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The Economi c Gai ns of Cl oud Computi ng



                                              Vi vek K undra
                        Federal Chi ef I nf ormati on Off i cer
                                            w w w.w hi tehouse.gov
                                                     A pri l 7, 2010
The Case f or Change


       Federal Data Center Growth                           Federal Data Centers Energy Consumption
                                                                                  8

1400




                                    Est. Annual Federal Server & Data Center
                                     Electricity Consumption (Billions of kWh)
1200
                                                                                  6
1000

 800

 600
                                                                                  4
 400

 200

   0                                                                              2
          1998               2009



                                                                                  0
                                                                                                        2000                                     2006
                                                                                 SOURCE: Report to Congress on Server and Data Center Energy Efficiency Public Law 109-431, U.S.
                                                                                                       Environmental Protection Agency ENERGY STAR Program, August 2, 2007
Federal Leadershi p i n Cl oud
     Computi ng


1. Shift to a “cloud-first” policy

2. Identify opportunities through data center
   consolidation

3. Centralize certification of cloud solutions

4. Establish standards for security, interoperability &
   data portability
Central i zed Certi f i cati on
                                                           Problem: Independent agency risk
                                                           management has inefficiencies

Government-wide Risk Management Program                               Federal Agencies
    • Provides security authorization and continuous
      monitoring
    • Agencies participate by leveraging the results for
      covered products

Vendor Benefits                                                           Solutions
    • Government-wide authorization and security           Solution: Unified risk management
       compliance cost reduction                           eliminates inefficiencies



Agency Benefits
    • Cost savings through reduced duplication
    • Rapid acquisition
    • Increased security assurance

                                                                            Solutions
Standards Strategy
A Shi f t to the Cl oud

           OPPORTUNITY                               CLOUD SOLUTION

    Support doctors and healthcare     Nationwide solution for 2,000 users in 6 weeks
    providers in implementation of
    Electronic Health Records (EHR)    Track and coordinate EHR implementations




    Consolidate more than 12 email     Moving 80,000 mailboxes to the cloud
    systems serving 80,000 users       66% expected cost savings



                                       Halted procurement of up to $1.5 billion in data
    Modernize enterprise data           center efforts
    centers                            Reevaluating enterprise strategy in context of
                                        “Cloud First”


    Provide scientists and
    researchers on-demand access to
                                       $32 million investment
    raw data storage and computing
    resources
A N ew M odel


 Animoto’s multimedia service went
  from 25,000 users to more than
  250,000 users within 3 days

 Scaled from 50 virtual machines to
  4,000

 Supporting 20,000 new customer
  registrations per hour at peak

 Massive capital investment no
  longer a barrier to entry

 Great ideas powered by the cloud
  can scale to transform markets
  faster than ever before
                                       Charts and data: http://blog.rightscale.com/
                                       2008/04/23/animoto-facebook-scale-up/
Shi f ti ng Pow er to the A meri can Peopl e

                                           Smart Meters

 Data is being democratized
 Cheaper and more powerful
  processors
                                             Health IT


 Faster and more ubiquitous
  networks
 Billions of sensors are becoming    Performance Dashboards

  part of a hybrid Internet
Vi vek K undra
Federal Chi ef I nf ormati on Off i cer
                    w w w.w hi tehouse.gov
                             A pri l 7, 2010

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The Economic Gains of Cloud Computing

  • 1. The Economi c Gai ns of Cl oud Computi ng Vi vek K undra Federal Chi ef I nf ormati on Off i cer w w w.w hi tehouse.gov A pri l 7, 2010
  • 2. The Case f or Change Federal Data Center Growth Federal Data Centers Energy Consumption 8 1400 Est. Annual Federal Server & Data Center Electricity Consumption (Billions of kWh) 1200 6 1000 800 600 4 400 200 0 2 1998 2009 0 2000 2006 SOURCE: Report to Congress on Server and Data Center Energy Efficiency Public Law 109-431, U.S. Environmental Protection Agency ENERGY STAR Program, August 2, 2007
  • 3. Federal Leadershi p i n Cl oud Computi ng 1. Shift to a “cloud-first” policy 2. Identify opportunities through data center consolidation 3. Centralize certification of cloud solutions 4. Establish standards for security, interoperability & data portability
  • 4. Central i zed Certi f i cati on Problem: Independent agency risk management has inefficiencies Government-wide Risk Management Program Federal Agencies • Provides security authorization and continuous monitoring • Agencies participate by leveraging the results for covered products Vendor Benefits Solutions • Government-wide authorization and security Solution: Unified risk management compliance cost reduction eliminates inefficiencies Agency Benefits • Cost savings through reduced duplication • Rapid acquisition • Increased security assurance Solutions
  • 6. A Shi f t to the Cl oud OPPORTUNITY CLOUD SOLUTION Support doctors and healthcare  Nationwide solution for 2,000 users in 6 weeks providers in implementation of Electronic Health Records (EHR)  Track and coordinate EHR implementations Consolidate more than 12 email  Moving 80,000 mailboxes to the cloud systems serving 80,000 users  66% expected cost savings  Halted procurement of up to $1.5 billion in data Modernize enterprise data center efforts centers  Reevaluating enterprise strategy in context of “Cloud First” Provide scientists and researchers on-demand access to  $32 million investment raw data storage and computing resources
  • 7. A N ew M odel  Animoto’s multimedia service went from 25,000 users to more than 250,000 users within 3 days  Scaled from 50 virtual machines to 4,000  Supporting 20,000 new customer registrations per hour at peak  Massive capital investment no longer a barrier to entry  Great ideas powered by the cloud can scale to transform markets faster than ever before Charts and data: http://blog.rightscale.com/ 2008/04/23/animoto-facebook-scale-up/
  • 8. Shi f ti ng Pow er to the A meri can Peopl e Smart Meters  Data is being democratized  Cheaper and more powerful processors Health IT  Faster and more ubiquitous networks  Billions of sensors are becoming Performance Dashboards part of a hybrid Internet
  • 9. Vi vek K undra Federal Chi ef I nf ormati on Off i cer w w w.w hi tehouse.gov A pri l 7, 2010