Workload and Application migration to Azure:Your Path to Recurring Revenue

AGENDACustomer workload migrations – The “Why”Understanding migration opportunities

Migration framework, methodologies and ResourcesPartner Win Examples

Market Trends & Customer Needs

Partner Opportunity

& Imperatives

Azure Differentiation

Typical Custom

er Journey to the Cloud

Building a Migration Practice – The Why

• Monitoring, security and compliance are top of mind

• Most start with IaaS ‘Lift & Shift’, IaaS optimization

• IaaS to PaaS, App modernization through architecting/re-platforming

• Customer size does not equal to migration complexity

• 46% of customers prefer Azure over any other public cloud (AWS 42%)2

• Azure is Secure, Hybrid, Scalable• Application footprint is

heterogeneous – Azure has native support for Windows and Linux

• Great ecosystem of ISVs for tooling• Managed services with CSP

• Migration – entry point for Cloud MSPs

• > 50% of customers will look to 3rd parties for help3

• Plan, Design, Build, Manage - immediate opportunities2

• Security and roadmap offers are critical

• Automation is key and a source of increased revenue

• Public cloud is exploding - $500B by 20201

• Most apps are on premise, but 42% will move to public cloud in 2 years2

• Modernization is the key driver - CTO/IT, EOL technologies, LOB Users/Shadow IT

• Cost reduction, On-demand capacity and IT as a strategic asset - motivators2

• Private/Hybrid cloud will be relevant

1IDC CloudView 2016 Survey, 2016, n=11083 2 PULSE Gatepoint Research, March 2016

3 451 Research April 20164 Markets and Markets 2016

Top Triggers for Customer Workload Migrations

• CAPEX to OPEX.• DC modernization• Increasing DC operational costs

Cost Model Transformation

• Modern security for modern threats• Regulatory compliance requirements• Business continuity

Security & Compliance

• New capabilities – e.g. adv. analytics• Time to value –build, deploy, manage• Availability of skills• Retain relevance of internal IT

through higher value to business

Need for BusinessAgility

• Expiring co-location contracts• End of support of Software• End of support contracts

Contracts, Licenses up for Renewal

Cloud Migration Market by Service Type

Source: Cloud Migration Services Market – Global Forecast 2016 – 2021 – Markets and Markets

CAGR 23.9%

Azure

The Opportunity – A Customer ExampleCustomer Spend Distribution

ILLUSTRATIVE

Compute

Network

Storage

OS (WS, Linux)

Applications

$$ -

Managed Services

AZURE

Applications

$$$$ -

Managed Services

$$$$$ Azure

advanced services :

IoT, Analytics etc

Managed Services Opportunity

On-Premises

Top Customer Questions During Migration Engagements

What are the cost savings / TCO if I move to Azure?

Which applications should I move – and what is the recommended sequence?

Will you build my entire environment on Azure or can part of it remain on-prem/private cloud?

Will you take care of architecture changes in order to meet the reliability, scalability, and availability requirements?

Will you ensure that my data and processes respect regulatory compliance?

Show me how you plan to manage and monitor my application in the cloud?

What are my risks?

2017 Microsoft Cloud and Hosting Summit

Common Workloads for Migration

Infra (VMs/Lift & Shift)

Database

RDS

Open Source WorkloadsMicrosoft applications (SharePoint etc.)LOB applications (Sitecore, SAP, NAV)

Web Apps

2017 Microsoft Cloud and Hosting Summit

Types of MigrationsRehost:i.e. redeploy applications to a different (newer) hardware environment. Rehosting an application

without making changes to its architecture can provide a fast cloud migration solution.

Revise:i.e. modify or extend the existing code base to support modernization requirements, then use rehost or refactor options to deploy to cloud.

Rebuild:i.e. rearchitect the solution. Discard code of existing application/solution and leverage newer and innovative cloud services (like PaaS).

Replace: i.e. discard an existing application (or set of applications) and use commercial software delivered as a service (SaaS)

Refactor:i.e. run applications on a cloud provider’s infrastructure. Applications/workloads may need to be modified slightly to run on the cloud provider’s platform.

Retire/Retain: i.e. discard completely or do not move. Some applications may not be used by anyone or others may be simply impossible to move!

Understanding a Typical On-Premise to Cloud MigrationMIGRATION PROCESS

Discover customer’son-prem footprint (VMs, networks, apps etc.)

1 Map dependencies and determine network topology

2 Recommend optimization path for workloads, cost modeling

3 Determine best cloud computing service model

4 Provide cloud migration strategy and plan

5

1.

Azure

Partner cloud

Customer Cloud

Hybrid

DECOMMISSION

…To→ Office 365→ SharePoint Online→ CRM Online→ VSO→ ADL + PowerBI→ Best 3rd-party

SaaS

From…→ Office servers→ Portals and SPS→ Any relationship

mgmt→ Active Source

Control & WIT→ Data warehouses→ Industry standard

verticals

Use or convert to a SaaS (1st or 3rd party) solution

Retire it, right-size, eliminate environments

Migration/Cloud Adoption Roadmap planningExample

~15%

…To→ Office 365→ SharePoint Online→ CRM Online→ VSO→ ADL + PowerBI→ Best 3rd-party

SaaS

From…→ Office servers→ Portals and SPS→ Any relationship

mgmt→ Active Source

Control & WIT→ Data warehouses→ Industry standard

verticals

Use or convert to an SaaS (First- or third-party) solution

First to move→ Basic web apps→ Advanced portals→ Any new solutions→ Any re-architected

solutions

Next to move→ High I/O OLTP→ Regulatory and

high business impact

Hard or costly to move→ HVA Systems→ PKI Systems → Legacy source

control

Azure IT roadmap

Remain on-

premises

Expose functionality in existing SaaS/PaaS solution

Convert to Azure PaaS solution

Optimize for and move to Azure IaaS VM

No change, lift ‘n’ shift to IaaS

<5%

~35% ~10% ~5%

Retire it, right-size, eliminate environment~30%

*Source: HMSP partner interviews; partner may team up with SI/subcontract

Partner Offering Progression

Advanced Managed Services(Big Data, Advanced Analytics/AI, Dev Ops, IoT)

Workload optimization (e.g.: IaaS – PaaS, Application re-architecture)

Assessment & Migration(Lift & Shift, Redeploy, DR)

Cloud workload management services

(e.g.: Monitoring, Support, Security)

Capa

city

& C

apab

ility

Offering progression over time

PARTNER’S AZURE

MIGRATION OFFERING JOURNEY

Managed Services based recurring revenue

Migration framework, methodologies and available tools

Migration FrameworkAssessment Migrate Manage

Discover Roadmap Stabilize OptimizeBuild Transition

Portfolio Assessment

TCO Analysis

Security Requirements

Dependency Mapping

Grouping and Prioritization

Design& Architecture

Detailed Migration Schedule

Tool Selection

Create Azure environment

Replicate via ASR

Integrate applications and networks

Verification

POC Test and QA

User Acceptance

Staging

Cutover and Decommission

Training

Configuration management

ID Management

DevOps Automation

Cloud Monitoring

Cost/Use Optimization

Assessment & Migration tools, Monitoring, Management, Optimization, ITSM & Automation tools

Services Provider Billing and Operations Management & Automation, CSP integration

Azure Migration Frameworkhttp:// aka.ms/azuremigrations

• Setting the Stage - Successful Migration Strategies

• Master Engagement Plan

• Migration to Microsoft Azure white paper

1. Preparing for Migration

Phases

MigrationRoadmapScoping

StructureDeliver actual migration

Assess, map dependencies, select

tools and forecast ROI

Discover current servers, applications and workloads

with discovery tool

• Crossing the Chasm 1/2

• Architectural Design and Considerations Guide - Initial Workloads

• SOW Checklist for Proposing Azure Cloud Migration

2. Migrating the First Workloads

• Crossing the Chasm 2/2• Discovery

Questionnaire• Assessment and

Planning• Technical Feasibility

Guide: Workloads & Scoring

3. Planning Discovery and Assessment for the Next Workloads

• Architectural Design & Considerations Guide - Advanced Networking Scenarios

• ASR Capacity Planning Guide• ASR Setup and Migration Guide• Workload-specific Azure migration

guides:SQL Server, SharePoint Server, BizTalk Server, Dynamics AX, Oracle DB, RHEL, WordPress.

4. Migrating the Remaining Workloads

1st Party / 3rd Party ToolsAssessmentDiscover Roadmap

Portfolio AssessmentTCO AnalysisSecurity RequirementsDependency Mapping

Grouping and PrioritizationDesign& ArchitectureDetailed Migration ScheduleTool Selection

MigrateBuild Transition

Create Azure environmentReplicate via ASRIntegrate applications and networks

Verification POC Test and QAUser AcceptanceStaging Cutover and Decommission

ManageStabilize Optimize

Training Configuration management ID ManagementDevOps Automation

Cloud MonitoringCost/Use Optimization

Dev Ops

Migration Assessment & Automation – ISV Tooling

1st Party / 3rd Party Tools

Monitor

Support

Security

1st Party / 3rd Party Tools

Migration – Business Model

Business model & Rev/customer

• Free cloud workshop as a hook• Assessment (manual and/or tool driven):

• Small - $10-15K (3-5 days)• Medium – $15-50K (2-4 weeks)• Large/ERP/LOB - $75 – 300K (3-6 months)

A-LA-CARTE - Each function: support, backup, monitoring, etc., has a separate SKU and consumption meter

PER VM/NODE - Managed Service tiers charged per VM/Node/ Instance - most common pricing model, especially for infrastructure services

% OF CLOUD SPEND - Managed Service tiers charged as percentage of underlying cloud spend - faster growing price model; typically used by born-in- the-cloud MSPs

PER USER/DEVICE - Typically used for Managed Apps/Mobility offerings or when building per user, finished services in Azure - most common pricing model used for applications such as Magento, Sitecore, SharePoint and Power BI on Azure

Business model

Basic Essential Premium

Partner Win Examples

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