1. © Copyright 2011 Hewlett-Packard Development Company, L.P. Patrick Moore Hewlett Packard August 7, 2011 C HANGE I S O PPORTUNITY : A NEW PARADIGM FOR THE STATE CIO

2. © Copyright 2011 Hewlett-Packard Development Company, L.P. AGENDA –Trends –Setting priorities –Rethinking our work –The services model as transformation

3. © Copyright 2011 Hewlett-Packard Development Company, L.P. GLOBAL TRENDS Changing Workforce 2 Technology Advancements Technology Advancements 1 Evolving Business Models 3

4. © Copyright 2011 Hewlett-Packard Development Company, L.P. New ways to serve & new virtual industries created TECHNOLOGICAL ADVANCEMENTS 1.“The data deluge: Businesses, governments and society are only starting to tap its vast potential,” The Economist, Feb. 25, 2010. http://www.economist.com/node/15579717 2.Dataquest Insight: Application Stores; The Revenue Opportunity Beyond the Hype, Stephanie Baghdassarian, Carolina Milanesi; 16 December 2009 3.Juniper Research, http://www.juniperresearch.com/viewpressrelease.php?id=210&pr=181 4. “The Difference Engine: Chattering Objects,” The Economist, Aug. 13, 2010. http://www.economist.com/node/21009505 2005 2010 2013 2014 2020 2015 2011 2012 Create 8x more data 1 130M Enterprise users in Mobile Cloud 3 Mobile apps download > 21B 2 2T devices connect to the internet 4 Mankind created 150 exabytes of digital data 1

5. © Copyright 2011 Hewlett-Packard Development Company, L.P. Government Meet citizen expectations of government Manage economic crisis & provide economic stimulus Ensure secure information sharing Protect citizen information & critical national infrastructure Attract and retain jobs in globalized economic environment Manage the cost of government Design and implementation of citizen- centric service delivery models Ensure delivery of long-term outcomes Continue operations in degraded conditions Meet challenges posed by demographic changes PRIORITIES FACING GLOBAL GOVERNMENTS TODAY

6. © Copyright 2011 Hewlett-Packard Development Company, L.P. THREATS MAGNIFY OUR CHALLENGE  HP examines and stops 1.7 billion spam messages monthly and detects and quarantines 40 million malware annually  HP collects, stores and processes 2.8 billion events daily  Within a recent 30 day period, HP defended against over17 million attacks originating from mainland China alone. That is 7 attacks per second.  Approximately16 million attacks originated from within the United States.  Attack vectors are diverse; targeting a wide range of technologies and services including security products and solutions.  By the time you finish this slide, thousands of attacks have occurred globally.

7. © Copyright 2011 Hewlett-Packard Development Company, L.P. Ripped from the Headlines SECURITY IS TOP OF MIND 7 Ohio State reports massive network security breach Security Breach Reported at Charleston (WV) Area Medical Center; Thousands of Patients Affected Computer Data on 103,000 Va. Adult Ed Students Misplaced CA Department of Public Health reports security breach Saint Louis University staff, students notified of computer breach Massachusetts Data Breach Exposes 139,000 Records 58 Percent of Software Vulnerable to Security Breaches Similar to Google, Department of Defense Cyber Attacks Florida Elections Servers Hacked Again - … stolen data, and released it to the public

8. © Copyright 2011 Hewlett-Packard Development Company, L.P. SETTING PRIORITIES

9. © Copyright 2011 Hewlett-Packard Development Company, L.P. PRIORITIES DIFFER IN PUBLIC & PRIVATE SECTOR Public Sector CIOs 1.Consolidation and optimization 2.Budget and cost control 3.Shared services 4.Cloud computing 5.Healthcare IT 6.Security 7.Broadband and connectivity 8.Governance 9.Legacy modernization 10.Data & information management Private Sector CIOs 1.Aligning IT and business goals 2.Controlling costs 3.Governance and portfolio management 4.Business process redesign 5.Leadership & staff development 6.Marketing IT’s business contribution 7.Rationalizing or centralizing the application portfolio 8.Protecting customer data privacy 9.Scaling IT globally 10.Regulatory compliance

10. © Copyright 2011 Hewlett-Packard Development Company, L.P. STATE GOVERNMENT CHALLENGES Findings from Grant Thornton’s “The 2010 state CIO Survey” –Budgets mostly down; costs steady or rising Two-thirds of CIOs expect lower IT budgets in 2011 through 2013. Some are turning to staff reductions, IT consolidation & shared services to lower costs. –IT governance CIOs are responsible for statewide IT governance but do not have adequate authority –Business models Shared services and managed services –IT procurement reform CIOs give state IT procurement processes a grade of C and Related laws, rules, processes and practices must be modernized and aligned with IT industry standards and best practices. “ A search for lower costs will drive the agendas of many state CIOs for the next few years. With stronger authority and a diligent pursuit of higher value and greater efficiency across institutional boundaries, CIOs will enable IT to help set new standards of government performance. This “new normal” of performance is what citizens and society want and need from their state governments.”

11. © Copyright 2011 Hewlett-Packard Development Company, L.P. RETHINKING OUR WORK

12. © Copyright 2011 Hewlett-Packard Development Company, L.P. HAVE I MENTIONED? –Legislatures do not consider IT a priority, yet –Voters have increasingly personalized interactions with politicians –Voters expect more from government, yet –Legislatures do not consider IT a priority –Funding cycles do not support rapidly changing consumer demands, or –Rapidly changing technologies The model must change

13. © Copyright 2011 Hewlett-Packard Development Company, L.P. CASE STUDY –Risk was the burning platform –The state did not have the capabilities or the resources to make the changes needed in a timely fashion –Sustainability was critical –Needed to break the existing model and replace it with a services framework

14. © Copyright 2011 Hewlett-Packard Development Company, L.P. LESSONS LEARNED –Lead with facts –Bring others onto your burning platform –Engage business leadership within your organization and across the enterprise –Create a view of the future –Communicate, communicate, communicate

15. © Copyright 2011 Hewlett-Packard Development Company, L.P. THE MODEL IS CHANGING YOU SIT IN THE MIDDLE BUILD public, private and hybrid cloud services CONSUME public services securely TRANSFORM legacy infrastructure and applications and processes MANAGE AND SECURE across legacy applications and cloud assets

16. © Copyright 2011 Hewlett-Packard Development Company, L.P. WHAT YOU CAN DO TODAY –Who are the customers you serve? –How engaged are you with the business owners inside your organization? –Where do you sit inside the organization? –Are you reacting or leading? –Have you identified where you want to go?

17. © Copyright 2011 Hewlett-Packard Development Company, L.P. CHANGE IS OPPORTUNITY –Get a seat at the table –Raise your hand and your voice –Look to where the world is going, not to where we once were Our customers are looking at the world through a glass touch screen

18. © Copyright 2011 Hewlett-Packard Development Company, L.P.