Creating a One-Page Cloud Strategy for a Midsize …...Why Is a Cloud Strategy Necessary? Cloud computing has the potential to provide great value to your organization. The lack of

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Mike Cisek

Creating a One-Page Cloud Strategy for a Midsize Enterprise

Midsize Enterprise Summit Spring5 – 7 May 2019 / Orlando, FL

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The best time to do a cloud strategy was five years ago.

The second best time is now.

2 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

Key Issues

1. What is a cloud strategy and why do I need one?

2. What is different about midsize enterprises?

3. How to create a one-page cloud strategy for a midsize enterprise?


Key Issues





Cloud Strategy

What it isn’t!

An edict to migrate

everything to

the cloud

An executive mandate

to move to the cloud is

not a strategy

What is it?

A short, concise point

of view on cloud


A Good MSE Cloud Strategy Answers Basic Questions

Benefits

Risks

$ Impact on

Business

How We Make

Decisions

About Cloud?

$ Impact on

IT Budget

IT Impact

Staff/Skills

End-User

Impact


Why Is a Cloud Strategy Necessary?

Cloud computing has the potential to provide great

value to your organization.

The lack of a cloud strategy creates ad hoc behaviors,

which undermines cloud benefits.

A documented cloud strategy stimulates the right

behaviors across the organization.

1

2

3


Key Issues





Attributes That Define a Midsize Enterprise

Employees

978

IT Staff

15 FTE’s

63% Versatilists

Revenue

$272M

IT Budget

5.78M

OpEx 3.5

CapEx 2.3

% of IT Budget

Cloud = 25%

Branch Locations

17 Domestic

If International

Then 10

App Developers

5 FTE's

23% = 0 FTEs

Specialists

CIO = 52%

CISO = 13%

Sourcing = 7%

Servers 119

83% Virtual

Storage

86TB

58% < 50TB

Source: Midsize Enterprise Summit Spring + Fall 2018 n = 181


Midsize Enterprise Distribution of IT Spending

Source: “IT Key Metrics Data 2018: Midsize Enterprise Executive Summary” (G00341719)

https://www.gartner.com/document/3830139?ref=TypeAheadSearch&qid=0813bbe6cde6d2b1a099bce868


MSE CIO

We have an entirely

different economic,

cultural and managerial

environment.

It’s therefore a mistake

to contrast the IT

decision-making

behavior of midsize

enterprises with that of

big companies …

Dyadic Communication

Rightsized Approaches

Economic Discipline

1

2

3

The Three Dynamics That

Drive MSEs


Key Issues





The Framework

Midsize Enterprise Cloud Strategy

Impact on ITBusiness CriticalityCloud Viability


Assess the Viability of Cloud

Cloud Viability Score (0 to 5)

End UserRiskMaturity


Assess the Business Impact

Business Impact Score (0 to 5)

OperationsCustomerDifferentiation


Assess IT Capabilities

IT Capability Score (0 to 5)

VisionSkillsStaffing


Key MSE Selection Criteria

• Are the most critical to business or

IT operations

• Are no longer aligned to business or IT

requirements (vision)

• May require additional capacity or

performance (bursting)

Use maintenance agreements as the “system of record” to determine which

technologies investments:

• Are of high visibility from an employee

and/or customer perspective

• Offer the greatest opportunity for cost

savings or operational efficiency

• Represent the most significant portion

of the overall maintenance budget


IT Capabilities

Sta

ffin

g

Skill

s

Vis

ion

Technology Investment AreaIT Capability

Score

ITSM 0 0 0 0.00

ERP 3 3 5 3.67

Assess IT Capabilities

▪ Staffing: Are staffing levels sufficient to provide requisite level of admin. and support

▪ Skills: IT resources vs. expertise required to provide comprehensive administration

▪ Vision: Opex vs. capex, IT roadmap, the future


Assess Business Criticality

▪ Differentiation: Does it set you apart, enable you to outperform competitors

▪ Customer: Customer experience, how heavily is it leveraged, ties to commerce

▪ Operations: Simplify processes, lower transaction costs, improve efficiency

Business Criticality

Diffe

ren

tia

tio

n

Cu

sto

me

r

Ope

ratio

ns

Technology Investment AreaBusiness

Criticality Score

ITSM 1 1 0 0.67

ERP 3 4 4 3.67


Assess Cloud Viability

▪ Maturity: Parity (legacy), risk (data security, compliance, integration, new vendor)

▪ TCO: Opex impact including network upgrades, security, migration costs, etc.

▪ End-user experience: Latency, functional equivalence, need for retraining

TCO = Total Cost of Ownership

Cloud Viability

Ma

turi

ty

TC

O

EU

X

Technology Investment AreaCloud Viability

Score

ITSM 4 4 4 4.00

ERP 1 1 1 1.00


Inside the Scoring

IT CapabilitiesBusiness

CriticalityCloud Viability

Sta

ffin

g

Skill

s

Vis

ion

Diffe

ren

tia

tio

n

Custo

me

r

Ope

ratio

ns

Ma

turi

ty

TC

O

EU

X

Technology Investment

Area

IT

Capability

Score

Business

Impact

Score

Cloud

Viability

Score

ITSM 0 0 0 0.00 1 1 3 1.67 4 4 4 4.00

HCI 5 5 5 5.00 1 1 1 1.00 1 1 1 1.00

BIA 0 0 5 1.67 5 4 5 4.67 4 3 3 3.00

ERP 3 3 5 3.67 5 5 5 5.00 1 1 1 1.00


BIA

ITSM

ERP

HCI

IT Capabilities (High)IT Capabilities (Low)

Bu

sin

es

s Im

pa

ct

(Lo

w)

Bu

sin

es

s Im

pa

ct

(Hig

h)

Cloud Strategy


Action Plan for the MSE CIO/IT Leader

Monday Morning:

• Using maintenance contract as the “system of record” shortlist potential “cloud

candidates” from those up for renewal over the next 6 to 12 months

Next 90 Days:

• Preform due diligence on cloud candidates

• Communicate your cloud strategy to your IT organization and business peers

Next 12 Months:

• Incorporate a one-page cloud strategy into your annual planning process

• Develop a process to ensure your strategy document is maintained


For information, please contact your Gartner representative.

Recommended Gartner Research

Toolkit: 1-Page Cloud Strategy for Midsize Enterprises

Mike Cisek and Joe Mariano (G00370028)

Three Dynamics That Drive Midsize Enterprises

Mike Cisek and Mark Fabbi (G00329411)

Hype Cycle for Midsize Enterprises, 2018

Mike Cisek, James Browning and Mark Fabbi (G00338660)

Midsize Enterprise CIO Priorities and CEO Expectations

James Browning (G00374739)

https://www.gartner.com/document/3895584?ref=solrAll&refval=217295580&qid=

https://www.gartner.com/document/3787068?ref=solrAll&refval=210374862&qid=44a7174dc685db54bf5760065d9bc6d6

https://www.gartner.com/document/3883782?ref=solrAll&refval=210374811&qid=f91b82d8fefc2fd67f212cdc2da6b8ee

https://www.gartner.com/document/3894872


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Creating a One-Page Cloud Strategy for a Midsize …...Why Is a Cloud Strategy Necessary? Cloud computing has the potential to provide great value to your organization. The lack of