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“This book successfully addresses the approach for adopting cloud into organizations (small and large), realizing that every application may not be a fit for a cloud environment. The writer does an excellent job of integrating cloud into the approach for an enterprise architecture and drilling down into how to evaluate cloud in its variety of implementation techniques, along with the benefits and drawbacks of each.”
— Sue Miller-Sylvia, IBM Fellow and Vice President, Application Innovation Services, IBM Global Business Services
Make the Right Cloud Adoption and Deployment Decisions for Your Business
This is the first complete guide to cloud decision making for senior executives in both technology and non-technology roles. IBM® Global Business Services® Executive Architect Pamela K. Isom and IBM Fellow Kerrie Holley present practical business cases, vignettes, and techniques to help you understand when cloud investments make sense and when they don’t. You’ll find decision models that are anchored with practical experiences and lessons to guide your decision making, best practices for leveraging investments you’ve already made, and expert assistance with every aspect of the cloud transition.
Drawing on their extensive experience working with enterprise clients, Isom and Holley show how to integrate both business and technical considerations, set the right priorities, and successfully manage everything from security and performance to governance. Whatever your company’s size, industry, or challenges, this book will help you drive maximum business value from the cloud—on your terms and on your timeline.
Coverage includes
Chapter 1 Business Value of a Cloud Adoption Strategy 1
Ten Expectations of Your Cloud Adoption Strategy 2
1. Create Your Cloud Vision 4
2. Identify Cloud Use Cases 10
3. Drive Business Innovation 12
4. Define Business Outcomes and Projected ROI 13
5. Determine Opportunities for Cloud as a Fifth Utility 15
6. Specify Cloud Ecosystem 17
7. Determine and Publish Stakeholder Involvement 18
8. Develop Metrics 19
9. Define Governance 20
10. Develop Roadmaps 20
Harvesting the Value 21
Summary 22
Endnotes 23
Chapter 2 Business Value of Incorporating Cloud into Your EA 25
Your Integrated Business and IT Strategy 26
Business Benefits of the Convergence 29
Developing Your Enterprise Cloud Adoption Strategy 35
What If You Do Not Use EA? 39
Scenario 1: Effective Business Transformation 40
Scenario 2: Reducing Costs and Redundancies 41
Scenario 3: Validating and Forming Your Enterprise Cloud Adoption Strategy 41
Summary 42
Endnotes 43
Chapter 3 The Life Cycle of Your Enterprise Cloud Adoption Strategy 45
Initial Planning 46
Enterprise Capabilities and Cloud Vision 49
Target Architecture and Cloud Enablers 61
Business Architecture (BA) and Business-Process-as-a-Service (BPaaS) 62
Information Systems and SaaS 68
Technology and Infrastructure, PaaS and IaaS 75
Gap Analysis and Transition Planning 78
Implementation Planning 81
Governance 82
The Significance of Service Oriented Architecture (SOA) 83
Standards 84
Summary 85
Endnotes 88
Chapter 4 Identifying Cloud Candidates 89
Your Cloud Decision Model 90
Top-Down Analysis 91
Bottom-Up Analysis 95
Cloud Discovery Workshop 96
Business Scenario: Cloud Decision Analysis for Distributors, Inc. 97
Summary 100
Endnotes 101
Chapter 5 What About Governance? 103
Governance Is Essential for Cloud 104
An Enterprise Cloud Governance Framework 105
Principles and Policies 106
Organizational Structure 107
Financials 112
Processes 112
Metrics and Tools 115
Establishing Ownership 116
Governing in the Presence of Outsourcing 118
Governing Cloud Service Brokers 120
Governing Innovation 123
Business Scenario: Innovation and Cloud Provider Company 125
Summary 128
Endnotes 130
Chapter 6 Mitigating Risk 133
Cloud Risk Management and Response Strategies 133
Enterprise Adaptation 137
How Do We Select Cloud Providers That Are Conducive to Our Business Strategy? 138
What If We Are Not Equipped to Make Sound Cloud Computing Choices? 142
How Do We Mitigate the Risk of Stakeholder Rejection? 143
Information Privacy and Transparency: Striking the Right Balance 146
Service Level Management (SLM) 149
Performance and Quality of Service 153
Globalization 156
Summary 157
Endnotes 159
Chapter 7 Planning the Transition 161
Relating Transition and Implementation Planning 161
The Business of Cloud 163
Self-Service 165
Speed, Rapid Development, and Service Delivery 165
Flexible Pricing, Pay Per Use 168
Café-Style Services 169
Leaner 169
Practical Experiences and Lessons Learned 171
Proof of Concepts and Pilot Programs 171
Organizational Change 171
Workload Considerations 176
Outsourcing Considerations 177
Buyer and Seller Considerations 178
Test Strategy Considerations 180
Enterprise Cloud Transition Plans and Roadmap Examples 180
Summary 183
Endnotes 184
Chapter 8 Financial Considerations 185
Communicating the Financial Benefits and Implications 186
Managing Your Money 189
Do Opportunity Costs Matter? 195
Cloud Workloads and Business Profitability 195
Key ROI Metrics and Business Agility Indicators 199
Time Value of Money (TVM) and Net Present Value (NPV) 200
Business Scenario: Brand, Inc. 201
Summary 204
Endnotes 205
Epilogue Thinking Beyond the Race 207
Appendix A Augmenting Your Delivery Model with Cloud 243
Appendix B Cloud Case Studies and Common Questions 267
Appendix C More on Cloud Business Trends 299
Glossary 311
Index 331