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© confidential 1
The “Social physics” of
cloud-native transformation
Changing
organizational inertia
October, 2019
© confidential 2
Successful
businesses today
compete on their
ability to provide
great “experience”
and ”adapt”.
© confidential 3
This requires them to
become “high velocity
engineering
organizations”… and
benefits are visible
High
Low
Lengthy cycles
10-15% of firms
Short, Frequent deployments (weeks to daily)
~80% of firms
Standard DevOps tools & practices
1000’s of deployments/ day
> 5% of firms
custom DevOps solutions
TechMaturity
Most companies
© confidential 4
moving to cloud is
the key to becoming
a high velocity
engineering
organization
Organizations have already realized Cloud is the engine of
digital transformation and the key to ongoing business
evolution and innovation
86% business & IT leaders willing to continue investments
in cloud to contribute to their digital growth
(Source: Forrester)
© confidential 5
We are in the
2nd generation
of cloud adoption.
Enterprises are increasing looking at cloud to
enable business transformation as opposed to
cost efficiency in the 1st generation
© confidential 6
Cloud for digital
will overtake
Cloud for
efficiency.
as the top strategic priority of the
enterprise in 2 years.
70%
64%
57%
30%
36%
43%
2016 2017 2018
Enterprise Strategic Priorities
% of C-level respondents highlighting top strategic priorities wrt cloud
Cloud for efficiency Cloud for Digital
© confidential 7
But somewhere,
something is
amiss…
Though Organizations are embracing cloud at
unprecedented scale, but somewhere in this
excitement, the inherent difficulties of this
journey were concealed…
• Cost overruns
• Migrations costs overruns
• Time overruns
• Application complexity
© confidential 8
And the gap between
the expectation vs.
reality of cloud
migration is highly
about “skills and
Culture”
After some initial success, more often than not,
the enterprises face frustrating roadblocks in
their transformation journey as the momentum
slows down…
© confidential 9
So what is the
winning strategy
for cloud “native”
migration?
One which sustains the momentum and leads to a
systemic and pervasive enterprise transformation
…
One that doesn’t fizzle out soon after the initial
gung-ho?
© confidential 10
Wipro’s
Point of View.
© confidential 11
Identify the right force
multipliers
Adopt the right
operating model
Select the right
partner
Our approach pivots around 4 key
factors that equips you with the right
enablers and help supply impetus to
your cloud-native movement.
Identify the right driver
© confidential 12
there is a need to first
appreciate the right drivers.
TCO reduction is no longer the main driver of
cloud adoption.
Enterprise should look for ROI not just in terms
of cost reduction but in the ability to innovate
faster, scalability & reliability and improving
customer experience.
Changing the mindset from “cost-plus” to “value-based”
Drivers
Margin
O/H
Direct Cost
PRICE
Brand/Image
Service
benefits
Product
benefits
PRICE
Product
benefits
Service
benefits
Brand/Image
PRICE
Cost+ Current value Optimized
value
Pricing
opportunity
© confidential 13
Successful Cloud Native
adoption requires a SMART IT
operating design and model.
By operationalizing the model, companies can realize
Cost Savings through an improved business value focus
25% to 30% gain in productivity from smart workforce engagement
SPEED
Seamless infrastructure
provisioning
Rapid Application
development and deployment
cycles
RESILIENCY
Self-healing application
Self-healing &self-learning
infrastructure
Embedded security
TRANSPARENCY
Collaborative organization
design
Lack of operation siloes
Business-aligned IT service
delivery
AUTONOMY
Auto-scaling applications
Autonomous infrastructure
Continuous integration and
delivery
MODULARITY
Ability to add or modify the
application features
Scalability of independent
service components
Operating model
© confidential 14
Force multiplier :
A tool/methodology that
dramatically
amplifies your effectiveness
Inertia
© confidential 15
Force multipliers
that can improve
developer
productivity.
• Code Generators
• Spring Boot
• Spring Data Rest
• J-Hipster
• End to End Automation
• Platform as a Service
• Function as a Service
10x Developers are rare. Trying to
convert an existing 1x developer to 10x
through training or Dojos will only get
you to probably a 2x or 3x but you can
supplement it with tools that provide an
opinionated approach to programming
that auto generates high quality code,
automation, abstracting the target
environment etc.
Force Multiplier
© confidential 16
Force multipliers
that can improve
Infrastructure
Operations.
• Consolidate workload silo’s
• Coexistence with existing VMWare
hosts – eliminates redundant
hardware
• Better staff utilization by
removing the need for discrete
skillsets
Force Multiplier
HYPER CONVERGED INFRASTRUCTURE (HCI) FOR HYBRID CLOUDS
• Training is simplified
• Opex and Capex Improvements
- rolling upgrades,
- add nodes when needed
© confidential 17
Force multipliers
that can enable
Organizational
change.
• Visibility (KPIs, Value realized)
• Dashboards for KPIs and Cloud Native Value
• High Performance systems engineering approach
Force Multiplier
© confidential 18
Force Multiplier
© confidential 19
Selecting the right strategic
partner on this journey is
equally imperative- to fill the
gaps required for your
transformation to succeed.
The right partner will bring in
• Consultative
• The required knowledge and experience to formulate the winning strategy & operating model
• Help with right approach to deal with current complexities (operational and technical)
• Guide you through the complex product vendor landscape while helping you make the informed decision about
products and tools.
• Ability to Scale
• The required roles, talent & skillsets that cannot be sourced internally or recruited easily (i.e. creative
architects, software engineers, analysts, operational excellence experts)
• Inoculating
• Help build internal capability – upskilling & training
Right Partner
© confidential 20
Finally…
© confidential 21
Start from the Bottom Up
Adopt application frameworks such as Microservices, 12-Factor
Applications and operational models such as SMART.
Begin with small groups of people that are not only passionate
about the changes in technology, but are willing to work through
the challenges of more collaborative operations between
Developers and Operations teams.
Start Small, but Expect to Scale
It is critical to identify ways to create change that are small and can
be completed in very short periods. This scope will help the early
groups see success (or fast failure) and avoid analysis paralysis. But
it is also critical for the early team to not bypass all “scalability
thinking”
Choose Visible, Business-Impacting
Applications
Successful transformation teams will typically target a visible
business challenge and apply the new technology to that
problem. The implementation may be a new application, but it
often (also) requires integration with existing business
systems to truly be impactful.
Measure Progress
Successful teams not only measure for baselines, but they
measure many variables throughout the change process to
determine progress and areas for on-going improvement. Often
times, the solution to problems will be different than a “gut
feeling”, and only be revealed by examining the data.
Market Successes Internally
While early transformations may be simple at smaller scale, it is
critical to begin getting broader support for change as the
scope of the transformation grows. This requires an effort to
internally “market” successes and progress to both adjacent
teams and management groups. They not only need to be
aware of the progress, but educated enough to buy into the
changes. People inherently want to be associated with
successful projects, so finding ways to be inclusive will help the
transformation grow beyond the earliest stages.
Identify Executive and Technical
Champions
Any Cloud Native transformation is an ongoing process that
eventually needs both top-down executive support and
broader team support (bottom-up). It is critical to enable these
individuals with the data and success stories that will allow the
details of the transformation to spread to more areas of the
company
Successful Cloud Native organizational changes tend to follow
several core principles

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The Social Physics of Cloud-Native Transformation: Changing Organizational Inertia

  • 1. © confidential 1 The “Social physics” of cloud-native transformation Changing organizational inertia October, 2019
  • 2. © confidential 2 Successful businesses today compete on their ability to provide great “experience” and ”adapt”.
  • 3. © confidential 3 This requires them to become “high velocity engineering organizations”… and benefits are visible High Low Lengthy cycles 10-15% of firms Short, Frequent deployments (weeks to daily) ~80% of firms Standard DevOps tools & practices 1000’s of deployments/ day > 5% of firms custom DevOps solutions TechMaturity Most companies
  • 4. © confidential 4 moving to cloud is the key to becoming a high velocity engineering organization Organizations have already realized Cloud is the engine of digital transformation and the key to ongoing business evolution and innovation 86% business & IT leaders willing to continue investments in cloud to contribute to their digital growth (Source: Forrester)
  • 5. © confidential 5 We are in the 2nd generation of cloud adoption. Enterprises are increasing looking at cloud to enable business transformation as opposed to cost efficiency in the 1st generation
  • 6. © confidential 6 Cloud for digital will overtake Cloud for efficiency. as the top strategic priority of the enterprise in 2 years. 70% 64% 57% 30% 36% 43% 2016 2017 2018 Enterprise Strategic Priorities % of C-level respondents highlighting top strategic priorities wrt cloud Cloud for efficiency Cloud for Digital
  • 7. © confidential 7 But somewhere, something is amiss… Though Organizations are embracing cloud at unprecedented scale, but somewhere in this excitement, the inherent difficulties of this journey were concealed… • Cost overruns • Migrations costs overruns • Time overruns • Application complexity
  • 8. © confidential 8 And the gap between the expectation vs. reality of cloud migration is highly about “skills and Culture” After some initial success, more often than not, the enterprises face frustrating roadblocks in their transformation journey as the momentum slows down…
  • 9. © confidential 9 So what is the winning strategy for cloud “native” migration? One which sustains the momentum and leads to a systemic and pervasive enterprise transformation … One that doesn’t fizzle out soon after the initial gung-ho?
  • 11. © confidential 11 Identify the right force multipliers Adopt the right operating model Select the right partner Our approach pivots around 4 key factors that equips you with the right enablers and help supply impetus to your cloud-native movement. Identify the right driver
  • 12. © confidential 12 there is a need to first appreciate the right drivers. TCO reduction is no longer the main driver of cloud adoption. Enterprise should look for ROI not just in terms of cost reduction but in the ability to innovate faster, scalability & reliability and improving customer experience. Changing the mindset from “cost-plus” to “value-based” Drivers Margin O/H Direct Cost PRICE Brand/Image Service benefits Product benefits PRICE Product benefits Service benefits Brand/Image PRICE Cost+ Current value Optimized value Pricing opportunity
  • 13. © confidential 13 Successful Cloud Native adoption requires a SMART IT operating design and model. By operationalizing the model, companies can realize Cost Savings through an improved business value focus 25% to 30% gain in productivity from smart workforce engagement SPEED Seamless infrastructure provisioning Rapid Application development and deployment cycles RESILIENCY Self-healing application Self-healing &self-learning infrastructure Embedded security TRANSPARENCY Collaborative organization design Lack of operation siloes Business-aligned IT service delivery AUTONOMY Auto-scaling applications Autonomous infrastructure Continuous integration and delivery MODULARITY Ability to add or modify the application features Scalability of independent service components Operating model
  • 14. © confidential 14 Force multiplier : A tool/methodology that dramatically amplifies your effectiveness Inertia
  • 15. © confidential 15 Force multipliers that can improve developer productivity. • Code Generators • Spring Boot • Spring Data Rest • J-Hipster • End to End Automation • Platform as a Service • Function as a Service 10x Developers are rare. Trying to convert an existing 1x developer to 10x through training or Dojos will only get you to probably a 2x or 3x but you can supplement it with tools that provide an opinionated approach to programming that auto generates high quality code, automation, abstracting the target environment etc. Force Multiplier
  • 16. © confidential 16 Force multipliers that can improve Infrastructure Operations. • Consolidate workload silo’s • Coexistence with existing VMWare hosts – eliminates redundant hardware • Better staff utilization by removing the need for discrete skillsets Force Multiplier HYPER CONVERGED INFRASTRUCTURE (HCI) FOR HYBRID CLOUDS • Training is simplified • Opex and Capex Improvements - rolling upgrades, - add nodes when needed
  • 17. © confidential 17 Force multipliers that can enable Organizational change. • Visibility (KPIs, Value realized) • Dashboards for KPIs and Cloud Native Value • High Performance systems engineering approach Force Multiplier
  • 19. © confidential 19 Selecting the right strategic partner on this journey is equally imperative- to fill the gaps required for your transformation to succeed. The right partner will bring in • Consultative • The required knowledge and experience to formulate the winning strategy & operating model • Help with right approach to deal with current complexities (operational and technical) • Guide you through the complex product vendor landscape while helping you make the informed decision about products and tools. • Ability to Scale • The required roles, talent & skillsets that cannot be sourced internally or recruited easily (i.e. creative architects, software engineers, analysts, operational excellence experts) • Inoculating • Help build internal capability – upskilling & training Right Partner
  • 21. © confidential 21 Start from the Bottom Up Adopt application frameworks such as Microservices, 12-Factor Applications and operational models such as SMART. Begin with small groups of people that are not only passionate about the changes in technology, but are willing to work through the challenges of more collaborative operations between Developers and Operations teams. Start Small, but Expect to Scale It is critical to identify ways to create change that are small and can be completed in very short periods. This scope will help the early groups see success (or fast failure) and avoid analysis paralysis. But it is also critical for the early team to not bypass all “scalability thinking” Choose Visible, Business-Impacting Applications Successful transformation teams will typically target a visible business challenge and apply the new technology to that problem. The implementation may be a new application, but it often (also) requires integration with existing business systems to truly be impactful. Measure Progress Successful teams not only measure for baselines, but they measure many variables throughout the change process to determine progress and areas for on-going improvement. Often times, the solution to problems will be different than a “gut feeling”, and only be revealed by examining the data. Market Successes Internally While early transformations may be simple at smaller scale, it is critical to begin getting broader support for change as the scope of the transformation grows. This requires an effort to internally “market” successes and progress to both adjacent teams and management groups. They not only need to be aware of the progress, but educated enough to buy into the changes. People inherently want to be associated with successful projects, so finding ways to be inclusive will help the transformation grow beyond the earliest stages. Identify Executive and Technical Champions Any Cloud Native transformation is an ongoing process that eventually needs both top-down executive support and broader team support (bottom-up). It is critical to enable these individuals with the data and success stories that will allow the details of the transformation to spread to more areas of the company Successful Cloud Native organizational changes tend to follow several core principles