Why EA's must drive cloud strategy

EA’s Must Drive Cloud Strategy & Planning

Mike Walker | Enterprise Strategy and Architecture | Microsoft Corp.

http://www.MikeTheArchitect.com

Open Group Conference San Francisco

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Why Enterprise Architecture Must drive Cloud Strategy &

Planning

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Who am I?

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Today'sSession

State of Affairs

Why Enterprise Architects

End to End MethodHow Microsoft builds Cloud Strategies

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What to Expect

1End to End overview of the Cloud Strategy& Planning (CSP) Framework

2No detailed demos will shown. Expect detailed modules to cover these aspects

3Why CSP is important to you and your engagements

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Cloud is Here

$112 Billion to be Invested

Gartner estimates, over the next five years,

enterprises will spend $112 billion

cumulatively on cloud services

Cloud overtaking On-Premises

91% of IT Professionals anticipate in 5 years cloud will overtake on-premises computing

Changing the IT Business

Over 80% of IT leaders indicate that their staff will need to develop new skills.

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How is this

different from all other technologies

?

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Pervasive and Deep Impacts

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The Business Demands always on capacity

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We’ve been down this Road before…

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“50% of all Technology

Initiatives are a Waste of

money…. “

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“50% of all Technology

Initiatives are a Waste of

money…. “31% of all projects are cancelled before completion

88% of projects run over schedule, over budget or both

52.7% of projects will cost 189% of their original estimates

Average time overrun is 222% of original estimates

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Pressures on the CIO

Disruption in Technology Enablement

Cloud is Different

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Who do we turn to?

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Why the EA

EA is at the heart, a comprehensive view of IT and the business strategy. This allows the business leaders and the CIO to see the impacts of change, decisions and opportunities.

- David Wallace, CIO for the City of Toronto

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Why the EA

1Competencies

2 Methods

3 Tools

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Competencies

Optimize IT

Manage Technology Disruptors

Advances in Technology (e.g., Cloud, CoIT, etc.)

IT Performance and Responsiveness

Cost Control Governance, Regulation and Security

Talent Management

Market Disruptors

Increased Business Demands

Economic Impacts

Heightened Customer Demands

Aid with Business Problem Solving

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Enterprise Architects connects Strategy to Execution

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“Vision without implementation is hallucination." – Benjamin Franklin

Enterprise Architects connects Strategy to Execution

http://en.wikiquote.org/wiki/Vision

Initiatives

Programs & Projects

Connecting Strategy to Implementation

Strategy

Execution

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What Methods can be used?

Leverage a Solid Foundation

Tailor a Solid Foundation

Strategy Rationalization Cloud ValuationBusiness Transformation

Planning

Distill the business and IT strategies to identify cloud ready capabilities that align to strategy and provide the maximum amount of value with low risk to the business.

Evaluate a prioritized set of cloud opportunities. Assess business and technology capabilities based on the value and risk they bring the company.

Prioritize investment opportunities, balanced across the enterprise and integrated into a transformation roadmap.

Apply TOGAF to Cloud Strategy and Planning

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The Cloud Strategy & Planning Framewor

k (CSP)

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The Cloud Strategy & Planning Framework (CSP)

1Business Value Driven Methodology enabling selection of the right cloud investments

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Business Value Driven Methodology

Business Strategy

Information Technology Strategy

Value Drivers

Enabling Capabilities

Market and Business Demands

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2 Embraces & Extends Proven Cloud Practices

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Embraces & Extends Proven Cloud Practices

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3An Initiative in a Box Enabled by a set of Tools, Guidance & Real-World Examples based on actual customer Engagements

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3An Initiative in a Box Enabled by a set of Tools, Guidance & Real-World Examples based on actual customer Engagements

4 Connected to Solution Architecture Methods

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Cloud Strategy & Planning Method

Strategy Rationalization Cloud ValuationBusiness Transformation

Planning

Distill the business and IT strategies to identify cloud ready capabilities that align to strategy and provide the maximum amount of value with low risk to the business.

Evaluate a prioritized set of cloud opportunities. Assess business and technology capabilities based on the value and risk they bring the company.

Prioritize investment opportunities, balanced across the enterprise and integrated into a transformation roadmap.

Charter Template

Enterprise Capability Assessment

Capability Prioritization ToolCloud Envisioning Workshop

Infrastructure Optimization ToolCapability Profiling Tool

Cloud Pattern Valuation Tool

Portfolio Analysis Template

Capability Opportunity Template

Business Heat Map

Cloud Pattern Matching

Cloud Strategy Template

Cloud Risk Method & Framework

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Strategy Rationalization

Establish Scope, and Approach

• Conduct the Cloud Envisioning Workshop

• Provide overview of cloud computing• Define the enterprise business model

for cloud computing• Establish project charter

Set Strategic Vision

• Gather the IT and business strategic objectives

• Identify strategic cloud computing patterns and technologies

• Analyze customer feasibility and readiness

• State strategic vision for cloud computing

Identify and Prioritize

Capabilities

• Define evaluation criteria for key IT & business value drivers

• Evaluate the capabilities based on these metrics

• Identify ~5 high-priority capabilities for deeper analysis

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Motivation Model Benefits Dependency Network

Strategy Maps

Wh

y

Capability Map

Wh

at

Value Chain, Shop, Network

How

Functional & Organizational Decomposition

Wh

o

IT Portfolio Plan Roadmap Business Transformation Plan

Wh

en

Rationalize & Distill Value

Microsoft Confidential

Understanding Value


Understanding Value

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Cloud DeploymentCloud ServicesEnterprise Capabilities

Example: Cloud Patterning Matching

Channel Mgmt.

Cloud DefinedStrategy

Cloud Valuation

Business Transformatio

n Planning

Distribution

Claims

Sales

Business Mgmt.

Contract Mgmt.

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Industry-Specific Cloud Benefits

Value & Risk Impact Assessment Tool

Cost Reduction

Speed to Implement

Deployment flexibility

Agility

Easier migration

Sharing apps with partners

Access to tech resources

Virtualization

Scalable across many locations

Globalization

Access to best practices

Higher IT utilization

Compliance

Significant factor Moderate factor Small factor

Industry-Specific Cloud Risks

Security

Unclear potential for customization

Unproven ROI/Cost

Conservative mind-set (risk-averse)

Unknown reliability of infrastructure

Integration-related issues

Data ownership

Compliance

Privacy

Vendor lock-in

Significant factor Moderate factor Small factor

StrategyCloud

Valuation


n Planning

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Enterprise Risk Tolerance Assessment

1. ???

?

?

?

?

?

?

?

?

?

Tolerance

Tolerate No Realization of

Business Objectives

Tolerate Net Loss to the Business

StrategyCloud

Valuation


n Planning

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Prioritized list of cloud opportunity candidates

Capability Prioritization

Capability

RiskArchitectural

FitOrganizational Readiness

Technical ReadinessBusiness Governanc

eTechnical

Operations

Distribution L L M M M H H

Claims VH L H VH H M H

StrategyCloud

Valuation


n Planning

Prioritization Analytics Exe

cuti

ve R

ollu

p

1. 2. 3.

Distribution

Claims

Business Mgmt.

Capability

Capability

Capability

Capability

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Profile Capabilities

• Determine current state of capability maturity leveraging IO Maturity Tools

• Execute Risk Analysis Method with corresponding assessments and remediation steps.

• Profile the capability asset portfolios of information, technology, and processes and analyze by architectural fit, risk and readiness

Recommend Deployment

Patterns

• Research capability proven practices and market direction

• Define target cloud capability requirements

• Determine optimal cloud service and deployment patterns for the capabilities based on fit, value, and risk


Cloud Valuation

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Business Capabilities Heat Map

Management Control & Reporting

Core BusinessGeneric Support

FunctionsInternal Control

Functions

Planning Distribution Input Management HR Management

Reporting PropositionBusiness Partner

ManagementFacility Management

Risk Management Distribution Channels

SupportFinancial Management Financial Management

Production ReinsuranceEmployee Event

Management

Primary PurchasingIncentives and Commissions

Secondary Purchasing

Document Management IT Management

Output ManagementCommunications

Management

Financial Processing

A AArchitectural Fit: Very High High Moderate Very LowLow

V VValue: Very High High Moderate Very LowLow

R RRisk: Very Low Low Moderate Very HighHigh

Re

ReReadiness: Very High High Moderate Very LowLow

Heatmap: High Priority Moderate Priority Low Priority

Heatmap Key

V

VRe

A A RRe

A V RRe

A V RRe

A V RRe

A V R Re

A VRe

A VRe

A VRe

VRe

A VRe

A VRe

VRe

A VRe

A VRe

A VRe

V

A VRe

A

V

StrategyCloud

Valuation


n Planning

Cloud Risk Assessment Method and Framework

StrategyCloud

Valuation


n Planning

Risk Assessment Method Risk Assessment Framework

IdentifyIdentify the risks related to deploying a solution in the cloud

AssessAssess risks for likelihood and impact to solution components

Remediate

Develop solution or strategy for risk remediation

PlanIncorporate final risk ratings into cloud adoption planning

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Identify

• Clarify Business Intent• Identify enabling

Innovation-based solutions • Analyze the solutions’ based on Risk

& Business Value• Prioritize High Risk Solutions with

the Highest Business Value

Assess

• Detailed assessment• Determine risk tolerance the

organization is willing to accept• Understand impact and probability

Remediate

• Apply risk assessments to mitigation architecture & planning

• Determine if solutions are eliminated based on risk tolerance

• Identify options and architectures to mitigate risk

Plan

• The key input into the prioritization activity in the Business Transformation Planning phase

• Determines one or more risk mitigation plans for selection

Profile Capabilities – Risk Assessment Method


Bridging Business and IT Capabilities Together

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Deploy Unified Collaboration for <Enterprise> on using SaaS in a Partner Cloud

Example: Unified Communication

Architecture

Target Model Feasibility

4 - Replace

Capability Requirements

5 - Ideal Fit

Security Requirements

4 - Lack Experience

Data Requirements

3 - Partially Compatible

Identity & Access Mgmt

4 - Federation w Config

Value

Reduce Complexity of IT

4 - Important

Reduce P&C Risk 1 - Not Aligned

Increase Value and Lower IT Spend

4 - Important

Enable Positive IT Experience

4 - Important

Most Trusted Insurer 1 - Not Aligned

Risk

Business 2 - Low Risk

Governance 2 - Low Risk

Technical 1 - Marginal Risk

Operational 1 - Marginal Risk

Readiness

Organizational 4 - Minor Gaps

Technical 4 - Customization

SaaS 3.08 3.40 3.52 1.00Valuation Key

5 Exponential Returns

PaaS 1.00 1.00 1.00 1.004 High Returns3 Moderate Returns

IaaS 3.16 3.32 3.36 1.002 Marginal Returns1 Avoid Investment

Traditional Private Partner Public

StrategyCloud

Valuation


n Planning

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Define and Prioritize

Opportunities

• Completely define opportunities to include an overview, benefits, risks, assessment results, technology impacts, and project plan

• Prioritize opportunities for detailed architecture and execution

Define Business

Transformation Roadmap

• Assess implementation risks and dependencies

• Develop and deliver a business transformation roadmap

• Validate with the customer and edit accordingly


Business Transformation Planning

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Opportunities in context of value and riskExample: Opportunity Prioritization

Based on risk and value, the Collaboration, Client Services and Unified Communications opportunities are the low “hanging fruit”

Datacenter Servers provide high opportunity, but has higher risk

Ris

k

Business Value

Low

Hig

h

Low High

StrategyCloud

Valuation


n Planning

Initiative Overview

Deploy Client Service capabilities for Contoso using Infrastructure-as-a-Service (IAAS) in a Private cloud. Drill down into what client services workloads Contoso wishes to provide:1. Client Management and Virtualization2. Client Security

Pattern Risk-Adjusted Value

4High Priority

Value(scale: 1 – value not likely realized, 5 – value very likely realized)

Risk (scale: 1 – marginal risk, 5 – likely catastrophic damage)

Key Benefits

• Higher ROI and reduced TCO• Reduced security breaches and end-

user disruptions• Mitigates business and compliance risk

Key Risks/Challenges• This capability directly supports all

employees, business units, and business processes

Reduce Complexity

of IT

Reduce P&C Risk

Increase Value and Lower IT Spend

Enable Positive IT Experience

Most Trusted Insurer 4

High Value

Business Risk

Governance Risk

Technical Risk

Operational Risk

2Low Risk4 1 4 3 4 1 1 2 3

Readiness

Technical Readiness Organizational Readiness

Maturity Integration Dependencies

Technical Readiness Score

Organizational Concerns

Staff Concerns Organizational Readiness Score

Virtualization platformSecurity infrastructureIntegration with HP BTO

5Proven Technology

Ability to rationalizeCurrent multi-ESP situation

Limited knowledge of client platform within Contoso due to outsourcing

3Semi-prepared Organization

Rationalized

Opportunity Dashboard

Infrastructure-as-a-Service

Private

StrategyCloud

Valuation


n Planning

Example: Cloud Pattern Matching

CommunityPrivatePublic

IaaS

PaaS

Traditional

SaaS

A1. Customer Portal

StrategyCloud

Valuation


n Planning

A2. Online Banking Platform

A3. Reporting

A4. Data Warehouse – Customer Master

A5. Core Banking Systems

Business Capability: L1: Payments L2: Mobility IT Capability: CRM, Portal, Integration, BI

A7. Micro-Payment Engine

Solution(s): Customer Portal, Mobile App, Micro-Payments Engine, Integration Bus, Reporting

Name: Mobile Initiative

Example: Cloud Pattern MatchingStrategy

Cloud Valuation


n Planning

Gateway

Web Services

Interfaces

Credit Card Systems

Credit CardAdapter

Banking Solution

On Premises - Banking ApplicationsInternet

Clients

Customer Account Systems

Customer Account Adapter

Internet

Azure

Azure Connect

Banking Solution

Web Services

Mobile Banking

Application

Legacy Balance System

Account Balance Adapter

Web Application

BalanceData

Credit Card DB

AccountDB


Example: Cloud Roadmap

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Recap & Conclusio

ns

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Recap: Method


Cloud ValuationBusiness

Transformation Planning

Ou

tpu

tC

usto

mer

Valu

eH

ow

is it

diff

ere

nt?

• Project charter defining the scope of the analysis

• Strategic vision for cloud computing

• High-priority capabilities for cloud migration

• Supportive Cross-Organization Analysis Teams

• Current state capability assessment

• Target capability service and deployment patterns

• Defined investment opportunities

• Prioritized and integrated into a business transformation roadmap

• Ensures cloud investments are aligned with IT and business strategy

• Ensures a clear understanding of the value and risks of the future strategic business model for cloud computing

• Provides a portfolio of investments, balanced across the enterprise and its capabilities

• Unlike many thinly-veiled technology-specific approaches, Microsoft presents a holistic approach which prevents fragmentation

• Microsoft’s capability and assessment frameworks and expertise enable a smooth, transparent, valuation process

• Enables ongoing management of investments and continued aligned between strategy and architecture

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Recap: Method


Cloud ValuationBusiness

Transformation Planning

Ou

tpu

tC

usto

mer

Valu

eH

ow

is it

diff

ere

nt?

PlannedQuantifiedQualified

• Project charter defining the scope of the analysis / ASOW

• Strategic vision for cloud computing

• High-priority capabilities for cloud migration

• Ensures cloud investments are aligned with IT and business strategy

• Unlike many thinly-veiled technology-specific approaches, Microsoft presents a holistic approach which prevents fragmentation

• Supportive Cross-Organization Analysis Teams

• Current state capability assessment

• Target capability service and deployment patterns

• Ensures a clear understanding of the value and risks of the future strategic business model for cloud computing

• Microsoft’s capability and assessment frameworks and expertise enable a smooth, transparent, valuation process

• Defined investment opportunities

• Prioritized and integrated into a business transformation roadmap

• Provides a portfolio of investments, balanced across the enterprise and its capabilities

• Enables ongoing management of investments and continued aligned between strategy and architecture

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Recap: Tools & Templates

Tool Description

Charter – Template to authorize the project and define scope, stakeholders and timeline

Enterprise Capability Assessment – Enterprise level 1 capability analysis to segment a customers portfolio for the discovery of cloud opportunities.

Business Heat Map – Graphical view of an organization based on business capabilities and cloud attributes like risk, value, fit and readiness

Tool Description

Capability Prioritization – Further refinement of each business capability with respect to cloud risk, fit and readiness

Cloud Envisioning Workshop (CEW) – An executive level workshop to establish terms and educate along with cross-enterprise facilitated assessments.

Capability Profiling – Rollup dashboard of a given capability to determine the level of value and risk it provides in the context of cloud.

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Tool Description

Cloud Pattern Valuation – Robust metric driven analysis tool used to determine which cloud service and deployment models should be used for a solution.

Cloud Pattern Matching – Graphical tool to connect service and deployment models with business or technical capabilities.

Portfolio Analysis – A tool to plot cloud opportunities to a grid based on Business Priority, Value, Risk and Effort to aid in the roadmapping.

Tool Description

Cloud Opportunity Dashboard – A dashboard that provides a complete rollup of the Cloud Valuation assessments into one sheet to support decision making.

Cloud Strategy Presentation – Template to be used to present findings back to the customer.

Cloud Taxonomy –This taxonomy provides a way of rationalizing cloud specific cloud implementation decisions.

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Tool Description

Cloud Risk Framework – A risk reference model that identifies the key aspects of cloud risk to be assessed.

Cloud Risk Method – Process for applying a risk classification to a potential cloud solution.

Tool Description

CSP Project Planning – Examples of a defined project engagement, with timelines, milestones, activities and deliverables.

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Conclusions

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Thank [email protected]

http://www.MikeTheArchitect.com

Follow me on Twitter @MikeJWalker

mailto:[email protected]

http://www.mikethearchitect.com/

Related Sessions• Keynote: Making Business Drive IT Transformation Through Enterprise

Architecture

• Track: Architecting the Cloud

Mike Walker’s Blog Links• http://www.MikeTheArchitect.com • Coming Soon! Cloud Strategy and Planning Articles, Presentation and

Webcast• IQ Isn’t Enough. Enterprise Architects Must Balance with EQ Driven

Approaches - http://www.mikethearchitect.com/2011/03/iq-isnt-enough-enterprise-architects-must-balance-with-eq-driven-approaches.html

• The Enterprise Architecture Capability Model (EACM) - http://www.mikethearchitect.com/2010/07/the-enterprise-architecture-capability-model-eacm.html

Resources

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© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after

the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.