Cloud Computing Masterclass
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1 Cloud Computing Masterclass Andrew Stott Senior Consultant, TWICT formerly Deputy UK Gov CIO Washington 27 Feb 2013
2 What is Cloud Computing? 2
3 Perhaps not such a new idea? 3
4 Cloud Computing Cloud computing is a model for enabling ubiquitous, 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. NIST, US 4
5 Cloud Computing Cloud computing is a model for enabling ubiquitous, 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. NIST, US 5
6 Cloud Computing A standardised IT capability delivered via Internet technologies in a pay-per-use, selfservice way. Forrester Research 6
7 Cloud Computing: Essential Characteristics On-demand self-service Broad network access Resource pooling Rapid elasticity Measured service 7
8 Cloud is a Game Changer 8
9 One of these. 9
10 can now use one of these 10
11 or part of one of these 11
12 using only one of these 12
13 For SMEs and innovators it changes this 13
14 into this 14
15 Startups and SME users disproportionately benefit Access to enterprise-class software as a service Better security and resilience at lower cost No premises costs Fewer skills requirements Easier access to business building blocks (eg e-commerce, payment systems, CRM, ERP) 15
16 Cloud Service Models 16
17 Cloud Computing: Service Models Model Application Software Middleware (eg integration libraries, database s/w) Servers & Storage Examples Infrastructure As A Service Platform As A Service Software As A Service Consumer Consumer Provider Amazon EC2/S3 Rackspace Consumer Provider Provider Google App Engine Microsoft Azure Provider Provider Provider Google Apps Salesforce 17
18 Cloud Computing: Deployment Models Model Location Infrastructure Platform Application Public Cloud Off premises Community Cloud Off? ( ) premises Private Cloud On or off customer premises? Hybrid On and off customer premises 18
19 Benefits and Risks 19
20 Cloud Computing: Benefits Cost Saving Staff savings Resilience Business Flexibility 20
21 Cloud Computing Benefits: Cost Saving Utilisation 10-20% 80-90% Commoditisation Use of capital Scale down as well as scale up 21
22 Cost savings come from? Standardisation Simplification Sharing 22
23 Cloud Computing Benefits: Staff Saving Automated management User-led provisioning Leveraging of skills 23
24 Cloud Computing Benefits: Resilience Uptime Built-in backup and redundancy Fit-for-purpose data centres Disaster Recovery Surge Capacity 24
25 Cloud Computing Benefits: Business Flexibility Better lead-time/time-to-market Scalability Fewer infrastructure constraints Greater standardisation Variable business geometry 25
26 Cloud Computing: Benefits Benefit Stream Cost Saving Utilisation 10-20% 80-90% Commoditisation Use of capital Scale down as well as scale up Staff savings Automated management User-led provisioning Leveraging of skills Resilience Business Flexibility Uptime Disaster Recovery Surge Capacity Better lead-time Fewer infrastructure constraints Greater standardisation Variable business geometry 26
27 Issues Cyber-security ICT infrastructure Legal/regulatory framework Territoriality Vendor Lock-in Business continuity Governance 27
28 Cloud: Cyber-security Confidentiality/ Integrity Issues Shared system risks (possibly) path to internet Lack of control of entire stack Extra-territoriality Opportunities Software-maintained configuration Well-established abstraction layers Availability Dependency on connection Contention with other customers Data loss still possible Easier to handle surge in demand Basic resilience as standard More advanced resilience/recovery easier/cheaper What are the risks of the legacy system? 28
29 ICT Infrastructure issues Always-on megabit-class broadband? 80%+ coverage of system users? Good low-latency international connectivity? Trusted payment mechanisms? Sufficient potential market for localisation? Integration skills? 29
30 Regulatory Framework and Territoriality Regulation by outcome or by process/technology? Applicable law for contract? Location of data? Privacy law National security issues PATRIOT Act concerns? 30
31 Vendor Lock-In and Business Continuity What happens if the vendor goes bust? Can you get at your data To integrate with other services? To move to another supplier? Who owns the data? Can the data be used with other software? What will this mean for training? What s the Business Continuity plan? 31
32 Governance Vendor-proofing the Enterprise Architecture Information asset and contract tracking Incentivising, controlling and managing use of Cloud in the supply chain Mandating appropriate use of the Cloud by Business Units Flow of funding Controlling around the edges use of Cloud 32
33 Questions so far? 33
34 Exercise 1 34
35 Which applications are most suitable for 1. Public Cloud 2. Private Cloud 3. Not suitable for cloud at all 35
36 ? 36
37 Desktop (Docs, spreadsheet)? 37
38 Project Management? 38
39 Collaborative working? 39
40 ERP: Finance, HR, Procurement? 40
41 Sales? 41
42 Military Command and Control? 42
43 Company Register? 43
44 Railway Signalling? 44
45 Open Data? 45
46 Customer Relationship Management? 46
47 Public-facing Government Websites? 47
48 e-government systems? 48
49 Population Register? 49
50 Control systems for a nuclear power plant? 50
51 Cadastral Records? 51
52 Mapping? 52
53 Software Development and Testing? 53
54 Taxation? 54
55 E-Voting? 55
56 Review 56
57 Applications Desktop (Docs, spreadsheet) Project Mgmt Collaboration ERP: Finance, HR Sales Military Command and Control Company Register Railway Signalling Open Data Customer Relationship Management Public Websites egovernment systems Population Register Control of Nuclear Weapons Cadastral Register Mapping Software Development and Testing Taxation e-voting 57
58 The Cloud Market 58
59 What parts of the ICT market are affected? Impact Low Medium High Market size data: Forrester Research 59
60 IT Market changes New entrants in Infrastructure, Platform and Software Traditional IT players highly conflicted Telcos familiar with cloud infrastructure model For G-Clouds, PPP is a feasible model Lower barriers to entry for software providers Lower upfront capex by using cloud infrastructure Lower marketing and distribution costs Easy access to international markets 60
61 So the IT market is changing too. From. 61
62 to new players such as these 62
63 SAAS is predicted to dominate long-term Source: Forrester Research 63
64 SAAS on IAAS 64
65 G-Cloud Cloud for Government 65
66 Singapore Private IAAS 5+5 years Singtel Public IAAS 2+2 years Singtel Contracts awarded
67 Moldova M-Cloud 1 Private IAAS Existing estate Gov owned Now live M-Cloud 2 Wider range of services Public-private partnership Feasibility stage 67
68 United Kingdom Cloudstore access to public cloud services 462 suppliers (75% SMEs) 3185 services Re-compete every 6 months Accredit Once G-Host Private Data Centre/Cloud 68
69 G-Cloud Policy Drivers Save Money! but also Improve time-to-market Increase effective resilience Reduce risks in legacy datacentres Make system continuity affordable Make surge capacity affordable Break traditional IT supplier model Allow faster innovation, both IT and business Facilitate business integration Vehicle for requiring effective IT governance 69
70 Questions 70
71 Exercise 2 71
72 Some of the usual Open Data excuses It s held separately by n different organisations, and we can t join it up It will make people angry and scared without helping them It is technically impossible We do not own the data The data is just too large to be published and used Our website cannot hold files this large We know the data is wrong We know the data is wrong, and people will tell us where it is wrong We know the data is wrong, and we will waste valuable resources inputting the corrections people send us People will draw superficial conclusions from the data without understanding the wider picture People will construct league tables from it It will generate more Freedom of Information requests It will cost too much to put it into a standard format It will distort the market Our IT suppliers will charge us a fortune to do an ad hoc extract 72
73 Exercise 2 You are part of the Management Team of the IT Director of the Ministry of Drains The Government CIO is proposing that your applications should move to his new G- Cloud under his control Let s brainstorm at least 20 reasons why your applications should not move 73
74 Review 74
75 G-Cloud Issues Cyber-security ICT infrastructure Legal/regulatory framework Territoriality Vendor Lock-in Business continuity Governance No surprises here! 75
76 G-Cloud issues: Cyber-security Don t try and put everything in the Cloud But consider consolidation of remainder Accredit Once (UK Cloudstore, US FedRamp, private IAAS) allows rigorous assessment with lower compliance costs Significant proportion of the IT estate does not hold sensitive data Development and testing configurations Many public-facing systems Be realistic about state of legacy estate 76
77 G-Cloud: implications for procurement Providers tend to shape the market Requirements-led specifications may not give optimal solutions Capability-led specifications raise new issues Prime Contractor model needs to be adapted Client side integration skills important Risk allocation, not simple risk transfer Low-cost, commodity, model makes high bid costs untenable for some vendors Thick integration layer absorbs most/all of financial and non financial benefits 77
78 G-Cloud: implications for governance Is there a Central IT Office with the authority and resources to sustain a Cloud First policy? How is Cloud brought to individual Ministries/applications through the market or through a central provider? How will funding for cloud flow through the Government? What is the best structure for charging out shared assets? How will requirements be managed to avoid pushing up costs? 78
79 Cloud-ready Government? Effective cross-government ICT leadership? Effective ICT governance? Full ICT cost awareness? Standards-based approach to cyber security? Results not inputs culture? Suitable Ministry to be G-Cloud broker? Sufficient critical mass? 79
80 Questions? 80
81 Exercise 3 81
82 Getting a G-Cloud going How would you get a cloud initiative running in your Government/Sector/Region/Country? What would cloud readiness look like? Governance? Finance? Skills? Technology? Leadership? 82
83 Review 83
84 End 84
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