The document discusses implications of cloud computing for enterprise architects. It begins with a disclaimer about forward-looking statements and investment decisions. The presentation agenda then covers talking clouds and building a cloud taxonomy, discussing business capabilities above processes and implementations, the future roles of IT in a hybrid architecture world, and lessons from agile development applied at the architectural level.

2. 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

3. www.iasahome.org/web/uk/certification

4. 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.
From: Jonathan Murray
Worldwide Technology Officer
Microsoft

5. Disclaimer v2

6. 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

7. Clouds clouds everywhere
Business
Offshore Vendors
Service
Outsource Integrators

8. 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!

9. Talking Clouds
A cloud taxonomy and an approach to using it
with key stakeholders from business to IT.

11. 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‟

12. A Simple Cloud View
Provide business services, in a dynamic, efficient, cost
effective and reliable manner that add business value*
Software as a Service
• Complete full function solutions
• Salesforce, Microsoft Online (Hosted Exchange
etc.)
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

13. A Simple Cloud View
Software Software
Platform Platform
Infrastructure Infrastructure
… as a Service

14. Stakeholder view of cloud?
Simple Cost
Exec
Profitable Agile
IT Sales
CLOUD
Innovation Competitive
Production Marketing
Predictable Green

15. Adoption - Extension of Buy Versus
Build

16. Customer Example
Build

17. Customer Example
Build

18. Customer Example

19. Customer Example

20. Customer Example

21. Customer Example

22. Customer Example

23. Customer Example

24. Adopting Cloud
You should start with opportunities to move existing
Move
• Re-house
• Transfer functionality into the cloud, including moving physical
hosting and moving to a Cloud service.
• Augment Systems which can‟t easily be directly moved to the cloud
Enhance
• Extend can still be enhanced by making use of cloud services.
• Re-architect
Over the longer term it is necessary to understand what
Transform
• Re-create 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
Build from
Create
Scratch
services, the cloud can provide the perfect platform.
Outlook: partly cloudy with sunny spells to follow
www.dotnetsolutions.co.uk/Assets/pdfs/Hybrid Cloud White Paper.pdf

25. Business Capabilities
Discuss how looking above process and
implementation at a business's capabilities
enables EAs to engage in different
discussions about the business.

26. What is a business?
Develop
Plan
Business
Customers The business Demand
Partners
Fulfil

27. What is a business?
Develop
Fulfil Demand Procure Resources
Provide Advanced Sourcing
Purchasing
Service Planning Management
Plan
Business
Customers The business Demand
Produce Procure Request Resources
Manage Partners
Product Resources
Create Perform
Requisition Create
Purchase Encumbrance
Approva Auction Bids
Requisitions Check
Processl
Acquire/Purchase Resources
Choose or Manage Consolidate
Verify/ Create
Default Purchase Approved
Negotiate Purchase
Supplier for Item Requisitions
Price Orders
Goods Catalog by Supplier
Logistics Manage
RFI/RFQ/
RFP
process
Purchase
Indirect
Materials
Purchase
Capital
Goods
Purchase
Direct
Materials &
Supplies
Fulfil
Manage Purchase Manage
Automatic Outside Open to Track Open
Replenish- Vendor Buy/Blanket POs
ment Services POs
Approve
Manage & Validate
Purchasing Contract
Methods Payments
Manage Suppliers
Manage Track Maintain Manage
Supplier Supplier Supplier Buyer
Relationships Commitments Catalog Performance
Provide Supplier
Self-Help

28. Anatomy of a Capability
Technology
Process
People

29. Anatomy of a Capability

30. Properties of capabilities
• Stable
• Describe what not how
• Measurable
• Value oriented

31. Valuing capabilities
• Value
– Cost
– Differentiation
– Complexity
– Maturity
• Performance
– Duration/responsiveness
– Accuracy
– Reliability

32. Capability Heat Maps
Border Colour Fill Colour
Capability Business Value Performance
Financial Management High Low High
Human Resources Med Low
Med
Project Management High Med
Property and Advisory High High Low
This heat map indicates that
Financial Management has
a high opportunity value
for improvement.

33. SOA and Capabilities
The problem with SO Junkies!
• 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

34. Myths
• 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

35. 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

36. 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.

37. Adopting Cloud
• Never?
– “Time and tide …”
Copyright Freeform Dynamics 2008
http://www.freeformdynamics.com/fullarticle.asp?aid=318

38. Convergence or Collision?
Physics
Dynamic IT
Internet
Boundary
Erosion
nomics
Eco-
SOA
Sourcing
isation
Global-

39. Move to Multi-Sourcing
Iain Mortimer, Chief Architect, BoAML, AIC2010
channel9.msdn.com/posts/mattdeacon/Talking-Architects-with-Iain-Mortimer

40. IT Organisation of the Future
Business Stakeholder Group
- Board-level responsibility/ownership
- Capability Owners/sponsors
- Customers
Commercial IP Architecture & Service & Change
Department Design Management
- Monitoring
- IP & Data Protection - Portfolio Management - Integration
- SLA/KPIs - Standards & Governance - Service Reporting
- Penalties - Roadmap - Scheduling
- Prime/ Sub Contracts - Design Authority - Service desk
Capability Delivery Team
- Supplier/Service Selection
- Due diligence

41. Predictions for the future of IT
1. IT will physically
contract with focus 2. ITs boundaries
will expand 8. Architecture
on value generation
4. Commercials and and Design will
Service management will be the key
be major IT functions technology
related roles
5. But these can
be sourced
externally too.
3. Services
provided to the
organisation will
IT be at finer levels
6. Data is the key of specialisation
asset to be BUT external
protected over broker providers
process will hide much of
this
7. But this too could
be hosted externally

42. Service Centricity
Business
Offshore Vendors
Service
Outsource Integrators

43. Collaborative/Shared Innovation
• 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

44. 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!

45. Small is the new Big
• Agile doesn‟t
scale
• Agile is feature
led
• Agile doesn‟t
care about
architecture
Standish CHAOS report
blogs.msdn.com/matt_deacon/archive/2009/07/31/projects-failures-on-the-up.aspx

46. Small is the new Big

47. Small is the new Big

48. Exponential Costs
“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.”
Paul A. Strassmann.
http://www.strassmann.com

49. Agile tools at
Enterprise Scale

50. 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

51. Enterprise Planning Poker
A method to …
• Identify and value capabilities
• Cost • Maturity
• Differentiation • Performance
• Complexity
• Obtain broad stakeholder buy-in
– Break down barriers
– Develop joint Understanding, Ownership,
Responsibility, Trust
• Find out what‟s broken!
• Take Action!

52. 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

53. Think …
• Business Capabilities
– Above the process
– Best of SOA (but not OTT)
– Business value oriented

54. 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

55. Think …
• Service Centricity
– A Technology enabled
Business shift
– Effects right across the software
supply chain
– Creates Collaborative/Open
Innovation models

56. Thank you
© 2006 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.