Why Enterprise Architecture Must drive Cloud Strategy and Planning

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  • Source: Gartner, Forecast: Public Cloud Services, Worldwide and Regions, Industry Sectors, 2010-2015Source: IBMTech Trends Survey. October, 2010. Source: Corp Exec Board
  • Note to Presenter: “domains” are provided by the customer. Business Productivity and Infrastructure capabilities are source from Microsoft’s IO Model
  • Note to Presenter: Reference Appendix B for Industry Benefits
  • Note to Presenter: Discuss the risk tolerance for each of the cloud risk control area and capture the risk tolerance based on the color scale
  • Why Enterprise Architecture Must drive Cloud Strategy and Planning

    1. 1. Open Group Conference San Francisco EA’s Must Drive Cloud Strategy & Planning Mike Walker | Enterprise Strategy and Architecture | Microsoft Corp. http://www.MikeTheArchitect.com
    2. 2. Why Enterprise Architecture Must drive Cloud Strategy & Planning 2
    3. 3. Who am I? 3
    4. 4. State of Affairs Today's Session Why Enterprise Architects End to End Method How Microsoft builds Cloud Strategies 4
    5. 5. End to End overview of the Cloud Strategy & Planning (CSP) Framework What to Expect No detailed demos will shown. Expect detailed modules to cover these aspects Why CSP is important to you and your engagements 5
    6. 6. Cloud is Here Gartner estimates, over the next five years, enterprises will spend $112 billion cumulatively on cloud services Over 80% of IT leaders indicate that their staff will need to develop new skills. 91% of IT Professionals anticipate in 5 years cloud will overtake on-premises computing 6
    7. 7. How is this different from all other technologies ? 7
    8. 8. Pervasive and Deep Impacts 8
    9. 9. The Business Demands always on capacity 9
    10. 10. We’ve been down this Road before… 10
    11. 11. “50% of all Technology Initiatives are a Waste of money…. “ 11
    12. 12. “50% of all Technology Initiatives are 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
    13. 13. Cloud is Different Pressures on the CIO Disruption in Technology Enablement 13
    14. 14. Who do we turn to? 14
    15. 15. 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
    16. 16. Why the EA Competencies Methods Tools 16
    17. 17. Competencies Cost Control Governance, Regulation and Security Advances in Technology (e.g., Cloud, CoIT, etc.) Increased Business Demands Market Disruptors Optimize IT Manage Technology Disruptors Heightened Customer Demands IT Performance and Responsiveness Economic Impacts Aid with Business Problem Solving Talent Management 17
    18. 18. Enterprise Architects connects Strategy to Execution 18
    19. 19. Enterprise Architects connects Strategy to Execution without implementation is “Vision hallucination." – Benjamin Franklin 19
    20. 20. Connecting Strategy to Implementation Strategy Initiatives Execution Programs & Projects
    21. 21. What Methods can be used? 21
    22. 22. Leverage a Solid Foundation
    23. 23. Tailor a Solid Foundation
    24. 24. Apply TOGAF to Cloud Strategy and Planning Strategy Rationalization Distill the business and IT strategies to identify cloud ready capabilities that align to strategy and provide the maximum amount of value with low risk to the business. Cloud Valuation Evaluate a prioritized set of cloud opportunities. Assess business and technology capabilities based on the value and risk they bring the company. Business Transformation Planning Prioritize investment opportunities, balanced across the enterprise and integrated into a transformation roadmap.
    25. 25. The Cloud Strategy & Planning Framework (CSP) 25
    26. 26. The Cloud Strategy & Planning Framework (CSP) Business Value Driven Methodology enabling selection of the right cloud investments 26
    27. 27. Business Value Driven Methodology Market and Business Demands Business Strategy Information Technology Strategy Value Drivers Enabling Capabilities 27
    28. 28. The Cloud Strategy & Planning Framework (CSP) Business Value Driven Methodology enabling selection of the right cloud investments Embraces & Extends Proven Cloud Practices 28
    29. 29. Embraces & Extends Proven Cloud Practices 29
    30. 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 30
    31. 31. 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
    32. 32. Cloud Strategy & Planning Method Strategy Rationalization Distill the business and IT strategies to identify cloud ready capabilities that align to strategy and provide the maximum amount of value with low risk to the business. Cloud Valuation Evaluate a prioritized set of cloud opportunities. Assess business and technology capabilities based on the value and risk they bring the company. 32 Business Transformation Planning Prioritize investment opportunities, balanced across the enterprise and integrated into a transformation roadmap.
    33. 33. Cloud Strategy & Planning Method Strategy Rationalization 33
    34. 34. Why Rationalize & Distill Value Value Chain, Shop, Network Functional & Organizational Decomposition When Capability Map Benefits Dependency Network Who Motivation Model How What Strategy Maps IT Portfolio Plan Roadmap Business Transformation Plan 34
    35. 35. Microsoft Confidential Understanding Value
    36. 36. Microsoft Confidential Understanding Value
    37. 37. Strategy Example: Cloud Patterning Matching Channel Mgmt. Distribution Claims Sales Business Mgmt. Contract Mgmt. 37 Cloud Valuation CloudBusiness Defined Transformation Planning
    38. 38. Strategy Value & Risk Impact Assessment Tool 38 Cloud Valuation Business Transformation Planning
    39. 39. Strategy Cloud Valuation Enterprise Risk Tolerance Assessment Tolerance 1. ?? Tolerate Net Loss to the Business Tolerate No Realization of Business Objectives 39 Business Transformation Planning
    40. 40. Strategy Capability Prioritization Cloud Valuation Business Transformation Planning Prioritized list of cloud opportunity candidates Prioritization Analytics Risk Capability Business Organization al Readiness Technical Readiness Executive Rollup Technical L M M M H H VH Claims Governance L Distribution Operations Architectural Fit L H VH H M H 1. 2. 3. 40
    41. 41. Cloud Strategy & Planning Method Cloud Valuation 41
    42. 42. Strategy Business Capabilities Heat Map Cloud Valuation Business Transformation Planning Management Control & Reporting Core Business Generic Support Functions Internal Control Functions Planning Distribution Input Management HR Management Reporting Proposition Business Partner Management Facility Management Risk Management Distribution Channels Support Financial Management Financial Management Production Reinsurance Employee Event Management Primary Purchasing Incentives and Commissions Secondary Purchasing Document Management IT Management Output Management Communications Management Financial Processing 42
    43. 43. Strategy Cloud Valuation Business Transformation Planning Cloud Risk Assessment Method and Framework Risk Assessment Method Identify Assess Remediate Plan Identify the risks related to deploying a solution in the cloud Assess risks for likelihood and impact to solution components Develop solution or strategy for risk remediation Incorporate final risk ratings into cloud adoption planning Risk Assessment Framework
    44. 44. Cloud Strategy & Planning Method • Identify Clarify Business Intent • Identify enabling Innovation-based solutions Analyze the solutions’ based on Risk & Business Value • Prioritize High Risk Solutions with the Highest Business Value • • Assess Detailed assessment • Determine risk tolerance the organization is willing to accept • Understand impact and probability • Remediate Apply risk assessments to mitigation architecture & planning • Determine if solutions are eliminated based on risk tolerance • Identify options and architectures to mitigate risk • Plan The key input into the prioritization activity in the Business Transformation Planning phase • Determines one or more risk mitigation plans for selection 44
    45. 45. Microsoft Confidential Bridging Business and IT Capabilities Together
    46. 46. Strategy Cloud Valuation Example: Unified Communication Business Transformation Planning Deploy Unified Collaboration for <Enterprise> on using SaaS in a Partner Cloud SaaS 3.08 3.40 3.52 1.00 PaaS 1.00 1.00 1.00 1.00 IaaS 3.16 3.32 3.36 1.00 Traditional Private Partner Valuation Key Exponential Returns High Returns Moderate Returns Marginal Returns Avoid Investment Public Value Architecture Risk Reduce 4 - Important Complexity of IT Target Model Feasibility 4 - Replace Capability Requirements 5 - Ideal Fit Security Requirements 4 - Lack Experience Data Requirements 3 - Partially Compatible Reduce P&C Risk Increase Value and Lower IT Spend Enable Positive IT Experience Identity & Access Mgmt 4 - Federation w Config Most Trusted Insurer 5 4 3 2 1 Readiness Business 2 - Low Risk Organizational 4 - Minor Gaps 1 - Not Aligned Governance 2 - Low Risk Technical 4Customization 4 - Important Technical 1 - Marginal Risk 4 - Important Operational 1 - Marginal Risk 1 - Not Aligned 46
    47. 47. Cloud Strategy & Planning Method Business Transformation Planning 47
    48. 48. Strategy Cloud Valuation Example: Opportunity Prioritization Opportunities in context of value and risk Based on risk and value, the Collaboration, Client Services and Unified Communications opportunities are the low “hanging fruit” High Risk Low Datacenter Servers provide high opportunity, but has higher risk Low Business Value 48 High Business Transformation Planning
    49. 49. Opportunity Dashboard Strategy Business Transformation Planning Cloud Valuation Initiative Overview Pattern Risk-Adjusted Value Deploy Client Service capabilities for Contoso using Infrastructureas-a-Service (IAAS) in a Private cloud. Drill down into what client services workloads Contoso wishes to provide: 1. Client Management and Virtualization 2. 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) Key Benefits • • • Higher ROI and reduced TCO Reduced security breaches and end-user disruptions Mitigates business and compliance risk Reduce Complexity of IT Reduce P&C Risk Increase Value and Lower IT Spend Enable Positive IT Experience Most Trusted Insurer 4 1 4 3 4 4 High Value • Key Risks/Challenges Business Risk Governance Risk 1 1 This capability directly supports all employees, business units, and business processes Technical Operational Risk Risk 2 3 2 Low Risk Readiness Technical Readiness Maturity Integration Dependencies Virtualization platform Security infrastructure Integration with HP BTO Organizational Readiness Technical Readiness Score 5 Proven Technology Organizational Concerns Ability to rationalize Current multi-ESP situation Staff Concerns Limited knowledge of client platform within Contoso due to outsourcing Organizational Readiness Score 3 Semi-prepared Organization
    50. 50. Strategy Cloud Valuation Example: Cloud Pattern Matching Name: Mobile Initiative Solution(s): Business Capability: L1: Payments L2: Mobility IT Capability: CRM, Portal, Integration, BI Customer Portal, Mobile App, Micro-Payments Engine, Integration Bus, Reporting SaaS A1. Customer Portal A3. Reporting PaaS A2. Online Banking Platform IaaS A4. Data Warehouse – Customer Master A5. Core Banking Systems A7. Micro-Payment Engine Public Private Community Traditional Business Transformation Planning
    51. 51. Strategy Cloud Valuation Business Transformation Planning Example: Cloud Pattern Matching Internet Internet Clients On Premises - Banking Applications Azure Gateway Banking Solution Account Balance Adapter Balance Data Legacy Balance System Web Application Azure Connect Credit Card Adapter Web Services Mobile Banking Application Web Services Interfaces Credit Card DB Credit Card Systems Banking Solution Customer Account Adapter Account DB Customer Account Systems
    52. 52. Microsoft Confidential Example: Cloud Roadmap
    53. 53. Recap & Conclusions 53
    54. 54. Recap: Method Strategy Rationalization Cloud Valuation Business Transformation Planning • Project charter defining the scope of the analysis • Strategic vision for cloud computing • High-priority capabilities for cloud migration • Supportive Cross-Organization Analysis Teams • Current state capability assessment • Target capability service and deployment patterns • Defined investment opportunities • Prioritized and integrated into a business transformation roadmap • Ensures cloud investments are aligned with IT and business strategy • Ensures a clear understanding of the value and risks of the future strategic business model for cloud computing • Provides a portfolio of investments, balanced across the enterprise and its capabilities • Unlike many thinly-veiled technology-specific approaches, Microsoft presents a holistic approach which prevents fragmentation • Microsoft’s capability and assessment frameworks and expertise enable a smooth, transparent, valuation process • Enables ongoing management of investments and continued aligned between strategy and architecture 54
    55. 55. Recap: Method Qualified Quantified Strategy Rationalization Cloud Valuation Planned Business Transformation Planning • Project charter defining the scope of the analysis / ASOW • Strategic vision for cloud computing • High-priority capabilities for cloud migration • Supportive Cross-Organization Analysis Teams • Current state capability assessment • Target capability service and deployment patterns • Defined investment opportunities • Prioritized and integrated into a business transformation roadmap • Ensures cloud investments are aligned with IT and business strategy • Ensures a clear understanding of the value and risks of the future strategic business model for cloud computing • Provides a portfolio of investments, balanced across the enterprise and its capabilities • Unlike many thinly-veiled technology-specific approaches, Microsoft presents a holistic approach which prevents fragmentation • Microsoft’s capability and assessment frameworks and expertise enable a smooth, transparent, valuation process • Enables ongoing management of investments and continued aligned between strategy and architecture 55
    56. 56. Recap: Tools & Templates Tool Tool Description Description Charter – Template to authorize the project and define scope, stakeholders and timeline Capability Prioritization – Further refinement of each business capability with respect to cloud risk, fit and readiness Enterprise Capability Assessment – Enterprise level 1 capability analysis to segment a customers portfolio for the discovery of cloud opportunities. Cloud Envisioning Workshop (CEW) – An executive level workshop to establish terms and educate along with cross-enterprise facilitated assessments. Business Heat Map – Graphical view of an organization based on business capabilities and cloud attributes like risk, value, fit and readiness Capability Profiling – Rollup dashboard of a given capability to determine the level of value and risk it provides in the context of cloud. 56
    57. 57. Recap: Tools & Templates Tool Tool Description Description Cloud Pattern Valuation – Robust metric driven analysis tool used to determine which cloud service and deployment models should be used for a solution. Cloud Opportunity Dashboard – A dashboard that provides a complete rollup of the Cloud Valuation assessments into one sheet to support decision making. Cloud Pattern Matching – Graphical tool to connect service and deployment models with business or technical capabilities. Cloud Strategy Presentation – Template to be used to present findings back to the customer. Portfolio Analysis – A tool to plot cloud opportunities to a grid based on Business Priority, Value, Risk and Effort to aid in the roadmapping. Cloud Taxonomy –This taxonomy provides a way of rationalizing cloud specific cloud implementation decisions. 57
    58. 58. Recap: Tools & Templates Tool Tool Description Description CSP Project Planning – Examples of a defined project engagement, with timelines, milestones, activities and deliverables. Cloud Risk Framework – A risk reference model that identifies the key aspects of cloud risk to be assessed. Cloud Risk Method – Process for applying a risk classification to a potential cloud solution. 58
    59. 59. Conclusions 59
    60. 60. Thank You! mikewalk@microsoft.com http://www.MikeTheArchitect.com Follow me on Twitter @MikeJWalker 60
    61. 61. Resources Related Sessions • Keynote: Making Business Drive IT Transformation Through Enterprise Architecture • Track: Architecting the Cloud Mike 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 - • The Enterprise Architecture Capability Model (EACM) - http://www.mikethearchitect.com/2011/03/iq-isnt-enough-enterprise-architects-mustbalance-with-eq-driven-approaches.html http://www.mikethearchitect.com/2010/07/the-enterprise-architecture-capability-modeleacm.html
    62. 62. © 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 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. 62

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