
• Speaking to government customers
– Via webinars and other events
23
Questions… or to offer content to be added
to cloud4slg.org web portal, contact:
Gary Lambert, Chief Procurement Officer, Commonwealth
of Massachusetts, gary.lambert@state.ma.us
Carol Henton, Vice President, State & Local Government,
TechAmerica, 650-357-7728,
carol.henton@techamerica.org
Michael Kerr, Senior Director, State & Local Government,
TechAmerica, 703-284-5324, mkerr@techamerica.org
THANK YOU