State of Idaho Cloud Computing Pilot

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From this document you will learn the answers to the following questions:

  • What type of infrastructure needs are being expanded?

  • How does Clud Cmputing reduce the state's risk expsure?

  • Who is the lead state in designing a new integrated unemplyment insurance tax and benefits system?

Transcription

1 Department f Labr Jhn A. McAllister Chief Deputy Directr State f Idah Clud Cmputing Pilt Backgrund n the Idah Department f Labr Clud Cmputing pilt prgram.

2 What is Clud Cmputing? Natinal Institute f Standards and Technlgy defines clud cmputing as a mdel fr enabling cnvenient, n-demand netwrk access t a shared pl f cnfigurable cmputing resurces netwrks, servers, strage, applicatins and services that can be rapidly prvisined and released with minimal management effrt r service prvider interactin. Why shuld the Department/State adpt Clud Cmputing? Cst Savings: The Department f Labr has a highly seasnal peratin with peak wrklad in the winter. Under the current mdel the department must build sufficient autmated infrastructure t handle the peak winter lad. The infrastructure sits idle r with minimal use during the remainder f the year. Other agencies have similar seasnal needs. With Clud Cmputing the state wuld pay nly fr what it used. The Department f Labr s csts wuld drp dramatically during the summer. There shuld als be savings as a result f reduced staff fr installatin and maintenance f infrastructure. Netwrk csts are likely t increase, but the absence f capital expenditures n infrastructure shuld mre than cver that increase. Scalability/Rapid Elasticity: Shuld the department s infrastructure r the state s infrastructure needs suddenly expand r cntract, Clud Cmputing allws the state t rapidly acquire greater infrastructure capacity r rapidly fflad excess capacity. The current mdel des nt allw that. Currently, there is n way t recver frm a sudden unexpected drp in cmputing needs, and acquiring additinal infrastructure takes extended perids fr prcurement and installatin. Clud cmputing allws fr almst instant adjustments. With Clud Cmputing the state can unilaterally and autmatically prvide cmputing capabilities such as server time and netwrk strage as needed withut invlving each service s prvider r prcedures such as the state s prcurement prcess. The Department f Labr is currently the lead state in a fur-state cnsrtium designing a new integrated unemplyment insurance tax and benefits system. Cnstructin f that system will begin in the fall f The design will allw ne r mre states t hst the system fr ther states. If the Idah Department f Labr were t hst the system fr ther states, the rapid elasticity f Clud Cmputing wuld be critical t its success. Security: Cmputer security is cmplex. Large cmpanies in the private sectr spend large sums hiring experts and purchasing sphisticated and cstly sftware and hardware t prtect their autmated systems. The state f Idah cannt pssibly cme clse t that level f prtectin. The state is a relatively small rganizatin with very few true security experts. Using a large Clud Cmputing vendr that has highly qualified security persnnel and extensive security infrastructure greatly reduces the state s risk expsure. It s a huge imprvement ver what we are able t d alne. Disaster Recvery/Business Cntinuity: Much f the state s autmatin has little r n capacity fr disaster recvery r business cntinuity. That has happened because under the current Page 1 f 6

3 infrmatin technlgy mdel emplyed by the state, disaster recver/business cntinuity is very expensive. The Department f Labr has devted substantial sums building this capacity but has nly partially met the need. Using a large Clud Cmputing vendr such as Micrsft r Ggle autmatically slves the prblem. Micrsft has a half dzen data centers in Nrth America and wuld huse the state s data in mre than ne center. If ne center fails, anther takes ver. Clud Cmputing represents a near perfect slutin t a prblem we have been wrking n fr decades. The taxpayers will be much better served under Clud Cmputing shuld we suffer sme unfrtunate event that wuld disrupt ur autmatin. Missin Fcus: The department and the state f Idah as a whle devte a lt f persnnel time t infrastructure installatin and maintenance patching perating systems, patching sftware, replacing brken equipment t name just a few f the tasks at hand. Using Clud Cmputing will fflad that effrt t the clud vendr, allwing the state t refcus that infrastructure effrt twards activities mre directly related t the missin f state gvernment. In the department s case, the infrastructure effrt wuld be redirected twards enhancing autmated systems that serve unemplyment insurance claimants, jb applicants and ther clients. Skills shrtage: Many f the skills required fr infrastructure installatin and maintenance as well as infrastructure security are nt in abundant supply. In sme areas such as mainframe technical services, there are extreme skill shrtages. Using Clud Cmputing allws the state t fflad that prblem t the clud vendr. The clud vendr is als in a much better psitin t cmpensate prperly t attract and retain persnnel with skills that are in shrt supply r t develp prgrams t help emplyees acquire thse skills. That better psitin is largely the result f ecnmies f scale and having highly skilled staff benefiting a much larger audience than wuld be pssible fr the department r the state individually. Actins that are nt ecnmically feasible fr the state make perfect sense fr the large clud vendr. Sftware/Hardware Maintenance: Patching perating systems and sftware ften results in prblems with ther sftware. Vendrs prducing thse patches g t great lengths t test them, but they cannt pssibly fresee every user hardware/sftware cnfiguratin. The ften heard accusatin f vendrs using their custmers t debug their sftware is an utgrwth f that and f the current infrastructure mdel emplyed by the state f Idah and mst ther infrmatin technlgy rganizatins. Clud Cmputing minimizes that prblem because the sftware runs in a standardized envirnment that can nly be mdified by the vendr. The clud vendr can test sftware changes fr his clud envirnment and minimize subsequent prblems as a result f patching. Als, hardware maintenance is handled mre efficiently and less cstly by the clud vendr. Large clud vendrs purchase hardware in much larger quantities than the state f Idah r a single department can. As a result their hardware csts are greatly reduced. In additin, the clud vendrs have skilled hardware technicians wh specialize in specific aspects f their infrastructure as ppsed t the state s r department s need t have generalists peple wh knw smething abut a number f infrastructure aspects. As a result, clud vendrs can slve Page 2 f 6

4 hardware prblems much faster than we can. In fact, much f their infrastructure is designed t identify prblems befre they happen s that crrective measures can be taken befre any disruptins ccur. The skills required t design and maintain such sphisticatin are far beynd anything the state f Idah r a single department can affrd. State f the Art: Many infrmatin technlgy rganizatins are way behind the curve in maintaining current versins f sftware. This is ften the case because upgrading sftware creates new prblems and peratinal disruptins that mst rganizatins want t avid. Failing t make thse upgrades eventually causes even larger disruptins when the unpatched sftware is cmprmised r fails entirely. With Clud Cmputing the clud vendr takes care f upgrading sftware. The clud vendr als has the prper incentive t minimize disruptins caused by upgrades. The current infrastructure mdel places mst f the risk fr upgrades n the custmer. Vendr Incentives: One f the mst cmpelling reasns fr mving t Clud Cmputing has been mentined previusly. Since mst clud vendrs guarantee availability and reliability f their sftware r platfrm, they have a strng incentive t fully debug sftware befre deplying it. Prblem sftware csts them directly instead f just being an irritant t custmers. Clud vendr revenues are based n custmer use. The custmer cannt use anything and thus pays nthing if the sftware r platfrm has failed. Prblem sftware als hurts the vendr s cmpetitive psitin in a new market that is prbably ging t expand expnentially in the next decade. Custmers will quickly abandn an unreliable clud vendr. Clud Cmputing des a superb jb f aligning the vendr s incentives with the custmers interests. What are the bstacles t adptin f Clud Cmputing? Experience: The state f Idah has little r n experience with Clud Cmputing. The best way t address that is t start a pilt f Clud Cmputing. The Enterprise Services Oversight Cmmittee has recmmended that the Idah Department f Labr be allwed t begin such a pilt. The Department f Labr is develping a plan fr that pilt and will share everything learned with the versight cmmittee and the Department f Administratin. The state needs t start smewhere, and islating the impact t a single department while als giving the clud a rigrus wrkut seems the wisest curse f actin. Labr vlunteered t d this pilt and is cmmitted t the prject. The clud vendr used in this pilt will be Micrsft. Labr is especially interested in Micrsft s applicatin develpment platfrm, Azure. Security: The Department f Labr and the state f Idah handle a substantial vlume f cnfidential infrmatin. The current infrastructure mdel depends n each agency fllwing gd security prtcls in rder t prtect that infrmatin. Unfrtunately sme agencies d nt have the persnnel with the expertise needed fr gd security nr have they dne the requisite training t ensure that staff are fllwing existing security guidelines. As stated previusly, clud vendrs are much better prepared t safeguard autmated assets than the state f Idah. They have mre knwledgeable staff and better security sftware. Page 3 f 6

5 Nevertheless, Clud Cmputing security will be evaluated in the pilt by the Department f Labr. Widespread use f data encryptin will als be evaluated in the pilt. Netwrk Capacity: If Clud Cmputing custmers cannt access sftware n the clud because their netwrk cannt handle the lad, then Clud Cmputing is basically wrthless. As a result, a detailed evaluatin f netwrk requirements will be part f the Department f Labr s pilt prgram. The department is beginning this pilt with the belief that its netwrk is likely t require sme upgrades in sme lcatins. Custmer Infrastructure: Fr the last five years r s, the Department f Labr has been experimenting with thin clients where the sftware runs n a central server and the lcal device is primarily just a display f that server sftware s user interface. The lcal device thus has n hard drive and very little memry. It is inexpensive. In rder t use the Micrsft clud the department will need t revert sme staff back t PCs. The client cmputers lcated in all f ur lcal ffices will remain thin clients fr security reasns. We have already identified resurces fr the new PC s. Frtunately the PC s needed fr the MS Clud are nw almst as inexpensive as the thin clients were when we started using them. It represents a burden fr the department, but the general cst benefit frm Clud Cmputing shuld be much greater. Dependence n Vendr: Many peple are cncerned that investing heavily in Clud Cmputing will leave the state dependent n a single vendr. Obviusly such dependency culd prve dangerus if the vendr were t g bankrupt r quit Clud Cmputing entirely. Hwever, many entities including the Natinal Institute f Standards and Technlgy, which is part f the U.S. Department f Cmmerce, are wrking t develp standards fr Clud Cmputing. Such standards shuld ease mving frm ne vendr t anther. In additin, there is a lt f cmpetitin amng cmpanies eager t get int the Clud Cmputing business. It is unlikely that the state wuld nt have a chice f vendrs. Fundamentally, the state is already dependent n ne vendr since the state s sftware standard is Micrsft. Prcurement: The Department f Administratin is unsure whether we can use the existing state cntract with Micrsft t purchase clud cmputing services. If it is determined that the existing state cntract cannt be used, the Department f Labr will immediately begin wrk n a frmal Request fr Prpsals. Internet Fail Over: The State s cmmunicatins netwrk des nt currently have an autmatic failver t a secndary Internet service prvider in case f the failure f the primary prvider. That capability is currently under cnstructin and shuld be available by the end f September. The Department f Labr has vlunteered t assist financially and therwise in getting this fail ver mechanism in place. What is the pilt prgram timeframe? The Exchange/ SharePint/Office Live Meeting/Office Cmmunicatins pilt n Micrsft s clud will take place ver the next 14 mnths. Page 4 f 6

6 The first phase f the pilt will invlve sftware as a service specifically . Micrsft s e- mail clud ffering (MS Exchange) will be functinally cmplete within three mnths. It will include archiving and integrated vice messaging tw functins currently used by the Idah Department f Labr but nt available in the state s central messaging initiative. In rder t migrate t the MS Exchange in the clud, we will need t upgrade ur lcal servers t Exchange After that upgrade is cmplete, we can cnnect ur lcal exchange servers t the MS Exchange clud servers by implementing Active Directry Federatin Services. At that pint we will migrate a test grup f department users t the clud. Once we knw the migratin wrks and all prblems have been reslved, we will mve the entire department t the clud. We believe that prcess will be cmplete in six mnths. At that pint we will begin preparatins fr migrating t the MS Clud fr Office Cmmunicatins Services, SharePint and MS Office. Within tw years Micrsft claims that it will have virtual server capabilities in its clud where we can use clud resurces such as database servers as if they were lcal devices. The department believes it can save substantial sums n capital expenditures and can imprve perfrmance dramatically as a result. During that same perid the Department f Labr will be explring Clud Cmputing using the Micrsft s Azure platfrm t: Build a simple pilt applicatin t test availability f department applicatins frm utside ur envirnment. This applicatin will prvide a lw-risk prf f cncept and lw-vlume real transactins. Cnvert the Jb Search Web service t run in the Azure envirnment. This is under way and shuld be ready t pilt in August. Evaluate actual csts based n transactins frm trial applicatins. Sme free service is included with existing MSDN subscriptins. Review the activity reprts that Azure prvides t ensure transparency int system usage and crrespnding csts. It is imprtant t evaluate what actual csts are likely t be befre we turn n an applicatin such as jb search, which will quickly becme high vlume. Research Azure data security and cnfidentiality t ensure that cnfidential data culd be hused n SQL Azure servers. Brader use f this envirnment will require that this questin is answered unambiguusly. Research SQL Azure administratin strengths and weaknesses. Review backup and restre prcedures as well as csts assciated with saving and transferring backup files int and ut f the clud. Prepare a reprt evaluating Azure in several key areas including: Page 5 f 6

7 Perfrmance and Scalability; Changes required t applicatin architecture; Deplyment and Applicatin Supprt and Management; Security and Encryptin; Data cnfidentiality; Administratin f SQL servers; Limitatins. The Department f Labr is currently a lead state in a fur-state cnsrtium whse missin is t develp an integrated, web-based unemplyment insurance tax and benefit system. The design phase is currently in prcess and shuld be cmpleted by September In Octber 2011 the cnstructin phase will begin, and the department intends t build that system n Azure. What is the lng-term impact f Clud Cmputing n the Department and State? Clud Cmputing will likely becme pervasive in the future. Offlading s many headaches t vendrs at what currently appears t be very lw cst will be difficult fr cmpanies and gvernment agencies t resist. Clud Cmputing tday is ften cmpared t the advent f electric utilities. Wh tday wuld even dream f ding Idah Pwer s jb fr them. Mst f us wuld just as sn let the experts handle electricity generatin, leaving us t fcus n ur real missin prviding services. Clud Cmputing will likely fllw the same path. Hwever, smene in state gvernment needs t manage the cntractual relatinship with the clud vendr. Currently the Department f Administratin manages the relatinship between state agencies and Qwest n the IDANet successr netwrk. Fllwing the same strategy with the clud vendr wuld seem like a reasnable apprach. The Department will keep a lg f prject activities during the year and will cntinue t invite representatives frm ther agencies t participate in the prject. The Department f Labr will create a final reprt n this pilt prject by the end f September, In rder t cmpare the clud with the State s existing central messaging facility, the Enterprise Services Oversight Cmmittee will prvide a set f perfrmance metrics that Labr will seek t generate frm its clud-based peratin. What vendrs are ffering Clud Cmputing services? Current vendrs include Micrsft, Amazn, Ggle, HP, IBM, EMC, Salesfrce, Skytap, AT&T, GGrid, NetSuite, Platfrm, Rackspace, Cmputer Sciences Crp., RightScale, Unisys, Accenture, VMWare, Cmputer Assciates, 3Tera, Eucalytpus and Verizn t name mre than a dzen. Numerus ther cmpanies are preparing t enter the cmpetitin. Obviusly all f these vendrs are making substantial Clud Cmputing investments in rder t secure a rle fr themselves in what they view as the future f infrmatin technlgy. Page 6 f 6

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