DEPUTY SECRETARY OF DEFENSE 1010 DEFENSE PENTAGON WASHINGTON, DC 20301-1010 SEP 1 3 2017 MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS CHAIRMAN OF THE JOINT CHIEFS OF STAFF UNDER SECRETARIES OF DEFENSE DEPUTY CHIEF MANAGEMENT OFFICER CHIEF, NATIONAL GUARD BUREAU GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE DIRECTOR OF COST ASSESSMENT AND PROGRAM EVALUATION INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE DIRECTOR OF OPERATIONAL TEST AND EVALUATION CHIEF INFORMATION OFFICER OF THE DEPARTMENT OF DEFENSE ASSISTANT SECRETARY OF DEFENSE FOR LEGISLATIVE AFFAIRS ASSISTANT TO THE SECRETARY OF DEFENSE FOR PUBLIC AFFAIRS DIRECTOR OF NET ASSESSMENT DIRECTOR, STRATEGIC CAPABILITIES OFFICE DIRECTORS OF DEFENSE AGENCIES DIRECTORS OF DOD FIELD ACTIVITIES SUBJECT: Accelerating Enterprise Cloud Adoption Last month the Secretary of Defense visited Seattle, Washington, and Palo Alto, California, two epicenters of innovation in our country. That trip re?ected several realities: technologies in areas like data infrastructure and management, cybersecurity, and machine learning are changing the character of war; (2) commercial companies are pioneering technologies in these areas; and (3) the pace of innovation is extremely rapid. The Secretary is determined to prevent any potential adversary of the United States from surprising us or overtaking our military advantage. In that regard, I am directing aggressive steps to establish a culture of experimentation, adaptation, and risk-taking; to ensure we are employing emerging technologies to meet warfighter needs; and to increase speed and agility in technology development and procurement. While technological modernization has many dimensions, I believe accelerating the DoD?s adoption of cloud computing technologies is critical to . maintaining our military?s technological advantage. To that end, I am directing the following: The Department will establish a Cloud Executive Steering Group (CESG) to devise and oversee the execution of a strategy to accelerate the adoption of cloud architectures and cloud services, focusing on commercial solutions. The CESG will report directly to the BSD. It will be chaired by Ellen Lord, Under Secretary of Defense for Acquisition, Technology, and Logistics (USD The standing voting members of the CESG are Dr. Will Roper, Director of the Strategic Capabilities Of?ce Raj Shah, Managing Partner of the Defense Innovation Unit Experimental Chris Director of the Defense Digital Service and Joshua Marcuse, Executive Director of the Defense Innovation Board (DIB). John *3 ll Ill I Bergin, Business Technology Officer for the Chief Information Of?cer (C10), will serve as an advisor to the CESG. This cloud adoption initiative will occur in two phases. During phase one, will use a tailored acquisition process to acquire a modern enterprise cloud services solution that can support unclassi?ed, secret, and top secret information. This cloud services contract will also include, at a minimum, in-depth technical analysis of the current environment, the necessary cloud migration support, change management, and training. I am tasking the Director of DDS to lead phase one. During phase two, the CESG will rapidly transition select DOD Components or agencies to the acquired cloud solution, and, to the maximum extent possible, operationalize its mission using the security, software, and machine learning capabilities that cloud technology provides. The CESG will brief the DSD on a bi?weekly basis on its progress in accomplishing the following actions: 0 Investigation of the results of existing cloud migration efforts; 0 Establishment of adequate funding for phase two and beyond; 0 Identi?cation of a program of?ce and contracting activity that will support DDS for phase one and administer the contract in phase two; 0 Drafting of an acquisition strategy for phase one; 0 Awarding the phase one contract; 0 Identi?cation of phase two candidates; 0 Identi?cation of major risks with corresponding mitigation strategies for phase two; and 0 Project management plan of execution with schedule and reporting metrics on progress. The CESG will deliver a formal report outlining the Department?s action plan and progress toward the action items by November 15, 2017. This effort is a Department priority. Speed and security are of the essence. I expect all of?ces and personnel to provide all reasonable support necessary to make rapid enterprise-wide cloud adoption a reality.