AWS Private Equity Transformation Advisory

© 2020, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark.
September 2021
Tom Laszewski, AWS Private Equity Transformation Advisor
Transformation Advisory
Private Equity Program

What does a real customer journey look like
Initial
Interest
What’s my vision
and plan?
What are the
gotchas?
X
How will our
processes change?
How do I
get broader buy-in
What will my
Team look like?
Wait, migration
isn’t my starting
point
X
Potential stasis or inability to move ahead
X
X
What have other
customers done
EBC
What foundation
should I setup Large Scale
Customer
Adoption
What’s our first
step with the cloud
Help me
move workloads
at scale
X
X
How do I get support
from my key
stakeholders
X
What does my
Three year vision look like
and what do we do next
X
X
What do I need to
do today, before going
all in
Start Enterprise
Deployment
Exec
Commitment
Awareness / Interest Scale/Execution
Plan/Readiness/Experimentation
X
What should I
do today?
X
X
X X
X

Where organizations falter when moving to the Cloud
1. Lack of clarity as to who is the executive sponsor – is there a single-threaded owner?
2. Lack of buy-in from the rest of the executive team, especially the CEO and CFO
3. Mixed signals – declaring cloud adoption is strategic and then delegating accountability
4. Not fully understanding cloud capabilities – viewed as a datacenter alternative in the cloud
5. We’ve always done it this way – overlaying existing process on cloud and expecting similar results
6. Being held back by the cloud antibodies within middle management – cloud is not for us, nephophobia
7. Taking a too conservative approach – lack of aggressive timeline increases risk, consensus building
8. Deferring the tough conversations – in a product-led organization, what is the role of IT?
9. Over-rotating on building undifferentiated work – CI/CD pipelines are commodities
10. We’re a DevOps shop – in theory, but not in practice

Understanding the Different Personas
PE TA engagements
breakdown by Exec
Sponsor
CIO (31%) CTO/CPO (35%)
Inf. & Ops (12%) Other (22%)
Each Transformation Advisor engagement is
aligned to the executive sponsor person

Private Equity Cloud Transformation Advisor
Reduction of time and money for cloud
migration/modernization initiatives while
accelerating revenue growth through the
increased adoption of AWS services.
.
Technical Executive
• Transformation coach
• Access to AWS
transformation best
practices
• A two-in-a-box partner
PE Firm
• Elevate AWS to partner
status
• Alleviate significant
burden on operating
partners
• Objective third-party
perspective
Portfolio Company
• Avoid migration
stagnation
• Reduce time to
market
• Risk mitigation
Cloud transformation advisor to the CIO /
CTO of Private Equity firms and their
portfolio companies.
The PE Cloud Transformation Advisor is
dedicated to a portfolio company between
an 8 to 12 week engagement; define the
transformation tenets and guiding
principals, assist developing the business
case, produce the cloud journey map,
establish the Cloud Enablement Engine,
document KPIs, identify partners, train
CxOs, and define the Cloud Operating
Model.
Trusted Cloud Whisperer Impact and benefits

Recognized Cloud Transformation Leader Program (RCTL)
Private Equity firm portfolio companies avoid
cloud and digital transformation stall through
prescriptive guidance, communication, and
governance.
.
Candidate
• Career advancement
• Access to a
community of RCTLs
• Public
acknowledgment
PE Firm
• Human capital
advancement
• Standardization of
best practices
• Removal of
impediments to cloud
adoption
Portfolio Company
• Reduced migration
risk
• Accelerating
transformations
• Removing people,
process and
technology blockers
A 6 to10 week transformation advisory
program for technology leaders within a PE
firm or its portfolio companies.
Accreditation is achieved upon the
successful conclusion of a cloud or digital
transformation initiative in combination
with the development or authoring of three
cloud transformation assets.
Technical Leader Advisory Impact and benefits

Transformation Advisor Testimonial
Tactical Engagement
Industry: PE firm corporate IT
Before: 1) CCoE roles and responsibilities 2) Cloud Manifesto 3) Portfolio analysis and migration
strategy
After: 1) AWS Professional Services Advisor team CCoE maturity model assessment, and
implementation of CCoE 2) A series of 4 day migration Experience Based Accelerator workshops
(‘parties’) 3) Moved one core application, Jenkins, and MDA over to AWS in one week
CTO
“The help the AWS Private Equity TA team provided early on was
priceless.”
Post TA Engagement Quote working with AWS migration SMEs:
“We got a weeks worth of work done in 1 day”

Tactical Engagement
Industry: Software portfolio company
Before: 1) Lack of IT migration strategy 2) Windows is best on Azure 3) Multi-cloud struggles
After: 1) Migration disposition strategy – not just lift and shift 2) Multi-cloud approach-
databases to AWS 3) COM and CCoE plan
CIO
“These kinds of programs are definitely an area where you guys are
miles ahead of Azure.”

Macro Goals Anchor Business Outcomes and Metrics
Strategic Engagement
Increase revenue Innovative Products
Drive operational
excellence
Macro goals
Increase revenue
per customer
Increase customer
renewals
Improve gross
margins
Increase release
frequency of
product
Build engaging
educational
products
Business outcomes
Achieve SLAs >=
99.9%
Achieve >95%
renewal rate
Target 2 weeks
Launch X new
products per year
Increase revenue
>35% per year
Metrics
• Customer Acquisition Costs (CAC)
• Customer Lifetime Value (CLTV)
• Revenue Per Customer
• Gross Margins
• Cost of Good Sold (COGS)
• Renewal Rate
• Lead Conversion Rate
• Leads Generated
• Cost Per Acquisition
• Net Promoter Score (NPS)
• Churn Rate
• Annual Recurring Revenue (ARR)
Sample Business Metrics:
Sample
Success - after months of failed attempts the CPO views himself as the
cloud executive sponsor and responsible for CCoE, President of Portfolio
Company

Strategic Engagement
Industry: Travel and transportation products and services company offering financial,
commercial, industry, and cargo solutions
Before: 1) Technical Due Diligence 2) 100 post transaction plan 3) Cloud Value Creation
Opportunities
After: 1) Overcame Oracle EUL challenges - licensing 2) Migration Acceleration Program 3)
Partner plan and collaboration
Private Equity
COO
COO
“Tom assisted the Value Creation Equity Partners team in our evaluation of
Timely Target, which we acquired in October. We are now looking at a
potential transaction that would be a significant add-on acquisition for
this acquisition, and we’d appreciate Tom’s assistance again as we evaluate
the target’s technology and opportunities for it to work more closely with
AWS.” Managing Director

Recognized Cloud Transformation Testimonial
PE Firm
Industry: PE firm
Individuals accredited: Principal, Associate Principal
Deliverables/Outcomes: Principal - 1) Security white paper (AWS, Azure, CGP) 2) Cloud
Migration Strategy (stochastic modelling) 3) Cloud Economics (sigma)
Associate Principal – 1) Cloud Economics Business Case (EBITDA) 2) Cloud Journey Maps 3)
Migration and Modernization Strategy
Global
Cloud
Business
Leader
“As a proponent of the Recognized Transformation Leader Program, I am thrilled
that Grace Hopper and Alan Turing have been recognized as the first accredited
cloud transformation leaders. The assets they produced under the program have
already had a positive impact at Perfecto Portfolio Company and the Premier
Private Equity portfolio companies undergoing their cloud journeys.” - Mitt
Romney, Managing Director

Recognized Cloud Transformation Testimonial
Portfolio Company
Industry: Cleaning and restoration services
Individuals accredited: CIO
Deliverables/Outcomes: 1) Cloud Economics Business Case 2) Cloud Journey Map 3) Digital
Innovation Through Culture of Innovation - direct product business
CIO
“The current data center to AWS migration has uncovered technical debt that even
we did not realize we had. This will help us during the next phase of our cloud
transformation – modernization”

Voice of the Private Equity Portfolio Companies

Solving the challenge of program overload
Parties
Migration Readiness Assessment
CAF Envisioning Workshop
Landing Zone Workshop Solution Builder
Enterprise Acceleration Program
Well-Architected Reviews
AWSome Days
Digital Innovation Program
Enterprise Foundations program
CAF Alignment Workshop
re:Think KRADL
Quick Starts
Immersion Days
EBCs
re:Store
Builder Days
Database Freedom
Migration Acceleration Program
Wild Rydes
People Transformation Workshop
Business Case Accelerator
AWS Summits
Sustainability Program
CxO Roundtables
50 in 50
POCs - Supercharge
Shields Up!
re:Think Windows
CIO Experience Day
AWS Transformation Days
AWS GameDay
Cloud Journey Roadmap
Customer Success Matrix
COM Workshop
Point of Views/Narratives
Manifestos
Business Agility Accelerator Workshop
AI/ML Labs
Culture of Innovation Workshops
Cloud Economics Offering
AI/ML Data Science Offering
re:Stack
R&D Innovation Team
Enterprise Next

VALUE
TIME
CLOUD NATIVE
R
E
T
I
R
E
T
E
C
H
D
E
B
T
Cloud Manifesto
Cloud Economics
Business Case
Security, risk and
compliance plan
Data-centric
organization
Security Readiness
Cloud COE
COM
Skills – Training
and enablement
plan
Migration/Moderni
zation strategy and
prescriptive
guidance
Licensing
Data governance
Cloud Journey Map
Partner Plan
Operations
Integration
Culture Evolution
Pilots
INNOVATION
FOUNDATION
MIGRATION/
MODERNIZATION
Deliverables / Artifacts – Cloud Adoption Framework
Eliminating Guess Work Through Prescriptive Guidance
DevOps and ‘Projects
to Products’
Culture of Innovation
M&A Assets and
Process
Data-centric
organization
Governance @ scale

AWS Cloud Adoption Framework (CAF)
Realigning the organization around digital transformation
BUSINESS GOVERNANCE
PLATFORM
OPERATIONS
PEOPLE
SECURITY
Major Characteristics:
• Draws multiple industry standard frameworks
• Standard way to document stakeholders objectives, views, and concerns
• Compressed model for addressing challenges and objectives
Secure bold alignment at the top by using strategic
imperatives – not divisional priorities – to set the digital
agenda. Ring-fence shared resources to support it
Take critical initiatives from prototype to scale by over
investing in digital factories that rely on Agile ways of working
5% achieved or exceeded expectations
20% failed to deliver, producing less
than 50% of the expected results
75% settled for dilution of value and mediocre performance
Source: Bain Consulting – Orchestrating a Successful Digital Transformation
Recruit the front-line as conveyers of change by building a
virtual community that focuses on innovation and learning
Context

Key Performance Indicators – Potential metrics
Return on Investment
• Reduction of time required to
realize ROI by 20%
Total Cost of
Ownership
• 20% decrease in the TCO
Reduced Time to complete
transformation
• 25% decrease in the time to
complete the transformation
Measures of success
Time to Deploy
Applications
• 50% reduction in time to
release applications to
production
Application Resiliency
• 40% reduction in downtime
Digital Innovation
Pilot
• 50% increase in DI pilots
Cost Optimization
• 20% decrease in AWS Costs
Training and
Certification
• 30% increase in certified staff
Sampl
e

Visionary leadership is about delighting customers
Increased revenues + optimized costs + reduced risks = value creation
On-
premises
Lift &
shift
EC2 /
Managed
DB
Cloud-Native
Optimized,
Modern DB
HW/SW
Right-sizing SaaS /
Open Source
Managed
Services Containers /
Serverless /
Modern DB
Innovation
Velocity
Cost of
Compute &
Storage
The Great
Stall
Value
Creation
CCoE*/DevOps Maturity
*Cloud Center of Excellence (CCoE)/Cloud Enablement Engine (CEE)

Positive Patterns
Committed executive leadership
Engaged Cloud Steering Committee
Product-centric PMO
Foundational guardrails
DevOps as a framework
Community of practice (aka guilds)
Cloud Adoption Accelerators and Pitfalls
Anti-Patterns
Misaligned leadership
Cloud antibodies – Nephophobia
Project-centric PMO
Retain same processes and tools
Agile-Fall
Lack of / or incomplete upskilling strategy

Proposed TA Engagement and Accreditation Timeline
Candidate
1-3
candidates
AWS PE
TA
Assigned
Identify
Areas of
Value Creation
Recognized
Helping portfolio companies
through their
transformation journey;
mentor and coach for
newbie CTLs; member of
the PE firm RCTL
community; and ‘public
spokesperson’
for the PE firm.
Asset
published
In repository
Provide
Prescriptive
Guidance
Produce 3
assets for
Executive
Promote
RCTL
program
CxO / Technology Executive
Potential Executive
Workshops:
• CAF Envisioning
• Business Agility
Acceleration
• Value Mapping
• Executive EBA
• Simple Portfolio
Ranking
• 3E Workshop
Remediated
Assets
reviewed
AWS High Touch
engagement:
• AWS Transformation
Advisor
• AWS SMEs as
required
• Twice weekly
standups
Interview
Executive
8 to 10
weeks
1-2
weeks
1- 2
weeks
2 days 1 week
TA engagement 8-to-12
weeks
RCTL program 2-to-4 weeks
Tech leaders

Thank You!

Appendix

Assessing whether the CCoE is adding value is an exercise in working backwards from reasons we created one.
Suggested Cloud Center of Excellence KPIs
Fit Agility Cost Risk Ability
Key Performance Indicator
• Customer Satisfaction
Key Performance Indicators
• Cycle-Time
• TCO
• Risk Score
(Ops, Sec, Compliance)
Key Performance Indicators
• Adoption
Additional Measures
• Customer Adoption (Fit)
• Help Requests (Fit)
Additional Measures
• Lead-Time
• Time to Adopt New
Technology
• Time to On-Board
Additional Measures
• Availability
• Allocated vs. Utilized Capacity
• Applications Passing Well-
Architected reviews
Additional Measures
• Internal Audits Passed
• External Audits Passed
Additional Measures
• Existing Workloads Migrations
• New Workloads Deployed
• Employees Trained / Certified
• Readiness Assessments

Outcomes and Deliverables
• Goals, business objectives, KPIs
• Portfolio Assessment and migration disposition
• SaaS strategy
• Hybrid and multi-cloud
Migration / Modernization strategy and prescriptive guidance
• Business case showcasing cost to migrate, modernize, and run on AWS based on AWS empirical data
points gathered, industry averages, and a set of assumptions include TCO and ROI.
Cloud Economic Business Case
• Executive statement of transformation mission, charter, and direction of company regarding cloud
adoption
• Transformation tenets / guiding principals
• Communication plan
Cloud Manifesto
• Cloud Capabilities Assessment across CAF perspectives
• 0-2 year milestones for people, process, organization, culture and technology
• Cloud Operating Model (COM) – FinOps, governance, business and technology
Cloud Journey Map

• KPIs
• Roles and responsibilities
• ‘Services’ provided – migrations, landing zone, operations, cost control/FinOps, security…
• 6, 1 year and 2 year roadmap
Cloud Enablement Engine/Cloud Adoption Office/CCoE
• Training plans for builders, architects, leaders and executives
• Certifications – associate and professional services
• Upskilling approach
• Hiring and onboarding AWS transformation experts
Skills – Training and enablement plan
• Identify ISVs and SI partners
• Evaluate and review partners, pros and cons
• Select tools and SI partners
Partner plan
• Culture change doctrine
• Working backwards press release and FAQ
• AWS Digital Innovation at scale plan
Culture Evolution and Culture of Innovation

• Approach and strategy regarding organization, process, and culture change through DevOps,
DevSecOps, and productization.
• CI/CD
DevOps and ‘Project to Products’
• Operational readiness review document
• Testing in production, chaos engineering, GameDays, automated alerting and notification, self-healing
systems
• CI/CD tool chains
Operations Integration
• Licensing assessment – Oracle, Microsoft, IBM, and other ISVs
• Licensing strategy – BYOL, subscription, AWS Marketplace
• License Management – Management of licensing running on AWS
Licensing
• Technical Due Diligence playbooks and runbooks (with AWS/cloud focus)
• Assets and process specific to acquisitions, mergers, divestitures, and carve outs
M&A Assets and Process

• Approach and strategy to security, risk and compliance
• Cloud security tools and products
Security, risk, and compliance plan
• Data Management
• Data integrity and security
• Regulatory and compliance standards
Data Governance
• Security and compliance assessment checklist
• DevSecOps
Security Readiness
• Organizational Change
• Cloud Platform Capabilities, FinOps
• Responsibilities and accountability, process change
• Product Portfolio Management
Cloud Operating Model

• Data fabric approach
• Data integration and consolidation
• Data storage using purpose built databases
• Data analytics and AI strategy
Data-centric organization
• Chaos Engineering
• Account Management
• Configuration and fleet management
• Financial Management
• Continuous Improvement
Governance at Scale

In what form do migrations take shape?
Understand your current and future state at the outset
Discovery
Use Migration
Tools
Replatforming
(Lift & Reshape)
Transition
Production
Retain /
Not
Moving
R
e
f
a
c
t
o
r
i
n
g
(
R
e
-
w
r
i
t
i
n
g
/
D
e
c
o
u
p
l
i
n
g
a
p
p
l
i
c
a
t
i
o
n
s
)
Redesign
Application /
Infrastructure Architecture
App Code
Development
Repurchasing
(Replace -
Drop & Shop)
Purchase COTS/
SaaS & licensing
Rehosting
(Lift and Shift)
Validation
Modify underlying
Infrastructure
Full ALM /
SDLC
M
anual Config Deploy
Install
Retire /
Decommissio
n
Determin
e
Migration
Path
Automate
Manual Install
& Setup
Integration
Determine
new platform
Docker / vMotion
R
e
l
o
c
a
t
e
(
C
o
n
t
a
i
n
e
r
s
/
V
M
w
a
r
e
C
l
o
u
d
o
n
A
W
S
)
Determine
configuration
Assess /
Prioritize

AVERAGE CUSTOMER ENVIRONMENT, BY MIGRATION AND MODERNIZATION PATTERN
(based on AWS experience)
Key migration/modernization learnings: limit the amount of re-engineering effort prior to migration/modernization to
avoid throwaway work. Taking a tiger-team approach can help accelerate migration/modernization
RETAIN
Not prioritized
for migration
RELOCATE
Move VMWare-
based apps to
VMWare Cloud on
AWS (VMC)
REHOST
Lift-and-shift to quickly
capture business benefits;
transform once migrated for
additional value
REPLATFORM
Platform optimizations
(e.g. to reduce OS/DB
licensing costs)
REPURCHASE
Move to SaaS
REFACTOR
Reimagine app
architecture &
development
RETIRE
No longer
needed
100%
~30-40% ~5-
10%
~5-
10%
~5-
10%
~20% ~5
%
~5-
10%
~5-
10%
REHOST+
Lift-and-upgrade: Windows
Server Upgrade (Windows
2005/2008 to 2016)
Common Migration vs. Modernization Patterns
Migration Modernization

Operational Maturity Model
Traditional
Operations
Model
Early Cloud
Operating
Model
Rationalized
Cloud Operating
Model
Optimized
Cloud Operating
Model
§ Automation for Ops is
being explored
§ Most Operational
processes documented
§ ITIL based processes
§ Infra, App, Eng & Ops
teams are in separate
organizations
§ Manual procurement of
resources
§ Automation established for
manual processes
§ ITIL processes are being
optimized & automated
§ Infra & App teams being to
work towards the same goals
(Service based model)
§ Self Service Provisioning of
AWS Resources
§ FinOps Reporting
§ Runbook automation est.
as Operational best
practice drive improvement
§ Consistent measurement
of the organization to
§ Inefficiency is removed
from systems and culture
§ Self Service Provisioning
of AWS Accounts
§ Automated FinOps
§ AI Ops is established as
the primary Ops function
§ Release, Change &
Security mgmt. governed
by DevSecOps pipeline
§ Single teams owns end to
end management of the
service
§ Self Service optimized
across AWS platform
Level 1 Level 2 Level 3 Level 4
Journey from Traditional Ops to "Cloud Ops"

Indicator of Cloud Readiness Aligned to CAF
The assessment includes question survey and
interactive activities conducted as a 1-day
workshop:
• Alignment of leadership teams
• Consensus on decision-interdependency
• Identification of gaps and readiness
Action plan and proposal to close the gaps and
accelerate to the next phase of adoption (e.g.
Accelerators, Mobilize project)
Business
Capability
Focused
Business
Value Realization
People
Roles and Readiness
Governance
Prioritization and Control
Technical
Capability
Focused
Platform
Applications and Infrastructure
Security
Risk and Compliance
Operations
Hybrid and Dynamic
Provide directional guidance on readiness, align leadership teams, and build a case for
change

Cloud platform engineering
Platform
Operations
Security
Cloud business office
Architecture
alignment
Product
management
Onboarding
Financial
management
Training
Org change
management
Delivery management
Materialize CAF as a Cloud Enablement Engine (CEE)
CEE – also know as Cloud Center of Excellence (CCoE)
Cloud platform engineering
Platform
Operations
Security
Cloud business office
Product Architecture
Onboarding
OCM
Financial Delivery Training
Cloud leader
Product owner
Financial analyst
OCM/training specialist
Cloud architect
Platform engineers
Initial cloud enablement engine
(6–12 months)
Cloud
foundation team
(0–6 months)
Cloud enablement engine at scale
(12+ months)

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