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Cost Saving (and quality improvement!) with IT in the Cloud.
Microsoft Briefing for FE Principals and Policymakers 2011COST SAVING ( AND QUALITYIMPROVEMENT!) WITH IT IN THE CLOUD.Robin GaddHead of Information and Systems Development
Midsize Tertiary FE College Central southern England in SE Region (just) New Forest National Park – semi-rural, wide (international) catchment We do education and training outstandingly well c.11,000 learners per annum, 14-104 years old, We’re not an IT service provider pre-entry towe try hard todegree outstandingly pre- too!) (although foundation do this level, and a well school nursery c.200 key employers (mainly SMEs) Beacon College since 2004 Technology Exemplar Provider since 2008
MY CASE STUDY… A brief guide to Cloud Computing for Principals and Policymakers – demystification! Explain what we’ve been doing at Brock, and why Outline the perceived costs and the benefits Contextualise in the “shared services” agenda Highlight some things to think aboutSo that we… Can think some more about how cloud computing fits in FE sector IT Strategies going forward
EVER READ THESE? “All those government bodies likely to procure ICT services should look to doso on a scaleable, cloud basis” (Digital Britain, p213)
TECHNOLOGY HYPE CYCLE 2010 (GARTNER) Gartner: Cloud computing is “the most hyped subject in IT today”!! http://www.gartner.com/it/page.jsp?id=1447613
TRADE-OFFS OF “TRAD” IT INVESTMENTS Hardware Fixed costs; fixed performance! Five-year capitalised ownership = out-dated equipment!But we wantutilization Variable asset to spend more money at the Most servers run at 5-20% of processing capacityfrontline of teaching nowhere near 100% don’t Even virtualised servers get and learning, we? Data redundancy and security Computing/networking reliability & redundancy Backup and DR (disaster recovery) Power and cooling efficiency Datacentres: 1 watt to the server, 1.5 watts in overhead! Personnel costs Recruitment, retention, training
WHAT ARE WE ACTUALLY TALKING ABOUT HERE? Cloud computing is “a model for enabling convenient, on-demand network access to a shared “Technology services resources pool of configurable computing delivered over the internet” (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction”. (US National Institute of Standards and Technology)
THE CLOUD COMPUTING PROPOSITIONCLOUD CAN BE A WAY OF… Focussing on what we’re good at (educating) Getting more Providing more Spending less £ Innovating Sharing services Improving cashflow Capex → Opex clarionledger.com
So what is cloud computing?Looking for economies of scale? Rent a piece of this 7 acres…
CLOUD STUDENT/ALUMNI EMAIL ForeFront IM on an existing (virtual) server syncs our AD with the Live ID cloud service Elastic storage! (expands and contracts on demand) Exchange Server(s) Typical in-College infrastructure
LOTS OF COST; NOT MUCH BENEFIT!In-College Student Email Service Levels at Brock in 2007 Inbox (200MB) Network file store (200MB) Lost USB sticks galore No external mail send by default No system redundancy A mediocre experience Low usage£££ Hardware, software, anti-virus, backup, DR Maintenance & support
HOW MUCH COST? £ Per Year (x4) CAPEX Server Hardware 2,500 Licensing 1,250 Installation 500 Setup/Config 500 AV & Antispam 1,250 SSL 125 OPEX Backup 1,000 Admin (5 hrs/wk) 9,100 Training (admin, helpdesk, end users) 2,000 18,225
MORE QUALITY AND LESS COST!Outlook.com Service Levels 2008 Inbox (10GB) Online file store (25GB) Anti-virus and anti-spam No brainer? Email for life (Alumni? Destinations tracking?) easily!) (providing you have Microsoft systems and can get ForeFront working An experience that meets expectationshelpful too!!!) (oh… and a working knowledge of PowerShell is quite High usage (>3000 mailboxes) 99.9% uptime guarantee£££ Free! Fewer servers, less software, reduced maintenance
SO IS THERE A FUTURE FOR IN-COLLEGE IT? Yes. Less. But still probably a lot! PCs, printers, networking, high-end media But different ownership models; different support Themodels; utility computing; thin clients organisational Cloud presents many A data centre development implications! But smaller; bridge between the college and the cloud; more proactive monitoring/self-healing; shared services An IT Support structure But smaller? More contract and supplier relationship management etc… skills gaps?
GREY CLOUDS – RISKS? Our data is somewhere “out there”? Security; public or private cloud? is the door locked? Where in the world is our stuff? Lots of due diligence needed! Legal jurisdictions? regulatory compliance; data protection? £-$ exchange? SLAs Service/support; uptime guarantees (with financial penalties?); technical support; time zones? Partners Trust; reliability Single point of failure moves elsewhere JANET connection: capacity/cost; redundancy?
FLUFFY WHITE CLOUDS – OPPORTUNITIES! Expenditure management Spending less; shared/managed services; fewer fixed costs; elastic capacity; moving Capex → Opex; enhanced cashflow So why Quality improvement wait? Getting more service/capacity; providing better services to our customers can save you Innovation and agility - this year! money The world changes; IT changes; opportunities change; keeping up with the next big thing! Focussing on what we’re good at! Keeping what adds value, outsourcing what doesn’t, adding more value by buying-in just the services we need
CONCLUSION: THE BOTTOM LINE Nick Carr was right! May 2003 Most computing is now a “utility” – we can’t live So why spend any more £ (or $) than without IT, and yet “IT doesn’t matter” absolutely necessary on IT? IT infrastructure is not a key differentiator in the FE sector!