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50 Years of Growth, Innovation and LeadershipSmarter Computing to Support 21st Century GovernanceTransforming IT Infrastructures to Meet Critical Imperatives A Frost & Sullivan White Paper Brian Cotton, PhD www.frost.com

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Frost & Sullivan Abstract........................................................................................................... 3 An Opportunity For a Smarter Government .................................................. 3 A Smarter Computing Approach to Support 21 st Century Governance ................................................................................ 6 Meeting Government IT Needs With Smarter Computing ............................. 10 A Smarter Way to Build Better Government ................................................. 14 References ...................................................................................................... 16 CONTENTS

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Smarter Computing to Support 21 st Century GovernanceABSTRACTAmid fiscal restraint, government agencies around the world are transforming theirorganizations to be more responsive to the challenges facing them. Thistransformation is guided by four governance imperatives: (1) improving citizen andbusiness outcomes, (2) managing public resources effectively, (3) strengtheningsafety and security, and (4) ensuring a sustainable environment. These imperativesplay out across all the domains of governance, including education, healthcare,transportation, utilities, national defense, and public safety. The informationtechnology (IT) applications and operations that support these imperatives placesubstantial workload demands on IT infrastructures. Traditional government ITsystems are built to handle a single workload in a single agency, but are unable tohandle the workloads effectively or efficiently, thus impeding a government agency’sability to deliver on its imperatives.Government CIOs need guidance to help them transform their IT infrastructuresto deliver on these imperatives. Smarter Computing, a new approach to transformIT infrastructures, is based on three fundamental capabilities: Designed for Data,Tuned to the Task, and Managed in the Cloud. Smarter Computing enables ITinfrastructures to handle multiple types of data for advanced management andanalysis applications, by using IT components optimized to the workloads placed onthem, to support a variety of service creation and delivery models.Meanwhile, leaders in every industry are adopting Smarter Computing to addressthe challenges they face and opportunities presented by a Smarter Planet, and IBMis helping some of them to implement the approach.Governments that are embracing Smarter Computing are delivering on theirimperatives, and are realizing performance and economic benefits from theirtransformed systems. Examples from the Potsdam Institute for Climate ImpactResearch, and Caisse Nationale dAllocations Familiales to Miami-Dade County andthe City of Norfolk demonstrate the benefits of using this approach. Theseorganizations have been able to modernize their IT infrastructures to accommodatenew governance services, to extend powerful computing resources to otheragencies and jurisdictions, and to identify and eliminate fraud in benefits programswhile improving the outcomes of their citizen clients. At the same time, they arerealizing significant capital expense, maintenance, and cost savings by using aSmarter Computing approach.AN OPPORTUNITY FOR A SMARTER GOVERNMENTThis is a pivotal time for governments because the world is changing rapidly.Globalization is making government agencies and jurisdictions ever more socially,politically, culturally, and economically interdependent. Demographic compositions frost.com 3

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Frost & Sullivan are shifting, with populations in some countries getting older, while others are getting younger. The natural environment is changing and leaders are realizing what “The 21 st century the planet is able to provide, and what it can no longer tolerate. An assortment of economy is all about threats, from armed conflicts that cross national borders, to terrorism, disease, and speed, access, increasingly fierce natural disasters, are facing us. intelligence, and efficiency. A 21 st Underlying all this is an economic climate that dictates how governments adapt to century government the changing world. In the developed economies, diminished tax revenue and record needs to be about deficits are stressing government funding and putting some in substantial deficits. the same things” Globally, the Organization for Economic Cooperation and Development (OECD) is estimating the aggregate budget deficit is 7.5 percent 1, while some countries are —Jennifer Granholm, running deficits well into double digits. In the United States, the Government former governor Accountability Office (U.S. GAO) has painted a stark picture of the situation, stating of Michigan “the fiscal position of the (government) sector will steadily decline through 2060, absent any policy changes.” 2 Some U.S. state and local governments are in a crisis as financial problems force them to suspend services, as recently happened in Minnesota. 3Governments are being forced to become leaner, more efficient, and more effective amid fiscal austerity. Governments in emerging market countries are obligated to modernize their operational models to meet citizen demands for new services, and some are implementing eGovernment systems as part of their strategy. 4 This is enabling them to inject flexibility into their operations and quickly scale to expand the reach of public services when needed. 5 China, for instance, is increasing its spending on eGovernment programs at the local and regional government levels 6, and similar spending is planned by the government of India 7 and the Kingdom of Bahrain. 8 In both settings, governments are transforming themselves to be smarter and take advantage of the forces of change. Jennifer Granholm, the governor of Michigan from 2003 to 2011, called on her peers to recognize and embrace this opportunity. “The 21 st century economy is all about speed, access, intelligence, and efficiency. A 21 st century government needs to be about the same things”. 9 In this new world, traditional silo-based models of governance are shifting to newer collaborative models that enable government to rapidly and efficiently develop, implement, and manage services. These collaborative models place government in a system that facilitates the interaction between internal agencies and the external private sector, including communities, academia, nongovernmental organizations (NGOs), and foreign governments at the national level. At the core of this is a move toward sharing intelligence and analysis, with speed based on real-time data access and analysis, and capabilities that are optimized to specific domains or functions of government—all running at a high level of efficiency. 4 frost.com

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Smarter Computing to Support 21 st Century GovernanceThe transformation to a 21 st century government is guided by a set of four criticalimperatives linking into multiple government domains, as illustrated in Figure 1. • Improve citizen and business outcomes: Enhance social and business services with a citizen-centric focus, while reducing operational costs and maximizing taxpayer value • Manage public resources effectively: Strengthen analysis, intelligence, and planning to improve program management and sharpen insight into and control over operations • Strengthen security and safety: Enable defense, law enforcement, and first responder agencies to improve situational awareness, speed decision- making, and increase speed of command • Ensure a sustainable environment: Use energy conservation and efficiency, improve transportation management, and develop renewable resourcesGuided by these imperatives, a government becomes a smoothly functioning systemthat 1) promotes economic growth by streamlining and simplifying processes andreporting requirements, 2) delivers citizen-centered services in offices that addressmultiple types of services, and 3) provides high-demand transactions over theInternet. These imperatives play out at all levels of government, and will be mostacute at the urban level, where the interplay between stakeholders is particularlyclose in cities with steadily increasing population growth and density. 10Figure 1: Critical Imperatives Guiding Government Transformation Improve Citizen & Business Outcomes Manage Public Resources Effectively • Social Benefits and Service Delivery • Social Benefits and Service Delivery • Education • Education • Healthcare • Healthcare • Tax and Revenue Management • Tax and Revenue Management • Transportation Management • Transportation Management • Public Safety • Public Safety • Water and Sewer Management 21st Century Government Ensure a Sustainable Environment Strengthen Security & Safety • Transportation Management • Customs and Immigration • Power Management • Border Management • Water and Sewer Management • Public Safety • Defense Network Centric Operations Source: Frost & Sullivan analysis and IBM frost.com 5

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Frost & Sullivan Governments that are transforming to collaborative models need an IT infrastructure that supports them. Traditional government IT infrastructures were designed on a “one agency-one architecture” silo model, mirroring the operational structure of government itself. These IT systems typically do not interoperate well, and as they are aggregated across agencies and jurisdictions, these silos of IT infrastructure can result in underutilized assets and redundant software, which increase capital and operational costs. “IT in my state was Public sector CIOs and IT planners need to be creative when redesigning their IT developed inside infrastructures to reduce the administrative overhead while maintaining high levels out, so that 19 state of performance. In mature market countries, this presents a conundrum, because agencies have 19 while many government CIOs recognize a need to transform their IT data centers and infrastructures, most are faced with IT budgets that are being cut back, remaining every county has its flat, or are at best growing only slowly. 11 Here, the opportunity of a tight budget can own network. . . . stimulate creative solutions for increasing IT efficiency and effectiveness. 12 As one there’s a lot of state government CIO put it, “IT in my state was developed inside out, so that 19 money to be saved state agencies have 19 data centers and every county has its own network... there’s in having just one a lot of money to be saved in just one network for all of them.” 13 In emerging market network for all of countries, the CIO’s opportunity is to design systems according to state-of-the-art them.” approaches. In both cases, government CIOs need support to transform their IT infrastructures, and Smarter Computing can guide them through the process. —U.S. state government CIO A SMARTER COMPUTING APPROACH TO SUPPORT 21 st CENTURY GOVERNANCE Smarter Computing is a new approach to transform IT infrastructures to perform better in today’s complex and interconnected world. This approach is based on three fundamental capabilities: • Designed for Data means designing an IT infrastructure to harness all available information, including real-time streaming data, to unlock insights for better decision-making. It is about extending beyond traditional sources of data to generate insights by leveraging new forms of information, which can be incorporated into a government organization’s information supply chain to create a single version of the truth, simplify data security, and get insights from huge volumes of data, while reducing operating costs. • Tuned to the Task means matching workloads to systems that are optimized to the workload characteristics, including transaction processing, database management, business intelligence, analytics, managing cross-domain communications, and enabling complex modeling. Optimizing systems to the workloads enables greater performance and efficiency, helping government CIOs working under constrained IT budgets to deliver services cost effectively. 6 frost.com

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Smarter Computing to Support 21 st Century Governance • Managed in the Cloud means evolving government data centers to support a variety of business models and service delivery methods that bring greater efficiencies out of existing IT assets, deploy resources flexibly and quickly, and reduces costs. Ultimately, it increases efficiency, rapidly delivers services, and adds more degrees of freedom to government CIOs to deliver on eGovernment initiatives.Smarter Computing supports government IT infrastructure transformation bycreating a technology framework to support the IT applications and operations thatdeliver on the four key imperatives. These applications and operations revolvearound how data is collected, processed, analyzed, stored, and shared. The ITinfrastructures running these applications are subjected to various types of Smarter Computingworkloads and processing tasks (as summarized in Figure 2), which cannot be supports Smartereffectively or efficiently handled by traditional government IT infrastructures. Government by creating aFigure 2: 21 st Centur y Government Imperatives and their technologyIT Infrastructure Workloads framework to Workloads support a on the IT Government User Integrated Access & Operations collaborative, Infrastructure Improve Citizen & Manage Public Strengthen Security Ensure a Sustainable shared-service Front Office Business Outcomes Resources Effectively & Safety Environment Business Process Social Benefits and Service Social Benefits and Service Customs and Immigration Transportation Management operational model Delivery Management, Database Education Delivery Education Border Management Public Safety Power Management Water and Sewer that delivers on Healthcare Healthcare Defense Network Centric Management Management, Tax and Revenue Management Tax and Revenue Management Operations the four key Business Transportation Management Intelligence Transportation Management Public Safety Public Safety imperatives of Water and Sewer Management 21 st century government. Back Office Transaction Process Automation Processing, Event Processing Simulation Models Data Analysis Transaction Processing Simulations & Analytics, Data Storage And Management Information Physical World Interfaces (Sensors, Systems, Devices) & Data Acquisition Management Control Data Edge of System Sensors & Controls, Cross-System Data Feeds, Communications Transportation CCTV Water Public Public service Energy Other stakeholders infrastructure and video supply and and private staff and supply and (e.g., agencies, and services infrastructure management buildings resources management NGOs, private sector) Source: Frost & Sullivan analysisGovernment CIOs can use Smarter Computing to design IT infrastructures tohandle massive amounts and varieties of data needed by applications andoperations. Different workloads have different characteristics, and by emphasizingoptimized systems Smarter Computing encourages efficient infrastructure designsthat are flexible enough to meet peak level workload demands, and enable frost.com 7

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Frost & Sullivan resources to be deployed elsewhere during off-peak periods. Smarter Computing’s cloud capabilities facilitate the rapid deployment of new services, and can integrate The Alameda County services and data across government agencies to provide a unified view of insights Social Services and enhance collaboration. Importantly, the approach gives CIOs control over Agency implemented capital and operational expenditures because existing IT infrastructures can be a Smarter transformed, and need not be completely replaced. By using Smarter Computing, Computing approach government CIOs can transform their IT infrastructures to effectively and and realized almost efficiently enable the imperatives of 21 st century governance. $25 million in savings annually. Improving Citizen and Business Outcomes Improving citizen and business outcomes relies on a set of applications and operations —Nucleus Research to provide the right level of services to citizens and businesses. These include: • Shifting records from paper to digital formats • Creating and maintaining an accurate, single view of the citizen or business entity • Support citizen or business self-service • Using analytics to ensure proper citizen-to-service match • Using analytics to detect fraud, and • Ensuring data security and access according to established protocols In social benefits administration, for instance, a Smarter Computing approach would prepare an IT infrastructure to handle all the data for its citizen clients, wherever and in whatever format it resides. As well, it would enable master data management (MDM) techniques to create the single-view record of the citizen, provide authorized access to parts of that record across an agency, and apply analytics to match the appropriate level of benefits with the citizen and to detect instances of fraud, all while ensuring the identity of the citizen and his or her personal data is kept secure. This can improve the level of services delivered to the citizen, and improve the management of public resources allocated to an agency. The Alameda County Social Services Agency, for example, found these benefits when it implemented Smarter Computing to create a single view of its clients, and applied analytics to its benefits payment operations to ensure its clients were given the proper level of benefit assistance. As a result the agency saves almost $25 million annually by reducing benefit overpayments. 14 Manage Public Resources Effectively Managing public resources effectively means not only improving data management and analysis, but also improving the efficiency with which services are created and delivered, which are realized in lower costs. This imperative uses the same set of IT applications and operations as does improving citizen and business outcomes, and 8 frost.com

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Smarter Computing to Support 21 st Century Governanceadds asset management, tracking, and maintenance, and analytics applicationsto ensure a proper resource to service match. The efficiency advantage of SmarterComputing for this imperative lies in using systems optimized to the variousIT workloads, and because Smarter Computing infrastructures are cloud-enabledthey can operate with multiple delivery models, including shared-servicearrangements. Moreover, Smarter Computing enables consolidation andvirtualization, allowing flexible and scalable resource deployment in the eventof unanticipated or unknown workload demands. Cloud capabilities also improvethe economics of service creation and delivery. North Carolina State University(NCSU), for instance, adopted this approach to address an unanticipated growth indemand for its computing resources. By using Smarter Computing, NCSU was ableto extend its resources to other educational institutions in North Carolina,increasing the average number of students served per license by 150 percentwithout incurring any additional capital expenses. 15Strengthen Safety and Public SecurityStrengthening safety and public security involves the paper-to-digital-record shift,single view, and data security applications and operations that are in the previousimperatives, as well as others, including: • Analysis of streaming data for event detection and prediction • Communication coordination across jurisdictions and agencies • Analysis for real-time incident detection and incident and event prediction, and • Cross-domain data feeds and sharingIncreasing traffic safety and providing rapid responses to traffic incidents, forinstance, relies on accurate data collected from a variety of sources, and making itavailable for analysis to enable security commanders to evaluate the situation,assess the risks to the public and officers, and then deploy the appropriatepersonnel. Traditional methods of data collection often involve manual processes,and the data is seldom easily accessible or amenable to rapid analysis. A SmarterComputing approach to increasing traffic safety would enable a single IT platformto centralize traffic data collection, using automated sensors and video feeds, andintegrate analysis and reporting applications available to all commanders andofficers who need to act on the data. To illustrate this, the Inner Mongolia PublicTraffic Police Detachment, a governmental traffic administration agency serving thecitizens of Inner Mongolia in northern China, implemented Smarter Computing toenhance its ability to respond to traffic data processing. By using the approach, theagency reduced data collection times from an average of 10 days to only fourhours—a 95 percent improvement. Moreover, because traffic data collection isaccelerated, the agency is able to reduce its monthly processing costs and improvetraffic services and citizen satisfaction. frost.com 9

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Frost & Sullivan Ensuring a Sustainable Environment The governance imperative of ensuring a sustainable environment complements the other imperatives. Often, concerns over making sure large-scale physical infrastructures, the agencies that manage them, and the citizens they serve all operate to minimize impacts on the environment and conserve natural resources. Applying Smarter Computing to the digital infrastructures that run the physical infrastructures can help governments protect the environment. The IT applications and operations involved here include 1) citizen self-service; 2) asset management, tracking, andThe Potsdam Institute maintenance; 3) the analysis of streaming data for event detection and prediction; 4) for Climate Change cross-domain data feeds; and 5) communication coordination across agencies. uses Smarter The requirements for extreme weather event prediction and warnings used byComputing to provide public safety agencies, for instance, place heavy workloads for database advance warning of management, analytics, sensors and controls, communications, and complex extreme weather modeling on a weather agency’s IT infrastructure. Because of the cost in lives, events at 30 times property, and disruption that a severe weather event can cause, it is critical that the performance and predictions are accurate and provided on a timely basis across multiple agencies. 25 percent less The number of agencies and the volume and variability of the data needed make this energy consumed massively complex. Traditional infrastructures cannot adequately handle the than traditional IT multiple, interdependent workloads tied to performing the service without large architectures would investments in IT equipment, energy to power and cool it, data center floor space allow. to house it, and manpower to maintain it. —IBM Case Study The Potsdam Institute for Climate Change in Germany (Potsdam Institut fur Klimafolgenforschung, PIK) models and predicts climate for the German government with a consideration for extreme weather events that arrive with little warning and last for comparatively short durations. The extremely complex calculations that PIK needs to perform this service require an IT infrastructure that delivers extremely high performance and reliability, while cost-effectively managing huge amounts of weather data. PIK was unable to provide this service efficiently using its traditional IT architecture. Instead, PIK used a Smarter Computing approach to design a workload-optimized, multisystem IT architecture able to provide the crucial prediction and advanced warnings capabilities at 30 times the capacity of its traditional architecture, while consuming 25 percent less energy than would have been the case. 16 MEETING GOVERNMENT IT NEEDS WITH SMARTER COMPUTING A Smarter Computing IT infrastructure is designed to handle all types of data to improve insight and management of government domain operations. Such an infrastructure also is optimized to efficiently handle the complex workloads placed on it, and has the flexibility to support multiple service delivery models in a 21 st century government. Government agencies that are embracing Smarter Computing are delivering on the imperatives of 21 st century government, and are enjoying the benefits from using the approach. 10 frost.com

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Smarter Computing to Support 21 st Century GovernanceCaisse Nationale dAllocations Familiales: Improving Citizen Outcomesand Increasing Environmental SustainabilityCaisse Nationale dAllocations Familiales (CNAF) is a French government agencyproviding social benefits and assistance to families living in France and its overseasterritories. The agency wanted to improve the speed at which it handles benefitsprocessing, sharpen its visibility into applicants’ requirements, and modernize itsoperations by shifting much of its administration from paper-based to digital processes.CNAF worked with IBM to apply Smarter Computing to redesign its IT infrastructureto better cope with disparate forms of benefits data, to optimize data centers to speedthe processing of benefits information, and to put all services online to better meet theneeds of its clients. Smarter Computing not only helps CNAF improve the outcomesof its clients, but also helps minimize its impact on the environment.Growing Workloads Slow Services for CitizensThe CNAF is a large social services agency employing 30,000 people at 123locations that provides benefits and assistance to 12 million families, students, andlow-income individuals, and manages more than €50 billion in public resourcesannually. For most of its history, CNAF has relied on a painstaking set of processesto examine a number of eligibility factors for each case and matching them to theappropriate level of benefits, while checking other accounting and legal practices tolimit fraud. This manual, paper-based process involves multiple departments, andrequires applicants to make several in-person visits to crowded agencies, and then The CNAFwait up to four months to have their applications confirmed. Moreover, the agency’s implemented areliance on paper forms places a burden on the environment. As the number of smarter Computingapplications increased in the wake of the economic recession, CNAF needed a way approach to itsto slash the processing time and efforts, while vastly extending the access to social benefitsservices beyond the traditional agency locations, and still provide a high level of processing, cuttingservice and responsibly to manage a significant amount of public funds. wait times from four months toImplementing a Holistic Smarter Computing Architecture one week, reducingRecognizing a need to build an advanced IT infrastructure to improve the outcomes costs, and improvingof its citizens and better manage the public resources, CNAF teamed with IBM to its environmentalimplement a Smarter Computing approach across its infrastructure. The core of the sustainability.initiative was to implement a comprehensive and standardized portal structure toprovide easier, faster and more accurate access to eligibility information andprocessing for citizens and agency staff. IBM designed the architecture to handle thedisparate information submitted online by accepting electronic data and scannedforms from Web browsers and more than 900 new interactive kiosks deployed acrossFrance and its territories. The core of the portal is built around an IBM mainframeoptimized to handle all this disparate data, yet be flexible enough to handle 35 milliontransactions every day, and support peak workloads of 2.2 million page view requests. frost.com 11

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Frost & Sullivan Vastly Improving Citizen Outcomes while Cutting Costs CNAF soon saw the benefits of its new Smarter Computing system. By increasing the access to information and enabling citizens to submit application information online, the agency was able to immediately begin matching citizen needs to social services, thereby speeding eligibility processing and enabling staffers to make more informed decisions and reducing the potential for fraud. This reduced the need for citizens to visit agency offices, making the process more convenient, as well as substantially cutting confirmation wait times from four months to as little as one week. Additionally, CNAF was able to reduce real estate costs through the use of the new kiosks, and by moving from a paper-based system to a digital system, it reduced costs and the environmental footprint associated with manual processing of paper forms. Miami-Dade County: Managing Public Resources More Effectively A large county-level government in the United States needed to support a growing need for information sharing across its many departments. Building on an established platform, Florida’s Miami-Dade County worked with IBM to make its IT architecture smarter, and gained a powerful new business intelligence platform. In addition to increasing the county’s business intelligence functionality and scalability, the solution preserved investments in existing systems. This enabled Miami-Dade to make better use of scarce public resources. Advanced Business Intelligence Capabilities are Essential across Multiple Organizations “In addition to With a population of nearly 2.5 million citizens, and an area of more than 2,000 providing the speed, square miles, Miami-Dade County is the largest county-level unit in Florida. Even reliability and with the recent economic recession, the county’s population grew by more than 10 scalability we needed percent from 2000 to 2010. As would be expected of a county with this profile, all to support our organizations within the county government, from first responders to county parks, enterprise business amass an extensive amount of data. Beginning in 1999, the county’s IT organization intelligence was using IBM business intelligence analytic applications to provide business environment, the intelligence to its internal stakeholder agencies. The analytics soon became strategic system fit within assets to the county, but the growth of demand driven by the expanding population our budget, which began to outpace the IT systems’ ability to support the corresponding increase in was a key deciding information sharing between agencies. At the same time, funding in a state hard hit factor.” by the recession meant that existing IT investments had to be preserved as best as possible. This led the county to search for a solution to provide the advanced —Jaci Newmark, business intelligence capabilities needed, building on the systems in place. project lead, enterprise business Enhancing a Current System to Handle Advanced Analytic Capabilities intelligence Because balancing the need for new analytic capabilities with preserving architecture, investments in current IT system was a primary concern, Miami-Dade County Miami-Dade turned again to IBM to enhance its infrastructure to handle the increased data County 12 frost.com

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Smarter Computing to Support 21 st Century Governancefeeding into its business intelligence, data management, and transaction processingworkloads. The county’s IT planners and IBM enhanced the existing IT architecturewith two new higher-capacity mainframe platforms, and upgraded the businessintelligence software to ensure very high reliability for critical agency functions,particularly fire and police services. The project team built the enhancementsaround the need for a real-time situational awareness, and the new system enablesusers to view reports on a dashboard interface. The implementation plan alsoextended the data management and analysis capabilities to other departmentsbeyond the original group of users, such as jails and power and IT operations.Cost Effectively Extending the Capabilities of Business IntelligenceThe smarter IT infrastructure that IBM developed supported Miami-Dade County’srequirements to extend the capabilities of its business intelligence system, managingthe resources of the county much more efficiently. This is helping the county tomake the transition to a more modern, collaborative, and smarter structure. It hasalready provided numerous governmental agencies the insight and predictioncapabilities of an advanced business intelligence system. Because IBM was able tobuild from existing systems, the county was also able to become smarter within itstight budget by saving on hardware and software costs. All of this provides thefoundation for the county to continue to expand its business intelligencecapabilities across the entire governmental organization.The City of Norfolk: Strengthening Public Safety and SecurityThe City of Norfolk, VA, is a typical example of a city government with an ITinfrastructure that was insufficient for its needs. The city’s disparate IT systemswere inefficient, expensive to maintain, and could not accommodate the city’s desireto introduce new services for its citizens. Norfolk’s IT planners and IBMcollaborated to optimize its IT systems by transforming the city’s IT architecture tosupport new data-intensive workloads for the police and other departments, whichhelps the city to strengthen public safety and security.An Antiquated IT Infrastructure Impedes GrowthWith more than 242,000 residents, Norfolk is the second-largest city in Virginia. Thecity’s IT department, charged with storing and maintaining vast amounts of complexdata in a dynamic 24x7 environment, began to see exponential growth in data volumes,and the existing storage facilities were rapidly running out of space. This wasjeopardizing the impending launch of the city’s new major public safety initiatives,anticipated to be highly data-intensive, such as storing police car video data. Themultiple storage and system devices were also power-hungry, which added to thesystem’s operational costs. The city’s IT department decided it needed to transform itsIT infrastructure to accommodate the transaction processing, database management,analytics, and communications workloads to deliver the new public safety services. frost.com 13

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Frost & Sullivan Tuning the IT Infrastructure to Handle a Data-Intensive Environment Norfolk turned to IBM to create a solution that would not only accommodate existing data volumes from the various city departments at their current rate of growth, but The City of Norfolk also scale quickly and easily to meet unanticipated needs. Of particular importance used Smarter was the need for the IT architecture to handle the new public services that would Computing to generate massive amounts of data. The centerpiece of this was integrating its storage optimize its storage infrastructure on a single IBM storage system, enabling automated processes, system to support improving performance and security, and reducing energy consumption across the its new public safety entire system. By optimizing the infrastructure to handle the new workloads initiatives. Storage envisioned, IBM and Norfolk consolidated storage needs from a wide variety of performance was mission-critical, data-intensive applications and systems onto a single platform. increased by 40 percent while power Supporting New Initiatives, While Boosting Performance and consumption dropped Lowering Costs by 50 percent. Norfolk’s new storage system was optimized to handle the existing data sources, and to quickly and easily provision additional storage to support its new service initiatives. These include transportation services designed to improve ground traffic through automated parking alerts and payment options, as well as public safety services, such as in-car video surveillance for the city’s police cruisers. Beyond helping the city fulfill its mandates to improve citizen outcomes and strengthen public safety, the Smarter Computing infrastructure helped it to more effectively manage its scarce financial resources and improve environmental sustainability. Storage performance was increased by 40 percent, while power consumption dropped by 50 percent. All of this helped the city reduce its operating costs, deliver a higher level of services, and increase its ability to protect public safety. A SMARTER WAY TO BUILD BETTER GOVERNMENT Public sector CIOs and IT managers are painfully aware that policy makers, government workers, and citizens and businesses are demanding more from the IT systems under their administration. As the world changes, models of government are transforming from traditional silo models, to being more collaborative. Government CIOs who are faced with tight IT budgets, as well as those who are making a leap into the digital age, need a smarter way to collect, analyze, and present the enormously rich and complex data that underlie the imperatives guiding this transformation. The application and operational requirements to realize these imperatives come with substantive IT workloads, and traditional IT infrastructures that were designed around a one-function-one-hardware system principle cannot cope with these workloads. In today’s austere economic climate, government CIOs have the additional requirement for their IT infrastructures to reduce operating costs, be flexible and scalable to deploy computing resources where they are needed, and to ease collaboration across agencies, partners, the private sector, and citizens. 14 frost.com

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Smarter Computing to Support 21 st Century GovernanceThe Smarter Computing approach can guide government IT departments along thepath of establishing the IT infrastructure to support the imperatives of a smarter,21st century government. A number of municipal, regional, and nationalgovernments around the world are beginning to realize the benefits ofimplementing a Smarter Computing approach. Government CIOs may wish toinvestigate using a Smarter Computing approach if they are considering: • Modernizing large scale public programs—such as tax and revenue management, education, social benefits and services, and healthcare—to improve the level of services provided, and enabling agents to reduce unnecessary waste of public funds; • Optimizing IT infrastructures to support new policing services, streamline customs and border management processes, and enhance situational awareness and personnel safety in security and defense operations; • Revitalizing existing water, transportation, and power networks with advanced IT capabilities to improve their operation and capacity and extend the life of public assetsFrom the above-mentioned cases of Norfolk, Inner Mongolia, NCSU, Miami-Dade, Alameda County and CNAF, Smarter Computing is proving to be asuccessful and valuable approach to help governments meet the needs of theircitizens responsibly and efficiently. frost.com 15

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Frost & Sullivan REFERENCES 1 Organization for Economic Cooperation and Development (OECD). “OECD Economic Outlook”. www.oecd.org (25 May 2011). 2 United States Government Accountability Office (GAO), “State and Local Governments’ Fiscal Outlook: April 2011 Update, Publication GAO-11-495SP (6 April 2011). 3 Davey, Monica, “Minnesota Government Shuts in Budget Fight,” New York Times Online Edition, http://wwwnytimes.com/2011/07/01/us/01minnesota.html (30 June 2011). 4 United Nations Public Administration Programme, “United Nations E-Government Survey 2010”, http://unpan1.un.org/intradoc/groups/public/documents/un/unpan038851.pdf. 5 Ibid. 6 Government of China, “Report on the Implementation of the 2010 Plan for National Economic and Social Development and on the 2011 Draft Plan for National Economic and Social Development. Adopted on March 14, 2011, at the Fourth Session of the Eleventh National People’s Congress”, http://english.gov.cn/official/2011-03/17/content_1826561.htm. 7 Mukherjee, Pranab, Minister of Finance, Government of India, “Budget Speech for 2011-2012”, Speech, http://indiabudget.nic.in (28 February 2011). 8 Kingdom of Bahrain eGovernment Authority, http://www.ega.gov.bh/en/strategy.php, (7 July 2011). 9 Von Drehle, David, “In the U.S., Crisis in the Statehouses,” Time Magazine, www.time.com/time/magazine/article/0,9171,1997457,00.html, (17 June 2010). 10 Demographia, “World Urban Areas: Population Projections (2010), http://www.demographia.com/db-wuaproject.pdf, (10 June 2011). 11 “Open Government Sites fall Prey to Budget Cuts.” InformationWeek Online, http://www.informationweek.com/news/government/policy/229625627, (25 May 2011). 12 National Association of State Chief Information Officers (NASCIO), “The 2010 State CIO Survey: Perspectives and Trends from State Government IT Leaders”, (August 2010). 13 Ibid. 14 Nucleus Research, “ROI Case Study: IBM SSIRS Alameda County Social Services Agency”, Document K12, (August, 2010). 15 North Carolina State Department of Computer Science, “North Carolina State University and IBM Extend Access to Educational Resources to the World through Cloud Computing” Press release, CSC News, (24 October 2008). 16 IBM, Inc. “The Potsdam Institute for Climate Impact Research takes on Smarter Climate Research”, Press release, http://www-01.ibm.com/software/success/cssdb.nsf/CS/DLAS- 7WVKDS?OpenDocument&Site=default&cty=en_us, (18 October 2009). This report was developed by Frost & Sullivan with IBM assistance and funding. This report may utilize information, including publicly available data, provided by various companies and sources, including IBM. The opinions are those of the report’s author, and do not necessarily represent IBM’s position. XBL03008-USEN-00 16 frost.com

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