Government trends in 2011: Cloud computing, BPO, Security, Data Management.
Posted by Pari Faramarzi | Posted in Government, Public Sector ICT, cloud computing | Posted on 29-03-2011
Tags: Automated business processes
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The UK government’s budget statement spelled out a 25% cut in departmental expenditure over a four-year period. The quest for cost-effective solutions has already led many public sector bodies to go for outsourcing and shared services, but these latest cuts call for a fresh look at Cloud Computing.
A new report from Ovum has highlighted some of the most important technology trends of the next 12 months, including Cloud Computing, data management, security, collaboration and argued Cloud Computing and BPO are set to become two of the key trends tasked with driving through efficiencies with the UK’s public sector in 2011.
Cloud Computing
Cloud Computing is a whole new paradigm that not only offers hosted solutions but also standardisation, commoditization and elasticity. The combination of these features can really push down costs. Faced with large budget cuts, some public sector IT managers are already talking about reassessing the data risk issue, and so the budget cuts could prove to be a blessing in disguise for Cloud Computing.
BPO
Research often indicates that hosting technology off site is the least preferred approach to buying technology by the UK public sector. Despite the preference for on-site deployments, the drive for efficiency savings has led the sector to opt for a number of delivery models that can have hosted elements to them, including outsourcing and shared services.
“With every penny counting and governments keen to ensure there’s more visibility and accountability of how taxpayers’ money is spent, in 2011 agencies will look at new ways of procuring services. In addition there will be changes in how contracts look – in some cases we will see consolidation.” (Jessica Hawkins, Ovum analyst)
The Ovum report partially contradicts a recent report from Socitm, the Society of IT Management, which argued Cloud Computing must be the central theme for ICT strategies if organisations are to provide cheaper and better public services– and organisations in the public sector should hold off outsourcing ICT, which the report said would cause delay and might also mean benefits would be “enjoyed more by the outsourcing supplier than by the customer”. Socitm’s report also said public sector organisations were in a position to shift from a provider to consumer of Cloud services, arguing the Public Sector Network is a key infrastructure to support Cloud applications.
Despite this, added the report, a lack of applications currently available on the network would mean a mixed economy of internally hosted and Cloud-hosted applications would exist for some time.
Security
The public sector has data security issues of its own, as demonstrated by a string of data loss debacles by government bodies over the last few years. Those included HMRC’s loss of two disks with 25 million records in 2007, and security lapses in the DWP’s shared CIS system by local authority staff. The sector could charge a cloud operator with the task of managing data security and privacy to a high standard on its behalf as part of a Cloud Computing service. Even the issue of having data transferred overseas could be addressed by government customers asking for data centres to be based within the EU.
The British Computer Society’s Peter Wood said data security was one area gaining a lot of attention in the public sector. “Nowadays there are fines for councils and public sector organisations if computers are found to be unencrypted. However public sector funding for
security investment and infrastructure is still tied. Where Cloud is concerned many councils have to use a UK data centre and there are some very sensitive areas such as Child Support and Social Services that would need robust security processes in place before outsourcing to the Cloud.”
Mark Blowers, the Ovum report’s author, said it remained high on the agenda for IT professionals, and argued the number of threats is increasing. “New technologies such as mobility, social media and cloud computing present new opportunities, but also vulnerabilities,” he said. “In 2011, CIOs should adopt an approach that brings together technology, policy and people. The wider picture for corporate protection must also include risk, compliance and regulatory issues.”
“As well as challenges, there is a big opportunity to revolutionise business processes and customer interaction using new mobile apps,” said Blowers, who added organisations should try to maintain a balance between user preference and productivity and corporate security and compliance.
Data Management
The high volume of data will also mean data management will remain a high priority, according to Blowers. “The issue of hardware capacity and the drain on resources will see data management make it on to the investment agenda for IT departments in 2011. We believe they need to address both master data management and storage management to deal with the issue effectively.”
Summary
The use of Cloud Computing is expected to grow steadily in 2011, though Blowers and Ovum acknowledge it is “early days for both providers and CIOs”. The change in work practices, including the increasing use of collaborative platforms is also something expected to grow over the next 12 months.
Finally, the report has said CIOs should be looking to instrumentation, metering and wireless technologies in 2011 to play a significant role in providing the context. Blowers argued this can lead to automated business processes and increased productivity. It is also important to fully understand the impact increased contextual data will have on the IT environment and applications, as well as back-end infrastructure.
Resources: Kable.co.uk, Public Technology.net, Public Service.co.uk
Links: http://www.publictechnology.net/print/node/28524
http://www.publicservice.co.uk/news_story.asp?id=15121
http://www.publictechnology.net/sector/central-gov/data-management-cloud-and-security-trend-2011
http://www.publictechnology.net/print/node/28570





