9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 CONTENTS

INTRODUCTION

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY

FORCE #4: MULTI IS THE NEW CLOUD REALITY

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE

FORCE #6: NATIVE VS. NICHE

FORCE #7: SECURE FROM START

FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT)

FORCE #9: GAME OVER. LET THE GAMES BEGIN.

COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 2 THE RATE AND PACE OF CLOUD ADOPTION IS ACCELERATING ACROSS REGIONS AND INDUSTRIES.

WE SEE SPEED. AND COMPLEXITY. AND GREATER RISK. Making the right decision is a make-or-break proposition for most organizations, That’s why we’ve gathered our leading cloud experts to compile this eBook. Our but with expanding choice comes greater risk of failure. Those confused about goal was to highlight how recent trends in impact the job of the cloud computing and where it’s going aren’t alone. CIO in guiding a company’s successful journey. The eBook is based on not only our extensive work helping companies migrate and run their businesses in the cloud, but also on Accenture’s own transformation into a cloud-first business.

COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 3 FORCE #1 FORCE #2 FORCE #3 CAPEX PRIVATE CLOUD CLOUD TIPPING INVESTMENTS FINDS ITS POINT FORCES SECURE THE SPECIALTY IT TO RUN HYPER 3 WINNERS DIFFERENTLY There’s much uncertainty in the market about what

Together, Amazon, Microsoft and –the defines a true private cloud—and when a company Many enterprises are now moving toward a tipping Hyper 3–have invested more than $30 billion in might need one. Successful private clouds are now point, where a substantial amount of their workload capital expense just this past year to build and defined around solving a specific use case, such as is in the public cloud. Unfortunately, most IT scale their global cloud footprint. This substantial conforming to data sovereignty needs or supporting organizations mistakenly treat the new estate as investment is not just for building infrastructure edge use cases. If the goal is agility, cost reduction just another data center and don’t see the need to and facilities. The Hyper 3 are also investing heavily or speed, choices skew public. If, for whatever shift their operating model to the realities of cloud in innovative new services and capabilities that reason, an organization feels on-premises better management. In actuality, operating in the cloud pale in comparison to legacy approaches—leaving fits its needs, options exist but require additional drives a need for a new cloud-based operating companies scrambling to keep up. Alignment of considerations—and all decisions have time, risk, cost model, and, along with it, people with new skills and enterprise IT investment with any or all of the and talent ramifications. new roles. Hyper 3 means an organization will remain competitive in the coming years, managing down technical debt and decoupling from the past.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 4 FORCE #4 FORCE #5 FORCE #6 MULTI IS THE NEW CLOUD NATIVE VS. NICHE CLOUD REALITY MANAGEMENT EMERGES AS Organizations are faced with the tricky decisions The steady adoption of cloud services has created THE NEXT BIG of how, when and where to use niche tools versus a complex computing environment for many CHALLENGE native tools that may sit on top of native providers. companies. Some are in the position to plan for a Teams must understand where the capabilities of multi-cloud environment, while a significant number native consoles start and stop, and derive a strategy In the messy real world of hybrid and multi-cloud of others simply find themselves using multiple and plan for how their organization will function environments, cloud management has become vendors without proper planning, governance or across multiple clouds. Organizations also need to very complicated. Each cloud provider may offer a controls. From a cloud management perspective, understand their comfort zone and risk profile— dashboard to manage its environment, but achieving this new reality makes it difficult for organizations recognizing that many niche providers likely won’t a unified view across a hybrid IT and public cloud to publish policy, manage costs, maintain security, be around for the long haul. estate is no small feat. No two cloud providers ensure compliance or even create a single view expose the same billing or management APIs, showing all cloud resources. and no single tool can handle all of an enterprise’s management needs.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 5 FORCE #7 FORCE #8 FORCE #9 SECURE CLOUD’S PACE GAME OVER. FROM START OF INNOVATION LET THE DRIVES FEAR OF GAMES BEGIN. Most CIOs have come to realize public clouds are MISSING OUT more secure than their own facilities. The critical (FOMO) We’re still early in the maturation cycle of cloud. difference, though, is that threat vectors in the Niche vendors are many but are fodder for cloud have changed. The actions of individuals The rate and pace of innovation in the public acquisition. When that happens, the game changes. can now have a dramatic and immediate impact on cloud are unprecedented, and skilled people in A tool that was once multi-cloud aligned may security and place a significant burden on the CIO to the organization don’t want to miss out and will be become isolated or pivot in some new direction. And maintain a compliant environment. Building security eager to try every new feature. But the enterprise as the Hyper 3 consolidate, competitive intensity into its cloud infrastructure from the start is critical can’t enjoy the level of innovation coming from grows. The game is not constant. Organizations to a company’s ability to take advantage of the new each of the Hyper 3 if it needs to vet every new that align with the Hyper 3 will benefit from greater services cloud providers roll out each year while service. Organizations need an agile policy to make innovation at continually lower costs. But when minimizing potential threats and disruptions. new services available immediately, while creating betting on niche vendors to help them manage all discovery mechanisms and guard rails to or part of their multi-cloud presence, companies understand where, when and how people are need to be aware that the long-term viability of their

using which services. investment is not guaranteed.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 6 THE CLOUD CLEARLY IS FAST BECOMING AN INDISPENSABLE PART OF TODAY’S BUSINESS—BUT IT’S ALSO GETTING MORE COMPLEX AND DIFFICULT TO MANAGE AS COMPANIES’ CLOUD PRESENCE GROWS.

Companies that understand how to use the cloud and get the most from it will continue to have a big advantage over those that don’t, and that gap will only widen over time. The fact is, multi-cloud is here to stay, and companies need a comprehensive approach across operating models, tooling and skills to manage risk and drive success.

We hope this eBook offers some clarity to organizations and their leaders about current market trends that are driving change and innovation in the enterprise—both today and beyond—and, even more important, provides some useful insights to consider when planning for the future.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 7 FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS

By Michael Liebow, Global Managing Director, Accenture Cloud

Over the past five years, there’s been an undeniable surge in cloud usage, with companies migrating a growing number of their workloads to the cloud. One study has found that 93 percent of companies have moved at least some of their processes to the cloud, and 56 percent have moved or expect to move all of them.1 We expect this momentum to only accelerate. But, there are still many companies that are reluctant to embrace the cloud at scale and, as a result, are in danger of being left behind.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 8 Remember in Alice in Wonderland, when the White Rabbit looked at his watch and proclaimed, “I’m late, I’m late,” followed by, “The hurrier I go, the behinder I get?” In an odd sort of way, these quotes describe the state of reluctant companies’ move to the cloud.

THE PACE OF CLOUD-RELATED CHANGE AND INNOVATION IS REMARKABLE AND ONLY ACCELERATING. According to one study, operator and vendor revenues for 2018 across seven key cloud services and infrastructure market segments exceeded $250 billion, representing 32 percent growth over the previous year.2 New cloud vendors continually arrive on the scene, and new cloud services and solutions are introduced by the thousands every year. Yet companies that continue to put off a large-scale move to the cloud now have a big problem. The longer they wait, the further they fall behind competitors that are embracing the cloud and its massive potential.

WHY ARE THEY HESITATING? Myriad factors are at play. There’s the technical debt these companies have been saddled with for years that’s difficult to write off. There’s the lack of people with strong cloud skills. And then there’s the age-old obstacle of reluctance to change and fear of risk: Companies are comfortable with what and whom they know.

Think about it. The very skills, processes, tools and vendors that an organization knows, and perhaps loves (or loves to hate), are the very same legacy elements preventing these companies from moving on to something new: the cloud.

These are all valid issues. But they shouldn’t be an excuse for not moving to the cloud. In fact, despite the pockets of legacy supporters within these companies, moving an IT estate to the cloud is no longer a choice. It’s a do-or-die imperative simply to remain competitive, let alone to keep pace with business needs.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 9 Then the question becomes, which cloud provider should a company choose? It’s not an easy decision.

THREE CHOICES TO REDUCE UNCERTAINTY AND RISK So, which one should a company pick? In reality, which of the Hyper 3 a company chooses for its cloud transformation isn’t the question—just as long as the company The cloud provider market is dominated by three vendors: Amazon, Microsoft and actually does it; taking the step is what matters most. Each company offers access to Google—or, as the market calls them, the Hyper 3. Each of these behemoths is unprecedented innovation and scale, and the stability and certainty that comes with investing about $1 billion a month in capital expenditure (CapEx) to build and scale them. That said, a few factors may swing the decision in favor of one over the others. its global footprint.3 Alibaba is a distant fourth, although one could argue that its low costs effectively narrow the gap. The others that follow are smaller or more niche For instance, if a company is concerned about vendor risk or pace of innovation, cloud providers that will never be big players simply because they aren’t making the Amazon—with a commanding 70 percent share and history of innovation—is the same level of investment the Hyper 3 are. clear choice. However, a company in an industry like retailing may perceive a vote for AWS as aiding and abetting a competitor, which might narrow the choice. Perhaps The extent of the Hyper 3’s investment enables the group to develop and roll out a company already has strong ties to Microsoft in the form of prior investments new capabilities and services at a pace no other provider—or, for that matter, no in products like Office 365 and SQL Server. Or, maybe a company is looking to corporate IT organization—could match (Amazon alone launched 1,700 new services create new, data-rich workloads at a lower cost but with attractive performance. In in the past year). This means the Hyper 3 are setting, and continually raising, the this case, Google’s technology leadership and simpler cost model might be most bar for what the cloud can do—and that’s a win for any company that wants as little attractive. Google’s technology extends to its robust network, which might sway a uncertainty and risk, and as much potential upside, as possible. company looking for near-zero latency in its applications.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 10 THE POINT IS, when it comes to stability, security and innovation, all three options hit the mark. Best practices suggest that an organization qualify at least two vendors to further moderate risk and comply with internal policies.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 11 FOCUS ON OUTCOMES AND EXPERIMENTATION To truly benefit from its choice—i.e., capitalize on all of the innovation coming from Freedom to experiment is the Hyper 3—a company needs to make sure its cloud strategy is aligned with a critical to finding innovative specific business outcome. The objective may be to cut technology costs by a third, ways to use the Hyper 3’s accelerate innovation or penetrate new markets—whatever the goal, it and its related metrics should be explicitly tied to the use of the cloud. services to add business value—and to staying ahead A company also needs to give users the freedom to experiment. After all, what’s of competitors. There’s the use of all of the new services and capabilities the Hyper 3 provide if a company doesn’t take the time to figure out how to use them and where they could little value in using these generate significant business benefits? (We discuss this in more detail in Force #8.) providers if you aren’t using Consuming all of this new functionality means moving away from the traditional the new services. Information Technology Infrastructure Library (ITIL) and six-month approval cycles— taking months to vet a new capability before allowing users access won’t cut it in the cloud. Instead, a company needs policies that clearly govern the use of new features and functions in a way that gives users the latitude to tinker while also enabling them to monitor what they’re doing.

For instance, a company could allow users to test new functions as they’re available but restrict how and when the functions move into production. Or, a company could narrow down the new services to only those relevant to that particular company, thereby avoiding spending manpower and resources on things that don’t matter to the business.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 12 Despite all of the promise the cloud offers, some companies still stubbornly stick with the status quo. That could be a costly mistake in more ways than one. If these companies insist on staying with legacy technology providers, they’ll only continue IT’S NOW to add to their technical debt—all while the Hyper 3 steadily drive the cost of TIME FOR compute, storage and network toward zero. At the end of the day, the choice comes down to disrupting the competition and an industry, or being disrupted by a clever upstart. It’s entirely a company’s call. Now is EVERYONE the time for all companies to choose, and we hope, pick the former. Every company needs to avoid continuing down the legacy rabbit hole by knowing where to go and helping the rest of the organization to get on board with whichever of the Hyper 3 it TO MOVE thinks best suits the them. Opportunity awaits, but only for those that move forward with speed and focus.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 13 FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY

Michael Rutherford, Cloud Product Management Sr. Manager, Accenture Cloud

By now, companies have a pretty good handle on what public cloud is. And on-premise data centers certainly need no introduction. But between those two ends of the computing spectrum lies a grey area where confusion reigns: the private cloud.

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 14 WHAT IS A PRIVATE CLOUD?

At a high level, a private cloud is defined as computing services offered over a network—either a private, internal one or the internet—that often incorporate some type of on-premises component, and that are dedicated to only select users (typically, a single client or company). But there’s a lot of room for ambiguity in this definition, and that’s where companies get hung up.

The fact is, it’s quite easy to misunderstand the term “private cloud.” Private cloud is not just virtualized hosting, nor is it a collection of static virtual machines. To qualify as a private cloud, the virtual hosting infrastructure needs to be dynamic. It provides a standard service catalog through which clients order and consume capacity on an as-needed basis, leverages a governance structure to control roles and responsibilities, manages a constrained capacity pool for dynamic workloads and bills consumers according to their usage.

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 15 WHEN DOES PRIVATE CLOUD MAKE SENSE? significant latency and connectivity requirements. In fact, private cloud is starting Despite the growing popularity of the public cloud, private clouds still have a place to play a bigger role in edge computing applications, where data processing and in many organizations. In fact, although public cloud spending is still growing more analysis are increasingly being pushed out to where data is collected. For instance: rapidly, the $100 billion spent in 2018 on cloud hardware and software was about A cruise ship can connect to the internet when in its home port to download evenly split between public and private clouds.4 software updates and passenger manifests from the public cloud, then run

The public cloud excels at running transient workloads (e.g., scheduled production disconnected for its seven-day cruise. With a private cloud aboard the ship, the runs and ad hoc development and testing), seasonal workloads (e.g., course crew can run analytics on this data and other data captured while at sea to get more registrations at schools or e-commerce surges for retailers during the holidays), and insights into guests’ preferences and tailor services accordingly during the journey. decoupled workloads leveraging as-a-service functions from cloud providers. The A mineral company’s mine in a remote area can’t run public cloud applications key is to understand where it’s most effective while acknowledging its limitations. reliably because of high latency, low bandwidth and poor connectivity. With a

For instance, if a company’s goals are agility, cost and speed, public is the way to private cloud on site, the company could apply analytics and artificial intelligence go. On the other hand, a private cloud is the better option when a high level of to the data being generated by connected devices in the mine to help supervisors customization is needed to meet an application owner’s requirements. It’s also often continually improve the performance of assets and anticipate and mitigate potential the right choice where there are compliance or data sovereignty concerns. The safety risks. public cloud’s “anytime, anywhere” access can conflict with individual countries’ laws and regulations governing how and where data is managed and used. So, for a large global company operating in dozens of countries, each having its own data protection rules, compliance may be easier with a private cloud for each location.

Private clouds also can make sense in cases of heightened data security concerns— for instance, among such companies as financial services, healthcare or government organizations, which handle extremely sensitive personal and other highly regulated data. However, such applications are becoming less prevalent, as the growing strength and sophistication of the public cloud’s security has made these types of organizations increasingly open to considering the public cloud.

Perhaps the biggest argument in favor of a private cloud is its ability to help meet

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 16 TWO THINGS TO KEEP IN MIND WHEN CONSIDERING A The fact is, the use cases for private and public clouds are very different, so PRIVATE CLOUD companies should consider their long-term hosting objectives before pursuing a As the hosting landscape continues to evolve, a hybrid approach to cloud will still two-stage migration strategy. Private clouds are a viable hosting option if they’re make sense—meaning a private cloud likely will be part of most companies’ overall tailored to a specific application suite or owner and address a business requirement computing landscape. That’s why, when considering a private cloud, companies such as data sovereignty or remote hosting. In this case, a company should focus should keep two key points in mind. on optimizing that platform to deliver the application as efficiently as possible to justify the investment. If a company is really thinking about a private cloud that runs First, it’s critical for all involved to correctly identify if the workloads in question truly everything in its data center, it should target public cloud right out of the gate to need private cloud functionality or if they are better suited for the public cloud take advantage of the cost, scale and performance benefits. or even virtualized hosting. Implementing and running private clouds generates overhead costs that will just become sunk expenditures if the company doesn’t A private cloud undoubtedly end up using the private cloud functionality. While companies continue to toss all can deliver significant manner of on-premise computing under the private cloud moniker, companies need to understand that private clouds aren’t free to build, and they require an ownership business benefits. structure to create and maintain standards and services. Companies also need to ensure they will actually require the on-premise agility of a private cloud. If they But it can only do so if a don’t, they probably have a virtualized hosting platform. If they do want agility but company understands up don’t want to manage the services and standards, then a public cloud, a third-party managed private cloud or a community cloud may be a better match. front what private cloud can and can’t do and the role it’s Second, a company must be aware that a private cloud isn’t a quicker, easier and best equipped to play as part lower-cost route to the public cloud. Moving to a private cloud requires application modernization to use the cloud assets effectively. If a company then takes the of the company’s larger cloud next step to the public cloud, it will need to complete a second optimization of the and computing strategy. application to operate in the public cloud economic paradigm, which is different from that of a private cloud.

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 17 FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY

By Tristan Morel L’Horset, Managing Director, North America Intelligent Cloud & Infrastructure Sales Lead

A big part of the significant increase in cloud usage in the past five years has been the advent of platform-as-a-service (PaaS) solutions and other components, which have encouraged companies to substantially ramp up their cloud consumption. PaaS, in particular, has been a real driving force, as it allows companies to develop, run and manage applications without having to build and maintain the infrastructure to do so.

In fact, because of these innovations, most companies are now rapidly approaching a true tipping point in their cloud presence that’s forcing them to look more closely at their requirements around roles, policy, security, data and network, as well as more broadly at how they use the cloud and manage the associated costs.

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 18 THE NEED TO “RUN DIFFERENTLY” The reality is, with so much of their business now in the cloud, many companies To support—and are beginning to recognize that they need to run their IT operations differently than when they were primarily an on-premises, legacy data center business. The truly capitalize cloud is far too dynamic in nature, and the pace of innovations being introduced much too quick, for a traditional approach to IT to effectively handle. Not on—their growing running differently can have a big impact on both the top and bottom lines. cloud estate,

TOP- AND BOTTOM-LINE CHALLENGES companies need a For example, buying capacity and new services from cloud providers is an ongoing process, which is much different from the periodic purchase of assets new IT operating that characterize the on-premises legacy world. Instead of a one-time, closely controlled activity done every few years, cloud buying happens continually— model, with and easily. If they’re not careful, companies can see spending spiral out of control. With the amount that many companies spend on the cloud increasing new skills and steadily—more than $1.3 trillion in IT spending will be affected in some way by the cloud by 2022, according to Gartner4—failure to properly manage, optimize roles, as well as and consume cloud services will have a negative effect on the bottom line—to the tune of millions of dollars for large organizations. new processes, The top line also takes a significant hit if a company doesn’t run differently. A company that enable the that treats the cloud as just another data center—building and deploying applications in the same methodical and time-consuming way—will never be able to capitalize on the company to run Hyper 3’s innovations to transform its business and give its customers what they want. And it’ll end up falling further and further behind competitors that can do it right. In fact, differently. the economic impact of opportunities lost due to failure to harness the cloud’s innovation far exceeds the bottom-line impact driven by inferior cost management.

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 19 A BIG NEED FOR NEW SKILLS PROCESSES MUST CHANGE Skills are arguably where the biggest changes are needed and are the stiffest Changes in ITIL processes are also needed. While an official “bible” of cloud challenge to overcome. For example, in the old legacy days, companies had processes has yet to be written, there’s no doubt the importance of each ITIL specialists in storage, network, backup and operating systems. As the cloud process has fundamentally shifted—with the biggest impacts seen in incident emerged, organizations made a few cloud-savvy engineers responsible for management, problem management, and change management. managing cloud services. This arrangement worked fine while companies’ cloud presence was limited. Incident management has become dramatically less critical with the cloud. If there’s an incident with a cloud component, we no longer have to fix it. We just change But now, with so much of their business in the cloud and the number of platform over to a new virtual machine (VM), workflow or container because components are services exploding, a small DevOps team supporting the cloud is no longer so commoditized and easy to ramp up. In other words, in the world of automation, sufficient. Companies need a different, and larger, set of specialists in each of the incident management becomes almost a non-event. But the importance of problem three cloud PaaS components: container platforms, application platforms, and management has grown. Even though it’s easy to move on from an issue, a company function platforms. And they need to organize these new specialists in ways that fuel still wants to understand why the problem occurred to prevent it from happening collaboration, innovation, speed, and agility—for example, in a center of excellence. again. That’s crucial to making the company’s cloud presence stable. New skills will mean nothing if they’re simply tossed in with a legacy IT organization that doesn’t truly understand how to take advantage of the cloud. Change management arguably isn’t any more or less important, but it’s assumed a different dimension. Because developers want to be more agile and able to embed a new feature in real time, the environment must be architected correctly from the start so developers’ actions don’t have unintended (and unwelcome) consequences. Thus, change management has morphed from, “I must control the change and its impact” to “I must architect my application and my ecosystem to enable developers to easily introduce new capabilities,” which is key to capitalizing on the Hyper 3’s innovations.

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 20 A cloud-first business—which many companies are on the verge of becoming— bears little resemblance to one driven by on-premises data centers, so companies shouldn’t run their cloud estate the same way they’ve always BE A handled their legacy architecture. As companies reach the tipping point in the amount of their business that’s in the cloud, they need to think past the short- CLOUD- term, immediate cost savings the cloud can provide to consider what it really means to run in the cloud. Crucially, that includes understanding what they need to do differently, both now and over the long term, to fully benefit from FIRST and keep pace with it. BUSINESS

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 21 FORCE #4: MULTI IS THE NEW CLOUD REALITY

By Andrew Wilson, CIO, Accenture

HOW MANY CLOUD PROVIDERS IS THE RIGHT NUMBER FOR YOUR ENTERPRISE? As companies move more of their business to the cloud, many ask this question and conclude it’s more than one. Indeed, according to one study, seven in 10 companies expect to be operating a multi-cloud environment by 2019.5

This is not a fixed answer for all, as processing requirements vary hugely across industries and enterprises. Factors like cost, performance, degree of global operations, concentration risk, hybrid and scale can all influence this decision. The advantages of a second provider may be the reality for your company.

At Accenture, we chose to work with a small number of cloud providers for our own workloads to help prove out multi-cloud operations, to balance risk across the ecosystem and to help compare and contrast cloud service providers to inform our work with our clients.

FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 22 HOW DOES A COMPANY CAPITALIZE ON THE BENEFITS OF MULTI-CLOUD WHILE MINIMIZING THE COMPLEXITY The decision to IT INTRODUCES? In Accenture’s experience—both with the 94%+ of our own business in the cloud select beyond or and with our clients—the key is to ensure that the company’s ability to manage cloud usage, control costs, set policy and ensure compliance is universal, not expand from a provider-specific. single provider Managing usage and cost is extremely important, especially in a multi-cloud environment. Providers’ flexible-charge models make it difficult to predict brings complexity. what costs a company will incur and open up vast potential to blow past established budgets. Furthermore, with millions of line items on a single invoice, determining who bought what, and why, is far from easy. Security

It’s hard enough to manage multiple accounts and environments in one cloud and compliance, of course, are also critical and become even more important provider—just look at the lines of billing you get every month. Doing it across (and much more difficult) when more than one cloud vendor is involved. And two or three cloud providers adds to the challenge. having the right policy in place that covers multiple providers is vital to tracking the resources the company has deployed to ensure they’re compliant and Consider, for example, a large global company with a significant portion of its configured correctly. business in the cloud with a single provider. In just one part of the enterprise, it could have a dozen or more accounts covering different stages of the development life cycle. And for each of those accounts, the company must ensure its environments aren’t vulnerable to unauthorized access or use, manage compliance and keep a handle on costs. That can be daunting. Add a second or third provider to the mix, and the challenge increases exponentially.

FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 23 GET THE RIGHT TOOLS HOW DOES A COMPANY ACCOMPLISH ITS GOALS ACROSS PROVIDERS, WHEN EACH PROVIDER’S TOOLS ONLY APPLY TO ITS OWN ENVIRONMENT (AND GENERALLY AREN’T AS ROBUST AS THEY NEED TO BE)? THIS IS PRECISELY THE CHALLENGE A CLOUD MANAGEMENT PLATFORM IS DESIGNED TO ADDRESS: 1 2 3

A cloud management platform enables One of the most desired features of a cloud Another cloud management platform capability that’s organizations to manage their entire cloud estates management platform is cross-cloud tagging. especially important in a multi-cloud environment from a consolidated viewpoint (sometimes this is Tagging capabilities enable a company to tag assets is its ability to discover resources. Cloud makes it accomplished with a centralized control plane or a throughout its entire environment, regardless of easy for essentially anyone with a credit card to go multifaceted approach to managing cloud services). which or how many cloud providers it uses. Tagging, online and spin up a new resource. That’s a blessing Integrating with technology from the leading cloud when paired with analytics, gives a company visibility and a potential curse. Without being able to discover providers, it provides total visibility into all cloud into who’s using which cloud assets and shows how resources, it’s easy for the cloud equivalent of resources to enable companies to maintain security, those assets are being used and why. Such visibility “shadow IT” to proliferate. In our case, by provisioning control cost and ensure governance across multiple is critical for effectively managing total cloud spend, through the Accenture Cloud Platform from the accounts and providers. as well as deploying standard policies and controls start and tagging, we mitigate the proliferation of across these assets. shadow IT and can understand our assets from a scale perspective at all times. A cloud management platform enables a company to scan its entire cloud estate to find out what’s being added and assume control over it—which helps control costs, as well as ensure compliance and security.

FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 24 WHEN IT COMES TO TOOLS, IT PRACTITIONERS HAVE SEVERAL OPTIONS. They can address it themselves or can purchase a tool, toolset or service like the Accenture Cloud Platform. Building one’s own tools will require ongoing maintenance, support, tracking and innovating, as well as a dedicated team. Buying vendor tools will most likely involve effort to piece them together. A service like Accenture Cloud Platform leapfrogs these options by providing solutions already pieced together for the enterprise. It brings together lessons learned and different approaches into one place, and can elevate an organization’s capabilities and enhance its ability to succeed in the cloud.

FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 25 GET THE RIGHT PEOPLE PEOPLE ARE ALSO CRITICAL TO OPERATING A MULTI-CLOUD ENVIRONMENT EFFECTIVELY.

As a company expands to multiple providers, some skills will apply across platforms. The move to multi-cloud will likely involve change management and retooling of But as it starts to consume the specific cloud-native capabilities of each provider, the skills. A company, for example, may need to translate its current provider’s approach company will have to invest in discrete skills in each of the platforms and consider to security to create an equivalent set of compliance and security processes across where to make those investments. multiple providers. If this is the case, people will have to learn an entirely new language and set of products and be comfortable doing so. And that will require Most companies won’t have the luxury of having discrete teams dedicated to each a concerted training and development effort and, potentially, hiring new people provider. Nor is it feasible: Most systems and workloads won’t operate in isolation but, with the requisite skills. At Accenture, we recognized we would need to retool our rather, will be at least partially integrated across providers in some way. Companies people’s skills, and supported an organic, hands-on transformation of skills along need to consider where to make skill investments to become fluent across providers with training programs. For many companies, moving to cloud will be the impetus to and where to be provider-specific—whether it’s security experts, cost analysts, business evolving IT skills and moving the organization into the new. people, or the subject matter expert creating and operating the infrastructure. Ultimately, some skills will be cross-platform and some platform-specific. Another option is to fill the talent gap with the help of a cloud managed services provider (MSP), which can bring expertise in all the Hyper 3 providers. An MSP can integrate and orchestrate the use of various cloud services, as well as help companies manage their consumption of cloud services across multiple clouds— often through the use of its own cloud management platforms. It also can sort through and assess the thousands of new services the Hyper 3 roll out every year to find those that provide the most benefit.

FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 26 BE AGILE AND COMFORTABLE WITH CHANGE

WITH THE INNOVATIONS FROM THE HYPER 3 Accenture was fortunate to have had the foresight to establish a governance structure CONTINUALLY ROLLING OUT, MOST COMPANIES WILL with a dedicated group that addresses changes and injects them into our organization EVENTUALLY FIND IT IMPOSSIBLE TO OPERATE IN A in an agile way without disruption. No doubt change is constant, and companies SINGLE PROVIDER ENVIRONMENT. WITH THE RIGHT should remain open to change down the road. Business requirements may exhaust TOOLS AND PEOPLE—AND THE RIGHT GOVERNANCE the capabilities of a provider, or other providers may roll out new services that are STRUCTURE—COMPANIES CAN MITIGATE THESE better aligned with the business. A decision made today may not pan out in six CHALLENGES AND REAP THE BENEFITS OF A MULTI- months. The key is to be flexible and ready to move when the time is right. CLOUD APPROACH.

FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 27 FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE

By Sean Peterson, Cloud Management CoE Lead, Accenture Cloud

As companies move more and more workloads to the cloud, they’re facing a reality check: in most cases, companies’ embrace of the cloud has now outpaced their ability to manage their increasingly large cloud estates. They don’t have the industrialized governance, security and other capabilities they need to handle the scale of their cloud presence, especially if they’re using more than one cloud provider (and most are). This means they’re likely not only failing to maximize what they can get from the cloud but also setting themselves up for potential cost overruns, inefficiencies and even security lapses that could make their business vulnerable to unwelcome surprises.

Accenture understands this situation very well. By helping hundreds of companies migrate to and use the cloud, and by running so much of our business in the cloud, we have gained a unique perspective on what it takes to effectively manage a large-scale cloud estate.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 28 WE LEARNED FROM OUR EXPERIENCE THAT FIVE THINGS ARE PARTICULARLY IMPORTANT.

1 2 GOVERNANCE AND MANAGEMENT CONTROLS COST ANALYTICS Effective cloud management and governance are basic requirements for any One of the biggest lessons we’ve learned is that if you don’t have visibility into how company. But for large enterprises with equally large cloud estates, there’s nothing you’re using the cloud, spending can get out of hand quickly. This is definitely a basic about it. The sheer scale and complexity of such companies’ cloud estates big issue we hear about from the companies we speak with today. They have so can make it extremely difficult to define who’s allowed to do what in the cloud and many accounts and subscriptions across the Hyper 3 that it’s difficult for them ensure that users comply. As their cloud presence grows, companies need to put in to understand if what they’re spending is the right amount. They don’t fully know place enterprise-level, cross-cloud policies that enable the different types of users— who’s spending what, so it’s not uncommon for them to find out they’re running from the business to the IT organization—to have the freedom and agility to take significantly over budget—but not have the oversight to know why. That’s why it’s advantage of the cloud’s innovations while maintaining necessary controls. critical for companies to have analytics in place that can give them the kind of intelligence they need to manage use—and, consequently, costs—more effectively.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 29 3 5 BILLING A ROBUST CLOUD MANAGEMENT PLATFORM As companies with large cloud estates have certainly experienced, cloud billing is very A major challenge a company encounters as its cloud estate grows is simply keeping complicated. Tracking and attributing charges, making sure they’re accurate, resolving up with and integrating new technologies as they emerge. Accenture learned discrepancies and figuring out how to apply discounts can be difficult even with a early on that having a single platform that could serve as the glue among not only relatively small cloud estate. With really large estates spanning multiple providers and the three major cloud providers but also other related tools would be critical to involving many different areas of the business, it can become overwhelming: A single operating in the cloud effectively. bill from just one provider can have a million line items, each of which needs to be reconciled before the bill can be paid. Building the knowledge and acumen to handle By integrating with technology from the leading cloud providers, a cloud billing at this scale isn’t easy. It took Accenture two years to do it, and we continue to management platform enables a company to manage its entire cloud estate from hire more people with the right skill sets as our use of the cloud grows. a centralized control plane. It provides total visibility into all cloud resources, so a company can maintain security, control cost and ensure governance across multiple accounts and providers. While theoretically it’s possible for a company to build its own cloud management platform, doing so is an extremely long, complex and costly 4 process. Platforms available as a service are good alternatives to building one from SECURITY scratch because they can be up and running quickly, with little effort and no upfront investment. No one has to be reminded that security is a central part of cloud management. Seemingly every week we see in the media what can happen when security falls short. But it’s not enough to have strong security. In our experience, security also has to be active, not passive. In other words, as we discuss in more detail in Force #7, it needs to be baked into a company’s cloud infrastructure from the start so the organization doesn’t leave itself vulnerable to even simple mistakes—such as configuring a deployment incorrectly—that can result in unwanted exposure. A key part of active security is being able to scan and monitor the entire cloud estate—every few minutes, hourly or daily—to identify and address anomalies to maintain compliance.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 30 A company that takes care of these five concerns can go a long way toward enhancing its ability to manage and optimize the use of its cloud estate. But beyond these, one other, overarching learning we’ve identified can, perhaps, be ENLISTING the most impactful of all: enlisting the help of a qualified external provider that can do a lot of these things for you. The fact is, managing the cloud involves a lot of work that, in the end, does nothing to differentiate a company in the THE HELP marketplace. So why should CIOs devote precious skills and resources to dealing with these activities?

OF A Frankly, they shouldn’t. There’s no reason to, say, deploy talented engineers to cloud management when those people could, instead, be developing new software that dramatically improves how the company interacts with customers. QUALIFIED External partners can do the work associated with cloud management, often more efficiently and less expensively. This can allow CIOs to focus their talent, tooling and technology on using the cloud’s innovations to transform how the EXTERNAL company does business.

With cloud adoption—and the accompanying complexity—only growing, CIOs PROVIDER have to think carefully about their cloud management requirements and how best to address them. With the right talent, tools, services, platform and partner, a company can continue to expand its use of the cloud to power the business while minimizing complexity and risk—much as Accenture has done in its own operations.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 31 FORCE #6: NATIVE VS. NICHE

By Catherine Gulsvig Wood, Cloud Product Management Sr. Manager, Accenture Cloud

Native cloud providers—primarily the Hyper 3—continue their explosive growth, collectively launching thousands of new features and services every year. Meanwhile, niche providers of cloud management solutions are constantly on the lookout for gaps to fill in native providers’ services to make it easier for companies to control and optimize their cloud estates. So, the question for companies becomes: What role should each type of provider play in their cloud strategy?

FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 32 INNOVATION BRINGS NEW CHALLENGES AND DECISIONS The fact is, as cloud use becomes even more pervasive, companies need more powerful tools to help them manage key elements of their cloud estate, such as governance, cost management, capacity planning, security and compliance, configuration management and others. And therein lies the challenge: Which tools should they use? Should they stick with those the native providers offer or go with ones offered by niche providers that specialize in specific areas? Or, should they consider a third option: an abstraction layer that allows them to use new tools and services without getting locked into a specific vendor? It’s a critical decision that must be made in light of what these providers offer now. And it’s not easy differentiating between true capabilities available today versus those on a roadmap. Take the native providers. No one denies their innovation engines or the sheer amount of money they plow into their businesses. And when they spot a problem area, they address it quickly.

Security is a great example. In the early days of the public cloud, companies were rightly concerned about the security of their data, and their feeling that their own servers were much more secure was dampening cloud acceptance. Providers recognized this was a huge obstacle to their growth and attacked the security issue head on.

FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 33 INTEROPERABILITY IS KEY FOR MULTI-CLOUD ESTATES And they can be very effective because of their laser focus. These providers are looking On the other hand, there are two big drawbacks to their innovation. One, they deeply at the Hyper 3’s services and continually identifying gaps that need to be filled. typically aren’t as robust or comprehensive as they need to be. And two, all of the They’re spotting potential problems and are upgrading their offerings accordingly. tools are exclusive to each cloud provider. That may be fine for a company that’s But niche vendors, too, have downsides. Their solutions aren’t offered as an dedicated to a single provider, but the arrangement is less than ideal for companies integrated service, so companies likely will have to integrate the solutions that use two or even all three of the Hyper 3—which is increasingly the case. Each of themselves and possibly integrate across all of the native providers if they’re running the Hyper 3 is bent on dominating the public cloud market, not interoperability. That multiple clouds. And there’s always the chance that the Hyper 3 will come out with makes it difficult for a company to create a seamless, multi-cloud environment. their own version of these solutions, rendering the third-party ones obsolete. Niche vendors offer very specific solutions that cover one or just a handful of the management issues mentioned.

FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 34 CONSIDER A THIRD OPTION

FORTUNATELY, THERE’S A THIRD OPTION: Cloud management platforms that operate as an abstraction layer and have all of the benefits of a robust, comprehensive solution without the drawback of being tied to a specific cloud provider. Such platforms, which use configuration and rules languages that are Hyper 3 agnostic, enable a company to manage its entire cloud estate, regardless of how many cloud providers it’s using.

FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 35 TAKE BILLING, FOR EXAMPLE. Determining how much a company pays for its cloud infrastructure is difficult, even public cloud. That trend is likely to accelerate, as the Hyper 3 continue to roll out with just one provider. It’s exponentially more difficult if the company is using all new features and services that are irresistible to companies’ developers. Rather three, each of which has its own ways of describing its resources and charging for than try to rein in developers, CIOs need to give them the freedom to explore and services. An abstraction-layer billing engine, based on an open-source language, experiment—while maintaining control. Native cloud management consoles can can apply the company’s specific billing rules across all three providers, giving a help in some cases, but they have limitations. The same is true of niche offerings, consistent, definitive view of the cloud estate’s total costs. which can seem like easy fixes until the costs of customization and their inability to work in a true multi-cloud environment become clear. The same thing applies to security. Because it’s an abstraction layer, a cloud management platform can establish specific rules for how a company’s data privacy The reality is that, for the foreseeable policy gets interpreted and applied when the mechanisms and even the terms future, companies shouldn’t expect referring to those policies are different across providers. This enables a company to interoperability to be high on the consistently apply its security policy in all environments without having to wait for a Hyper 3’s agenda. vendor’s next release that promises support for an additional Hyper 3 provider. Until it is, an abstraction-layer Another big advantage to cloud management platforms is that they run as a service—they already include the “plumbing” to accommodate operations across approach to cloud management multiple cloud environments. Thus, they require no time-consuming, expensive makes sense for companies looking integration or customization to set up and use. to optimize their cloud estates while continually taking advantage of the The emergence of abstraction-layer cloud management platforms, and “cloud- best the Hyper 3 have to offer. agnostic” solutions such as Terraform, has come at an opportune time for companies that are increasingly having to manage a presence in more than one

FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 36 FORCE #7: SECURE FROM START

By Jonathan Roz, Global Delivery & Operations Lead, Accenture Cloud

Security is a major concern for the keepers of a company’s data. According to Accenture research, 79 percent of companies admit their organization is

adopting new and emerging technologies faster than they can address related

cybersecurity issues, and 80 percent said protecting their companies from weaknesses in third parties is increasingly difficult.6 And that concern remains as companies move an increasing amount of their business to the cloud.

FORCE #7: SECURE FROM START COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 37 The thinking that they don’t need to worry as much about security because cloud providers have it covered. This is misguided and potentially BUT WE SEE AN dangerous. Yes, cloud providers are laser- focused on security and have gone to great INTERESTING lengths to secure their cloud. But tenants of the cloud are still responsible for securing the environment they create in the cloud. The MINDSET distinction is critical.

Think about it this way: With a traditional on- AMONG premises data center, a company must not only secure the workings of the servers themselves but also the physical access to those servers— MANY CLOUD- for example, performing background checks on data center workers, stationing security guards at the data center doors and putting mantraps FOCUSED at the entrances. In a cloud environment, the cloud providers are responsible for security of COMPANIES: the cloud, but companies are responsible for security in the cloud.

FORCE #7: SECURE FROM START COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 38 PIVOTING YOUR FOCUS TO BE SECURE FROM START The company also has to develop a new foundational security reference architecture. The fact is, as companies embrace multiple cloud environments and cloud providers This is critical because securing cloud environments is substantially different from create and release new services at an increasingly rapid pace, security is just as securing on-premises ones. The potential issues a company faces won’t be the same. important as it’s always been—except the focus has changed. Now, in addition to Many of the tools it currently uses won’t work in the cloud. The existing processes for securing their applications (which most companies have always done), companies addressing security issues are far too long for the dynamic cloud environment. And need to make sure the infrastructure of their cloud environment can take advantage even the people charged with handling security in the cloud will require different of the thousands of new services cloud providers roll out each year. And the best skills (which means, in most cases, an entirely separate organization dedicated to the way to do that is to make that infrastructure “secure from start.” cloud is needed). Likewise, they’ll find it’s time to move to a DevSecOps model, where infrastructure gets treated like application code and is scanned prior to being deployed How does a company do that? First, it needs to take a look at its security policies to check for misconfigurations or non-compliance. and procedures, because they most likely don’t even address cloud infrastructure. The company also needs to make sure the cloud environment is configured in a way that’s compliant with the security framework relevant to industry and country regulations—and that this configuration is automated, not manual (which makes regulators very happy). From there, a company can drill down into identifying the controls that it will need to monitor those policies and procedures to make sure the enterprise is compliant on an ongoing basis.

FORCE #7: SECURE FROM START COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 39 THIS NEW SECURITY REFERENCE ARCHITECTURE HAS THREE KEY PILLARS THAT LAY OUT, AT A MINIMUM, THE THINGS A COMPANY NEEDS TO SECURELY PLACE WORKLOADS IN THE CLOUD:

IDENTITY ACCESS MANAGEMENT: LOGGING: ENCRYPTION:

Spell out the roles that are authorized Capture and record every API Activate each of the cloud provider’s to operate in the environment and what action and network call made in the key management services to encrypt they’re allowed to do. environment. all data and transactions.

FORCE #7: SECURE FROM START COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 40 STILL NOT DONE—SCANNING AND MONITORING THE SECURITY VERSUS SECURE ENVIRONMENT CLOUD ENVIRONMENT We hear all of the time that the cloud is inherently more secure than a typical By defining new policies and procedures, configuring to the appropriate framework, company’s own on-premises data centers. That’s true if we’re talking about providers’ identifying the relevant controls and creating a cloud-specific reference architecture, protection against access to their servers. But it doesn’t mean the environment a a company will be able to securely, and more quickly, take advantage of the cloud company creates for its presence is automatically just as secure. As companies providers’ ongoing stream of new services to build robust new capabilities and move more of their workloads to the cloud, and to many different clouds across improve business decisions. providers, they need to go beyond the native solutions each cloud provider offers and take a single, common approach that’s applicable to, effective in and But the task is still not done. The company also needs to build or acquire the independent of all environments. That’s the key to being secure from the start in a ability to scan and monitor all of its cloud environments to identify anomalies and multi-cloud environment. subsequently remediate them to maintain compliance. The frequency of scans will depend on the controls involved and the associated risk. For some, such as public S3 buckets, every 10 minutes is required. For others, such as password policy, a daily scan is generally appropriate. Typically, scans are mainly concerned with ferreting out misconfigurations, which are by far the most common issues detected (and, by and large, are also unintentional). In some cases, a company will enable preventive controls, such as changing security groups.

FORCE #7: SECURE FROM START COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 41 FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT)

By Rodrigo Flores, Platform Innovation Lead, Accenture Cloud

We continually hear that companies are hungry for innovation, for new ideas and for solutions that can propel their businesses past their competitors. That’s certainly true with the cloud. Companies are spoiled for choice when it comes to new services and features they can use to help them transform their businesses.

FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT) COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 42 THAT’S GOOD NEWS, RIGHT?

Well…yes and no. Lots of choice is good for companies. But the speed with which the Hyper 3 roll out new offerings can create FOMO—Fear of Missing Out—among consumers of cloud services. It’s like the super-popular couple with hundreds of friends. They have so many parties, dinners, and other social engagements to choose from, but they are concerned that by choosing to attend just some of them, they might be missing other truly great events where something spectacular might happen.

With the cloud, companies worry that if they don’t keep up with these innovations, they’ll be outmaneuvered by competitors that do. And that concern is warranted. According to an Accenture study, 75 percent of cloud-first organizations and 50 percent of mass migrators said that within six months their cloud projects have increased speed to market to boost their competitive positions, compared to just 22 percent of steady migrators and 39 percent of cautious migrators.7 So, because the cloud makes it easy to do so, various areas of the company move quickly to embrace new services to solve their own business problems and help them meet their business objectives.

FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT) COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 43 WATCH OUT FOR COST AND SECURITY PROBLEMS STRIKE THE RIGHT BALANCE BETWEEN CONTROL In theory, this is a good thing. After all, that’s why the cloud exists. But in practice, AND INNOVATION there’s typically a downside. When capitalizing on a cloud innovation, a function or Clearly, a company can’t afford to allow cloud costs to grow unchecked or make business unit often does so without the knowledge or involvement of the company’s itself vulnerable to security compromises. But it also can’t simply clamp down on the IT organization. The result is “business IT” popping up across the enterprise, driven business’s ability to use new cloud services to stay competitive and meet its growth by the need to become more agile and responsive to customers and markets. And objectives. Doing so will only fan the FOMO fire (just as would limiting the number that, in turn, raises major concerns regarding cost and security. of parties the couple mentioned earlier could attend). How, then, can a company maintain the appropriate level of control over the use of the cloud without stifling The cloud makes it easy to dynamically and quickly provision services. So, innovation? There’s no single “right” answer. a function’s or a business unit’s developer can create the infrastructure programmatically and provision it within minutes—and then it’s all up and running. Some basic things can help any organization. For instance, a cloud center of There’s no procurement process guiding the purchase of cloud services like the excellence (CoE) serving the entire enterprise (not siloed in one part of the business) one the IT organization has traditionally followed when buying servers for the data can act as a clearinghouse for new services, vetting them as they’re released to center. But, the quick and painless set-up in the cloud, as well as a lack of oversight determine which have the greatest potential to help the business. Staffed with by procurement, makes it equally easy to ring up huge bills without realizing it. And, specialists in each of the Hyper 3 providers, the CoE can take the onus off of the by the way, making sense of those bills, each of which can contain millions of line business to continually stay on top of what’s coming out. A cloud management items, is a huge effort in itself. platform can help companies govern and securely manage multiple vendors and their services—including keeping track of costs and optimizing usage across Similarly, security can become a big issue when cloud-based business IT proliferates. all clouds—and seamlessly integrate a variety of platforms. Also helpful is API When a developer’s setting up the infrastructure directly, is he or she setting up the integration with native providers, which makes it easier to discover and integrate right firewall rules? Has encryption been turned on? Are the networks configured pre-existing estates and use constantly emerging new features. the right way? How does the developer check? Everything’s dynamic, so even if the developer has everything set up correctly on Monday night, on Tuesday morning some automatic programs could be running in the background somewhere and change the settings, compromising security. How does the developer get alerted if that happens? Once again, lack of structured oversight—in this case, in the form of established security processes—can result in unintended consequences.

FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT) COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 44 IT’S A CULTURE AND STRATEGY CHALLENGE But to truly strike the right balance between control and innovation—i.e., avoiding unbridled spending and security issues as well as FOMO—companies need to think about their cloud transformations as strategic and cultural issues. And the balance will be different for each company. What would work for a mining company wouldn’t work for a global retail bank, for a consumer goods manufacturer or for a retailer.

For instance, an agile, creative company operating in a fast-moving industry with customers whose demands constantly change is more likely to tip the scale in favor of innovation—allowing its people to experiment more freely but holding them responsible for the results (both good and bad). On the other hand, a large company that deals with highly sensitive or regulated data that must consistently meet explicit performance milestones for its customers (or face painful penalties) is apt to be guided by myriad of policies that unambiguously call out what people can do, the parameters within which they can act and what’s expected of them.

The goal for both companies is to capitalize as much as possible on what the cloud offers but to do so in a way that fits their strategy and is compatible with their culture. Strategy and culture will define how each company should use the cloud— to become nimbler, substantially reduce operating costs, gain economies of scale, improve the customer experience, disrupt the competition or accomplish some other core business objectives.

FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT) COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 45 PUT FOMO IN ITS PLACE IS IT POSSIBLE TO HAVE TOO MUCH INNOVATION? Conceptually, no—having a steady stream of compelling new ideas to take advantage of is a boon for companies. But when it comes to the cloud, it could be a huge challenge if a company isn’t prepared for it. With Amazon alone offering more than 480,000 SKUs—with different service levels, limits and pricing—a company needs to put in place the right policies and controls so it can take advantage of the massive shift in the cost and quality of IT services the Hyper 3 make possible— without being blindsided by cost and security issues. Companies that find the sweet spot will ensure they have the proper guardrails in place so the business can fully embrace the cloud and do so FOMO-free.

FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT) COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 46 FORCE #9: GAME OVER. LET THE GAMES BEGIN

By Michael Liebow, Global Managing Director, Accenture Cloud

Most organizations see the cloud as the enabling game changer it is. But as organizations move in earnest to capitalize on the cloud, whether through the “lift and shift” of applications or new native development, companies are only beginning to understand the challenges that come with it: a new managing style, new operating models, new skills, new security technology, new governance and policies and new approaches to cost management.

The question quickly shifts to “how?” Myriad providers, native and niche, say their products can manage these issues—one, some or all of them—yet the pool of these providers and what they offer remains very much in flux. Companies need to think hard about their approach—these decisions matter and can have long-term consequence.

FORCE #9: GAME OVER. LET THE GAMES BEGIN COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 47 The game is nearly over for hyper-capable providers. Once an organization moves Companies that bet on these and other vendors—integrating their tools with other beyond determining which of the Hyper 3 providers to use as the enabling platform, solutions to help manage all or part of their multi-cloud presence—may have to a new game begins. Since cloud remains a nascent market, the buying and selling question the long-term viability of their investment or be left scrambling for suitable of niche players is in full swing. Those niche providers are many, but they’re also replacements. In making a change, they’ll face both economic and technology tempting acquisition targets. When acquisitions happen, the game changes. A risks. Integration of tools comes with big upfront costs, and significant downstream solution that once seemed multi-cloud aligned may become isolated or vendor- costs to customize. There’s also the possibility a tool won’t do everything a company specific as a result of the acquisition. Or a vendor can go out of business as needs it to do, making the organization vulnerable to governance, security and providers offer a similar, but single provider capability for free or at a nominal cost. In overall performance issues. And, each time a tool needs to be replaced, the business all cases, lock-in to any one approach can be a game-ending move. is impacted by a costly disruption. A lot of time and effort must be spent to identify and vet prospective new vendors, negotiate new commercials and integrate a new Consider the following examples of how much can change in a short time: tool. It all adds up to a situation that’s difficult and expensive to manage over the • Racemi – bought by DXC Technology8 long term. We speak from experience.

• Apprenda – out of business9

• Evident.IO – bought by Palo Alto10

• CloudHealth – bought by Vmware11

• Cloudyn – bought by Microsoft12

• Orbitera – bought by Google13

• Cloudamize – bought by private equity14

• Rightscale – bought by Flexera15

• HP tools – bought by MicroFocus16

• Cloudcruiser – bought by Hewlett Packard Enterprise17

18 • RedHat – bought by IBM

FORCE #9: GAME OVER. LET THE GAMES BEGIN COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 48 TO BUILD OR BUY? A PLATFORM CAN BE YOUR BEST FRIEND The fact is, companies that choose to build their own cloud management Many companies are finding a managed service is a better alternative to wrangling capabilities face a serious dilemma. A company that bets big on a capability, multiple vendors and solutions. With a managed service, companies benefit from assuming it will be predictable or stable for some period of time, is likely wrong. The the platform provider’s experience and work to identify, vet and integrate all of the focus for most organizations should be on the level of innovation and new services best tools into a single solution covering the full spectrum of cloud management. coming from the cloud providers. Companies increasingly use more than one cloud The platform provider is responsible for ensuring the tools work together as a provider and need to effectively capitalize on those steady streams of innovations cohesive whole and is on the hook to replace tools at its own cost when necessary. these providers roll out to avoid falling behind the competition. The need for robust The platform provider also is typically able to negotiate better rates from the specific cloud management capabilities becomes not just readily apparent, but critical. tool vendors because it’s delivering the capabilities across a large, aggregated Where do you focus your resources? customer base. So, the economics are more attractive than they would be for a single company. And, because the capabilities are delivered as a service, a company The answer in our experience is–don’t do it. Resist the temptation to build your own. can gain access to comprehensive cloud management capabilities in a matter of Integrating dozens of tools into a seamless platform or control plane is expensive, weeks, not years, without upfront purchase or long-term integration costs. time consuming and, ultimately, really difficult.

With a pre-integrated, on demand, pay-as-you-go platform, a company can improve Obviously with enough time and resources you could do it. A true end-to-end cloud cloud operations, maintain security, control cost and ensure governance of its management platform is a compilation of dozens of different components stitched growing multi-cloud estate—without having to worry about vendor instability or the together with IP and glue. It took Accenture $150 million, 25 patent applications, massive amount of work and expense it takes to build an end-to-end solution. a crew of 500, and nearly six years. You could probably do it in less time for less money, say four years and $100 million–assuming you find the talent. We were early and had a critical need to scale our operation–meaning we didn’t really have a choice. We learned by doing. Why would you take all of that time and make all of that effort if you had a reasonable alternative?

FORCE #9: GAME OVER. LET THE GAMES BEGIN COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 49 WHERE TO FROM HERE?

The game is changing. As we look ahead, it’s clear that many companies are now ramping up their public cloud efforts after having selected one or more of the Hyper 3. That game is over. Organizations are now beginning to understand there’s a new game at play that comes with the challenges of managing their new cloud estates. Companies need to avoid making rash decisions on such tools because they feel overwhelmed by all that effective cloud management requires. This game is not for the faint hearted. But there is a path to win, avoid lock-in and deliver the business and technical benefits that cloud offers—and that’s taking full advantage of what others, such as Accenture, have learned.

FORCE #9: GAME OVER. LET THE GAMES BEGIN COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 50 AUTHOR BIOS

Michael Liebow Michael Rutherford Tristan Morel L’Horset Global Managing Director, Cloud Product Management Sr. Manager, Managing Director, North America Intelligent Accenture Cloud Accenture Cloud Cloud & Infrastructure Sales Lead

Michael Liebow is the Global Managing Director Michael Rutherford is a Cloud Product Tristan Morel L’horset, Accenture’s North America for Accenture Cloud Platform (ACP), a secure, Management Sr. Manager on the Accenture Cloud and Infrastructure Managed Services Lead, scalable, enterprise-ready cloud integration Cloud Platform (ACP) team focused on driving has more than 20 years’ experience helping the product portfolio for private cloud, cloud clients maximize the business value of their Cloud system that provides management and control management and security services across and Infrastructure investments. Morel L’Horset over hybrid cloud services. Liebow leads a large Accenture’s client ecosystems. Rutherford leverages his industry expertise, and technology portion of Accenture’s cloud investment, myriad has been in the infrastructure space for 17 capabilities and innovation, to help optimize his of ecosystem partners and a 500-person global years with expertise in infrastructure strategy, clients’ digital journey. Morel L’Horset spent three team to build and operate Accenture’s cloud service development, hybrid cloud design, years in France as an expatriate to successfully build platform business. Prior to joining Accenture, product management and global outsourcing and grow Accenture’s Infrastructure Outsourcing Liebow served in a diverse range of leadership operations for multi-tenant and dedicated client practice and deliver large IT Transformation and roles including: Fellow at the U.S. Department of environments. Prior to ACP, Rutherford designed, Outsourcing engagements to Accenture’s French State; founder of a ‘big data’ venture launched in built and managed private cloud environments in clients. With 15 years in technology services, he has the startup battlefield at TechCrunch DISRUPT; Asia, North America and Europe and developed extensive experience with global and large clients, executive in residence at a top three leading VC, global service offerings for Accenture’s as well as the federal sector, working with top-level New Enterprise Associates; Board Member; startup outsourcing organization. government agencies. CEO; and IBM executive.

COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 51 AUTHOR BIOS

Andrew Wilson Sean Peterson Catherine Gulsvig Wood CIO, Accenture Cloud Management CoE Lead, Cloud Product Management Sr. Manager, Accenture Cloud Accenture Cloud

Andrew Wilson is responsible for IT in the New Sean Peterson currently serves as the Cloud Catherine Gulsvig Wood is the Senior Product for global IT operations and driving the digital Management CoE Lead for Accenture Manager for Accenture Cloud Platform (ACP). Gulsvig agenda of the $39.6 billion company. This Cloud Platform (ACP). His primary areas Wood is a pioneer in the field of IT, joining Digital includes infrastructure, services and applications of responsibility include leading a team of Equipment Corporation (DEC) after graduating from that enable Accenture people to work anytime, architects to assist various practices platform Lawrence University with a bachelor’s degree in piano anywhere to serve clients in more than 120 onto cloud architectures (including IaaS, PaaS performance. She has subsequently held leadership countries. Wilson ensures that Accenture is at and applications), improving the Solutions ‘aaS’ positions with Cray Research and served as an IT the forefront of innovation as a digital business— model and onboarding theses services into the consultant for such organizations as Channel Four from mission-critical applications to the network, ACP Catalog for lifecycle automation. Sean has Television (London), ING, and Thrivent Financial. Prior from e-mail and laptops to enterprise social extensive experience with Cloud Native PaaS, IoT, to joining Accenture, Gulsvig Wood built both public media and collaboration tools. He also leads CIO Analytics, eComm/Web and SAP architectures and private clouds for several enterprises, in both the Ecosystem Products and Services, and in this on cloud, and is an Accenture Certified Master U.S. and Europe, including Cisco’s own internal cloud. capacity, is responsible for Accenture’s buy-side Technology Architect. She holds patents on “provider-agnostic” technologies relationships with strategic suppliers as well as for managing application stacks and PaaS resources supplier management services delivered to clients. in multiple clouds. A self-taught programmer, Gulsvig Wilson served as Accenture’s Global LGBT Network Wood seeks to integrate viewpoints and approaches Sponsor for five years. from a multitude of disciplines to create breakthrough IT products and services.

COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 52 A SPECIAL AUTHOR BIOS THANK YOU TO THE FOLLOWING CONTRIBUTORS

Allison Conrad Associate Director & Global Lead, Solutions Management, Jonathan Roz Rodrigo Flores Global Client Delivery, Security & Platform Innovation Lead, Accenture Cloud Operations Lead, Accenture Cloud Accenture Cloud

Jonathan Roz is a Managing Director responsible Rodrigo Flores is Managing Director of Product for the delivery of Accenture Cloud Platform for Innovation, Architecture and Management for Cori Brodelius Accenture clients. Roz joined Accenture in 2000 as Accenture Cloud Platform (ACP). Prior to joining an experienced hire from EDS. Prior to his current Accenture, Flores was CTO & Enterprise Architect Accenture Cloud Platform position with ACP, Jonathan held a series of roles at Cisco’s Intelligent Automation Business Unit at Accenture, primarily focused on managing working on Cisco’s cloud management product. Market and Competitive client relationships for large outsourcing projects. Flores was the Founder and CTO of newScale, the Analysis Lead In addition to his position as global delivery lead, pioneer in Service Catalog automation, acquired Roz is also accountable for the implementation of by Cisco. Flores is a frequent writer and speaker a global cloud security program within Accenture. on cloud technology trends, co-authored the first His areas of expertise focus on client delivery, book on service catalogs, “Defining IT Success Douglas Chandler contract and financial management, cloud, Through Service Catalog,” and led the creation and Accenture Research Manager security and service governance. delivery of the first Service Catalog course. He also drove the creation of the ITIL course and exam for Service Catalogs, now part of Expert ITIL schema, and conducted the initial master class. He holds several patents in workflow technology.

COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 53 ENDNOTES 1 Commvault and CITO Research, August 14, 2017, “Cloud FOMO Is Real: Study Confirms C-Level and 13 “Google buys Orbitera, a platform for cloud marketplaces, for $100M+,” August 8, 2016 Other IT Leaders Have Fear of Missing out on Cloud Advancements,” https://www.commvault.com/ Shttps://techcrunch.com/2016/08/08/google-buys-orbitera-a-platform-for-building-marketplaces- news/2017/august/study-confirms-c-level-and-other-it-leaders-have-fear-of-missing-out-on-cloud- cloud-software/ advancements

14 “Cloudamize just merged with Blackstone-owned Cloudreach in a push for growth,” August 3, 2017 2 Synergy Research Group, January 7, 2019, “2018 Review Shows $250 billion Cloud Market Ecosystem https://technical.ly/philly/2017/08/03/cloudamize-merger-cloudreach-philadelphia/ Growing at 32% Annually,” https://www.srgresearch.com/articles/2018-review-shows-250-billion- cloud-market-ecosystem-growing-32-annually 15 “Flexera Acquires RightScale - The Multi-Cloud Management Platform Company,” September 26, 2018 https://www.forbes.com/sites/janakirammsv/2018/09/26/flexera-acquires-rightscale-the-multi- 3 Cleveland Research, 2017 Cloud Vendor Results Recap, February 2, 2018. cloud-management-platform-company/#5db7f13e5433

4 Gartner, Inc., September 18, 2018, “Gartner says 28 Percent of Spending in Key IT Segments Will Shift to the 16 “HP Enterprise strikes $8.8 billion deal with Micro Focus for software assets,” September 7, 2017 Cloud by 2022,” https://www.gartner.com/en/newsroom/press-releases/2018-09-18-gartner-says-28- https://www.reuters.com/article/us-hpenterprise-software-microfocus-idUSKCN11D2EU percent-of-spending-in-key-IT-segments-will-shift-to-the-cloud-by-2022

17 “Hewlett Packard Enterprise makes second acquisition in a week,” January 24, 2017 5 451 Research, “Voice of the Enterprise: Cloud Transformation,” November 27, 2017, https://451research. https://www.bizjournals.com/sanjose/news/2017/01/24/hewlett-packard-enterprise-makes-second. com/images/Marketing/press_releases/Pre_Re-Invent_2018_press_release_final_11_22.pdf html

6 Accenture, January 17, 2019, “Cybercrime Could Cost Companies US$5.2 Trillion Over Next Five Years, 18 “IBM to acquire in deal valued at $34 billion,” October 18, 2018 https://www.cnbc. According to New Research from Accenture,” https://newsroom.accenture.com/news/cybercrime- com/2018/10/28/ibm-to-acquire-red-hat-in-deal-valued-at-34-billion.html could-cost-companies-us-5-2-trillion-over-next-five-years-according-to-new-research-from- accenture.htm

7 IDG Research and sponsored by the Accenture AWS Business Group, “Accelerating the cloud migration dividend - IDG Research,” https://www.accenture.com/us-en/insight-public-cloud-migration- acceleration

8 “DXC Technology (DXC) to Post Q4 Earnings: A Beat in Store?,” May 21, 2018 https://www.nasdaq.com/ article/dxc-technology-dxc-to-post-q4-earnings-a-beat-in-store-cm966257

9 “Apprenda attempting to sell its assets after business shuts down,” August 21, 2019 https://www. bizjournals.com/albany/news/2018/08/21/report-apprenda-attempting-to-sell-its-assets.html

10 “Palo Alto Networks Closes Acquisition of Evident.io,” March 26, 2018 https://www.paloaltonetworks. com/company/press/2018/palo-alto-networks-closes-acquisition-of-evident-io

11 “VMware Closes CloudHealth Acquisition,” October 5, 2018 https://www.lightreading.com/services/ cloud-services/vmware-closes-cloudhealth-acquisition/d/d-id/746612

12 “Yes, Microsoft Is Buying This Cloud Monitoring Startup After All,” June 29, 2017 http://fortune. com/2017/06/29/microsoft-buys-cloudyn/

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