Implications of Cloud Computing
        for Enterprise Architects




Matt Deacon
Chief Architectural Advisor,
Developer &...
www.iasahome.org/web/uk/certification
Disclaimer*
1.   Forward Looking Statements: The following presentation contains certain
     predictions and forecasts wh...
Disclaimer v2
What I really said …
The “Cloud” is everywhere these days with every CIO
shouting “I want one of those!”
A bit like they d...
Clouds clouds everywhere
                      Business




    Offshore                              Vendors


          ...
Agenda
• Talking clouds
   Build a cloud taxonomy and an approach to using it with key stakeholders from
   business to IT...
Talking Clouds
A cloud taxonomy and an approach to using it
   with key stakeholders from business to IT.
Cloud Computing Defined
• Providing IT resources, as a service, in a dynamic and scalable manner
  over a network*
• Five ...
A Simple Cloud View
Provide business services, in a dynamic, efficient, cost
effective and reliable manner that add busine...
A Simple Cloud View


 Software                          Software




 Platform                          Platform



Infra...
Stakeholder view of cloud?
                   Simple                 Cost


                                 Exec


 Profi...
Adoption - Extension of Buy Versus
              Build
Customer Example
Build
Customer Example
Build
Customer Example
Customer Example
Customer Example
Customer Example
Customer Example
Customer Example
Adopting Cloud
                                 You should start with opportunities to move existing
      Move
          ...
Business Capabilities
  Discuss how looking above process and
implementation at a business's capabilities
    enables EAs ...
What is a business?

                       Develop




              Plan
                                           Busi...
What is a business?

                            Develop
    Fulfil Demand                                 Procure Resourc...
Anatomy of a Capability




Technology


 Process


 People
Anatomy of a Capability
Properties of capabilities
•   Stable
•   Describe what not how
•   Measurable
•   Value oriented
Valuing capabilities
• Value
  – Cost
  – Differentiation
  – Complexity
  – Maturity
• Performance
  – Duration/responsiv...
Capability Heat Maps
                               Border Colour     Fill Colour

   Capability                  Business...
SOA and Capabilities
               The problem with SO Junkies!
• They‟re very compatible
  • Capabilities moves you abov...
Myths
• Duplication/synchronisity is not a
  problem
• Share services are a read herring
• Normalisation
• A universal ent...
Dynamic Specialised Capability
           Building
       The Only Sustainable Edge, Hagel, Seely-Brown

“Primary purpose ...
Future of IT
The future IT department in terms of new
responsibilities and roles and understand
  the key architectural co...
Adopting Cloud
  • Never?
         – “Time and tide …”




Copyright Freeform Dynamics 2008
http://www.freeformdynamics.co...
Convergence or Collision?
                   Physics

      Dynamic IT
                                        Internet


...
Move to Multi-Sourcing




      Iain Mortimer, Chief Architect, BoAML, AIC2010
channel9.msdn.com/posts/mattdeacon/Talking...
IT Organisation of the Future
                     Business Stakeholder Group
- Board-level responsibility/ownership
- Cap...
Predictions for the future of IT
                             1. IT will physically
                             contract ...
Service Centricity

                   Business




 Offshore                              Vendors


                   Se...
Collaborative/Shared Innovation
• Innovation & Incubation Centres
  – Intra-Enterprise Start-up
  – Responsible for full b...
Lessons from Agile
Finally, while EAs yearn to be heard by the business, it
   is too easy to isolate ourselves from the r...
Small is the new Big
                                                        • Agile doesn‟t
                             ...
Small is the new Big
Small is the new Big
Exponential Costs
“Every seven years, we have torn up what
   has gone before and started again …
There have been eight cy...
Agile tools at
Enterprise Scale
Technical Debt
• Result of short term decision making?
• Tool for Technical Cash-flow management?
• Benefits
  •   Early d...
Enterprise Planning Poker
A method to …
• Identify and value capabilities
    • Cost              • Maturity
    • Differe...
Think …
• Cloud is real, here and to stay!
  – The term is confusing
  – Know your audience
  – It‟s not an either/or mode...
Think …
• Business Capabilities
  – Above the process
  – Best of SOA (but not OTT)
  – Business value oriented
Think …
• Small is the new BIG
  – Think small to think BIG
  – It‟s a discipline to be agile
    not an excuse!
  – Agile...
Think …
• Service Centricity
  – A Technology enabled
    Business shift
  – Effects right across the software
    supply ...
Thank you




© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names...
The Cloud, The Enterprise Architect and the CIO
The Cloud, The Enterprise Architect and the CIO
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The Cloud, The Enterprise Architect and the CIO

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The cloud is everywhere with every CIO asking IT where's mine? So what do we do? This deck discusses talking clouds and how business capabilities can get you looking above technology and process plus some thoughts on tools in Agile that coupld be applied at the EA level

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The Cloud, The Enterprise Architect and the CIO

  1. 1. Implications of Cloud Computing for Enterprise Architects Matt Deacon Chief Architectural Advisor, Developer & Platform Group, Microsoft UK www.twitter.com/mattdeacon blogs.msdn.com/matt_deacon
  2. 2. www.iasahome.org/web/uk/certification
  3. 3. Disclaimer* 1. Forward Looking Statements: The following presentation contains certain predictions and forecasts which may possibly/probably, turn out to be wholly inaccurate. 2. Utility: The forward looking nature of this presentation is unlikely to provide any information which will prove useful for addressing near term challenges in your business or personal life. 3. Work In Progress: This is an ongoing piece of work; as such the author reserves the right to right to amend, replace or contradict any premises, argument or logical statements contained herein. 4. Investment Decisions: Under no circumstances should the information be used to make investment or other life changing decisions. The author’s liability shall not exceed the fee received for this presentation. From: Jonathan Murray Worldwide Technology Officer Microsoft
  4. 4. Disclaimer v2
  5. 5. What I really said … The “Cloud” is everywhere these days with every CIO shouting “I want one of those!” A bit like they did with SOA and we ended up with the dreaded ESB! With Cloud the promise of procuring services without the cost and hassle of IT staff is all too appealing for many! But wasn‟t this one of the great promises of “outsourcing” and we all know where that‟s ended up! The problem this time is in many dysfunctional organisations the motivation in moving to cloud is as a way to bypass IT – this can only be a recipe for disaster longer term. blogs.msdn.com/matt_deacon/archive/2010/02/03/talking-at-eac-this-june.aspx
  6. 6. Clouds clouds everywhere Business Offshore Vendors Service Outsource Integrators
  7. 7. Agenda • Talking clouds Build a cloud taxonomy and an approach to using it with key stakeholders from business to IT. • Business Capabilities Discuss how looking above process and implementation at a business's capabilities enables EAs to engage in different discussions about the business. • Future of IT The future IT department in terms of new responsibilities and roles and understand the key architectural considerations of entering into a world of hybrid architectures. • Lessons from Agile Finally, while EAs yearn to be heard by the business, it is too easy to isolate ourselves from the rest of IT along on the journey. We'll look at key lessons from agile development and how these can be applied at the architectural tier and in so doing learn about "technical debt" and how in the right hands, it is a good thing!
  8. 8. Talking Clouds A cloud taxonomy and an approach to using it with key stakeholders from business to IT.
  9. 9. Cloud Computing Defined • Providing IT resources, as a service, in a dynamic and scalable manner over a network* • Five essential characteristics of the Cloud: – On-demand self-service – Broad network access – Resource pooling – Rapid elasticity – Measured service • Public, Private, Community, Hybrid • Software, Platform, Infrastructure „as a Service‟
  10. 10. A Simple Cloud View Provide business services, in a dynamic, efficient, cost effective and reliable manner that add business value* Software as a Service • Complete full function solutions • Salesforce, Microsoft Online (Hosted Exchange etc.) Platform as a Service • Development Environment, Storage, Management • Windows Azure, Google AppEngine, Force.com Infrastructure as a Service • Compute & virtualisation platform • Amazon EC2, VMWare vSphere
  11. 11. A Simple Cloud View Software Software Platform Platform Infrastructure Infrastructure … as a Service
  12. 12. Stakeholder view of cloud? Simple Cost Exec Profitable Agile IT Sales CLOUD Innovation Competitive Production Marketing Predictable Green
  13. 13. Adoption - Extension of Buy Versus Build
  14. 14. Customer Example Build
  15. 15. Customer Example Build
  16. 16. Customer Example
  17. 17. Customer Example
  18. 18. Customer Example
  19. 19. Customer Example
  20. 20. Customer Example
  21. 21. Customer Example
  22. 22. Adopting Cloud You should start with opportunities to move existing Move • Re-house • Transfer functionality into the cloud, including moving physical hosting and moving to a Cloud service. • Augment Systems which can‟t easily be directly moved to the cloud Enhance • Extend can still be enhanced by making use of cloud services. • Re-architect Over the longer term it is necessary to understand what Transform • Re-create opportunities the cloud presents to transform your applications and services. If you have plans to create new internal technology solutions, or you're looking to deliver new products and Build from Create Scratch services, the cloud can provide the perfect platform. Outlook: partly cloudy with sunny spells to follow www.dotnetsolutions.co.uk/Assets/pdfs/Hybrid Cloud White Paper.pdf
  23. 23. Business Capabilities Discuss how looking above process and implementation at a business's capabilities enables EAs to engage in different discussions about the business.
  24. 24. What is a business? Develop Plan Business Customers The business Demand Partners Fulfil
  25. 25. What is a business? Develop Fulfil Demand Procure Resources Provide Advanced Sourcing Purchasing Service Planning Management Plan Business Customers The business Demand Produce Procure Request Resources Manage Partners Product Resources Create Perform Requisition Create Purchase Encumbrance Approva Auction Bids Requisitions Check Processl Acquire/Purchase Resources Choose or Manage Consolidate Verify/ Create Default Purchase Approved Negotiate Purchase Supplier for Item Requisitions Price Orders Goods Catalog by Supplier Logistics Manage RFI/RFQ/ RFP process Purchase Indirect Materials Purchase Capital Goods Purchase Direct Materials & Supplies Fulfil Manage Purchase Manage Automatic Outside Open to Track Open Replenish- Vendor Buy/Blanket POs ment Services POs Approve Manage & Validate Purchasing Contract Methods Payments Manage Suppliers Manage Track Maintain Manage Supplier Supplier Supplier Buyer Relationships Commitments Catalog Performance Provide Supplier Self-Help
  26. 26. Anatomy of a Capability Technology Process People
  27. 27. Anatomy of a Capability
  28. 28. Properties of capabilities • Stable • Describe what not how • Measurable • Value oriented
  29. 29. Valuing capabilities • Value – Cost – Differentiation – Complexity – Maturity • Performance – Duration/responsiveness – Accuracy – Reliability
  30. 30. Capability Heat Maps Border Colour Fill Colour Capability Business Value Performance Financial Management High Low High Human Resources Med Low Med Project Management High Med Property and Advisory High High Low This heat map indicates that Financial Management has a high opportunity value for improvement.
  31. 31. SOA and Capabilities The problem with SO Junkies! • They‟re very compatible • Capabilities moves you above the tech layer • The problem with SOA Junkies are … • They think like Adam Smith - Division of Labour • They think like Ford - Assembly line • They think like Alfred Sloan - Mass production (Management) • They think too much about – Separations of Concerns – Encapsulation – Re-use! • It‟s SOA for SOA‟s sake – This is a technological view – not a business one
  32. 32. Myths • Duplication/synchronisity is not a problem • Share services are a read herring • Normalisation • A universal enterprise architecture/single architecture • Single version of truth • SOA solves integration
  33. 33. Dynamic Specialised Capability Building The Only Sustainable Edge, Hagel, Seely-Brown “Primary purpose of the firm is to accelerate knowledge and capability building … so all can create even more value” • Value Oriented • Business Service Centric • Build shared/open innovation models
  34. 34. Future of IT The future IT department in terms of new responsibilities and roles and understand the key architectural considerations of entering into a world of hybrid architectures.
  35. 35. Adopting Cloud • Never? – “Time and tide …” Copyright Freeform Dynamics 2008 http://www.freeformdynamics.com/fullarticle.asp?aid=318
  36. 36. Convergence or Collision? Physics Dynamic IT Internet Boundary Erosion nomics Eco- SOA Sourcing isation Global-
  37. 37. Move to Multi-Sourcing Iain Mortimer, Chief Architect, BoAML, AIC2010 channel9.msdn.com/posts/mattdeacon/Talking-Architects-with-Iain-Mortimer
  38. 38. IT Organisation of the Future Business Stakeholder Group - Board-level responsibility/ownership - Capability Owners/sponsors - Customers Commercial IP Architecture & Service & Change Department Design Management - Monitoring - IP & Data Protection - Portfolio Management - Integration - SLA/KPIs - Standards & Governance - Service Reporting - Penalties - Roadmap - Scheduling - Prime/ Sub Contracts - Design Authority - Service desk Capability Delivery Team - Supplier/Service Selection - Due diligence
  39. 39. Predictions for the future of IT 1. IT will physically contract with focus 2. ITs boundaries will expand 8. Architecture on value generation 4. Commercials and and Design will Service management will be the key be major IT functions technology related roles 5. But these can be sourced externally too. 3. Services provided to the organisation will IT be at finer levels 6. Data is the key of specialisation asset to be BUT external protected over broker providers process will hide much of this 7. But this too could be hosted externally
  40. 40. Service Centricity Business Offshore Vendors Service Outsource Integrators
  41. 41. Collaborative/Shared Innovation • Innovation & Incubation Centres – Intra-Enterprise Start-up – Responsible for full business P&L – Self-defining, self-organising – Fast scale, fast fail • Innovation partnerships – Shared IP, shared Risk/Reward – Annuity-based – Open new markets – Continued Innovation
  42. 42. Lessons from Agile Finally, while EAs yearn to be heard by the business, it is too easy to isolate ourselves from the rest of IT along on the journey. We'll look at key lessons from agile development and how these can be applied at the architectural tier and in so doing learn about "technical debt" and how in the right hands, it is a good thing!
  43. 43. Small is the new Big • Agile doesn‟t scale • Agile is feature led • Agile doesn‟t care about architecture Standish CHAOS report blogs.msdn.com/matt_deacon/archive/2009/07/31/projects-failures-on-the-up.aspx
  44. 44. Small is the new Big
  45. 45. Small is the new Big
  46. 46. Exponential Costs “Every seven years, we have torn up what has gone before and started again … There have been eight cycles of 'build and scrap' since 1946. The first cost $100m, equal to 7 per cent of business investment at the time. The last cost $2,000bn, or 47 per cent. The next would have cost $5,000bn but we have run out of money: we have come to the end of history as we know it.” Paul A. Strassmann. http://www.strassmann.com
  47. 47. Agile tools at Enterprise Scale
  48. 48. Technical Debt • Result of short term decision making? • Tool for Technical Cash-flow management? • Benefits • Early delivery • Clarification of Requirements • Control over investments • Joint customer & partner responsibility • But how do you repay? • Continual Improvement / Refactoring • Appropriate investment • Tracking/monitoring debt http://c2.com/cgi/wiki?WardExplainsDebtMetaphor
  49. 49. Enterprise Planning Poker A method to … • Identify and value capabilities • Cost • Maturity • Differentiation • Performance • Complexity • Obtain broad stakeholder buy-in – Break down barriers – Develop joint Understanding, Ownership, Responsibility, Trust • Find out what‟s broken! • Take Action!
  50. 50. Think … • Cloud is real, here and to stay! – The term is confusing – Know your audience – It‟s not an either/or model – Many ways to consider adoption – Integration as a Strategy is key
  51. 51. Think … • Business Capabilities – Above the process – Best of SOA (but not OTT) – Business value oriented
  52. 52. Think … • Small is the new BIG – Think small to think BIG – It‟s a discipline to be agile not an excuse! – Agile approaches apply to EA – In a service centric world agile development is key – No more monoliths
  53. 53. Think … • Service Centricity – A Technology enabled Business shift – Effects right across the software supply chain – Creates Collaborative/Open Innovation models
  54. 54. Thank you © 2006 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.

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