Enterprises are using AWS to both develop new sources of customer value as well as reinventing their core. In this session we will provide insights into the successful adoption patterns that have emerged. We will also discuss how enterprises have successfully navigated the people and processes challenges that initially inhibited enterprise wide adoption. Finally, we will provide you with a framework to assess where you are on your Cloud journey and tangible takeaways that will help you accelerate. Speaker: Shannon O'Brien, Enterprise Sales Manager, Amazon Web Services Featured Customer - Strategy&

1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Shannon O’Brien
Enterprise Sales Manager, Amazon Web Services
Jonathan Sharp
Partner, Strategy&
Enterprise Adoption
Patterns for Success
Business

2. Two Common Patterns
Technical DebtInnovation

3. Innovation

4. “If the rate of change on the outside exceeds the
rate of change on the inside, the end is near”
-­ Jack Welch, CEO, GE

5. What is Innovation?
Incremental Disruptive
Large changes
Long cycle times
Small changes
Short cycle times
Rapid, Disruptive
There can be no innovation without experimentation

6. Innovation Focus Areas
Core Applications
(Lift & Shift)
Edge Applications
(Transform)
• Look for quick wins at the Edge
• Digital environments
• Big data & analytics
• Computational problems
• Mobility
• eCommerce
• …..
Demonstrate the Art of the Possible
Find the “Hero” Workload
• Incrementally innovate in the core
• Resist the urge to chase burning
platforms

7. Technical Debt

8. “If your company is suffering from technology
debt and cannot innovate, you must take action
to keep up with technology. Your company’s
future is at stake.”
-­ CFO Magazine

9. Tech Debt
Time
What is Technical Debt?

10. Tech Debt Focus Areas
• Undifferentiated Heavy Lifting
• Cost
• Fixes vs Innovators
• Customer Centricity
70% of IT Budget is BAU, 30% is change

11. What Our Customers Are Doing

12. Challenges

13. “By 2018, 90% of I&O organisations attempting to use DevOps
without specifically addressing their cultural foundations will fail”
-­ Ian Head, Gartner
OPERATIONSDEVELOPMENT

14. “21st-­century Internet-­enabled business
processes, mid-­20th-­century management
processes, all built atop 19th-­century management
principles”
-­ Gary Hamel

15. BUSINESS
CEO, COO, CFO, CMO
TECHNOLOGY
CIO, CTO, CDO
…but the age old gap is inhibiting value creation

16. A technology operating model
for the Cloud-centric Era
Zero Infrastructure –
Anything as a Service
Jonathan Sharp
Partner, Strategy&

17. Strategy&
Cloud models have benefits beyond costs, but a number of
perceived and real inhibitors slow adoption
• Costs: Declining infrastructure costs
(Moore’s law), competitive
environment, pay-­per-­use model, OpEx
for CapEx
• Scalability/ elasticity of supply:
resources scale based on user
demand, transparent resource
utilization
• Manageability: self-­service and
automation, SaaS/PaaS replace
complex legacy solutions
• Agility Faster time-­to-­market
• Mobility: aligned with new customer
behavior, supporting mobile workforces
Expected benefits
of cloud operating models
Key inhibitors
to cloud adoption
21%
Reliability
Technology Complexity
22%
Privacy 26%
Interoperability 27%
Cost 28%
Compliance 30%
Vendor lock-­in 35%
IT Mgmt. Complexity 46%
Security 46%
Mentioned by % of respondents
Source: Northbridge (2013), Strategy& analysis

18. Strategy&
Need a new approach to
buy and manage IT cost
Leveraging digital to gain agility
and faster time to market
Shortage of talent / skills
to operate the new model
Senior executives looking to adopt a cloud strategy face
substantial business and IT challenges
Business challenges IT challenges
Acquiring talent
to manage
product innovation
Attaining economies of
scale due to “shadow IT”
Exposure to new risk
and security challenges
Digitized customer engagement
driving evolving technology needs
Legacy systems make
changes cost prohibitive
Digital agenda
challenges

19. Strategy&
Cloud
demand
Cloud
supply
Transitioning to the cloud requires a mix of new and
enhanced traditional operating model capabilities
Holistic view: Components of an ideal cloud-­centric operating model
Cloud
operations
Cloud
architecture &
integration
Cloud
demand
management
Cloud
vendor
management
Cloud supply management
• Cloud solution
evangelism
and consulting
• Portfolio
assessment
focused on
cloud adoption
planning
• Cloud-­first
architecture
and integration
design
• Multi-­cloud /
hybrid cloud
operations (‘Zero
Infrastructure’
aspiration)
• Strategic cloud
solution sourcing
• Vendor relations
and innovation
exchange
• SLA and vendor
performance
management
• CMO – sales
and marketing
• CPO – product
value chain
• Other CxOs,
e.g., analytics,
financials, HR,
customer
support, etc.
• Public cloud
solution
vendors
• Private/hybrid
cloud solution
vendors
• Ancillary cloud
management
providers
Cloud cost & consumption management Disciplined metering,
tuning and reporting for consumption based cost charge back model
Cloud security & risk management Cloud risk versus benefits
assessments, security policy setting and audits
Workforce/talent management Continuous talent pool mix and skill set
development to support cloud-­focused organization
Cloud transition management Coordination and program management
of initiatives to move to/adopt cloud platforms
• DevOps discipline and tooling for
continuous integration, deployment,
and multi-­cloud operations

20. Strategy&
Organizations can set the path toward a Zero Infrastructure
Footprint by employing a 4-step asset reduction process
4-­step pathway for moving toward a zero infrastructure footprint
• Reduce infrastructure
estate by identifying
and eliminating
underutilized assets
• Shrink remaining
physical asset estate
through virtualization
of servers and storage
• Reduce remaining
physical infrastructure
footprint through
consolidation of
assets within and
across data centers
• Migrate eligible on-­
premise hosted
applications and
services to cloud-­
based solutions
Performance and utilization should be consistent boundary conditions across each step
Decommission
“Kill”
Move to the Cloud
“Ship”
Virtualize
“Shrink”
Consolidate
“Merge”

21. Strategy&
Implementing a cloud-first organization requires a service-
oriented transformation in the talent and delivery model …
Service
orientation
IT-­enabled
business
Digital mind-­
set
IT
Business
Partners
• Traditional development methodologies
• Custom developed applications
• Heavy engineering and technical focus
• Infrastructure & application management skills
• Managing resources & staff augmentation
• Fit for purpose development methodology – agile,
DevOps
• Configuration & integration of SaaS apps / platforms
• Finance and business acumen / business consultation
• Information & service management skills
• Strong-­form vendor management managing outcomes
Knowledge & skills in today’s workforce Knowledge & skills in tomorrow’s workforce
Functional
orientationIT for IT
Analogue
mind-­set
Today Tomorrow
IT Business
Partners

22. Strategy&
… to identify and retain the right skills for tomorrow’s
workforce
Digital keystone skills
Enterprise and
technology
architecture
Business
requirements
management
Vendor
management
User
experience
design
Project and
program
management
Quality
assurance Prototyping Security

23. Strategy&
Organizations must adapt to stay competitive as the benefits
of cloud adoption continue to outweigh risks
Security as primary inhibitor for cloud adoption
reinforced by recently well-­publicized breaches
(e.g., NSA, Apple iCloud, Heartbleed, Sony)
Prevailing opinion that 3rd
party services are
always more risky than doing it yourself
Lack of standards leads to vendor lock-­in and
interoperability issues
Complex system landscape will be replaced by
complex service landscape
General opinion trending in favor of wider
acceptance of benefit vs. risk of cloud adoption
In certain cases stricter security levels can be
achieved through cloud solutions
Regulatory requirements dictate adoption of
cloud solutions in some industries
(e.g., HIPAA compliance)
Keeping pace with the competition and
disruptive technologies makes cloud transition
inevitable
Establish Cloud Security capability to manage the risks of cloud adoption, avoid collecting and
processing un-­curated data in the cloud, and develop a response planin the event of a
breach

24. Strategy&
A cloud transformation entails establishing a business case,
strategy, operating model, and target state architecture
Determine the business value of the cloud solution
chosen by an enterprise and evaluate it through the
lenses of cost, usability, functionality and agility
Value assessment & business case
Enable organizations to develop a
unified cloud strategy that aligns
business vision, values and
objectives with a cloud solution
Strategy & roadmap development
Define the processes,
organization structure, roles,
skills, and governance required
to effectively operate in a cloud
environment
Cloud operating model
Assess cloud adoption readiness
based on infrastructure,
governance and process maturity
Readiness & maturity assessment
Define cloud functionality to
meet business objectives,
develop architecture to achieve
these functionalities, design
capabilities to manage cloud
services
Target state service &
architecture development
1
2
3
4
5
Baseline infrastructure and application
portfolio estate to determine feasibility of
the organization’s cloud adoption
aspirations
Baseline assessment
0

25. Strategy&
An organization’s cloud transition play depends on its tech
affinity and size
Enterprise size
Medium-­sized Large-­scale
Cloud capabilitiesExpertBasic
Tech vanguards
• Aggressively adopting cloud models
• Modern, virtualized application portfolio
• Young, highly skilled IT personnel
Lower-­tech mid-­caps
• Lack of capability to
create solutions
matching capabilities of
cloud offerings
• Difficult to recruit
experts to implement
cloud services
• IT not seen as a
key business enabler
Complex blue chips
• Cloud required for
reducing complexity,
improving agility and
innovation
• Large legacy portfolio,
heterogeneous & highly
specific application
portfolio
Three archetypes of cloud plays
Cloud adoption is mandatory for tech
affiliated companies in order to stay
agile and competitive from an innovation
and cost profile perspective
Large corporations should at
the minimum adopt cloud to
reduce complexity of their
business support functions
Mid-­sized non-­tech
companies should
selectively adopt cloud to
improve cost profile and
innovate
GE
Pfizer
Ford
3M
Bank of America
Exxon
Netflix Citrix
Adobe
Expedia
Maritz
Alliant Energy
Wendy’s
Tupperware
Hilton Wiley

26. Strategy&
Each organization needs to decide how far it needs to push
the operating model choices
Low relevance High relevance
Cloud demand management
Cloud architecture &
integration
Cloud operations
Cloud vendor management
Cloud cost & consumption
administration
Workforce / talent
management
Cloud security & risk
management
Complex blue chips Lower-­tech mid-­caps Tech vanguards

27. Strategy&
Cloud is being used to address the most important business and technology challenges
The cloud paradigm is delivering ‘Zero Infrastructure – Anything as a Service.’
Tech operating models will need to evolve and develop a new set of cloud-­centric capabilities
Where to start, and where to focus, will depend on your industry
Cloud capabilities provide significant advantage for large scale transformations

29. The Great Stall

30. Most transformation programs will stall in the field
accelerate
through the
stall
10%
experience a
prolonged stall
at around 20%
adoption
70%
never recover
20%

31. 10 things you need to do differently
in your Cloud Transformation
Program…

32. Admit you have a Problem
Change & Incentivise Team Members
Identify the Beachhead
Identify the Bowling Pins
Re-­position
1
2
3
4
5

33. Re-­prioritise the Offering
Work on the Ecosystem
Be Heard and Seen
Lead
Automate
6
7
8
9
10

34. Conclusion
Two Common Patterns
Cloud requires Cultural Change not just Technology Change
Be aware of Stalling
Innovation Necessary for Future
Tackle Tech Debt Before it’s Too Late

35. AWS Training & Certification
Intro Videos & Labs
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help you learn to work
with 30+ AWS services
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Training Classes
In-­person and online
courses to build
technical skills –
taught by accredited
AWS instructors
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AWS Certification
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skills and expertise –
identify qualified IT
talent or show you
are AWS cloud ready
Learn more: aws.amazon.com/training

36. Your Training Next Steps:
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37. Thank You