Managing IT in a Cloudy World
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1 10:30 12:10 May 7, 2018 Room 240 Complex 112 th Annual Conference May 6-9, 2018 St. Louis, Missouri Moderator/Speakers: Allison E. Bradsher (Moderator) Chief Financial Officer, City of Raleigh, NC Phil Bertolini (Speaker) CIO/Deputy County Executive, Oakland County, MI Samantha Sturgis (Speaker) Partner, Perkins Coie LLP Managing IT in a Cloudy World #GFOA2018
2 Hip to be Square Managing IT in a Cloudy World Presented by, Phil Bertolini, Deputy County Executive & CIO bertolinip@oakgov.com 2018
3 The Cloud! Procuring the Cloud What makes sense Having the right people RFPs Contracting the Cloud Legal wrangling Terms and conditions Exit strategies Benefitting from the Cloud Cost savings Speed of change Consuming what you need Discussing the Cloud Numerous issues Educating stakeholders Lets talk!
4 Cloud Contracting
5 Creating a Cloud Strategy Key Considerations: Data Attributes where you would look at sensitivity, privacy, volume and volatility Disaster Recovery and Business Continuity including your return to service objectives Costs including software licensing, connection fees and usage fees Application Readiness Security and Compliance Features such as CJIS, HIPAA, PCI, FIPS and others
6 Cloud Journey Timeline Strategy Execution and Implementation Sept 2016: Cloud Strategy Approved Jan 2017: Cloud Execution presented to Steering Aug 2017: Capacity Constraint creates more cloud migrations Sep Dec 2017: Security consultants engaged to validate and enhance design 9/16 Nov 2016: Cloud Strategy Rolled Out Feb 2017: Alternate Approach Taken; Cloud Design Project Launched Aug 2017: Initial Cloud Design presented Toda y 6
7 Design Principles Design without reliance on Oakland County on premise infrastructure and services Use core AWS services as much as possible and fill in any gaps by SaaS services. Design with the most current technologies and solutions Automation of infrastructure builds Least Privilege access
8 Technical Debt Opportunities Shared Instances Network Connectivity Citrix IAM Needed Redefined and removal of shared instances for stand alone options in the cloud Impacts Simplifies cloud migrations Creates flexibility for application changes, updates and maintenance Needed VPN Optimization Direct Connect Pipe Create a read only copy of our AD in AWS Impacts CAMS Court Videos Clarity WatchGuard Jail Video Any systems requiring real time connection to on premise systems Needed An upgraded environment on premise or in the cloud Or migrate to an AWS solution and remove Citrix Impacts CAMS BSA Debt Manager Investment Manager Any OS upgrades for applications using Citrix Needed A way to implement Okta for the Cloud Impacts CAMS BSA Laserfiche elearning Clarity 8
9 Application Migration Options
10 Application Decision Tree
11 The Cloud Take Aways! Procuring cloud computing can have it s challenges Challenges come from inside and outside Educating stakeholders early in the process is a necessity Cloud contracts must be carefully crafted Legal professionals must be trained on the cloud Exit strategies must be well defined
12 The Cloud Take Aways! There are numerous benefits to cloud computing Business cases and ROI should accompany a cloud request Consuming can be a cost savings over owning The cloud is secure! This stuff can be hard so persevere!
13 Thank You for Attending Phil Bertolini Oakland County, Michigan Deputy County Executive/CIO
14 Managing IT in a Cloudy World May 7, 2018 Samantha Sturgis, Partner (303) Perkins Coie LLP
15 Agenda IT/Cloud Overview Selected Contract Issues 15 Perkins Coie LLP PerkinsCoie.com
16 Hardware 16 Perkins Coie LLP PerkinsCoie.com
17 Software 17 Perkins Coie LLP PerkinsCoie.com
18 What is Cloud Computing? Although each vendor has different definitions, in general, typically the resources used to provide the cloud services: are pooled can be rapidly adjusted are location independent are widely accessible In many cloud service arrangements, the customer pays for the resources that are used 18 Perkins Coie LLP PerkinsCoie.com
19 Some Ways to Categorize Cloud Services Single-Tenant vs. Shared Multi-Tenant CaaS (including DaaS) vs. SaaS vs. PaaS vs. IaaS Public vs. Private vs. Hybrid Note: Different categorization schemes may overlap (e.g., Shared Multi-Tenant vs. Public) 19 Perkins Coie LLP PerkinsCoie.com
20 Single vs. Shared Multi-Tenant Single-Tenant Software/Service is administered on a customer by customer basis (e.g., patches could be applied as required by each customer) Model is costly and lacks scalability Shared Multi-Tenant Software/Service uses a single integrated code base that is delivered to multiple customers (e.g., each customer gets the same thing) 20 Perkins Coie LLP PerkinsCoie.com
21 Different Types of Cloud Computing Services Content as a Service (CaaS) Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Note: Other Categories Exist (e.g., DaaS Data as a Service) 21 Perkins Coie LLP PerkinsCoie.com
22 Content as a Service (CaaS) The cloud offers a multitude of services that provide a wide variety of content, data and other services. 22 Perkins Coie LLP PerkinsCoie.com
23 Software as a Service (SaaS) Allows a user to use a software application over the internet, thereby eliminating the need to install and run the software application on the user's computer. 23 Perkins Coie LLP PerkinsCoie.com
24 Software as a Service (SaaS) 24 Perkins Coie LLP PerkinsCoie.com
25 Platform as a Service (PaaS) A category of cloud computing that provides a platform (e.g. software tools) allowing customers to develop, run and manage applications. 25 Perkins Coie LLP PerkinsCoie.com
26 Platform as a Service (PaaS) 26 Perkins Coie LLP PerkinsCoie.com
27 Example of PaaS 27 Perkins Coie LLP PerkinsCoie.com
28 Infrastructure as a Service (IaaS) Allows customers to rent computer processing services (e.g., servers) and storage 28 Perkins Coie LLP PerkinsCoie.com
29 Selected Contract Issues Differences between Services and Software Software Licenses vs. Services Models Vendor Obligations (Software vs. Services) Data Ownership and Security 29 Perkins Coie LLP PerkinsCoie.com
30 Goods/Software vs. Services Models Software licenses are governed by the UCC while pure service agreements are not UCC imposes implied warranties on delivered software No such warranties in a pure services contract Contract Acceptance - Mirror Image Rule Requires that acceptance be on precisely the same terms as the offer The Uniform Commercial Code ( UCC ) rejects common law mirror image rule, as valid contracts between merchants can be formed without all terms matching. 30 Perkins Coie LLP PerkinsCoie.com
31 Common Vendor Product/Service Duties Installation Services On-boarding Delivery of Software/Services Improvements/modifications Training Maintenance and Support/ Service Level Agreement Compare Software vs. Service 31 Perkins Coie LLP PerkinsCoie.com
32 Service/Software Evolution What is the process for changing the platform, operating system or application? Can the customer refuse or delay a change? (typically only applies to software) How much notification needs to be given? Different notice periods for routine vs. emergency changes? Will a test environment be provided prior to implementing a change? How does pricing work? Compare Software vs. Service 32 Perkins Coie LLP PerkinsCoie.com
33 Data and Security Data and Moving to the Cloud Data Ownership/Use of Analytics Security 33 Perkins Coie LLP PerkinsCoie.com
34 Data Ownership/Analytics Who owns data? Express assignment of any data that is created for customer How can the vendor use customer data? 34 Perkins Coie LLP PerkinsCoie.com
35 Security Agreements may distinguish between "Security Issues" and "Security Incidents" and provide different rights, obligations and remedies for each category. Security Issues issues that could give rise to a security breach Security Incidents actual breach of security 35 Perkins Coie LLP PerkinsCoie.com
36 Security Issues How are security issues defined? Objective vs. subjective definition Are issues in the vendor's control and those in the control of its subcontractors differentiated? Does every problem need to be investigated? Does every problem need to be fixed? What is the process for fixing the issue? Is there a specified time frame? How is the time frame adjusted for fixes that take longer to implement? 36 Perkins Coie LLP PerkinsCoie.com
37 Security Incident Notice requirement to other party Remediation efforts Who does what? Who pays for the remediation efforts? Does the breach require end-user notification? Who has legal liability for the incident? May want to address liability caused by third parties (e.g., hackers) 37 Perkins Coie LLP PerkinsCoie.com
38 Data Protection Agreements/ Addendums Data Protection Agreements/Addendums (DPAs) have been a fairly routine part of cross border data agreements for many years DPAs have traditionally been limited to protection of personally identifiable information (PII) New Trends.. It is becoming more common to see DPAs in U.S. based deals DPAs now frequently cover all data not just PII 38 Perkins Coie LLP PerkinsCoie.com
39 Common DPA Elements Security/Data policy requirements (security officer/cio) Personnel training and screening Scope and Disclosure of Data Technical security measures - such as: authorization, identification, authentication, access controls, management of media etc Record Keeping Logs Testing/Audit of security obligations Procedures for fixing issues Breach notification and remediation obligations 39 Perkins Coie LLP PerkinsCoie.com
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