Technology Forecast 2013: What State and Local Government Technology Programs Can Expect - by Doug Robinson, Executive Director, National Association of State Chief Information Officers (NASCIO) - Presented by Public Technology Institute, Dec. 19, 2012

1. Technology Forecast 2013:
What State and Local
Government Technology
Programs Can Expect
Doug Robinson, Executive Director
National Association of State Chief Information Officers

2.  Fiscal recovery: budgets are
better, slow revenue State IT
growth, decline of federal
funds, fiscal cliff…? Landscape
 CIOs seeking IT operational cost
savings and alternative IT sourcing
Today
strategies and collaboration
 CIO Balancing Act: living with the
past while seeking innovation
 IT security and risk!
 IT workforce: retirement
wave, skills gap, recruiting
challenges
 State CIO transitions continue

3. General Fund Spending Grows for 3rd Straight
Year, Although Rate Declines
Annual Percent Change in General Fund Expenditures
12
10 8.7 9.4
8 6.5
(Percentage Change)
6 4.9
4 3.5 3.4
2.2
2
0
-2
-4
-3.8
-6
-5.7
-8
34-year historical average rate of growth is 5.6 percent *Fiscal 2012 numbers are preliminary
Source: NASBO Fall 2012 Fiscal Survey of States *Fiscal 2013 numbers are appropriated

4. FY 2013 General Fund Revenue is Expected
to Surpass FY 2008 by $13B
Source: NASBO Fall 2012 Fiscal Survey of States

5. 23. What percentage of your IT staff is eligible for
retirement in the next 5 years? (State Government
only)
24% A. 10%
0% B. 20%
33% C. 30%
33% D. 40%
10% E. I don’t know

6. View from the
State CIOs:
Balancing Legacy and
Innovation

7. State CIO Priorities for 2013
1. Consolidation / Optimization: centralizing, consolidating
services, operations, resources, infrastructure, data centers, communications and marketing
"enterprise" thinking, identifying and dealing with barriers
2. Cloud Services: scalable and elastic IT-enabled capabilities provided "as a service" using internet
technologies, governance, service management, service catalogs, platform, infrastructure
3. Security: risk assessment, governance, budget and resource requirements, security
frameworks, data protection, training and awareness, insider threats, third party security
practices
4. Mobile Services / Mobility: devices, applications, workforce, security, policy
issues, support, ownership, communications, wireless infrastructure, BYOD
5. Budget and Cost Control: managing budget reduction, strategies for savings, reducing or avoiding
costs, dealing with inadequate funding and budget constraints
6. Shared Services: business models, sharing resources, services, infrastructure, independent of
organizational structure, service portfolio management, service catalog, transparent charge back
rates, utility based service on demand
7. Health Care: the Affordable Care Act, health information and insurance exchanges, health
enterprise architecture, assessment, partnering, implementation, technology solutions, Medicaid
Systems
8. Legacy modernization: enhancing, renovating, replacing, legacy platforms and
applications, business process improvement
9. Interoperable Nationwide Public Safety Broadband Network:
planning, governance, collaboration, defining roles, asset determination
10. Disaster Recovery / Business Continuity: improving disaster recovery, business continuity
planning and readiness, pandemic flu / epidemic and IT impact, testing State CIO Survey, November 2012
Source: NASCIO

8. IT and Solution Priorities 2013
1. Cloud computing: software as a service, infrastructure, platform, storage
2. Mobile workforce technologies
3. Virtualization: servers, desktop, storage, applications, data center
4. Legacy application modernization/renovation
5. Identity and access management
6. Enterprise Resource Planning (ERP)
7. Security enhancement tools
8. Networking: voice and data communications, unified
9. Business Intelligence (BI) and Business Analytics (BA), Big Data
10.Document/ECM/Records/E-mail management:
active, repository, archiving, digital preservation
Source: NASCIO State CIO Survey, November 2012

9.  Management of mobile
devices and apps is fragmented
 The Cloud is more accepted
and CIOs are moving services
 Social media has a growing role
in state government
 Proper staffing is a challenge
due to budget concerns
 Driving innovation across state
business operations is often a
CIO function
© Grant Thornton LLP. All rights reserved.

10. What is the Status of IT Consolidations?
Source: NASCIO-TechAmerica –Grant Thornton LLP 2012 State CIO Survey

11. What is your state's status regarding Cloud Computing?
2012 2011
The state is already highly invested in
15% 14%
Cloud computing
The state has some applications in the
56% 35%
Cloud and is still considering others
The state is still developing Cloud
19% 47%
computing
The state has already considered Cloud
0% 0%
computing and rejected it
Other 10% 4%
States moving towards greater cloud utilization

12. What categories of services have you migrated or
do you plan to migrate to the Cloud? (select all that apply)
E-mail and collaboration 64%
Storage 48%
Geographic Information Systems 48%
Disaster recovery 44%
Program/business applications (e.g., licensing,
42%
unemployment insurance, workers' comp, etc.)
Office productivity software (e.g., word processing) 37%
Digital archives/electronic records 31%
Citizen relationship management 25%
Open data 25%
Enterprise Resource Planning 23%
Imaging 15%
Other 15%

13. Mobility

14. Based on your state government's
experience so far, what is the
general adoption level of mobile
apps?
Citizens use hardly any of our
0%
mobile apps
Citizen use of mobile apps is
16%
lower than anticipated
Citizen use of mobile apps is
34% Mobile apps adoption will
about the same as anticipated
continue to grow.
Citizen use of mobile apps is
10%
higher than anticipated
Issues remain about
Citizen use of mobile apps is enterprise direction,
8%
much higher than anticipated
architecture, security, skills,
Don't know/does not apply 32% and support.

15. In your state government, which mobile apps or services appear
to be the most popular with citizens? (select no more than 3)
Traffic, road conditions, DMV 60%
Parks, recreation, hunting, fishing, boating, outdoor activities 58%
Finding a state agency or services 26%
Other 22%
Professional license search, renewals 16%
Public safety, emergencies 14%
Tax and payment services 14%
Employment assistance (job finding) 12%
Government benefits (public assistance) 12%
Business, corporate filing search 10%
Law enforcement, corrections, parole 10%
Government contract sales, opportunities, procurement, vendor sites, auctions 8%
Government spending (budgets, accounts, outlays, expenses) 8%
Government/education loans and grants 0%

16. Expect broader adoption of BYOD and
mobile device management solutions in 2013

17. Public Safety Broadband Network:
Highlights of a Major Initiative
 Reallocated D-block portion of radio
spectrum to public safety
 Provides $7 billion in funding for
construction of an interoperable
nationwide PSBN
 Establishes First Responder
Network Authority (FirstNet) for
governance
 FirstNet must construct, maintain
and operate PSBN
 Consult with states – primary
Title VI of the Middle Class Tax Relief and Job Creation
stakeholders Act of 2012

18. Characterize the CIO's role in the recently enacted federal law
for deployment of an interoperable nationwide public safety
broadband network
Leading the state's effort as the designated point of
23%
contact
Engaged and active member of the state's
57%
leadership and planning efforts
Participating as advisor 6%
Ad hoc, will serve a supporting role as needed 12%
Not involved at this time 2%
PSBN will require more time and attention in 2013
NTIA planning grants in Q1 2013 - $135 million
Source: NASCIO-TechAmerica –Grant Thornton LLP 2012 State CIO Survey

19. Social media's value expected to rise in future
How would you rate the value of social media to your
state government as it is used now, and how it could be
used in the future?
Current
2%
10% No Value
15% 29%
Low Value
44% Medium Value
Future
High Value 0% 4%
Essential
16% No Value
41% Low Value
Medium Value
39%
High Value
Essential
Source: NASCIO-TechAmerica –Grant Thornton LLP 2012 State CIO Survey

20. Big Data not so Big…Yet

21. State Data Breaches – Loss of Citizen Trust!

22. Growing IT Security Risks in the States
Protecting legacy Inadequate policy
Malicious software
systems compliance
Use of personally-
Mobile devices and Use of social media owned devices
services platforms (BYOD) for state
business
Adoption of cloud Foreign state- Third-party
services; rogue sponsored contractors and
cloud users espionage managed services
Source: Deloitte-NASCIO Cybersecurity Study, October 2012

23. Top Five Barriers Faced in Addressing
Cybersecurity
Q20. What major barriers does your state face in addressing cybersecurity?
Source: Deloitte-NASCIO Cybersecurity Study, October 2012

24. Cybersecurity Budget Allocation (2012 vs. 2010)
Q30. What percentage of your state’s overall IT budget is allocated to cybersecurity?
A small portion of the overall IT budget is devoted to cybersecurity— most state security budgets are in the 1-
2% range.

25. A Call to Action for States: Execute on an effective
cybersecurity strategy, with strong governance and
compliance monitoring measures

26. Trending in 2013…What to Watch
Digital identity
management: federated
architecture
More social and mobile
government
Addressing health care IT:
policy, adoptions, scope
and complexity
Cybersecurity and risk
management
More IT consolidation, shared
services, cloud, collaboration