Doing “The Cloud” Right

Charting a Course for State and Local Governments

Stuart McKeeNational Technology Officer, State and Local Governmentstuartm@microsoft.com

In government, as in life, there are cuts that injure and cuts that heal. As they continue to

slog through the wreckage of the Great Recession, state and local leaders have a

challenge to be surgeons rather than hacks and make this era of crisis into a season of

fresh starts.” TIME Magazine, June 17, 2010

Part 1 – The word…

A rose by any other name

There is a lot of hype. And the word itself is not useful because the cloud is not a destination.

It is a powerful (potential) TOOL for your toolbox to solve BUSINESS PROBLEMS.

Key challenge for orgs is “in

making the right decisions about what to hold on to and what to

let go.” -Nick Carr

Book worth reading

The Big SwitchNick Carr

Think of it this way…

Own less TV stations Watch more TV

Part 2 – Why cloud computing ?

cost efficiencycollaboration

focu

s flexibility transparency

agili

ty

carbon footprint dis

ast

er

reco

very

rem

ote

acc

ess

Cost savings = economies of scale

+ orders of magnitude…Datacenter PUE (Power Utilization

Efficiency)

Industry average: 2.0Gen 3 MS DC: 1.2Gen 4 MS DC: 1.0

Pooling resources and reducing redundancy makes financial sense. But at Internet scale, it makes even MORE sense.

Because the number of users justifies getting into the datacenter R&D business.

“With Online Services, we’re able to reduce our IT operational costs by roughly 30% of what we’re spending now”

- Ingo Elfering, VP of IT Strategy, GlaxoSmithKline

MS Chicago DC

500M investment17.5 football fields

14 employees, 3 are MS

Datacenter Locations

“You’ve got mail” – now what ?

“Gartner's IT Spending and Staffing Report,

2010, stated the public sector spends 73% of

its budget on maintenance, higher than in almost any

other sector”Denver Post, Sept 2010

Cloud computing is an opportunity to re-focus and spend more time/resources on activities and

services core to your mandates as a government.

Miami 311 MS cloud add-on

“We built this app in 8 days…with no upfront cost…” – Conrad Salazar, City

of Miami

Work from anywhere…in good times and bad

Whether for disaster response, telework, or carbon footprintanywhere, anytime access to collaboration tools

will be a mark of the 21st century government – and it is built-in with cloud computing.

“By 2015, 80 percent of work outcomes will depend on input and cooperation of two or more people, and the

work will seldom be done face to face”

- Gartner Research report, 2007

Story worth listening to

Hennepin County, MN “results only” telework

program

The End Of 9-To-5: When Work Time Is Anytime

by Jennifer Ludden

Timing is everything

“Don’t run out and do this just because it’s

‘cloud,’ and don’t run out and not do

it because it’s ‘cloud.’

-Carol LawsonCIO, California Public Utilities CommissionCloud computing is great for dealing with “elasticity”

problems. Anywhere you have trouble matching demand to capacity smoothly and cost effectively is a good candidate.

Part 3 – How can MS help ?

A little cloud history

(1996)330M users

(1996)100M users

(2003)309M users

(1997)248M users

AUDIO/VIDEO CONFERENCING

(1996)450M users

(1997)303M users

(2007)170M users

WEB-BASED EMAIL

(1997)62.9% share

(1999)31.7% share

(1996)3.4% share

SEARCH

(2007)30M users

(2005)3M users

(2010)30M users

PRODUCTIVITY APPLICATIONS

Web *

And the term “cloud computing” ? Introduced to IT around 2006. So we’ve been building innovative, scalable, secure cloud servicesfor 15 years - they just didn’t call it “cloud” when we

started.

Productivity / Collaboration

And we build in the integrationso you can focus on getting your staff -and not your

applications-

Productivity

Audio/video/web conferencing

Forms and workflow Email/unified communications

working better together.

Citizen services / open dataCitizen-facing / open

data

Email may be the first thing you move to the cloudbut it is nowhere near the most strategic. Cloud

computing offers an opportunity to dramatically streamline and enhance government services.

Grants management Citizen managementPublic meeting management

PermittingMicrosoft TownHall Open Gov Data Catalog

Part 4 – A Pre-Flight Checklist

Enterprise vs. consumerEnterprise vs Consumer

Released in 1996

Used by 450M consumers

Released in 1996Used by most Fortune 500, Federal, state and

local governments

Designed forDesigned for

Choosing Exchange was a no brainer. 15 years of enterprise design, architecture, partnering with

government…and literally battle tested.

Reliability and Security

Book worth reading

Security Development Lifecycle

Michael Howard

“As an industry we should recognize the sea change in

Microsoft's approach to security, and

encourage other vendors to follow Microsoft's lead." SANS NewsBites

“ Many of the world's most

knowledgeable security experts are urging their

favorite software vendors to follow in the footsteps of

Microsoft.” - Infoworld

We financially guarantee 99.9% uptime but have actually delivered much higher

99.800%

99.825%

99.850%

99.875%

99.900%

99.925%

99.950%

99.975%

100.000%

Our guarantee

It’s time to finally start thinking of IT as being reliablethe way electricity is reliable.

And secure enough for even your most important mandates.

IntegrationUser Experience

Government is a collection of people-driven processes and outcomes. A more integrated user experience for your staff

ultimately means a more integrated experience for your citizens.

The most important predictor of success in any IT project is

user adoption (73%). - Sand Hill Group

study

Amount spent on usability design and testing for Office 2010 ?

1 billion dollars

Three Screens and a Cloud

The A more integrated user experience for your staff

ultimately means a more integrated experience for your citizens.

This just in…

30k users moving to cloud initially

State of MN moves to Microsoft’s cloud”

More than 30,000 employees will

migrate to services-based e-mail and

collaboration.

CSC Wins Cloud Services Contract For California

(up to 168k users)

State of California awarded the company a contract to migrate its current multiple

e-mail applications to a cloud-based solution with

Microsoft Business Productivity Online Suite

(BPOS).

Unnamed State

(100k users)

Unnamed State

(60K users)

Unnamed Hospital System

(3000 users)

City of Alexandria, VA

(2700 users)

Unnamed Emergency

Management Agency

(1100 users)

City of Newark, NJ (2300 users)

City of Carlsbad, CA(1100 users) (case study

)

City of Plano, TX(2500 users) (

case study)

Unnamed Major Metropolitan County

(1000 users)

Unnamed State Superior Court(1000 users)

Klamath County, OR (470 users)

City of Miami(case study)

City of San Francisco

(press release)

City of Chicago(case study)!

Summary

MATURE AND SECUREMicrosoft has been operating many of the largest, most innovative and secure cloud services for over a decade.

PATH TO SUCCESSRealizing the incredible potential of cloud

computing in government will require that we couple our enthusiasm with planful enterprise

thinking.

FLEXIBLE AND FAMILIAROur approach allows you to host category-leading capabilities in the cloud, on premises, or a hybrid

– based on your business requirements.

THANK YOU !