Public comment from Red Hat

[krusynth]

Response of Red Hat, Inc. ("Red Hat") to the Update to Data Center Optimization Initiative [^1] ("DCOI")

December 26, 2018

Red Hat appreciates the opportunity to provide comments in response to DCOI, as
consolidation and optimization of data centers is a critical part of a comprehensive IT
modernization strategy.[^2]

Red Hat is a leading provider of open source software solutions, using a
community-powered approach to deliver resilient and high-performing cloud, Linux,
middleware, storage, virtualization and container technologies. Red Hat helps
customers develop cloud-native applications, integrate existing and new IT, and
automate, secure, and manage complex environments. An S&P 500 index member,
Red Hat provides high-quality, trusted and affordable technology solutions that are
found throughout mission-critical systems in the financial, transportation,
telecommunication and government (civilian and defense) sectors in the United States
and around the world. Red Hat is recognized as one of the world's most innovative
companies.[^3]

We commend the OMB's update of the DCOI as a refocus on the goal of optimization
as "the new priority", beyond just consolidation. We have several suggestions to
improve the DCOI Update:

• DCOI should incent ongoing optimization and continued progress.
• Hybrid infrastructure is the reality that DCOI should seek to optimize.
• DCOI should reward efforts to ensure flexibility of computing resources:
  • Include "Containerization" in the "Virtualization" metric;
  • Incent modernization of computing resources to enable portability;
  • Require agencies to mitigate 'lock-in' risks in Strategic Plans.

Optimization is an Unending Journey

DCOI should recognize that optimization is an ongoing evolution, not a destination.[^4]
Optimization is not just about achieving an improvement from the legacy system, but it
is instead about: 1) enabling ongoing efficiency improvements; and 2) protecting against
future inefficiencies that may emerge.

DCOI Should Incent Optimization of Hybrid Infrastructure

DCOI should follow Cloud Smart[^5] in its recognition of the reality and efficacy of hybrid
infrastructure -- innovatively using a mix of of server closets, data centers, private
shared clouds and multiple public clouds.

Data centers should be optimized for this reality and to make the most of invested IT
resources. Agencies must be able to manage and move workloads among various
environments -- to achieve improved citizen services and cost efficiency. Migration (or
remigration) of workloads and data between data centers, to and across clouds, or even
back on-premises should be envisioned in a DCOI Strategic Plan.

DCOI Should Incent Portability for Continual Optimization

DCOI should measure and reward Containerization, along with Virtualization

Though virtualization is meant to improve mobility and flexibility of workloads,
containerization further improves the ability of an agency to find the most efficient use
and location for the resources. The focus on virtualization technology alone is too
narrow. While virtualization of a server can improve its efficiency, containerization and
related technologies enable the scalability and elasticity that are the proper measures of
optimization.

DCOI should measure and reward modernization of computing resources for

interoperability and portability - as readiness for ongoing optimization

So-called 'lift and shift' of applications from virtual servers into the cloud, rather than
investing in modernizing applications may cause increased costs in the long run as the
computing resources required in the cloud to run legacy applications could result in
higher operating costs than if those applications were modernized.
Even where immediate consolidation or migration does not make sense ( e.g. , because
of sunk capital costs, with only marginal short term operational benefit from migration),
modernization of resources should be measured and rewarded. Portable, modern
applications today will lead to more efficient use of resources and even lower cloud
operating costs if/when they are migrated to the cloud in the future.

Agencies' DCOI Strategic Plans should include cloud 'exit strategies'

Cloud services are presumed to operate more efficiently than legacy data centers
because of economies of scale and elasticity, but DCOI should reward enablement of
interoperability, standardization, portability and flexibility -- even for workloads moved to
the cloud -- to achieve this objective.

Hastily chasing the promise of cloud's efficiency and elasticity can instead pave the way
for future inflexibility and high cost -- if the migration leads to lock-in. Cloud providers
have a natural incentive to make it easy to migrate to their cloud, but most public cloud
providers do not have incentives to make it easy for customers to leave. DCOI should
measure and incent implementation of technologies and practices that prevent this
future cloud lock-in, and DCOI Strategic Plans should describe cloud exit strategies to
mitigate the risk of lock-in.

By rewarding portability and flexibility, DCOI can discourage unwise migrations that
otherwise would: limit access to functionality improvements; preclude security and
practical benefits of remigrating resources for different use cases; or create
opportunities for cloud providers to charge monopoly rents in the future.

Conclusion

Thank you for allowing Red Hat to provide input to DCOI. We welcome the opportunity
to work with OMB to further refine DCOI to enable the many benefits it can provide. The
priority goal should be an unending journey toward optimization of hybrid infrastructure,
through incentives to modernize computing resources to make them flexible and
portable -- mitigating the risks and future costs of lock-in.

[^1] https://datacenters.cio.gov/policy/

[^2] See "Report to the President on IT Modernization", 2017 https://itmodernization.cio.gov/

[^3] See Forbes , "The World's Most Innovative Companies", 2017, found at: https://www.forbes.com/companies/red-hat/ .

[^4] See https://gcn.com/articles/2018/11/09/process-digital-transformation.aspx

[^5] https://cloud.cio.gov/strategy/#cloud-smart