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Episode 1: Consciously Hybrid, the South Africa story, an HPE original documentary

Episode 1: Consciously Hybrid, the South Africa story, an HPE original documentary exploring the challenges of digital transformation in the Public Sector in South Africa. To view other episodes visit: https://www.hpe.com/za/en/solutions/consciously-hybrid-cloud-za-government.htm

Hewlett Packard Enterprise

4 months ago

In this series of Consciously Hybrid, we're exploring South Africa's relationship with cloud technologies. My name is Daniel. I travel the world discovering how cloud technologies are destined to shape the way we live and work. I'm here to learn how the government will adopt cloud and develop new services for citizens as they unite in the fourth industrial revolution. We as the DPSA started to look at cloud and I think we mulled about with the policy for probably about two years. That policy rea
lly governs everything cloud. This is the fourth industrial revolution. Where and how the cloud first policy originated is a very interesting one. When we were drafting or thinking through and contributing to our country's cloud first policy, The whole idea of digital transformation was happening, the whole idea around the fourth industrial revolution happening and this idea that data will be the new gold. So when you think about those three aspects happening, we had to create a framework to hel
p shape and think how that would work and what would be the framework for us to operate in. And so the cloud first policy, in my view, was part of the mission to frame how that will work and how we will think about the asset, the data asset, where the data asset will live, etc., etc., So really it was a necessary requirement for us to shape and be very progressive about how we adopt these technologies to achieve the outcomes we're looking for. What were those outcomes? Those outcomes were delive
ring better services for our citizens, If I think from a public sector perspective, and deliver the service in a way that our citizens want to experience that service, which was very different to having to go to a building, filling in a piece of form, etc., etc. So again, it was in that context that, in my view, why the policy was drafted and how we went in a specific direction. My name is Zaid Aboobaker. I am the acting Deputy Director General in the Department of Public Service and Administrat
ion. We are the department responsible for the establishment of norms and standards for ICT in the public service. I think the journey in clouds started probably around 2017-18, where as cloud became prevalent, the international discussions, the industry discussions around cloud, we as the DPSA started to look at cloud. And initially, we thought about a broad policy, a policy framework around the adoption of cloud. So we did quite a bit of research and toing and froing, looking at the material,
looking at international best practice, trying to figure out what should our position be on cloud, How do we want to utilize cloud technologies, what are the risks and those kinds of things. And I think we mulled about with a policy for probably about two years. Being a little bit nervous to adopt the technology, then came COVID. And to a certain extent, our hand was forced in terms of the cloud adoption. And I think up to then, many departments were pressuring us to release something, to give t
hem permission to start to utilize cloud, and rightly so. But we were a little bit nervous to pull that trigger. Along comes COVID and suddenly most departments just started to utilize the cloud. Primarily for collaboration, for meetings, for document sharing and those kinds of things. But we found ourselves in the middle of a cloud implementation post-COVID. I think from our perspective, we had to rethink our approach to the cloud policy issue and try to make it a lot more practical. And so wha
t we did was to then look at a specific directive where we could guide departments and agencies around cloud adoption, looking at the risks, looking at the security issues, looking at the opportunities as well. And we released in 2022, we released the directive on the determination and directive on cloud computing in the public service. I think firstly, it's great that South Africa has got an equally defined policy that really gives guidance around the adoption of cloud. What we have seen initia
lly, there was confusion around what the policy fundamentally provides for, where there was a perception that this policy really speaks to a public cloud strategy only. However, most recently we are now starting to see that there's an appreciation or an understanding that that policy really governs everything cloud, be it public cloud or private cloud, to an extent where we're seeing quite a number of government institutions that have invested in best of both in delivering whatever aspirations t
hat they may have for their businesses. My name is Bongani Mabaso. I'm the CEO of SITA, which is the State Information Technology Agency in South Africa. So the cloud adoption in South Africa has been, I think it's still fairly new. I remember the first time that cloud was really a thing in South Africa was back in 2014 when Microsoft brought their first cloud region to South Africa. And I think it's been steady going since then. I think the private sector has jumped on the opportunity to move f
ast. I recently worked for Standard Bank where we had massive cloud acceleration program. I think in the public sector, things have been a bit slower, Especially because we didn't have a guiding policy to help us to understand cloud and how to position it appropriately. But since the policy has come through, we're now seeing a lot more appetite from clients to consume cloud and cloud services. And our role at SITA is to ensure that we can enable them technically to do that in a safe way. And so
what we're busy doing right now is signing various framework agreements, designing reference architectures with the big cloud service providers to ensure that our clients can consume it in a way that is safe and secure. The understanding the cloud models and the individual service providers and how they define their cloud, how they license their cloud, and how it all kind of fits together, I think you probably need a degree in their technology to understand it. I remember an example where we wor
ked with a particular province trying to unpack the agreements with one major vendor. And we actually had to bring in external consultants to unpack an agreement that we signed with a major vendor around some of these cloud technologies just to understand the licensing model in order to empower ourselves to go in and negotiate and break down what it is that we procured. I think there's a risk as these technologies mature as international vendors start to bundle a lot of technology together and d
efine it in their own way and license it in their own way, there's a risk that we face in that sometimes we don't necessarily understand what it is that we're procuring. The finer detail is not included on the flashy presentation. We've tried to deal with that in the directive by asking departments and agencies to make sure that they unpack their contracts, their license agreements and understand what it is they are procuring. We've further then given them direction to say that they should procu
re what they are prepared and ready to use right now. I think this is another phenomenon, that because of the way these software packages and platforms are bundled together, it's quite attractive to want to procure everything at this point. That is really a tough conversation I'm having with my Chief Information Officers is when they have this novel idea and a strategy to move to public cloud and they go ahead and they buy these cloud services ahead of time, many of them don't realize that if yo
u don't use the service, you lose the service. So if you buy, you take any contract and you don't consume that service, at the term of that contract you lose that. And so that now introduces a new concept around fruitless and wasteful expenditure. Department is staying{inaudible}, they need to be prudent in terms of how they procure and start to spin up some of these cloud services. The directive has certainly accelerated appetite for cloud. However, many described it can often be slow to implem
ent, especially for organizations with legacy systems and this is a complexity faced the world over. I wanted to understand more about the speed of adoption. Is this a challenge or does it represent an opportunity to take a more considered approach and perhaps avoid the issues encountered by other governments? I think there's been some progression and there continues to be a good progression. However the pace at which we are progressing, I think it can be improved. I'm noting quite a number of i
nstitutions, particularly at a national government level where we're seeing some of those national departments that really take the lead in really adopting cloud, therefore leading by example and that's really encouraging as you know that the benefits that come with that have been rather obvious for the institutions that have embraced cloud that have invested in cloud, particularly in enabling themselves in delivering a better service to their constituencies and to their South African citizens a
t large. I think people perceive the term cloud and cloud first in different ways. I think the prevailing way they perceive it is definitely around public cloud. I think when you say cloud in South Africa to the general citizen, you're thinking Microsoft, AWS, Oracle, Huawei, perhaps Google and the like. But I think in the corporate sector the understanding is a lot higher. There's an understanding of the differences between public cloud, private cloud and also hybrid cloud. For instance within
SITA, we actually consume a combination of both. So we've got private cloud, so we've got infrastructure that we call CFI, cloud foundation infrastructure which is effectively private cloud for our clients but we also consume public cloud as well where it makes sense to run applications there as well. So I think from a corporate perspective the understanding is a lot higher. I think from a general citizen perspective perhaps the perception is still that it's mostly referring to public cloud. If
I think about how successful public cloud has been in the context of a cloud first policy, I see a couple of things in the market. The Chief Technology Officers or the Chief Information Officers that were very deliberate and clear about their strategy and how they were going to digitally transform their organizations have done extremely well. In fact, I know of one Chief Information Officer who's probably 95% moved all of his organization into the public cloud. This move was not just a lift and
shift but it was a transformation in consuming both platform as a service offerings as well as software as a service offering. But again it was very deliberate and clear. But by far the majority of Chief Information Officers I continue to speak to are really struggling in the implementation of that cloud first policy because that's where the rubber hits the road then many of them have legacy workloads that aren't really positioned well to transform either in lift and shift or in a transformation
and so a lot of them are thinking through some of those nuances. The mix of existing infrastructure makes it nearly impossible to migrate everything to a public cloud. It feels that there is an inevitability that a hybrid approach to cloud is needed. We're always going to be hybrid in our approach. I can't see a scenario where we are totally reliant on cloud technologies. It's just not the nature of what we do. There are certain amount, there are certain services that we deliver certain data th
at we are responsible for that would simply just not be exposed in terms of the cloud. And we're looking at different approaches. In the directive and determination we speak about government private cloud as something that the state IT agency must develop for us as a collective where we can trust that this is a service where we can store our sensitive data. I think the general response to the determination and directive has been positive. In fact, from a compliance perspective we are struggling
to keep up with the amount of submissions that we are getting from departments and agencies that have started to use cloud. And I must say that we have not created a situation where we are gatekeepers for the decisions. While we have published the determination and directive on cloud usage, the decision ultimately lies with Accounting Offices and Directors General in departments and agencies who are responsible for the services that they deliver at the end of the day. Ours is to ensure that when
it's done, it's done in a responsible manner. The departments have taken into consideration the risks, the issues of the data sovereignty, the issues of data location, the issues of privacy, and of course all of the other risks that arise out of the cloud adoption. There is plenty of hype and marketing around cloud. But are CIOs in a difficult position? With so many suppliers keen to sell cloud solutions, how do you choose? Perhaps even more importantly, how do you evaluate suppliers? How do yo
u make sure that they share your values and are as equally as invested in South Africa's digital future? My message to cloud service providers is that we need to be responsible. We need to take responsibility and be responsible in the way that we sell some of our technologies into organization. It's fine to market your technology, but I don't think it's acceptable to sell technology into an organization fully understanding that this organization is not prepared or is not able to consume all of t
hose licenses and that technology at this point It's a question of ethics and ethics requires that well, yes, from a procurement perspective, from a user perspective, we understand that we are utilizing public funds. But it's also a responsibility from the private sector to make sure that when you sell into government, when you sell into any organization, that you do so responsibly. I think many times service providers understand when an organization is not able to consume what they're procuring
. We've seen this example with ERP licenses across the board in this country. I think it's public knowledge now. Looking at some of the examples of ERPs that have been procured, I'm sure the private sector has similar examples where we've spent millions of rands buying software and that software has not been utilized. One doesn't simply need to look in the public sector. One can look in the private sector and find these examples in IT in general. I think this practice is, of course, taken into t
he cloud. It's just a bit easier now where you're able to switch things ON and OFF. You're able to use a particular package and then receive a bill later on and understand the impact. What we've tried to do is to just give practical advice in the directive to departments and indicate to them that they should put in controls around how we switch on and switch off services in the cloud because there isn't a financial impact. I think it is going to require a behavioral change on the side of governm
ent, but also on the side of service providers as they contract. We are not afraid as a government to expose some of these practices. In the recent past, we've had commissions around some of the corruption. There are examples of IT organizations that have been involved. From our perspective as the DPSA, we are looking at these issues of ethics in the public service, making sure we have an ethical public servant. I also think it requires good ethics on the other side of the transaction as well. I
must say that I've been approached with my other peer group members. They've confirmed a number of cloud-based providers. The approach at the moment is more about how we can save your capital costs because they are aware that many of the OEMs that we're dealing with, when it comes to maintenance, support. The messaging is always saying that I have a better offering because it's more about the economy of scale. In my environment, it's less when it comes to issues of energy provisioning and issue
s of support. I can guarantee you 24x7 type support, 365 days. Now when you listen to that message, then it becomes important to say that if I were to review my business model, at the moment, what is actually my biggest cost in this whole value chain? Is it operational cost when it comes to my staff, my technical team? Because before I can even decide to go somewhere else, I need to do my situational analysis internally to say, I've got three engineers that are managing my data center. Now, do I
have to redeploy those individuals if I were to take my storage to somewhere else? I find that when you start talking that language, they shy away when it comes to when you say, look, does this mean a job reduction strategy for my team? Because I've got people that have been taking care of my data center. I don't get the feeling that, that's a priority. When you're selling, it's all about your commission. It's about your brand positioning. But the minute you talk about, can I integrate my resou
rces with your strategy? It's a language that is not being engaged. I personally, as Mothibi, have given a challenge to many of those that come to me to say, as much as I believe and I support cloud, how are you going to integrate my resources into our plan? CIOs were no longer just IT people, but we are strategists. So I find that when you start talking strategy, they shy away because you're talking to a salesperson who just think that we just want to buy. I think for me, the approach has funda
mentally changed. I think there's been a far better appreciation of what service providers need to bring to bear to customers. Gone are the days where we put the box first. I think nowadays is really around understanding the business, understanding the outcome that public sector is working towards and really taking a responsibility of being accountable to working with the public sector in enabling them in achieving their desired outcome or in accelerating their aspirations. I often say to people
, as an ICT service provider that has interactions with the government, that is an honor and that is a privilege because we have a very first hand experience on the challenges that we as citizens experience. But also we are in a position where we bring to bear ICT services that could help the government deliver far better services that will improve the citizen experience. However, we can never achieve that if the approach is always led by the technology. At this stage of our journey, one thing i
s clear. South Africa is embracing cloud and hybrid cloud strategies are set to accelerate adoption. I've witnessed the passion and the knowledge that is driving the fourth industrial revolution. Make the choices and make those choices deliberately. There was a certain amount of nervousness that the risk committee would not understand. We're saying that our data is locally resident. However, it's been proven that it's not always the case.

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