While cloud is fast becoming the new normal for organisations of all sizes, many IT executives & budget owners struggle to articulate the business value of moving to the cloud in terms that resonate with the Board and the broader C suite. In this session, we will talk through a live customer migration investment case that we had developed for a customer to undertake a commercial evaluation of their move to the cloud. It will illustrate the true impact of cloud computing on the overall IT cost base along with migration costs and associated non-cost benefits. Finally, we will discuss how AWS can support you in developing a similar investment case for your organization through a holistic framework.
2. a generic term used to describe the disruptive
transformation in I.T. towards a service based economy
driven by a set of economic, cultural and
technological conditions.
Cloud Computing
@SWardley
3. Today, startups are born in the cloud…
Enterprises…however, have legacy technology debt
4. Today, startups are born in the cloud…
Enterprises…however, have legacy technology debt
So what can we do for large organizations?
AWS Mass Migration.
5. Patterns for Enterprise Adoption
“transform the way organisations produce &
consume technology”
Remediate
Technology Debt
Develop an Innovation
Factory
Platform
6. CUSTOMER CLOUD CENTER OF EXCELLENCE (COE)
AWS CLOUD ADOPTION FRAMEWORK DELIVERY KITS
CLOUD-NATIVE
RETIRE
TECH
DEBT
Cloud Stages of Adoption
value
time
PROJECT
1
FOUNDATION
2
MIGRATION
3
REINVENTION
4
12. Lack of Data
Infrastructure comparison
Application centric TCO
Legacy Constraints
A poorly understood
Migration Pathway
Capacity Planning Benefits
Cloud Operating Model
Migration planning and schedule
Lack of trusted
support/partners
Workforce productivity
Training and enablement
A daunting investment
amount
Financial Benefits of Innovation
Cost Avoidance
Costs (Migration and Platform)
13. Content for today…
AWS Business
Case Basics Migration
Reference
Cases
Common
blockers – how
do we help?
Migration Take off
Where to start?
Examples ● Steps
1 2 3 4
15. The Evolution of the Mass Migration
Business Case From infrastructure cost savings to a business imperative
New Business Growth
• Organic and Inorganic Growth
• Reduced cost of entry
• Global Reach
• Reduction in time-to-market for new products and
services
• Customer centricity
Increasing profitability of
existing products and services
• Increased Business Process Automation
• Incremental Innovation
• Reduction in Rework
Reduction in IT Cost Base
• Consumption Based Pricing & Automation
• Elimination of upfront CAPEX requirements
• Real-time access to declining prices
CloudAdoption
16. What does this mean for you?
There is a tightening correlation between cloud adoption and business performance.
LevelofCloudAdoption
Competitive Performance Percentile
Market followers Market challengers Market leaders
Zero Cloud
Usage
Experiment
Disruptors
17. Business Case Deliverables
“Based on the current
level of business
activity, the projected
five year IT cost base
amounts to USD$___,
including capital
requirements of
USD$___.”
“Do Nothing”
Scenario
Transformation
Investment Required
Application Transformation
Platform build/enhancement
Training and Change
Management
Target Future
$0
18. Breaking down the AWS Business Case
The current estate is dominated by business and
digital applications that account for ~X% of the
applications and ~Y% of the servers.
Business
Application
s
Digital
Application
s
Batch
Processing
Application
s
End-user
Computing
Application
s
APPLICATIONS BREAK-DOWN BY
CATEGORY
Business
Application
s
Digital
Application
s
Batch
Processing
Application
s
End-user
Computing
Application
s
SERVERS BY APPLICATION CATEGORY
19. Based on current activity, the projected five year IT
cost base amounts to USD__, including capital
requirements of USD__.
Breaking down the AWS Business Case
The current estate is dominated by business and
digital applications that account for ~X% of the
applications and ~Y% of the servers.
APPLICATIONS BREAK-DOWN
BY CATEGORY
SERVERS BY APPLICATION
CATEGORY
0
100
200
300
400
500
600
700
Year 1 Year 2 Year 3 Year 4 Year 5
USDm
Capital Requirements
Application and related costs
Operations and service
management costs
Infrastructure Opex
Five Year “Do Nothing” Cost Base
20. A tailored migration approach and investment.
Breaking down the AWS Business Case
The current estate is dominated by business and
digital applications that account for ~X% of the
applications and ~Y% of the servers.
APPLICATIONS BREAK-DOWN
BY CATEGORY
SERVERS BY APPLICATION
CATEGORY
0
500
1000
Year
1
Year
2
Year
3
Year
4
Year
5
USDm
Based on current activity, the projected five year IT
cost base amounts to USD___, including capital
requirements of USD53m.Apps: Migration Approach & Investment Required
R1
R2
R3
R4
R5
R6
21. Over a 5 years, an investment of USD__ will deliver
USD__ savings with a payback period of 2.5 years.
Breaking down the AWS Business Case
The current estate is dominated by business and
digital applications that account for ~x% of the
applications and ~y% of the servers.
APPLICATIONS BREAK-DOWN
BY CATEGORY
SERVERS BY APPLICATION
CATEGORY
0
500
1000
Year
1
Year
2
Year
3
Year
4
Year
5
USDm
Based on current activity, the projected five year IT
cost base amounts to USD___, including capital
requirements of USD53m.
A tailored migration approach and investment.
Label Pattern Name # of apps # of servers CTA
Retain / Repurchase Out of scope
Retire* Out of scope
Re-Hosting* 512 4,844 USD12.2m
Re-Platform* 485 4,586 USD20.1m
Re-Factoring* 179 1,698 USD24.9m
Re-Architect** 92 872 USD25.6m
Total 1,268 12,000 USD82.8m
R1
R2
R3
R4
R5
R6
Apps: Migration Approach & Investment Required
$(200,000,000)
$(100,000,000)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20
Cash Flow Analysis
23. Five Key Benefits Categories of Cloud
• Unit Price of Infrastructure
• Ability to match supply & demand
• Reinvention is continuous – a true efficiency dividend
• A pathway to optionality
• An elastic Cost Base
• Transparency drives a lean mindset
Operational Costs
Workforce
Productivity
• Automation drives maintenance efficiencies
• Reduced cost of planned and unplanned outages
• Increased Developer Productivity
Cost Avoidance
• Elimination of hardware refresh programs
• Elimination of maintenance programs
Operational
Resilience
• Reduced Risk Profile/Reduced cost of Risk
Mitigation
• Revenue & margin improvements due to
reduced outages
Business Agility
• Reduced Time to Market
• Increased operational agility (new market
penetration, divestiture, acquisition)
• Reduced cost & increased Pace of
Experimentation
25. The migration approach is dependent on the specific
drivers and constraints of the organisation
Lift and Shift Right-sized on AWS AWS-Optimized
Old world
enterprise in
the cloud
Exploring
the new
normal
Next-gen
operating
model
Benefits
of
change
Degree of Change
26. Cost to Achieve – Application Transformation Patterns
Migration Pattern Name & Label Pattern Description
Retain Ø Client will keep host / application in their source environment
Retire* Ø Application and host decommission on source
Re-Hosting*
Ø Like for Like application migration to target cloud
Ø Minimal effort to make the application work on the target cloud infrastructure
(Minimal appl layout change)
Re-Platform*
Ø Up-Version of the OS and/or Database onto the target cloud
Ø Storage migration will be needed (without conversion)
Ø Application reinstallation on the target
Ø Database to AWS RDS
Re-Factoring*
Ø OS and/or Database porting
Ø Middleware and application change to cloudify an application
Ø Data conversion; Database transition to MySQl, Aurora, etc.
Ø UAT required
Re-Architect**
Ø Application architecture changes may also require Up-Version or Porting
Ø Middleware, data modernisation; application consolidation / stacking
Ø UAT required; HPC Grid, No ITIL
R1
R2
R3
R4
R5
R6
28. 100%
30%
Today DC in AWS Right-sizing AWS
Optimized
Apps
Move to
Higher-level
Services
Move to
Open
Source
Corporate
Apps aaS
on AWS
Migration to
Workspaces
True AWS
Optimized
Focus of initial migration
For illustrative purposes only
Migration is just the beginning…
29. So who’s actually done this?
AWS Business
Case Basics Migration
Reference
Cases
Common blockers –
how do we help?
Migration Take
off
Where to start?
What? ● Why? ● When?
Examples ● Steps
1 2 3 4
30. General Electric Migration Case
Ready for innovation
9000 Workloads
Including 300 disparate ERP
systems to AWS
34 to 4 Datacenters
Over the next three years
52% TCO reduction
GE Oil & Gas core app migration
Building before Buying
“This is no longer an
experiment, it is inevitable”
GE CIO, Jim Fowler, 2015
Workloads migrated
242
884
2066
2014 2015 2016
12 Primary Business
Units Migrated
What’s next?
Currently
80% (Tech Debt)
20% (Digital Innovation)
Going forward
50% (Tech Debt)
50% (Digital Innovation)
31. Operational CostsWorkforce ProductivityCost AvoidanceOperational ResilienceBusiness Agility
• 98% reduction in
P1/P0’s
• 77% faster to deliver
business applications
• 52% average TCO
savings
• 35% reduction in
compute assets (792)
• 15 automated bots
developed
• 80% cloud first
adoption
• 15 cloud services
created
• 50 applications
decommissioned
• 8 cloud migration
parties
• Improved security
posture
• Shift to self-service
culture
• Rapid
experimentation
• Reduced technical
debt
• 14M YOY Savings
• Improved
Performance
• Streamlined M&A
Activity
• DevOps in Practice
Progress
14.2M
Investment
Focus
18
Months
311 Apps
in Cloud &
14M YOY
Savings
General Electric Migration Case
Key Benefits Overview
33. From business case to reality
Kaplan Closes 8 Data Centers.
By Migrating Data Centers, Wilmar Saves 50% in CAPEX.
Delaware North Moves Data Center to Save $3.5M
Over Five Years.
Hess Uses AWS to Streamline Data Center Migration
in 6 Months.
News UK Shortens Time to Market by 6 Months by
Migrating 60% of its Data Centers.
ENEL has migrated 10,000 servers and 6 PBs of data to
AWS in 9 months and saving up to 21% on compute and
up to 60% on storage costs.
35. Lack of Data
A poorly understood
Migration Pathway
Lack of trusted
support/partners
A daunting investment
amount
Infrastructure comparison
Application centric TCO
Legacy Constraints
Capacity Planning Benefits
Cloud Operating Model
Migration planning and schedule
Workforce productivity
Training and enablement
Financial Benefits of Innovation
Cost Avoidance
Costs (Migration and Platform)
Blockers to Mass Migration…Unblocked
AWS Application Discovery
Services
Snowball
Database Migration Service
Server Migration Service
Storage Gateway
Snowmobile S3 Transfer
AWS Partner Migration Competency
Training and Center of Excellence
Migration Acceleration Program
Partner Migration Fund
36. and this list is always growing…
Database
Migration
Service
Snowball
2015 2016
Migration
Acceleration
Program
Server
Migration
Service
Application
Discovery
Service
S3 Transfer
Acceleration
Snowmobile
Partner
Migration
Competency
ProServe
Migration
Capabilities
2017
Migration
Partner
Funding
Cloud Economics
Investment Case
Support
38. …we’ve created a program that brings
this all together
MRA Migration Readiness Planning Migration to AWS Optimize
1 2 3 4
Migration Acceleration Program (MAP)
A with and and and
migration
method
AWS
Tools
Partner
ProServe
Funding
Free
Training
Days
Service
Credits
39. …we’ve created a program that brings
this all together
MRA Migration Readiness Planning Migration to AWS Optimize
1 2 3 4
Migration Acceleration Program (MAP)
High level TCO
Analysis
App-centric
Business Case
40. Closing thoughts…
Data Discovery is often the bottleneck – start now!
Leverage skilled business case resources
Test your economic hypothesis
Remember platform build and change management
investment are key to long term success
Leverage AWS resources (Programs, Partners, Proserve)
Talent will define your migration and longer term success
(CoE, etc.)
41. “We start with what the customer needs and
we work backwards.”
– Jeff Bezos