WEBVTT

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Welcome to the DOW ESI video series.

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In this tutorial we will provide a high
level overview of cloud computing and

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software as a service, also known as SaaS.

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Let's take a look.

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Although SaaS and cloud computing are
closely related,

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they are not the same thing.

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Think of cloud computing as the
technology that hosts software,

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while SaaS is how software companies
deliver that software to users via the

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cloud.

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In the government,
the authoritative document for

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understanding cloud and SaaS is NIST
Publication 800-145.

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NIST stands for the National Institute of
Standards and Technology,

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while other NIST publications provide
guidance on topics like security and

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access control.

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800-145 defines the core characteristics
of a cloud, which are on demand,

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self-service, broad network access,
resource pooling, rapid elasticity,

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and measured service.

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Some cloud characteristics describe the
infrastructure behind the scenes,

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while others describe the benefits users
experience.

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SaaS is one way those benefits are
delivered,

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enabling consumers to access and use the
provider hosted applications as defined

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by NIST.

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Cloud and SaaS are not newly created
technologies.

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They evolved from three separate tracks.

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One track describes the evolution of
software license models from perpetual to

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term licenses with subscriptions.

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The second track shows the evolution of
connectivity,

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culminating with the Internet.

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The third track details the evolution of
hosting models,

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which began with servers and networks,
then expanded to include additional

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services and infrastructure.

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These 3 tracks then converged in the late
1990s, resulting in cloud and SaaS.

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Since then,
DOW guidance and strategy have continued

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to evolve, establishing governance,
standardized security requirements,

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modernization initiatives to support
artificial intelligence,

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and enterprise wide approaches to cloud
adoption and migration initiatives.

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The NIST document also describes 4 basic
types of cloud deployment models.

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They are Public, Private, Hybrid,
and Community.

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Public Clouds are open to the general
public.

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They can be shared by any number of
unrelated entities.

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Private Clouds are created for the
exclusive use of a single organization or

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entity.

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A Hybrid Cloud consists of a combination
of Private Cloud and Public Cloud

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elements.

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Community Clouds are shared by multiple
entities with shared concerns.

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The cloud itself might be Public, Private,
or Hybrid.

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In November 2010,
the Office of Management and Budget or

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OMB,
issued guidance encouraging the use of

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cloud resources.

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In December 2010,
the DOW issued guidance that became known

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as Cloud First.

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In December 2011,
GSA issued a set of government standards

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for authorizing and approving use of
cloud offerings.

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The program is called FedRAMP,
which stands for Federal Risk and

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Authorization Management Program.

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Note while FedRAMP is a necessary
approval step for cloud agreements,

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it may not be sufficient approval in your
agency.

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In September 2018,
the Federal CIO released the Cloud Smart

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Strategy,
shifting the mandate from moving

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everything to the cloud to a needs-based
approach that focuses on security,

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procurement, and workforce.

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In April 2025,
the DOW released its Fiscal year

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2025-2026 Software Modernization
Implementation Plan with the three main

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goals of accelerating the enterprise
cloud,

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establishing a department wide software
factory ecosystem,

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and transforming internal processes for
speed and resilience.

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The DOW is continually evolving its AI
strategy to support these goals.

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The five main benefits of using cloud
infrastructure and SaaS licenses are cost

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reduction, speed and flexibility,
greater connectivity and mobility,

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heightened security,
and easier collaboration and integration.

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ESI encourages you to adopt an analytical
approach when evaluating cloud and SaaS

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proposals to identify the provider that
best meets your user requirements.

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Here are a few sample questions to
consider.

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Which subscription term best meets your
requirements?

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Do you have any control over the timing
of updates or enhancements?

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Can you access the necessary
customizations?

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How does the vendor meet government
security standards?

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These and other questions can help you
validate whether you will receive the

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expected benefits.

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The following are especially important in
cloud and SaaS agreements.

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Data rights and responsibilities,
ownership of customizations or

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enhancements, security covenants,
termination and Service Level Agreements,

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or SLAs.

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SLAs become even more important in cloud
and SaaS agreements because you don't

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have custody or direct control over the
resources,

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you're completely dependent on the vendor.

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SLAs should be written to define response
times for reported defects,

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the time to fix reported defects,
and system availability.

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Please keep in mind that this tutorial
serves as a high level overview of cloud

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and SaaS offerings and that these
services are dynamic,

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ever changing topics.

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For the latest information on cloud
computing and SaaS,

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please visit the ESI website for white
papers, articles, policy updates,

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and other resources.

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Thank you for viewing this tutorial.

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Please visit the DOW ESI website For more
information and to watch other videos in

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this series.

