1. Smarter benefits. Better health. Cloud: A Matter of Perspective Lonnie Emard AVP and Executive Director, IT-oLogy ECC Conference June 12, 2012

2. Smarter benefits. Better health.  Promises of Cloud: »dizzying array of Applications Management options: Rapid provisioning of functional applications Ability to adopt greater functionality »A material change in the cost of technology that will change the way we use and employ IT Ability to rapidly ramp up or down resources Lower capital requirements Faster time to innovation »Better security  The problem is »different definition, especially cloud vendors who tend to shape the definition based on their offerings. »hope for a “silver bullet” »increase capacity or add capabilities on the fly without investing – too good to be true? »doesn’t replace existing power horses  And in the end, it is not about technology, it is about a Business Model. Cloud Computing: “the phrase du jour”

3. Cloud Computing is based on improvements in “virtualization” technology, not on the entrance of a revolutionary technology

4. Real Life Example Results  # Physical Servers are shrinking  # VM Servers are shrinking  Almost half of Virtual Servers are ZLinux  Results: »Lower Management Cost »Lower Power and Cooling Cost Virtualization No Cloud Required Physical Server Installed Base

5. Cloud Computing is a business choice, not a technology choice

6. ITIL Framework Summary TheBusinessTheBusiness TheTechnologyTheTechnology Application Management The Business Perspective ICT Infrastructure Management Service Management Service Support Service Delivery Security Management IT Delivery Service Models Customer’s Organization IaaS PaaS Hosted SaaS BPaaS Business Model Choice

7. Customer Portal Global Identity Management Global Service Catalog Global Provisioning Manager Software as a Service Platform as a Service Infrastructure as a Service Compute Element Network Element Storage Element Physical Data Center Element Service Catalog Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management Internet ConnectivityPrivate Network Connectivity General Cloud Computing Reference Architecture Service Catalog Identifies Servers, Storage, etc available to respond to a request for computing capabilities Provisioning Manager used to automate the provisioning of any item included in the Service Catalog Computing Elements Deals with X86 Intel based systems Other – provides for: pooled infrastructure resources to service multiple consumers using a multi-tenant model Adequate System Security A pay-as-you-use service for usage to be monitored, controlled, and reported to allow the allocation of costs back to individual business units Infrastructure-as-a-Service (IaaS) – Infrastructure Offering Platform-as-a-Service (PaaS) – Application development Software-as-a-Service (SaaS) – Applications delivery Network Access Identifies type of network to be accessed through standard protocols Customer Portal used to identify Service Offerings required to fulfill a request for computing capabilities in technical terms such as servers, storage, etc., and Security.

8. Customer Portal Global Identity Management Global Service Catalog Global Provisioning Manager Global Governance / Accounting / Charge Back Global Service Management Global Security Management Global Multi-Tenant Management Software as a Service Platform as a Service Infrastructure as a Service Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management External Service Providers Intel x86 Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management “Cloud-in-a-Box” at Customer Facility Intel x86 Master Cloud Computing Reference Architecture Government Data Centers Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management IBM zEnterprise Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management Intel x86 Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management Oracle/Sun Healthcare Focused Computing Elements IBM zEnterprise Intel x86 Oracle/Sun Internet ConnectivityPrivate Network Connectivity Network Access Identifies type of network to be accessed through standard protocols Customer Portal a solution set for a holistic consumer Interface which consolidates offerings into Business related items rather than technical related items thus providing a consumer’s guide through the complex, confusing world of Cloud Computing Service Catalog Identifies consolidated offerings into Business related items rather than technical related items Contains “role” based / consumer based customization Is NOT limited to Cloud offerings only Provides for any offering that a company would like to make available to its consumer base in business terms; for example: Seat Management Mobile Phones Workstations hardware / software Phones Labor Resources Provisioning Manager used to automate the provisioning of any item included in the Service Catalog The offering has a “scripting” / “programming” interface used as a “Common / Centralized” automation development tool brings source management to this type of work. Other – provides for: pooled infrastructure resources to service multiple consumers using a multi-tenant model Adequate System Security A pay-as-you-use service for usage to be monitored, controlled, and reported to allow the allocation of costs back to individual business units IT as a Service Reference Architecture Governance Consulting (DBA, Security) Application Management OS/Middleware Management Security Disaster Recovery Service Management Load Testing Development Consulting Project Management BEST PRACTICE FRAME WORK EVALUATION METHODMATURITY LEVEL SCORE ITILSelf-Assessment2006: 56% ITIL Levels Passed2009: 80% ITIL Levels Passed CMMIExternal AssessmentLevel 3 – Defined: processes are well characterized and understood, and are described in standards, procedures, tools, and methods. CoBitSelf-AssessmentHigh Level ObjectivesDetail Level Objectives Internal:100%97% External (*)100%96% (*) External Assessments are based on the number of CoBit Control Objectives considered in external audits because our reviews have found only 79% of the High Level Objectives and 82% of the Detail objectives are found in external audits. Therefore, a 100% rating on External Audits would be based on the 79% and 82% objectives respectively. EAMMSelf-AssessmentLevel 5: Indicated BCBSSC demonstrates the highest level of vitality through its current use of a combination of structured process, templates, and organizational fluidity. ISO 9000External AssessmentCertified SOXExternal AssessmentPassed Commercial Audit Compliance External AssessmentPCI, HIPAA, SAS 70 Government Audit Compliance External AssessmentCMS FISMA(High), DOD DIACAP/ATO General Cloud Computing Reference Architecture

9. Customer Portal Global Identity Management Global Service Catalog Global Provisioning Manager Global Governance / Accounting / Charge Back Global Service Management Global Security Management Global Multi-Tenant Management Software as a Service Platform as a Service Infrastructure as a Service Internet ConnectivityPrivate Network Connectivity Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management External Service Providers Intel x86 Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management “Cloud-in-a-Box” at Customer Facility Intel x86 Master Cloud Computing Reference Architecture Commercial Data Centers Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management IBM zEnterprise Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management Intel x86 Service Catalog Compute Element Network Element Storage Element Physical Data Center Element Provisioning Manager Governance/ACCT/Charge Back Service Management Security Management Multi-Tenant Management Oracle/Sun IT as a Service Reference Architecture Governance Consulting (DBA, Security) Application Management OS/Middleware Management Security Disaster Recovery Service Management Load Testing Development Consulting Project Management Healthcare Focused

10. IT as a Service Reference Architecture Governance Consulting (DBA, Security) Application Management OS/Middleware Management Security Disaster Recovery Service Management Load Testing Development Consulting Project Management ASDM ICT DMM Integrated Processes The Matrix: Our Secret Sauce

11. Smarter benefits. Better health. Picasso on a Schedule: The Art and Science of Managing IT By Stephen K. Wiggins, CIO and Kenneth C. Abernathy, PhD Available on Amazon for $29.95 Net proceeds go to IT-oLogy

12. Smarter benefits. Better health. That’s all Folks!