Cloud Computing Strategy & Roadmap Project Readiness Assessment May 15, 2014 Ministry of Communication and Information Technology (MCIT) eSystems Africa Online Systems House

Contents  Introduction to Cloud Computing  Readiness Assessment  Policy Makers Future View  Cloud Computing Policy  “Seed the Cloud” Cloud Computing Strategy & Road Map  Conclusion and Next Step  Introduction to Cloud Computing  Readiness Assessment  Policy Makers Future View  Cloud Computing Policy  “Seed the Cloud” Cloud Computing Strategy & Road Map  Conclusion and Next Step

Introduction What is Cloud Computing? NIST Definition: “Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” [1] Basic Concept:  On-demand Self-Service: the ability to request and manage computing resources.  Broad Network Access: the ability to access services over the Internet or private networks.  Pooled resources: the ability to draw or pool computing resources, usually from remote data centers. What is Cloud Computing? NIST Definition: “Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” [1] Basic Concept:  On-demand Self-Service: the ability to request and manage computing resources.  Broad Network Access: the ability to access services over the Internet or private networks.  Pooled resources: the ability to draw or pool computing resources, usually from remote data centers. 1 S OURCE : N ATIONAL I NSTITUTE OF S TANDARDS AND T ECHNOLOGY, U.S. (NIST)

Basic Cloud Deployment Models  Public Cloud: The provision of access to computing resources for the public over the Internet. Example: Amazon Web Services, IBM's Blue Cloud, Sun Cloud, Google App Engine and MS Azure Services Platform  Private Cloud: The provision of cloud services to users with immediate access to privately owned computing resources hosted within an organization's infrastructure. Example: Financial (banking) application provides customers with web access to manage their accounts over the Internet.  Community Cloud: The provision of cloud services for organizations with similar interests and requirements to share a common cloud infrastructure. i.e. specific group with common computing concerns Example: regulatory compliance for audit, quick response A healthcare community cloud, for example, could be tailored to provide specific security and regulatorysecurity requirements  Hybrid Clouds: Combining one or more public clouds, and one or more private clouds by technology that enables data and application migration. Example: Financial Institution requires additional storage for historical data  Public Cloud: The provision of access to computing resources for the public over the Internet. Example: Amazon Web Services, IBM's Blue Cloud, Sun Cloud, Google App Engine and MS Azure Services Platform  Private Cloud: The provision of cloud services to users with immediate access to privately owned computing resources hosted within an organization's infrastructure. Example: Financial (banking) application provides customers with web access to manage their accounts over the Internet.  Community Cloud: The provision of cloud services for organizations with similar interests and requirements to share a common cloud infrastructure. i.e. specific group with common computing concerns Example: regulatory compliance for audit, quick response A healthcare community cloud, for example, could be tailored to provide specific security and regulatorysecurity requirements  Hybrid Clouds: Combining one or more public clouds, and one or more private clouds by technology that enables data and application migration. Example: Financial Institution requires additional storage for historical data

Basic Cloud Models  Software as a Service (SaaS): On-demand applications are provided through an Internet. Example: Office 365, Google Doc, e-Commerce Applications  Platform as a Service (PaaS): The provision of platform for building, developing, testing or customizing applications in the same integrated development environment. Example: Google’s App Engine, Microsoft Azure (mobile apps development).  Infrastructure as a Service (IaaS): virtual delivery of computing resources in the form of hardware, networking, and storage services. Example: Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable computing capacity in the cloud Woredanet can be provided as a service.  Software as a Service (SaaS): On-demand applications are provided through an Internet. Example: Office 365, Google Doc, e-Commerce Applications  Platform as a Service (PaaS): The provision of platform for building, developing, testing or customizing applications in the same integrated development environment. Example: Google’s App Engine, Microsoft Azure (mobile apps development).  Infrastructure as a Service (IaaS): virtual delivery of computing resources in the form of hardware, networking, and storage services. Example: Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable computing capacity in the cloud Woredanet can be provided as a service.

Cloud Applications Practical Examples:  Software as a Service (SaaS): What if eSystems or OSH would like to provide ERP solution to SMEs in cloud environment (charge by # of transaction or monthly flat fee). Entrepreneurs providing mobile apps  Platform as a Service (PaaS): What if students and IT professionals develop localized apps for android mobile operating system in cloud.  Infrastructure as a Service (IaaS): What if Ethiotelecom provides virtual computing and storage resources as needed for Banks, IT Software Companies. How about converting WoredaNet Internet access capability to cloud? What is missing now? – per use bases, as needed, billing, bandwidth optimization capability Practical Examples:  Software as a Service (SaaS): What if eSystems or OSH would like to provide ERP solution to SMEs in cloud environment (charge by # of transaction or monthly flat fee). Entrepreneurs providing mobile apps  Platform as a Service (PaaS): What if students and IT professionals develop localized apps for android mobile operating system in cloud.  Infrastructure as a Service (IaaS): What if Ethiotelecom provides virtual computing and storage resources as needed for Banks, IT Software Companies. How about converting WoredaNet Internet access capability to cloud? What is missing now? – per use bases, as needed, billing, bandwidth optimization capability

Rational for Cloud Adoption Cloud computing can offer economies of scale, standardization, integration, scalability and other benefits that would otherwise be unavailable with the current ICT settings. Main Benefits:  Reduces initial and continuous upgrades costs  On demand capacity utilization of services (Enhanced elasticity)  Greater flexibility and mobility of access to data and services;  Immediate and cost-free upgrading of software;  Enhanced reliability/security of data management and services.  Saves operational costs (30% [$60M] savings in the case of Korea)  Better Disaster Recovery and Business Continuty Cloud computing can offer economies of scale, standardization, integration, scalability and other benefits that would otherwise be unavailable with the current ICT settings. Main Benefits:  Reduces initial and continuous upgrades costs  On demand capacity utilization of services (Enhanced elasticity)  Greater flexibility and mobility of access to data and services;  Immediate and cost-free upgrading of software;  Enhanced reliability/security of data management and services.  Saves operational costs (30% [$60M] savings in the case of Korea)  Better Disaster Recovery and Business Continuty

Readiness Assessment Approach Primary  Survey Study  Questionnaire (25 Government Organizations including 3 Universities and 2 National Service Providers)  Interview (NDC, ETC, UoG, MoH, MoUDC, ELSE, Directors, Minister) Secondary  Desk Research - Existing Standards, Frameworks & Guidelines (EA, EGIF & ITISM) International Experience  Site visit – NCIA, Korea Telecom (Kt)  Egypt, Rwanda, South Africa, and Australia Primary  Survey Study  Questionnaire (25 Government Organizations including 3 Universities and 2 National Service Providers)  Interview (NDC, ETC, UoG, MoH, MoUDC, ELSE, Directors, Minister) Secondary  Desk Research - Existing Standards, Frameworks & Guidelines (EA, EGIF & ITISM) International Experience  Site visit – NCIA, Korea Telecom (Kt)  Egypt, Rwanda, South Africa, and Australia

Assessment Framework

Strategy Progression CurrentState Infrastructure, Software, Capacity, Capability, Others CurrentState Infrastructure, Software, Capacity, Capability, Others FutureState Cloud Computing Policy, Strategy, Capability, Resources, Etc… FutureState Cloud Computing Policy, Strategy, Capability, Resources, Etc… ICT Policy ICT Frameworks StandardsGuidelines Policy Direction Other Countries ICT Policy ICT Frameworks StandardsGuidelines Policy Direction Other Countries G A P

Research Coverage For meaningful analysis the 54 Institutions are grouped into five categories:  Ministries, Agencies and Public Enterprises (37)  Universities (3)  Banks (6)  ICT Private Sector Companies (12)  National Service Providers (2)

ICT Resource Findings Through the national Network Master Plan (NMP 1 & 2) and other initiatives, all Government Institutions surveyed indicated that they have implemented LAN and most of them are connected to the Internet either through the WoredaNet or individually via the Ethiotelecom broadband services. Description of LAN Implementation Items of Ministries, Agencies & Public Enterprises Survey Findings Median Number of Computers per Organization 240 Average Number of Nodes per Organization PC/Laptop penetration for 100 persons 59 Average Number of Servers per Organization 7.37 Average Number of Access Switches per Organization Average Number of Core Switches 1.44 Median No. Storage System Size N/A Means of Connectivity: Fiber (few indicated that they also use ADSL and EVDO for redundancy) Fiber Shared Bandwidth Availability 4 to 10 Mbps

ICT Resource Findings The survey shows that the universities have shared bandwidth of about 200 Mbps. However, the actual bandwidth is very low due to high usage by students and faculty. The storage capacity for servers was found to be significant (UoG showed 273 TB of storage). Description of LAN Implementation Items of Universities SurveyFindings Average Number of Computers Average Number of Nodes PC/Laptop penetration for 100 academic staff 100 Average Number of Servers per Organization 20 Average Number of Access Switches per Organization 120 Average Number of Core Switches 2.00 Storage Systems Capacity 20 TB* Means of Connectivity: Via Fiber % Median Shared Bandwidth Availability 200 Mbps

ICT Resource Findings Both National Service Providers can be categorized as Tier 1, many single point of failures. (As per TIA 942 Data Center standard) Description of LAN Implementations EthiotelecomNDC Number of Computers Number of Nodes PC/Laptop penetration for 100 persons (functional staff) is: Number of Servers Number of Switches 1504 Number of Core Switches 22 Storage Systems Capacity 350 TB 240 TB Means of Connectivity: Via Fiber %100% Dedicated Bandwidth Availability 200 MB 616 MB

ICT Resource Findings All Banks have implemented Virtual Private Network (VPN) connecting Branch Offices to share their respective Core Banking Application from their Data Center. Each Bank’s VPN forms the bases for WAN. Description of LAN Implementations Items in Banks Survey Results Median Number of Computers per Organization Average Number of Nodes per Organization PC/Laptop penetration for 100 persons79.92 Average Number of Servers per Organization24.17 Average Number of Switches per Organization31.50 Average Number of Core Switches2.33 Median No. Storage System Size17.80 TB Means of Connectivity: Via Fiber (few indicated that the use ADSL and EVDO for redundancy) mostly VPN connectivityFiber Shared bandwidth Availability8 Mbps

ICT Resource Findings The survey indicates that most ICT Private Sector Companies are small scale ICT service providers. Description of ICT Resources of ICT Private Sector Companies Survey Findings Average Number of Employees per Organization Availability of Data Center (4/12) 33.33% Average Number of Servers per Organization 3.25 Utilization of Virtualization Technology (4/12) 33.33% Operating System Platform Windows Future Intention to build Data Center (6/12) 50.00% Median No. Storage System Size N/A Means of Connectivity: Via EVDO (few indicated that the use ADSL) ADSL/EVDO Shared bandwidth (Mbps) 3.63

Research Outcome Service and Application – (Ministries, Agencies & Public Enterprises) Internally, the ministries and Agencies use their LAN mostly for Internet Access (31 out of 31) and File Sharing (24 out of 31),

Research Outcome Service and Application – (Universities) The major applications at the level of the universities are Student Record Management System (SRS) and learning management (Moodle)

Research Outcome Web Portal Hosting Location of Ministries and Agencies Good beginning for Government office to host at NDC

Research Outcome Service and Application Service/ApplicationsEthiotelecom ERP – HRM, Finance, Procurement, Billing NDC Internet Gateway, VC, Portal Hosting, e-Gov Apps, Collocation, DR (IFMIS, NBE)

Research Outcome Operating System Platform Desktop OS Server OS Ministries and Agencies Windows Windows, Unix (4 Ministries) UniversitiesWindows Windows, Linux & Unix National Service Providers Windows Windows, Linux & Unix BanksWindows Windows, Unix ICT Private Sector Companies WindowsWindows  Server OS is properly licensed  Desktop OS mixed (some licensed)  Server roles:  Server roles: Domain Controller, Web Server, Database Server, Application Server, Web Server, Mail Server and Anti-Virus Server

Research Outcome Virtualization Technology Virtualization Ministries and Agencies Very low - some attempt (4 Ministries) Universities BDU – None UoG/AAU-Invested National Service Providers Some Attempt – VM Ware Banks Some Attempt at CBE ICT Private Sector Companies ITSC provides training

Research Outcome ICT Strategy, ITSM, Security and Disaster Recovery Plan Capabilities MinistriesUniversitiesEthiotelecom/NDC IT Strategy Out of 31 Government ICT Organizations, 12 had IT strategy Addis Ababa and Gondar Universities have IT strategy Ethio Telecom and NDC have IT strategy ITSM 4 Government ICT Organizations had initial ITISM practice such as Incident Management, Problem Management and Change Management. ITISM implementation at Addis Ababa and Gondar has begun ITSM implementation is at an early stages IT security Only 11 out of 31 Gov. ICT Organizations had IT security plan All universities have IT security plan Ethio Telecom and NDC have an IT Security Plan Disaster Recovery Only 4 out of 31 Government ICT Organization had disaster recovery plan Addis Ababa and Gondar Universities have DRP that was not tested Ethio Telecom and NDC have DRP (not tested)

Cloud Maturity Cloud Computing Capability and Maturity Assessment  There is a significant awareness gap of the cloud computing environment in Ministries, Agencies and public enterpises.  Universities: Very aware  National Data Center and Ethio Telecom has said they have some understanding of a cloud computing environment.  Banks: 50% responded very aware and 50% indicated somewhat aware  ICT Private Sector: Most are aware of cloud Ministries and Agencies Somewhat aware 64%

Cloud Awareness Interpretation Ministries and Agencies: The low level of awareness of cloud computing implies none of the Ministries and Agencies have initiatives that promote cloud computing Universities: The universities showed some interest but they do not have the tools National Service Providers:  The provision of cloud services is not very clear (some confusion exists)  However, both provide some services such as web hosting, collocation and DR services but without cloud delivery business model and DR services but without cloud delivery business model National Service Providers: Banks are at early stage of Core Banking application and nothing more (some attempt to provide limited access to customers – Internet access). Private Sector Companies: None

Intention to Utilize Cloud Services  The low level of awareness - The intention to utilize cloud computing is not entirely clear in Ministries and Agencies.  Universities - Showed interest to use cloud computing in the future.  National Service Providers - Do not have the appropriate tools and technologies to launch cloud services.  Banks – Intention to move certain application to cloud Note:  Converting to Cloud Computing environment will requires significant investment.  GIDC – Should be considered as a first good step

Research Outcome Key Indicators Australia South Korea South Africa EgyptRwanda GDP$ 1,532,40,000$1,129,598,000$384,313,000$262,832,000$7,103,000 ICT Development Index (2012)7.9 Rank: Rank: Rank: Rank: Rank: 141 E-Gov. Development Index (2012)8.39 Rank: Rank: Rank: Rank: Rank: 140 Mobile Penetration per 100 (2012) % of Individuals using the Internet Cloud-computing Strategy Will be a leader in the use of cloud services to achieve greater efficiency, generate greater value from ICT investment, deliver better services and support a more agile public sector. Many successive ICT related strategies have been launched & accomplished. In 2011, a government cloud- computing platform “G-Cloud” deployed Outlined a National e- Strategy that aims to improve those communities, by providing frameworks for access to ICT. The strategy is in the process of implementation. The ICT strategy stresses raising productivity and efficiency in government authorities through the use of ICTs, including cloud- computing technologies Recognizes that there is a shift in the global service model in which service providers are leveraging cloud-computing technologies to offer “everything- as-a-service”. Cloud Adoptionadopted a sound cloud-computing strategy Among others, NCIA’s manages GIDCs. Cloud services just started. Government lags behind on cloud adoption Planning phase for specifying a national cloud- computing framework Cloud-computing platform was installed to centrally host Public and Private sector applications and services.

Infrastructure and Access Indicators2013Ethiopia2013Egypt2013Korea Mobile Cellular Subscription per 100 Inhabitants Internet users per 100 Inhabitants Fixed Broad Band Subscribers per 100 Inhabitants N/A International Bandwidth per 100 Inhabitants 8.682,898 N/A N/A

Other Policy Initiatives Increase mobile penetration to an idea level of 40 M. as per GTP. What does this mean? Potential development of mobile apps generating massive data To substantially increase PC penetration (incentives to lower PC/tablet prices) What does this mean? Extended e-Gov services, content, massive data.. National broadband expansion plan What does this mean? Cloud adoption is real, major criteria for cloud environment. Fixed line expansion What does this mean? Increased access to the Internet (explosion of home office) LTE (Addis Ababa) and 3G + technology (nationwide) expansion What does this mean? Increased access to data communication.. E-industry development - the creation of an e-industry ecosystem What does this mean? Making mobile devices, tablets and PCs more affordable. ICT Village – formulation of software and hardware study for ICT village “ What does this mean? Huge opportunity for the provision of cloud services” Policy makers view:

Conclusion  Government investment already made in infrastructure has set the foundation to move forward to Cloud. the foundation to move forward to Cloud.  National Data Center has the basic ingredients to move forward towards GIDC and eventually to cloud. Significant investment towards GIDC and eventually to cloud. Significant investment and training needed. and training needed.  Government IT procurement and security major concerns.  Step-by-step approach recommended towards cloud adoption.  Critical mass of highly trained IT professionals critical to move towards GIDC and Cloud. towards GIDC and Cloud.  Implementation of EA critical to facilitate sharing of information.  Virtualization should be encouraged at NDC and Ethiotelecom for improved datacenter performance. improved datacenter performance. Readiness – Way Forward

Research Outcome Next Step  Awareness campaign on cloud is critical.  Standardization of ICT equipment, software development, quality assurance, common interface, interoperability, integration, common assurance, common interface, interoperability, integration, common data set and API should be considered a priority. data set and API should be considered a priority.  Phased approach recommended. Consolidation of ICT resources GIDC approach very important. NDC can support this endeavor. GIDC approach very important. NDC can support this endeavor.  Alignment of strategies (ICT Policy, e-Government Strategy, GIDC strategy and Cloud) is critical. strategy and Cloud) is critical.  Cloud strategy should clearly outline potential benefits, risks and opportunities of data center consolidation and cloud computing opportunities of data center consolidation and cloud computing  Strategy shall discuss cloud delivery models and infrastructure environment including standardization, consolidation, virtualization, environment including standardization, consolidation, virtualization, optimization and governance of the national data center optimization and governance of the national data center