Category Archives: Cloud

The challenges of shifting US Government IT into the Cloud

By David Bicknell

Good piece from Federal Computer Week (FCW) in the US about the challenges of shifting Government IT systems towards Cloud delivery.

Alan Joch’s piece, ‘Is government procurement ready for the Cloud?‘ points out that although cloud computing will offer speed and agility with agencies anble to take IT services up or down as necessary to quickly support new mission plans or workload changes, the reality – for now –  has yet to hit procurement practices.

As Joch says, “Many IT procurement practices and contracting vehicles were designed to help managers provision hardware and software, not on-demand services. Can the current acquisition practices translate easily to the dynamic world of cloud computing?”

Not really, says Barry Brown, executive director of the Enterprise Data Management and Engineering Division at Customs and Border Protection. He echoed a view shared by others in the federal government, and told FCW that for cloud computing, “The technology delivery model has changed. What has not changed is the procurement model.”

The US government has a Cloud-first policy which seeks to reduce costs and increase IT acquisition flexibility by pushing federal IT systems towards cloud environments. Each agency has until May to identify three IT resources that it will move to the Cloud.

But, reports FCW,  the move is straining traditional procurement departments. Rather than promoting speed and agility, in some cases Cloud initiatives are spawning extended contract negotiations and legal challenges that are making it take even longer for agencies to get the resources they need.

US Government Cloud First Policy

DWP defends £316m HP contract

By Tony Collins

The Department for Work and Pensions could lead the public sector in technical innovations. It has had some success in cutting its IT-related costs. It has also had some success so far with Universal Credit, which is based on agile principles.

It has further launched an imaginative welfare-to-work scheme , the so-called Work Programme, which seeks to get benefit claimants into jobs they keep.

Despite media criticism of the way the scheme has been set up – especially in the FT – a report by the NAO this week made it clear that the DWP has, for the most part, taken on risks that officials understand.

Some central government departments have updated business cases as they went through a major business-change programme and not submitted the final case until years into the scheme, as in parts of the NPfIT.

But the DWP has implemented the Work Programme unusually quickly, in a little more than a year, by taking sensible risks.  The NAO report on the scheme said the business case and essential justification for the Work Programme were drawn up after key decisions had already been made. But the NAO also picked out some innovations:

– some of the Work Programme is being done manually rather than rush the IT

– suppliers get paid by results, when they secure jobs that would not have occurred without their intervention. And suppliers get more money if the former claimant stays in the job.

– the scheme is cost-justified in part on the wider non-DWP societal benefits of getting the long-term unemployed into jobs such as reduced crime and improved health.

So the DWP is not frightened of innovation. But while Universal Credit and welfare-to-work scheme are centre stage, the DWP is, behind the safety curtain, awarding big old-style contracts to the same suppliers that have monopolised government IT for decades.

Rather than lead by example and change internal ways of working – and thus take Bunyan’s steep and cragged paths – the DWP is taking the easy road.

It is making sure that HP, AccentureIBM and CapGemini are safe in its hands. Indeed the DWP this week announced a £316m desktop deal with HP.  EDS, which HP acquired in 2008, has been a main DWP supplier for decades.

DWP responds to questions on £316m HP deal 

I put it to the DWP that the £316m HP deal was olde worlde, a big contract from a former era. These were its responses. Thank you to DWP press officer Sandra Roach who obtained the following responses from officials. A DWP spokesperson said:

“This new contract will deliver considerable financial savings and a range of modern technologies to support DWP’s strategic objectives and major initiatives such as Universal Credit.

“The DWP has nearly 100,000 staff, processing benefits and pensions, delivering services to 22 million people.

“DWP is on schedule to make savings of over £100m in this financial year for it’s Baseline IT operational costs, including the main IT contracts with BT and HPES [Hewlett Packard Enterprise Services].

“All contracts have benchmarking clauses to ensure best value for money in the marketplace.

“The five year contract was awarded through the Government Procurement framework and has been scrutinised to ensure value for money.”

My questions and the DWP’s answers:

Why has the DWP awarded HP a £316m contract when the coalition has a presumption against awarding contracts larger than £100m?

DWP spokesperson: “The Government IT Strategy says (page 10) ‘Where possible the Government will move away from large and expensive ICT projects, with a presumption that no project will be greater than £100m. Moving to smaller and more manageable projects will improve project delivery timelines and reduce the risk of project failure’.

“HM Treasury, Cabinet Office and DWP’s commercial and finance teams have scrutinised the DWP Desktop Service contract to ensure that it represents the most economically advantageous proposition.”

What is the role, if any for SMEs ?

DWP: “There are a number of SMEs whose products or services will form part of or contribute to the DWP Desktop Service being delivered by HP, for example ActivIdentity, Anixter, AppSense, Azlan, Click Stream, Cortado, Juniper Networks, Quest Software, Repliweb Inc, Scientific Computers Limited (SCL), Westcon etc.”

Why is there no mention of G-Cloud?

DWP: “Both the new contract and the new technical solution are constructed in such a way as to support full or partial moves to cloud services at DWP’s discretion.”

Comment:

For the bulk of its IT the DWP is trapped by a legacy of complexity. It is arguably too welcoming of the safety and emollients offered by its big suppliers.

The department is not frightened by risk – hence the innovative Work Programme which the NAO is to be commended on for monitoring at an early stage of the scheme. So if the DWP is willing to take on sensible risks, why does it continue to bathe its major IT suppliers in soothingly-large payments, a tradition that dates back decades? What about G-Cloud?

DWP reappoints HP on £316m desktop deal

DWP signs fifth large deal with HP

“DWP awards Accenture seven year application services deal”

“DWP awards IT deals to IBM and Capgemini”

G-Cloud – it’s starting to happen

By Tony Collins

Anti-cloud CIOs should “move on” says Cabinet Office official, “before they have caused too much harm to their business”.

For years Chris Chant, who’s programme director for G Cloud at the Cabinet Office, has campaigned earnestly for lower costs of government IT. Now his work is beginning to pay off.

In a blog post he says that nearly 300 suppliers have submitted offers for about 2,000 separate services, and he is “amazed” at the prices. Departments with conventionally-good rates from suppliers pay about £700-£1,000 a month per server in the IL3 environment, a standard which operates at the “restricted” security level. Average costs to departments are about £1,500-a-month per server, says Chant.

“Cloud prices are coming in 25-50% of that price depending on the capabilities needed.”  He adds:

“IT need no longer be delivered under huge contracts dominated by massive, often foreign-owned, suppliers.  Sure, some of what government does is huge, complicated and unique to government.  But much is available elsewhere, already deployed, already used by thousands of companies and that ought to be the new normal.

“Rather than wait six weeks for a server to be commissioned and ready for use, departments will wait maybe a day – and that’s if they haven’t bought from that supplier before (if they have it will be minutes).  When they’re done using the server, they’ll be done – that’s it.  No more spend, no asset write down, no cost of decommissioning.”

Chant says that some CIOs in post have yet to accept that things need to change; and “even fewer suppliers have got their heads around the magnitude of the change that is starting to unfold”.

“In the first 5 years of this century, we had a massive shift to web-enabled computing; in the next 5 the level of change will be even greater.  CIOs in government need to recognise that, plan for it and make it happen.

“Or move on before they have caused too much harm to their business.”

He adds: “Not long from now, I expect at least one CIO to adopt an entirely cloud-based model.  I expect almost all CIOs to at least try out a cloud service in part of their portfolio.

“Some CIOs across government are already tackling the cloud and figuring out how to harness it to deliver real saves – along with real IT.  Some are yet to start.

“Those that have started need to double their efforts; those that haven’t need to get out of the way.”

Cloud will cut government IT costs by 75% says Chris Chant

Chris Chant’s blog post

Cloud specialist claims China public sector IT success

By David Bicknell

It’s not too often you see a press release announcing the successful conclusion of a public sector IT project.

But it’s perhaps a sign of the times that there is such an announcement, and that it comes not from the West, but from the East. It’s in China.

China Intelligence which provides virtualisation technology application and cloud computing related consulting services, products, solutions and implementation service in China says it  has completed the third phase of a datacentre virtualisation project for the Hebei Maritime Safety Administration of China.

‘Hebei MSA’ is a governmental agency which oversees all matters related to the safety of the sea, including shipping, of  Hebei Province in the north of China. The project which began in October 2010 was completed in November 2011.

I have to admit I didn’t know too much about China Intelligence, but apparently, it’s a virtualisation and cloud computing specialist and a VMware partner  with a string of Chinese clients, including  the State Grid Corporation of China, China Unicome, China Southern Power Grid, China Life Insurance Group, China Huaneng Group and China Power Investment Corporation.

I have at this stage no way of verifying whether the virtualisation project was as successful as has been claimed, but it’s rather interesting that a Chinese IT services company announces a successful project on PR Newswire.

Perhaps it’s looking for overseas business.

School report on Govt ICT Strategy – a good start

By Tony Collins

In a review of progress on the Government’s ICT Strategy after six months, the National Audit Office says that the Cabinet Office has made a “positive and productive start to implementing the Strategy”.

The NAO says that at least 70 people from the public sector have worked on the Strategy in the first six months though the public sector will need “at least another 84 people to deliver projects in the Plan”.

The UK Government’s ICT Strategy is more ambitious than the strategies in the US, Australia, Netherlands and Denmark, because it sets out three main aims:

– reducing waste and project failure

– building a common ICT infrastructure

– using ICT to enable and deliver change

The US Government’s ICT Strategy, in contrast, encompasses plans for a common infrastructure only – and these plans have not produced the expected savings, says the NAO.

In a paragraph that may be little noticed in the report, the NAO says that senior managers in central government have plans to award new ICT contracts (perhaps along the pre-coalition lines) in case the common solutions developed for the ICT Strategy are “not available in time”.

The NAO report also says that “suppliers were cautious about investing in new products and services because of government’s poor progress in implementing previous strategies”.

Of 17 actions in the Strategy that were due by September 2011, seven were delivered on time. Work on most of the other actions is underway and a “small number” are still behind schedule says the NAO.

The NAO calls on government to “broaden the focus to driving business change”.

Some successes of the UK’s ICT Strategy as identified by the NAO:

* The Cabinet Office has set up a small CIO Delivery Board led by the Government CIO Joe Harley to implement the ICT Strategy. The Board’s members include the Corporate IT Director at the DWP, CIOs at the Home Office, MoD, HMRC, Ministry of Justice and Department for Health, together with key officials at the Cabinet Office. The departmental CIOs on the Board are responsible directly to Francis Maude, Minister for the Cabinet Office, for implementing the ICT Strategy in their departments and are accountable to their own minister. No conflicts have arisen

* Senior managers in central government and the ICT industry are willing to align their strategies for ICT with new cross-government solutions and standards but need more detail.

*  Some suppliers have offered help to government to develop its thinking and help accelerate the pace of change in ICT in government.

* The Cabinet Office intended that delivering the Strategy would be resourced from existing budgets. Staff have been redirected from other tasks to work on implementing the Strategy. “We have found collaborative working across departmental boundaries. For example HMRC and the MoD have combined resources to develop a strategy for greener ICT. Teams producing the strategies for cloud computing and common desktops and mobile devices have worked together to reduce the risk of overlap and gaps.

* The BBC has shown the way in managing dozens of suppliers rather than relying on one big company. For BBC’s digital media initiative, the Corporation manages 47 separate suppliers, says the NAO.

* The Cabinet Office intends that departments will buy components of ICT infrastructure from a range of suppliers rather than signing a small number of long-term contracts; and to make sure different systems share data the Cabinet Office is agreeing a set of open technical standards.

* Some of the larger departments have already started to consolidate data centres, though the NAO said that the programme as a whole is moving slowly and no robust business case is yet in place.

* The Cabinet Office is starting to involve SMEs. It has established a baseline of current procurement spending with SMEs – 6.5% of total government spend – and hopes that the amount of work awarded to SMEs will increase to 25%. Government has started talking “directly to SMEs”, says the NAO.

Some problems identified in the NAO report:

* Cloud computing and agile skills are lacking. “Government also lacks key business skills. Although it has ouitsourced ICT systems development and services for many years, our reports have often stated that government is not good at managing commercial relationships and contracts or procurement.”

* Suppliers doubt real change will happen. The NAO says that suppliers doubted whether “government had the appropriate skills to move from using one major supplier to deliver ICT solutions and services, to managing many suppliers of different sizes providing different services”.

* The Government CIO Joe Harley, who promoted collaboration, is leaving in early 2012, as is his deputy Bill McCluggage. The NAO suggests their departures may “adversely affect” new ways of working.

* The NAO interviewed people from departments, agencies and ICT suppliers whose concern was that “short-term financial pressure conflicted with the need for the longer-term reform of public services”.

* The culture change required to implement the Strategy “may be a significant barrier”.

* The Cabinet Office acknowledges that the government does not have a definitive record of ICT spend in central government (which would make it difficult to have a baseline against which cuts could be shown).

* The Cabinet Office has not yet defined how reform and improved efficiency in public services will be measured across central government, as business outcomes against an agreed baseline.

**

Amyas Morse, head of the National Audit Office, said today: ” ICT is going to play an increasingly important role in changing how government works and how services are provided.

“The Government’s ICT Strategy is in its early days and initial signs are good. However, new ways of working are as dependent on developing the skills of people in the public sector as they are on changes to technology and processes; the big challenge is to ensure that the Strategy delivers value in each of these areas.”

NAO report:  Implementing the Government ICT Strategy: six-month review of progress.

Dedicated Cloud servers make a difference says Puma

By Tony Collins

Jay Basnight, the head of digital strategy at sports shoe and sportswear manufacturer Puma, has told CIO how his company moved from four cloud suppliers – Amazon, Computer Sciences Corporation, Rackspace and Slicehost (now part of Rackspace) –  to cloud supplier Eucalyptus.

Eucalyptus provides Puma with dedicated servers rather than spreading the company’s data and applications across servers used by other businesses, as is the case at Amazon, says Basnight. That helps make privacy audits easier because he can point to a specific server where data resides.

“This allows you peace of mind that you’re not sharing infrastructure with anyone else.”

Consolidating clouds saves “significant” money says Basnight – as much as 50 percent per hour due to better contract terms and economies of scale.

CIO article.

 

G-Cloud and agile briefings

By Tony Collins

On 22 November the Government Digital Service is giving a briefing for potential G-Cloud suppliers. It’ll be streamed live.

Officials say the briefing will be particularly useful to suppliers whose employees have never participated in a government tender.

At the ApplyCamp, officials will explain G-Cloud, steps in the OJEU procurement process, what information potential G-Cloud suppliers need to give, and what happens next.

The event is particularly aimed at Infrastructure as a Service, Platform as a Service, Software as a Service and other specialist cloud service suppliers. It will be held at Google, 76 Buckingham Palace Road, London SW1W 9TQ – 3pm – 5pm.

Agile TeaCamp – 24 November

Between 4pm and 6pm at the Cafe Zest, House of Fraser, Victoria St, London, there will be talks on agile. Derrick Cameron, MD of software consultancy Eximium and COO of agile software house Procession will speak on “Becoming the Intelligent Buyer”.  Chris Parsons, a “freelance thinker, coder and trainer” will talk about the e-petitions project and the aims of the Agile Delivery Network.

Teacamps in November and December – Government Digital Service

UK GovIT often a barrier not enabler says Cabinet Office official

By Tony Collins

In an interview for UKauthority.com Chris Chant, Executive Director at the Cabinet Office and head of the G-Cloud programme,  debunks the claims of some that GovIT doing a great job and should remain largely untouched.

Chant says: “IT is supposed to be an enabler. Quite often in my experience in government IT it is actually a barrier to getting things done. That’s no way to use IT. It is supposed to support what we do.”

His criticism puts into context claims by some in the civil service that GovIT is an unpublicised success because of the ease and success of online re-taxing of vehicles, the payment of benefits to millions of people and the collection of taxes.

Chant has made clear his concern that some departments are locked into major IT suppliers through costly, inflexible long-term contracts that, in some cases, are being signed anew.

“In the main we are not delivering good quality IT to government and public sector workers. We are not delivering good IT solutions to the citizen …”

He calls for internal change and describes SMEs as “front and centre to what we need”.

“It is with SMEs that agility and innovation lie, and it is that market we are really encouraging… Good IT is not developed by spending a long time trying to work out a definitive answer, and then taking ages over delivering it only to discover it is not what we needed in the first place. It is about iteration. I have said all along that we do not have all the answers. We will develop as we go and take SMEs with us.”

Asked whether the public sector is ready for the cloud Chant replies: “No we are not. We are quite a way from that… We are very well positioned to operate in a world where our IT is delivered by multinationals but now it is a different world.”

He says that the cloud has security limitations. “It is difficult to see the cloud in the short term handling some of the higher security aspects of what we do but for a lot of what government does it’s about commodity products and we need to get people in who know how to handle that.”

The focus he says must always be on the citizen – assumptions should not start from a departmental or systems standpoint. “We will need to change the way we do things; we will need some new people and I suspect a lot of retraining. I think we will need a lot fewer people working on the client side of government IT…

“We are in really tough times and the idea that we can operate with [current] cost levels is wrong…”

Government clouds take shape – UKauthority.com.

The unavoidable truths about GovIT – Chris Chant.

Vested interests will try to stop GovIT changing.

What exactly is HM Revenue and Customs paying Capgemini billions for?

DWP signs new large contracts with HP, Accenture, IBM and Capgemini.

What exactly is HMRC paying Capgemini billions for?

By Tony Collins

When the National Audit Office published a largely-positive report on HMRC and its online filing systems last month, the department received some justifiably good media coverage.

What was little noticed was that auditors were unable to get a breakdown of what HMRC is paying its “Aspire” systems suppliers Capgemini and Fujitsu for online filing.

Collect your car after a service and your bill has a breakdown of the parts used, their cost, and the cost of labour. But when HMRC pays around £8bn to Capgemini for its Aspire IT service, a clear breakdown of costs is not provided.

Says the NAO report:  HM Revenue & Customs – The expansion of online filing of tax returns:

“HMRC has a high-level view of the overall costs of ICT provision through the ASPIRE contract. It has been taking steps to improve that information and achieve cost savings. It does not yet have a detailed breakdown of the costs of online filing services, so it cannot benchmark those costs to assess their value for money.

“HMRC is currently negotiating with the ASPIRE contractors to obtain a clearer breakdown of the costs of ICT services provided.”

In case you think the NAO has made a mistake, and that HMRC must surely have a breakdown of the costs of Capgemini’s services, the NAO makes it completely clear that the Department has no such breakdown.

“The ASPIRE contract includes a rolling programme of benchmarking the prices HMRC pays for the various contracted services, including those relevant to online filing … Since 2010, HMRC has introduced new processes to improve information on the cost and use of ICT and benchmarking of key ICT service lines. These processes cannot yet provide information in sufficient detail to benchmark and challenge the cost of individual online filing services…”

Unfortunately for taxpayers it is not unusual for a department to pay its main IT supplier without having a full breakdown of the bills.

Several years ago the Conservative MP Richard Bacon asked criminal justice officials for a breakdown of costs on the “Libra” contract for magistrates’ courts IT. The Department didn’t know. So it referred Bacon to Fujitsu, Libra’s main supplier.

Fujitsu eventually provided a breakdown so vague – with high-level categories such as “network services” – that Bacon had little choice but to ask the same questions repeatedly to find out how public funds were being spent with Fujitsu.

In the end Bacon failed – and he had little support from departmental officials.

Now, about 10 years on, Capgemini is keeping HMRC in a similar level of ignorance.

Can any department be trusted with the public funds to pay its IT suppliers billions of pounds without a clear and unambiguous breakdown of what it is paying for?

A supplier’s reluctance to supply a breakdown of costs is understandable.  A clear breakdown could clear a path through the fog of supplier pricing, so it could make price comparisons easier.

It is up to HMRC to insist on a breakdown.  Its IT services have been outsourced since 1994. Shouldn’t it know exactly what it is paying billions for by now?

Chris Chant, an Executive Director in the Cabinet Office, has deplored the high costs of locked-in long-term contracts with out-of-season monolithic suppliers.  Does the Aspire contract alone make a good case for the reform of central government?

The unavoidable truths about GovIT – Chris Chant.

SaaS or Cloud SME? – get in touch says Cabinet Office official

By Tony Collins

Chris Chant, Executive Director in the Cabinet Office working as Programme Director for the G-Cloud initiative, says in a blog post that “if you are an SME and you have a SaaS or other cloud service that government might use – we want to know about it”.

Chant says the government is changing the way it buys and uses IT. “We have trained our suppliers and ourselves to think that we need big, complex solutions to complicated problems; which has meant that all too often it’s only the big, complex suppliers that get a look in.

“We are changing all this. We are giving SMEs and ourselves a chance to work together by levelling the playing field for all IT suppliers.”

Chant says it won’t happen overnight and mistakes may be made.  “This is new territory for many departments and very few are experienced at handling this new way of working.

“I think it’s fair to say that many just can’t see how this can happen yet though
many know it must.” Government users are not so different to others.

“First off government has realised that it’s not that different. From now
on, if government wants some IT,  it needs to do what everyone else does and look  at what’s already available, not just what we can pay to have built for us and not just what we are used to doing.

“It will be uncomfortable, uncharted territory for many but it must be done. It is unacceptable for things to remain the same. So if you are a SME and you have a SaaS or other cloud service that government might use – we want to know about it.”

Chant says that government will use open standards wherever it can, and buy IT on pay-as-you-go or short term contracts.

“Some contracts may be longer but there must be a break option, in my view, at no later than 12 months.

“Of course organisations will offer lower prices for longer lock-ins but, as I’ve said before, the cost of being unable to exit will almost always outweigh the savings.”

Chant says that if you are an SME, any supplier that’s never worked with government, or an existing supplier that “gets” cloud “you are the type of people we need to work with the deliver the savings all of us need”.

Talk to us, he adds.

Chris Chant’s blog post.

Vested interests will try to stop GovIT changing.