PCP and PPP trends and user stories in Europe
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1 PCP and PPP trends and user stories in Europe Sara Garavelli, Trust-IT Services Shareholder & Project Manager & PICSE - Procurement Innovation for Cloud Services in Europe
2 Why public procurement matters? Every year, over public authorities in the EU spend around 18% of GDP on the purchase of services, works and supplies. 1. Implementation of New Directives 2. Austerity continues 3. Social issues 4. Value and Innovation 5. Fight against corruption 6. Capability and competence It's time to make the EU's single market fit for the digital age tearing down regulatory walls and moving from 28 national markets to a single one. This could contribute 415 billion per year to our economy and create hundreds of thousands of new jobs. 2
3 Why does the EC call for PPPs & PCPs? Public-Private Partnerships Public funds are limited Introduce private sector technology and innovation in providing better public services through improved operational efficiency Pre-Commercial Procurement PCP enables public procurers to share the risks and benefits of designing, prototyping, and testing new products and services with the suppliers Encourage companies to invest in highly qualified R&D in Europe Act as a "seal of approval" confirming the market potential of new emerging technological developments, thereby attracting new investors 3
4 PPPs key features fulfilling of a public task participation of at least one private and one public partner long-term co-operation contractual formalization of the partnership (cppp) increased efficiency (especially in the form of cost reductions) Benefits for public sector - Minimizing financial outgo - Better liquidity - Protection against technology obsolence - Efficiencies in management Benefits for private sector - Reliable streams of revenue - Low risk - Creation of employment in the development - Capturing business from related sectors 4
5 3 ongoing European PPPs in the ICT field 5GPPP aims to create the next generation of communication networks and services for providing ubiquitous super-fast connectivity and seamless service delivery ( Community-building around data achieve and sustain EU leadership on Big Data and for delivering maximum economic and societal benefit to Europe ( FI PPP aims to advance Europe's competitiveness in Future Internet technologies and to support the emergence of Future Internet-enhanced applications of public and social relevance ( 5
6 and a new one in the pipeline Building private public partnerships are the way forward 300 mill set aside under H2020 to support a PPP in cybersecurity 6
7 PCP key features PCP involves different suppliers competing through different phases of development. The risks and benefits are shared between the procurers and the suppliers under market conditions. For PCPs, risk-benefit sharing under market conditions is when procurers share the benefits and risks related to the IPRs resulting from the research and development (R&D) with suppliers at market price. Competitive development in phases 7
8 Some examples of European PCPs Cloud for Europe - public sector requirements and usage scenarios for cloud computing NYMPHA PCP of mobile ehealth services for supporting physicians and patients in the treatment of bipolar disorder TENDER AWARDED TENDER PUBLISHED 8
9 A FOCUS ON PUBLIC RESEARCH ORGANISATIONS PROCURING CLOUD 9
10 Opportunities Source Bob Jones, CERN & PICSE & HNSciCloud Coordinator
11 The Helix Nebula Initiative PPP The Helix Nebula The Science Cloud Initiative ( is a public-private partnership that has built a hybrid cloud to create a growing ecosystem for innovation. This federation includes both European public and commercial assets as a way of increasing innovation and impact the economy with public investment. Today Helix Nebula includes more than 40 public and private partners The preferred model for public research organisations is a hybrid cloud that combines in-house resources with public e-infrastructures and commercial cloud services 11
12 Example cloud services procurement CERN price enquiry (Nov 2014) for a small fraction of the resources necessary to run the ATLAS experiment simulation software Several valid responses were received and Atos (data centre in Tenerife, Spain) was awarded the contract accessed via the SlipStream broker and provisioning engine (from SixSq SME) and delivered over the GEANT network 1.2 million CPU hours over 6 weeks producing 11.5 million GEANT4 tt events with a high level of efficiency for CPU intensive workload that confirmed the use of commercial IaaS is technically feasible for simulation workloads variations in RESTful APIs can be overcome with reasonable technical effort independent monitoring of the quality of service and resources consumed is essential Driven by the success of this procurement, CERN has launched a larger procurement for cloud services to be supplied in Q and a market survey for data-intensive services leading to a tender in (deadline for submission is 19 October 2015) 12
13 The group of buyers have committed >1.6M of procurement funds Manpower for testing/evaluation Use-cases with applications & data In-house IT resources to procure innovative IaaS cloud services integrated into a hybrid cloud model Commercial cloud services European e-infrastructures Services will be made available to endusers from many research communities Co-funded via H2020 (Jan 16-Jun 18) Grant Agreement being finalised Joint PCP - HNSciCloud
14 Key objectives of the HNSciCloud PCP Design a technical architecture for the hybrid cloud that can build on the existing public and commercial developments Agree on a security model compatible with EC legislation including data protection Assemble, deploy and test a 5% scale prototype Verify the business model to ensure the hybrid cloud is economically sustainable beyond the PCP phase Set-up an inclusive governance structure where all stakeholders are represented Develop a roadmap for full-scale implementation 14
15 The role of PICSE
16 Main cloud procurement challenges What if I get locked in? What happens to my IT staff? What happens to my data? What services do I need? How do I get a good deal? What are the others doing? How can I compare contracts & SLAs? Are there relevant standards I should be How can I allocate looking into? costs? What is PCP? Many existing procurement policies do not foresee provisioning services ondemand Procuring innovative services requires new skills and competences Developing a standalone test to verify the suitability and ROI is not easy A standard legal and contractual framework does not exist Unsuccessful cloud tenders: no bidders replied 16
17 Main findings Having the right skill-set Writing an effective tender Things can be clearer for procurement of IaaS Joint procurement gives you more opportunities PROs wish list: Transparency in cataloguing services & catalogues of CSPs Cloud brokers at all levels A standalone test that could be used to verify the suitability of the services offered by the suppliers Sample templates to write public tenders Accounting of cloud resources and comparing costs supported by standards 17
18 PICSE Wizard: Cloud service procurement made easy An easy-to-use web-based service to help public research organisations make informed decisions about how to procure cloud services 2 main functions: Find the best cloud procurement model for you Assess how suitable your current procurement process is for procuring cloud services wiz.picse.eu 18
19 Closing remarks A hybrid cloud model leverages the investments made in both the public and private sectors while ensuring trust and continuity Mature open source technologies exist but integration, policy and governance requires careful attention A European Open Science Cloud will promote public-private innovation to satisfy the needs of the research communities and increase the global competitiveness of Europe s cloud service suppliers Changes to the procurement process in the public research sector are necessary to benefit from a dynamic Digital Single Market 19
20 Thank you - Questions? Contact us: Sara Garavelli 20
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