Best Business Practices for U.S. Government …

Cloud Computing Services Program Management Office Federal Acquisition Service

General Services Administration

Best Business Practices for

USG Cloud Adoption

September 2016

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Table of Contents

Purpose............................................................................................................................................ 3 Background ..................................................................................................................................... 3 What Is This Cloud Computing Stuff? ........................................................................................... 5

1. Software as a Service (SaaS). .............................................................................................. 6 2. Platform as a Service (PaaS). .............................................................................................. 7 3. Infrastructure as a Service (IaaS)........................................................................................ 7 Your Agency Is Directed To Move To The Cloud, Now What?.................................................... 9 Technical / Business Requirements Considerations ..................................................................... 12 1. If Migrating to the Cloud, What Cloud Hosting Deployment Model Can Meet My Agency's Needs?....................................................................................................................... 12 2. Develop the Business Case Analysis ................................................................................. 16 3. Cost Baseline Evaluation ................................................................................................... 22 4. Changing Cloud Service Providers .................................................................................... 23 How Do I Procure Services For The Cloud? ................................................................................ 23 Estimating the Pay-As-You-Go pricing........................................................................................ 29 My Application has been migrated to the Cloud, Now What? ..................................................... 30 Conclusion .................................................................................................................................... 31 Appendix 1: Terms used in the Sample Decision Flow Process .................................................. 32 References..................................................................................................................................... 36

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Purpose

This guide provides an overview of business practices for federal agencies to consider when preparing for a migration to the Cloud. It provides Program Managers (PMs) with actionable guidance for the planning and solicitation of their products or services through a Systems Integrator (SI) into an environment hosted by a Cloud Service Provider (CSP). Being a PM is a privilege, and as such, you must constantly think about how each activity or event impacts your program baseline. Successfully accomplishing this requires the use of innovative strategies to meet changing budgetary realities while remaining responsive to the needs of your mission partners. To assist the PM in planning the transition earlier in the program lifecycle and to successfully execute transition to a CSP, this guide documents best practices and lessons learned along with suggested processes. Additionally, it is crucial to your program's success to collaboratively engage your stakeholders throughout the acquisition lifecycle to improve IT capability delivery and Mission Partner satisfaction. Considerations for planning a migration to the Cloud include:

Knowing your current architecture and developing a technology program/project schedule.

Developing a plan to migrate products and/or services to the cloud to include capacity management, performance metrics, and historical contractual costs.

Service Level Agreements (SLA)

Background

System automation has remained at the core of the Federal Government Information Technology (IT) infrastructure for decades. From the Hollerith mechanical tabulator (1890 Census Bureau) to the Army's first programmable digital computer, the ENIAC, there has been a constant evolution to perform quickly and more efficiently with the use of computer technology.

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National Aeronautics and Space Administration (NASA) grasped the incredible power of IT in the 1960's with the space program and the advent of mainframe server farms and data centers. NASA even developed one of the first notebook style computers for the 1985 space shuttle mission. Data centers consisting of mainframe computers, later known as servers, were not only crucial in the Federal Government, but also corporate and educational environments.

The expansion of personal computing, data center management, and software applications led to the evolution of overly expensive infrastructure within the Federal Government during the 1990's.

Knowledge Management: In the early 2000's, VMware created virtualization of servers to reduce the infrastructure footprint. Through virtualization, agencies minimized the infrastructure from thousands of servers to approximately two hundred. The military services then initiated programs such as Knowledge Management (KM) to increase the sharing of knowledge, leveraging the internet, and provide near-ubiquitous access to information no matter where a person is geographically located in the world. KM was a successful evolution for the reduction of servers, loss of intellectual data as a result of personal computing, and overhead burden of the vastly dispersed data centers. Each service maintains its own version of KM (Air Force Knowledge Online, Army Knowledge Online, Joint Knowledge Online, etc.). The transition to KM within DoD was the initial attempt to deliver what we call "Cloud Computing" today, but it was not enough. Not only was the data center becoming overly expensive to manage, the threat of malware, or malicious coding, increased data center operational costs astronomically.

By 2010, the Office of Management and Budget (OMB) implemented the Data Center Consolidation Initiative to reduce costs, eliminate redundant applications, and optimize the vast amounts of data centers dispersed globally. In 2011, OMB initiated the "Cloud First Policy" to enable scalability and use only the resources that are required to compute data. Today, this evolutionary change in IT has changed the landscape in how we use IT resources and is the impetus for this guide.

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Hosting Methods: Then and Now ? Moving from Mainframe to Cloud Architecture

What Is This Cloud Computing Stuff?

Cloud computing, or the cloud, is the access of information through the internet from a third party provider. Users have been using this infrastructure model from a commercial perspective going back to the days of America Online (AOL). Today, the landscape is so diverse with CSPs such as Google, Microsoft, Amazon Web Services (AWS), Autonomic Resources, Oracle, VMware, and many others.

Essentially, cloud allows agencies to rent the computing resources it requires, rather than modify a "brick and mortar" establishment, build the infrastructure, employ IT personnel, and operate and maintain the data center. To further enhance the cloud basics, the National Institute of Standards and Technology (NIST), defines the essential characteristics of cloud computing in the below table:

Essential Characteristic On-demand

self-service

Description

A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically, without requiring human interaction with each service provider.

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Essential Characteristic

Broad network access Resource pooling

Description

Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations). The provider's computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, and network bandwidth.

Rapid elasticity

Measured service

Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.

NIST Essential Characteristics of Cloud Computing

NIST's Essential Characteristics of Cloud Computing ? is a link to NIST Special Publication 800-145 explaining the essential characteristics what IT services are considered cloud computing.

NIST further defined three (3) delivery models for Cloud Computing:

1. Software as a Service (SaaS). The capability is provided to the consumer to use the provider's applications running on a cloud infrastructure. The applications are accessible from various client devices through either a thin client interface, such as a web browser (e.g., web-based email), or a program interface. With the possible exception of limited user-specific application configuration settings, the consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities.

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Software as a Service Delivery Model 2. Platform as a Service (PaaS). The capability is provided to the consumer to deploy

onto the cloud infrastructure consumer-created or acquired applications created using programming languages, libraries, services, and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly configuration settings for the application-hosting environment.

Platform as a Service Delivery Model 3. Infrastructure as a Service (IaaS). The capability is provided to the consumer to

provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the

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underlying cloud infrastructure, but has control over operating systems, storage, and deployed applications; and possibly limited control of select networking components (e.g., host firewalls).

Infrastructure as a Service Delivery Model

The following are the four (4) deployment models as defined by NIST:

Model Private cloud Community cloud

Public cloud

Hybrid Cloud

Cloud Infrastructure Is

Managed by

Provisioned for exclusive use by a single organization comprising multiple consumers (for example, business units, etc.). Provisioned for exclusive use by a specific community of consumers from organizations that have shared concerns (e.g., mission, security requirements, policy, and compliance considerations). Provisioned for open use by the general public.

Composition of two or more distinct cloud infrastructures (private, community, or public) that remain unique entities, but are bound together by standardized or proprietary technology that enables data and application portability.

Owned, managed, and operated by the organization.

May be owned, managed, and operated by one or more of the organizations in the community, a third party, or a combination. Owned, managed, and operated by a business, academic, or government organization, or a combined organization. Each infrastructure may be owned, managed, and operated by one or more of the organizations involved.

NIST Cloud Deployment Models

Location On or Off premises

On or Off Premises

On the premises of the cloud provider. On or Off Premises

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