The document summarizes a presentation about driving cloud strategy and planning. It discusses:
1) How enterprise architects must drive cloud strategy and planning to connect business strategy to implementation through cloud.
2) An end-to-end cloud strategy and planning framework that takes a business value driven methodology to enable selection of the right cloud investments.
3) How the framework embraces and extends proven cloud practices, provides tools and guidance, and is based on real-world customer engagements.
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EA's Must Drive Cloud Strategy Planning
1. Open Group Conference San Francisco
EA’s Must Drive Cloud
Strategy & Planning
Mike Walker | Enterprise Strategy and Architecture | Microsoft Corp.
http://www.MikeTheArchitect.com
4. State of Affairs
Today's Why Enterprise Architects
Session End to End
Method
How Microsoft builds
Cloud Strategies
4
5. End to End overview of the Cloud Strategy
& Planning (CSP) Framework
What to
Expect
No detailed demos will shown. Expect
detailed modules to cover these aspects
Why CSP is important to you and your
engagements
5
6. Cloud is Here
Gartner estimates, over the Over 80% of IT leaders
next five years, enterprises indicate that their staff will
will spend $112 billion need to develop new skills.
cumulatively on cloud
services
91% of IT Professionals
anticipate in 5 years cloud
will overtake on-premises
computing
6
11. “50% of all Technology Initiatives
are a Waste of money…. “
11
12. “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
12
13. Cloud is
Different Pressures on the
CIO
Disruption in
Technology
Enablement
13
15. 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
15
17. Competencies
Cost Control Governance, Regulation
and Security
Increased Advances in Technology (e.g.,
Business Demands Cloud, CoIT, etc.)
Market Disruptors Optimize IT
Heightened Manage Technology
Customer Demands Disruptors
IT Performance and
Economic Impacts
Responsiveness
Aid with Business Problem Solving Talent Management
17
24. Apply TOGAF to Cloud
Strategy and Planning
Business Transformation
Strategy Rationalization Cloud Valuation
Planning
Distill the business and IT Evaluate a prioritized set of cloud Prioritize investment
strategies to identify cloud ready opportunities. Assess business and opportunities, balanced across the
capabilities that align to strategy technology capabilities based on enterprise and integrated into a
and provide the maximum amount the value and risk they bring the transformation roadmap.
of value with low risk to the company.
business.
26. The Cloud Strategy & Planning
Framework (CSP)
Business Value Driven Methodology
enabling selection of the right cloud
investments
26
27. Business Value Driven Methodology
Market and Business Demands
Business Strategy
Information Technology Strategy
Value Drivers
Enabling Capabilities
27
28. The Cloud Strategy & Planning
Framework (CSP)
Business Value Driven Methodology
enabling selection of the right cloud
investments
Embraces & Extends Proven Cloud
Practices
28
30. The Cloud Strategy & Planning
Framework (CSP)
Business Value Driven Methodology
enabling selection of the right cloud
investments
Embraces & Extends Proven Cloud
Practices
An Initiative in a Box Enabled by a set of
Tools, Guidance & Real-World Examples
based on actual customer Engagements
30
31. The Cloud Strategy & Planning
Framework (CSP)
Business Value Driven Methodology
enabling selection of the right cloud
investments
Embraces & Extends Proven Cloud
Practices
An Initiative in a Box Enabled by a set of
Tools, Guidance & Real-World Examples
based on actual customer Engagements
Connected to Solution Architecture Methods
31
32. Cloud Strategy & Planning Method
Business Transformation
Strategy Rationalization Cloud Valuation
Planning
Distill the business and IT Evaluate a prioritized set of cloud Prioritize investment
strategies to identify cloud ready opportunities. Assess business and opportunities, balanced across the
capabilities that align to strategy technology capabilities based on enterprise and integrated into a
and provide the maximum amount the value and risk they bring the transformation roadmap.
of value with low risk to the company.
business.
32
34. Rationalize & Distill Value
Why
Strategy Maps Motivation Model Benefits Dependency Network
What
Who
How
Value Chain, Shop, Functional & Organizational
Capability Map Network Decomposition
When
IT Portfolio Plan Roadmap Business Transformation Plan
34
37. Strategy Cloud Valuation
CloudBusiness
Defined
Transformation
Example: Cloud Patterning Matching
Planning
Channel Mgmt.
Distribution
Claims
Sales
Business Mgmt.
Contract Mgmt.
37
38. Business
Strategy Cloud Valuation Transformation
Value & Risk Impact Assessment Tool
Planning
38
39. Business
Strategy Cloud Valuation Transformation
Enterprise Risk Tolerance Assessment
Planning
Tolerance
1. ??
Tolerate Net Loss to the
Business
Tolerate No Realization of
Business Objectives
39
40. Business
Strategy Cloud Valuation Transformation
Capability Prioritization
Planning
Prioritized list of cloud opportunity candidates
Prioritization Analytics
Risk
Architectural Organization Technical
Capability
Business Governance Technical Operations Fit al Readiness Readiness
Distribution L L M M M H H
Claims VH L H VH H M H
1.
Executive Rollup
2.
3.
40
42. Business
Strategy Cloud Valuation Transformation
Business Capabilities Heat Map
Planning
Management Control &
Core Business Generic Support Functions Internal Control Functions
Reporting
Planning Distribution Input Management HR Management
Business Partner
Reporting Proposition Facility Management
Management
Distribution Channels
Risk Management Financial Management Financial Management
Support
Employee Event
Production Reinsurance
Management
Primary Purchasing Incentives and Commissions Secondary Purchasing
Document Management IT Management
Communications
Output Management
Management
Financial Processing
42
43. Business
Strategy Cloud Valuation Transformation
Planning
Cloud Risk Assessment Method and Framework
Risk Assessment Method Risk Assessment Framework
Identify the risks related to deploying a
solution in the cloud
Identify
Assess risks for likelihood and impact
to solution components
Assess
Develop solution or strategy for risk
remediation
Remediate
Incorporate final risk ratings into cloud
adoption planning
Plan
44. Cloud Strategy & Planning Method
• Clarify Business Intent
• Identify enabling
Identify Innovation-based solutions
• Analyze the solutions’ based on Risk &
Business Value
• Prioritize High Risk Solutions with the
Highest Business Value
• Detailed assessment
• Determine risk tolerance the organization
Assess is willing to accept
• Understand impact and probability
• Apply risk assessments to mitigation
architecture & planning
Remediate • Determine if solutions are eliminated
based on risk tolerance
• Identify options and architectures to
mitigate risk
• The key input into the prioritization
activity in the Business Transformation
Planning phase
Plan
• Determines one or more risk mitigation
plans for selection
44
46. Business
Strategy Cloud Valuation Transformation
Example: Unified Communication
Planning
Deploy Unified Collaboration for <Enterprise> on using SaaS in a Partner Cloud
Valuation Key
SaaS 3.08 3.40 3.52 1.00
5 Exponential Returns
4 High Returns
PaaS 1.00 1.00 1.00 1.00
3 Moderate Returns
2 Marginal Returns
IaaS 3.16 3.32 3.36 1.00
1 Avoid Investment
Traditional Private Partner Public
Architecture Value Risk Readiness
Target Model Reduce
4 - Replace 4 - Important Business 2 - Low Risk Organizational 4 - Minor Gaps
Feasibility Complexity of IT
Capability Reduce P&C 4-
5 - Ideal Fit 1 - Not Aligned Governance 2 - Low Risk Technical
Requirements Risk Customization
Increase Value
Security 4 - Lack 1 - Marginal
and Lower IT 4 - Important Technical
Requirements Experience Risk
Spend
Data 3 - Partially Enable Positive 1 - Marginal
4 - Important Operational
Requirements Compatible IT Experience Risk
Identity & 4 - Federation w Most Trusted
Access Mgmt Config 1 - Not Aligned
Insurer
46
47. Cloud Strategy & Planning Method
Business Transformation Planning
47
48. Business
Strategy Cloud Valuation Transformation
Planning
Example: Opportunity Prioritization
Opportunities in context of value and risk
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
Low
Risk
High
Low Business Value High
48
49. Business
Opportunity Dashboard
Strategy Cloud Valuation Transformation
Planning
Initiative Overview
Pattern Risk-Adjusted Value
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 Virtualization
2. Client Security
4
High Priority
Value Risk
(scale: 1 – value not likely realized, 5 – value very likely realized) (scale: 1 – marginal risk, 5 – likely catastrophic damage)
• Higher ROI and reduced TCO
• This capability directly supports all
• Reduced security breaches and end-user
Key Benefits Key Risks/Challenges employees, business units, and business
disruptions
processes
• Mitigates business and compliance risk
Increase
Reduce Enable Most
Reduce Value and Business Governance Technical Operational
Complexity Positive IT Trusted
of IT
P&C Risk Lower IT
Spend
Experience Insurer
4 Risk Risk Risk Risk
2
High
4 1 4 3 4 1 1 2 3 Low Risk
Value
Readiness
Technical Readiness Organizational Readiness
Integration Technical Readiness Organizational Organizational Readiness
Maturity Staff Concerns
Dependencies Score Concerns Score
Virtualization platform
Security infrastructure
Integration with HP 5 Ability to rationalize
Current multi-ESP
situation
Limited knowledge of
client platform within
Contoso due to
3
BTO outsourcing Semi-prepared
Proven Technology
Organization
50. Business
Strategy Cloud Valuation Transformation
Planning
Example: Cloud Pattern Matching
Name: Mobile Initiative Business Capability: L1: Payments L2: Mobility IT Capability: CRM, Portal, Integration, BI
Solution(s): Customer Portal, Mobile App, Micro-Payments Engine, Integration Bus, Reporting
A1. Customer Portal
SaaS
A3. Reporting
A2. Online Banking
Platform
PaaS
A4. Data Warehouse –
Customer Master
IaaS
A5. Core Banking
Systems
A7. Micro-Payment Engine
Public Private Community Traditional
51. Business
Strategy Cloud Valuation Transformation
Planning
Example: Cloud Pattern Matching
Internet Internet On Premises - Banking Applications
Clients Azure Gateway
Banking Solution
Account Balance
Adapter
Balance
Data
Legacy Balance System
Web Application
Azure Connect
Credit Card
Adapter
Credit Card
DB
Web
Mobile Services Credit Card Systems
Web Banking Interfaces
Services
Banking
Application Solution
Customer Account
Adapter Account
DB
Customer Account Systems
54. Recap: Method
Business Transformation
Strategy Rationalization Cloud Valuation
Planning
• Project charter defining the scope • Supportive Cross-Organization
of the analysis Analysis Teams
• Defined investment opportunities
• Strategic vision for cloud • Current state capability
• Prioritized and integrated into a
computing assessment
business transformation roadmap
• High-priority capabilities for cloud • Target capability service and
migration deployment patterns
• Ensures a clear understanding of
• Ensures cloud investments are • Provides a portfolio of
the value and risks of the future
aligned with IT and business investments, balanced across the
strategic business model for cloud
strategy enterprise and its capabilities
computing
• Unlike many thinly-veiled
• Microsoft’s capability and • Enables ongoing management of
technology-specific approaches,
assessment frameworks and investments and continued
Microsoft presents a holistic
expertise enable a smooth, aligned between strategy and
approach which prevents
transparent, valuation process architecture
fragmentation
54
55. Recap: Method
Qualified Quantified Planned
Business Transformation
Strategy Rationalization Cloud Valuation
Planning
• Project charter defining the scope • Supportive Cross-Organization
of the analysis / ASOW Analysis Teams
• Defined investment opportunities
• Strategic vision for cloud • Current state capability
• Prioritized and integrated into a
computing assessment
business transformation roadmap
• High-priority capabilities for cloud • Target capability service and
migration deployment patterns
• Ensures a clear understanding of
• Ensures cloud investments are • Provides a portfolio of
the value and risks of the future
aligned with IT and business investments, balanced across the
strategic business model for cloud
strategy enterprise and its capabilities
computing
• Unlike many thinly-veiled
• Microsoft’s capability and • Enables ongoing management of
technology-specific approaches,
assessment frameworks and investments and continued
Microsoft presents a holistic
expertise enable a smooth, aligned between strategy and
approach which prevents
transparent, valuation process architecture
fragmentation
55
56. Recap: Tools & Templates
Tool Description Tool Description
Charter – Template to Capability Prioritization –
authorize the project and Further refinement of each
define scope, stakeholders business capability with
and timeline respect to cloud risk, fit and
readiness
Enterprise Capability Cloud Envisioning
Assessment – Enterprise Workshop (CEW) – An
level 1 capability analysis to executive level workshop to
segment a customers establish terms and educate
portfolio for the discovery of along with cross-enterprise
cloud opportunities. facilitated assessments.
Business Heat Map – Capability Profiling – Rollup
Graphical view of an dashboard of a given
organization based on capability to determine the
business capabilities and level of value and risk it
cloud attributes like risk, provides in the context of
value, fit and readiness cloud.
56
57. Recap: Tools & Templates
Tool Description Tool Description
Cloud Pattern Valuation – Cloud Opportunity
Robust metric driven analysis Dashboard – A dashboard
tool used to determine which that provides a complete
cloud service and rollup of the Cloud Valuation
deployment models should assessments into one sheet
be used for a solution. to support decision making.
Cloud Pattern Matching – Cloud Strategy
Graphical tool to connect Presentation – Template to
service and deployment be used to present findings
models with business or back to the customer.
technical capabilities.
Portfolio Analysis – A tool to Cloud Taxonomy –This
plot cloud opportunities to a taxonomy provides a way of
grid based on Business rationalizing cloud specific
Priority, Value, Risk and cloud implementation
Effort to aid in the decisions.
roadmapping.
57
58. Recap: Tools & Templates
Tool Description Tool Description
Cloud Risk Framework – A CSP Project Planning –
risk reference model that Examples of a defined
identifies the key aspects of project engagement, with
cloud risk to be assessed. timelines, milestones,
activities and deliverables.
Cloud Risk Method –
Process for applying a risk
classification to a potential
cloud solution.
58
61. Resources
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