OESCA. The Journey To The Cloud As a Shared Service: Silver Lining or Dark Days Ahead? mc oecn. Annual Conference September 13, :30 3:30 PM

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1 OESCA Annual Conference September 13, :30 3:30 PM The Journey To The Cloud As a Shared Service: Silver Lining or Dark Days Ahead? Sam Orth Chief Technology Officer Bill Young Deputy Chief Technology Officer Ohio 2 We provide efficient, effective and secure technology that enables student learning in a 21 st Century economy that demands global competitiveness. 2 The Original Education Cloud

2 Discussion Points What s all this talk about a Cloud? A Historical Backdrop Disruption as the force of Change Clouds Defined Cloud Implications for K-12 Public or Private? Impact on Education & Government OECN The Original Education Cloud Where we are Where we want to go Partners Wanted Question & Discussion

3 ... and likewise all parts of the system must be constructed with reference to all other parts, since, in one sense, all the parts form one machine. -Thomas Edison HISTORICAL BACKDROP Technology Challenges in Education

4 Electricity: So Commoditized We Take It For Granted Light Bulb first commercially demonstrated in 1879 Commercial power distribution 1880 War of Currents Edison DC No Current Mixing 100 volts Cheaper wires Separate wires for different loads Distributed power generation close to customers = more plants = >profit Safer Westinghouse AC Mixed current loads (110, 220, 440 etc.) Stepping Up and Down of Currents Centralized production in large plants Longer Distances 1893 GE invests in AC Commercial power expansion begins

5 Industrial Capacity and Progress: Limited By Power Production Burden s Wheel Late 1800 s Steam Generator 21 st Century Power Generation Mechanical Power - hydraulic, pulleys, levers On-Site Electrical Power -motors On-Site Modern Power -explosion of devices -motors, computers, etc. Water Turbines Capacity Limited By Water Availability Peak 1851 Burden s Wheel Troy, NY Steam Turbines Capacity Limited By Water Availability Staff Expertise Cost Peak ,000 on-site in U.S. Centrally Produced Turbines (Coal, NG, Nuclear, Diesel, Wind) Capacity Limited By Fossil Fuels Peak 2XXX?

6 Lessons Learned: Is there a Parallel? human consequences are determined not simply by advances in science and engineering but also, and more decisively, by the influence of technology on the costs of producing and consuming goods and services. - Nicholas Carr, The Big Switch: Rewiring the World, from Edison to Google On-site power production was expensive It took capital to build power plants and expert staff to maintain There are over 500,000 datacenters in the world Digital information in its most rudimentary form of 0s and1s is expressed electrically Will history repeat itself?

7 From centraliza.on to distributed compu.ng change is the only constant ` Internet Internet Commerciallyviable corporate enterprise computing based on Mainframe computing only affordable by largest school districts and governments Emergence of Midrange computing platforms Time Sharing Personal Computing Era Begins Spreadsheets Databases Word Processing Computing starts to migrate out of the Datacenter Emergence of LANs and Client-server applications Beginning of commoditization of the PC Emergence of Internet-based client-server applications Commoditized PCs, LANS, Servers, Storage Emergence of smart phones, personal digital assistants Consumer devices are ubiquitous personal computing is finally personal User expectations, of technology services are at an all time high Systems integration is transparent to the customer in the cloud but more complex 7

8 IT Portfolios Are Upside Down If you look at IT as an investment portfolio you can loosely categorize IT investments as Infrastructure or Applications. After decades of investment in IT, many organizations are over-invested in infrastructure. (80/20, 70/30, 60/40) Applications are where the value is created

9 DISRUPTIVE FORCES OF CHANGE Technology Challenges in Education

10 Disruptive Technologies An innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology there. A term used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in the new market and later by lowering prices in the existing market.

11 Disruption #1: Mobile Computing Personal computing era has ended Mobile devices are now the predominant computing platform 60% of the world s population have cellular phones that s four billion users By the end of in 4 cell phone users that s 1 billion users are expected to own smartphones Since its introduction in April 2010, it is estimated that Apple has sold 25m ipads Apple expects to sell 50m iphone 5 by CYE12

12 Disruption #2: Rapid Application Provisioning PC era applications came in a cardboard box, cost hundreds or even thousands of dollars and had to be installed from a disk, CD or DVD Users had to go to a computer store to buy them, or order them and wait for them to be delivered Then they had to be installed and configured Due to their expense, most end-users only had a handful of only the most important applications they could afford

13 Disruption #2: Rapid Application Provisioning 23,148 Apps are downloaded Every 60 Seconds The combination of modern software development tools, open source initiatives and always available real-time distribution to a global installed base, provided mobile users with unprecedented access to millions of new applications that were free or available at greatly reduced costs. They can be installed and used within minutes of a click of a button.

14 Disruption #3: WorldWideWeb Personal Brands For many people, especially young adults, the Internet isn t a medium but an extension of their personal identities, self concept, circle of friends, and very way of life. Rich Media Content Social s Susan Bill Cathy 90,000 tweets every 60 seconds

15 Disruption #4: Personal Cloud Computing Enabled by the Internet, mobile and PC users have access to on-line tools and data-stores that provide them with access to powerful productivity applications and data storage that gives them the ability to communicate and access data anytime and anyplace they can connect. Many services synchronize personal information such as electronic mail address books, contact databases, calendars and other personal information across multiple devices.

16 Disruption #5 (potentially): Consistent End-User Experience (Client Virtualization) With access to broadband networks desktop virtualization decouples the dependency on local storage of the user s OS, apps and custom settings stored on a single personal computer. A user s customized computing environment their operating system, applications and personal settings follow them regardless of what device they use

17 Multiple Disruptions Amplify User Expectations Mobility Rapid Application Provisioning World Wide Web End-User Personal Cloud Computing Desktop Virtualization

18 The IT Services Provider A delicate juggling act Every technology product has a lifecycle: Buy too soon and risk incomplete products, higher implementation costs, and end-user change pain Wait too long and risk technology end of life failure, increased costs and business interruption Trick is to buy the right technologies, at the right time, with end-user support for optimal efficiency and use Technology solutions are a portfolio of hardware, software, people and processes that work together to form a cohesive whole Keeping all of the parts working together effectively and efficiently is a complex endeavor for any organization and is becoming increasingly hard to do

19 CLOUDS DEFINED Technology Challenges in Education

20 Fundamental Response by Industry to Imbalance is Cloud Computing Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models

21 Cloud Computing: 5 Essential Characteristics 1. On-demand self-service A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service s provider. 2. Broad network access Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, laptops, and PDAs). 3. Resource pooling The provider s computing resources are pooled to serve multiple consumers using a multitenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, network bandwidth, and virtual machines.

22 Cloud Computing: 5 Essential Characteristics 4. Rapid elasticity Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time. 5. Measured service Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of the utilized service.

23 Cloud Computing: 3 Service Models Software as a Service (SaaS) The capability provided to the consumer is to use the provider s applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based ). The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Platform as a Service (PaaS) The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations. Infrastructure as a Service (IaaS) The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls) SaaS PaaS IaaS Application OS DB BL Server Storage

24 Cloud Computing: 4 Deployment Models Private cloud The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise. Community cloud The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise. Public cloud The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services. Hybrid cloud The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for loadbalancing between clouds)

25 Journey to the Cloud IDC Experience and Sophistication Payoff Impact Phase Pilot Consolida,on Assured Compu,ng Private Cloud Staff Skills Little or no expertise Hands on expertise; some formal training Formal training; certification desirable Certification required Technology & Tools Simple static partitions Simple Mobility: Manual & Off-hours Matched application pairs Portable Applications: Automated Failover CMDB Implemented Policy based automation; Service management; Lifecycle Mgmt; Self Service Delivery Financial Impact No substantial financial impact Measurable Hard Cost Savings: Consolidation Power/Real Estate Justified TCO savings: Business Continuity Variable costs recognized or charge back models established IT Process & Policies Skunk Works Ad hoc Partially Integrated; Partially Standardized Fully Integrated Fully Standardized Line of Business Hidden Revealed Transparent Engaged in Governance Process Application Usage Test Development Production: Non-critical Production: Business Critical Production: Service Profiles & Catalogs % of Customers 15% 55% 25% 5% Average VM Density Experience 9-12 months 9 months - 2 years years 3-5 years % Virtualized Servers <10% 25% 50% 80%

26 Keeping The Cloud In Perspective Not A Technology or Architecture A Style Of Computing that enables The Portfolio

27 CLOUD IMPLICATIONS FOR K-12 Technology Challenges in Education

28 IT is a Verb, not a Noun Efficiently and effectively enable the business to achieve its mission IT should be a means to an end, not an end of itself a verb not a noun For K-12, IT role is to enable learning through efficient and effective use of technology resources IT industry has been enormously successful, it is now the fourth largest on earth Given all of our progress, do schools and students have access to all of the technology tools they need to be successful? Information Technology Administrative Computing Administrators Teachers Educational Computing Te Students ach ers

29 Shift to Student-Centered Technology Design Focus on the learner Standards Curriculum Lesson Plans The Learner Access anytime, anyplace Learning extends the classroom Aligned Content Subject Quality Timing Self-paced Mastery Advance as mastery is demonstrated at any pace Feedback to Teachers & Parents Integration of Technology Inserting into daily instruction Diagnostic Assessments Practice makes perfect Alignment with remedial lessons The Student Lab Access Use when available Rich, engaging content worthy of exploration Age appropriate Multiple learning styles Learner-Centric Environment is achievable All of the piece / parts client technologies, broadband networking, content delivery platforms, development tools, and expertise exists We have to decide as a state how we will make this vision a reality

30 Fundamental Question Moving Forward for K-12 Organization How can they meet the rising technology expectations of their organizations and endusers in a time of economic uncertainty and rapid technology change? Is the application and value of IT constrained?

31 Where does new capital come from to invest in the applications needed to meet end-user demand? Cost Pressure IT Portfolio Management Infrastructure Management & Support Application Management & Support Software Licensing End-user Support Datacenter Operations Project Management Reduce Costs Balanced Budget End-User Demands Educational Advancement Standards Content Assessment Courses Administrative Efficiency Management Information Systems Business Process Enablement Business Analytics 1:1 Computing Client Devices Ubiquitous Broadband Connectivity Investment Pressure Increase Revenues

32 Continuum of IT Service Offerings Core Centralized Common Centers of Excellence Unique Organizationally Specific IT Shared Services Technology Labor SaaS PaaS Technology IaaS Overhead Labor Technology Labor Overhead Technology Labor Overhead Number of Providers Overhead Technology Technology Labor Labor Overhead Overhead Standardized Diversity of Product Offering Customization Lost economies of scale Tipping Point of Efficiency and Effectiveness Lost creativity / innovation

33 What happens if IT cannot turn this fundamental imbalance around? In under-capitalized IT environments re-investment of efficiencies into additional efficiencies, improved customer service, and new applications is necessary for central IT to maintain the value proposition for their end-users. Without reinvestment, customers leave the environment, with an increase in costs and decrease in capability and greater risk to the organization.

34 What happens if IT cannot turn this fundamental imbalance around? Implications of an unmanaged cloud Fend for yourself some schools and students have better access to what they need than others Capability is individually determined Multiple clouds for different applications - different user names and passwords. Data everywhere including sensitive data Data mining and information analytics becomes harder to do - we lose context and meaning of what content students are consuming Application interoperability becomes more complex and expensive

35 Cloud Economics Those that wait risk extinction, like DEC, Wang and Data General Cost Of Computing Cycles Late Private Cloud Adopter Low-cost Commercial (Public) Provider Early Cloud Private Adopter Customer Rationalization Value Gap 2012 Cloud Market Maturity - Years 2022

36 OECN CLOUD Technology Challenges in Education

37 A Shared K-12 Private Hybrid Cloud Currently, 22 organizations provide a majority of technology support to the state s public schools. Each of these organizations as well as other educational entities and some schools hosts its own infrastructure and provides access to and support for repetitive instances of the same or similar technologies. Building upon K-12 s robust network infrastructure combined with server and storage virtualization technologies, a Private K-12 Computing Cloud, will enable ITCs, regional entities and schools to share computing hardware and support resources. A shift to the cloud will generate reduced infrastructure costs which can be reinvested in additional applications and services for administrative and instructional technology purposes

38 OECN K-12 Cloud Service Model Cloud Software as a Service (SaaS) Administration Instructional - Accounting & Finance - Content Portals - SIS - Instructional Integration - ERP - Learning Management -Procure2Pay - Client OS Virtualization - Service Desk - Transportation - Nutrition SaaS PaaS Application OS DB BL Cloud Platform as a Service (PaaS) IaaS Server Storage - Database Hosting / Data Virtualization - Business Logic / SOAs - Identity & Access Management Cloud Infrastructure as a Service (IaaS) - VM Hosting -Storage Hosting - Disaster Recovery / Business Continuation

39 What s your view of the Cloud? Peaceful days ahead Challenging days ahead

40 Questions Ohio 2 We provide efficient, effective and secure technology that enables student learning in a 21 st Century economy that demands global competitiveness. 2 The Original Education Cloud orth@mcoecn.org young@mcoecn.org Presentation available at: