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

2. Why Enterprise Architecture
Must drive Cloud Strategy &
Planning
2

3. Who am I?
3

4. State of Affairs
Today's
Session
Why Enterprise Architects
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
next five years, enterprises
will spend $112 billion
cumulatively on cloud
services
Over 80% of IT leaders
indicate that their staff will
need to develop new skills.
91% of IT Professionals
anticipate in 5 years cloud
will overtake on-premises
computing
6

7. How is this
different from
all other technologies
?
7

8. Pervasive and Deep Impacts
8

9. The Business
Demands
always on
capacity
9

10. We’ve been down
this Road before…
10

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

14. Who do we
turn to?
14

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

16. Why the EA
Competencies
Methods
Tools
16

17. Competencies
Cost Control
Governance, Regulation
and Security
Advances in Technology
(e.g., Cloud, CoIT, etc.)
Increased
Business Demands
Market Disruptors
Optimize IT
Manage Technology
Disruptors
Heightened
Customer Demands
IT Performance and
Responsiveness
Economic Impacts
Aid with Business Problem Solving
Talent Management
17

18. Enterprise Architects
connects Strategy to
Execution
18

19. Enterprise Architects
connects Strategy to
Execution without implementation is
“Vision
hallucination." – Benjamin Franklin
19

20. Connecting Strategy to
Implementation
Strategy
Initiatives
Execution
Programs & Projects

21. What
Methods can
be used?
21

22. Leverage a
Solid
Foundation

23. Tailor a Solid
Foundation

24. Apply TOGAF to Cloud
Strategy and Planning
Strategy Rationalization
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.
Cloud Valuation
Evaluate a prioritized set of cloud
opportunities. Assess business and
technology capabilities based on
the value and risk they bring the
company.
Business Transformation
Planning
Prioritize investment
opportunities, balanced across the
enterprise and integrated into a
transformation roadmap.

25. The Cloud
Strategy &
Planning
Framework
(CSP)
25

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

29. Embraces & Extends Proven Cloud
Practices
29

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
Strategy Rationalization
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.
Cloud Valuation
Evaluate a prioritized set of cloud
opportunities. Assess business and
technology capabilities based on
the value and risk they bring the
company.
32
Business Transformation
Planning
Prioritize investment
opportunities, balanced across the
enterprise and integrated into a
transformation roadmap.

33. Cloud Strategy & Planning Method
Strategy Rationalization
33

34. Why
Rationalize & Distill Value
Value Chain, Shop,
Network
Functional & Organizational
Decomposition
When
Capability Map
Benefits Dependency Network
Who
Motivation Model
How
What
Strategy Maps
IT Portfolio Plan
Roadmap
Business Transformation Plan
34

35. Microsoft Confidential
Understanding Value

36. Microsoft Confidential
Understanding Value

37. Strategy
Example: Cloud Patterning Matching
Channel Mgmt.
Distribution
Claims
Sales
Business Mgmt.
Contract Mgmt.
37
Cloud Valuation
CloudBusiness
Defined
Transformation
Planning

38. Strategy
Value & Risk Impact Assessment Tool
38
Cloud Valuation
Business
Transformation
Planning

39. Strategy
Cloud Valuation
Enterprise Risk Tolerance Assessment
Tolerance
1. ??
Tolerate Net Loss to the
Business
Tolerate No Realization of
Business Objectives
39
Business
Transformation
Planning

40. Strategy
Capability Prioritization
Cloud Valuation
Business
Transformation
Planning
Prioritized list of cloud opportunity candidates
Prioritization Analytics
Risk
Capability
Business
Organization
al Readiness
Technical
Readiness
Executive Rollup
Technical
L
M
M
M
H
H
VH
Claims
Governance
L
Distribution
Operations
Architectural
Fit
L
H
VH
H
M
H
1.
2.
3.
40

41. Cloud Strategy & Planning Method
Cloud Valuation
41

42. Strategy
Business Capabilities Heat Map
Cloud Valuation
Business
Transformation
Planning
Management Control &
Reporting
Core Business
Generic Support Functions
Internal Control Functions
Planning
Distribution
Input Management
HR Management
Reporting
Proposition
Business Partner
Management
Facility Management
Risk Management
Distribution Channels
Support
Financial Management
Financial Management
Production
Reinsurance
Employee Event
Management
Primary Purchasing
Incentives and Commissions
Secondary Purchasing
Document Management
IT Management
Output Management
Communications
Management
Financial Processing
42

43. Strategy
Cloud Valuation
Business
Transformation
Planning
Cloud Risk Assessment Method and Framework
Risk Assessment Method
Identify
Assess
Remediate
Plan
Identify the risks related to deploying a
solution in the cloud
Assess risks for likelihood and impact
to solution components
Develop solution or strategy for risk
remediation
Incorporate final risk ratings into cloud
adoption planning
Risk Assessment Framework

44. 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
44

45. Microsoft Confidential
Bridging Business and IT Capabilities Together

46. Strategy
Cloud Valuation
Example: Unified Communication
Business
Transformation
Planning
Deploy Unified Collaboration for <Enterprise> on using SaaS in a Partner Cloud
SaaS
3.08
3.40
3.52
1.00
PaaS
1.00
1.00
1.00
1.00
IaaS
3.16
3.32
3.36
1.00
Traditional
Private
Partner
Valuation Key
Exponential Returns
High Returns
Moderate Returns
Marginal Returns
Avoid Investment
Public
Value
Architecture
Risk
Reduce
4 - Important
Complexity of IT
Target Model
Feasibility
4 - Replace
Capability
Requirements
5 - Ideal Fit
Security
Requirements
4 - Lack
Experience
Data
Requirements
3 - Partially
Compatible
Reduce P&C
Risk
Increase Value
and Lower IT
Spend
Enable Positive
IT Experience
Identity &
Access Mgmt
4 - Federation w
Config
Most Trusted
Insurer
5
4
3
2
1
Readiness
Business
2 - Low Risk
Organizational
4 - Minor Gaps
1 - Not Aligned
Governance
2 - Low Risk
Technical
4Customization
4 - Important
Technical
1 - Marginal
Risk
4 - Important
Operational
1 - Marginal
Risk
1 - Not Aligned
46

47. Cloud Strategy & Planning Method
Business Transformation Planning
47

48. Strategy
Cloud Valuation
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”
High
Risk
Low
Datacenter Servers provide high opportunity, but has higher risk
Low
Business Value
48
High
Business
Transformation
Planning

49. Opportunity Dashboard
Strategy
Business
Transformation
Planning
Cloud Valuation
Initiative Overview
Pattern
Risk-Adjusted Value
Deploy Client Service capabilities for Contoso using Infrastructureas-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)
Key Benefits
•
•
•
Higher ROI and reduced TCO
Reduced security breaches and end-user
disruptions
Mitigates business and compliance risk
Reduce
Complexity
of IT
Reduce
P&C Risk
Increase
Value and
Lower IT
Spend
Enable
Positive IT
Experience
Most
Trusted
Insurer
4
1
4
3
4
4
High
Value
•
Key Risks/Challenges
Business
Risk
Governance
Risk
1
1
This capability directly supports all
employees, business units, and business
processes
Technical Operational
Risk
Risk
2
3
2
Low Risk
Readiness
Technical Readiness
Maturity
Integration
Dependencies
Virtualization platform
Security infrastructure
Integration with HP
BTO
Organizational Readiness
Technical Readiness
Score
5
Proven Technology
Organizational
Concerns
Ability to rationalize
Current multi-ESP
situation
Staff Concerns
Limited knowledge of
client platform within
Contoso due to
outsourcing
Organizational Readiness
Score
3
Semi-prepared
Organization

50. Strategy
Cloud Valuation
Example: Cloud Pattern Matching
Name: Mobile Initiative
Solution(s):
Business Capability:
L1: Payments L2: Mobility
IT Capability:
CRM, Portal, Integration, BI
Customer Portal, Mobile App, Micro-Payments Engine, Integration Bus, Reporting
SaaS
A1. Customer Portal
A3. Reporting
PaaS
A2. Online Banking
Platform
IaaS
A4. Data Warehouse –
Customer Master
A5. Core Banking
Systems
A7. Micro-Payment Engine
Public
Private
Community
Traditional
Business
Transformation
Planning

51. Strategy
Cloud Valuation
Business
Transformation
Planning
Example: Cloud Pattern Matching
Internet
Internet
Clients
On Premises - Banking Applications
Azure
Gateway
Banking Solution
Account Balance
Adapter
Balance
Data
Legacy Balance System
Web Application
Azure Connect
Credit Card
Adapter
Web
Services
Mobile
Banking
Application
Web
Services
Interfaces
Credit Card
DB
Credit Card Systems
Banking
Solution
Customer Account
Adapter
Account
DB
Customer Account Systems

52. Microsoft Confidential
Example: Cloud Roadmap

53. Recap &
Conclusions
53

54. Recap: Method
Strategy Rationalization
Cloud Valuation
Business Transformation
Planning
• 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
54

55. Recap: Method
Qualified
Quantified
Strategy Rationalization
Cloud Valuation
Planned
Business Transformation
Planning
• Project charter defining the scope
of the analysis / ASOW
• 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
55

56. Recap: Tools & Templates
Tool
Tool
Description
Description
Charter – Template to
authorize the project and
define scope, stakeholders
and timeline
Capability Prioritization –
Further refinement of each
business capability with
respect to cloud risk, fit and
readiness
Enterprise Capability
Assessment – Enterprise
level 1 capability analysis to
segment a customers
portfolio for the discovery of
cloud opportunities.
Cloud Envisioning
Workshop (CEW) – An
executive level workshop to
establish terms and educate
along with cross-enterprise
facilitated assessments.
Business Heat Map –
Graphical view of an
organization based on
business capabilities and
cloud attributes like risk,
value, fit and readiness
Capability Profiling – Rollup
dashboard of a given
capability to determine the
level of value and risk it
provides in the context of
cloud.
56

57. Recap: Tools & Templates
Tool
Tool
Description
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 Opportunity
Dashboard – A dashboard
that provides a complete
rollup of the Cloud Valuation
assessments into one sheet
to support decision making.
Cloud Pattern Matching –
Graphical tool to connect
service and deployment
models with business or
technical capabilities.
Cloud Strategy
Presentation – Template to
be used to present findings
back to the customer.
Portfolio Analysis – A tool to
plot cloud opportunities to a
grid based on Business
Priority, Value, Risk and
Effort to aid in the
roadmapping.
Cloud Taxonomy –This
taxonomy provides a way of
rationalizing cloud specific
cloud implementation
decisions.
57

58. Recap: Tools & Templates
Tool
Tool
Description
Description
CSP Project Planning –
Examples of a defined
project engagement, with
timelines, milestones,
activities and deliverables.
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.
58

59. Conclusions
59

60. Thank You!
mikewalk@microsoft.com
http://www.MikeTheArchitect.com
Follow me on Twitter @MikeJWalker
60

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 -
•
The Enterprise Architecture Capability Model (EACM) -
http://www.mikethearchitect.com/2011/03/iq-isnt-enough-enterprise-architects-mustbalance-with-eq-driven-approaches.html
http://www.mikethearchitect.com/2010/07/the-enterprise-architecture-capability-modeleacm.html

62. © 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.
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