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The Government Cloud: An Opportunity for Service Providers
1.
TM
The Government Cloud: An Opportunity for Service Providers Peter Ford @PeterTFord Managing Director, Cisco Systems Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1
2.
The World of
Telecoms and IT Is Changing Rapidly From 1997… To 2010 70M Internet Users 1.8B Internet Users 1M Broadband Subscribers 500M Broadband Subscribers 200M Mobile Subscribers 2.3B Mobile Subscribers 50 PB/Month IP Traffic 8 EB/Month IP Traffic $22B Spend in E-Commerce $800B Spend in E-Commerce Sources: Ovum, Gartner, Jupiter, PWC, e-Marketer, JP Morgan, Cisco IBSG Analysis Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2
3.
Correlation Between ‘Network
Readiness’ & ‘Global Competitiveness’ Is Well-Established Switzerland 6 Denmark Correlation Coefficient: 0.98 United States 5.5 Network Readiness Index – WEF Finland 5 Japan Hungary 4.5 Mexico Chile Turkey Czech Republic 4 Brazil South Africa Argentina Poland 3.5 Russian Federation 3 Morocco 2.5 2 2 2.5 3 3.5 4 4.5 5 5.5 6 Global Competitiveness Index – WEF Source: World Economic Forum, INSEAD Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3
4.
Governments Typically Approach
Broadband in 3 Key Stages Connectivity Upgrades Services and Scaling Mainly National, Regional, National and Cities National and International and Rural Efficiency Public Administration Economic Content / Services Focus Access Focus Social inclusion Development Value Backbone Focus Stage 1 Stage 2 Stage 3 Source: Cisco IBSG Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 4
5.
Why Are Governments
Deploying Clouds? 60% 50% 50% 39% 37% 40% 30% 28% 24% 20% 10% 0% Fundamentally Change citizen Increase Reduce costs Reduce time to change business interaction transparency market model Source: KPMG “Exploring the Cloud,” May 2011 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 5
6.
Main Actions Proposed
by Recent EC Cloud Strategy European Cloud Standards Contract Terms Partnership Security, interoperabi Imbalance in Announced earlier lity, and portability contracts between this year & still in Voluntary certification cloud providers and formative stages schemes customers Determine common Harmonized metrics Model terms for SLAs/ public sector cloud for energy/water contracts requirements and use consumption and Data protection code these to shape private carbon emissions of conduct sector offerings 9 member states are now involved, and tenders will begin from January 2013 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6
7.
How Are IT
Challenges Met by GovCloud Drivers? Challenges Drivers Reduce unit cost (“more with less“) COST Control IT operating costs Reduce waste (“pay as you go") Procurement of utility services CapEx to OpEx SERVICE IT HR Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7
8.
How Are IT
Challenges Met by GovCloud Drivers? Challenges Drivers Reduce unit cost (“more with less“) COST Control IT operating costs Reduce waste (“pay as you go") Procurement of utility services CapEx to OpEx Services for employees/partners SERVICE BYOD Services for businesses/citizens Competition from XaaS Unlock value of data Security and privacy of data Centralize to better secure/manage IT HR Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 8
9.
How Are IT
Challenges Met by GovCloud Drivers? Challenges Drivers Reduce unit cost (“more with less“) COST Control IT operating costs Reduce waste (“pay as you go") Procurement of utility services CapEx to OpEx Services for employees/partners SERVICE BYOD Services for businesses/citizens Competition from XaaS Unlock value of data Security and privacy of data Centralize to better secure/manage IT complexity & silos of legacy apps IT standardization Cloud is still maturing Improve agility (“deploy in minutes") IT Transparency & SLA guarantees Improve access (“ubiquity of SaaS") HR Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 9
10.
How Are IT
Challenges Met by GovCloud Drivers? Challenges Drivers Reduce unit cost (“more with less“) COST Control IT operating costs Reduce waste (“pay as you go") Procurement of utility services CapEx to OpEx Services for employees/partners SERVICE BYOD Services for businesses/citizens Competition from XaaS Unlock value of data Security and privacy of data Centralize to better secure/manage IT complexity & silos of legacy apps IT standardization Cloud is still maturing Improve agility (“deploy in minutes") IT Transparency & SLA guarantees Improve access (“ubiquity of SaaS") Hire, retain, re-skill top talent Refocus personnel on high-value activities Interagency interoperability Assess outsourcing of certain activities HR Personal/departmental agendas Political mandate: core vs. context Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 10
11.
Which IT Services
Are the Most ‘Cloudable’? Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 11
12.
Which IT Services
Are the Most ‘Cloudable’? IT Services Portfolio Business Process ERP (HR, Finance), CRM, Case Mgmt, Supplier Mgmt, Resource Mgmt Big Data Records Mgmt & Reporting, Analytics, Simulations/Trendi ng, Open Gov Data Open Source OS, CRM/ERP, Office Apps/Email/Messaging, Big Data Web Presence Citizen & Business Services, Web Campaigns, Intranet/Extranet Development Application Development, Testing & Deployment Next-Gen Workplace Email, Office Apps, Communication & Collaboration, Video, Virtual desktop Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 12
13.
Which IT Services
Are the Most ‘Cloudable’? Infra Application Application IT Services Portfolio Facility Mngmt Dev/Deploy Runtime Business Process In-house Sourcing & Procurement Strategy ERP (HR, Finance), CRM, Case Mgmt, Supplier Mgmt, Resource Mgmt Big Data Records Mgmt & Reporting, Analytics, Simulations/Trendi ng, Open Gov Data FaaS Open Source OS, CRM/ERP, Office Apps/Email/Messaging, Big Data IaaS Web Presence Citizen & Business Services, Web Campaigns, Intranet/Extranet PaaS Development Application Development, Testing & Deployment SaaS Next-Gen Workplace Email, Office Apps, Communication & Collaboration, Video, Virtual desktop XaaS Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 13
14.
Which IT Services
Are the Most ‘Cloudable’? Infra Application Application Presentation IT Services Portfolio Facility Mngmt Dev/Deploy Runtime & Access Business Process In-house Services Sourcing & Procurement Strategy ERP (HR, Finance), CRM, Case toward Gov Application Market Place Mgmt, Supplier Mgmt, Resource Mgmt citizen & Big Data business Records Mgmt & Reporting, Analytics, Simulations/Trendi ng, Open Gov Data FaaS Open Source OS, CRM/ERP, Office Apps/Email/Messaging, Big Data IaaS Web Presence Citizen & Business Services, Web Campaigns, Intranet/Extranet PaaS Development Application Development, Testing & Services Deployment toward SaaS govuser Next-Gen Workplace Email, Office Apps, Communication & & Collaboration, Video, Virtual desktop XaaS agency Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 14
15.
How Does Cloud
Enable the Next-Generation Workplace? Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 15
16.
How Does Cloud
Enable the Next-Generation Workplace? Empowering the User • BYOD • Work-at-home/Smart Work Center • Unified collaboration (TP, WebEx, IM, Social, Mobile) “one government” • Business process outsourcing • Task workers Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 16
17.
How Does Cloud
Enable the Next-Generation Workplace? Empowering the User Cost Reduction/Management • BYOD • OpEx vs. CapEx • Work-at-home/Smart Work Center • Consolidate & centralize IT • Unified collaboration • Rapid rollout of updates, services & (TP, WebEx, IM, Social, Mobile) applications “one government” • Decrease desktop refresh/support costs • Business process outsourcing • Extend PC lifecycle • Task workers Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 17
18.
How Does Cloud
Enable the Next-Generation Workplace? Empowering the User Cost Reduction/Management • BYOD • OpEx vs. CapEx • Work-at-home/Smart Work Center • Consolidate & centralize IT • Unified collaboration • Rapid rollout of updates, services & (TP, WebEx, IM, Social, Mobile) applications “one government” • Decrease desktop refresh/support costs • Business process outsourcing • Extend PC lifecycle • Task workers IT Agility • Consistency in services • SLA guarantee for video/voice • Enable technology refresh (e.g., Win7 migration) • New department or employee on- boarding • Automated provisioning Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 18
19.
How Does Cloud
Enable the Next-Generation Workplace? Empowering the User Cost Reduction/Management • BYOD • OpEx vs. CapEx • Work-at-home/Smart Work Center • Consolidate & centralize IT • Unified collaboration • Rapid rollout of updates, services & (TP, WebEx, IM, Social, Mobile) applications “one government” • Decrease desktop refresh/support costs • Business process outsourcing • Extend PC lifecycle • Task workers IT Agility Compliance & Security • Consistency in services • Recent security exposures (virus) • SLA guarantee for video/voice • Data security • Enable technology refresh (e.g., Win7 • Business continuity migration) • New government regulations and/or security • New department or employee on- policies boarding • Automated provisioning Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 19
20.
Differentiation Through End-to-End
Orchestration of Network + IT Assets How much do you value aspects of differentiation that network / service provider can bring? (Score 1-5) End-to-end SLAs on availability &performance End-to-end SLAs SLAs Penalty clauses in case of SLA breach On-demand Provisioning provisioning across NW & IT across NW & IT End-to-end nature of SLA: “one throat to choke” Enterprise- ready billing → Delivering SLAs perceived as SP strength Integration of applications Decrease end-to-end deployment time Mobility of workloads - CPU Manage end-to-end application performance Proximity of data center Provide bandwidth-on-demand for spikes Enablement of communications features “What’s the point in on-demand ITif you cannot 2 3 4 5 Interviews w/ ~ 80 IT CXO executives from 43 Enterprises, 2009 turn up the network as well?” - VP of Infrastructure, Large Manufacturer Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 20
21.
Focus on Sustainable
Differentiation for SP Cloud Service Portfolio Cloud Plays Real-time QoS Dynamic Bandwidth Security / Privacy Network - IT Interdependency Internet plus Large-Scale Data Center Decoupled Best- (AWS, Gmail) Effort Network Variable Business Process Simple IT Complexity System Legacy / Heterogeneity IT Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 21
22.
Focus on Sustainable
Differentiation for SP Cloud Service Portfolio Cloud Plays Real-time QoS Dynamic Bandwidth Security / Privacy Network - IT Interdependency Internet plus IT Large-Scale plus Data Center SI Services Decoupled Best- (AWS, Gmail) (Desktop Outsourcing) Effort Network Variable Business Process Simple IT Complexity System Legacy / Heterogeneity IT Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 22
23.
Focus on Sustainable
Differentiation for SP Cloud Service Portfolio Cloud Plays Real-time QoS Dynamic Bandwidth Security / Privacy Integrated NW-IT HCS / TPaaS / VDI / APM / Hybrid Cloud / CDN Network - IT Interdependency Internet plus IT Large-Scale plus Data Center SI Services Decoupled Best- (AWS, Gmail) (Desktop Outsourcing) Effort Network Variable Business Process Simple IT Complexity System Legacy / Heterogeneity IT Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 23
24.
Focus on Sustainable
Differentiation for SP Cloud Service Portfolio Cloud Plays Real-time QoS Dynamic Bandwidth Security / Privacy Integrated NW-IT Integrated NW-IT Plus HCS / TPaaS / VDI / SI Services APM / Hybrid Cloud / CDN (ERP, BPO) Network - IT Interdependency Internet plus IT Large-Scale plus Data Center SI Services Decoupled Best- (AWS, Gmail) (Desktop Outsourcing) Effort Network Variable Business Process Simple IT Complexity System Legacy / Heterogeneity IT Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 24
25.
Follow Cisco IBSG
for trends and updates: Facebook - http://www.facebook.com/go.cisco.ibsg Twitter - http://twitter.com/#!/petertford Flickr - http://www.flickr.com/photos/ciscoibsg YouTube - http://www.youtubecisco.com/ibsg Slideshare - http://www.slideshare.net/CiscoIBSG LinkedIn - http://www.linkedin.com/in/ciscoibsg Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 25