Showing posts with label Cloud First. Show all posts
Showing posts with label Cloud First. Show all posts

October 12, 2012

Cloud $ Confusion

It seems like never before has a technology platform brought so much confusion as the Cloud.


No, I am not talking about the definition of cloud (which dogged many for quite some time), but the cost-savings or the elusiveness of them related to cloud computing.

On one hand, we have the Federal Cloud Computing Strategy, which estimated that 25% of the Federal IT Budget of $80 billion could move to the cloud and NextGov (Sept 2012) reported that the Federal CIO told a senate panel in May 2011 that with Cloud, the government would save a minimum of $5 billion annually.

Next we have bombastic estimates of cost savings from the likes of the MeriTalk Cloud Computing Exchange that estimates about $5.5 billion in savings so far annually (7% of the Federal IT budget) and that this could grow to $12 billion (or 15% of the IT budget) within 3 years, as quoted in an article in Forbes (April 2012) or as much as $16.6 billion annually as quoted in the NextGov article--more than triple the estimated savings that even OMB put out.

On the other hand, we have a raft of recent articles questioning the ability to get to these savings, federal managers and the private sector's belief in them, and even the ability to accurately calculate and report on them.

- Federal Computer Week (1 Feb 2012)--"Federal managers doubt cloud computing's cost-savings claims" and that "most respondents were also not sold on the promises of cloud computing as a long-term money saver."

  - Federal Times (8 October 2012)--"Is the cloud overhyped? predicted savings hard to verify" and a table included show projected cloud-saving goals of only about $16 million per year across 9 Federal agencies.

  - CIO Magazine (15 March 2012)--"Despite Predictions to the Contrary, Exchange Holds Off Gmail in D.C." cites how with a pilot of 300 users, they found Gmail didn't even pass the "as good or better" test.

- ComputerWorld (7 September 2012)--"GM to hire 10,000 IT pros as it 'insources' work" so majority of work is done by GM employees and enables the business.

Aside from the cost-savings and mission satisfaction with cloud services, there is still the issue of security, where according to the article in Forbes from this year, still "A majority of IT managers, 85%, say they are worried about the security implications of moving to their operations to the cloud," with most applications being moved being things like collaboration and conferencing tools, email, and administrative applications--this is not primarily the high value mission-driven systems of the organization.

Evidently, there continues to be a huge disconnect being the hype and the reality of cloud computing.


One thing is for sure--it's time to stop making up cost-saving numbers to score points inside one's agency or outside.

One way to promote more accurate reporting is to require documentation substantiating the cost-savings by showing the before and after costs, and oh yeah including the migration costs too and all the planning that goes into it. 

Another more drastic way is to take the claimed savings back to the Treasury and the taxpayer.

Only with accurate reporting and transparency can we make good business decisions about what the real cost-benefits are of moving to the cloud and therefore, what actually should be moved there. 

While there is an intuitiveness that we will reduce costs and achieve efficiencies by using shared services, leveraging service providers with core IT expertise, and by paying for only what we use, we still need to know the accurate numbers and risks to gauge the true net benefits of cloud. 

It's either know what you are actually getting or just go with what sounds good and try to pull out a cookie--how would you proceed? 

(Source Photo: Andy Blumenthal)

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April 17, 2012

Let's Come Clean About The Cloud

An article in Federal Times (16 April 2011) states that "Experts See Little Return For Agencies' Cloud Investments."

The question is were the savings really achievable to begin and how do you know whether we are getting to the target if we don't have an accurate baseline to being with. 

From an enterprise architecture perspective, we need to have a common criteria for where we are and where we are going.

The notion that cloud was going to save $5 billion a year as the former federal CIO stated seems to now be in doubt  as the article states that "last year agencies reported their projected saving would be far less..."

Again in yet another article in the same issue of Federal Times, it states that the Army's "original estimate of $100 million per year [savings in moving email to the DISA private cloud] was [also] 'overstated.'"

If we don't know where we are really trying to go, then as they say any road will get us there. 

So are we moving to cloud computing today only to be moving back tomorrow because of potentially soft assumptions and the desire to believe so badly. 

For example, what are our assumptions in determining our current in-house costs for email--are these costs distinctly broken out from other enterprise IT costs to begin? Is it too easy to claim savings when we are coming up with your own cost figures for the as-is?

If we do not mandate that proclaimed cost-savings are to be returned to the Treasury, how can we  ensure that we are not just caught up in the prevailing groupthink and rush to action. 

This situation is reminiscent of the pendulum swinging between outsourcing and in-sourcing and the savings that each is claimed to yield depending on the policy at the time. 

I think it is great that there is momentum for improved technology and cost-savings. However, if we don't match that enthusiasm with the transparency and accuracy in reporting numbers, then we have exactly what happens with what the papers are reporting now and we undermine our own credibility.  

While cloud computing or other such initiatives may indeed be the way go, we've got to keep sight of the process by which we make decisions and not get caught up in hype or speculation. 

(Source Photo: here with attribution to Opensourceway)

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March 10, 2012

Robots, Coming to An Agency Near You Soon

There is an article today in the Wall Street Journal (10-11 March 2012) about how an Anybot Robot attended a wedding party in Paris dressed up as the man's 82-year old mother who logged on from her home in Las Vegas and by proxy of the robot moved and even danced around the party floor and conversed with guests--she was the hit of the party. 

While sort of humorous, this is also amazingly incredible--through robotics, IT and telecommunications, we are able to close the gap in time and space and "be there," even from a half a world away.

The QB Anybot robot is life size, rolls around on 2 wheels like a Segway, and has glowing blue eyes and a telescreen for a forehead on a long skinny cylindrical body that can be controlled remotely and costs only $9,700.

While this is the story of a robot "becoming the life of the party," I believe that we are at the cusp of when robots will be reporting for duty at our agencies and organizations. 
 
The function of robots in workplace has been tested with them performing everything from menial office tasks (like bringing the coffee and donuts) to actually representing people at meetings and around the office floor--not only keeping an electric eye on things so to say, but actually skyping back and forth with the boss, for example. 

As robots become more dexterous, autonomous, and with better artificial intelligence, and abilities to communicate with natural language processing, we are going to see an explosion of these in the workplace--whether or not they end up looking like a Swiffer mop or something a little more iRobot-like. 

So while we are caught up in deficit-busting times and the calls for everything from "Cloud First" to "Share First" in order to consolidate, save, and shrink, maybe what we also need is a more balanced approach that takes into account not only efficiencies, but effectiveness through innovation in our workplaces--welcome to the party, Robots!

(Source Photo: Andy Blumenthal)

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