In the interview with Manuel Bittorf, Managing Director of rhöncloud GmbH

In an increasingly digitalized world, the demands on the IT infrastructure of municipalities are becoming increasingly complex. To meet these challenges, more and more cities and municipalities are turning to outsourcing their IT systems to external data centers. This development obviously brings with it a variety of advantages that improve day-to-day operations, relieve local IT staff, and elevate IT security to a higher level. While outsourcing IT infrastructure to external data centers offers many benefits, it can also bring potential disadvantages and challenges, which we will explore in an interview with Manuel Bittorf, Managing Director of rhöncloud GmbH. Many municipalities fear dependence on third parties, rising costs, or inadequate service quality. In the following interview, we want to find out whether outsourcing to an external data center can truly deliver the promised scalability, improvement, and relief.

DIGITAL FUTUREmag: Mr. Bittorf, outsourcing IT infrastructure to an external data center is undoubtedly a strategy that currently seems very attractive to many municipalities. In your opinion, what is the biggest driver motivating municipalities to switch to the cloud?

Manuel Bittorf: Municipalities, like companies, are under pressure to keep up with digitalization. In the municipal world, the wheels sometimes turn a little slower, which can be fatal in the fast-paced IT market if they don’t keep up. The issue of IT security is particularly high on the agenda for municipalities. In discussions with town hall leaders, we repeatedly hear that the fear of being paralyzed by a cyberattack is very real. Which town hall leader wants their municipality to make headlines for all the wrong reasons? The topics of flexibility and scalability also play a major role, as municipalities must keep pace with digitalization trends and respond quickly to requirements due to increasing regulations. Municipalities are service providers for citizens, so a modern and up-to-date IT landscape contributes to their attractiveness.

DIGITAL FUTUREmag: Could you briefly explain how outsourcing IT infrastructure to external data centers can impact the efficiency and performance of municipalities?

Manuel Bittorf: The primary goal of outsourcing is usually to increase flexibility, scalability, ensure the highest possible IT security, and future-proofing. By outsourcing IT, municipalities gain maximum freedom to respond to changes in the IT market. Additionally, the internal municipal IT department is relieved of some of its workload. A strategic IT concept consolidates municipal processes. The IT infrastructure also forms the foundation for all downstream digital processes. Once the foundation is solid, the subsequent digital processes can operate efficiently.

DIGITAL FUTUREmag: What advantages do you see in relieving on-site IT staff through the outsourcing of IT services? How can this positively influence day-to-day work in municipalities?

Manuel Bittorf: Municipalities are not spared from the shortage of skilled workers. Added to this is the fact that smaller municipalities often cannot afford to create their own IT positions due to financial constraints. Municipalities with in-house IT departments must, in today's world, take on additional tasks related to the Online Access Act (OZG) and municipal digitalization alongside infrastructure operations and user support, which usually pushes them to their capacity limits. By outsourcing various IT services to an external data center, competencies and tasks are shifted, relieving IT staff. It is important to note that outsourcing does not replace jobs but rather gives IT staff more room to focus on pending digitalization tasks. Close collaboration between the external data center and the in-house IT department is therefore crucial to guide the municipality into the next era.

DIGITAL FUTUREmag: To what extent can external data centers help improve IT security in municipalities? Which security measures are particularly important?

Manuel Bittorf: IT security begins with the selection of a suitable service provider. When choosing a provider, municipalities should pay attention to existing certifications in the field of IT security. The EVB-IT Cloud General Terms and Conditions, for example, mention the three ISO certifications 27001, 27017, and 27018, which focus on IT security, cloud security, and cloud data protection. If the service provider has these certifications, the highest possible level of IT security can be assumed, as the provider must demonstrate a high degree of security measures during its audit. This includes not only technical precautions but also organizational preventative measures.

DIGITAL FUTUREmag: What financial considerations should municipalities take into account when considering outsourcing their IT infrastructure? Which cost factors are typically involved?

Manuel Bittorf: Outsourcing IT infrastructure does not necessarily mean reducing IT costs. However, it does make IT more cost-effective by minimizing downtime risks. Flexible billing models, such as pay-per-use, ensure that only the costs actually incurred are generated. When planning the budget, a certain buffer should therefore be included to account for growth within a fiscal year.

DIGITAL FUTUREmag: How can municipalities ensure that data protection and privacy requirements are met even after outsourcing their IT services? What best practices does rhöncloud GmbH apply in this area?

Manuel Bittorf: For municipalities, data protection and data sovereignty play a crucial role. It is therefore important for the municipality to know where its data is stored. We take an open approach to this issue, giving our customers an insight into our data centres and inviting them to visit. Our certifications also demonstrate that we are able to ensure the highest possible compliance with data protection requirements. Our IT concepts are individually tailored to requirements. We therefore pay particular attention to ensuring that municipal IT systems operate on exclusive and dedicated hardware in the best possible way.

DIGITAL FUTUREmag: What risks and challenges may arise if municipalities outsource their IT infrastructure?

Manuel Bittorf: In my view, the greatest risk for municipalities is not to outsource! Outsourcing IT not only increases the security level, but also offers the opportunity to benefit from new technology standards. Of course, outsourcing must be planned in detail. That is why at rhöncloud we carry out a “Cloud Readiness” check in advance and accompany the outsourcing step by step until the desired result is achieved. We also ensure that employees are involved in the outsourcing process, as they are ultimately the ones who have to work with the IT environment day in, day out.

DIGITAL FUTUREmag: Are there proven practices or recommendations for municipalities that need to manage cultural change when outsourcing their IT services? How can employees be prepared for these changes?

Manuel Bittorf: First and foremost, employees need to understand the concept of digital transformation. Just because a process has worked for 30 years does not mean it has to remain unchanged for the next few years. The municipality must be open to new approaches and willing to embrace them. Outsourcing should ideally be carried out gradually. Our recommendation is therefore to look at existing IT systems and gradually outsource them. The focus should be on those systems that pose a risk to the municipality if they continue to operate or are due for renewal anyway. Over time, further services can then be outsourced.

DIGITAL FUTUREmag: Finally, let’s talk about the most important future trends. What do you see as the key future trends and developments in the area of IT infrastructure outsourcing for municipalities?

Manuel Bittorf: I believe that in the area of IT outsourcing too, the use of artificial intelligence will play a key role in the long term. However, the use of AI requires a solid IT infrastructure, which most municipalities still need to improve and cannot achieve with their own local IT infrastructures. Municipalities should therefore address outsourcing without delay, as an outsourcing process typically takes several months. And we know that during this time, the IT world will have evolved several times over.

DIGITAL FUTUREmag: Thank you very much for the insightful conversation and your time.