Implications of Cloud Computing

for Enterprise Architects

Matt Deacon

Chief Architectural Advisor, Developer & Platform Group, Microsoft UK

www.twitter.com/mattdeacon

blogs.msdn.com/matt_deacon

www.iasahome.org/web/uk/certification

From: Jonathan Murray

Worldwide Technology Officer

Microsoft

Disclaimer*

1. Forward Looking Statements: The following presentation contains certain predictions and forecasts which may possibly/probably, turn out to be wholly inaccurate.

2. Utility: The forward looking nature of this presentation is unlikely to provide any information which will prove useful for addressing near term challenges in your business or personal life.

3. Work In Progress: This is an ongoing piece of work; as such the author reserves the right to right to amend, replace or contradict any premises, argument or logical statements contained herein.

4. Investment Decisions: Under no circumstances should the information be used to make investment or other life changing decisions. The author’s liability shall not exceed the fee received for this presentation.

Disclaimer v2

What I really said …

The “Cloud” is everywhere these days with every CIO shouting “I want one of those!”

A bit like they did with SOA and we ended up with the dreaded ESB!

With Cloud the promise of procuring services without the cost and hassle of IT staff is all too appealing for many!

But wasn‟t this one of the great promises of “outsourcing” and we all know where that‟s ended up!

The problem this time is in many dysfunctional organisations the motivation in moving to cloud is as a way to bypass IT – this can only be a recipe for disaster longer term.

blogs.msdn.com/matt_deacon/archive/2010/02/03/talking-at-eac-this-june.aspx

Clouds clouds everywhere

Service

Business

Vendors

Integrators Outsource

Offshore

Agenda

• Talking clouds Build a cloud taxonomy and an approach to using it with key stakeholders from

business to IT.

• Business Capabilities Discuss how looking above process and implementation at a business's capabilities

enables EAs to engage in different discussions about the business.

• Future of IT The future IT department in terms of new responsibilities and roles and understand

the key architectural considerations of entering into a world of hybrid architectures.

• Lessons from Agile Finally, while EAs yearn to be heard by the business, it is too easy to isolate ourselves

from the rest of IT along on the journey. We'll look at key lessons from agile

development and how these can be applied at the architectural tier and in so doing

learn about "technical debt" and how in the right hands, it is a good thing!

Talking Clouds

A cloud taxonomy and an approach to using it

with key stakeholders from business to IT.

Cloud Computing Defined

• Providing IT resources, as a service, in a dynamic and scalable manner

over a network*

• Five essential characteristics of the Cloud:

– On-demand self-service

– Broad network access

– Resource pooling

– Rapid elasticity

– Measured service

• Public, Private, Community, Hybrid

• Software, Platform, Infrastructure „as a Service‟

Provide business services, in a dynamic, efficient, cost effective and reliable manner that add business value*

A Simple Cloud View

Platform as a Service

• Development Environment, Storage,

Management

• Windows Azure, Google AppEngine, Force.com

Infrastructure as a Service

• Compute & virtualisation platform

• Amazon EC2, VMWare vSphere

Software as a Service

• Complete full function solutions

• Salesforce, Microsoft Online (Hosted Exchange

etc.)

A Simple Cloud View

Platform

Infrastructure

Software

Platform

Infrastructure

Software

… as a Service

CLOUD

Exec

Sales

Marketing Production

IT

Cost

Agile

Competitive

Green Predictable

Innovation

Profitable

Simple

Stakeholder view of cloud?

Adoption - Extension of Buy Versus

Build

Customer Example B

uild

Customer Example B

uild

Customer Example

Customer Example

Customer Example

Customer Example

Customer Example

Customer Example

Adopting Cloud

•Augment

•Extend Enhance

•Re-architect

•Re-create Transform

Build from

Scratch Create

•Re-house

•Transfer Move

Systems which can‟t easily be directly moved to the cloud can still be enhanced by making use of cloud services.

Over the longer term it is necessary to understand what opportunities the cloud presents to transform your applications and services.

If you have plans to create new internal technology solutions, or you're looking to deliver new products and services, the cloud can provide the perfect platform.

You should start with opportunities to move existing functionality into the cloud, including moving physical hosting and moving to a Cloud service.

Outlook: partly cloudy with sunny spells to follow www.dotnetsolutions.co.uk/Assets/pdfs/Hybrid Cloud White Paper.pdf

Business Capabilities

Discuss how looking above process and

implementation at a business's capabilities

enables EAs to engage in different

discussions about the business.

What is a business?

Customers Business

Partners The business

Develop

Demand

Fulfil

Plan

What is a business?

Customers Business

Partners The business

Develop

Demand

Fulfil

Plan

Fulfil Demand

Provide

Service

Advanced

Planning

Produce

Product Procure

Resources

Logistics

Procure Resources

Sourcing

Management Purchasing

Request Resources

Acquire/Purchase Resources

Create

Purchase

Requisitions

Purchase

Direct

Materials &

Supplies

Purchase

Indirect

Materials

Purchase

Outside

Vendor

Services

Purchase

Capital

Goods

Consolidate

Approved

Requisitions

by Supplier

Create

Purchase

Orders

Choose or

Default

Supplier for

Goods

Manage

RFI/RFQ/

RFP

process

Manage

Open to

Buy/Blanket

POs

Verify/

Negotiate

Price

Manage

Requisition

Approva

Processl

Perform

Encumbrance

Check

Track Open

POs

Manage Suppliers

Manage

Supplier

Relationships

Track

Supplier

Commitments

Maintain

Supplier

Catalog

Manage

Purchase

Item

Catalog

Create

Auction Bids

Manage

Automatic

Replenish-

ment

Manage

Purchasing

Methods

Approve

& Validate

Contract

Payments

Manage

Buyer

Performance

Provide Supplier

Self-Help

Anatomy of a Capability

People

Technology

Process

Anatomy of a Capability

Properties of capabilities

• Stable

• Describe what not how

• Measurable

• Value oriented

Valuing capabilities

• Value

– Cost

– Differentiation

– Complexity

– Maturity

• Performance

– Duration/responsiveness

– Accuracy

– Reliability

Capability Heat Maps

Capability Business Value Performance

Financial Management High Low

Human Resources Med Low

Project Management High Med

Property and Advisory High High

This heat map indicates that

Financial Management has

a high opportunity value

for improvement.

High

Med

Low

Border Colour Fill Colour

SOA and Capabilities

• They‟re very compatible • Capabilities moves you above the tech layer

• The problem with SOA Junkies are … • They think like Adam Smith - Division of Labour

• They think like Ford - Assembly line

• They think like Alfred Sloan - Mass production (Management)

• They think too much about – Separations of Concerns

– Encapsulation

– Re-use!

• It‟s SOA for SOA‟s sake – This is a technological view – not a business one

The problem with SO Junkies!

• Duplication/synchronisity is not a problem

• Share services are a read herring

• Normalisation

• A universal enterprise architecture/single architecture

• Single version of truth • SOA solves integration

Myths

Dynamic Specialised Capability

Building The Only Sustainable Edge, Hagel, Seely-Brown

“Primary purpose of the firm is to accelerate

knowledge and capability building … so all

can create even more value”

• Value Oriented

• Business Service Centric

• Build shared/open innovation models

Future of IT

The future IT department in terms of new

responsibilities and roles and understand

the key architectural considerations of

entering into a world of hybrid

architectures.

Adopting Cloud

• Never?

– “Time and tide …”

Copyright Freeform Dynamics 2008

http://www.freeformdynamics.com/fullarticle.asp?aid=318

Convergence or Collision?

SOA

Dynamic IT Internet

Sourcing

Physics

Global-

isation

Eco

-

no

mic

s B

ou

nd

ary

Ero

sion

Move to Multi-Sourcing

Iain Mortimer, Chief Architect, BoAML, AIC2010 channel9.msdn.com/posts/mattdeacon/Talking-Architects-with-Iain-Mortimer

IT Organisation of the Future

Business Stakeholder Group - Board-level responsibility/ownership

- Capability Owners/sponsors

- Customers

Commercial IP

Department

- IP & Data Protection

- SLA/KPIs

- Penalties

- Prime/ Sub Contracts

Architecture &

Design

- Portfolio Management

- Standards & Governance

- Roadmap

- Design Authority

Service & Change

Management

- Monitoring

- Integration

- Service Reporting

- Scheduling

- Service desk

Capability Delivery Team - Supplier/Service Selection

- Due diligence

IT

Predictions for the future of IT

IT

1. IT will physically

contract with focus

on value generation

2. ITs boundaries

will expand 8. Architecture

and Design will

be the key

technology

related roles

4. Commercials and

Service management will

be major IT functions

5. But these can

be sourced

externally too.

3. Services

provided to the

organisation will

be at finer levels

of specialisation

BUT external

broker providers

will hide much of

this

6. Data is the key

asset to be

protected over

process

7. But this too could

be hosted externally

Service Centricity

Service

Business

Vendors

Integrators Outsource

Offshore

• Innovation & Incubation Centres – Intra-Enterprise Start-up

– Responsible for full business P&L

– Self-defining, self-organising

– Fast scale, fast fail

• Innovation partnerships – Shared IP, shared Risk/Reward

– Annuity-based

– Open new markets

– Continued Innovation

Collaborative/Shared Innovation

Lessons from Agile

Finally, while EAs yearn to be heard by the business, it

is too easy to isolate ourselves from the rest of IT

along on the journey. We'll look at key lessons from

agile development and how these can be applied at

the architectural tier and in so doing learn about

"technical debt" and how in the right hands, it is a

good thing!

• Agile doesn‟t scale

• Agile is feature led

• Agile doesn‟t care about architecture

Small is the new Big

Standish CHAOS report

blogs.msdn.com/matt_deacon/archive/2009/07/31/projects-failures-on-the-up.aspx

Small is the new Big

Small is the new Big

“Every seven years, we have torn up what has gone before and started again …

There have been eight cycles of 'build and scrap' since 1946. The first cost $100m,

equal to 7 per cent of business investment at the time. The last cost $2,000bn, or 47

per cent. The next would have cost $5,000bn but we have run out of money: we have come to the end of history as we

know it.”

Exponential Costs

Paul A. Strassmann.

http://www.strassmann.com

Agile tools at

Enterprise Scale

Technical Debt

• Result of short term decision making?

• Tool for Technical Cash-flow management?

• Benefits • Early delivery

• Clarification of Requirements

• Control over investments

• Joint customer & partner responsibility

• But how do you repay? • Continual Improvement / Refactoring

• Appropriate investment

• Tracking/monitoring debt

http://c2.com/cgi/wiki?WardExplainsDebtMetaphor

• Identify and value capabilities

• Obtain broad stakeholder buy-in

– Break down barriers

– Develop joint Understanding, Ownership, Responsibility, Trust

• Find out what‟s broken!

• Take Action!

Enterprise Planning Poker A method to …

• Cost

• Differentiation

• Complexity

• Maturity

• Performance

Think …

• Cloud is real, here and to stay!

– The term is confusing

– Know your audience

– It‟s not an either/or model

– Many ways to consider adoption

– Integration as a Strategy is key

Think …

• Business Capabilities

– Above the process

– Best of SOA (but not OTT)

– Business value oriented

Think …

• Small is the new BIG

– Think small to think BIG

– It‟s a discipline to be agile

not an excuse!

– Agile approaches apply to EA

– In a service centric world

agile development is key

– No more monoliths

Think …

• Service Centricity

– A Technology enabled

Business shift

– Effects right across the software

supply chain

– Creates Collaborative/Open

Innovation models

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