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Keep Cloud Transformation on Track: Nine Best Practices to Avoid or Break Through a Stalled Cloud Transformation Program

Intended for customers who have (or will have) thousands of instances on AWS, this session is about reducing the complexity of managing costs for these large fleets so they run efficiently. Attendees will learn about common roadblocks that prevent large customers from cost optimizing, tools they can use to efficiently remove those roadblocks, and techniques to monitor their rate of cost optimization. The session will include a case study that will talk in detail about the millions of dollars saved using these techniques. Customers will learn about a range of templates they can use to quickly implement these techniques, and also partners who can help them implement these templates.

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Keep Cloud Transformation on Track: Nine Best Practices to Avoid or Break Through a Stalled Cloud Transformation Program

  1. 1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Keep Cloud Transformation on Track Ten Best Practices to Avoid or Break Through a Stalled Cloud Transformation Program August 23, 2016 Biff Gaut, AWS Solutions Architect, AWS Chris Wegmann, Managing Director, Accenture AWS Business Group and AWS Practice
  2. 2. What to expect from the session • Learn from research done by AWS Professional Services to understand why many enterprise cloud transformation programs stall in the field • Discuss 10 best practices shared by enterprises who were able to break through the stall
  3. 3. Most transformation programs will stall in the field
  4. 4. Stall [stawl] verb 1.1 stop or cause to stop making progress 1.2 (of a motor vehicle or its engine) stop running, typically because of an overload on the engine
  5. 5. What we would like to see in a cloud adoption… growth time
  6. 6. accelerate through the stall 10% experience a prolonged stall at around 20% adoption 70% never recover 20%
  7. 7. What we actually saw from Global Enterprises * Cheerio Score is used as a proxy for growth rates that hold price drops and revenue outliers constant CUSTOMER 1 CUSTOMER 2 CUSTOMER 3 CUSTOMER 4 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 0 10 20 30 40 50 60 1 4 7 10 13 16 19 22 25 0 10 20 30 40 50 60 1 4 7 10 13 16 19 22 25 CUSTOMER 5 CUSTOMER 6 CUSTOMER 7 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 0 20 40 60 80 1 4 7 10 13 16 19 22 25 0 20 40 60 80 1 4 7 10 13 16 19 22 25 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 STALLED 20 MONTHS STALLED 9 MONTHS STALLED 18 MONTHS STALLED 12 MONTHS STALLED 25 MONTHS STALLED 15 MONTHS STALLED 10 MONTHS
  8. 8. That’s hundreds of millions of dollars in delayed transformation each year
  9. 9. What if you could escape the stall?
  10. 10. https://www.flickr.com/photos/japokskee/ Good news! There are proven tools we can use
  11. 11. MARKETSATURATION S-curves are a natural law of product markets
  12. 12. S-curves are made up of groups of buyers
  13. 13. These groups share buying goals and buying behaviors
  14. 14. Because of the differences between buying groups…
  15. 15. The Chasm! (This is the big one) Crack 2 Crack 1 … several crises emerge in the process
  16. 16. The Chasm Occurs because Early Adopters and Early Majority are so different
  17. 17. Early Adopters • It is new to the market • It is the fastest product • It is the easiest to use • It has elegant architecture • It has unique functionality What they want is different Early Majority • It is the de facto standard • It has the largest installed base • It has most third-party supporters • It has great support • It has low cost of ownership
  18. 18. What does all this mean for you?
  19. 19. The Great Stall is actually Moore’s Chasm!
  20. 20. Managers in enterprises behave the same as consumers in consumer markets
  21. 21. Accelerating through the Great Stall is the same as Crossing the Chasm
  22. 22. 10 things you need to do differently in your cloud transformation program…
  23. 23. Admit you’ve got a problem 01 Next step What made your change initiative successful thus far is not relevant for the next stage in adoption. Do a Lean UX user persona workshop to understand the Early Majority in your enterprise.
  24. 24. Change and give incentives to team members 02 Next step Your cloud enablement team is likely full of innovators, led by an early adopter, and very poachable. Bring in new team members who can open doors into the Early Majority market, bring key supplementary skills, and provide lots of positive reinforcement.
  25. 25. Identify the beachhead 03 Next step You need a strategic market entry project that you can complete. Your victory will impress follow-on Early Majority buyers. Do a beachhead analysis workshop to develop your decision rubric and analyze the context.
  26. 26. Identify the bowling pins 04 Next step Don’t boil the ocean. It’s about momentum, not volume. Reuse your beachhead decision rubric, and run a bowling pin analysis workshop.
  27. 27. Reposition/recommunicate 05 Next step Change the communications script to speak to the Early Majority psyche. Adopt a cloud-first strategy led from the top. Throw out your existing communications plan and do a new one.
  28. 28. Reprioritize the offering 06 Next step Deliver the product halo and remember that transformation != migration. Revisit your MVP and start to experiment again with the offering, but use a new group of target customers.
  29. 29. Address the Early Majority org ecosystem 07 Next step Clear barriers proactively, and don’t bring a knife to a gunfight—bring in experts here. Put cloud first into vendor RFPs. Get on the front foot with finance and financial reporting, security, legal, and procurement.
  30. 30. Be heard and be seen 08 Next step Communicate wins. And then communicate wins. After that, communicate wins. Develop a communications tactical plan that reflects Early Majority values, and start delivering it.
  31. 31. Lead 09 Next step Leaders must stay engaged and visible. They must also discipline with carrots and sticks. Require middle managers to get certified, and encourage senior managers to set examples by sitting beside them.
  32. 32. Automate 10 Next step It was fine to do things manually in the early phase, but that will never scale to thousands of apps. Get your people trained with DevSecOps and DevSecOps on AWS. Reuse a Bot Army like GE or a Simian Army like Netflix.
  33. 33. Recap: your actions 1. Admit you have a problem 2. Change the team members 3. Identify the beachhead 4. Identify the bowling pins 5. Reposition 6. Reprioritize the offering 7. Work on the ecosystem 8. Be heard and seen 9. Lead 10. Automate
  34. 34. How can I get help?
  35. 35. Where to Get Help 1. Customer to customer contacts 2. Broadly train 3. Vendor to vendor collaboration
  36. 36. Sustaining Momentum in Public Cloud Transformations Accenture has developed and number of offerings that directly address cloud transformation program challenges and help our clients avoid ”the big stall” and accelerate cloud adoption @ enterprise scale Copyright © 2016 Accenture All rights reserved. Enrich the Cloud Value Case Drive Ecosystem Buy-In Inject Automation Develop a Prioritized Roadmap Navigate Change
  37. 37. CREATIVE COMMONS ATTRIBUTIONS Book cover Slide: http://www.amazon.com/Crossing-Edition-Collins-Business-Essentials-ebook/dp/B00DB3D81G S-Curve Slide: http://www.technology.org/2013/06/25/the-long-road-for-electric-vehicles/ Lifecycle vis-à-vis s-curve Slide: http://en.wikipedia.org/wiki/Diffusion_of_innovations Crossing the Chasm Bell Curve & Summary: http://www.slideshare.net/khberglund/crossing-the-chasm-henrik-berglund D-Day Slide: http://www.uscg.mil/history/articles/h_normandy.asp

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