© 2014 IBM Corporation Cloud Government Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

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  • 2014 IBM Corporation Cloud Government Point of View IBM Institute for Business Value Partners Name, Partners Title DD Month YYYY
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  • 2014 IBM Corporation IBM Institute for Business Value 2 Executive summary Cloud computing provides significant opportunity for Governments to address increasing challenges in IT governance Governments are leveraging clouds capabilities to create diverse stakeholder ecosystems and enable value realization by all Governments around the world are embracing cloud and realizing significant benefits through innovative and enhanced citizen services, improved internal efficiencies and reduced costs Security, privacy and compliance concerns are being managed through a set of processes and controls thus making cloud computing a secure, compliant and cost effective IT services delivery model Governments must adopt a structured approach to implementing cloud services to minimize disruptions to ongoing citizen services and internal operations
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  • 2014 IBM Corporation IBM Institute for Business Value 3 3 IBM can help 2 Cloud is enabling changes in governmental model 1 Cloud will transform the function of governments
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  • 2014 IBM Corporation IBM Institute for Business Value 4 Transformative technologies are disrupting industries Source: Joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders Mobile revolution Connectivity, access and participation are growing rapidly Social media explosion Quickly becoming the primary communication & collaboration format Hyper digitization Digital content is produced and accessed more quickly than ever before The power of analytics Real time analysis, predictive analytics and micro- segmentation emerging Transformational cloud Clouds attributes make it a powerful delivery model delivering new business models, cost benefits, flexibility and large on-demand capacity Gmail, Facebook, Linkedin are pioneer examples of cloud computing with advertisement based revenue and clouds low cost delivery model sustaining free services Ecosystem of connected health and wellness apps that delivers a consolidated view of users health. Strong & growing ecosystem with APIs and Apps that cover all aspects of health care 1 The Xerox Mobile Print platform uses cloud to convert and process print requests. This removes complexity from end-users, reduces costs & management of diverse devices and print configurations
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  • 2014 IBM Corporation IBM Institute for Business Value 5 Governments are being hit by multiple disruptive global shifts urbanization, aging populations and structure of the global economy Source: [1] Swiss Re. 2014. Natural catastrophes and man-made disasters in 2013: large losses from floods and hail; Haiyan hits the Philippines. Sigma Study, No 1/2014.; [2] http://www.imf.org/external/Pubs/ft/weo/2014/01/pdf/text.pdf Number of Catastrophic Events, 1970 2013 1 2014 GDP Growth decline 2 Unstable economic conditions High competition for residents and businesses Change in citizen demands Increase of dependency ratioIncrease in catastrophic events
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  • 2014 IBM Corporation IBM Institute for Business Value 6 Governments are struggling to maintain economic vitality with fiscal pressures, changing expectations and the need for resiliency Source: [1] http://www.usgovernmentrevenue.com/federal_budget_estimate_vs_actual_2013_XXbs1n_G0; [2] http://www.local.gov.uk/c/document_library/get_file?uuid=00468d7b-0630- 4917-bebd-ed1336f102ad&groupId=10171; [3] http://www.telegraph.co.uk/health/nhs/10395138/Foreign-patients-cost-NHS-2bn-a-year.html; [4] http://www.swissre.com/media/news_releases/nr_20140326_sigma_insured_losses_in_2013.html decrease in the UK available funds for social services forecasted by 2020 2 20% of the overall global workforce was considered mobile at the end of 2013 3 35% projected US Federal Budget deficit in 2014 1 $ 973 bil of economic loss globally due to disasters in 2013 4 $ 140 bil
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  • 2014 IBM Corporation IBM Institute for Business Value 7 As they advance along their transformational journey, government leaders focus on four key imperatives Sources: http://www-935.ibm.com/industries/government/ Improve Government Health and Social Programs Support the publics health and welfare with personalized services Protect the environment and improve resilience Improve performance and resilience of critical infrastructure and ensure the sustainability of vital resources Strengthen National Security & Public Safety Optimize intelligence and national defense support functions, protect borders and create safer communities Grow Sustainable Economies Improve fiscal management and revenue collection Cloud technology provides the means to meet economic challenges to drive towards new growth
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  • 2014 IBM Corporation IBM Institute for Business Value 8 Cloud computing accelerates the drivers of economic vitality for governments Talent and Business Stand as the two primary pillars of economic development Developed through attraction, creation, use, growth, and retention Enhanced and facilitated by the innovation and adoption of technology Long-term sustainable economic development is shaped by the value created by both people and businesses
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  • 2014 IBM Corporation IBM Institute for Business Value 9 Cloud is a competitive asset that expands economic potential, promoting agility, security, efficiency and cost control Source: NIST, IBM IBV Power of cloud study Clouds essential characteristics Resource Pooling Broad Network Access Rapid Elasticity On-demand self service Measured service Cloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources Speed, agility, and scalability Cloud empowers 6 benefits for governments Security rich and highly available Improved Efficiency Cost optimized Masked complexity Ecosystem connectivity
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  • 2014 IBM Corporation IBM Institute for Business Value 10 Cloud offers governments three main services to leverage in their transformations Software as a service (SaaS) Infrastructure as a service (IaaS) What it is: Cloud-based applications run on computers in the cloud that are owned/operated by others and connect to users via Internet/web browser Benefits: Eliminates need to purchase, install, update, and maintain software Ability to dynamically scale to usage needs Faster to implement and more flexible Includes benefits from PaaS and Iaas as well Platform as a service (PaaS) What it is: Cloud-based environment with everything required to support the complete lifecycle of building and delivering web-based applications Benefits: Eliminates the cost and complexity of buying and managing the underlying hardware, software, provisioning and hosting What it is: Provides organizations with computing resources including servers, networking, storage and data center space Benefits: Eliminates the cost of investing in hardware, its maintenance and upgrades Enables an on demand, pay- as-you-go model
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  • 2014 IBM Corporation IBM Institute for Business Value 11 Cloud redefines the possibilities for governments Source:[1} http:// http://public.dhe.ibm.com/common/ssi/ecm/en/zsc03177wwen/ZSC03177WWEN.PDF [2] http://www.ibm.com/cloud-computing/files/Government_Cloud_Infographic.pdf [3] https://w3-03.sso.ibm.com/sales/support/ShowDoc.wss?docid=0CRDD-8GLEMB&appname=w3skm#SolutionSynopsis Cloud provides opportunities for governments to transform themselves Cloud improves efficiencies for citizen-centric services Cloud allows governments to control costs Spanish province reduces costs and frees resources through IBM Cloud implementation. Cost savings and assets were able to be invested in other areas to benefit citizens 2 German Pension Fund Baden-Wrttemberg gained faster access to its pension records by 99% with no increase in costs 1 An agency in India uses IBM Cloud and Spoken Web technology to better reach rural areas and match citizens with employers and training to drive job growth 3
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  • 2014 IBM Corporation IBM Institute for Business Value 12 Cloud can drive significant transformation to create value and promote sustainability EFFICIENT ORGANIZATION Simple and faster processes drive internal efficiency Cost savings through the consolidation of back office operations IT capacity can be readily aligned to roadmap of future NEW REVENUE STREAM Agencies can provide services to other government entities or local businesses Regional clouds can reduce need for standalone systems Value-added services can be introduced ECOSYSTEM ENABLEMENT Third-party services can be extended into government ecosystem and consume API Open collaboration and sharing can be expanded Innovation can be introduced across systemically
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  • 2014 IBM Corporation IBM Institute for Business Value 13 A Government ecosystem allows organizations or individuals to consume value created by others or deliver value to others An ecosystem enables interaction with numerous varied entities through Information sharing Application Programming Interfaces (API) exposing functionality from back-end systems Government agencies can collaborate around a single integrated view of citizens to deliver social programs or physical assets to more efficiently manage transit systems Source: [1] ProgrammableWeb website, accessed June 2014; http://www.programmableweb.com/apis/directory In the Asia-Pacific region, one national postal service created a citizen identity au