© 2014 IBM Corporation Cloud Government Point of View IBM Institute for Business Value Partner’s...

© 2014 IBM Corporation

Cloud GovernmentPoint of ViewIBM Institute for Business Value

Partner’s Name, Partner’s TitleDD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value2

Executive summary

Cloud computing provides significant opportunity for Governments to address increasing challenges in IT governance

Governments are leveraging cloud’s capabilities to create diverse stakeholder ecosystems and enable value realization by all

Governments around the world are embracing cloud and realizing significant benefits through innovative and enhanced citizen services, improved internal efficiencies and reduced costs

Security, privacy and compliance concerns are being managed through a set of processes and controls thus making cloud computing a secure, compliant and cost effective IT services delivery model

Governments must adopt a structured approach to implementing cloud services to minimize disruptions to ongoing citizen services and internal operations


3 IBM can help

2 Cloud is enabling changes in governmental model

1Cloud will transform thefunction ofgovernments


Transformative technologies are disrupting industries

Source: Joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders

Mobile revolutionConnectivity, access and participation are growing rapidly

Social media explosionQuickly becoming the primary communication & collaboration format

Hyper digitizationDigital content is produced and accessed more quickly than ever before

The power of analyticsReal time analysis, predictive analytics and micro-segmentation emerging

Transformational cloud – Cloud’s attributes make it a powerful delivery model delivering new business models, cost benefits, flexibility and large on-demand capacity

Gmail, Facebook, Linkedin are pioneer examples of cloud computing with advertisement based revenue and cloud’s low cost delivery model sustaining free services

Ecosystem of connected health and wellness apps that delivers a consolidated view of users’ health. Strong & growing ecosystem with APIs and Apps that cover all aspects of health care 1

The Xerox Mobile Print platform uses cloud to convert and process print requests. This removes complexity from end-users, reduces costs & management of diverse devices and print configurations


Governments are being hit by multiple disruptive global shifts – urbanization, aging populations and structure of the global economy

Source: [1] Swiss Re. 2014. Natural catastrophes and man-made disasters in 2013: large losses from floods and hail; Haiyan hits the Philippines. Sigma Study, No 1/2014.; [2] http://www.imf.org/external/Pubs/ft/weo/2014/01/pdf/text.pdf

Number of Catastrophic Events, 1970 – 20131

2014 GDP Growth decline2

Unstable economic conditions

High competition for residents and businesses

Change in citizen demands

Increase of dependency ratio

Increase in catastrophic events


Governments are struggling to maintain economic vitality – with fiscal pressures, changing expectations and the need for resiliency

Source: [1] http://www.usgovernmentrevenue.com/federal_budget_estimate_vs_actual_2013_XXbs1n_G0; [2] http://www.local.gov.uk/c/document_library/get_file?uuid=00468d7b-0630-4917-bebd-ed1336f102ad&groupId=10171; [3] http://www.telegraph.co.uk/health/nhs/10395138/Foreign-patients-cost-NHS-2bn-a-year.html; [4] http://www.swissre.com/media/news_releases/nr_20140326_sigma_insured_losses_in_2013.html

decrease in the UK available funds for social services forecasted by 20202

20%of the overall global workforce was considered mobile at the end of 20133

35%projected US Federal Budget deficit in 20141

$973bil

of economic loss globally due to disasters in 20134

$140bil


As they advance along their transformational journey, government leaders focus on four key imperatives

Sources: http://www-935.ibm.com/industries/government/

Improve Government Health and Social Programs

Support the public’s health and welfare with personalized services

Protect the environment and improve resilience

Improve performance and resilience of critical infrastructure and ensure the sustainability of vital resources

Strengthen National Security & Public Safety

Optimize intelligence and national defense support functions, protect borders and create safer communities

Grow Sustainable Economies

Improve fiscal management and revenue collection

Cloud technology provides the means to meet economic challenges to drive towards new growth


Cloud computing accelerates the drivers of economic vitality for governments

Talent and Business

Stand as the two primary pillars of economic development

Developed through attraction, creation, use, growth, and retention

Enhanced and facilitated by the innovation and adoption of technology

Long-term sustainable economic development is shaped by the value created by both people and businesses


Cloud is a competitive asset that expands economic potential, promoting agility, security, efficiency and cost control

Source: NIST, IBM IBV Power of cloud study

Cloud’s essential characteristics

Resource Pooling

Broad Network Access

Rapid Elasticity

On-demand self service

Measured service

Cloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources Speed, agility, and scalability

Cloud empowers 6 benefits for governments

Security rich and highly available

Improved Efficiency

Cost optimized

Masked complexity

Ecosystem connectivity


Cloud offers governments three main services to leverage in their transformations

Software as a service (SaaS)

Infrastructure as a service (IaaS)

What it is:Cloud-based applications run on “computers in the cloud” that are owned/operated by others and connect to users via Internet/web browser

Benefits: Eliminates need to purchase,

install, update, and maintain software

Ability to dynamically scale to usage needs

Faster to implement and more flexible

Includes benefits from PaaS and Iaas as well

Platform as a service (PaaS)

What it is:Cloud-based environment with everything required to support the complete lifecycle of building and delivering web-based applications

Benefits: Eliminates the cost and

complexity of buying and managing the underlying hardware, software, provisioning and hosting

What it is:Provides organizations with computing resources including servers, networking, storage and data center space

Benefits: Eliminates the cost of

investing in hardware, its maintenance and upgrades

Enables an on demand, pay-as-you-go model


Cloud redefines the possibilities for governments

Source:[1} http:// http://public.dhe.ibm.com/common/ssi/ecm/en/zsc03177wwen/ZSC03177WWEN.PDF [2] http://www.ibm.com/cloud-computing/files/Government_Cloud_Infographic.pdf [3] https://w3-03.sso.ibm.com/sales/support/ShowDoc.wss?docid=0CRDD-8GLEMB&appname=w3skm#SolutionSynopsis

Cloud provides opportunities for governments to transform themselves

Cloud improves efficiencies for citizen-centric services

Cloud allows governments to control costs

Spanish province reduces costs and frees resources through IBM Cloud implementation. Cost savings and assets were able to be invested in other areas to benefit citizens2

German Pension Fund Baden-Württemberg gained faster access to its pension records by 99% with no increase in costs1

An agency in India uses IBM Cloud and Spoken Web technology to better reach rural areas and match citizens with employers and training to drive job growth3


Cloud can drive significant transformation to create value and promote sustainability

EFFICIENT ORGANIZATION

Simple and faster processes drive internal efficiency

Cost savings through the consolidation of back office operations

IT capacity can be readily aligned to roadmap of future

NEW REVENUE STREAM

Agencies can provide services to other government entities or local businesses

Regional clouds can reduce need for standalone systems

Value-added services can be introduced

ECOSYSTEM ENABLEMENT

Third-party services can be extended into government ecosystem and consume API

Open collaboration and sharing can be expanded

Innovation can be introduced across systemically


A Government ecosystem allows organizations or individuals to consume value created by others or deliver value to others

An ecosystem enables interaction with numerous varied entities through• Information sharing• Application Programming Interfaces (API)

exposing functionality from back-end systems

Government agencies can collaborate around a single integrated view of citizens to deliver social programs or physical assets to more efficiently manage transit systems

Source: [1] ProgrammableWeb website, accessed June 2014; http://www.programmableweb.com/apis/directory

Government

CitizenNGO

Employee

Government

Employee

Citizen

Business

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011 2012 2013

Government API in ProgrammableWeb

APIs Added Cumulative

In the Asia-Pacific region, one national postal service created a citizen identity authentication API which it allows other government agencies to use as they create their own citizen-facing applications

IBM is helping a European environment and rural affairs agency develop an ecosystem through APIs that other agencies as well as citizens can tap the value created


Cloud can drive significant value creation and competitive advantage


U.S. General Services Administration optimizes cost structure

Through adoption of a cloud -based solution, fixed licensing costs are eliminated and scalability is improved while downtime is reduced

NEW REVENUE STREAM

Australian Maritime Safety Authority adds a new channel

Adding a cloud based system allowed people to interact with AMSA on mobile devices, opening a new revenue stream


Department for Work and Pensions gains a platform to communicate

Switching to a cloud based enterprise system allows information to be shared among stakeholders quickly and efficiently

Source: [1] “State of Public Sector Cloud Computing,” May 20, 2010, CIO Council;[2] http://www.communications.gov.au/digital_economy/cloud_computing ; [3]https://ccs.cabinetoffice.gov.uk/sites/default/files/Department%20for%20Work%20and%20Pensions%20Case%20Study.pdf

costreduction1

Added a new method to conduct business272% local authorities

collaborate3382


Cloud can drive significant value creation and competitive advantage


UK Department of Energy & Climate Change streamlines organization

By integrating cloud-based smart energy readers and shared meeting spaces, DECC eliminates waste and increases productivity

NEW REVENUE STREAM

City of Wuxi in China built a computing center with IBM Cloud

New center in municipal research campus allowed the city to generate money from providing low-cost enterprise applications to small companies


New York City connects its students, teachers and parents

The Department of Education chose a cloud-based solution that links 1600 schools to allow collaboration and communication while still saving $5 million dollars annually

in savings annually1

Added ability to tap into new revenue2

Source: See speaker notes

£100k students linked31.1mn


3 IBM can help




Five key steps to advance cloud adoption

Determine the organization goals, platform requirements & complexity associated

Develop enterprise cloud strategy, options available and roadmap

Envision the cloud architecture that will support cloud initiatives

Update IT Strategy and IT plans to align them with cloud strategy

Define business drivers to prioritize use cases for cloud

Implement a CloudFirst strategy to evaluate right blend of cloud options for new projects

Assess and evaluate from the current applications, the best candidates for cloud

Determine the applications to be moved to cloud

Define multi-sourcing models and cloud vendor selection criteria

Assess and determine how to best leverage the options of private, public and hybrid delivery models

Develop Cloud Service Catalog, SLAs and KPIs

Develop cloud cost models including transition

Finalize a cloud business case and examine its ROI including time required for initial payback

Prepare infrastructure for cloud

Develop Cloud Risk

Management plan and policies

Security and Compliance plan and processes

Transition plan including workforce transition

Assess impact on operating model; identify and plan changes required

Note: The above shows an overall plan and will include aspects of workload prioritization and migration discussed in other slides

Prepare for implementation

Develop Cloud business case

Determine cloud deployment options

Identify and prioritize workloads

Create Cloud strategy, architecture and plans1 2 3 4 5

Cloud planning should result in accelerated migration, quick wins and mitigated risks


Cloud strategy comprises four elements

BUSINESS MODELS ENABLED BY CLOUD

Promoting highly competitive initiatives at the enterprise and Industry level

APPLICATION AND DELIVERY PLATFORMS

Driving agility and productivity for the enterprise; tested strategies to improve life cycle performance

DATA PLATFORMS

Instantiating well-integrated business intelligence to manage the enterprise

INFRASTRUCTURE PLATFORMS

Delivering consumable, secure and readily available resources to enable agile execution

Enterprise Cloud

Strategy

1 2 3 4 5

Strategy


Enterprise innovation is realized by integrating new technologies with existing core systems

Cloud enables leaders to take a systematic approach to integrate these capabilities to drive

enterprise innovation

Systems of insightAdvanced analytics and cognitive computing systems that harness big data enabling competitive advantage for organizations

Systems of engagementLeverage mobile and social to transform relationships with customers, employees & citizens

Systems of recordThe traditional core systems such as accounting applications and product systems that record key internal data

Pervasive Security Intelligence A dynamic approach to threat reduction through a life cycle of prevention, detection and response

Enterprise Innovation

Systems of Engagement

Systems of Record

Systems of Insight

Enabled by Cloud

Security

Pervasive Intelligence

1 2 3 4 5

Strategy


Organizations should evaluate born-on-the-cloud solutions while assessing existing applications for migration to cloud

Ent

erpr

ise

Clo

ud A

dopt

ion

Migrate existing workloads

Cloud First

MigrateQuantifyPrioritizeSelect

Workload analysis Wave 1 Wave 2 Wave 3

Migration Plan

Business case

New project

Replace existing app / infra

New project

Evaluate a blend of cloud options that best suit the project

requirements

BPaaS SaaS

PaaS IaaS

1 2 3 4 5

Prioritization


A decision framework with identified criteria helps in prioritizing migration to cloud

1 2 3 4 5

Prioritization

Note: The above is an indicative prioritization shown for typical workloads

MORE READY FOR CLOUD

MAY BE READY FOR CLOUD

NOT READY FOR CLOUD

Workload migration categories

Migration plan

WAVE 1

WAVE 2

WAVE 3

Low High

Lo

wH

igh

Desktop/devices

Analytics

Collaboration

Managedbackup

Industryapplications

Dev/Test

Security

BusinessServices

Infrastructurecompute

DEPLOYMENT EASE

BU

SIN

ES

S V

ALU

E

Infrastructurestorage


A phased migration to cloud helps manage risks

1 2 3 4 5

Potential migration risks Incorrect analysis and identification of

workloads

Inability to meet non-functional requirements

Incorrect ROI analysis

Inadequate preparation of infrastructure / apps for cloud

Complex applications’ interoperability & integration

Failure to comply with security, privacy & regulatory requirements

Management complexity as resources get distributed in a virtualized environment

Discover

current assets and usage

topologies & dependencies

platforms and licenses

SLA’s, security & compliance

Analyze

cloud feature / fit

cloud providers

contract models

resource sizing

workloads

Establish the Migration Toolkit

Cloud-enable infrastructure & applications

Migrate

Infrastructure

Applications, Platforms and Data

Operations Services

Validate Migration

Phased migration approach

Migration & Validation PhaseAnalysis PhaseDiscovery Phase

Prioritization


Cloud services and deployment options enable governments to adopt cloud to align with drivers of economic vitality

1 2 3 4 5

Public cloudPrivate cloud Hybrid cloud

Deployment

Value drivers …

Customization, self service –reduced IT expense, efficiency, availability, resiliency, security and privacy; can expand into a "community" cloud bringing private cloud benefits to groups of organizations

Value drivers …

Standardization, capital preservation, self service –reduced IT expense, flexibility and time to deploy

Real world example

Asset Management- Västerbotten County Council 1

Data Management- Chinese Academy of Sciences²

Citizen Interactions- State government in Brazil³

Real world example

Intelligent Transportation- New Jersey Turnpike Authority 5

Disaster Management- City in northeast Japan6

Intelligent Operations Center-City in Europe7

Value drivers …

Leverage the benefits of private and public cloud while addressing data security, governance, compliance and budgetary challenges

Real world example

Coordinate job search- Latin American municipal labor deptartment4


Cloud has the potential to transform U.S. Federal IT organizations, making them more agile and better able to control costs

1 2 3 4 5

Business Case

Source: http://www.meritalk.com/PaaS-or-Play

Projected reduction in application development time

Cloud computing has potential to reduce the federal IT budget by 25%

Platform-as-a-Service could cut U.S. Government application

development costs by $20.5B

$24B

Total IT budget

$60B

Current IT spending

Cloud Computing

Cost for legacy

systems

$56B

3.5 years for software

application development

cycle

Reduce cycle time by 31% resulting in a total cycle time of 2.4 years

Before

After


Cloud provides financial benefits and positive returns over traditional IT infrastructure across different organizations

1 2 3 4 5

Business Case

Source: [1] http://www.workday.com/company/news/benefits_of_the_cloud.php; [2] http://cloud.cio.gov/case-study/dod-us-army-online-experience-center

State of Wisconsin ‘s Department of Natural

Resources saw a return on their investment of

270% from implementing cloud solutions for

shared meeting and project spaces in the first

year of use1

U.S. Army Experience Center moves to a cloud environment that permits a 360 degree community outreach and relationship management approach

State of Michigan’s Department of IT realized

savings of $228k when migrating only 10% of

enterprise systems to cloud and predicts to

save $1.4M after migrating 60% of systems1

90% reduction

Licensing costs

33% gain

Productivity

AfterBefore


Cloud allows organizations to shift cost structuring and provide efficiency benefits

1 2 3 4 5

Business Case

Traditional IT infrastructure

$273k up front licensing cost

$77k annual maintenance cost

U.S. Federal Labor Relations Authority replaced its outdated off the shelf case management software for a cloud-based Software-as-a-Service solution.

reduction in ownership costs over 5 years88%

$16.8k annual maintenance cost

Cloud enabled organization

No hardware acquisition costs

…Migration to…


Security, privacy and compliance issues can be readily addressed in cloud

1 2 3 4 5

As governments start planning to adopt cloud, key questions come up about their data & applications:

Where is our data stored? What about data sovereignty?

How do we protect our citizens’ privacy?

How does cloud affect our regulatory compliance?

Is a business continuity plan available for cloud?

Risk Management

Plan

Cloud SLA

Cloud requirements

Monitoring & Auditing

Risk & Security Management

processes

Physical & Logical controls implementation

Audits & reports

Critical elements to address security, privacy and compliance concerns

GO

VE

RN

ME

NT

O

RG

AN

IZA

TIO

NC

LO

UD

SE

RV

ICE

P

RO

VID

ER

Implementation

IT Strategy


Cloud serves as a way strike a balance between security needs and organizational goals, leading to its promotion by governments

1 2 3 4 5

Governments are concerned with the security of their information and data…

Implementation

Source: http://www.ibm.com/cloud-computing/social/us/en/security/

Governments around the world are encouraging organizations to leverage cloud to drive transformation and operational efficiency

…while still promoting and easing the implementation of cloud

United States- Federal Information Security Management Act (FISMA)

Australia- Protective Security Policy Framework (PSPF)

United Kingdom – HMG Security Policy Framework

European Union- General Data Protection Regulation

United States - Cloud First Policy

Australia - National Cloud Computing Strategy

United Kingdom – CloudStore….. UK Government’s approved cloud services

European Union - Cloud-for-Europe (C4E)


Governments worldwide have their own unique requirements for data residency and local content

1 2 3 4 5

Implementation

Source: http://www.ciphercloud.com/2013/05/10/the-cloud-is-inevitable-observations-from-infosecurity-2013-in-london/

Governments have geographically-defined data residency requirementsImplies a thrust towards private clouds

Offers a complete yet self-contained cloud ecosystem

Allows governments to choose where their protected data and information is stored according to their preferences

Full spectrum of government use cases, via vendor and partner application catalog


Cloud security solutions span all security domains - people, data, applications and infrastructure

1 2 3 4 5

Implementation

Source: [1} http://www-07.ibm.com/au/cloud2014/pdf/Safeguarding_the_cloud_with_IBM_Security_solutions.pdf

Managing identities and single sign-on access across multiple cloud services

Protecting and monitoring access to shared databases

Scanning cloud-deployed web applications for the latest vulnerabilities

Defending cloud users and workloads from sophisticated network attacks

Providing endpoint and patch management of virtualized machines for security compliance

Increasing the visibility and auditing of cloud activity within multi-tenant environments


Impact of cloud is enabling governments to evolve a new operating model aligned to recalibrated processes

An operating model is a framework for formulating an operations strategy – explicit choices about the best deployment of organization’s elements to achieve the strategic goals

Changing citizen demands necessitates governments to adopt new technologies like cloud, mobile, social media and analytics

To succeed with cloud, governments have to assess the impact of cloud on the operating model and all its dimensions and determine what actions are required for smooth cloud adoption

ROADMAP FOR CHANGE

Target Operating Model

BUSINESS GOALS AND STRATEGY

TOM

CustomerExperience

PerformanceMetrics

Technology

Skills & Capabilities

Sourcing & Alliances

Assets &Locations

Organization &Governance

Processes

1 2 3 4 5

Implementation

CULTURE


Cloud will radically transform and improve citizen experiences with government

1 2 3 4 5

Implementation

Robert, a young Manager in an IT company, returns home from traveling overseas for a project.

When he lands, he is processed in immigration using a cloud based biometric system to validate his identity.

Shortly after landing, he realizes he has not yet filed his taxes and must do so before the end of the day. He logs onto

a tax app on his tablet and submits his tax forms to both the federal and local governments while waiting for his ride home to arrive.

Robert quickly receives a notification that his information has been received and processed.

It highlights a possible error in his filing, discovered using advanced analytics in cloud software.

Robert checks his email and finds that his tax return has been deposited directly into his bank account and a

receipt gives a full explanation of the transactions. He examines it and is pleased that is 100% accurate.

Robert is then asked to travel to a nearby city for a meeting the next day. He rents a car and drives to his destination.

His toll fare is collected automatically and he experiences no traffic delays because the country has implemented an auto-pay system.

After the meeting, Robert and his coworkers attend a major sporting event. They feel safe knowing

that analytics are being utilized to predict and prevent harmful events from occurring and agency efforts are coordinated.

1 2 3

5 64


Efficient sourcing and management of partnerships and alliances will be major enablers of cloud adoption success

IMPACT

Organizations will have more partners and alliances through “Services” being offered by outside organizations

Increase of complexity in service contracts due to consumption-based billing

Service quality and availability need higher focus as they are managed through relationships and agreements with diverse third party ecosystem

IMPLICATIONS

Procurement and sourcing functions will need to be automated and have shortened cycles

Vendor and service management will be an integral part of the Procurement function

Service level agreements to be defined clearly and governed by the need to secure and protect citizen data in a shared environment

Service adoption to meet benefits realization needs to be included in the contracting and negotiating process

So

urc

ing

& A

llian

ces

1 2 3 4 5

Implementation


Government officials need to pro-actively redesign business architecture and processes to leverage benefits of cloud

IMPACT

The cloud strategy and technologies will require a shift from systems-based processes to services-based processes

Cloud’s speed of service delivery impacts current processes as they need to match and deliver at the same speed

Process framework will migrate from functional silos to an integrated set of processes spanning organizational boundaries

Cloud’s service composition model provides freedom to engage/disengage functions as needed

IMPLICATIONS

Traditional legacy processes to be decommissioned or integrated into the new cloud-enabled processes

Governments will need control over the continued availability, reliability and utility of the cloud based processes and the platforms underpinning them

Dynamic processes for billing and allocation of resources are required to not be an impediment in achieving value

Processes to be made simpler and faster

Pro

cess

es

1 2 3 4 5

Implementation


Cloud computing requires significant changes in design and governance within organizations

IMPACT

Major shift in how the new environment is managed and operated will have significant impact on the optimum organizational structure required in the future

Organizations and functions will no longer be constrained by the physical location of data centers, hosting providers and hardware platforms

As products and services become more ‘composable’, Governance across the ecosystem will become critical

IMPLICATIONS

Organizations will become more flexible, managing a fluid set of internal / external resources and service providers

Governance becomes more centrally defined with decentralized execution

Cloud service selection should follow the overall enterprise cloud governance standards

Strong risk management systems are critical to manage increasing risks arising out of broader cloud deployment

Current organization need to evolve• Organization Design, roles and responsibilities

• Management systems

Org

aniz

atio

n &

Go

vern

ance

1 2 3 4 5

Implementation


Organizations must rethink their performance management approach to optimize the value of cloud

IMPACT

Cloud requires a dynamic financial model that measures consumption

With the change in business model, new metrics that measure service availability, service quality, responsiveness, ability to change will gain more importance

IMPLICATIONS

Performance management strategy introduces new levels of complexity in management reporting

Performance metrics are built into third party and service management contracts for all vendors delivering the cloud based service

Dynamic metrics tied back to SLAs will be critical for measuring success for cloud based services

Per

form

ance

Met

rics

1 2 3 4 5

Implementation


Cloud computing will drive rapid changes in skills and capabilities within the enterprise workforce

IMPACT

Cloud brings citizen centricity to focus which makes citizen and service orientation skills critical within the organization

Vendor management, contracting and relationship management skills will be critical to manage all the vendors and alliances

IMPLICATIONS

Deeper data analytics and citizen insight capabilities will be the norm

Training of staff on new skills required related to new and innovative services

Existing IT and other functional staff will likely need to be retrained or redeployed

Legal / operational support skills will be key to manage partnership agreements

Skills shift to managing vendor contracts and relationships of many vendors

Ski

lls &

Cap

abili

ties

1 2 3 4 5

Implementation


Government leaders need to accelerate adoption of emerging technologies and technical trends to optimize benefits from cloud

IMPACT

The technology function will be leaner with a more strategic focus rather than operational

Cloud’s big impact on Technology will be to move on-premise technology deployment to cloud

As more services migrate to cloud, Service Management, IT Vendor management and IT Quality management will become key differentiators

IMPLICATIONS

IT Strategy, Architecture and IT Plans to be reviewed and updated to reflect changes in strategy and cloud-enabled future governments

IT teams need to be retrained and redeployed

Budget for the maintenance of legacy systems may reside, so they need to be budgeted and worked into the overall costs

An IT services catalog needs to be dynamic globally and be applicable for each market

A DevOps approach will be required to get the cloud service delivered faster to achieve value

Tech

no

log

y

1 2 3 4 5

Implementation


Organizations will have to reassess location strategies to ensure optimized and compliant adoption of cloud

IMPACT

Migration to the cloud will require decommissioning and consolidation of technology assets

Decommissioned assets and locations will be a factor in the future state financial model

Removal of physical / technology assets will reduce the quantity of needed remote offices and data centers

IMPLICATIONS

Decommissioned technology assets may still book value and impact the existing operating budget

One-time financial write-offs will need to be factored into the overall business case

Excess data centers and remote locations will have to be repurposed or sold / leased to recoup cost

Role of branches need to be redefined and enhanced to provide a much better customer experience

Ass

ets

& L

oca

tio

ns

1 2 3 4 5

Implementation


Cloud will lead organizations to rethink and rebuild organization culture to harness enhanced value

IMPACT

The shift to a cloud-based environment will also require changes in long-held organizational beliefs and cultural norms

Governments as a whole need service-orientation, with a shift in mindset toward valuing the citizen experience above all else

Open and collaborative reporting and management across organizational functions and units facilitates faster citizen response

IMPLICATIONS

Need to address perceived loss of control / potential resistance by existing IT and other functions whose processes will move to cloud

Need to educate employees on this shift:• How will our culture change, and why?

• What is the risk if we do not make this change? What would be the consequences of continuing as is?

• Requires reinforcement of expected behaviors through formal and informal mechanisms and interventions

Requires changes in• Leadership Behaviors

• People practices

Regular communications on changes

Cu

ltu

re

1 2 3 4 5

Implementation


Louisiana State Analytical and Fusion Exchange prevents crime by securely gleaning intelligence from social media in real time

Effectiveness – 100% improvement in technical capabilities to detect and disseminate pertinent information

Ecosystem Connectivity – More than 350 municipal police departments supported by the center

CHALLENGEWith only 20 analysts, LA-SAFE needed to support law enforcement at various levels to detect, prevent, investigate and respond to criminal and terrorist activities as well as emergency situations. As a result, the center looked for ways to improve and accelerate how it identifies and disseminates pertinent intelligence to relevant agencies.

SOLUTIONLA-SAFE adopted a cloud-based Software as a Service social intelligence monitoring and collaboration solution to detect and analyze words, phrases and hints in real time, accelerating the ability to take preemptive or just-in-time actions against crime and other events that threaten public safety.

This center aids in keeping 4.6 million Louisianan residents safe


A tax administration agency in South Asia increases revenue collection by using advanced analytics to reduce fraud and waste

Effectiveness – 100% of tax returns that are filed are processed quickly and accurately

Speed – 99% faster identification of potential tax evaders

CHALLENGE A tax administration agency in South Asia needed a central tax management system to rapidly and accurately process tax returns submitted by employers and other entities that collect income taxes for the government. It also needed better insight into tax defaulters’ behaviors and characteristics.

SOLUTIONThe agency is using a cloud-based software solution that dynamically determines which tax returns require in depth investigation for fraud. Advanced analytics help the agency segment and profile defaulters; predict which groups present the highest risk; and develop actionable, targeted compliance strategies.

This agency processes 400 million tax returns annually


The city and county of Honolulu creates a customized cloud to improve information and service delivery

Time-to-Market – Reduced time to deploy applications from 1 week to only hours

Cost Effective – Lowered database licensing costs by 68 percent

Scalability – Supported a new property tax appraisal system that increased tax revenue by $1.4 million in 3 months

CHALLENGEThe City and County of Honolulu wanted to increase government transparency and provide more information, such as the city’s financial data, to its citizens. Honolulu also wanted to increase community involvement and improve the efficiency of its work order system.

SOLUTIONHonolulu deployed an Integrated Facility for Linux (IFL) engine running Linux on the city’s mainframe. This provided the necessary platform to provide the city’s data to citizens, and it enabled the city to create a custom cloud environment to deploy applications.

Honolulu wanted to improve its relationship with its citizens while increasing efficiency


3 IBM can help




IBM is serving the cloud computing imperatives in Governments

Infrastructureas a Service

Strategize how to use cloud to drive savings and revenue growth

Build and run your private or hybrid cloud

Utilize cloud services delivered from IBM Cloud

Business Processas a Service

Softwareas a Service

Platformas a Service

Hybrid Cloud Technologies

Expert Integrated Systems

Cloud Platform Technologies

Cloud Infrastructure Technologies

Cloud Security Services

Cloud Strategy and Design

Cloud Implementation

Cloud Migration Services


IBM is helping our clients achieve compelling business outcomes, no matter where the entry point is

BUSINESS PROCESSas a Service

SOFTWAREas a Service

PLATFORMas a Service

INFRASTRUCTURE as a Service

Automating Business Innovation

Marketplace of High Value Consumable Business Applications

Rapid App Development through Composable and Integrated Platform built using open standards

Enterprise Class, Optimized Infrastructure built using open standards

Business Process

Procurement

Payment Processing

Help Desk

Accounting

Recruiting Commerce

Supply Chain

Analytics

Talent Management

Collaboration

IT Management

Marketing

Development & DevOps

Big Data & Analytics

Security

Integration

Mobile

Traditional Workloads

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