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
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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
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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
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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
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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
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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
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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
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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
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11.
Which IT Services Are the
Most ‘Cloudable’?
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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
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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
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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
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15.
How Does Cloud Enable the
Next-Generation Workplace?
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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
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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
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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
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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
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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
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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
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25.
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