The Cloud Enabled IT Operating Model - Business

1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved. The Cloud Enabled IT Operating Model Andrew Mitchell, Principal Enterprise Solutions Architect & Nicholas Murray Managing Consultant Amazon Web Service Business

2. What Will We Cover Today? • Why is the Operating Model Important? • Key Tenets of the Cloud Operating Model • Getting Started • Next Steps

3. Why is the Operating Model Important?

4. Infrastructure Savings can be Substantial but Typically 10% of IT Spend The Larger Prize is in Operational Efficiencies On-Premises AWS Typical Corporate IT Budgets (Indicative Only) Infrastructure Operating System Middleware Application Layer Management and Administration Savings in the magnitude of 20-40% are possible Cost

5. Potential Impact on Corporate IT Budgets IT Operating Budget On-Premise AWS Indicative Saving Impact on Overall IT budget Operating System CAPEX licensing model aaS per user model included in AWS pricing License portability & removal of “hidden” support agreements Eliminates complexity of managing licenses 30-40% 2% Middleware CAPEX model Move to a SaaS model Pay per use model also emerging (AWS DB services) 5% 0.5% Application Layer Typically CAPEX model SaaS model on elastic pay per user basis BYOL Licensing arrangements (7000+ Apps on AWS Marketplace) 20-40% 10% Management and Administration Combination of outsourced deals and internal labor undertaking highly manual tasks Reduced overhead due to automation of AWS platform AWS managed cloud offering supports review of legacy managed services agreement Increased OS and Infrastructure automation reduces Application maintenance overhead 30-50% 10%

6. 50 30 15 5 Infrastructure Cost Savings Other Operational Cost savings Quality of Service Business Benefits 0 10 20 30 40 50 60 Cloud Benefit Statement The AWS Value Proposition is More than Cost Savings

7. The AWS Value Proposition is More than Cost Savings The Value Proposition will Evolve over time as the Organisation’s Cloud Capabilities Mature 50 30 15 5 Infrastructure Cost Savings Other Operational Cost savings Quality of Service Business Benefits 0 10 20 30 40 50 60 Cloud Benefit Statement

8. 10 20 20 50 Infrastructure Cost Savings Other Operational Cost savings Quality of Service Business Benefits 0 10 20 30 40 50 60 Cloud Benefit Statement The AWS Value Proposition is More than Cost Savings

9. Four Key Tenets of the Cloud Operating Model

10. Key Tenets Customer Focused If you are Not Solving a Customer or Business Problem, why do it?

11. Key Tenets Customer Focused Automate Everything Automation Brings Improvements in: • Repeatability • Agility • Availability • Security

12. Key Tenets Customer Focused Automate Everything Infrastructure as Code Enabler of Automation Infrastructure can be Version Controlled along with Application Code.

13. Key Tenets Customer Focused Automate Everything Infrastructure as Code Lean Teams Larger teams lead to Less Effective Communication. Number of Interpersonal Links = n(n-1)/2 • 6 person team = 15 links • 12 person team = 66 links

14. Where Do We Start?

15. Digital Edge Enterprise Customer Cloud Adoption Mode 2 Mode 1

16. Digital Analytics Edge Mode 2 Mode 1 Enterprise Customer Cloud Adoption

17. Digital Analytics Cloud Team Edge Mode 2 Mode 1 Enterprise Customer Cloud Adoption

18. Digital Analytics Cloud Team Edge Mode 2 Mode 1 Cloud Shared Services Enterprise Customer Cloud Adoption

19. Digital Analytics Cloud Shared Services Cloud Team EdgeCore Mode 2 Mode 1 Enterprise Customer Cloud Adoption

22. Cloud Team The Most Common Approach to Cloud Adoption in Large Enterprises. • Provides Managed Shared services to other BUs • Provides Efficient Scale and Long Term Sustainability. BU 1 BU 2 BU 3 Corporate IT Service Delivery Directory Services Networks Storage / Backup Strategic Outsourcing Cloud Team

23. Cloud Team Responsibilities Security Security MUST be Job #1 – Nothing Happens Unless it is Secure by Default.

24. Cloud Team Responsibilities Security Resiliency Design Patterns / Templates Provided by the Cloud Team must have Continuous Availability as a Key Goal

25. Cloud Team Responsibilities Security Resiliency Performance Application Performance while Remaining Cost Optimised

26. Cloud Team Responsibilities Security Resiliency Performance Consumability This is Critical – Without Easy to Consume Applications, Platforms and Infrastructure you Lose Agility.

27. Cloud Team Key Deliverables Common Shared Services • Active Directory/LDAP Services • DNS • Logging • AV • Internet Proxy Services • Data Center Connectivity (Direct Connect, VPN) • etc.

28. Cloud Team Key Deliverables Common Shared Services • Active Directory/LDAP Services • DNS • Logging • AV • Internet Proxy Services • Data Center connectivity (Direct Connect, VPN) • etc. Service Catalog • Infrastructure • Application stacks • Databases • Platform Services • AWS IAM/Policy

29. How Many People Do I Need? Can be as small as 2-3 FTEs. If internal resources don’t exist, consider AWS Partners. Cloud Team Considerations…

30. How Many People Do I Need? Can be as small as 2-3 FTEs. If internal resources don’t exist, consider AWS Partners. What level of managed services will the Cloud Team provide? Two options: 1. The Cloud Team is a broker of cloud services. 2. The Cloud Team is a strict managed services center. Cloud Team Considerations… Both extremes …and points in the middle are possible Thin layer offering AWS Services Strict Managed Service

31. Rationale for Separate Cloud Team Seize Opportunities Within the New Team • Agile Approach (e.g. Kanban etc.) • Embrace DevOps Practices • Infrastructure as Code • Explore New Tools and Techniques • Automate as Much as Possible • Develop Best Practices Specific to Your Business and Enable the Wider Organisation

32. Example – Org Chart CIO Architect Head Networks Head Applications Head PMO Operations Head Architect Desktop Support Network Engineer Application Engineer Enterprise Engineer Head of Cloud Architect Application Engineer Network /Security Engineer Application Support

33. Example – Team Members Team Lead (1) Architects (2) Application Engineer (3) Security Engineer IT leadership skills IT transformation skills Cloud computing experience Cloud HA patterns experience Cloud storage and DB skills Networking skills OpEx cost optimization skills Software driven environments skills Networking, Storage, Security skills Scripting and programming skills Infrastructure as code and tools skills DevOps skills, agile dev/deployment skills Broad IT security experience Compliance and standards experience Cloud specific controls experience API security experience Access control and federation skills SkillsetsFT Roles AWS /Partner Advise and support on all of the above Legal (1) Finance (1) Ops./Admin (1) PT Roles Finance manager Skillsets Legal Council Operational/administrator (will transition to full time)

34. Call to Action 1. Analyse Your Current Model and Maturity • Be Honest and Open to Change • Identify Gaps

35. Call to Action 1. Analyse Your Current Model and Maturity • Be Honest and Open to Change • Identify Gaps 2. Identify Partners that Can Help

36. Call to Action 1. Analyse Your Current Model and Maturity • Be Honest and Open to Change • Identify Gaps 2. Identify Partners that Can Help 3. ACT • MVP • Iterate

37. Further Reading AWS Whitepapers : https://aws.amazon.com/whitepapers/ • AWS Cloud Adoption Framework • Business Perspective • Maturity Perspective • Process Perspective • Operations Perspective • People Perspective

38. AWS Training & Certification Intro Videos & Labs Free videos and labs to help you learn to work with 30+ AWS services – in minutes! Training Classes In-person and online courses to build technical skills – taught by accredited AWS instructors Online Labs Practice working with AWS services in live environment – Learn how related services work together AWS Certification Validate technical skills and expertise – identify qualified IT talent or show you are AWS cloud ready Learn more: aws.amazon.com/training

39. Your Training Next Steps: ü Visit the AWS Training & Certification pod to discuss your training plan & AWS Summit training offer ü Register & attend AWS instructor led training ü Get Certified AWS Certified? Visit the AWS Summit Certification Lounge to pick up your swag Learn more: aws.amazon.com/training

40. Thank You!