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The Hitchhiker's Guide to Cloud Transformation

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The Hitchhiker's Guide to Cloud Transformation The Hitchhiker’s Guide to Cloud Transformation Table of Contents Foreword by Kris Canekeratne, Chairman and CEO, Virtusa 3 Introduction 4 Chapter 1 – Planning a Cloud Transformation 5 Reimagine your business for the cloud computing era 6 Destination: Hybrid, multicloud world 14 Cloud foundation 22 Chapter 2 – Migrating to the Cloud 26 Securing a boundaryless organization 27 The perspective of the regulator 35 Migration factories 41 Chapter 3 – Running the cloud 47 DevOps on steroids 48 Operating the cloud 52 Cloud economics 58 Monitoring and managing a smarter cloud 70 Chapter 4 – Grow and Transform 76 Unleashing creativity 77 Data to insights 84 Building cloud-native apps with APIs 90 V.2.0 (C) 2020 Space is big. Really big. “ You just won’t believe how vastly, hugely, mindbogglingly big it is.” - Douglas Adams Although the cloud is comparatively smaller than space, most businesses still find working out the best way to capitalize on the full potential of the cloud mindboggling. It’s accepted that the cloud will deliver cost benefits, can dynamically scale, accelerate the pace of business, and foster innovation. However, there’s little consensus about how best to achieve this. There’s no single, right way to implement and operate the cloud. A company’s strategic objectives architectural paradigms and level of cloud maturity all combine to shape the right way to build and run cloud- and this makes cloud adoption and exploitation complex. Really complex. To help companies to adopt and get the most out of their cloud programs, Virtusa’s Cloud Transformation practice has created this brief “Hitchhiker’s Guide”. We hope you find our report interesting and useful. Kris Canekeratne Chairman and Chief Executive Ocer, Virtusa Corporation Copyright © 2020 Virtusa Corporation. All Rights Reserved. 3 Introduction Cast your memory back just a few short years. Back then, enterprise computing predominantly meant bare-metal servers, switches, routers, hypervisors, storage, network, and middleware. Our choices were limited, and our technology options were driven by the choices that our peer groups were making and analysts’ Magic Quadrants. In these simpler times, it was easy to define and secure the boundaries of enterprise computing. Now, the enterprise computing world has newer guests, Cloud Service Providers (CSPs). CSPs (AWS, Azure, GCP) are investing billions in creating elastic storage and computing infrastructure. On top of this, they are creating compelling capabilities that can help you to build what, a few years ago, would have been considered unimaginable. CSPs have made public the same technologies that helped them scale and succeed and, more importantly, are building innovative tech solutions and components and making them available at a fraction of their previous cost. Imagine building a video streaming app, mashing social media capabilities, and adding machine learning analytics, all in real-time. In the past, this would have cost a fortune and burned months. Now, using capabilities available from AWS, Azure, or GCP, an app like this can be built cheaply in days. This shift has fueled a technology revolution across the globe, as the rising number of tech entrepreneurs and unicorns show. CHAPTER 1 Planning a Cloud Transformation Copyright © 2020 Virtusa Corporation. All Rights Reserved. 5 ARTICLE 1 Reimagine your business for the cloud computing era by Bob Graham Multiple surveys show that leveraging the Wave 2 introduces a major shift in cloud in the enterprise is among the top approach and a business transformation priorities for companies today. There are mindset. Rather than “lift and shift,” various drivers for this, varying from cost we now see a focus on application savings, increased flexibility, time to market modernization. Instead of an ad hoc acceleration, and beyond. It seems everyone approach, we now see the emergence these days is striving to put their “head into of a cloud-first approach and top-down the cloud.” strategy. Rather than single-source cloud, enterprises are now going towards hybrid As we look at enterprises leveraging multi-cloud environments. Perhaps the cloud, we can see that we are in more importantly, organizations are now what is being called Wave Two of cloud considering how cloud-native strategies transformation. Wave One consisted can change revenue, improve customer primarily of the “lift and shift” approach that experience, and allow them to bring new was very focused on infrastructure benefits, ideas to market and respond to customer typically with a single cloud provider demands more quickly. In today’s combined with on-prem and/or private ultracompetitive environment, businesses cloud. This wave was primarily driven by IT that can build and deliver applications with a focus on virtualization and a goal of quickly in response to customer needs will infrastructure modernization benefits. It was build enduring success. also characterized more by an ad hoc and experimental approach. Context Cloud 1.0 Mindset Cloud 2.0 Mindset Approach Experiment / Ad hoc Define strategy to transform Workloads Lift and shift Refactor, replatform, cloud-native Cloud models Single cloud / Hybrid Hybrid multi-cloud Cost / Value Infrastructure savings Cloud as driving business benefits Compute model Instances -> containers Serverless & API Modernization Infrastructure modernization Application modernization Org impact Technology only Business outcomes Copyright © 2020 Virtusa Corporation. All Rights Reserved. 7 Unmet expectations Cloud migration expectation gaps As we have moved from Wave One to Wave Two, the stakes, costs, and expectations have risen considerably. Many organizations have found that their cloud transformation efforts have not been meeting expectations. A study from QA Vector Insight1 showed that most companies surveyed had major gaps in meeting expectations, with many categories having gaps that exceeded 50% of the anticipated benefit. These gaps exist in a number of categories, such as cost, customer experience, and resiliency. Such a level of expectation gap speaks to a poor process in strategy and planning in cloud transformation programs today. Many faulty approaches rush to focus on doing a technical application inventory assessment and, from there, make cloud migration decisions. From our vantage point, a better approach to ensuring a strong cloud transformation plan is the one that considers both business and IT attributes and combines financial analysis. Target benefits Actual benefits achieved Exhibit – Cloud migration expected gaps, target versus achievement, Source: 1 QA Vector® Insight: Cloud migration 2.0: shifting priorities for application modernization in 2019 High Business Cloud migration Comprehensive due diligence Value expectation gaps As most organizations are looking at hundreds and even thousands of applications when considering how to migrate their portfolio, Hard to Easy to we suggest a review of three areas from both Migrate Migrate macro and micro perspectives. Application Architecture Low Business 1 Conduct a macro analysis to Value provide an application inventory with a functional and technical This macro analysis yields several group along with data architecture deliverables. First, it delivers a and data asset inventory comprehensive application inventory that, with a capture of business 2 Business Architecture capabilities, can be viewed through both Create a macro business capability business and IT lenses, allowing us to model (BCM) to show strategic and generate a macro view of the business operational architectural context, value and migration complexity. including products, customers, users, and L1/ L2 capabilities Second, we are able to take this data analysis and create an initial 6R strategy (Rehost, Re-platform, Repurchase, 3 Financial Analysis Refactor, Retire, and Retain) by Analyze the spend by application application and combine it with the and BCM L1 total cost of ownership information to create a macro 6R disposition with cost and timeline. Copyright © 2020 Virtusa Corporation. All Rights Reserved. 9 6R status This unique methodology then allows us to show this information in a business context. For example, we can answer the question that for a given capability, for example, customer onboarding, how many applications support this capability, and link the 6R status of all applications that support customer onboarding and align it in a roadmap view. This last point becomes extremely important in making decisions around migration. When the macro phase is completed, we can launch a micro analysis phase that will allow us to develop: Application Architecture Business Architecture Financial Analysis Application component L3 level 6R portfolio Rationalization options view, application analysis for application, infrastructure future state, infrastructure and data data asset architecture 6R Strategy Time Cost Retain Retire Rehost Re-purchase Re-platform Migration Complexity Migration Re Factor Virtusa Cloud Transformation’s approach enables us to look at business-specific workloads and determine which CSPs are the best match. Our unique methodology then ensures that both IT and the business can see their portfolios across different matrixes and with that make better informed decisions about how to proceed on their cloud journey. Copyright © 2020 Virtusa Corporation. All Rights Reserved. 11 Lastly, a business capability driven approach easily allows organizations to drive to a microservices architecture and leverage container and orchestration technologies
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