Cloud vs On-Premise Software: And the Winner is…

1 Presenters: QR CodeDate: Cloud vs On-Premise software : And the Winner Moderator, Micah Myers, Information Technology Director, City of St. Cloud , MN Speakers: Greg Jonsen, SaaS Leader, State of Minnesota David Dukes, Asst. Finance Director, Williamson County, TX Wayne Hayden Moreland, Director Data Center, State of South DakotaMay 21, 2014 State of Minnesota Cloud ExperiencesGreg JonsenSoftware as a Service Leader5/21/14 AgendaoQuick BiooOverview State of Minnesota IToWhat is SaaS ?oWhat is The Cloud ?

2 OSMN Enterprise Cloud PortfoliooBenefits of the CloudoMyth of On Prem versus Cloud SecurityoWhere is this all going?Quick Bio on Greg Jonseno7 Years at Dish Network (formerly Echosphere Corporation) in a variety of roles (mostly IT)o17 Years at HealthPartners in a variety of IT roles including CISO, with deep dives into HIPAA, Sarbanes Oxley, COBIT, SAS70, the software as a Service Leader at the State of Minnesota ServicesOverview of State of MinnesotaoHave embarked on ConsolidationoAbout 2,000 IT WorkersoConsolidation involves Exec Branch OnlyoAbout 2 years into ConsolidationoHybrid Model, Slow ProcessoApprox 5,000 servers on prem , In Cloud ?

3 O76 different Agencies, Boards, and commissionsWhat is SaaS ?oSaaS = software as a ServiceoNot IaaS (Infrastructure as a Service)oNot PaaS (Platform as a Service)oGenerally (but not always) it is end user software provided at an enterprise level and/or in a multi tenant delivery modeloIn bigger IT shops, it could be delivered on prem , but generally, it is Cloud basedoMulti tenant is becoming more and more prevalent, partly because it lowers the operational costs (economies of scale)What is The Cloud ?

4 OPrivate and Public CloudsoPublic Clouds are generally delivered by private sector companies, serving a wide variety of customers or tenantsoPrivate Clouds are generally limited to one company or entityoPrivate Clouds can be delivered either on prem or in a hosted solution oClouds are just combinations of hardware and software , providing IaaS, PaaS, SaaS, Enterprise Cloud PortfoliooCisco ScanSafe (Web Filtering)oMicrosoft Office 365 Dedicated (E mail, SharePoint, Instant Messaging, looking at ITAR)oMicrosoft FOPE/EOP (e mail virus protection)oAirWatch (Mobile Device Management)oAWS (Amazon Web Services, SaaS)Benefits of The Cloud oLess Expensive (Economies of Scale, Economies of Scale, Economies of Scale)oNo capital outlay for upgrades, less bumpy expendituresoMore Secure (not universally accepted.)

5 Yet)oLess painful upgradesoFaster access to new featuresoFaster to stand up Myth of On-prem vs Cloud SecurityoJust because you own your own data center does not mean it is more secure. In fact, generally it is notoFor instance, SMN has a very secure data center, but the Microsoft Data Centers for O365 are much more physically secureoMy experience with Cloud providers is that their policies and procedures are, in general, more mature than what I ve seen in IT shops that I know about, or have worked atoJust because I know where my data center is, and I know who my employees are.

6 Doesn t mean I think we can do a better job fighting the bad guys or preventing accidental or insider breachesWhere is this all going?oKids do everything in the Cloud (they are your future employees)oSome IT Functions (E mail for example) are already disappearing from on prem (Microsoft has announced that SharePoint will only be available in the Cloud in the future)oAll commoditized functions will disappear from on prem in the next 5 10 years (ERP? CRM? Collaboration?)oNon commoditized functions will be candidates for IaaS and PaaSoLots of new functions will never have on prem equivalents, only delivered in the Cloud (things like Google Apps, Yammer, YouTube, etc.)

7 THANKS!GO Cloud !Case Study:Williamson County, TexasDavid M. DukesAssistant Financial DirectorWilliamson County, TexasCloud vs On PremiseWilliamson County, TexasTremendous GrowthDevelopment of Economic BaseHigh Tech IndustryManufacturing CompaniesHealthcare IndustryHigher EducationEvolution of County GovernmentNeed for meaningful data to empower County government planning and decisionsInternal reporting needs to provide Business Intelligence and Internal TransparencyData Growing by 50% annuallyIncreased demand from taxpayers for external reporting24/7 instant reportingBanking, investing.

8 Credit rating incentivesImproved accountability at all levelsCounty Government in need of RespectCities and states develop a brand name and market themselvesCounties serve as a foundation to grow other programsAccurate and timely internal and external reporting will improve respectOur 2012 2014 GoalsGoalsUpgrade older Oracle ERP version to current releaseImprove Timeliness of ReportingProvide Information through TechnologyImprove County wide CommunicationProvide Understanding of County Operations to all Audiences Executives to Constituents for better collaboration and unification of goalsLeverage Mobile and Cloud TechnologiesObstaclesGrowing population demands information and technical advancementsInfrastructure of supporting data growth Old Guard was resistant to changeIdea that if people don t know how much money they have.

9 They won t spend itCounty was transforming from rural to urbanCounty business very fragmentedBuild vs Buy and try to Configure a Reporting Solution for Innovative Technologies Cloud Is it secure? What is the cost? Will it work with an on premise ERP Are there set up / hardware costs? What about on going costs? What is the Benefit vs. On Premise? Cloud Considerations Low Up Front Costs Quicker implementation Provider Hosts and Maintains Upgrades / Updates Made Simple Minimal Disruption and Increased Value IT can focus on innovation rather than Maintenance Pay as You Go Predictable Subscription Costs MobileOn Premise Considerations Internal IT team to maintain Greater control and flexibility for accessing the application database Extensive hardware needed More control about when and if to upgrade Own the ERP SoftwareOur Specific Issues

10 (ERP):Current ERP system was recently upgradedRecent purchase of new virtual serversWanted to Maintain ERP customizationWanted to Maintain control of databasesIT personnel and hardware already in placeAlready owned the ERP softwareOur Decision: Hybrid Approach On Premise ERP Cloud Based Business Intelligence and Reporting with the Performance Center Suite of ServicesPublic / Private PartnershipWilliamson County and Mo mix Solutions joined forces in a collaboration to deploy a Cloud based SaaS Solution that will serve time technology partnerHelped Wilco to implement OracleSupported Wilco s Vision of Internal and External TransparencyCollaborated on a Solution by and for Government Performance and TransparencyPerformance Center