Cloud Computing The coming storm

Bio  Robert Fox - Data Architect, Arkansas Blue Cross Blue Shield  18 years of data architecture and warehousing experience in the finance, telecom, and health insurance industries.

What is a cloud? 3 Cloud computing: A way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities. [Information World] Cloud computing: A way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities. [Information World]

Cloud Hardware Example - SAN 4 Local Disk Storage Storage Area Network

Trends in Cloud Storage Solutions 5

Cloud Hardware – Logical Servers 6 Logical Servers Dedicated Servers

7 Cloud Hardware – Grid Computing Grid Server Dedicated Server

Cloud Software – Virtual Applications 8 Enterprise Service Bus (ESB) Claims App Members App Time Entry Sales Force Automation ClaimsMembers Time Entry Sales Force Automation

Cloud Software – Software Services 9 Enterprise Service Bus (ESB) Exchange App Claims App Demographics Vendor

Cloud Resources – Services 10 Full Time Employees Temp Contractors Outsourced Resources Call Centers Network Support Shredding Food Services Immigration

Cloud Solutions Can Reduce Expenses 11 Patients Providers Payers Premiums Payments Services Expenses Profits Expenses Profits Care Wellness

Local vs. Cloud Solutions 12 Cloud Solutions Local Solutions Complete solution under your control No risk introduced from “partners” Easily customizable Complete transparency Dedicated Equipment Performance No potential for “mixing” data with other clients Low cost after initial investment Complete solution under your control No risk introduced from “partners” Easily customizable Complete transparency Dedicated Equipment Performance No potential for “mixing” data with other clients Low cost after initial investment Scalable small or large company phased adoption Economical Through competition Through economies of scale (on demand) Shift from upfront capital investment to pay-as-you-go operational expense Lets you focus on your business Shared legal risk Portability - Disaster Recovery Scalable small or large company phased adoption Economical Through competition Through economies of scale (on demand) Shift from upfront capital investment to pay-as-you-go operational expense Lets you focus on your business Shared legal risk Portability - Disaster Recovery

Security – HIPAA “Final Rule”  HIPAA originated in It was updated this year (A.K.A. “HIPAA 2.0”). The updates go into effect yesterday - September 23 rd.  New documentation includes 1,358 occurrences of the term “Business Associate” - any entity with access to PII/PHI data other than the originator.  HIPAA Final Rule defines the legal obligations of these Business Associates, including an agreement for them to sign.  There are Legal and Financial obligations in both directions for failure to have your Business Associates sign the HIPAA Final Rule Business Associate Agreement (BAA). 13 If you use a cloud service, it should be your Business Associate. If they refuse to sign a Business Associate Agreement, don’t use the cloud service.” David Holtzman, Information Privacy Division, Office for Civil Rights (Enforcement arm of Health and Human Services)

Recommendations  Decide what problem you are trying to fix  Compliance?  Mobile Workforce?  Scalability?  Disaster Recovery?  Expenses?  Make enterprise decisions, not departmental ones.  Adopt enterprise Services Oriented Architecture (SOA)  Include the Business, IT, and Legal in the decision  Buy value, not hype 14