CIO Strategies 2013 - Cloud Computing for Public Sector and Government

Savvis IT Infrastructure

2013 Global IT Leadership Report

CIO Strategies, 2013
Cloud Computing for Public Sector and Government

The Future is Hybrid Cloud
The UK Public Sector faces ongoing scrutiny Jonathan Sowler, Vice President, Government
and pressure to improve performance, offer Industry, Savvis believes that the public sector’s
faster, convenient, accessible and interconnected “lack of IT integration has a significantly negative
public services, at a time when resourcing and effect, leading to duplication of effort and inefficient
funding are in short supply. The UK government’s processes”. He explains that for the public sector
Digital by Default strategy, set out in the report to operate flexibly and productively, IT leaders of
“Directgov 2010 and Beyond: Revolution Not local and central government need to modernise
Evolution” highlights the need to make “radical and remodel IT delivery infrastructures to take full
improvement to Government internet services to advantage of technologies now available.
provide higher quality and more convenient 24/7
services to users.”* Sowler recommends a “buy not build approach,
analogous to the consumption of electricity and
In other areas of the public sector too, the focus other utility services, to better meet government
is on modernisation and consolidation to reduce demand for compute resource”. He believes the
both cost and waste. “The government aims to most efficient way to modernise public services
achieve efficiency and financial savings of £20 is to establish a hybrid infrastructure with private
million in 2012-2013, £60 million in 2013-2014 and and public cloud services and colocation of
£80 million by 2014-2015 through the displacement government-owned IT assets delivered as a
of data centres in favour of the Cloud.” managed service by a well-established service
Source: Government ICT provider with end to end hybrid capability. “In this
Strategy Cabinet Office 2011 way IT leaders in public sector organisations can
achieve cross-government economies of scale,
IT leaders in all UK public sector organisations deliver responsive IT systems and exploit new
are feeling the pressure. Independent research*, technologies at affordable, opex-based prices.”
conducted by Savvis tells us the top three
priorities for heads of IT in central and local IT Outsourcing and Cloud Strategies for
government are driving efficiencies across the Public Sector – the Benefits are Clear
business to improve performance; increasing
Savvis research reveals the top three areas
collaboration across systems and people to
in which public sector IT heads expect to
deliver connected, fast and seamless services; and
gain efficiencies: moving to an on demand
accessing the right skills and specialist knowledge,
infrastructure model where IT capacity can
at the right time.
easily be scaled up or down in line with business
demand, standardising IT infrastructure and
The challenge for public sector CIOs is intensified,
changing IT staffing levels and roles to drive
however, due to a lack of IT funding as well
efficiency and reduce waste.
as the industry trend of low investment set
against a backdrop of large, unwieldy legacy IT
Government heads of IT are very clear on the
infrastructures, disconnected systems and a high
benefits of outsourcing. They told us they expect
proportion of manual processes.
savings of just over 22 percent of IT budget, and
the top reasons they would increase the amount
Three Key Priorities for Public Sector CIOs
of infrastructure they outsource are:
in 2013
• Increase IT agility
1. Gain efficiencies across the organisation
• Eliminate dependence on legacy infrastructures
2. Increase collaboration
3. ain access to the best people with the
G • Move capex to opex
right specialist skills • Refocus resources on core strengths

2013 Global IT Leadership Report: Cloud Computing for Public Sector and Government 2

One survey respondent said “outsourcing made it “As a result, a hybrid data centre environment
easier to justify trying new types of IT services as has been created, combining in-house services,
there is less risk involved. It is cheaper and easier collocated services, hosted services and public
to be agile and flexible with new products.” and private cloud computing.”

“The Government’s ICT strategy, issued by the McCreath advises public sector CIOs to select
Cabinet Office in 2011, outlines a firm agenda an IT infrastructure provider that has capability
for data centre, network, software and asset across the hybrid value chain from colocation,
consolidation” says Jonathan Sowler, “and a focused managed hosting, private and public cloud, as
shift towards cloud computing to create a common well as networking and consultancy services. He
ICT infrastructure. He explains “the public sector says “not all utility computing providers are equal.
stands to benefit from cloud computing in several Infrastructure-as-a-Service should be provided
key areas: reduced cost and complexity, greater according to a flexible model that lets government
predictability, accelerated delivery and reduced departments choose which components of their IT
risk, as well as lower barriers to change, such as the infrastructure they continue to own and manage,
ability to buy through a range of vendors rather and which aspects are more appropriately owned
than a few large system integrators.” and managed on their behalf.”

Survey respondents agreed that “Service He goes on to explain how a hybrid solution could
Providers offer expertise that we do not have. work in practice:
Outsourced solutions can help us achieve our • egacy applications could be hosted and
L
objectives quicker and more cost effectively,” migrated to a cloud utility model over time, and
added one CIO. if relevant.
• ore or select government services would continue
C
Reinventing Public Sector IT Delivery to be supported in a colocation data centre.
Models in the Cloud • ore government services could be managed or
C
Cloud computing offers compute resources on a hosted in a private cloud
user and per usage basis often with no fixed term • pikes in demand could be supported by cloud
S
contract or up-front fees, and can be used for bursting into the public cloud to avoid over
individual projects, by department or function, or provisioning and waste.
throughout an entire organisation. This type of
delivery model is also known as utility computing
Public Sector Adoption of Cloud
and can be deployed within a private cloud
Computing
infrastructure to assure security, privacy of data
and SLA driven performance targets, or a public IT leaders in central and local government
cloud infrastructure where cost reduction and companies agree on the value of cloud
capacity spikes are the priority. computing, with 45 percent of heads of IT of
public sector organisations having adopted
Public sector survey respondents cited the private cloud computing, 21 percent use a hybrid
benefits of utility computing as reducing cost, model of part private and part public cloud, and
improving quality of service, as well as IT 16 percent use public cloud services. Figure 1
infrastructure scalability and flexibility, enhancing
security and reducing administration time.* Jonathan Sowler comments “as part of internal
targets to drive efficiencies, government
In his role as Director of Cloud Solutions at Savvis, departments are rationalising server estates by
Andrew McCreath is regularly on site working with turning to private cloud”, he believes that this
public sector organisations. “The challenge is that trend will continue as long term government
most organisations have legacy solutions with contracts come to an end, and accredited public
ageing infrastructures, so they still need to own clouds emerge. “Attitudes are changing because
on-premise IT equipment and use colocation and government heads of IT now know more about
other physical services,”. He continues “the vision of a cloud, and are taking advantage of government
utility computing model does not demand wholesale accredited services available in the public cloud”.
overnight migration to the cloud. Government data
centres are typically the embodiment of years of
conflicting pressures and operational requirements.”


He believes hybrid cloud adoption is set on
a similar course with “secure data sitting in a Figure 2:
dedicated government accredited private cloud,
Select the most important benefits of
where high volume workloads and peaks are
cloud computing
managed by the public cloud”.

23%

Figure 1:
Does your company use cloud 23%

computing? 29%

50

23%
40

29%
24%
30

29% ability to scale up and down compute, storage and
20
bandwidth consumption to manage ﬂuctuating demand
29% reduced administration time
24% fast provisioning time
10 23% enhanced security
23% faster time to market
23% ﬂexible billing models

0
Yes, we use ‘private’ cloud services
Yes, we use ‘public’ cloud services
Yes, we use a hybrid model of part private/public cloud Figure 3:
Which of the following applications
Government IT leaders reported many benefits
are you currently putting in the cloud?
from cloud computing, from ease of being able to
scale up or down compute, storage and bandwidth
Email
consumption to manage unpredictable and
fluctuating demand , to reduced administration
time, faster provisioning, enhanced security, faster
Intranet
time to market and flexible billing models. Figure 2

The CIOs surveyed represented large public sector
and enterprise organisations (three out of five work Website Microsite

in public sector companies with more than 5000
employees) with complex legacy IT infrastructures,
large application sets and a high degree of CRM

customisation. From the range of applications
that IT could potentially outsource, heads of IT
are choosing those that are the most portable
and easily separated from existing systems. These
0 10 20 30 40 50 60 70
applications are often non-mission critical, and
viewed as an overhead, so reducing the cost of
maintenance is highly desirable: 64 percent of IT When asked what applications IT leaders are
heads use cloud computing for email, 55 percent evaluating for the cloud, 31 percent said batch
for intranet, 41 percent for website and microsites processing of large quantities of data, for example,
and 41 percent for CRM applications. consumer transactions for benefit claims or tax
returns. Thirty percent said backup and disaster
“Government departments are risk averse and like recovery, 28 percent test and development, perhaps
to take a proven approach, so starting with simple in recognition of the flexibility and scalability cloud
applications that lend themselves to Software-as- offers, as well as the ability to turn cloud services on
a-Service, like CRM, makes sense” says Sowler. and off quickly.


Sowler adds “Government typically generates lots storage to the public cloud, 7 percent outsource
of data and they have a duty of care to protect Big Data analytics and 12 percent outsource
and secure that data. Cloud is a cost effective, Mission Critical applications.
resilient way to achieve that”.
This result is surprising, says Sowler, as
we wouldn’t have expected to see mission
Figure 4: critical applications outsourced to the public
Which applications are you evaluating cloud. However, there are some government
for the cloud? departments that consider email and online
services as mission critical, so if this is the case, it
makes more sense” responds Sowler.
Batch Processing

Back Up and
Figure 6:
Disaster Recovery For which applications does your
company use public cloud throughout
Test and the organisation?
Development

0 10 20 30 Storage

For some applications, IT leaders in the public
sector show a high level of commitment to cloud Big Data Analytics

as they have completely transitioned entire
applications to a private cloud deployment. Mission Critical
Each of these applications can either operate as Applications
discrete areas, such as test and development, 0 10 20
or are new technology areas such as Big Data
analytics, with fewer legacy complications.
Seventeen percent of public sector IT leaders Overcoming Public Sector Resistance to the Cloud
outsource their entire test and development In his work with public sector organisations
function, 13 percent their storage and Big Data Andrew McCreath has seen a growing trend to
analytics applications. Figure 5 cloud and utility based computing and believes
that will continue. Yet when asked why some IT
heads were not using cloud services, McCreath
Figure 5: explains, “They tend to have concerns around
For which applications does your the amount of management resource required,
company use private cloud throughout or compliance and legal reasons of ensuring data
the organisation in this area? is processed in authorised jurisdictions, whereas
others are deterred because their applications
cannot easily be migrated to the cloud.”
Test and Development
There will always be those that take longer to
convince, he says, but we’ve actually come a long
Storage way, as for many years the main resistance was
cultural, a difficult area to address because it’s less
tangible. At least now the reasons are practical
Big Data Analytics
ones, so they can be tackled, resolved and
0 10 20
changed over time says McCreath.

“Government should always look to outsource
Interestingly, there is a significant difference in the less important areas, but aim to retain what’s
the number of respondents who outsourced their important, like strategy, or work that requires
entire application to the public cloud, compared to specialist government knowledge or is critical
applications outsourced to the private cloud. Eight to their business” adds Sowler, “but what’s
percent of public sector CIOs outsource all their equally important; is to maintain a significant


understanding of technology in house, so that McCreath believes that compliance and data
government IT heads know how to exploit security have always been priority areas of
technology to full advantage for their business” concern for government departments and public
emphasises Sowler. sector organisations. So much so, that the UK
government has developed a Compliance Scheme
and we’re starting to see new ‘compliant’ or
Figure 7: ‘accredited’ services being made available, he
What are the reasons for not using cloud explains. In time, concerns around compliance
computing within your company? will disappear and that change has already
started to happen. What we’ll end up with is a
60
list of objections, similar to the those once held
by commercial enterprise, around managing,
50
integrating, procuring and securing services.

40 What to Consider when Selecting an
Enterprise Cloud Provider
30
1. ybrid Cloud Capability - select a hybrid cloud
H
solutions provider offering a mix of colocation,
20 private and public cloud deployment to
manage legacy technology and new and
10 developing IT requirements.
2. ervice providers who can offer L1 and L2
S
0 government accredited services
47% Concerns over how much management and 3. nterprise-class Proven Experience - work with
E
control resource is required a provider that has a track record in delivering
47% application compatibility issues enterprise cloud solutions for high availability,
33% legal/compliance issues about processing
workloads in an unknown geographic location performance, scalability, business class SLAs
and self-service tooling.
4. ata Sovereignty - choose a provider
D
McCreath explains that one of the benefits of cloud
with a global network of data centres and
is that it greatly reduces capital investment, not only
with multiple data centres in all the major
because the service provider takes responsibility
commercial centres required, so companies
for delivering, maintaining and owning the IT
can select the best in-country data centre
infrastructure, but because they also manage
location to support their compliance and legal
and support the whole service.” He continues “IT
requirements.
heads of public sector need less capital for the
5. True Utility Contract – make sure the provider
A
infrastructure, and less capital for resourcing, as
offers a consumption model that’s charged on
delivery is down to the provider. In fact even less
a per user and usage basis, that’s transparent in
capital is required as the provider signs up to SLAs,
all its conditions.
so performance is easy to monitor.”
6. nterprise-Class Security – with government
E
security accreditation for all core utility services
“Many government departments and public sector
and facilities, as well as dedicated security teams.
organisations have large application estates, and
7. edicated Network Connectivity – to help
D
or legacy applications. Cloud promises long term
ensure a robust, enterprise level security to
benefits but sometimes there’s a short term pain
all network traffic irrespective of bandwidth
for applications that need to be reconfigured and
required.
made ready for the cloud. In some cases and with
certain applications it may not make sense to
migrate everything to the cloud, but this is usually
highlighted in the evaluation and business case
stage of the process.” He says “that’s why it’s so
important to have a provider that can deliver a
hybrid of colocation, private and public cloud
services, to cater to every eventuality, as well as
future needs”.


What? Why?
Colocation Offers government IT departments space Delivers considerable economies of scale,
and power for their servers and networking frees up internal networks, can accelerate
equipment in the service provider’s data centre access speeds due to increased bandwidth
Managed Provides dedicated servers and a full suite Alleviates government IT departments of
Hosting of technical support, maintenance and virtually all administrative and maintenance
monitoring services tasks and is a strong solution for legacy
applications
Dedicated Delivers a fully managed, customisable, Enables government IT departments to
Cloud private cloud infrastructure with dedicated, deploy compute and storage resources
secure virtualised hosting quickly and easily when needed
Open Cloud Multi-tenanted public architecture offers a Compute resources can be provisioned
highly flexible computing environment with elastically without the burden of long-term
the scalability and security of an enterprise- contracts or the lead-time of traditional
class platform deployments

Conclusion About Savvis
IT leaders in the public sector and government Savvis, a CenturyLink company, is a global leader
are under never ending pressure to squeeze more in cloud infrastructure and hosted IT solutions
and more value out of their IT infrastructure, drive for enterprises. Nearly 2,500 unique clients,
down costs and deliver better value to the tax including more than 30 of the top 100 companies
payer. As a result, many heads of IT are rethinking in the Fortune 500, use Savvis to reduce capital
business models and combined with government expense, improve service levels and harness the
directives to go digital by default, are adopting latest advances in cloud computing.
utility computing to help them achieve this.
For more information:
Struggling to manage IT legacy and a move to Call us on +44(0)207 400 5600 email us at:
cloud computing, government heads of IT are fast emea-sales@savvis.com or visit us at
realising the benefits of hybrid cloud, combining www.savvis.co.uk
colocation services for legacy infrastructure
and applications, along with a combination of About the Research
private and public cloud services to blend the This independent survey was commissioned by
optimum mix of performance and cost efficiency, Savvis and conducted with 550 CIOs, IT Directors,
compliance and security. Heads of IT and Senior IT Managers of global
enterprises based in the USA, UK, Germany,
2013 will be the year of the hybrid cloud for the Japan, Hong Kong and Singapore. 35% of the
public sector audience was from financial services companies
with more than 500 employees and global annual
Find your solution with Savvis revenue between $1billion and $100billion. The
Public sector and enterprise organisations around research used a combination of online fieldwork
the world have turned to Savvis to help them methodology and telephone interviewing and was
achieve the IT infrastructure they need to excel conducted by Vanson Bourne, a research based
in today’s constantly changing markets. Savvis technology marketing consultancy committed to
will help you make the right decisions about how the latest MRS Code of Conduct.
and where to house your data and infrastructure.
Using a blend of colocation, managed hosting and
public and private cloud services, we can ensure
you achieve the efficiencies you’re looking for, the
agility your business demands, and the focus on
what adds true value to your organisation.


www.savvis.co.uk

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All other marks are the property of their respective owners. -2-

CIO Strategies 2013 - Cloud Computing for Public Sector and Government

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CIO Strategies 2013 - Cloud Computing for Public Sector and Government