August 2014 - NASACT Driving Innovation and Securing Data in Public Sector with Cloud Computing What...

August 2014 - NASACT

Driving Innovation and Securing Data in Public Sector with Cloud Computing

What does “cloud” mean and how can government use it effectively while maintaining the proper internal controls

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2Public

Agenda

Issues Facing States Today

Technology’s Fast Pace of Change

So What is the Cloud?

What Are Cloud Options?

Cloud not IF but…When and HowWhy Not

What about Compliance and Security? Advantages for Public Sector

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 3

Challenges in public sectorWith financial management for the CFO

Lower financial closing FTE cost when the financial system supports internal and external accounting requirements

56%

Lower general ledger and financial closing costs when general ledger and financial systems are integrated to produce accurate data

90%

Source: SAP Performance Benchmarking

Must improve government effectiveness & promote transparency & accountability

Ever-changing regulatory requirements

Save taxpayer dollars and free up more resources for agency missions

Must ensure stewardship of public funds

Fast and timely closing of the general ledger

Need to prevent fraud, waste and abuse

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Innovation In The Digital World

MillennialsWill Transform

customer demands and the workplace

Data Doubling

Every 18 months create opportunities

and risks

30BDevices

wirelessly connected to the Internet of Things

by 2020 (2)

80%Of all new

vehicles will come

connected to the internet by

2020 (1)

(1): http://www.gartner.com/newsroom/id/2636121

(2): https://www.abiresearch.com/press/more-than-30-billion-devices-will-all-wirelessly-connect

http://www.gartner.com/newsroom/id/2636121


MORE ORGANIZATIONSTAPPING INTO THE CLOUD…

75%+New IT expenditures will be for Cloud or mixed IT environments by 2016

70%+ CIOs will embrace a “cloud first” strategy by 2016

Sources: Saugatuck, IDC

Not if, but when and how?


So What is Cloud?

Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool

of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be

rapidly provisioned and released with minimal management effort or service provider interaction.

[1] "The NIST Definition of Cloud Computing"

http://en.wikipedia.org/wiki/Cloud_computing#cite_note-nist-1

http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf


Private Cloud,Hybrid

Public CloudOn-premise

Limited Scale Elastic Scale$ Determines Scale

Public Cloud

• Open data, non-PII, HIPPA etc

• Shared and typically lower costs

• Customer desires greater access to innovation, but wants minimal disruption to the Core Business Suite

On Premise

• Scales to any size that is affordable

• Custom Security – internally depending on funding and staff

• Operating plus Capital costs

• Customer desires to utilize current human and tech capital, knowing they both can carry risk for change

Managed Cloud – You partner to provide

• Enterprise grade cloud

• Critical 24 x 7

• Custom Security - contractual - compliance

• Customer desires greater access to innovation, real-time performance and lower operating costs, while leveraging existing investments in the Suite

Cloud optionsSubscription or bring your own license, elasticity, ubiquitous access

Business Requirements, Mandates and Data Sensitivity will drive choices

Infinite Scale

Private Cloud

Managed Cloud – Fully Self-Contained

• Enterprise grade cloud

• Mission critical 24 x 7

• Highly Secure – Dogs, Guards etc. – contractual - compliance

• Customer desires real-time performance, innovation and lower operating costs, while leveraging existing investments in the Business Suite

• Scale = volume and velocity of data


The Value of Cloud

• Minimizes expenses for infrastructure and operations

• Reduces complexity of traditional IT approaches

• Allows fast response to emerging trends

• Improves reach to your citizens and end users


Public sector and the cloud imperative

Of public sector organizations surveyed see cloud computing as a driver for innovation and differentiation

77%

Of public sector organizations surveyed believe the cloud computing will transform their organization and/or industry

94%

Sources: SAP Performance Benchmarking, 2013 State CIO Survey by NASCIO, TechAmerica and Grant Thornton, October 2013 ,

Of public sector organizations expect a major impact on organizational performance within five years

57%

MORE ORGANIZATIONSTAPPING INTO THE CLOUD…

Not if, but why not?


Advantages of Cloud vs. On-Premise Deployment

CloudTraditional On-Premise

Total Cost of Ownership Reduced by up to 50% Economies of scale

Higher Requires dedicated staffing, skills, support budgets, etc.

Impact on Cash Flow LowerMore Opex

HigherMore CapEx

Deployment Timeline Weeks – Months Quarters – Years

Innovation Timely Difficult to keep pace

Operating Risk Pay-As-You-GoAssume Risk of

Buying & Ops

Industry specializationDeep industry

expertiseDifficult to stay on

top

TCO reduced by up to

50% over 5 years

lifecycle


Regulations and Compliance


Trusted cloud solutions shape key government and private sector initiatives worldwide

1.2 million connected companies and government organizations from 190 countries collaborating on >$600B worth of commerce annually. That’s 3X-50X the size of any other business network

30 million cloud users

2 million Cloud deployments


Human Resources: Empower employees to meet agency goals

Procurement: Drive savings and reduce risk and operating expenses

Finance: Do more with less, respond to rapidly changing policy mandates

Collaboration & Social: Better connect employees and citizens across different agencies and geographies

Information Technology: Reduce infrastructure costs, increase organizational agility

The time is now: Start delivering better citizen services at a lower cost with cloud


Cloud computing benefits for public sectorDramatically improve the agility of your organization

Shorter time to value

• Leverage cloud as a conduit to adopt new technologies quickly

• Always have the latest versions of the application

• Leverage well-tested IT best practices

Do more with less

• Cloud-based solutions require less up-front capital investment

• The per-usage pricing model fits well with the capital and resource constraints of agencies

Lower barrier to innovation

• Innovate without disruption with a lighter IT footprint

• Increase innovation capacity by driving multiple projects in parallel

Scalability

• Add new capabilities more easily and in far less time than traditional application architectures would have needed


Thank You

Michele HovetPrincipal – State and Local GovernmentGreenwood Village, COM - 303-908-8700E - [email protected]


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