why ea's must drive cloud strategy
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EA’s Must Drive Cloud Strategy & Planning
Mike Walker | Enterprise Strategy and Architecture | Microsoft Corp.
http://www.MikeTheArchitect.com
Open Group Conference San Francisco
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Why Enterprise Architecture Must drive Cloud Strategy &
Planning
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Who am I?
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Today'sSession
State of Affairs
Why Enterprise Architects
End to End MethodHow Microsoft builds Cloud Strategies
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What to Expect
1End to End overview of the Cloud Strategy& Planning (CSP) Framework
2No detailed demos will shown. Expect detailed modules to cover these aspects
3Why CSP is important to you and your engagements
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Cloud is Here
$112 Billion to be Invested
Gartner estimates, over the next five years,
enterprises will spend $112 billion
cumulatively on cloud services
Cloud overtaking On-Premises
91% of IT Professionals anticipate in 5 years cloud will overtake on-premises computing
Changing the IT Business
Over 80% of IT leaders indicate that their staff will need to develop new skills.
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How is this
different from all other technologies
?
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Pervasive and Deep Impacts
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The Business Demands always on capacity
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We’ve been down this Road before…
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“50% of all Technology
Initiatives are a Waste of
money…. “
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“50% of all Technology
Initiatives are a Waste of
money…. “31% of all projects are cancelled before completion
88% of projects run over schedule, over budget or both
52.7% of projects will cost 189% of their original estimates
Average time overrun is 222% of original estimates
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Pressures on the CIO
Disruption in Technology Enablement
Cloud is Different
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Who do we turn to?
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Why the EA
EA is at the heart, a comprehensive view of IT and the business strategy. This allows the business leaders and the CIO to see the impacts of change, decisions and opportunities.
- David Wallace, CIO for the City of Toronto
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Why the EA
1Competencies
2 Methods
3 Tools
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Competencies
Optimize IT
Manage Technology Disruptors
Advances in Technology (e.g., Cloud, CoIT, etc.)
IT Performance and Responsiveness
Cost Control Governance, Regulation and Security
Talent Management
Market Disruptors
Increased Business Demands
Economic Impacts
Heightened Customer Demands
Aid with Business Problem Solving
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Enterprise Architects connects Strategy to Execution
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“Vision without implementation is hallucination." – Benjamin Franklin
Enterprise Architects connects Strategy to Execution
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Initiatives
Programs & Projects
Connecting Strategy to Implementation
Strategy
Execution
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What Methods can be used?
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Leverage a Solid Foundation
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Tailor a Solid Foundation
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Strategy Rationalization Cloud ValuationBusiness Transformation
Planning
Distill the business and IT strategies to identify cloud ready capabilities that align to strategy and provide the maximum amount of value with low risk to the business.
Evaluate a prioritized set of cloud opportunities. Assess business and technology capabilities based on the value and risk they bring the company.
Prioritize investment opportunities, balanced across the enterprise and integrated into a transformation roadmap.
Apply TOGAF to Cloud Strategy and Planning
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The Cloud Strategy & Planning Framewor
k (CSP)
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The Cloud Strategy & Planning Framework (CSP)
1Business Value Driven Methodology enabling selection of the right cloud investments
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Business Value Driven Methodology
Business Strategy
Information Technology Strategy
Value Drivers
Enabling Capabilities
Market and Business Demands
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The Cloud Strategy & Planning Framework (CSP)
1Business Value Driven Methodology enabling selection of the right cloud investments
2 Embraces & Extends Proven Cloud Practices
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Embraces & Extends Proven Cloud Practices
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The Cloud Strategy & Planning Framework (CSP)
1Business Value Driven Methodology enabling selection of the right cloud investments
2 Embraces & Extends Proven Cloud Practices
3An Initiative in a Box Enabled by a set of Tools, Guidance & Real-World Examples based on actual customer Engagements
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The Cloud Strategy & Planning Framework (CSP)
1Business Value Driven Methodology enabling selection of the right cloud investments
2 Embraces & Extends Proven Cloud Practices
3An Initiative in a Box Enabled by a set of Tools, Guidance & Real-World Examples based on actual customer Engagements
4 Connected to Solution Architecture Methods
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Cloud Strategy & Planning Method
Strategy Rationalization Cloud ValuationBusiness Transformation
Planning
Distill the business and IT strategies to identify cloud ready capabilities that align to strategy and provide the maximum amount of value with low risk to the business.
Evaluate a prioritized set of cloud opportunities. Assess business and technology capabilities based on the value and risk they bring the company.
Prioritize investment opportunities, balanced across the enterprise and integrated into a transformation roadmap.
Charter Template
Enterprise Capability Assessment
Capability Prioritization ToolCloud Envisioning Workshop
Infrastructure Optimization ToolCapability Profiling Tool
Cloud Pattern Valuation Tool
Portfolio Analysis Template
Capability Opportunity Template
Business Heat Map
Cloud Pattern Matching
Cloud Strategy Template
Cloud Risk Method & Framework
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Cloud Strategy & Planning Method
Strategy Rationalization
Establish Scope, and Approach
• Conduct the Cloud Envisioning Workshop
• Provide overview of cloud computing• Define the enterprise business model
for cloud computing• Establish project charter
Set Strategic Vision
• Gather the IT and business strategic objectives
• Identify strategic cloud computing patterns and technologies
• Analyze customer feasibility and readiness
• State strategic vision for cloud computing
Identify and Prioritize
Capabilities
• Define evaluation criteria for key IT & business value drivers
• Evaluate the capabilities based on these metrics
• Identify ~5 high-priority capabilities for deeper analysis
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Motivation Model Benefits Dependency Network
Strategy Maps
Wh
y
Capability Map
Wh
at
Value Chain, Shop, Network
How
Functional & Organizational Decomposition
Wh
o
IT Portfolio Plan Roadmap Business Transformation Plan
Wh
en
Rationalize & Distill Value
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Microsoft Confidential
Understanding Value
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Microsoft Confidential
Understanding Value
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Cloud DeploymentCloud ServicesEnterprise Capabilities
Example: Cloud Patterning Matching
Channel Mgmt.
Cloud DefinedStrategy
Cloud Valuation
Business Transformatio
n Planning
Distribution
Claims
Sales
Business Mgmt.
Contract Mgmt.
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Industry-Specific Cloud Benefits
Value & Risk Impact Assessment Tool
Cost Reduction
Speed to Implement
Deployment flexibility
Agility
Easier migration
Sharing apps with partners
Access to tech resources
Virtualization
Scalable across many locations
Globalization
Access to best practices
Higher IT utilization
Compliance
Significant factor Moderate factor Small factor
Industry-Specific Cloud Risks
Security
Unclear potential for customization
Unproven ROI/Cost
Conservative mind-set (risk-averse)
Unknown reliability of infrastructure
Integration-related issues
Data ownership
Compliance
Privacy
Vendor lock-in
Significant factor Moderate factor Small factor
StrategyCloud
Valuation
Business Transformatio
n Planning
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Enterprise Risk Tolerance Assessment
1. ???
?
?
?
?
?
?
?
?
?
Tolerance
Tolerate No Realization of
Business Objectives
Tolerate Net Loss to the Business
StrategyCloud
Valuation
Business Transformatio
n Planning
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Prioritized list of cloud opportunity candidates
Capability Prioritization
Capability
RiskArchitectural
FitOrganizational Readiness
Technical ReadinessBusiness Governanc
eTechnical
Operations
Distribution L L M M M H H
Claims VH L H VH H M H
StrategyCloud
Valuation
Business Transformatio
n Planning
Prioritization Analytics Exe
cuti
ve R
ollu
p
1. 2. 3.
Distribution
Claims
Business Mgmt.
Capability
Capability
Capability
Capability
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Profile Capabilities
• Determine current state of capability maturity leveraging IO Maturity Tools
• Execute Risk Analysis Method with corresponding assessments and remediation steps.
• Profile the capability asset portfolios of information, technology, and processes and analyze by architectural fit, risk and readiness
Recommend Deployment
Patterns
• Research capability proven practices and market direction
• Define target cloud capability requirements
• Determine optimal cloud service and deployment patterns for the capabilities based on fit, value, and risk
Cloud Strategy & Planning Method
Cloud Valuation
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Business Capabilities Heat Map
Management Control & Reporting
Core BusinessGeneric Support
FunctionsInternal Control
Functions
Planning Distribution Input Management HR Management
Reporting PropositionBusiness Partner
ManagementFacility Management
Risk Management Distribution Channels
SupportFinancial Management Financial Management
Production ReinsuranceEmployee Event
Management
Primary PurchasingIncentives and Commissions
Secondary Purchasing
Document Management IT Management
Output ManagementCommunications
Management
Financial Processing
A AArchitectural Fit: Very High High Moderate Very LowLow
V VValue: Very High High Moderate Very LowLow
R RRisk: Very Low Low Moderate Very HighHigh
Re
ReReadiness: Very High High Moderate Very LowLow
Heatmap: High Priority Moderate Priority Low Priority
Heatmap Key
V
VRe
A A RRe
A V RRe
A V RRe
A V RRe
A V R Re
A VRe
A VRe
A VRe
VRe
A VRe
A VRe
VRe
A VRe
A VRe
A VRe
V
A VRe
A
V
StrategyCloud
Valuation
Business Transformatio
n Planning
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Cloud Risk Assessment Method and Framework
StrategyCloud
Valuation
Business Transformatio
n Planning
Risk Assessment Method Risk Assessment Framework
IdentifyIdentify the risks related to deploying a solution in the cloud
AssessAssess risks for likelihood and impact to solution components
Remediate
Develop solution or strategy for risk remediation
PlanIncorporate final risk ratings into cloud adoption planning
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Cloud Strategy & Planning Method
Identify
• Clarify Business Intent• Identify enabling
Innovation-based solutions • Analyze the solutions’ based on Risk
& Business Value• Prioritize High Risk Solutions with
the Highest Business Value
Assess
• Detailed assessment• Determine risk tolerance the
organization is willing to accept• Understand impact and probability
Remediate
• Apply risk assessments to mitigation architecture & planning
• Determine if solutions are eliminated based on risk tolerance
• Identify options and architectures to mitigate risk
Plan
• The key input into the prioritization activity in the Business Transformation Planning phase
• Determines one or more risk mitigation plans for selection
Profile Capabilities – Risk Assessment Method
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Microsoft Confidential
Bridging Business and IT Capabilities Together
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Deploy Unified Collaboration for <Enterprise> on using SaaS in a Partner Cloud
Example: Unified Communication
Architecture
Target Model Feasibility
4 - Replace
Capability Requirements
5 - Ideal Fit
Security Requirements
4 - Lack Experience
Data Requirements
3 - Partially Compatible
Identity & Access Mgmt
4 - Federation w Config
Value
Reduce Complexity of IT
4 - Important
Reduce P&C Risk 1 - Not Aligned
Increase Value and Lower IT Spend
4 - Important
Enable Positive IT Experience
4 - Important
Most Trusted Insurer 1 - Not Aligned
Risk
Business 2 - Low Risk
Governance 2 - Low Risk
Technical 1 - Marginal Risk
Operational 1 - Marginal Risk
Readiness
Organizational 4 - Minor Gaps
Technical 4 - Customization
SaaS 3.08 3.40 3.52 1.00Valuation Key
5 Exponential Returns
PaaS 1.00 1.00 1.00 1.004 High Returns3 Moderate Returns
IaaS 3.16 3.32 3.36 1.002 Marginal Returns1 Avoid Investment
Traditional Private Partner Public
StrategyCloud
Valuation
Business Transformatio
n Planning
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Define and Prioritize
Opportunities
• Completely define opportunities to include an overview, benefits, risks, assessment results, technology impacts, and project plan
• Prioritize opportunities for detailed architecture and execution
Define Business
Transformation Roadmap
• Assess implementation risks and dependencies
• Develop and deliver a business transformation roadmap
• Validate with the customer and edit accordingly
Cloud Strategy & Planning Method
Business Transformation Planning
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Opportunities in context of value and riskExample: Opportunity Prioritization
Based on risk and value, the Collaboration, Client Services and Unified Communications opportunities are the low “hanging fruit”
Datacenter Servers provide high opportunity, but has higher risk
Ris
k
Business Value
Low
Hig
h
Low High
StrategyCloud
Valuation
Business Transformatio
n Planning
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Initiative Overview
Deploy Client Service capabilities for Contoso using Infrastructure-as-a-Service (IAAS) in a Private cloud. Drill down into what client services workloads Contoso wishes to provide:1. Client Management and Virtualization2. Client Security
Pattern Risk-Adjusted Value
4High Priority
Value(scale: 1 – value not likely realized, 5 – value very likely realized)
Risk (scale: 1 – marginal risk, 5 – likely catastrophic damage)
Key Benefits
• Higher ROI and reduced TCO• Reduced security breaches and end-
user disruptions• Mitigates business and compliance risk
Key Risks/Challenges• This capability directly supports all
employees, business units, and business processes
Reduce Complexity
of IT
Reduce P&C Risk
Increase Value and Lower IT Spend
Enable Positive IT Experience
Most Trusted Insurer 4
High Value
Business Risk
Governance Risk
Technical Risk
Operational Risk
2Low Risk4 1 4 3 4 1 1 2 3
Readiness
Technical Readiness Organizational Readiness
Maturity Integration Dependencies
Technical Readiness Score
Organizational Concerns
Staff Concerns Organizational Readiness Score
Virtualization platformSecurity infrastructureIntegration with HP BTO
5Proven Technology
Ability to rationalizeCurrent multi-ESP situation
Limited knowledge of client platform within Contoso due to outsourcing
3Semi-prepared Organization
Rationalized
Opportunity Dashboard
Infrastructure-as-a-Service
Private
StrategyCloud
Valuation
Business Transformatio
n Planning
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Example: Cloud Pattern Matching
CommunityPrivatePublic
IaaS
PaaS
Traditional
SaaS
A1. Customer Portal
StrategyCloud
Valuation
Business Transformatio
n Planning
A2. Online Banking Platform
A3. Reporting
A4. Data Warehouse – Customer Master
A5. Core Banking Systems
Business Capability: L1: Payments L2: Mobility IT Capability: CRM, Portal, Integration, BI
A7. Micro-Payment Engine
Solution(s): Customer Portal, Mobile App, Micro-Payments Engine, Integration Bus, Reporting
Name: Mobile Initiative
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Example: Cloud Pattern MatchingStrategy
Cloud Valuation
Business Transformatio
n Planning
Gateway
Web Services
Interfaces
Credit Card Systems
Credit CardAdapter
Banking Solution
On Premises - Banking ApplicationsInternet
Clients
Customer Account Systems
Customer Account Adapter
Internet
Azure
Azure Connect
Banking Solution
Web Services
Mobile Banking
Application
Legacy Balance System
Account Balance Adapter
Web Application
BalanceData
Credit Card DB
AccountDB
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Microsoft Confidential
Example: Cloud Roadmap
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Recap & Conclusio
ns
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Recap: Method
Strategy Rationalization
Cloud ValuationBusiness
Transformation Planning
Ou
tpu
tC
usto
mer
Valu
eH
ow
is it
diff
ere
nt?
• Project charter defining the scope of the analysis
• Strategic vision for cloud computing
• High-priority capabilities for cloud migration
• Supportive Cross-Organization Analysis Teams
• Current state capability assessment
• Target capability service and deployment patterns
• Defined investment opportunities
• Prioritized and integrated into a business transformation roadmap
• Ensures cloud investments are aligned with IT and business strategy
• Ensures a clear understanding of the value and risks of the future strategic business model for cloud computing
• Provides a portfolio of investments, balanced across the enterprise and its capabilities
• Unlike many thinly-veiled technology-specific approaches, Microsoft presents a holistic approach which prevents fragmentation
• Microsoft’s capability and assessment frameworks and expertise enable a smooth, transparent, valuation process
• Enables ongoing management of investments and continued aligned between strategy and architecture
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Recap: Method
Strategy Rationalization
Cloud ValuationBusiness
Transformation Planning
Ou
tpu
tC
usto
mer
Valu
eH
ow
is it
diff
ere
nt?
PlannedQuantifiedQualified
• Project charter defining the scope of the analysis / ASOW
• Strategic vision for cloud computing
• High-priority capabilities for cloud migration
• Ensures cloud investments are aligned with IT and business strategy
• Unlike many thinly-veiled technology-specific approaches, Microsoft presents a holistic approach which prevents fragmentation
• Supportive Cross-Organization Analysis Teams
• Current state capability assessment
• Target capability service and deployment patterns
• Ensures a clear understanding of the value and risks of the future strategic business model for cloud computing
• Microsoft’s capability and assessment frameworks and expertise enable a smooth, transparent, valuation process
• Defined investment opportunities
• Prioritized and integrated into a business transformation roadmap
• Provides a portfolio of investments, balanced across the enterprise and its capabilities
• Enables ongoing management of investments and continued aligned between strategy and architecture
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Recap: Tools & Templates
Tool Description
Charter – Template to authorize the project and define scope, stakeholders and timeline
Enterprise Capability Assessment – Enterprise level 1 capability analysis to segment a customers portfolio for the discovery of cloud opportunities.
Business Heat Map – Graphical view of an organization based on business capabilities and cloud attributes like risk, value, fit and readiness
Tool Description
Capability Prioritization – Further refinement of each business capability with respect to cloud risk, fit and readiness
Cloud Envisioning Workshop (CEW) – An executive level workshop to establish terms and educate along with cross-enterprise facilitated assessments.
Capability Profiling – Rollup dashboard of a given capability to determine the level of value and risk it provides in the context of cloud.
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Recap: Tools & Templates
Tool Description
Cloud Pattern Valuation – Robust metric driven analysis tool used to determine which cloud service and deployment models should be used for a solution.
Cloud Pattern Matching – Graphical tool to connect service and deployment models with business or technical capabilities.
Portfolio Analysis – A tool to plot cloud opportunities to a grid based on Business Priority, Value, Risk and Effort to aid in the roadmapping.
Tool Description
Cloud Opportunity Dashboard – A dashboard that provides a complete rollup of the Cloud Valuation assessments into one sheet to support decision making.
Cloud Strategy Presentation – Template to be used to present findings back to the customer.
Cloud Taxonomy –This taxonomy provides a way of rationalizing cloud specific cloud implementation decisions.
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Recap: Tools & Templates
Tool Description
Cloud Risk Framework – A risk reference model that identifies the key aspects of cloud risk to be assessed.
Cloud Risk Method – Process for applying a risk classification to a potential cloud solution.
Tool Description
CSP Project Planning – Examples of a defined project engagement, with timelines, milestones, activities and deliverables.
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Conclusions
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Related Sessions• Keynote: Making Business Drive IT Transformation Through Enterprise
Architecture
• Track: Architecting the Cloud
Mike Walker’s Blog Links• http://www.MikeTheArchitect.com • Coming Soon! Cloud Strategy and Planning Articles, Presentation and
Webcast• IQ Isn’t Enough. Enterprise Architects Must Balance with EQ Driven
Approaches - http://www.mikethearchitect.com/2011/03/iq-isnt-enough-enterprise-architects-must-balance-with-eq-driven-approaches.html
• The Enterprise Architecture Capability Model (EACM) - http://www.mikethearchitect.com/2010/07/the-enterprise-architecture-capability-model-eacm.html
Resources
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© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after
the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.