Persistent Reservations

Some standing reservations have immeasurable value. Date night with your spouse. Game day with your kids. If you travel frequently you may have a favorite airplane seat or favorite car rental type that you consistently try to reserve. Maybe even a standing lunch or dinner reservation. These types of reservations are beneficial for family, social and business relationships.

But.

Persistent Reservations in the Cloud Computing context offer limited utility. They go by a handful of names; Reserved Instances, Reserved Pools, Standby Capacity, etc. The names are used to describe a portion of your aggregate resource pool that is in a warm-idle state – essentially, waiting for you to have a defined use. It could be for burst/surge capacity, it could be in the context of COOP/DR , support of a periodic batch job or even as part of a Q/A cycle. We all have these type of workloads but if you are leveraging resource reservations to tackle them – consider the alternative – building your application to scale and workload sizing. Given the austere condition of budgets – resources without a defined purpose need to go.

Supply side Vendors, love, love, this model because it allows them to monetize a portion of their infrastructure that would otherwise be without commitment. The expense line to manage them is some small number over zero and the likelihood of you calling on their use is some other number slightly over zero. I think about it almost like one of those insurance premiums you do not really need but continue buying on a yearly basis because it was always included in your binder even though you never knew what it was.

Consider having an open dialogue with your procurement partners about why you have the resource reservations and how often have they been leveraged in the previous calendar year. My guess is not very often. The inspection – I think will lead you down one of two different paths. Either the application that leverages the persistent reservation was not sized correctly or there was a rouge IT project that claimed use of the resource.

Claim it back. Work on sizing the application properly. Tools to help in this regard are plentiful.

That is Anthony Bourdain saying “No Reservations” … No I do not know why he is covered in mud looking like a zombie. I just happen to like the show and tried to get a reservation at his place in NYC recently…..

Current Top Ten List FAQ’s

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I’ve been traveling a bit recently and wanted to share with you the top 10 questions I’m most frequently asked about right now by IT leadership and executive professionals evaluating cloud investments in 2012.

1.      Should I build my own or rent one from someone else?

Your teams are already doing it without your knowledge. Formalize an initiative, do both by building a hybrid model. And do not penalize the early movers. Figure out how to empower them and move your data sets back inside of your governance model at the same time. Inspect your T+E reports for consistent spend on Amex cards to cloud providers if you have any doubt about the usage.

2.     Its hype right? I lived through time sharing, the xSP blowup and invested in an IPO for tall building “riser” cross-connects . This is the same thing, right?

You can’t be faulted for being cautious. Its different this time. The tools are better. The access is better. And the return can be measured.

3. My equipment refresh cycle doesn’t start for 24 months and I do not have capital dollars to commit. What should I do?

Scrape together enough to fund a pilot, higher a new numbers person, tell your board you need a plus up or update your resume and consider a consulting gig. Someone else will figure out how to fund it.

4. Risk, compliance and audit hasn’t approved the model.

Build one internally, get your accreditation and certification, teach them why its advantageous.

5. I can’t measure my risk profile today.

Yep. I get it. See #4. Consolidate, build a higher wall and defend deeper. You think your cyber posture is scary now? You don’t even know about the folks who have been thinking about Offensive Cyber in the Cloud for almost 5 years now….

6. It doesn’t make sense for my Tier1 applications where I will get the biggest return — what should I do?

It does but don’t start there. Grab a business partner who has a tier 2/3 app and make a deal. Try an approach like this “lets implement the new model and if you don’t like it we’ll go old school. But when it works I want you on Youtube and at the leadership meeting touting the advantages.” No one will say no.

7.Cloud doesn’t work with my existing authorize/authenticate/2 form factor/cac, etc.

It does. You are asking the wrong questions – should be considering how it can improve upon your audit trail and offer a better concept of operations with continuous monitoring.

8. Me, my boss, our authorizers and my team all have ipads, mobrile devices and I would like to make our data sets mobile enabled but we have a very well respected consultant who says it will take two years and another 24 months of retainers/studies to implement.

If I was hourly billed I would tell you the same. Check out my ipad — 60 days flat from white board idea to roll out. Securely and privately.

9. What’s the method to measure return.

Nothing clever. A bit of elbow work with your own numbers. Cloud investments are typically accretive inside of your existing hurdle rates/thresholds.

10. I believe you but after exhaustive review there is no capital or people but I still want to do this and I want to offer it as a service to my constituency 

No sweat — if you are really interested in doing it we can rent you balance sheet, gear and people. Takes about 90 days start to finish to do it the right way.

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Posture

People who write software write bugs. Anyone who has been a producer or consumer of technology knows this maxim to be true. Its how you deal with these exceptions through redundancy, fault vectors, recovery scenarios and managed customer experience that are important.  Today, there are many organizations impacted by the outage of a contemporary public cloud provider. Marketing teams around the globe are gearing up with subtle barbs, whisper talking points, and placed opinion pieces with disparaging tones. I find the approach (and the outage) a bit unfortunate because I believe it has the potential to pause the pace of innovation by organizations who leverage the cloud infrastructure to serve their ultimate end users. With any, radical paradigm shift, there are going to be bumps along the way. In my experience its how you deal with them and engender customer support that people remember.  What I do hope comes of this is a spirited debate about the merits of cloud architecture, which applications can benefit from its use and what risk profile/governance is required for continued operation.

IT solutions are not helicopters…

We all know the pace of innovation in technology. New technologies are coming out daily and making the technologies developed the day before obsolete. If you’re going to purchase IT systems or solutions, you have to do it quickly, or the solutions you’re purchasing may no longer be worth the investment by the time it’s approved, purchased and integrated.

In this environment, it would seem counterproductive to handle the acquisition of IT solutions, such as cloud services, the same way you would, say, a new military helicopter. Sadly, that’s the way that the Department of Defense has been purchasing IT solutions for the past three decades.

According to a recent Federal News Radio article, the DoD is working to diverge and differentiate the IT acquisition process from the process for acquiring weapons systems. In fact, they recently released a 19 page report that was mandated by the 2010 Defense Authorization Bill and outlines the steps that they’re going to take to streamline the acquisition process for IT.

The DoD currently funds IT projects through three distinct appropriations (research and development, procurement, and operations and maintenance), which is designed more for weapons systems rather than IT. In the report, they state that this might need to become more flexible for IT, since not all solutions need to be custom developed and some can be purchased off the shelf.

The DoD is also toying with the idea of a non-expiring revolving fund for IT. Congress would still control which projects would be paid for with the fund, but DoD officials could authorize programs and give Congress a heads-up after the fact.

Also recommended was a shift in how the Pentagon approaches its IT spending. Currently, large projects and systems are developed and acquired over a long time frame. The new mentality would have the Pentagon approve funding based on desired capabilities, which means funding could be shifted to new products or services that have proven they can provide the capabilities desired. They will also shift the focus onto short-duration, “incremental” IT projects.

The way the DoD was developing and acquiring IT solutions was broken and forcing the agency as a whole to move much slower than the private sector in adoption of new, beneficial IT solutions. With new technological advances, such as the cloud, becoming more widely embraced and adopted due to their ability to make organizations more effective and efficient, it was time for the DoD to make a change and find a way to move at the speed of innovation.

Be all that you can be…in the cloud

Lynn Schnurr, the director of Intelligence Community Information Management for the Army Intelligence Chief Information Officer, gave a presentation at the Army IT Day in Vienna, Va. earlier this month.

During her presentation, she discussed a handful of new technologies and initiatives that the Army is currently developing to help the warfighter on the battlefield and make their entire branch of the armed services operate better and more efficiently.

The Land Intelligence, Surveillance and Reconnaissance network remains a priority for the Army. They’re also working on bringing improved biometric data to the soldier on the battlefield.

The Army is even toying around with some pretty wicked headgear to make the warfighter better. According to an article in Defense Systems Magazine, a prototype technology will provide soldiers with smart sunglasses that enable them to capture images of enemy combatants and record their voices for analysis and identification matching.

Even with all of this cool, futuristic technology being developed for the warfighter, one of the largest innovations that could have the biggest impact on the Army is not on the battlefield- it’s in the cloud. Well…it IS the cloud.

In an attempt to operate more effectively and efficiently, the Army is looking to consolidate their hundreds of datacenters for intelligence analysis and storage into just three facilities (Wiesbaden, Germany; Fort Bragg, N.C.; and Hawaii). These three facilities will interact and coordinate with other intelligence community data facilities so that the Army can avoid storing data that can be accessed from other government sources.

The Army also wants to utilize their intelligence cloud efforts to reuse software. This is expected to increase operational flexibility and cut costs.

The Army’s shift to the cloud will help them become exponentially more efficient. They’ll be able to dramatically reduce the cost of excessive and unneeded datacenters while more effectively sharing resources with other intelligence agencies. They’ll also see a significant decrease in the time it takes to develop and implement new software.

What can the cloud do for your agency?

Is the new government cloud directive a red flag for IT workers?

As we’ve discussed in the past, Obama’s technology team, including Vivek Kundra, the country’s CIO, is looking for ways in which the federal government can improve its IT acquisition process and adopt technologies that can make the government operate more effectively and efficiently.

Last Thursday, Kundra announced a series of steps that the government is planning to take to streamline how the government tests and purchases new IT technologies and to help drive down the cost of IT within the federal government.

Included in the plan was a directive for agencies to look to cloud services first to handle increasing data demand. Also included was a directive to reduce the existing number of datacenters in the federal government from 2,100 by approximately 800 datacenters.

The end result of this plan will be a sharing of resources between agencies. For example, if a datacenter is being underutilized by one agency, they will be encouraged to share those resources with another agency in need. Civilian agencies will increasingly make the shift to cloud service providers. Other agencies, such as those responsible for defense and homeland security, will most likely increase their adoption of private cloud solutions that provide all of the benefits of the cloud with fewer security concerns.

The agencies that will see the largest economic gains from their switch to the cloud will be the civilian agencies. These agencies will see a large portion of their IT spends switch from hardware purchases, maintenance and operations to infrastructure as a service (IaaS).

Currently, service, maintenance and operations expenses account for over 70 percent of their budgets, while 10-15 percent goes towards growth and a small fraction goes to innovation. A switch to the cloud will invert that pyramid of expenses and significantly cut down on the downstream expenses, freeing up IT budget dollars for innovation and other more mission-critical tasks.

Unfortunately, not all IT employees at federal agencies see this as a positive thing. After all, if your job is to “keep the lights on,” the switch to a cloud environment could be considered a major assault on your position.

For these individuals, it’s an alarming wakeup call for what’s coming down the pike. Cloud services provide such value and can so drastically reduce operating expenses that the switch has become an inevitability in the federal government. Instead of looking at cloud services as threats to their jobs, federal workers should instead be looking at them as an opportunity to shift towards more mission critical work.

To help in the transition, government agencies are going to have to reeducate staff and move IT people from being maintainers of the datacenter to architects of the cloud. In an effort to help the process, EMC and other vendors in the market are collaborating on a vendor net-neutral curriculum and certification process.

Government IT professionals shouldn’t be viewing the shift to the cloud as competitive or negative. It is, in fact, providing them with an avenue in which to be more innovative and provide added value to their agency and its mission. With government pay frozen for the next two years, it also gives them an opportunity to educate themselves, become more valuable and go up a pay grade. The benefits of the cloud and its ability to help agencies operate better and more cost effectively are making cloud computing the future of government IT. Now’s the time to step up and stop just “keeping the lights on.”

American innovation takes another one on the chin

America was always the nation that built things. We were the leaders in innovation and research. We made the first automobile on a mass production assembly line. We invented the telephone. We sent the first man to the moon. Heck, we invented the pop-up toaster (seriously…look it up).

Unfortunately, our country has been losing its edge in the world of research and development (R&D). As science, technology, engineering and math (STEM) education has fallen behind and other global industrial powers have emerged, we’ve started to lose our reputation as an innovator.

Last December, something happened that could finally stick a fork in America as the world’s center of science, innovation and R&D. Surprisingly, it’s flown under the radar and many Americans aren’t really aware of it. The R&D tax credits, which have powered innovation and research in our country for nearly three decades, were allowed to expire and have yet to be extended by Congress.

Now, we’re all aware that the government is currently in a bit of a financial bind and facing a $1.3 trillion deficit. Regardless, the government is practically ensuring that America remains behind in innovation and invention by not sustaining the R&D tax credits.

The R&D tax credits allows medium-sized and large companies to spend multiple year’s worth of money all at once on new technologies that they’re looking to bring to market and then deduct that figure from applicable corporate taxes. This is important because the largest part of the innovation process involves funding and paying smart people to conduct R&D.

If there is no guidance and consistency on the tax credits, it could seriously damage a company or sector’s ability to innovate.

What’s worse, if there’s no net tax credit, companies will have to reconsider how and where they do their R&D. This could lead them to move R&D and innovation to other countries or jurisdictions that have more favorable taxes and treatment for R&D spending.

This means that R&D and innovation dollars go to nations like China or India that are competing with us in the global economy. But there’s another problem with these product development lifecycles going through nations like China.

Our government takes away the R&D tax credits and then pays a company to innovate or invent something. That company is conducting its R&D in China, India or somewhere else. However, our government has already said that they don’t trust product lifecycles that run through these countries.

To have exquisite supply chains, R&D needs to be conducted in America. The R&D tax credits, or something similar, need to be kept in place for American companies to remain innovative and for the government’s supply chain excellence to remain in tact.

Some of the most innovative companies in America spend 10-15% of their revenue on R&D. That’s an activity that we want to continue. If we’re going to continue to create the cloud technologies, IT solutions and other advances that will power our government and economy into the future, Congress needs to extend these tax credits and get America innovating again!

Why Amazon pulled the cloud out from under WikiLeaks

Unless you’ve been in hiding in a cave somewhere, you’ve probably heard about WikiLeaks and its founder, Julian Assange.

The WikiLeaks Website is an international organization that publishes submissions of classified, leaked and otherwise unavailable documents from anonymous news sources. Julian Assange is the site’s founder and editor in chief.

WikiLeaks has run afoul of multiple governments in the past few years in large part to the leaked documents and classified information that it features as content.

In March 2003, they released a copy of the standard operating procedures for the Guantanamo Bay detention camp. During the 2008 presidential election, WikiLeaks reported the contents of a Yahoo email account belonging to Sarah Palin, a vice presidential nominee. In October 2010, WikiLeaks released hundreds of thousands of documents relating to the Iraq War.

Most recently, WikiLeaks released diplomatic cables at the end of November. The leaked documents contained inflammatory and sensitive information about diplomatic proceedings, somewhat embarrassing information about world leaders and other information that experts felt could strain diplomatic relations between the United States and many other countries.

Needless to say, WikiLeaks hasn’t made many government friends, inside the U.S. or elsewhere.

Then, on December 2, something interesting happened. Amazon.com, the company providing cloud infrastructure services for WikiLeaks, severed its ties with the organization.

It’s not uncommon for bad actors to be run off by cloud providers in the past. Service providers have taken action to end their relationships with customers caught using their services to conduct criminal activities. The terms of services that govern most of the cloud providers offer an escape clause for the operator if the service is being used for anything illegal or if it has the potential to tarnish the service provider’s brand.

Now, I’m not a proponent of publicizing information deemed classified by the U.S. Government, especially when that information can be viewed as a threat to the national security. However, this seems to walk the line of censorship.

The actual legality of leaking these documents is tricky. I am by no means an expert on the legal aspects, but these documents were leaked by people and on servers located in countries where significant protection is in place for both media outlets and their sources. That means that Amazon could have effectively booted an organization off of their cloud infrastructure that hadn’t really committed a criminal activity.

If WikiLeaks did something to violate Amazon’s terms of service, they were well within their rights to terminate their relationship. But as a publishing outlet, it’s questionable that WikiLeaks was doing anything wrong. They simply created a platform designed to share and express information. Amazon probably found a loophole on “brand tarnishing” and used it to justify pulling the plug.

But why did they really do it? I think it was a desire to curry favor with the government that led them to pull the plug on WikiLeaks.

Just one day before booting WikiLeaks, Amazon made a major talent acquisition, bringing the person onboard who formerly led Microsoft’s federal business to help sell cloud and other services to the government. Amazon is competing for a handful of government contracts and is clearly looking to ramp up their business with the federal government.

Now if you’re looking to sell cloud services to the federal government, it’s probably not a good idea to be the cloud service provider for the online news organization that has repeatedly and recently angered this country’s leaders by releasing sensitive and classified information.

At the end of the day, what WikiLeaks has done for the sake of transparency in government was ill-advised and potentially harmful for America and homeland security. However, Amazon pulling the plug on WikiLeaks appears to be not an act of civil duty, but a financially-motivated and self-interested act of censorship.

Where we’re falling down: the administration’s plans to fix government IT

In my last post, I discussed a speech given by Jeffrey Zients, the deputy director of the Office of Management and Budget (OMB), to the Northern Virginia Technology Council (NVTC).

In the speech, Mr. Zients discussed the new programs being endorsed by the Obama Administration that would require agencies looking for new IT development to look at cloud solutions first before pursuing the in-house creation of new datacenters. In my post, I discussed how this could go a long way towards cutting down government spending in the face of a deepening federal budget deficit.

However, this wasn’t the only good point that Mr. Zients made about the state of IT in the federal government. I wanted to take some time to discuss the other points that he made, and places that he felt the government is falling down in the adoption, acquisition and implementation of new technologies.

One of the areas that the Obama Administration sees significant room for improvement is in the IT acquisition system. Currently, agencies are required to submit requests for IT projects two years in advance. After submitting requests and receiving budget approval, the process of acquiring and implementing the technologies can take over a year to accomplish.

That’s three years to get through budgeting and procurement. Everyone with an IT background realizes that it might as well be a lifetime. Any technology that the government was looking to acquire would most likely be archaic by the time the acquisition process was complete.

In an effort to cut down that ridiculously long three year timeframe, the Obama Administration, OMB and other organizations are looking to streamline the appropriations and procurement processes. They’ve already worked to create Apps.gov, the portal where IT buyers at government agencies can shop for approved cloud-based technologies, and are working to put other pilot programs in place that will help to cut through the bureaucracy surrounding IT acquisitions.

Other areas where Mr. Zients and the Obama Administration see room for improvement are the way federal IT buyers interact with industry and the way the government evaluates and monitors IT projects.

Currently, IT managers in the federal government are often hesitant to interact with experts from the private sector and technology vendors because they are unsure about the propriety of such interactions. In many cases, IT managers will often take a “better safe than sorry” approach and avoid these people all together.

To help combat this issue, the Administration is working to put together a “myth busting” campaign to ensure that federal IT managers know what kind of interaction is allowed, and to better align the federal government with private industry. By better educating IT managers, the Administration hopes to foster better collaboration between federal agencies and private industry.

In the area of oversight, the Administration is looking to streamline government accountability, first by overhauling the agency review board policy. Currently, the review boards meet once a month for two hours to review the entire agency IT portfolio, which isn’t nearly adequate. Instead, the Administration wants them to focus more on using data and analytics tools to review projects.

In fact, the Administration’s tech team has already set up an online dashboard to track the spending and progress of IT deployments across the government. These dashboards are designed to generate more detailed reporting data to help government officials identify underperforming projects and decide if they should be rehabilitated or terminated.

I agree completely with Jeffrey Zients and the Administration’s tech team. The budgeting, provisioning and acquisition of new IT technologies is crawling and keeping the government for implementing the tools that will help them operate more effectively and efficiently. These reforms will increase collaboration with the private sector, streamline the acquisition process and better manage government IT projects. In doing so, the Administration will make headway in fixing what is currently a lumbering system that is hurting our country.

Get into the GEOINT groove

The GEOINT 2010 Symposium, the preeminent geospatial intelligence event for the defense, intelligence and homeland security communities, is coming up next week at the Ernest N Morial Convention Center‎ in New Orleans, La.

With such an important event on the horizon, I sat down this week with the editor-in-chief of the blog got geoint?, Matt Langan. Matt and I recorded a podcast interview about the role of cloud computing in the geospatial intelligence field.

If you’d like to take a listen, click HERE.

If you’re planning on attending this year’s GEOINT 2010 Symposium, EMC and I will be there at booth #821. Feel free to drop by to say, “hi,” or to talk about the cloud.

We’ll also be hosting a reception with Cisco and VMWare in the Legend room of the Musee Conti, a wax museum located in the Old French Quarter. The reception runs from 6-9pm on November 2, 2010. Click HERE if you’d like to register to come!

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