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?

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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

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Local Disk Storage Storage Area Network

Trends in Cloud Storage Solutions

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Cloud Hardware – Logical Servers

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Logical ServersDedicated Servers

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Cloud Hardware – Grid Computing

Grid ServerDedicated Server

Cloud Software – Virtual Applications

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Enterprise Service Bus (ESB)

ClaimsApp

MembersApp

Time Entry

Sales ForceAutomation

ClaimsMembersTime Entry

Sales ForceAutomation

Cloud Software – Software Services

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Enterprise Service Bus (ESB)

ExchangeApp

ClaimsApp

DemographicsVendor

Cloud Resources – Services

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Full Time Employees

Temp Contractors

Outsourced Resources

• Call Centers• Network Support• Shredding• Food Services• Immigration

Cloud Solutions Can Reduce Expenses

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Patients

Providers

Payers

Premiums

Paym

entsServices

ExpensesProfits

ExpensesProfits

CareWellness

Local vs. Cloud Solutions

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Cloud SolutionsCloud SolutionsLocal SolutionsLocal 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 1996. It was updated this year (A.K.A. “HIPAA 2.0”). The updates go into effect yesterday - September 23rd.

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).

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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 hype14