A Turning Point for the Government Cloud

Los Angeles is moving to the cloud, according to Public CIO Magazine March 2010, and “they are the first government of its scale to chose Gmail for the enterprise.”

“It turned out that Washington D.C., was using Gmail for disaster recovery and giving employees the option to use it as their primary e-mail.” But LA is implementing Gmail for more than 30,000 city employees (including police and fire departments) as well as planning to move to Google Apps productivity suite for everything from “calendar, word processing, document collaboration, Web site support, video and chat capabilities, data archiving, disaster recovery and virus protection. “

CTO Randi Levin is leading the charge on the move to cloud computing, and is taking on concerns about cost, data rights, and security.

• On Cost: “The city estimated $5.5 million in hard savings form the Google adoption, and an additional $20 million savings in soft costs due to factors like better productivity.”
• On Data Rights: Nondisclosure agreement with Google includes that the data belong to the city “in perpetuity,” so “if the city wants to switch to another vendor after the contract ends, the city will be able to recall its archived data.”
• On Security: “Google is building a segregated ‘government cloud,” which will be located on the continental U.S. and the exact location will remain unknown to those outside Google. The data will be “sharded”—“shredded into multiple pieces and stored on different servers. Finally, Google will be responsible for “unlimited” damages if there’s a breach of their servers.

LA conducted an request for proposal for software-as-a-service (SaaS) or a hosted solution and received responses for 10 vendors including Google, Microsoft, and Yahoo. Google was selected by an Intradepartmental group of IT managers and a five year contract issued for $17 million.

Currently (since January), LA is conducting a Gmail pilot with about 10% of its city employees, and implementation for the city is slated for mid-June.

Additionally, LA is looking into the possibility of either outsourcing or putting under public-private partnership the city’s servers.

And the interest in government cloud isn’t limited to LA; it is catching on with Google Apps pilots or implementations in places like Orlando, Florida and within 12 federal agencies.

Everyone is afraid to be the first in with a major cloud computing implementation, but LA is moving out and setting the standard that we will all soon be following. It’s not about Google per se, but about realizing the efficiencies and productivity enhancement that cloud computing provides.

A Turning Point for the Government Cloud

The Cloud is a Natural Evolution of IT

Cloud computing is bringing us closer than ever to providing IT as utility, where users no longer need to know or care about how the IT services are provided, and only want to know that they are reliably there—just like turning on the light.

This rent-an-IT model of cloud computing can apply to any portion of an organization’s IT architecture, as follows:

• Service architecture—for application systems, there is “software as a service” (SaaS) such as Google Apps suite for office-productivity or Salesforce.com for customer relationship management. And for developing those systems, there is “platform as a service” (PaaS) such as Google Apps Engine (GAE) or the Defense Information Systems Agency (DISA) Rapid Access Computing Environment (RACE).
• Information architecture—for storing the data used in systems, there is “storage as a service” such as Amazon’s Simple Storage Service (S3).
  
• Technology architecture—for hosting systems, there is “infrastructure as a service” such as Amazon’s Elastic Compute Cloud (EC2)
  

The big advantage to using hosted IT or cloud computing is that it provides on-demand information technology—again like your electricity usage; the juice is there when you need it. Additionally, by outsourcing to specialist IT providers, you can generally get more efficiency, economy, and agility in providing IT your organization.

Of course, there are challenges that include ownership, security, privacy, and a cultural shift from a vertical (stovepiped) to horizontal (enterprise and common services) mindset.

From my perspective, cloud computing is a natural evolution in our IT service provision:

1. At first, we did everything in-house, ourselves—with our own employees, equipment, and facilities. This was generally very expensive in terms of finding and maintaining employees with the right skill sets, and developing and maintaining all our own systems and technology infrastructure, securing it, patching it, upgrading it, and so on.
   
2. So then came, the hiring of contractors to support our in-house staff; this helped alleviate some of the hiring and training issues on the organization. But it wasn’t enough to make us cost-efficient, especially since we were still managing all our own systems and technologies for our organization as a stovepipe.
3. Next, we moved to a managed services model, where we out-sourced vast chunks of our IT—from our helpdesk to desktop support, from data centers to applications development, and even to security and more. But apparently that didn’t go far enough, because we were still buying, building, and maintaining our own IT instances for our organization, but now employing call centers and data centers in far-flung places.
4. And finally, the realization has emerged that we do not need to provide IT services either with our own or contracted staff, but rather we can rely on IT cloud providers who will manage our information technology and that of tens, hundreds, and thousands of others and provide it seamlessly over the Internet, so that we all benefit from a more scalable and unified service provision model.
   

The cloud computing model takes the CIO/CTO and their staffs out of the fire-fighting mode of IT management and into the drivers seat for managing IT strategically, innovatively, and with a focus on the specific mission needs of their organization.

The Cloud is a Natural Evolution of IT

It’s Time to Invest in The Cloud

Cloud computing is "shorthand for centralized computing services that are delivered over the Internet (a.k.a. the 'cloud')."

Cloud computing is to traditional computing as electricity is to rubbing two twigs together to make a fire. Ok. That’s a little bit of an exaggeration, but not by much.

Years ago, people made a fire in their home or workspace which they continually fed to get warmth, lighting, and cooking; now they get these from centralized utilities that distribute it to them on an as needed basis. It’s a lot more efficient that way!

With cloud computing—it’s very similar. Currently, we have our own computing resources (like a hearth and firewood) that we must purchase and regularly maintain to do basic information technology processes for transaction and analytical processing, information sharing and collaboration. Now, we can get these functions from centralized computing facilities or data centers that distribute them, as needed on a subscription or metered basis. This gives us a predictable, stable source of computing at reduced prices, delivered via the Internet, when we want and need it, and without the hassle of having to purchase and maintain the hardware and software infrastructure. It’s a user-centric model!

Most of us with very busy and already complex lives inherently understand and are drawn to a model that is convenient and cost-effective. Flip on the switch and voila—lights/heat in one case or email, e-Commerce, and online entertainment in another.

To me, if its not a mission-specific or highly sensitive application, the question is why shouldn't it be in the cloud?

Fortune Magazine, 2 March 2009, on the rise of cloud computing juggernauts like Salesforce “a public company with a market capitalization of $3.5 billion, generates revenue of more than $1 billion a year—a 60% five-year annual growth rate—all from providing software subscriptions to business.”

Marc Benioff, their CEO says “We’ve always believe everything’s going into the cloud.”

Even detractors, like Larry Ellison, the CEO of Oracle, has helped fund Saleforce and another major cloud computing vendor, NetSuite. Moreover, “Oracle at the end of January lauched a new version of its online sales-management product…CRM on Demand” —so you see where Mr. Ellison is strategically placing some of his chips.

What about the other major application vendors?

“SAP said it would be releasing a software-as-a-service product in May…and Microsoft also has customer-management software available. IBM just named a cloud computing czar, and Google and Amazon are launching ambitions initiatives.”

So what’s holding up the transition?

Generally, the biggest cited obstacle to moving to cloud computing is security. Yet, “Salesforce has recorded only one security breach, a phishing attack in November 2007.” Moreover, because of the scope, scale, resources, and expertise that these vendors have, they can actually deploy and maintain a level of security that other organizations may only dream of.

Never-the-less, “companies remain committed to owning and hosting their own software and despite the tough economic times, they are loath to try something new, especially if it means making additional investments, however meager.”

But in the end “cost cutting and convenience are expected to prompt more firms to rent software that will be delivered over the Internet cloud.” IDC projects that by the end of 2009, “76% of U.S. organizations will use at least one web-delivered application for business use.”

Further, according to research firm, Gartner, "of the approximately $64 billion spent on business applications in 2008, about 10% or $6.4 billion, was spent on applications housed remotely and delivered via the Net."

The writing is on the wall or should I say in the cloud!

It’s Time to Invest in The Cloud

The Future of Cloud Computing

Cloud computing—“a style of computing where IT-related capabilities are provided ‘as a service’, allowing users to access technology-enabled services ‘in the cloud’ without knowledge of, expertise with, or control over the technology infrastructure that supports them.” (Wikipedia)

In an article in InfoWorld, 7 April 2008, called What Cloud Computing Really Means, Galen Gruman states that “Cloud computing encompasses any subscription-based or pay-per use service that, in real time over the Internet, extends IT capabilities.”

What’s an example of cloud computing?

An example of cloud computing is Google Apps that provides common business applications (similar to traditional office suits) online.”

How does cloud computing work?

In cloud computing, resources--either hardware or software--are available on-demand—as needed.

In the case of on-demand software, application service providers (ASPs) offer software as a service (SaaS). And for on-demand hardware or IT infrastructure (i.e. virtual data center capabilities such as servers or storage), the offering takes the form of utility computing. In both cases, technology resources are served up on a pay-as-you-go or metered basis, similar to the way a public utility would charge for electricity, oil/gas, telephone, water, and so on.

The cloud computing model is similar to service oriented architecture where there is a service provider and consumer, and here the Internet functions the basic service broker.

Cloud computing is has a basis in technology virtualization in which service providers "hide the physical characteristics of computing resources from their users [consumers]." (Wikipedia)

What are the major advantages of cloud computing?

Cost—one of the big advantages of this computing model is that the upfront IT investment cost is little to none, since the IT assets are in essence being rented.

Scalability—customers have the ability to use more resources when they have a surge in demand and can scale back or turn off the spigot when the resources are not needed.

Flexibility—As IT capabilities get updated by the service provider, consumers in the cloud model can make immediate use of them and benefit sooner than if they had to stand up the capabilities themselves.

Mission focus—The enterprise can stay focused on core mission and mission support capabilities and in essence easily outsource business support functions, where the service provider is responsible for enabling more generic (not strategic or differentiators) business capabilities.

What are the enterprise architecture implications?

Cloud computing can play an important role in focusing IT solutions on strategic mission requirements, simplifying and standardizing our IT infrastructures by outsourcing capabilities, utilizing a services oriented architecture (SOA) model where common business services are served up by providers and consumed by the enterprise, and more effectively managing costs.

What is the future of cloud computing?

Obviously, there are security implications, but as Galen Gruman states: “as SOA and virtualization permeate the enterprise, the idea of loosely coupled services running on an agile, scalable infrastructure should make every enterprise a node in the cloud. It’s a long-running tend with a far-out horizon. But among big metatrends, cloud computing is the hardest one to argue with in the long term.

The Future of Cloud Computing