Why EA's must drive cloud strategy

Open Group Conference San FranciscoEA’s Must Drive CloudStrategy & Planning Mike Walker | Enterprise Strategy and Architecture | Microsoft Corp. http://www.MikeTheArchitect.com

Why Enterprise ArchitectureMust drive Cloud Strategy & Planning 2

Who am I?3

State of AffairsTodays Why Enterprise ArchitectsSession End to End Method How Microsoft builds Cloud Strategies 4

End to End overview of the Cloud Strategy & Planning (CSP) FrameworkWhat to Expect No detailed demos will shown. Expect detailed modules to cover these aspects Why CSP is important to you and your engagements 5

Cloud is HereGartner estimates, over the Over 80% of IT leadersnext five years, enterprises indicate that their staff will will spend $112 billion need to develop new skills. cumulatively on cloud services 91% of IT Professionals anticipate in 5 years cloud will overtake on-premises computing 6

How is thisdifferent fromall other technologies ? 7

Pervasive and Deep Impacts 8

The BusinessDemandsalways oncapacity 9

We’ve been downthis Road before… 10

“50% of all Technology Initiativesare a Waste of money…. “ 11

“50% of all Technology Initiativesare 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 12

Cloud isDifferent Pressures on the CIO Disruption in Technology Enablement 13

Who do weturn to? 14

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 15

Why the EA Competencies Methods Tools 16

Competencies Cost Control Governance, Regulation and Security Increased Advances in Technology (e.g., Business Demands Cloud, CoIT, etc.) Market Disruptors Optimize IT Heightened Manage Technology Customer Demands Disruptors IT Performance and Economic Impacts ResponsivenessAid with Business Problem Solving Talent Management 17

Enterprise Architectsconnects Strategy toExecution 18

Enterprise Architectsconnects Strategy toExecution without implementation is “Vision hallucination." – Benjamin Franklin 19

Connecting Strategy to Implementation Strategy InitiativesExecution Programs & Projects

What Methods can be used?21

Leverage aSolidFoundation

Tailor a SolidFoundation

Apply TOGAF to CloudStrategy and Planning Business Transformation Strategy Rationalization Cloud Valuation Planning Distill the business and IT Evaluate a prioritized set of cloud Prioritize investment strategies to identify cloud ready opportunities. Assess business and opportunities, balanced across the capabilities that align to strategy technology capabilities based on enterprise and integrated into a and provide the maximum amount the value and risk they bring the transformation roadmap. of value with low risk to the company. business.

The CloudStrategy & PlanningFramework (CSP) 25

The Cloud Strategy & Planning Framework (CSP) Business Value Driven Methodology enabling selection of the right cloud investments 26

Business Value Driven Methodology Market and Business Demands Business Strategy Information Technology Strategy Value Drivers Enabling Capabilities 27

The Cloud Strategy & Planning Framework (CSP) Business Value Driven Methodology enabling selection of the right cloud investments Embraces & Extends Proven Cloud Practices 28

Embraces & Extends Proven CloudPractices 29

The Cloud Strategy & Planning Framework (CSP) Business Value Driven Methodology enabling selection of the right cloud investments Embraces & Extends Proven Cloud Practices An Initiative in a Box Enabled by a set of Tools, Guidance & Real-World Examples based on actual customer Engagements 30

The Cloud Strategy & Planning Framework (CSP) Business Value Driven Methodology enabling selection of the right cloud investments Embraces & Extends Proven Cloud Practices An Initiative in a Box Enabled by a set of Tools, Guidance & Real-World Examples based on actual customer Engagements Connected to Solution Architecture Methods 31

Cloud Strategy & Planning Method Business Transformation Strategy Rationalization Cloud Valuation Planning Distill the business and IT Evaluate a prioritized set of cloud Prioritize investment strategies to identify cloud ready opportunities. Assess business and opportunities, balanced across the capabilities that align to strategy technology capabilities based on enterprise and integrated into a and provide the maximum amount the value and risk they bring the transformation roadmap. of value with low risk to the company. business. 32

Cloud Strategy & Planning Method Strategy Rationalization 33

Rationalize & Distill Value Why Strategy Maps Motivation Model Benefits Dependency Network What Who How Value Chain, Shop, Functional & Organizational Capability Map Network Decomposition When IT Portfolio Plan Roadmap Business Transformation Plan 34

Microsoft ConfidentialUnderstanding Value

Strategy Cloud Valuation CloudBusiness Defined TransformationExample: Cloud Patterning Matching Planning Channel Mgmt. Distribution Claims Sales Business Mgmt. Contract Mgmt. 37

Business Strategy Cloud Valuation TransformationValue & Risk Impact Assessment Tool Planning 38

Business Strategy Cloud Valuation TransformationEnterprise Risk Tolerance Assessment Planning Tolerance 1. ?? Tolerate Net Loss to the Business Tolerate No Realization of Business Objectives 39

Business Strategy Cloud Valuation TransformationCapability Prioritization PlanningPrioritized list of cloud opportunity candidatesPrioritization Analytics Risk Architectural Organization Technical Capability Business Governance Technical Operations Fit al Readiness Readiness Distribution L L M M M H H Claims VH L H VH H M H 1. Executive Rollup 2. 3. 40

Cloud Strategy & Planning Method Cloud Valuation 41

Business Strategy Cloud Valuation TransformationBusiness Capabilities Heat Map Planning Management Control & Core Business Generic Support Functions Internal Control Functions Reporting Planning Distribution Input Management HR Management Business Partner Reporting Proposition Facility Management Management Distribution Channels Risk Management Financial Management Financial Management Support Employee Event Production Reinsurance Management Primary Purchasing Incentives and Commissions Secondary Purchasing Document Management IT Management Communications Output Management Management Financial Processing 42

Business Strategy Cloud Valuation Transformation PlanningCloud Risk Assessment Method and Framework Risk Assessment Method Risk Assessment Framework Identify the risks related to deploying a solution in the cloud Identify Assess risks for likelihood and impact to solution components Assess Develop solution or strategy for risk remediationRemediate Incorporate final risk ratings into cloud adoption planning Plan

Cloud Strategy & Planning Method • Clarify Business Intent • Identify enabling Identify Innovation-based solutions • Analyze the solutions’ based on Risk & Business Value • Prioritize High Risk Solutions with the Highest Business Value • Detailed assessment • Determine risk tolerance the organization Assess is willing to accept • Understand impact and probability • Apply risk assessments to mitigation architecture & planningRemediate • Determine if solutions are eliminated based on risk tolerance • Identify options and architectures to mitigate risk • The key input into the prioritization activity in the Business Transformation Planning phase Plan • Determines one or more risk mitigation plans for selection 44

Microsoft ConfidentialBridging Business and IT Capabilities Together

Business Strategy Cloud Valuation TransformationExample: Unified Communication PlanningDeploy Unified Collaboration for <Enterprise> on using SaaS in a Partner Cloud Valuation Key SaaS 3.08 3.40 3.52 1.00 5 Exponential Returns 4 High Returns PaaS 1.00 1.00 1.00 1.00 3 Moderate Returns 2 Marginal Returns IaaS 3.16 3.32 3.36 1.00 1 Avoid Investment Traditional Private Partner Public Architecture Value Risk ReadinessTarget Model Reduce 4 - Replace 4 - Important Business 2 - Low Risk Organizational 4 - Minor GapsFeasibility Complexity of ITCapability Reduce P&C 4- 5 - Ideal Fit 1 - Not Aligned Governance 2 - Low Risk TechnicalRequirements Risk Customization Increase ValueSecurity 4 - Lack 1 - Marginal and Lower IT 4 - Important TechnicalRequirements Experience Risk SpendData 3 - Partially Enable Positive 1 - Marginal 4 - Important OperationalRequirements Compatible IT Experience RiskIdentity & 4 - Federation w Most TrustedAccess Mgmt Config 1 - Not Aligned Insurer 46

Cloud Strategy & Planning Method Business Transformation Planning 47

Business Strategy Cloud Valuation Transformation PlanningExample: Opportunity PrioritizationOpportunities in context of value and risk 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 Low Risk High Low Business Value High 48

BusinessOpportunity Dashboard Strategy Cloud Valuation Transformation Planning Initiative Overview Pattern Risk-Adjusted ValueDeploy Client Service capabilities for Contoso using Infrastructure-as-a-Service (IAAS) in a Private cloud. Drill down into what clientservices workloads Contoso wishes to provide:1. Client Management and Virtualization2. Client Security 4 High Priority Value Risk (scale: 1 – value not likely realized, 5 – value very likely realized) (scale: 1 – marginal risk, 5 – likely catastrophic damage) • Higher ROI and reduced TCO • This capability directly supports all • Reduced security breaches and end-user Key Benefits Key Risks/Challenges employees, business units, and business disruptions processes • Mitigates business and compliance risk Increase Reduce Enable Most Reduce Value and Business Governance Technical OperationalComplexity Positive IT Trusted of IT P&C Risk Lower IT Spend Experience Insurer 4 Risk Risk Risk Risk 2 High 4 1 4 3 4 1 1 2 3 Low Risk Value Readiness Technical Readiness Organizational Readiness Integration Technical Readiness Organizational Organizational Readiness Maturity Staff Concerns Dependencies Score Concerns Score Virtualization platform Security infrastructure Integration with HP 5 Ability to rationalize Current multi-ESP situation Limited knowledge of client platform within Contoso due to 3 BTO outsourcing Semi-prepared Proven Technology Organization

Business Strategy Cloud Valuation Transformation PlanningExample: Cloud Pattern MatchingName: Mobile Initiative Business Capability: L1: Payments L2: Mobility IT Capability: CRM, Portal, Integration, BISolution(s): Customer Portal, Mobile App, Micro-Payments Engine, Integration Bus, Reporting A1. Customer PortalSaaS A3. Reporting A2. Online Banking PlatformPaaS A4. Data Warehouse – Customer MasterIaaS A5. Core Banking Systems A7. Micro-Payment Engine Public Private Community Traditional

Business Strategy Cloud Valuation Transformation PlanningExample: Cloud Pattern Matching Internet Internet On Premises - Banking Applications Clients Azure Gateway Banking Solution Account Balance Adapter Balance Data Legacy Balance System Web Application Azure Connect Credit Card Adapter Credit Card DB Web Mobile Services Credit Card Systems Web Banking Interfaces Services Banking Application Solution Customer Account Adapter Account DB Customer Account Systems

Microsoft ConfidentialExample: Cloud Roadmap

Recap &Conclusions 53

Recap: Method Business Transformation Strategy Rationalization Cloud Valuation Planning • Project charter defining the scope • Supportive Cross-Organization of the analysis Analysis Teams • Defined investment opportunities • Strategic vision for cloud • Current state capability • Prioritized and integrated into a computing assessment business transformation roadmap • High-priority capabilities for cloud • Target capability service and migration deployment patterns • Ensures a clear understanding of • Ensures cloud investments are • Provides a portfolio of the value and risks of the future aligned with IT and business investments, balanced across the strategic business model for cloud strategy enterprise and its capabilities computing • Unlike many thinly-veiled • Microsoft’s capability and • Enables ongoing management of technology-specific approaches, assessment frameworks and investments and continued Microsoft presents a holistic expertise enable a smooth, aligned between strategy and approach which prevents transparent, valuation process architecture fragmentation 54

Recap: Method Qualified Quantified Planned Business Transformation Strategy Rationalization Cloud Valuation Planning • Project charter defining the scope • Supportive Cross-Organization of the analysis / ASOW Analysis Teams • Defined investment opportunities • Strategic vision for cloud • Current state capability • Prioritized and integrated into a computing assessment business transformation roadmap • High-priority capabilities for cloud • Target capability service and migration deployment patterns • Ensures a clear understanding of • Ensures cloud investments are • Provides a portfolio of the value and risks of the future aligned with IT and business investments, balanced across the strategic business model for cloud strategy enterprise and its capabilities computing • Unlike many thinly-veiled • Microsoft’s capability and • Enables ongoing management of technology-specific approaches, assessment frameworks and investments and continued Microsoft presents a holistic expertise enable a smooth, aligned between strategy and approach which prevents transparent, valuation process architecture fragmentation 55

Recap: Tools & Templates Tool Description Tool Description Charter – Template to Capability Prioritization – authorize the project and Further refinement of each define scope, stakeholders business capability with and timeline respect to cloud risk, fit and readiness Enterprise Capability Cloud Envisioning Assessment – Enterprise Workshop (CEW) – An level 1 capability analysis to executive level workshop to segment a customers establish terms and educate portfolio for the discovery of along with cross-enterprise cloud opportunities. facilitated assessments. Business Heat Map – Capability Profiling – Rollup Graphical view of an dashboard of a given organization based on capability to determine the business capabilities and level of value and risk it cloud attributes like risk, provides in the context of value, fit and readiness cloud. 56

Recap: Tools & Templates Tool Description Tool Description Cloud Pattern Valuation – Cloud Opportunity Robust metric driven analysis Dashboard – A dashboard tool used to determine which that provides a complete cloud service and rollup of the Cloud Valuation deployment models should assessments into one sheet be used for a solution. to support decision making. Cloud Pattern Matching – Cloud Strategy Graphical tool to connect Presentation – Template to service and deployment be used to present findings models with business or back to the customer. technical capabilities. Portfolio Analysis – A tool to Cloud Taxonomy –This plot cloud opportunities to a taxonomy provides a way of grid based on Business rationalizing cloud specific Priority, Value, Risk and cloud implementation Effort to aid in the decisions. roadmapping. 57

Recap: Tools & Templates Tool Description Tool Description Cloud Risk Framework – A CSP Project Planning – risk reference model that Examples of a defined identifies the key aspects of project engagement, with cloud risk to be assessed. timelines, milestones, activities and deliverables. Cloud Risk Method – Process for applying a risk classification to a potential cloud solution. 58

Conclusions 59

Thank You!mikewalk@microsoft.comhttp://www.MikeTheArchitect.comFollow me on Twitter @MikeJWalker 60

ResourcesRelated Sessions• Keynote: Making Business Drive IT Transformation Through Enterprise Architecture• Track: Architecting the CloudMike 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

© 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 marketconditions, 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. 62

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Why EA's must drive cloud strategy

by Mike Walker

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