Post on 27-May-2020
transcript
Cloudy with a chance of meatballsDriving Digital Transformation
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Who I am
Lars Rosenberg NielsenManagerDeloitte ConsultingTechnology Strategy & Architecture
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AgendaPart 1
1 The New Normal
2 Enabling Digital Transformation
3 IT Organisation of the Future
Part 2
4 Cloud Adoption
5 Migration – The Factory Approach
6 Getting Started
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Delivery ModelsFour main models for delivery of IT services: IaaS, PaaS, SaaS and BPaaS. They differ in how much control and maintenance burden you want
Deployment ModelsThree main deployment models: Public, Private and Hybrid. They differ in whom you trust
What is Cloud Computing?
IaaS PaaS
BPaaS
LeasePoint™
SaaS
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Cloud is not really about “the cloud.”It’s about turning the status quo of today into market-leading business innovations for tomorrow.
Product development and capabilitiesBuilding market relevant products quickly
Innovative services and acceleratorsLeveraging differentiated capabilities
New business services and modelsAltogether new revenue and business models
Eco-system plays and force multipliersShared economy, utilities and alliances
Application hosting and infrastructure Driving cheaper and faster delivery and ops
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DATA PLATFORM
ANALYTICS PLATFORM
DIGITAL BUSINESS PLATFORM
COMPUTE UTILITY PLATFORM
Monetize the cloud and transform the industry by
enabling ecosystem of participants, partners, and
customers to leverage each client’s individual platform to find new ways to win in the
market
Empower the business to turn data into acompetitive advantagethrough advanced and predictive data analytics
Transform the Enterprise by building new business models around data and analytics capabilities and platform for innovationEstablish a foundation and
create the elastic cloud utility (e.g. IaaS, PaaS,SaaS)
Utilize the movement to Cloud to centralize data assets for the
business to leverage
Business Experimentation – Jointly drive cloud exploration through iterative 2-3 month sprints that capture short-term benefits and lessons-learned
DERIVING CLOUD VALUE
1. End User Enablement –Improved self-service
2. Security - Enhanced security posture through continuoustesting
3. Elasticity - Scale with demand and in response to resiliencyneeds
4. Speed to Market – Build technical & business capabilities more rapidly
5. Variable Cost – Enable pricing based onconsumption
5 KEY GOALS
CLOUD JOURNEY IN INVESTMENT MANAGEMENTCloud is not about “the Cloud”; moving to the cloud is the first step to amplifying business value and solidifying market leadership
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• Analyse data real-time
• Build custom machine learning models
• Build mobile apps
• Manage & analyse IoT Devices
• Access blockchain
• Build & Run AR & VR Applications
• Analyse an Image
• Comprehend Text
• Transcribe Audio….and more!
Using cloud to go beyond an infrastructure platformEnterprises are becoming increasingly focussed on developing and packaging analytics, AI, AR and VR solutions; its not just about providing a platform
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Customer Centricity Regulatory Recalibration
Reimagining Workforce
Technology Management / Transformation
Fintechs & Big TechsCybersecurity
Digital Experience
Providing a tailored and integrated client portal experience and
creating a cohesive brand experience
Client Reporting & Analytics
Leveraging cloud as an analytics platform
for real-time customer insights and customer
segmentation
Data Center Transformation
Moving physical / on-premise data centers
onto public and hybrid Cloud platforms
Containers, APIs & Micro-Services
Exposing data and services through APIs and micro-services to
enable faster and easier access to data
Master Data Management
Providing consistent client views across
channels and identifying cross sell
opportunities
Regulatory Reporting
Migrating traditional regulatory reporting platforms to Cloud-based solutions for
enhanced performance
Risk Management
Leveraging scalability of Cloud to improve
risk management e.g., Running Value at Risk
figures
Cloud-based Security
Analyzing and implement security
and compliance requirements for cyber
security
Risk Controls
Establishing AWS / GCP / Azure controls & responsibilities to address cyber risks
Chatbots
Leveraging Chatbots' Cloud-based systems
as messaging platforms to support customer interactions
BlockCloud
Leveraging blockchain based Cloud storage as decentralized and trusted data stores
Payments
Facilitating real-time account transfers,
cross border payments, and ability to extract value from
payment data on Cloud
Employee performance
Using Cloud-based AI algorithms to advise sales teams real-time on the sequencing of
product offers to increase likelihood of
closing a deal
Human Capital Management
Leveraging Cloud-based financial and
human capital management solutions
for planning & budgeting
EMERGING USE CASESCloud is influencing key trends leading to emerging use-cases that solve for unique business challenges
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Cloud Nerve Center
ARCHITECTURE
TALENT
PARTNER / ECOSYSTEM MODEL
VALUE MANAGEMENT
OPERATING MODEL MIGRATION Organizational Rewiring Cloud Capabilities & Services Cloud Policies & Processes Governance Model
Business Risk Data Sovereignty Business Interactions Location Strategy
Application Portfolio Alignment Workload Suitability & Placement Migration Planning
Application Modernization & Readiness
Execution Verification & Stability
Cloud Service Providers Managed Service Providers Tools & Software Providers
Vendor Governance Strategic Sourcing & Procurement Ecosystems & Alliances
Cloud Native Architecture Network Connectivity Cyber Security ITSM
Service Definition, Operations, & Delivery
Cloud Platform Engineering Innovation
‘Future of Work’ / Talent Model Change Management Training & Enablement Leadership Development Culture
Skill & Capability Requirements Hiring & Retention Strategy Cloud Role Definitions
Strategic Alignment Business Case / TCO Model Growth / Usage Projections Investment Forecasting & Tracking
Benefits Tracking (Quantitative & Qualitative)
Market Benchmarking Technology Fueled Business
Opportunities
BUILDING BLOCKS OF CLOUDThe successful building blocks of a successful cloud journey
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Example:
Billing and metering is a new service in the future state that will
track billing and measure usage
Example:
Cloud Center is a new tool that will be implemented to
monitor billing and metering
The new and existing services IT sources and provides to the
organization to enable business
outcomes to be met
The ability of an organization to
deliver services to the business
through streamlined capabilities
The technologies and tools that are implemented to
deliver more effective services to
an organization
The functions required to effectively deliver the services,
including the optimal mix of sourcing and
locations
The governing bodies and controls needed
to architect, build and deliver the services to meet business needs
The skills and management of staff needed to
deliver services to the organization
What services will be provided
after the transition?
Which capabilities need to be added or
transformed?
Which new tools need to be
implemented?
What are the functions & roles and how does the organization need to be structured to
deliver new services?
How are decision rights impacted
and how is success
measured?
Which new skills are required and how will they be
obtained?
SERVICES CAPABILITIES TECHNOLOGY FUNCTIONS & ORG STRUCTURE
GOVERNANCE / METRICS
TALENT
Example:
A new Cloud Engineering sub-function has been
defined and will be responsible for deploying
Cloud Center
Example:
Cloud billing & metering knowledge will be
required to integrate and deploy Cloud Center
Example:
A defined Cloud Governance Board will
oversee billing and metering KPIs & make
key cloud-related decisions
Example:
IT Service Charging is a new shared capability
required to deliver billing and metering services
An operating model defines, what IT provides, how IT provides it, from whom services are provided, and how IT is governed andmeasured
IT Operating Model Defined
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When you define and implement your new Operating Model, consider an agile approach
Cloud Operating Model
Allocate and prioritize funding and be accountable for benefits
Prioritize applications and execute migrations
Conduct testing / certification for migrations
Assess, remediate any business process impact
Own the business engagement and change management
Comply with the risk framework and other approvals
Continuous optimization / efficiency
Cloud native app development (Greenfield Training / deployment support
Application patch management
Cloud Governance and Compliance
Cloud Svc. Mgmt. Office Risk and Compliance Other Functions
Segment (CTO) Application Teams
Own metering / billing / TCO Maintain service / product catalog Manage supply / demand of cloud
services ORM primary interface for policy
changes
Own and evolve Risk Framework Set risk appetite thresholds for
migrations and operations
Audit Legal (MSA,
Contracting Support)
Strategic Sourcing
(MSA, Contracting Support)
Finance (Billing, Invoicing, Compliance)
Cloud Strategy & Arch.Platform Serv. / Engineering
Migration Enablement CenterCloud Eng. Security
Define target cloud architecture and tools / automation landscape
Overall application strategy (e.g. SaaS first, Container strategy)
Identify emerging trends and new capabilities to implement
Work with segment application teams to identify candidate apps that align with architecture strategy
Stand-up Essential Services on cloud
Create / maintain standard platform services
Own services and service costs
Certify and deploy tools / automation capabilities
Coordinate app migration schedules across app teams
Define and maintain standard migration patterns, processes and best practices
Define and govern entry and exit criteria for application migrations
Migration tool support and third party integrations
Training / deployment support
Setup infra and app security on cloud
Anticipate impact of legal, compliance and industry events
Cloud Infrastructure Operations
Infrastructure, Event and App Monitoring Infrastructure Support Infrastructure Patch Management
Server / Storage / DB Mgmt Provisioning Automation Back-up and Recovery
Security Operations
Security Operations Security Monitoring Threat / Vulnerability Mgmt
Cloud Operations
Centralized
Executive Leadership
Segment 1 Segment 2 PMO/CIO
DevOps CoE
Hybrid
Executive Leadership
Segment 1 Segment 2 PMO/CIO
Enterprise DevOps CoE
Segment PMO
Segment PMO
Segment 2 DevOps CoE
Segment 1 DevOps CoE
Decentralised
Executive Leadership
Segment 1 Segment 2 PMO/CIO
Segment PMO
Segment PMO
Segment 2 DevOps CoE
Segment 1 DevOps CoE
DevOpsCoP
Cloud CoE DevOps CoE
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Part 2 Cloud Adoption
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Your Cloud Adoption JourneyEvery business will have their own journey to the cloud, starting at different points and working at their own speed.
Most businesses start with project driven initiatives
• Utilising capabilities only available from cloud
• All new projects delivered with cloud
Laying the foundations
• Building out a public cloud CoE
• Delivering hybrid cloud’
Migration
• Mass migration of on-prem systems to public cloud
• Refactoring, remediation and optimisation of
systems to leverage more cloud native solutions
Reinvention
• Redefining the way in which you think about IT
• Leveraging latest cloud technologies, e.g. serverless
VALU
ETIME
REINVENTION
RETIRE TECH DEBT
CLOUD-NATIVE
PROJECTFOUNDATION
MIGRATION
REINVENTION
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Executing a cloud migration is a lot like building a car onlineJust like with car shopping, companies will each have their own reasons for considering a cloud migration…
$5/g $2/g
Speed to execute quickly and agility to execute
adaptively
Reduce financial and technical risk by
decommission legacy data centers
Financial savings year over year
Ability to leverage AI, ML, Analytics and Automation
Services
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Avoiding RoadblocksThe journey to the cloud is not always easy, and there are challenges, both business and technical, that can be encountered
Lack of a cohesive strategy
Misalignment of skills
Antiquated process and tools
Traditional architecture standards
Manual, painful discovery
Trial and error migrations
Lack of business participation
Inadequate security, compliance and regulatory oversight
Cost overruns
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Migration Lessons from the TrenchesAcknowledging the causes of failure has helped shape our approach – Lessons from the trenches
5: Attempts to capture too much data up front, resulting in stale / partial information
1: Un-realistic effort estimates; especially on application side, and to transform to cloud
2: Poor business case, not tying back to the operational gains of transformation
4: Lack of an industrialized approach to design and migrate, supported by automation tools where possible
6: Inability to break up complex environments into simple, constituent parts
3: Insufficient business or app team stakeholder engagement
60%of the total cost of a new data centers or platform can be attributed to migration of the applications onto the platform
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The Need for a Migration FactoryThe adoption of a highly efficient and scalable application migration process is needed to enable organizations move workloads and data to the cloud
Enhanced Efficiency
Set of common practices, identified tools and resources to help in the efficient migration of applications
Tool Based Automation
Identification of appropriate tools relevant to each migration path which helps enable timely execution of all migration related tasks
Analyzing resource requirements of application groups, develop resource plan, forecast migration costs and monitor the benefits obtained from migration
Cost Transparency and Alignment
Applications with similar personas should be migrated using standardized approaches helping to reduce cost and complexity of execution
Uniformity and Standardization
Formulating the ideal organization and migration team structure to conduct large scale migrations and also list out key skills needed to enable the same
Team Structure & Skillset Management
Outlining a framework to implement a robust operating model that supports mass migration of applications to cloud
Well Defined Operating Model
Key Reasons for Adopting a Large Scale Migration Approach
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Financing Your Cloud MigrationA migration factory can help you significantly lower the breakeven ROI timeframe
Discovery and Planning Highly manual processes and
inaccuracies in data collection and subjective reporting
Unknown interdependencies between applications and assets before migration
Ghost Assets: 28% of servers and VMs are unknown within any given data center
Migration and Operations Manually migrating a server can cost up
to 10x the cost of an automated software solution
Clients struggle maintaining business continuity during migrations. The cost of downtime can quickly add up
Outside of Cloud, servers are under-utilized by 43%
A recent Deloitte client business case found that capabilities enabled by the cloud drive significant growth and innovation for our client’ business (NPV: 5yr, 10%):
-$175K6.7 Year Payback
$90K Recurring Savings
$8.7M 1.6 Year Payback
$4.1M Recurring Savings
$346M
Cloud Compute Costs
Business Value(e.g. Automation, Analytics,
Acceleration to Market)
IT Value(e.g. DevOps, API Integration,
Self-Service options)35 months
to see a break-even ROI after a manual migration
10,5 monthsAverage migration time to achieve ROI using the tool plus onetime migration costs
80% OF COMPANIES FAIL THEIR MIGRATION JOURNEYS WHEN THEY DON’T HAVE A MIGRATION PARTNER
DID YOU KNOW?• Deloitte works with all major cloud providers to gain financial incentives on behalf of our clients (e.g. the Migration Acceleration Program – MAP)• The costs calculated can help revise the landing zone decision – if the application is more suitable for private cloud but provides higher savings on public cloud, the latter can
be chosen• Until cutover, the organization will have to incur the costs of both on-premise and cloud environments – once the cutover is complete the on-premise environments will be
decommissioned and expected benefits will be realized• Initial years might see a spike in total expenditure due to the additional effort involved in build out and migration activities
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Expected Engagement DeliverablesThrough automated discovery and migration a number of key business benefits are derived
Complete IT blueprint Base decision on hard facts
Server utilisationEnables automated right-sizing of cloud instances to reduce cost
Dependency mappingVisualize application stacks and ensure nothing is left behind
Cost projections Compare costs of current state and recommended state IT and understand impact of customisations
API integration Reduce migration delivery timelines through automated provisioning
Live migrations Maintain normal operations with minimal downtime and save money
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Acquisition of ATADATA’s market-leading cloud management platform business extends Deloitte’s ability to help clients
rapidly embrace cloud
Alliances and Partnerships
CertifiedFor Migration Competency
CertifiedFor Mass Migration
CertifiedMigration Tool for SAP S4, HANA &
Oracle
CertifiedCloud Partner
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Success Stories
Scalable 124,000+
servers migrated
143,000+
servers discovered
4.1 PBData Migrated
70,000+
Applications Migrated
240Migration Projects Delivered
ClientEcosystem 125+
Clients Served AcrossThe Globe
10+Countries with available
Migration Services \
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How to Measure Success?Key metrics have to be identified and measured during and after individual migration sprints to ensure that the expected benefits are attained throughout the migration
Illustrative Metrics for Cloud Migration1
FINANCIAL METRICS PERFORMANCE METRICS RELIABILITY METRICS SECURITY METRICS
Total TCO Savings of 25%
Infra Savings of around 50%
Payback to be realized in 2 years
Reduction of staff hours by 20%
CPU utilization is above 70%, indicating resource optimization
Response time improved 3 times over on-premise
Instance provisioning time reduced to minutes from days
Unused storage footprint reduced to 5%
DR Failover time reduced to 2 hours
Outage duration reduced by >50%
Solution has an overall SLA of 99.95%
Mean time between failures increased by 40%
100% instances have automated monitoring
Data retention policy increased to 7 years
Security incidents reduced by 30%
All workloads run on hardened golden images
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How to Get Started…Building a Cloud Adoption Framework will help to identify the areas from which you can get the biggest return, fastest payback or deliver on your business goals
It starts and ends with your outcomesOutcomes a re un ique fo r each en te rpr i se , bu t
they a re a lways d i rec t iona l
Improve…
Increase…
Decrease…
Reduce…
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Each enterprise journey is unique
DIFFERENT COMPLIANCE AND SECURITY NEEDS
DIFFERENT LEGACIES
DIFFERENT RISKS
DIFFERENT WORKLOADS
DIFFERENT GOALS
DIFFERENT PERFORMANCE AND RESILIENCE NEEDS
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The Cloud Adoption Framework helps organizations understand how cloud adoption transforms the way
they work.
It leverages our experiences assisting organizations from every segment and every geography with their
cloud adoption journey.
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The Cloud Adoption Framework focuses on minimalizing the barriers so you can rapidly
transform your business with cloud.
It helps you create and Action Plan tailored to your organization’s needs.
Questions?Thank you!