Strategy guide to application modernization in government
6
STRATEGY GUIDE TO APPLICATION MODERNIZATION IN GOVERNMENT HP Tech Dossier Many state and local governments, however, are saddled with legacy systems and applications, some dating as far back as the 1960s. These environments have become overly complex and expensive to maintain. More important, they preclude agencies from moving forward to take advantage of the latest technologies, such as cloud computing, that enable services that are more efficient and cost-effective. Application modernization is an important step to transform an organization with out- dated technology to one that benefits from a modernized platform. This technology dossier explains the challenges and benefits of application transformation and suggests how government IT departments might begin the process. Citizens expect and deserve quality service from their government. But today’s world, with its mobile devices and ubiquitous Internet access, has raised the bar. We live in a society where people want and expect information instantly, whether they are checking the weather and sports scores on their phones or accessing the local library from their tablet device. Similarly, they want government service that is faster, more convenient and more efficient than ever. SPONSORED BY HP AND INTEL
Strategy guide to application modernization in government
strategy guide to application modernization in government
Citation preview
1. ssierHP Tech Do STRATEGY GUIDE TO APPLICATION MODERNIZATION
IN GOVERNMENT Citizens expect and deserve quality service from
their government. But todays world, with its mobile devices and
ubiquitous Internet access, has raised the bar. We live in a
society where people want and expect information instantly, whether
they are checking the weather and sports scores on their phones or
accessing the local library from their tablet device. Similarly,
they want government service that is faster, more convenient and
more efficient than ever. Many state and local governments,
however, are saddled with legacy systems and SPONSORED BY HP AND
INTEL applications, some dating as far back as the 1960s. These
environments have become overly complex and expensive to maintain.
More important, they preclude agencies from moving forward to take
advantage of the latest technologies, such as cloud computing, that
enable services that are more efficient and cost-effective.
Application modernization is an important step to transform an
organization with out- dated technology to one that benefits from a
modernized platform. This technology dossier explains the
challenges and benefits of application transformation and suggests
how government IT departments might begin the process.
2. 2 // HP Tech Dossier: BUSINESS RISK MITIGATION FOR
HEALTHCARE /// OLD SYSTEMS HOLD AGENCIES BACK Rolling out
applications Do you still rely on mainframe systems that are
quicker and shortening the more than 30 years old? Many governments
still do. Although modified over the years to meet new needs, time
to deploy new servers these systems rely on old programming
languages, are several advantages of such as COBOL, that are
inflexible and in which expertise is disappearing as mainframe
programmers virtualizing on HP servers. retire. Have you added
systems atop the old, creating Paul Roybal a convoluted IT
environment that is expensive, error- Chief Information Officer
prone and time-consuming to maintain. In general, up Bernalillo
County, New Mexico to 80 percent of an IT budget is used to keep
currently Read the full story implemented systems up and running.
When older systems and applications are involved, that figure goes
even higher. and Affordable Care Act mandates the creation of
Government agencies are handicapped when it comes health insurance
exchanges, requiring many states to to delivering better services
and meeting federal upgrade their systems so they can handle
electronic mandates. For example, the 2010 Patient Protection
health records and integrate with other state and regional
exchanges as well as federal databases. At the same time, state and
local governments are HP APPLICATION TRANSFORMATION under
tremendous budget pressure. Although the EXPERIENCE WORKSHOP
federal government offers some grants for certain projects, most
modernization relies on current shrinking internal IT budgets.
Avoid being penny-wise DRAWING ON EXTENSIVE EXPERIENCE in
application transforma- but pound foolish when it comes to
modernization. tion, HP offers the Application Transformation
Experience to help customers determine how modernization might help
them. This Your legacy systems may be weighed down by heavy
practical workshop helps customers: maintenance costs and
inflexible architecture. They consume increasing amounts of IT
resources while k Develop a clear understanding of their
transformation require- ments, challenges and ongoing initiatives
limiting government capabilities. And its important to remember
that modernization need not be one large k Envision what their own
modernization project might look like by investment. In fact, by
taking even small steps toward walking them through a large
application transformation program and examining critical success
factors and best practices modernization, IT organizations can
often net substan- tial savings. According to HP the typical return
on , k Determine what value could be achieved by transforming
investment for modernization projects can range from applications
20 percent to 60 percent. Those savings can then be k Understand
how to develop an application transformation used for further
modernization. A crucial first step is to road map conduct an
accurate assessment of your systems and The workshop details the
stages of a successful transformation application portfolio. The
key is to identify projects that project, from identifying reasons
to modernize to devising a plan require a low up-front investment
and yet promise the for doing so, including possible funding
options. most-significant advantages. (See story on HP Applica-
tion Transformation Experience on the left.)
3. 3 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION
MODERNIZATION IN GOVERNMENT HPs server blade technology SMALL TOWN,
BIG SERVICES as part of our new virtualized IN MODERNIZATION AS IN
LIFE, timing can be everything. The City server environment has of
Niles, Ohio, modernized its IT infrastructure in 2007, just before
the allowed us to reach availabil- financial meltdown of 2008.
Today, even as many local governments struggle under unprecedented
budget cutbacks, the City has found ways ity thresholds that we
couldnt to increase revenue, improve services and support a growing
business communitylargely because of its new IT infrastructure.
before. Tim Garza The city of 20,000 has essentially one full-time
IT person: IT Director Chief Information Officer Tom Telego. Before
the modernization, more than a dozen physical State of California
Department of Water Resources servers scattered across the city and
running individual applications meant that Telego often had to rush
from one site to another to Read the full story implement
short-term fixes. The City deployed HP Converged Infrastructure
technologies, including HP P4000 G2 and P4500 G2 SANs as well as
two HP ProLiant DL360 Servers that now host 45 virtual machines,
enabling the local govern- /// THE BENEFITS OF MODERNIZATION ment
to take advantage of cloud computing. Modernization brings many
advantages. They include both short- and long-term savings as well
as immediate HP Converged Infrastructure technologies have given
us, a small city, tactical and long-term strategic benefits: the
ability to respond to our communitys needs and the economic
environment at a speed that would not have been possible with our k
COST: Modernization eliminates outdated systems piecemeal legacy
infrastructure, says Telego. and builds a standardized platform
that requires less time and money to maintain. Systems and O B J E
C T I V E: applications do not require staff with specialized,
Create a 24 x 7 secure, cost-effective and scalable infrastructure
to hard-to-find and expensive skills. Because these support
important city functions and services platforms use smaller
hardware and modern techniques such as virtualization, they require
less I S S U E S: expenditure for physical machines, the space to k
Downtime-prone, decentralized legacy IT infrastructure house them
and the energyboth human and k Minimal IT budget electricalto run
them. k One-person IT staff k FLEXIBILITY AND AGILITY: Unlike old
systems that can be hard to reprogram, modern platforms I T I M P R
O V E M E N T S: are based on standard hardware, applications and k
70 percent reduction in system maintenance time, freeing staff for
programming languages. Staff can change and add more-valuable tasks
applications quickly, adjusting to shifting regulations k 99.7
percent reduction in unplanned system downtime, from 14 days and
adapting to the needs of citizens. The systems a year to less than
an hour also enable easy integration of new technologies, k 15
minutes to roll out a new virtual machine, compared to two or
enabling new services to be deployed faster. And three days
previously for a physical server because they require less
maintenance, modern k Ability to support 50 percent annual data
growth systems free up IT staff to add more value to the k 60
percent savings in storage space through thin provisioning
organization through activities such as devising new services and
developing new applications. B U S I N E S S B E N E F I T S: k
ALIGNMENT OF IT WITH INTERNAL k Threefold increase in IT services
offered to state employees and PROCESSES: In too many instances,
rigid the community legacy systems have dictated agency processes,
k As much as $8,000 saved in each new software rollout or upgrade
preventing improvements that would lower costs k 40 percent
increase in police patrol time due to streamlined and improve
efficiency. A system may have been online reporting programmed to
process information in a particular way, based on government
regulations, for example. k Projected 50 percent reduction in time
required to remotely monitor and maintain 911 emergency system But
when regulations change, it is difficult or impos- sible to
reconfigure the system, so an agency may k Maximum IT availability
to operate city services be forced to stick with an old business
process that k Projected increased revenue generation due to
implementation includes steps that would not be necessary in a of a
smart power grid to optimize power usage modern system. With modern
systems, IT adjusts
4. 4 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION
MODERNIZATION IN GOVERNMENT to support business processes rather
forcing the CRITICAL ISSUES IN STATE AND business processes to
adapt to it. LOCAL GOVERNMENT k Improved security: Many legacy
systems were designed before the explosion of the Internet and IN
AN ERA OF SHRINKING BUDGETS, state and local governments are thus
did not take into account the possibility of the hard-pressed to
find the funds to modernize applications and systems. Web and
ubiquitous connectivity. Modern systems Organizations like yours
are looking to modernization to improve include security features
specifically designed to efficiency, productivity, and security as
well as reduce costs. The protect against security threats from the
Internet. best approach may be to start with small, incremental
steps. Among the critical issues for government are: /// WHERE TO
BEGIN k RISING CITIZEN EXPECTATIONS: Society is more mobile and
Modernization can seem overwhelming, but like any connected and
citizens are increasingly expecting faster, more other journey, it
begins with the assessment of your convenient and more accessible
services. current infrastructure. An experienced partner can k
SHARED SERVICES: As various state agencies as well as local guide
government IT managers through this assess- governments consolidate
infrastructure and start to share services, ment phase, helping
identify which modernization systems and applications will be key
to achieving expected cost steps will net the highest ROI and lay
the groundwork reductions. for an overall modernization plan. k
INSECURE LEGACY SYSTEMS: Mainframe systems were designed
pre-Internet, with no network security, so they can pose data
security HP has more than 45 years of experience in applica- risks.
tion transformation, providing comprehensive modern- k ORPHANED
SYSTEMS: As Baby Boomer programmers retire, ization solutions and
strategies for clients across a governments find it increasingly
difficult and expensive to find staff range of industries. HPs
innovative approach can to run old legacy systems and applications.
improve business performance by up to 25 percent, k STRATEGIC
MODERNIZATION: Thorough evaluation of current reduce application
and infrastructure costs by 30 to 60 apps and systems is required
in order to identify the stages and steps percent and redirect IT
spending to growth initiatives. of modernization. Together, HP and
Intel redefine energy efficiency, data center and cloud platform
innovation. With an unmatched depth of resources, partnership and
lead- ership, HP and Intel enable their customers to manage the
volatile demand for energy, data and applications. For more
information on HP offerings in application transformation,
Application Transformation Solutions. n Four Ways to a
Self-Sufficient Infrastructure: HP ProLiant Gen8 Learn more about
the new HP ProLiant Gen8explore the architecture, see the
portfolio, understand the value and join the conversation. Intel
and the Intel logo are registered trademarks of Intel Corporation
or its subsidiaries in the United States and other countries.Watch
Paolo de Santis, Director of Applications and Security, MIUR,
talkabout their technology infrastructure modernization rollout. HP
is a registered trademark of Hewlett-Packard Company.
5. 5 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION
MODERNIZATION IN GOVERNMENTSuggested ReadingThese additional
resources include business white papersand previously published
articles from IDG Enterprise. //////////// //////////// Study: IT
Shops Running Way Pfizers Future Depends on Too Many Applications
IT Transformation Nearly two-thirds of enterprises are supporting
more With its business model ailing, this pharmaceutical gi- or far
more applications than they actually need to ant tries a new IT
formula, including a loyalty discount run their operations,
according to a survey released card, mobile applications aimed at
consumers, and a Monday by Hewlett-Packard and Capgemini.
cloud-based tablet CRM system for physicians By Chris Kanaracus By
Kim S. Nash CIO.com CIO.com Nearly two-thirds of enterprises are
supporting more Chip-munching, sedentary people have made Pfizer a
or far more applications than they actually need to bundle of
money. Lipitor, a drug that lowers cholester- run their operations,
according to a survey released ol, ranks as Pfizers top-selling
pill for 12 years running. Monday by Hewlett-Packard (HPQ) and
Capgemini. A blockbuster among blockbusters, Lipitor brought in
$10.7 billion, or 16 percent, of the companys $67.8 Just 4 percent
of the roughly 100 IT decision-makers billion in revenues last
year. polled consider every system they run to be busi-
ness-critical, according to the study. This month, though, Pfizer
loses a crucial patent protection on Lipitor and, with it, the
exclusive right The simple cost of retiring applications was the
leading to make and sell the drug. Competitors are ready to reason
cited for keeping obsolete software in produc- swoop in with
generic versions and swoop out with tion, since most IT budgets are
aligned around areas many billions of dollars. like maintaining
existing applications and new projects, according to the study.
Read the full article Smaller companies surveyed didnt have the
same problems with excessive software. Almost 75 percent
//////////// of small businesses said they have just the right
number of applications, and another 23 percent said Transforming IT
to Show Cost they dont have enough. of Services: 5 Best Practices
There was a wide disparity in application portfolio IT has
struggled for years to calculate and prove what sizes as well.
Eighty-four percent of smaller companies its own services actually
cost to deliver to the busi- said they support fewer than 50
applications. Mean- ness. Consider these five strategies, as shared
by CIOs whove already battle-tested them, says Sunny Gupta, while,
enterprises reported they handle up to 10,000 CEO of Apptio.
applications. By Sunny Gupta, CEO Apptio Bloated and redundant IT
landscapes result from CIO.com factors like mergers and
acquisitions, coupled with a lack of formal processes for retiring
software, the Recently, we brought together 60 CIOs and IT leaders
study said. from the Fortune 1000 for our bi-annual CIO Technol-
ogy Business Management Council meeting. The Its respondents were
from companies of a variety purpose of this event was to provide
participants with of sizes and industries, with 63 percent in
Europe and an opportunity to learn from their peers about how to 37
percent in the U.S. transform their IT organization into a services
oriented HP and Capgemini provide a range of application
organization and run IT like a business. modernization products and
services. Todays IT leaders need real-time intelligence to make
Chris Kanaracus covers enterprise software and fact-based
decisions. Think of IT in the context of a general technology
breaking news for The IDG classic supply chain. News Service.
Chriss e-mail address is Read the full article
[email protected]
6. 6 /// HP Tech Dossier: STRATEGY GUIDE TO APPLICATION
MODERNIZATION IN GOVERNMENTSuggested Reading ////////////
//////////// The Secret to Successful U.S. CIO Unveils Mobile
Strategy Software Innovation Projects for Federal Government
Building your own software seems nuts these days. Obama
administration tech chief Steven VanRoekel But these CIOs from
NYSE, KKR and Alcoa are doing it looks to narrow mobile gap between
feds and private anyway. Why? To gain competitive advantage.
sector, also cites consumerization of IT and the migra- tion to the
cloud as key areas. By Kim S. Nash CIO.com By Kenneth Corbin
CIO.com Enterprise software has long been available, neatly
packaged, for all core corporate functions. And now, The Obama
administration at the Consumer Electron- in the age of cloud
computing, it can be turned on and ics Show in Las Vegas unveiled
an ambitious new off like water from a spigot. Outsourcers run our
data initiative to remake the way the federal government centers,
technology is for sale at discount warehouse approaches mobile
technology, soliciting ideas from clubs. And still, some CIOs
choose to build major soft- the public for how federal agencies can
tap mobile ware from scratch. Why? devices and apps to operate more
efficiently and bet- ter serve citizens. Creating competitive
advantage is the goal of many IT innovation projects, and in some
cases you cant U.S. CIO Steven VanRoekel announced the program at
achieve that without building your own systems. The the annual
Consumer Electronics Show in Las Vegas, New York Stock Exchange
(NYSE) Euronext and its a symbolic setting that amplifies the theme
of the fierce rival Nasdaq OMX, for example, run custom-built
federal government taking its cues on IT from the most trading
systems that they continually tweak for stabil- innovative quarters
of the private sector. ity and speed. Read the full article Read
the full article //////////// //////////// State Dept. Official:
Governments TechAmerica Foundation: Govern- Cant Fight Social Media
ments Need to Get Into the Cloud Ross calls for governments to
support an open Internet, but not for terrorism organizations The
cloud is being pitched as the best way to do more with less, but
government agencies are slow to mod- By Grant Gross ernize,
California official stresses CIO.com By Paul Krill Government
officials worldwide should stop fighting CIO.com against the use of
social media and embrace con- Cloud computing presents
opportunities for govern- versations with their citizens, except in
the case of ments to modernize and improve cost efficiency,
terrorist groups, a U.S. Department of State official public
officials stressed Thursday at the introduction said Tuesday. of a
report advising state and local governments on It will be difficult
for government officials to control cloud adoption. But one
California official cited govern- social media use, Alec Ross,
senior advisor for innova- ment tendencies making the modernization
process a tion in the Office of Secretary of State Hillary Clinton,
slow one. said during an online chat with journalists. A journalist
The TechAmerica Foundations State and Local from Guyana asked Ross
how governments should Government Cloud Commission released its
report en- deal with or control the negative consequences of titled
The Cloud Imperative , offering best practices social media. for
cloud computing for state and local governments. Read the full
article Read the full article