The Tech Tightrope: How the U.S. State & Local Agencies Strive to Balance between Innovation and Budget
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State and local government (SLG) agencies are reeling from a combination of unbudgeted COVID-related expenses and reduced tax revenue caused by unemployment and business closures. Any way you look at it, the situation is challenging. To understand how SLG agencies are coping, Google Cloud collaborated with MeriTalk to survey 200 SLG IT and program managers, uncovering some revealing trends in SLG technology innovation. Unsurprisingly, approximately 84% of SLG organizations report making budgetary tradeoffs to bridge funding the gaps the ongoing pandemic has created.
However, researchers discovered a silver lining: The pandemic has also been a catalyst to modernize the legacy infrastructure in states and cities. The majority of survey respondents (88%) reported that their agency made greater modernization progress this past year than in the prior 10 years.
Walking a tightrope between innovation and budget pressure
According to 89% of state and local leaders, now is the time to invest in technology modernization. But 80% are experiencing a funding gap due to unbudgeted expenses related to the pandemic and declining tax revenue, which makes finding that balance between innovation and budget a serious challenge.
Some agencies are achieving the impossible, though. For example, the City of Pittsburgh Department of Innovation and Performance is working with Google Cloud to migrate and modernize its legacy IT infrastructure. By decommissioning their data center and moving to Google Cloud, the city can build new data analytics tools to drive smart city initiatives and create entirely new applications to improve digital service delivery for its residents. As a result, the city will save costs, abandon its brittle legacy IT structure, and create a cloud-based technology platform for the future—becoming the region’s leader in cloud-native software development.
Google Cloud is enabling the city’s IT team by curating and delivering our certification training at no cost. The program includes live training sessions as well as on-demand training.
Bridging funding gaps
In their drive to modernization, many SLG leaders are turning to grants as an important source of funding. Approximately 84% of those surveyed report making tradeoffs to bridge funding gaps, such as moving resources away from operations and maintenance (37%), increasing reliance on pandemic-related funding (31%), and delaying internal modernization efforts to enable remote work for employees (29%). One way that states are dealing with this tension between budget gaps and the need for innovation is to turn to Google Cloud for cost savings and improved capabilities.
For example, Google Cloud is helping the State of West Virginia innovate and enhance IT security despite decreased state funding. The state entered a multi-year agreement to ensure full access to enterprise-level Google Workspace capabilities for 25,000 state employees, keeping the state at the forefront of technology advancements at a projected cost savings of $11.5 million.
Similarly, Google Cloud helped build the Rhode Island Virtual Career Center to help the state’s constituents get back to work. Using familiar productivity tools within Google Workspace, employees can access new career opportunities quickly, while employers can reach more candidates. Skipper, the CareerCompass RI bot, uses data and machine learning to connect Rhode Islanders with potential new career paths and reskilling opportunities.
Enhancing services
Google Cloud is also helping agencies enhance services, including working with the State of Illinois to get unemployment funding to constituents in need.The state is using Contact Center AI to rapidly deploy virtual agents that help more than 1 million out of work citizens file unemployment claims faster. Capable of engaging in human-like conversations, these intelligent agents provide constituents with 24/7 access and enable government employees to focus on more complex, mission-critical tasks—such as combating fraud. In summer 2020, the virtual agents handled more than 140,000 phone and web inquiries per day, including 40,000 after-hours calls every night. The state anticipates an estimated annual savings of $100 million from the solution, which was deployed in just two weeks.
Working with Google, Ohio also uncovered $2 billion in fraudulent unemployment claims. We will continue to partner with the state to find fraudulent claims, and prioritize the processing of legitimate claims.
Focusing on cybersecurity
Despite expanding security threats topping NASCIO’s list of 2021 State CIO priorities, more than one in three IT managers (35%) say their organization reduces security measures to expedite timelines. Partnering with Google Cloud has enabled many agencies to enhance their security measures while modernizing and staying within budget, investing in support for remote work devices, digital services for residents, and cybersecurity.
NYC Cyber Command works with city agencies to ensure systems are designed, built, and operated in a highly secure manner. NYC3 followed a cloud-first strategy using the Google Cloud Platform. The virtual operations demanded by the pandemic have increased the importance of security and compliance in SLG. Google Cloud is committed to act as a security transformation partner and be the trusted cloud for public sector agencies.
Finally, to strengthen public and private partnerships, SLG organizations told MeriTalk that they need vendor partners to support modernization efforts for flexibility and collaboration (46%), need innovation-focused leadership groups to help balance technology needs with budget constraints (41%), and they expect significant returns on investments in cloud computing (38%), and data management/analytics (33%).
Google Cloud is helping SLG customers across the country invest in innovation to walk the tech tightrope—balancing innovation and budgets—and helping to build a more resilient future. Visit the State and Local Government solutions page to learn more.
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A Path to Predictable Cloud Costs
Google Cloud’s cost management tools provide the visibility, accountability, control, and intelligence you need so that you can scale your business in the cloud with confidence. Tailored to meet the needs of organizations of all sizes, these tools help reduce complexity and increase the predictability of your cloud costs.
These tools help you gain visibility into your current and forecasted costs, identify cost drivers, and leverage key insights to confidently plan, manage, and optimize your costs with built-in reporting and customizable dashboards.
You can promote a culture of accountability for costs across your organization and better understand your return on cloud investments with flexible options for organizing resources and allocating costs to departments and teams.
Achieving Scale, Intelligence and Speed with Google Cloud VMWare Engine for Retailers
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COVID-19 drastically changed the way consumers purchased goods and services, but these changes merely accelerated trends that were well underway. While many retailers were caught off guard with the suddenness of the transition, most are stepping up their cloud transformation initiatives in response to changes in consumer behavior and expectations — changes that are likely to be permanent. These retailers realize they need to migrate on-premises workloads to the cloud to achieve the speed and responsiveness required to better promote their products, expand customer support, predict demand levels, and meet ever-rising customer expectations. The trick will be to do so as quickly, efficiently and cost-effectively as possible while minimizing disruption. By leveraging solutions such as Google Cloud VMware Engine, retailers can move their on-premises applications to the cloud, where they can achieve the scale, intelligence, and speed required to stay relevant and competitive.
Gaining the cloud advantage
In a recent survey from MIT1, 75% of retail IT leaders said the pandemic had accelerated their digital transformation projects to improve business processes, increase operational efficiency, and enhance customer experience. Cloud computing is at the heart of digital transformation. It gives retailers the scale, analytical power, and agility they need to respond to the increasing pace of change. By migrating IT resources to the cloud, retailers can develop and deploy innovative mobile apps, virtualize costly services such as call centers, automate business processes, and analyze massive volumes of data to improve the speed and accuracy of demand forecasts. Running applications in the cloud enables business managers and IT departments to replicate the functions of their on-premises system without changes, so that employees, customers, and partners can access those systems from anywhere and at any time. Operating in the cloud also allows retailers to avoid many of the limitations of legacy systems that may have been holding them back.
These are just some of the capabilities that retailers gain when they migrate their applications and data to the cloud:
- Build new revenue streams with omnichannel shopping that runs on the speed and reliability of cloud infrastructure.
- Leverage artificial intelligence and data analytics available in the cloud. Use Google Cloud’s BigQuery to run AI-powered forecasting models to predict demand and plan sales, orders, and other activities with greater precision. Deploy Recommendations AI, to deliver highly personalized product recommendations to your customers at scale.
- Improve operational efficiency with a highly scalable and elastic environment that lets you pay for the compute and storage you need instead of making major investments in physical infrastructure up front.
- Improve customer experience by analyzing behavior and other data to offer customers what they want, when they want it; build personalized mobile and web applications and provide real-time information to customer service and floor staff so they can address customer concerns quickly and effectively.
- Reduce costs by deploying AI-powered agents to help customers solve straightforward issues on their own and automate mundane back-office processes to let your team focus on more value-add work.
- Safeguard customer data with Google Cloud’s multi-layer, secure-by-design infrastructure, built-in protection, and global network.
- Improve control with integrated cloud management tools that enable IT staff to oversee the whole stack — across on-premises systems and cloud in a single location.
Easy lift and shift with Google Cloud VMware Engine
Retailers do not need to deploy entirely new applications to take advantage of Google Cloud. Rather, they can move their back-office applications and other business systems into the cloud as-is, without the need to rewrite a line of code.
Google Cloud VMware Engine enables businesses to migrate or extend their on-premises workloads and applications seamlessly to the cloud. This means that IT managers can move their existing applications into the cloud in just a few minutes without having to rebuild them. From there, retailers can run their existing applications — including point-of-sale (POS) systems, virtual desktops, and other devices — just as they did when those applications were installed in the store or office.
Google Cloud VMware Engine creates a software-defined infrastructure that natively runs VMware workloads without any changes to current tools. That infrastructure includes computing power, storage, network connections, and security services that are dedicated to the individual customer.
Cloud infrastructure for new retail realities
COVID-19 was a wakeup call for many retailers who realized they needed to energize their transformation initiatives in response to permanent shifts in consumer behavior and expectations. Essential to this transformation is getting to the cloud as quickly, efficiently, and cost-effectively as possible, without creating costly disruptions or downtime. Google Cloud VMware Engine lets retailers do exactly that with a straightforward lift-and-shift process that takes just a few minutes. Once in the cloud, retailers can take advantage of the many capabilities Google Cloud offers, including sophisticated data analytics, improved customer experience, enterprise-grade security, and reduced cost.
Read our retail white paper to learn more about how easy it is to migrate your retail IT systems to the cloud with Google Cloud VMware Engine
1. MIT Technology Review Insights’ survey on COVID-19 and its impact on technology, in association with VMware; N=100 Retail Senior Technology and Business leaders Worldwide.
Tencent Africa Cuts Cost and Improves Stability with Google Cloud
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About Tencent Africa
Tencent Africa is dedicated to making every day easier for customers and brands. Opening its doors in 2013 as WeChat Africa, the company is responsible for WeChat operations on the continent.
About Siatik Systems
Founded in 2008, South Africa-based Siatik Systems is a leading Google Cloud Platform solutions provider with a focus on cloud integration services, information technology consulting services, and bespoke software engineering solutions.
Google Cloud Results
- Reduced latency in its service from 180 to 35 milliseconds with powerful hardware and a fast, global network from Google Cloud Platform
- Cut costs with per-minute billing and sustained use discounts
- Increased the speed of provisioning new servers with easy-to-use interface of Google Compute Engine
As one of Africa’s leading technology companies, Tencent Africa is responsible for WeChat operations on the continent. WeChat Africa has successfully launched a number of features including the WeChat Wallet, a mobile payment service for smartphones, which enables seamless and secure transactions for friends to send money to one another, cash money out at Standard Bank ATMs, use at accredited retailers, and make purchases from any SnapScan merchant in South Africa. Under the new name, Tencent Africa recently launched two new mobile products, JOOX, a mobile music streaming application, and VOOV, a social live streaming application.
When China’s Tencent brought its hugely popular instant messaging service WeChat to South Africa, it faced a near saturated market. To gain traction, Tencent Africa had to showcase WeChat’s versatility as a platform that goes far beyond just instant messaging. Engaging with local financial partners helped WeChat launch a WeChat Wallet to facilitate electronic payments, while providing exclusive content from South African cultural figures helped bring the platform extra publicity.
As WeChat started to grow its customer base, its on-premises infrastructure was stretched beyond its limits and the company looked for a cloud-based solution. After evaluating all its options, Tencent Africa found Google Cloud Platform best suited its needs.
“We’re a growing business and constantly upgrading our infrastructure. Getting new servers was becoming quite expensive so we wanted a cloud-based solution to reduce costs,” says Christoff Albertyn, Head of Technology at Tencent Africa. “When we did some latency testing, Google came out on top, so it made sense to go with them. Everybody loves Google, it’s a great brand. Just knowing a company like Google is behind it gives you peace of mind.”
Building a platform to scale
Instant messaging services need a stable infrastructure, the ability to scale at speed, and lightning fast performance. When Tencent Africa built an Official Accounts API to run a number of services on WeChat, to help companies engage with users on the platform, latency was its main concern. The Official Accounts services had to deliver replies over WeChat in under five seconds or the connection would drop.
Between the API on-premises servers in South Africa and WeChat’s main servers in China, Tencent Africa’s services regularly hit the limits of the permissible response time. In addition, by 2015, WeChat was starting to garner more customers across South Africa and Tencent Africa had to provision more servers. The on-premises servers were simply being asked to do too much, and expansion was proving expensive, so the company looked for a cloud-based solution.
Before committing to anything, Tencent Services did a thorough latency test of several cloud-based solutions. Google Cloud Platform came top. Tencent also engaged the help of Siatik, a Google Partner, to gauge what solutions best fit the company’s needs and help implement them. Siatik customers span both the public and private sectors and its consultants are regularly engaged in the health care, education, financial and technology industries. In order to provide leading technology solutions, it partners with industry leaders, such as Google, to provide best-of-breed infrastructure and cloud platform solutions to its customers.
“Siatik was a great partner to work with,” says Christoff. “Any questions I had, I could just pick up the phone and whatever it was they’d help me out. They were also able to get some of the team from Google to come to our offices and see how we worked, which was really good.”
With a simple, clean interface in Google Compute Engine, the company was able to spin up virtual instances very quickly and begin migrating its stack to Google. When it became more comfortable with Google Cloud Platform features, Tencent used Google Cloud SQL and Google BigQuery to manage its data streams, and Google Cloud Storage to store them safely.
From day one, it was very smooth. The interface was amazing—Google must have spent a long time perfecting it because it was so easy to use says Christoff. “I set up the first virtual machine in no time without any struggles.”
In addition to powerful hardware from Google Compute Engine, the fast, global network from Google helped to speed up performance. With the infrastructure ported over to Google, Tencent also brought in G Suite as an office productivity solution, which eased the pressure on its servers even more. Throughout the process, Siatik were on hand to advise and provide technical guidance whenever any issues came up.
What I really like is how quickly you can spin servers up. There’s no messing about and the interface is really easy to use, says Christoff. “You can have a virtual machine running in just a few minutes. It’s very impressive.”
Cutting costs, raising expectations
Google Cloud Platform helped Tencent Africa to slash its latency. Before the migration, pings to the Chinese servers and back would regularly take 180 milliseconds. Afterwards, this fell to around 35 milliseconds, helping to ensure smooth service to Tencent’s South African customers. Google offers innovative pricing, such as per-minute billing and sustained use discounts, which helped significantly cut server costs compared to an equivalent on-premises solution.
As its customer base grew, and Tencent Africa began to release new products, the ease of use of Google Compute Engine meant that spinning up new servers took minutes instead of hours and allowed the company to scale up and down at speed. Exploring products such as Kubernetes for rapid deployment or TensorFlow for machine learning, Tencent Africa continues to evolve and experiment with new products to keep WeChat a growing success in South Africa.
“Initially, we just used per-minute billing, but when I saw how much work we were doing with Google BigQuery and Google Cloud SQL, we started to generate sustained-use discounts, which helped save us a lot of money,” says Christoff. “The other great thing is, Google Cloud Platform monitors how you’re using it and tells you what else you can do to reduce costs.”
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The Inside Story of How Home Depot Migrated to Google BigQuery From an On-prem DW Solution
In the media, you will often hear story of how born-in-the-cloud companies manage with massive infrastructure.
But it is one thing is to be a startup, and build infrastructure with bespoke requirements. And quite another to have a complex, multinational organization with online, with mobile, with brick-and-mortar presence, and hundreds of thousands of SKUs and professional services, and many, many years of technology, innovation, and really smart engineers.
This is the second story. The story of how The Home Depot, the number-one home improvement retailer in the US pulled of that feat.
The Home Depot has over 2,200 stores, over 4 lakh associates, and 2017 revenues of over a $100 billion.
In this video, Rick Ramaker, technology director, data analytics at The Home Depot, and Kevin Scholz, distinguished engineer, The Home Depot, talk about how the company transformed and modernised its data warehousing, the challenges they faced and the benefits they accrued from the project.
It’s a fascinating watch!
A New Milestone: Istio Comes Closer to Cloud-native Ecosystem
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Today we are excited to announce that Google and the Istio Steering Committee have submitted the Istio project for consideration as an incubating project within the Cloud Native Computing Foundation (CNCF). This is a significant milestone for Istio and its community, and we are thrilled to reach this next step in the evolution of the project.
Google and Istio
Google originated the Istio project, which alongside Kubernetes and Knative, is a critical part of cloud-native infrastructure. The Istio project has found success and maturity in its current model — being adopted by hundreds of organizations and bringing in over 4,000 developers for IstioCon.
For over 20 years, Google has helped shape the future of computing with its open source contributions and has invested deeply to unlock innovation for our customers. Istio extends Kubernetes to establish a programmable, application-aware network using the Envoy service proxy. Istio works with both Kubernetes-based and traditional workloads, and brings standard, universal traffic management, telemetry, and security to complex deployments. Finding a home in the CNCF brings Istio closer to the cloud-native ecosystem and will foster continuing open innovation.
The Istio journey
We started to develop Istio in partnership with teams at IBM and Lyft in 2016 based on patterns that were being used to connect Google production applications. Google’s security focus complemented the traffic management focus of an open-source project published by IBM, and those two teams decided to collaborate on Istio directly. Istio was launched “fully formed” in May 2017, with the v0.1 release featuring sidecar-powered traffic control, observability and policy features — the things that today define a service mesh. Istio has been open source from the beginning, and has a governance structure that promotes continuous contribution and project engagement.
By the release of v0.3 a few months later there were users trusting it in production, seeing immediate benefits from its powerful features. The project reached v1.0 in July 2018, and was being used at scale by eBay and The Weather Company. Google led a major re-architecture with the release of v1.5, unifying the control plane into a single service. This change, based on user feedback, reduced administrative overhead, as was later written about in the IEEE Software journal. We also greatly simplified extensibility of the mesh by building support for WebAssembly plugins into Envoy.
Istio is now offered as a managed or hosted service by over 20 providers, including Anthos Service Mesh, a suite of tools that helps you monitor and manage a reliable service mesh on-premises or on Google Cloud.
The future of Istio as a project in the CNCF
At Google, we believe that using open source comes with a responsibility to contribute, sustain, and improve the ecosystem, and we are committed to improving critical cloud-native projects on behalf of our customers and the community at large. Google has made over half of all contributions to Istio and two-thirds of the commits, as measured by the CNCF DevStats.1 After deciding to adopt Envoy for Istio, Google rose to be Envoy’s number-one contributor.2
Istio is the last major component of organizations’ Kubernetes ecosystem to sit outside of the CNCF, and its APIs are well-aligned to Kubernetes. On the heels of our recent donation of Knative to the CNCF, acceptance of Istio will complete our cloud-native stack under the auspices of the foundation, and bring Istio closer to the Kubernetes project. Joining the CNCF also makes it easier for contributors and customers to demonstrate support and governance in line with the standards of other critical cloud-native projects, and we are excited to help support the growth and adoption of the project as a result.
Istio is key to the future of Google Cloud and if the project is accepted, Google will continue to strategically invest in Istio as a key maintainer and through ongoing investment in engineering for upstream contributions.
1. https://istio.teststats.cncf.io/d/5/companies-table?orgId=1
2. https://envoy.devstats.cncf.io/d/5/companies-table?orgId=1
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