Prepared by:

Cloud Adoption and Procurement Practices

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Survey Overview

To better understand the status of cloud adoption and its procurement practices in targeted geographic locations Unisys commissioned the Center for Digital Government to survey state and local government officials.

To accomplish this task, the Center for Digital Government surveyed 109 state and local government IT professionals from July to August 2013. The survey results are reflective of those who subscribe to Government Technology and Governing with a maximum sampling error in the survey of +/- 9.38% at a 95% confidence. The results of this survey cannot be projected to the entire population.

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Respondent Profile

• Arizona – 10% • Colorado – 6% • Florida – 17% • Hawaii – 2% • Idaho – 6% • Iowa – 3%

• Maine – 1% • Missouri – 9% • Montana – 3% • Nebraska – 5% • Nevada – 3% • New Jersey – 15%

• New Mexico – 2% • Oklahoma – 2% • Oregon – 2% • Utah – 7% • Vermont – 1% • Washington – 8%

Respondent Location

37%

8% 11%

16%

10% 6%

8%

2% 3%

0 - 250 251 - 500 501 – 1,000 1,001 – 3,000

3,001 – 5,000

5,001 – 10,000

10,001 – 50,000

> 50,000 Don't Know

Respondent Organization Employee Count

n=109

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Respondent Profile

Area of Government % of Respondents

Administrative/Finance/HR/Procurement 33%

Public Safety / Law Enforcement 31%

Transportation 20%

Health & Human Services 20%

Tax & Revenue 10%

Elections 7%

Corrections 6%

DMV 6%

Other 34%

Q: What areas of government do you serve?

n=109

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Respondent Profile

Job Title % of Respondents

Departmental Director 14%

Departmental IT Directors & Managers 19%

IT Experts & Practitioners 26%

Enterprise CIO’s & Senior Staff 7%

Chief Executives: Mayors & Governors 4%

Other 30%

Area of Responsibility % of Respondents

Applications 54%

End-User Services 52%

Infrastructure 42%

Security 28%

Other 20%

Q: What best describes your job title or position?

Q: What best describes your area(s) of responsibility?

n=109

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Key Findings

• 46% of respondents indicate their jurisdiction has, or is planning to, implement a cloud offering; 42% of respondents indicate their jurisdiction had NOT implemented a cloud offering • For those who have, or are planning to, implement a cloud

offering (46%), most likely resources are Web Applications (70%) and Data Storage (60%)

• Hybrid (44%) and Private (36%) Cloud environments are most likely to be used by respondent jurisdictions.

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• The #1 reason jurisdictions are adopting a cloud environment is Reducing Hardware & Software Capital/Maintenance Costs

• Concerns about Data Security (71%) is the main barrier identified to cloud adoption

• Ensuring Data Security is Extremely Important to 82% of respondents when considering whether or not to adopt a cloud environment

Key Findings

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Key Findings • Over one third (39%) of respondents have, or are planning to,

utilize shared service agreements for cloud services • Statewide agreements (55%) are most popular vehicles

• Procurement Contracts are used by less than 15% of respondents;

WSCA (75%) is the MOST considered contract vehicle by respondent’s jurisdictions

• Jurisdictions appear to have a lack of understanding about procurement contracts and what is available to them; 36% indicate they “Don’t Know” what is available for procuring cloud services, 52% say they “Don’t Know” if they would consider using a contract for cloud procurement

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Key Findings

• For those jurisdictions “Planning /Considering” shared services agreements for cloud services, a vendor’s technology independence/neutrality is ‘Very Important’ to 81% of respondents. • The ability to provide advisory services (61%), and having an

existing contract vehicle available (58%) are also ‘Very Important’ to these organizations

• Vendors providing cloud services should be able to demonstrate

security protocols and assurances to state and local government jurisdictions while offering a technology neutral solution at a price point that reduces an organization’s overall expense

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State and Local Government

Cloud Adoption & Use in Target States

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Migration Feasibility Assessments

Q: Has your jurisdiction conducted an assessment to determine the feasibility of your ability to migrate to:

32%

26%

24%

18%

20%

15%

23%

23%

27%

27%

31%

35%

The Cloud

Mobile/BYOD

Shared Services/Collaborative Agreement

Yes Planning To No Don’t Know n=109

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Have SLG Org’s Implemented the Cloud?

32%

42%

14%

12%

Yes

No

Planning

Don’t Know

Q: Has your jurisdiction implemented a cloud offering?

42% of State and local Government organizations have not implemented a cloud offering nor are they planning to.

n=109

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What Resources Are In The Cloud?

70%

60%

40%

38%

34%

32%

26%

8%

Web Applications

Data Storage

E-mail

Custom Applications

Enterprise Content Management

Geographic Information Systems (GIS) Software

Personal Productivity

Other

Q: What types of resources have you placed, or considering placing, into the cloud environment?

n=50

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Types of Cloud Environments

2%

4%

14%

36%

44%

Community Clouds

Public Cloud

Don’t Know

Private Cloud

Hybrid Cloud (Combination of public andprivate cloud hosting)

Q: What type of cloud environment does your jurisdiction use or are you planning to adopt?

n=50

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• States and localities are primarily looking to reduce their hardware and software capital and maintenance costs. – Nearly one in four respondents listed this as their #1 investment driver

• Meet the growing demands of a more mobile workforce – This survey demonstrates that the future of government service

delivery will demand greater mobility. In fact, 46% of respondents have or will conduct an assessment to go mobile or BYOD

– One in five respondents listed this as their #1 priority when considering cloud adoption

• Update Old and Out of Date Critical Software Applications – Finally, cloud is being examined as a solution to legacy applications.

Older systems and the need for flexibility have 16% of respondents listing this as their number #1 priority

Drivers to Cloud Adoption Q: What are the top three reasons that caused or would cause your jurisdiction to

adopt a cloud environment?

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Cloud Adoption Decision Factors

82%

34%

27% 24%

40%

13%

55% 51%

41% 35%

3% 8%

17%

27%

15%

1% 0% 2% 2% 3% 0% 1% 0% 4%

0% 2% 2% 3% 3% 7%

Ensuring Data Security Flexibility to MeetCurrent and Future IT

Needs

Better Management ofData Capacity

Speed ofImplementation

Business ContinuityConcerns

Extremely Important Important

Neither Important Nor Unimportant Unimportant

Extremely Unimportant Don’t Know

Q: How important are the following factors in driving your jurisdiction’s adoption of a cloud environment?

n=109

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Q: What are the key barriers your jurisdiction has or had in adopting a cloud environment?

Barriers to Cloud Adoption

8%

12%

13%

16%

18%

24%

40%

42%

71%

Confidence that prospective partners can completethe contracted work

Inability to measure return on investment (ROI)

Lack of a contract vehicle to secure cloud services

Impact of cloud migration on existing staff levels /responsibilities

Availability of data

Performance concerns

Regulatory Compliance (i.e. data retention, licensing,privacy, redundancy, etc.)

Integration with existing systems

Data Security

n=109

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State and Local Government

Cloud Procurement

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Shared Services For Cloud

Q: Are you pursuing any type of shared services to receive or provide cloud services?

16%

34%

23%

28%

Yes

No

Planning/Considering

Don’t Know

n=109

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Scope of Shared Service Agreements

12%

55%

12%

21%

With other localjurisdictions

Statewide Other Don’t Know

Of those who indicated “Yes” or “Planning/Considering” when asked if they were pursuing any type of shared services to receive or provide cloud services, 55% said those agreements are statewide.

n=42

Q: If a jurisdiction indicated they had pursued or were pursuing a shared services agreement for the cloud they were asked if those agreements were:

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Assessment Methods

• Feasibility & migration assessments for cloud adoption are currently mostly done in-house ‒ Over two-thirds (69%) of respondents who indicated they

have used shared services for the cloud agreements performed a feasibility or migration assessment using in-house resources.

• Opportunity exists for third party vendors to perform feasibility & migration assessments for those not already in the cloud. ‒ 61% of those planning to use shared services would consider

using a third party to conduct a feasibility & migration assessment.

n=48

n=36

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Procurement Contract Use

27%

18% 15%

21%

36%

12% 6%

14% 17%

12%

61%

75% 72%

62%

52%

State-Term Contract Western StatesContracting Alliance

(WSCA) Contract

Other CollaborativeAgreements

None Don’t Know

Available for Cloud Services Used Vehicle to Procure Cloud Services Would Consider Using

Q: What types of contracts does your jurisdiction have available for procurement of a cloud environment and/or what contracts did you use and/or would you consider

using to procure cloud services?

n=109

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Vendor Selection Criteria

Q: Please evaluate the following vendor selection criteria:

14%

3%

3%

6%

47%

17%

36%

36%

39%

81%

61%

58%

Vendor’s Ecosystem & Partners

Vendor’s Technology Independence/Neutrality

Advisory Services Capability

Existing Contract Vehicles to provide Services

Very Important Neutral Less Importantn=36

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Vendors and Web Key Info Sources

Top 5 Responses (In order of frequency)

1. Vendors

2. Internet Searches 3. Industry Publications

4. Peers 5. Conferences

Q: Where do you turn for information on Cloud-based solutions?

n=109

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What Does This Mean for Unisys?

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• Opportunities for cloud services exist with state and localities in target states – One in eight respondents are planning to go to the cloud and almost

half have not yet acquired cloud services or made plans to

– Dominant cloud environments are hybrid (44%) and private (36%); very little interest in public (4%) or community (2%) clouds

• Messaging to states and localities in target states would be best focused on ensuring data security and reduction of capital and maintenance costs – Ensuring data security is listed as “Extremely Important” or

“Important” by 95% of respondents in driving their decision to adopt a cloud environment.

– Nearly one in four respondents listed reduction of their hardware and software capital and maintenance costs as their #1 investment driver.

Conclusions

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• Shared services agreements for cloud adoption are not yet widely used by state and local governments in target states – 39% of state and local governments use or are planning to use shared

service agreements to move into the cloud

– Statewide agreements such as WSCA are most prevalent amongst those state and local governments looking into shared service agreements.

• Western States Contracting Alliance (WSCA) contract, other State-Term contracts, or other collaborative agreements are widely considered, though infrequently used. – 6% of jurisdictions have used WSCA contract for cloud adoption while

75% would consider using it

Conclusions

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• Opportunity for advisory services exists with jurisdictions planning to utilize a shared services agreement for cloud procurement – Over half of jurisdictions surveyed have not or don’t know if they have

conducted an assessment to determine the feasibility of migrating to the cloud (50%), mobile/BYOD (54%), or a shared services/collaborative agreement (62%).

– 61% of jurisdictions in target states who are planning to use a shared services agreement would consider using a third party vendor.

• Technology independence/neutrality and the ability to provide advisory services are critical factors for state and local governments planning to pursue a shared services agreement for cloud.

Conclusions

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THANK YOU!

Joseph Morris Director of Research jmorris@centerdigitalgov.com 916-932-1395

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