Thoughts on British ICT, energy & environment, cloud computing and security from Memset's MD
A couple of months ago HP started rumors that the G-Cloud had been canned, but that is most certainly not the case. I have spoken to a number of government officials and can confirm that it is going ahead. But what will it actually be, and is that what it should be?
I was technical co-lead on phase two of the G-Cloud project. Miles Gray of the NHS (the other lead), the technical team and I proposed a fairly detailed architecture for the G-Cloud (here). There were some core principals that we felt were vital: it would not be a “thing”, but instead a collection of cloud infrastructures, services and applications, probably mostly provided by private sector but with some public sector in there too, all bound together by open standards cloud APIs with an app store and services interchange at the heart. The Public Sector Network (PSN), the Government Secure Intranet’s (GSi) proposed successor, would be the unifying platform.
I am increasingly convinced that G-Cloud will happen. Martin Bellamy, Ministry of Justice official and previous G-Cloud project leader thinks so, and Chris Chant, now head of the programme, certainly thinks so too! The public sector is already moving to cloud; there are a number of local government initiatives with pooling infrastructure resources and running shared services. A good example is Hampshire, who run infrastructure and services for a number of smaller local authorities, linked together via the Hampshire PSN.
There are two main features that make G-Cloud different to other government ICT projects, and which are why it will work:
1) There is no “big bang” spend. We, the supplier community, are making the up-front investments and then simply offering those services to government on a pay-as-you-go basis, with no requirement for long-term contracts. Therefore, there is little risk to government.
2) The G-Cloud services will be vastly cheaper than what government is used to paying, but will come with a seal of approval from CESG’s new Pan Government Accreditor body so that government customers can have some surety that the services meet requirements.
On the security front, working with the security work stream we proposed multiple G-Clouds, one per Business Impact Level. Applications, data, suppliers and users at similar security levels would be grouped together.
The core commercial tenet would be government not pay anyone up front to build any infrastructure or software, but instead would consume everything on a pay as you go basis, with the app store doing the billing. Suppliers’ service quality record would be shared (a bit like eBay ratings), to enable cost-quality buying decisions, and supplier switching would be straight forward thanks to the disintegrated stack approach and standardized infrastructure and platform as a services (IaaS/PaaS).
The only parts that we envisaged vital for the government to own and control (to maintain its impartiality) were the app store / services interchange and the proposed “Pan Government Accreditor” – a centralized CESG body that would pre-certify G-Cloud components (IaaS/PaaS/SaaS, stand-alone applications, etc.). Cloud economics expert, Simon Wardley, of CSC’s Leading Edge forum, agrees that it is imperative that any app store remains centralized and government controlled.
I was therefore worried to learn at a briefing on PSN at last week’s Efficient ICT, Greener Government conference that Cable & Wireless are attempting to “do an Apple” and turn PSN into a platform where they offer 3rd party services, hosted on their infrastructure, to government, taking a slice of every transaction. Such plans should be resisted.
My other big worry about the G-Cloud was that they would only talk to the usual suspects – the large systems integrators that appear to have government ICT sewn up and have done a highly debatable job of delivering value – who I do not believe are capable of delivering the cost benefits of cloud. SMEs are going to be a vital part of the G-Cloud ecosystem, and as part of the technical architecture we envisaged ways to facilitate their entry. For example, by splitting up the stack an innovative software development SME, once they and their application was pre-certified, would not need to invest in List-X data centres to offer a secure solution, they could partner with a pre-certified IaaS or PaaS supplier and get their solution into the app store.
So, what of SMEs? Well, as an SME who has recently been signed up to the IaaS/PaaS foundation delivery partner activities for the G-Cloud project, I am pleased to report that they are staying true to their word of assigning 25% of the contracts to SMEs. The next step is for our Miniserver VM® virtual server and Memstore™ cloud storage services to go through accreditation with CESG’s new pan government accreditor. Some of the commercial aspects also need to be finalised, but the aspiration is to be able to provide IaaS to government via the G-Cloud framework as early as January 2012.
So far, so good, but there are hurdles to enable pre-certification, and thus easy buying of cheap, secure services: i) EU procurement rules remain a problem, though a framework agreement is coming out imminently which will hopefully enable pre-certification; ii) Security responsibility needs to be centralized, but getting SIROs to trust the pan government accreditor would be a major culture shift; iii) The usual suspects have huge vested interests and appear to have convinced government that a 30-40% saving is acceptable. It is not. The government should actually be aiming for a 70-80% savings on their ICT spend from the G-Cloud. If done properly, G-Cloud has the potential to be hugely disruptive and could be saving the government £12bn per year by 2020.
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However, that is merely in passing, I am concerned that the economic fundementals of the Cloud don't always suit government / public service / local authority organisations.
Cloud economics are excellent if the monetisation of costs and benefits are valid throughout the delivery chain. However, many of government's activities (local and central) do not have a direct correlation between cost and public good.
For example, consider the laudible aim of encouraging people to read more - more reading - more library activity - more Cloud transactions - more cost - project terminated early if successful because not all the relevant means of production are government owned, costs have a positive correlation with activity levels, unlike the situation where all relevant components of the delivery mechanism are government owned and become 'cheaper' as activity levels increase.
So much of the mind set behind the Cloud is Urban, if not urbane. We don't all live inside the M25 or along the M4 corridor. Even in 2011 I don't get ANY mobile phone signal at home and expensive broadband tops out at 940kps, so forget femto cells. My mobile batteries are all cycled out, my downloads take a week and I live in a very prosperous corner of Kent - hell I can hear the Channel Tunnel Terminal operations day and night, yet no 3G, no UMTS, no GPRS, just flakey GSM basic, IF I am lucky and its a big if.
Presently I am starting a brewery, but hi-tech and cool rather than sweaty, bearded and traditional, the Cloud would suit just perfect, but there appears to be a hole in the 'Ozone layer' over this part of Kent so it all has to be self contained.
I don't know about the Cloud, but I am prtepared to say that Memset ( http://www.memset.com/ ) is the SME Brewer's Web Host of choice.
Robin
Thanks for all your help
A software company (eg SME, existing supplier or even new supplier) wanting to offer a SaaS service to government under the G-Cloud programme, have a number of challenges.The first and potentially the hardest, is to get approval of an internal business case to invest the time, resources and money associated with creating a SaaS proposition. SaaS is a high risk/return model for suppliers, there are no guarantees of take up or subsequent revenue, so investment costs need to be kept as low as possible.The SaaS company also needs to be able to deliver the services on a government accesible and approved platform, which rightly or wrongly, are still very expensive to build and run.
The killer issue to the SaaS company comes when on top of their internal costs to build a G-cloud SaaS proposition, the SaaS company also has to fund the infrastructure costs with no revenue coming into the business, which typically results in a failed business case. (I have seen this many times!)
What is needed, in order to start the G-Cloud market going are comapnies such as C&W who are prepared to offer the infrastructure in a risk/reward model, enabling the SaaS company to focus on its own startup costs.
We now need more Iaas/Paas organisations to come forward who are prepared to offer similar market risk/reward propositions, to provide SaaS companies with choice and ensure Infrastructure charges are kept competitive.
Innovative approaches like C&Ws' should be supported, as without them the future of SMEs and New Suppliers creating SaaS services for G-Cloud, is very very bleak.
As an example, if I wanted to I could very easily offer a hosted Wiki solution via the G-Cloud from scratch with very little investment. I'd just get the infrastructure form one of the G-Cloud IaaS providers and stick Trac (open source project management & wiki that I'm a fan of) on it, get some people to do the support, bill in the same way I would any other customer and off we go. The extra bit would be going through the framework tender, but that is trivial - we are just about to submit ours and it has been less than work than one small tender with one local council!
For established SaaS providers offering services to the private sector G-Cloud should be equally easy to access. The difficult part is the infrastrcuture, but the IaaS people are doing that bit for you! You'd not even have to pay us anything to be offering services into G-Cloud in fact - just have the arrangement ready and when the first government customer bites press the button (literally) to spool up the infrastructure on our side in a matter of minutes.
Having just one supplier for any component would be bad news though which is why we should be wary of C&W's approach. I will eat my proverbial hat if their pricing is comparable to the private sector IaaS market.
Just wanted to say that your clear, informative posts are very much appreciated, esp. in clarifying cloud developments et al.
Rgds
Jon