Contenu connexe Similaire à Exploring the cloud – a global kpmg study of government’s adoption of cloud_2012 Similaire à Exploring the cloud – a global kpmg study of government’s adoption of cloud_2012 (20) Exploring the cloud – a global kpmg study of government’s adoption of cloud_20121. GOVERNMENT
Exploring
the Cloud
A Global Study of Governments’
Adoption of Cloud
kpmg.com
Cloud
Innovation
Storage
Citizens Servers
Network Risk mitigation
Collaboration Information
Transformation Web-based
Access
Services
Cost savings
Efficiency
Users
Security
On-demand Applications
Government
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Data
2. b | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Cloud is here.
And as the accompanying
research reveals, its
promise is becoming real.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
3. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 1
Foreword
Cloud environments are already at work today reducing operating costs – in some
cases substantially. Such models are enabling optimization of asset utilization
and flexibility in both the scale and scope of IT services and hardware. Less of a
revolution, as the hype might suggest, and more of a long-anticipated next
phase in the evolution of information technology (IT), nonetheless cloud’s
arrival carries profound implications for IT provision for governments.
The era of cloud will likely offer an array of ancillary benefits. For example, cloud
is proving to be an engine of innovation. Many government agencies around the
world are exploring a host of new services for, and interactions with, other groups
within government as well as citizens. Further, as cloud reduces the footprint of IT
operations, agencies are free to focus more on the effectiveness of their programs,
and less on the management of IT.
Of course, there are challenges such as data security and governance. But,
according to this research, the experience of those moving forward with cloud has
shown that such risks can be adequately addressed. In fact, it seems more likely
that cloud will actually enhance data security.
Other challenges range from a lack of government-specific applications to a dearth
of investment capital. But again, those who participated in this research say such
issues can easily be addressed – and given the payoffs, must be overcome.
The opportunity awaits, and for many the exploration has begun. This report
is the third in a series on cloud from KPMG International, and seeks to offer
guidance and insight to help those in the public sector get ready to move
forward.
To view the other KPMG cloud reports, please visit KPMG.com.
Thank you to the many government officials around the world who gave generously
of their time and insight as part of the research that provided the foundation for
this paper.
John Herhalt Ken Cochrane
Global Chair Partner
KPMG Government & Infrastructure KPMG in Canada
KPMG International
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
4. © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
5. Table of contents
Executive summary 4
Introduction: the evolution of cloud-enabled government 5
Governing from cloud 8
How the public sector is taking advantage of cloud technology8
Drivers of change9
Ensuring security and building trust 16
Unique challenges for the public sector18
A clear mandate: adopt cloud! 21
A world of progress21
Cases in point27
Adoption will come29
The transformation agenda 31
Creating a cloud-infused government 31
Driving innovation31
Getting there: six tips for creating traction 33
Conclusion37
Insights and implications 38
About the survey 42
Additional reading 43
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
6. 4 | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Executive summary
How are governments planning for and adopting cloud? What are the challenges of
cloud-enablement? How will the integration of cloud technologies disrupt the status
quo of governance? More importantly, what are governments doing to ensure they
get the most from their cloud investments?
These are just some of the questions that KPMG International hopes to answer with
this report. Working in conjunction with Forbes Insights, close to 430 public-sector
government executives from 10 countries were surveyed to learn more about their
cloud strategies and expectations.
Key findings are as follows:
• Government adoption of cloud is happening slowly, but is poised to
accelerate:
When it comes to exploring the opportunities of cloud, not surprisingly the public
sector is well behind the private sector. Survey results find that the progress of
government entities significantly lags that of their for-profit counterparts by 9 to
13 percent. Only 12 percent of government executives say that over 10 percent
of their agencies’ overall annual IT resources are allocated to cloud in 2011. By
the end of 2012, this figure is anticipated to more than double to 28 percent.
Countries leading the way in cloud adoption are Australia, Italy and Denmark.
• The public sector has modest expectations of cloud:
Only 50 percent of government respondents expect to gain some cost
advantages with cloud; only 28 percent expect it to fundamentally change their
model for operations; and just 39 percent expect it to change interaction with
constituents.
• Security remains the biggest concern, but certification would help:
Concern with security was cited by almost half of all government respondents
(47 percent) as their most significant concern, only exceeding the private sector
slightly at 44 percent. Among the largest government entity respondents of the
survey, the figure rises to 56 percent, the highest level of concern cited by any
group. However, almost 80 percent said they would be more confident if cloud
services were certified by a government body.
This report examines the implications of these findings on governments, citizens,
cloud service providers and IT leaders. Responses from the global business survey
of 808 business executives are referenced to provide further context. Throughout,
we combine the deep experience of KPMG member firms’ professionals with the
results of a series of in-depth interviews that were conducted with government
leaders from around the world.
The results provide insight into the current state of government cloud and offer an
important benchmark for public sector organizations globally.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
7. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 5
Introduction: the evolution
of cloud-enabled government
Government entities are starting to embrace cloud, but what does that mean for the
Cloud public sector?
Cloud technology constitutes a change in computing and knowledge management,
Hosted IT services delivered on a with hosted IT services delivered on a shared, internet-based platform. The real
shared, internet-based platform. value of this type of environment is the ability to use that platform to combine data
access and exchange with access to low-cost computing and applications to provide
efficiency and flexibility (see Figure 1).
Research methodology
The information in this report is based on the results of surveying
429 government executives and managers in 10 countries, as well as
808 executives in the private sector. The research was done in May 2011
by Forbes Insights in collaboration with KPMG International. Additionally, a
series of one-on-one interviews, were conducted with government leaders
from around the world.
Respondents break-down as follows:
• Size of organization: All agencies and companies have annual budgets
or revenues of at least US$200 million. Forty-six percent of government
agencies surveyed have budgets of US$1 billion or more; 23 percent have
budgets of US$10 billion or more. Forty-two percent of private-sector
companies have revenues of US$1 billion or more; 20 percent have
revenues of US$10 billion or more.
• Level of government and title: Fifty-three percent of respondents to the
government survey work at the national level, 25 percent at the regional
level, and 22 percent at the local level. Thirty-one percent of respondents to
the government survey have C-level titles; 46 percent have C-level titles
in the private-sector survey.
• Countries: Countries in the government research include Australia,
Canada, Denmark, Italy, Netherlands, Singapore, South Africa, Spain,
United Kingdom, and United States. Twenty-nine percent of government
respondents are located in the Americas, 22 percent in Asia/Pacific, and
50 percent in Europe/Middle East/Africa. For the private-sector survey, the
geographic distribution was 43 percent Americas, 32 percent Asia/Pacific,
and 25 percent Europe/Middle East/Africa.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
8. 6 | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Definitions
• IaaS – Infrastructure as a Service: Infrastructure traditionally provided by
servers, desktops and network equipment is instead delivered over the
internet and can be scaled up or down as needed.
• PaaS – Platform as a Service: Software development, storage and hosting
are accessed as a service over the internet.
• SaaS – Software as a Service: On-demand applications provided through
an internet browser, eliminating the need to install, run and maintain
programs on internal systems.
• BPaaS – Business Process as a Service: Business process outsourcing
(BPO) is provisioned using a cloud computing model; bundled with SaaS/
PaaS/IaaS and delivered over the internet.
Like other potentially transformative innovations, cloud will take some time for
users to fully understand its full potential and get past its initial mystique, build and
make it work, prove and develop its credibility, and operationalize and move it to
broad adoption.
There is still much work to be done. However, as results of this research suggest,
momentum is building, but governments remain cautious.
Figure 1: Cloud environment
Cloud Internet-based data Internet-based access to low-cost
= +
Environment access and exchange computing and applications
Virtualized Technology
Virtualized Virtualized
Processes Organization
Opportunities to Leverage
Commoditized Enterprise
Applications and
Economies of Scale
Virtualized Business Models
Reduce General
Improve Reduce Invested Reduce Cost of
Speed to Market and Administrative
Working Capital Capital Goods Sold
Costs (SGA)
Source: KPMG in the US 2011, Cloud environment
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
9. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 7
The promise of cloud is CASE 1:
that it can bring together
Ontario, Canada examines the benefits
practices, tools, and
Canada’s Ron McKerlie – Deputy Minister of Government Services, Associate
technologies that will better Secretary of the Cabinet, and Secretary of the Management Board of the
position a government Cabinet – is taking a hard look at cloud-enabled processes. And what he’s keen
to learn is “whether or not there’s a prize here, financial or otherwise.
”
department to operate in a
In practical terms, McKerlie is involved in a pilot project, testing the cloud-based
significantly more efficient, wares of a major technology provider. “We were actually very anxious to get
predictable, flexible, and some experience with private cloud technologies, McKerlie explains. “So
”
we were delighted when we were approached – and so far it’s been a great
accountable manner. opportunity. ”
The work-to-date centers on accessing and managing common shared
The benefits of the cloud services like email and collaboration tools. And in McKerlie’s opinion,
for the CIO so far, the project has been a success. Now, says McKerlie, “we’re
better informed, and are now in a position where we can harvest some
The advantages of adopting cloud of the learning to see what potential exists for the cloud in the Ontario
can be profound for government Public Service. Still, the approach remains cautious – just one step at
”
IT departments, starting with the a time. “We want to make certain not only of what we think we know,
reduction or redirection of on-site IT but of what we might not know. And there are other, more conscious
”
staff as well as the ability to access concerns. “If our private data is in the hands of a US supplier or provider,
IT resources and infrastructure as US legislation allows their government to obtain private data without
needed. notification. This, says McKerlie, “is a big deal for us, particularly given the
”
amount of personal information, such as health data, that we hold for the
For the CIO and the senior IT team,
citizens of Ontario.”
cloud can also deliver the added
benefit of reducing the time needed Such concerns aside, McKerlie says the pilot project is likely just a first baby
to manage IT infrastructure, and step. A possible next step could be a private cloud offering services such as
therefore increase the IT function’s email to related government entities. “We’ve built a Tier 4 data center, and now
ability to focus on developing stronger we have several agencies interested in getting service. A government cloud,
”
programs and services for citizens, says McKerlie, “could be set up to provide municipalities or broader public-
businesses, and other stakeholders. sector entities or agencies with the services they need. ”
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
10. 8 | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Governing from cloud
How the public sector is taking advantage of cloud
Public vs. Private:
technology
Exploring cloud
The results of this survey find that a large number of government entities are
When it comes to exploring the already taking steps to better understand – and potentially capitalize on – the many
opportunities of cloud, the public advantages that cloud offers.
sector seems well behind the
private sector. Survey results find For this research, three core elements were used to provide evidence of this
that the progress of government shift: the development of a cloud strategy, the testing of a proof of concept, and
entities significantly lags that of the partial implementation of a cloud environment. Survey results show that
their for-profit counterparts by 9 to approximately a quarter of governments around the world are moving forward with
13 percentage points. exploring the benefits of cloud (see Figure 2).
Figure 2: Evidence of a shift to cloud
Which of the following activities has your organization undertaken
as part of its move toward adopting/implementing a cloud
environment?
29%
Developing a strategy
38%
24%
Testing of a proof of concept
35%
Partial Implementation 19%
32%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Government/Public sector Private Sector
Source: PMG International 2012, Government Cloud Survey
K
KPMG International 2011, Clarity in the Cloud
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
11. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 9
Public, private or hybrid cloud?
Cloud services are often developed in one of two ways: (1) private clouds, where the services are
dedicated to a single party that retains direct management oversight; and (2) public clouds, where
non-related parties may reside on the same servers and are primarily managed by a third party.
Hybrid clouds, as the name suggests, are combinations of these two methods. A number of
governments are also exploring the concept of ‘Community Clouds’ envisioned as a rules-based
environment shared by organizations with similar needs, perspectives or requirements, such as
geography, industry, or supply chains.
Figure 3: Types of cloud environments
What type of cloud environment does your organization
use/intend to use?
Private cloud 32%
Public cloud 22%
Hybrid cloud 26%
Community cloud 13%
No plans to adopt cloud 8%
Don’t know
23%
0% 5% 10% 15% 20% 25% 30% 35%
Source: KPMG International 2012, Government Cloud Survey
Drivers of change
The transition to a more cloud-centric model is under way. For government
respondents, some of the most influential drivers appear to be potential cost
savings, and the pursuit of increased efficiency and effectiveness -- if not wholesale
process transformation. But expectations are modest. Only 50 percent expect
potential cost savings from cloud (Figure 4).
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
12. 10 | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Economic drivers
Governments are seeing the potential for achieving cost reduction by migrating to
a more virtual operating model through the adoption of cloud as critical. Some are
already identifying potential cost savings, such as reduced invested capital by using
less IT infrastructure and lower administrative costs by requiring fewer internal staff
to perform processes.
Figure 4: Expected impact of cloud
Which of the following best describe the potential impact of cloud on your
business model/operations?
It will fundamentally change 28%
our business model 32%
It will change our interaction with 39%
customers (i.e., constituents/citizens)
and suppliers 39%
It will provide management with 37%
greater transparency on transactions 32%
50%
It will reduce costs
50%
24%
It will accelerate time to market
35%
18%
No significant impact
12%
3%
Other (Please specify)
1%
0% 10% 20% 30% 40% 50%
Government/Public sector Private sector
Source: PMG International 2012, Government Cloud Survey
K
KPMG International 2011, Clarity in the Cloud
Seventy-six percent of government respondents describe cost and related economic
factors as either extremely important (41 percent) or important (35 percent) to their
organization’s decisions surrounding cloud adoption (see Figure 5).
Figure 5: Importance of economic factors (e.g., cost savings, shift capital
“ udget deficits and
B expenditures to operational expenditures)
austerity programs in so How important are the following factors in driving your organization’s
adoption of a cloud environment?
many nations provide a
compelling reason for Extremely important
41%
37%
governments to take Important
35%
40%
a closer look at the Neither important 19%
nor unimportant 19%
potential for savings.
” 2%
Unimportant 3%
John Hermans Extremely 2%
KPMG in the Netherlands unimportant 2%
0% 20% 40% 60% 80% 100%
Government/Public sector Private sector
Source: PMG International 2012, Government Cloud Survey
K
KPMG International 2011, Clarity in the Cloud
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
13. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 11
Government respondents indicate that funding for cloud initiatives
Public vs. Private: will only be forthcoming if significant cost savings can be achieved. Almost three
Impact of cloud quarters (73 percent) of government respondents say that cost reductions are
necessary for their organizations to move to a cloud environment (Figure 6).
The public sector and private sector
are on par when it comes to the Figure 6: Need for cost reductions
impact of cloud on business models
and consumer/citizen interaction. Are cost reductions/savings necessary for your organization to
move to a cloud environment?
But government is slightly more
optimistic on the influence of cloud on
73%
transparency: 37 percent of ublic-
p Yes
75%
sector respondents say cloud will 27%
No
make operations and performance 25%
more transparent to management,
0% 20% 40% 60% 80% 100%
versus 32 percent in the private sector.
Government/Public sector Private sector
Source: PMG International 2012, Government Cloud Survey
K
KPMG International 2011, Clarity in the Cloud
To move to cloud, just how significant will those cost savings need to be? According
to survey results, more than a quarter of respondents need to achieve savings of
up to 10 percent, slightly less (21 percent) require savings of up to a quarter of their
costs, and one in ten respondents say they would need cloud to deliver at least a 25
percent savings on current costs (see Figure 7).
Figure 7: Required cost savings
What percentage reduction in IT or non-IT costs do you believe would
be needed?
11%
More than 25%
9%
11–25% 21%
32%
27%
1–10%
43%
Don’t know 29%
10%
0% 10% 20% 30% 40% 50%
Government/Public sector Private sector
Source: PMG International 2012, Government Cloud Survey
K
KPMG International 2011, Clarity in the Cloud
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
14. 12 | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Who will lead?
In the planning and implementation phase, government respondents are most likely to view
leadership as the responsibility of the CIO (29%), with a government equivalent of the CEO a
close second (21%).
Once under full implementation, the CIO remains the most frequently cited executive followed by
the CTO and the COO.
Figure 8: Leader of a cloud environment
Who should be responsible for managing service level performance of
external cloud providers after a cloud environment has been adopted?
Chief Information Officer – CIO 27%
Chief Technology Officer – CTO 15%
Chief Operations Officer – COO 14%
Chief Executive Officer –
CEO/Minister/Secretary 10%
Chief Financial Officer – CFO 6%
EVP/SVP/Deputy Minister/
6%
Under Secretary/DG
Other C-level executives 5%
Misc. Others (Senior Directors,
Managers, Managing Directors, etc.) 16%
0% 5% 10% 15% 20% 25% 30%
Source: KPMG International 2012, Government Cloud Survey
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
15. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 13
However, many are not yet convinced the cost savings of cloud are real, accessible,
“If achievable, this would or even sustainable. As Ron McKerlie1 of the Ontario Ministry of Public Services
explains, “We’ve heard the claims that there are some cost savings to be had.
represent a critical benefit Certainly, we are interested in those if they can be realized, but it remains to be
for government, where it seen whether they really are or aren’t there. ”
is important to be flexible. While Dave McClure, Associate Administrator of the Office of Citizen Services and
Innovative Technologies at the US General Services Administration (GSA), says that
There are often policy his group’s early experiences are showing “real benefits so far, including greater
changes, amendments to agility, solution support simplification, and lower costs. Still, he wonders, “what
”
will happen in the long run – are the gains sustainable?”
regulations or laws – that
can result in a need to Technical change drivers
ramp up fast. ” Government also seems eager to gain a clearer picture of the potential enterprise-
wide benefits of cloud environments, especially flexibility, scalability, simplicity,
Ann Steward security, and advanced technology. Seventy-nine percent of government
Australian Government Chief respondents cite technical change drivers as either extremely important (39
Information Officer and Deputy percent) or important (40 percent) to cloud adoption (Figure 9).
Secretary, Department of Finance and
Deregulation
Figure 9: Importance of technical change drivers
How important are the following factors in driving your organization’s
adoption of a cloud environment?
Technical factors (e.g., flexibility, scalability, simplicity, security, advanced
technology)
39%
Extremely important
37%
40%
Important 42%
18%
Neither important nor unimportant
16%
1%
Unimportant
3%
2%
Extremely unimportant
1%
0% 10% 20% 30% 40% 50%
Government/Public sector Private sector
Source: PMG International 2012, Government Cloud Survey
K
KPMG International 2011, Clarity in the Cloud
1 Mr. McKerlie’s full title: Deputy Minister of Government Services, Associate Secretary, of the Cabinet and
Secretary of Management Board of the Cabinet.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
16. 14 | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Strategic factors
As Pat Howard, an IBM partner and VP for global services, maintains, “This opens
up strategic avenues that weren’t there before. Among agencies and public sector
initiatives, there will be a level of optimization, market responsiveness, and agility
that governments just couldn’t achieve in the past. ”
Interestingly, larger government entities (those with 1,000 or more employees) are
significantly more likely to find strategic drivers to be ‘extremely important’ than are
smaller entities (those with under 1,000 employees). Forty-two percent of larger
government entities describe strategic benefits as extremely important versus only
27 percent of smaller entities (Figure 11).
Figure 10: Importance of strategic factors
How important are the following factors in driving your
organization’s adoption of a cloud environment?
Strategic factors (e.g., process transformation, linkage to business/
organization partners, speed to market/implementation,
focus on core competencies)
30%
Extremely important
33%
40%
Important
44%
23%
Neither important nor unimportant
19%
5%
Unimportant
3%
Extremely unimportant 2%
2%
0% 10% 20% 30% 40% 50%
Government/Public sector Private Sector
Source: KPMG International 2012, Government Cloud Survey
KPMG International 2011, Clarity in the Cloud
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
17. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 15
Figure 11: Importance of strategic factors by size of government organization
How important are the following factors in driving your organization’s
adoption of a cloud environment?
Strategic factors (e.g., business process transformation, linkage to business
partners, speed to market, focus on core competencies)
27%
28%
Extremely important 42%
35%
33%
47%
Important
30%
44%
37%
21%
Neither important nor unimportant
21%
16%
3%
Unimportant 2%
5%
3%
0%
Extremely unimportant 2%
2%
2%
0% 10% 20% 30% 40% 50%
Public sector with less than 1,000 employees Private sector with less than 1,000 employees
Public sector with 1,000 or more employees Private sector with 1,000 or more employees
Source: KPMG International 2012, Government Cloud Survey
Tracking ROI
What metrics will governments be tracking as they adopt cloud technologies? According to our
survey, key performance indicators will include those relating to cost, productivity, and revenue.
Figure 12: Key performance indicators
Which of the following key performance indicators (KPIs) or metrics
are/will be used by your organization to measure the return on
investment (ROI) of a cloud environment?
Productivity 49%
Cost 57%
Revenue 28%
Access to markets 22%
Other (please specify) 2%
Cloud ROI not measured 6%
Don’t know 20%
0% 10% 20% 30% 40% 50% 60%
Source: KPMG International 2012, Government Cloud Survey
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
18. 16 | Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud
Ensuring security and building trust
Security and privacy concerns are the most significant barriers to public sector
Public vs. Private: Security cloud adoption (see Figure 13). As Geoffrey Weber, partner with KPMG in the US,
explains, “Data security is probably the number one concern for most government
Government concerns over security agencies contemplating cloud. Already relatively more risk averse than private-
”
only slightly exceed those of the sector companies, government agencies are meanwhile often privy to some of the
private sector (47% vs. 44% most sensitive data available. This includes not only citizens’ personal information,
respectively). But among the largest “but also data relating to national security interests in agencies like the Department
government entity respondents of of Homeland Security or the Department of Defense. Thus, these government
”
the survey, the figure rises to 56%, executives’ heightened concerns, says Weber, “aren’t unreasonable. ”
the highest level of concern cited by
any group. Figure 13: Top challenges of adopting a cloud environment
What do you believe are the top challenges or concerns your organization
faces in adopting a cloud environment?
47%
Security
44%
24%
Regulatory compliance
14%
IT governance 24%
18%
0% 10% 20% 30% 40% 50%
Government/Public sector Private sector
Source: KPMG International 2012, Government Cloud Survey
KPMG International 2011, Clarity in the Cloud
Not only is personal data held by government often quite sensitive, but governments
are also a favorite target for hackers. “We are regularly under attack, says McKerlie
”
of the Ontario Ministry of Government Services. “It’s just amazing the number of
threats that come at us in the course of a day. Consequently, he says, “we have to
”
make certain that whatever we implement in security terms is incredibly robust. ”
Data security is also a primary concern for the United State General Services
Administration (GSA). In December 2010, the GSA became the first federal
government agency in the US to move its entire email function to a cloud model.
McClure maintains that at least in the case of his agency’s cloud provider, security is
a strong competency. “Most government CIOs know their own security program’s
strengths and weaknesses, he explains. “But if they evaluate a cloud services
”
provider and go through a solid baseline check for certification and accreditation – and
examine continuous monitoring capabilities – they may walk away very impressed. ”
In general, says McClure, “the commitment to security and the level of controls
tend to be stronger for cloud services because these providers are being continually
challenged. Overall, says McClure, “if security is set up and managed correctly,
”
there can be security advantages to working in a cloud environment. ”
Figure 14: Security concern by size of organization
Less than 24% 33%
1,000 employees 43%
1,000 or 24% 56%
more employees 45%
0% 10% 20% 30% 40% 50% 60%
Government/Public sector Private sector
Source: KPMG International 2012, Government Cloud Survey
KPMG International 2011, Clarity in the Cloud
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
19. Exploring the Cloud: A Global Study of Governments’ Adoption of Cloud | 17
The value of certifications
Survey participants indicate that they would feel more comfortable moving forward with cloud if there is a means of
certification: a stamp of approval on issues such as appropriateness, effectiveness, and security.
This certification appears to be of greater perceived benefit to smaller government entities.
Figure 15: Easing of concern with certification by different entities
If there were a certification of cloud services by the following entities, would it ease any of the concerns
you have about adopting a cloud environment for your organization?
Certification by government body
10%
21%
No
No
40%
No
60%
Yes 79%
90%
Yes Yes
Under 1,000 Employees Over 1,000 Employees All Public Sector Respondents
Certification by independent, non-profit body
28%
37% Yes 47%
No 53%
No Yes
63% 72%
Yes No
Under 1,000 Employees Over 1,000 Employees All Public Sector Respondents
Certification by independent, for-profit body
30% 28% 38%
Yes Yes Yes
62%
70% 72% No
No No
Under 1,000 Employees Over 1,000 Employees All Public Sector Respondents
Source: KPMG International 2012, Government Cloud Survey
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.