AWS Techical Due Diligence to post transaction execution for M&A
The AWS Value Creation Practice focuses on generating strategic and financial returns for investors and their company portfolios by implementing a structured approach to technical due diligence (TDD) and post-acquisition value creation. It encompasses various aspects, including migration, modernization, cost optimization, and support for cloud adoption in the first 100 days and beyond, aiming to enhance operational efficiency, reduce technical debt, and drive innovation. The practice facilitates a more robust financial governance model, aligning regulatory requirements and ensuring enhancements in security and compliance through continuous assessments and tailored recommendations.
AWS Techical Due Diligence to post transaction execution for M&A
1.
AWS Value CreationPractice Overview
Collective focus on creating strategic and financial returns for investors and their
portfolio of companies
Begins in Diligence
Works Backwards from the Investment Strategy
2.
M&A Lifecycle: Hypothesisto Exit
Firm
Investment
Hypothesis
• AWS support of
PE Firms
investment
hypothesis
• AWS support for
funds hypothesis
• Impact of cloud
and data on
hypothesis
Technical Due
Diligence
• Playbook and
runbook
• Post TDD 48 hour
report
• AWS proposal for
first 100 days
• Recommendation
s on migration
/modernization,
innovation, go-to-
market
First 100 Days
• Cloud Economics
Business Case
• Value
Benchmarking
• Cloud Capability
Assessment
• Transformation
Journey Plan and
Cloud Manifesto
• Cloud Adoption
Office
• Security and
Compliance
Assessment
• Cloud in a Box
reference
architectures
• Identify Partners
First Six
Months
• Non-AWS –
Migrate and
Modernize
• AWS – Cost and
platform
optimization
• Training and
enablement
• Cloud Operating
Model
• Operational
Readiness
Reviews
• Technical Debt
reduction
• Digital Innovation
Workshops
Operate
• Cloud Capability
Assessment every
6 months
• Operational
Excellence on
AWS
• Automate
• CI/CD
• Focus on
innovation and
disruption
• Cost Optimization
• Correction of
Errors
• QBRs
One year
before sale
• ‘Fit for sale’
program – data
fabric, data
analytics, AI/ML,
Cloud Native
• AWS Marketplace,
SaaS, APN
AWS Proactive
Engagement
Pre-Acquisition Post-Acquisition
Value Creation
3.
AWS Value CreationPractice
Cloud Value Creation Levers
Accelerate value realization by identifying value creation levers in diligence, reducing cost and risk in first 100 days,
re-investing in growth and innovation for competitive advantage.
GrowCost Risk Innovate
Unlock hard-dollar savings from
reduced infrastructure costs and
improved staff productivity, while
providing a robust financial
governance model to sustain in the
long-term.
Improve overall security posture,
align to specific regulatory
requirements, and ensure
operational and financial risk
reduction through robust (and
on-going) reviews and
optimization of environment.
Collaborate, develop, and go-to-
market on unique next-gen
initiatives that both delight end
users and tap into new revenue
streams/business lines.
The Rule of 40. A software
company growing at a combined
growth rate and profit margin of
40% is worth more than a legacy
business growing at 5% with 30%
margins.
Mission: Create Long-Term Differentiated Business Value
BridgeDiligence Integration
Undifferentiated Differentiated
4.
Cloud Value CreationLevers Deep Dive
Well-Architected Reviews
Digital InnovationCloud Security Assessments
AI/ML Workshops
Modernization Readiness Review
Transformation Strategy Workshops
MigrationTooling Executive Briefings (EBCs))
Immersion Days
AWS Curated Playbooks, Runbooks, Workshops, Programs, and Offerings
Cloud Economics Business Case
Technical Debt Discovery
Experienced Based Accelerators
Workshops
AWS SaaS Factory and Marketplace
MigrationTCO and ROI
FinHacks
PE Accelerate Discounts
Migration Credits
ProServ InvestmentsTraining Credits
AWS Platform Discovery OptimizationCost Optimization Reviews
Value Benchmarking
Industry Solution Group
IT Landscape Discovery
5.
90% the sameprocess and assets apply for TDD
Acquisitions
New business and IT
discovery
Separate cloud
environment
Potential organization
and process disruption
Separate cultures
Divestitures
Existing IT discovery
Separate Cloud
environment
Migrate < 6 months
Separate or combined
cultures
Assimilatio n
Mergers
New and existing business
and IT discovery
Cloud environment
integrated with existing IT
environment
Aligning organization
structures and processes
Cultures combined
Au to n o mo u s S p e e d
Acquisitions Vs Mergers Vs Divestitures
AWS Deliverables
• Flashreport with hypothesis
• The purpose of this document is to provide prescriptive recommendations. The strength, weaknesses, opportun
threats in this document are based upon the intelligence gathered during the TDD. The document provides
monetary value realization or value benchmarks – empirical cost savings, staff productivity, resilience, and busin
percentage savings, revenue production, and efficiencies gained, from customers that have migrated or mode
AWS, or innovated or optimized their existing AWS environment.
• ROI and TCO
• Migration, modernization, and re-platform person hours, and AWS run time costs based upon AWS empirical da
industry averages, and a set of assumptions.
• Value Benchmarking Reports
• Results based on four cloud value benchmarking areas that provide a portfolio company industry based insight
better outcomes.
• Cloud Capability Report
• Results in a better understanding of the readiness of a portfolio company to undertake a cloud mig
modernization effort, innovative pilot project, or digital transformation initiative.
8.
Working Backwards fromthe Customer
Non-AWS customers
• What is the cost savings of running on AWS?
• How long and how much will it cost me to migrate or modernize to AWS?
• How can I reduce my operational costs by moving to AWS?
AWS customers
• How can I optimize the run time costs of the current AWS environment?
• What does the current AWS environment look like? What the AWS Services are being
utilized? What AWS Services are being used the most?
AWS and non-AWS customers
• Is the AWS, on-premises, or co-location platform optimized?
• What are the cloud capabilities of the customer?
• How do I reduce technical debt?
• Are best practices being used?
9.
Prescriptive Guidance
Playbook
Contains therequisite AWS services,
product offerings, tools,
mechanisms, reference
architectures, and frameworks for
users to employ during the TDD. By
working backwards from the
customer, the AWS Value Creation
Practice (VCP) generates the assets
necessary to deliver on the end goal
of accelerated value creation for
customers.
Runbook
Contains the execution order,
escalation procedures,
communication methods, and AWS
owners for the mechanisms and
tools defined in the playbook.
Contains a prescribed list of
questions to ask prior and during the
on-site TDD. The questions are
different based upon whether the
target is running on-premises or in
AWS.
10.
Technical Due DiligenceJourney with AWS
Preparing for TDDs Execution of Technical Due Diligence
Months before
First TDD
On-site
Five days or less Purchase Decision One Month after
Purchase decision
Day 0
Instructor lead and
self service
education
• Post mortem of TDD
• AWS delivers TDD
reports
AWS Proposal for
100 day plan
AWS helps with
100 day plan
Preparing for TDDs
• Playbooks
• Runbooks - Uses Cases / hypothesis questionnaires
• Self service training
• Instructor lead training
• GameDays
TDD with the target
• ROI and TCO Analysis
• Value Benchmarking
• AWS Technical Due Diligence report
• Cloud Capability Assessment Report
100 day planning
• Value Creation Acceleration Plan
• Customer case studies, reference
architectures, and other supporting
documents
• Enhancing the financial models
• Workshops and immersion Days
• Pilot migrations and/or innovations
Two weeks
Before on-site
PE and/or
consulting firm and
bank analysis
documents to AWS
AWS on-site or
remote support
(email, Chime,
Slack)
AWS understands
PE fund investment
hypothesis
Post-Transaction
11.
Common Use Casesand Scenarios : Non-AWS Environment
Migration. Relocate or rehost of on-premises workloads to
AWS. AWS provides TCO, ROI, AWS cloud in box solutions,
and value benchmarking.
Database re-platform to AWS. Re-platform RDBMS and noSQL
databases to Amazon EC2, Redshift, Aurora, RDS, or another
managed databases. AWS provides TCO, ROI, AWS cloud in
box solutions, and value benchmarking.
Application Modernization. Modernize the applications that
provide the highest cost savings or have the highest business
value – 10 or less critical applications. Modernize to a
microservices, cloud native architecture. AWS provides TCO,
ROI, AWS cloud in box solutions, and value benchmarking.
Hybrid, multi, and poly cloud. Architect, provision, manage,
operate, and secure a low latency hybrid/multi/poly cloud.
AWS provides references architectures, AWS cloud in box
solutions, and AWS services.
12.
Common Use Casesand Scenarios : AWS Environment
Cost Optimization. AWS determines the cost optimization
initiatives to reduce cost through AWS purchasing options,
instance types, spot, elasticity, etc. AWS provides
recommendations and potential cost savings.
Platform Optimization. AWS Well-architected review to
determine optimizations in the areas of cost, operations,
security, performance, and reliability - including elasticity.
AWS provides recommendations and potential cost savings.
SaaS. AWS determines to potential to modernize the AWS
environment to a multi-tenant SaaS environment. AWS
provides cost savings and revenue improvement value
benchmarks.
Application configuration and provisioning. AWS provides
recommendations to automate the configuration and
provisioning of applications through CI/CD. AWS provides cost
savings and revenue improvement value benchmarks.
13.
Common Use Casesand Scenarios : AWS and non-AWS Environments
Technical Debt. AWS determines areas of technical debt reduction
and potential improvements to reduce technical debt, as well as
future proof architectures. AWS provides cost savings and revenue
improvement value benchmarks.
Data Lake. Re-platform on-premises data lakes to AWS, or
modernize existing AWS data lakes to AWS cloud native solutions.
AWS provides TCO, ROI, AWS cloud in box solutions, and value
benchmarking
AI/ML. Re-platform on-premises DaaS solutions to AWS, or
modernize existing AWS DaaS solutions to AWS cloud native
solutions. AWS provides TCO, ROI, AWS cloud in box solutions,
and value benchmarking
Remote workers. Re-platform on-premises AI solutions to AWS, or
modernize existing AWS AI/ML solutions to AWS cloud native
solutions. AWS provides TCO, ROI, AWS cloud in box solutions,
and value benchmarking
Infrastructure configuration and provisioning automation. AWS
provides recommendations to automate the configuration and
provisioning of applications through Infrastructure as Code and
AWS hybrid cloud infrastructure automation services. AWS
provides cost savings and revenue improvement value
benchmarks.