Cloud Confusion: Is Private Cloud Holding Feds Back? July 23, 2014

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1 Cloud Confusion: Is Private Cloud Holding Feds Back? July 23, 2014 Underwritten by:

2 Introduction Feds agree cloud offers a significant innovation opportunity freeing agencies from legacy limitations. But, how are they doing? MeriTalk surveyed 159 Federal IT professionals to benchmark cloud adoption and see if the Federal government is taking advantage of the cloud opportunity. Does cloud help agencies fly to new heights? Are there savings on the horizon? Is there turbulence ahead? MeriTalk examines the current state of Federal cloud computing are agencies using the right cloud models? Is private cloud holding Feds back? 2

3 Executive Summary Feds have a limited cloud view: Despite some adoption, the majority of Feds give their agency a C or below on progress toward Cloud First Just 41% say their agency is considering cloud as part of their overall IT strategy, and most agencies are making the bulk of their investments in private cloud Cloud choices are holding them back: Those who incorporate cloud into their overall strategy save on average 18% 50% more than those with a limited cloud strategy Additionally, 44% believe their agency is missing out on potential savings by using private clouds over public, hybrid, or community clouds How do we break through the cloud barrier? Leverage FedRAMP 41% say they are more likely to consider and select a hybrid, community, or public cloud solution because of FedRAMP Promote the savings potential if Feds migrate all potential services and apps to the cloud, they stand to save $18.9B per year* *Savings calculated as a percentage of the $82B FY 2014 IT budget, 3

4 Casual Ascent Feds have taken steps but are not yet making cloud a priority Nearly three out of four Federal agencies (73%) are using one or more cloud models How would you grade your agency s progress toward the Cloud First policy? 40% 38% Top applications moved: #1 (35%) #2 Unified messaging (19%) 7% 9% 6% A B C D F Take Away: Not Yet Putting Cloud First 4

5 The Case to Pick Up the Pace Feds estimate they could save $18.9B* a year by migrating all potential services and applications to the cloud What additional percentage of your agency s IT services and applications do you believe could be a target for potential migration to cloud computing solutions? 31% are targets for potential migration Estimated savings by taking full advantage of cloud: 23% of the average agency s IT budget or $18.9B in annual Federal savings* Take Away: What s Holding Us Back? *Savings calculated as a percentage of the $82B FY 2014 IT budget, 5

6 Few Have Elevated Their Vision Just 41% of agencies say their agency is considering cloud as part of their overall IT strategy In your opinion, is your agency evaluating cloud solutions as an integral part of the overall IT strategy or for a limited number of specific applications? As a part of our overall IT strategy 41% For a limited number of specific applications 51% We are not evaluating cloud solutions 6% Unsure 2% Take Away: Many Pigeonhole Cloud 6

7 Grounding Savings Agencies with a limited cloud strategy miss out on savings ADOPTION SAVINGS Those who incorporate cloud into their overall strategy run 28% of apps/services in the cloud (vs. 17% for those with limited strategy) Those who incorporate cloud into their overall strategy are saving 50% more than those with a limited strategy* Take Away: Limited Strategies Limit Savings *Those who are incorporating cloud into their overall strategy have saved an average of 18%, while those who do not incorporate cloud have saved 12% 7

8 Private Party Agencies are making the bulk of their cloud investments in private cloud Approximately what percentage of your agency s cloud adoption to date has occurred within the following cloud deployment types? Private cloud Public cloud Hybrid cloud Community cloud 56% 18% 15% 11% Take Away: Missing Opportunity 8

9 Private Persuasion Perception of greater security drives Feds to private Some agencies have made the bulk of their cloud investments in private cloud. In your opinion, what are the drivers?* Perception of greater security Perception of greater control over platform performance Perception of easier integration with legacy systems Data loss due to system component seizures Concerns related to co-tenant attacks Compliance with privacy regulations/requirements Concerns over application performance Lack of IT management's support Lack of non-it management's support Unsure 3% 23% 22% 23% 20% 16% 30% 36% 38% 55% *Respondents asked to select all that apply Take Away: Private Safety Blanket 9

10 Private Precaution However, Feds have experienced private operational disadvantages What operational disadvantages (e.g., staffing, procurement, technical), if any, have you experienced with private cloud deployments? Client security requirements Take Away: Private: Not A One-Size-Fits-All Cloud 10

11 Short-Sighted? Still, many Feds won t consider non-private cloud models Do you think your agency is missing out on potential savings by using private clouds over public, hybrid, or community clouds? 44% Yes 38% No 18% Unsure Still, many Feds won t consider other cloud models: 30% say public clouds won t benefit their agency 26% say community clouds won t benefit their agency 16% say hybrid clouds won t benefit their agency Take Away: Knowledge Gap 11

12 What s Weighing Us Down? Nearly all (94%) believe their agency is being held back from implementing non-private cloud models security is top concern What is holding your agency back from adopting or further implementing public, community, and hybrid solutions?* Security concerns Privacy regulations Cost concerns Integration concerns Lack of IT management support Lack of staff training Lack of cloud understanding Network bandwidth uncertainty Applications ROI uncertainty Take Away: Education and Security Confirmation Needed *Respondents asked to select all that apply ** Intel Agencies Look to Tech to Stop the Next Snowden, Tal Kopan, Politico : 23% 23% 21% 19% 19% 18% 31% 30% 28% 66% The cloud presents a fantastic opportunity to not only create business efficiencies but to create a more defensible architecture, and I know the intelligence community in the Defense Department are very much moving as rapidly as possible to take advantage of both those elements ** Phil Quade, Chief Operating Officer of the Information Assurance Directorate, NSA at the MeriTalk Cyber Security Brainstorm Event on June 18,

13 Silver Lining FedRAMP will help 41% say they are more likely to consider and select a hybrid, community, or public cloud solution because of FedRAMP Are you more likely to consider and select a hybrid, community, or public cloud because of FedRAMP? 41% 31% 10% 18% More likely No impact Less Likely Unsure Take Away: Clouds are Parting 13

14 The Skies Ahead Over the next two years, Feds plan to move CRM systems, , logistics, and procurement applications to the cloud Which of the following applications has your agency moved, or are you planning to move, to the cloud? CRM systems Logistics HR/Personell 34% 33% 33% 13% 16% 13% What are the primary dependencies when your agency considers what applications to move to the cloud next?* Security 71% Procurement 31% 16% Data sensitivity 57% Unified messaging Financial management 30% 29% 27% 16% 16% 14% Ease of move 23% Stringent performance/ data 21% Project management 26% 16% Anticipated savings 21% Planning in the next two years Planning beyond two years *Respondents asked to select all that apply Take Away: ETA = 2 Years Out 14

15 Lessons Learned Cost savings Make sure network is reliable first Start with low hanging fruit that is FISMA low and simple to migrate - websites, labs, etc. first It can add value and can be just as secure...but it is a potential and care must be taken to ensure it It is more secure than anticipated Go slow and establish best practices along the way Keep up with changes in IT and educate management to facilitate buy in and support 15

16 Recommendations Start putting cloud first: Evaluate cloud solutions as part of your overall IT strategy Choose the right cloud for the job: Execute a balanced evaluation consider the mission, data sensitivity, and other unique requirements. There is no one size fits all cloud Use FedRAMP to address security concerns: Leverage the FedRAMP PMO process and security authorization requirements to review and grant security authorizations for cloud 16

17 Methodology and Demographics MeriTalk, on behalf of AT&T, conducted an online survey of 159 IT professionals in May The report has a margin of error of ±7.74% at a 95% confidence level Job title: 5% CIO/CTO/CISO 5% Deputy CIO/CTO/CISO 29% IT Director/Supervisor 17% IT Systems Engineer 7% Software/Applications Development Manager 10% Network Administrator 5% Data Center Manager 22% Other IT manager Agency type: 62% 38% Federal Government: Civilian Agency Federal Government: DoD or Intel 100% of respondents are familiar with their agency s use of, or plans for, cloud computing 17

18 Thank You

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