E n t e r p Enterprise Enterprise r i About the Authors s e C Barry Briggs is an author and l o Cloud Strategy consultant. He was most recently u d Chief Enterprise Architect S t Cloud Strategy r for the Microsoft Developer a t e Lead the journey to the cloud and drive Experience team and previously g y innovation Chief Architect and CTO for the Microsoft IT organization. Implemented through collaborative IT and business leadership, Eduardo Kassner is the Director of the infrastructure, applications, and services delivered through Cloud Solution Architecture in the the hybrid cloud model can lead to a transformational process Worldwide Enterprise and Partner of innovation, efficiencies, and competitive advantage. This Group at Microsoft. collaborative journey to the cloud requires different skills, thinking, and culture for successful navigation. The process of cloud migration also requires a plan and a solid understanding of the various components of a cloud strategy. This book shows Also look for you how to assess your application portfolio, design the programs and processes, and manage the organizational change as you move your application catalog to the cloud. Enterprise Mobility with App Management, Office 365, and K B a r Threat Mitigation: Beyond BYOD ssn igg e s r Yuri Diogenes, Jeff Gilbert, Robert Mazzoli ISBN: 978-1-5093-0133-1 Barry Briggs and Eduardo Kassner MicrosoftPressStore.com Celebrating over 30 years! 301966_CloudStrategy_Briggs_cover.indd 1 11/23/2015 11:31:32 AM PUBLISHED BY Microsoft Press A division of Microsoft Corporation One Microsoft Way Redmond, Washington 98052-6399 Copyright © 2016 by Microsoft Corporation All rights reserved. No part of the contents of this book may be reproduced or transmitted in any form or by any means without the written permission of the publisher. Library of Congress Control Number: ISBN: 978-1-5093-0196-6 First Printing Microsoft Press books are available through booksellers and distributors worldwide. If you need support related to this book, email Microsoft Press Support at [email protected]. Please tell us what you think of this book at http://aka.ms/tellpress. This book is provided “as-is” and expresses the author’s views and opinions. The views, opinions and information expressed in this book, including URL and other Internet website references, may change without notice. Some examples depicted herein are provided for illustration only and are fictitious. No real association or connection is intended or should be inferred. Microsoft and the trademarks listed at http://www.microsoft.com/about/legal/en/us/ IntellectualProperty/Trademarks/EN-US.aspx are trademarks of the Microsoft group of companies. All other marks are property of their respective owners. Acquisitions Editor: Karen Szall Developmental Editor: Karen Szall Editorial Production: Dianne Russell, Octal Publishing, Inc. Copyeditor: Bob Russell, Octal Publishing, Inc. Cover: Twist Creative • Seattle Visit us today at microsoftpressstore.com • Hundreds of titles available – Books, eBooks, and online resources from industry experts • Free U.S. shipping • eBooks in multiple formats – Read on your computer, tablet, mobile device, or e-reader • Print & eBook Best Value Packs • eBook Deal of the Week – Save up to 60% on featured titles • Newsletter and special offers – Be the first to hear about new releases, specials, and more • Register your book – Get additional benefits Contents Introduction .............................................................................................................................................. v Acknowledgments ................................................................................................................................................................... v Errata, updates, & book support ....................................................................................................................................... v Free ebooks from Microsoft Press ................................................................................................................................... vi We want to hear from you .................................................................................................................................................. vi Chapter 1: The cloud, efficiency, and innovation ................................................................................. 1 Economics of the cloud ......................................................................................................................................................... 1 Daily efficiencies ....................................................................................................................................................................... 3 Innovation .............................................................................................................................................................................. 3 Telenor..................................................................................................................................................................................... 4 Aviva ......................................................................................................................................................................................... 5 3M Parking Systems ........................................................................................................................................................... 6 Heineken ................................................................................................................................................................................. 7 Learnings ..................................................................................................................................................................................... 8 Chapter 2: Journey to the cloud: the roadmap .................................................................................... 9 Don’t miss the opportunity to modernize .................................................................................................................. 10 Evolution of the five R’s of modernization ................................................................................................................. 11 Cloud migration: three stages ......................................................................................................................................... 12 Chapter 3: Experimentation .................................................................................................................. 14 Microsoft IT’s first cloud application ............................................................................................................................. 14 Experimentation and the problem of “shadow” IT .................................................................................................. 15 Chapter 4: Migrating IT to the cloud ................................................................................................... 18 Establish strategy and goals ............................................................................................................................................. 18 Organizational responsibilities in creating the strategy ........................................................................................ 22 Enterprise architecture ................................................................................................................................................... 22 Information security and risk management .......................................................................................................... 23 Data classification ............................................................................................................................................................ 24 Enterprise Risk Management....................................................................................................................................... 25 Finance ................................................................................................................................................................................. 25 Operations .......................................................................................................................................................................... 26 Human resources and the evolution of roles ....................................................................................................... 27 Applications teams .......................................................................................................................................................... 29 ii Contents Business units .................................................................................................................................................................... 30 Building the catalog ............................................................................................................................................................. 30 Top-down portfolio analysis ........................................................................................................................................ 31 Bottom-up portfolio analysis ...................................................................................................................................... 33 The cloud migration plan .................................................................................................................................................. 35 Microsoft IT’s experience ................................................................................................................................................... 37 Cloud governance ................................................................................................................................................................ 38 Data governance .............................................................................................................................................................. 38 Financial governance ...................................................................................................................................................... 39 Security and compliance ............................................................................................................................................... 40 Change management ..................................................................................................................................................... 40 Information Technology Infrastructure Library and the cloud ....................................................................... 41 Chapter 5: Transformation .................................................................................................................... 43 Platform as a Service architecture .................................................................................................................................. 43 Containers and microservices .......................................................................................................................................... 44 Storage ...................................................................................................................................................................................... 44 Relational databases in the cloud.............................................................................................................................. 45 NoSQL (nonrelational) storage ................................................................................................................................... 46 Analysis ..................................................................................................................................................................................... 49 Integration ............................................................................................................................................................................... 52 Using services to create rich end-to-end applications .......................................................................................... 53 Conclusions ............................................................................................................................................................................. 55 Appendix A: Cloud architectural blueprints ....................................................................................... 57 Data analytics ......................................................................................................................................................................... 57 BI and analytics ...................................................................................................................................................................... 59 Live media streaming .......................................................................................................................................................... 61 Video on demand (VOD) ................................................................................................................................................... 63 Line-of-business applications in infrastructure services ....................................................................................... 65 Hybrid cloud storage ........................................................................................................................................................... 67 E-commerce website ........................................................................................................................................................... 68 Business-to-business (B2B) e-commerce .................................................................................................................... 70 Multichannel marketing ..................................................................................................................................................... 72 DevOps ..................................................................................................................................................................................... 73 Appendix B: Sample technology scenarios ......................................................................................... 76 Hybrid cloud scenarios ....................................................................................................................................................... 76 Hybrid cloud connectivity ............................................................................................................................................. 76 Using the cloud for data backup and recovery .................................................................................................... 78 Hybrid database scenarios ........................................................................................................................................... 81 iii Contents Development and test ........................................................................................................................................................ 82 Application development ............................................................................................................................................. 82 Microsoft SharePoint ...................................................................................................................................................... 83 High availability in the cloud ............................................................................................................................................ 83 Connected devices ............................................................................................................................................................... 85 Identity and authentication .............................................................................................................................................. 86 Mobile applications ............................................................................................................................................................. 88 Enterprise mobility management ................................................................................................................................... 89 Websites ................................................................................................................................................................................... 90 Azure Media Services .......................................................................................................................................................... 91 Migration strategies ............................................................................................................................................................. 93 Appendix C: Recommended references .............................................................................................. 95 Storage references ........................................................................................................................................................... 95 Application development and insights references ............................................................................................. 95 Performance best practices references ................................................................................................................... 95 Other cloud migration references ............................................................................................................................. 96 About the authors ................................................................................................................................................................ 97 iv Contents Introduction When briefing CIOs and senior IT executives at Microsoft, we are often told that migrating IT workloads to the cloud ranks among their highest priorities. That statement is almost inevitably followed by “How do I start?”; “How should I build a plan for cloud migration for my entire portfolio?”; and “How will my organization be affected by this change?” This book, based on real-world cloud experiences by enterprise IT teams, seeks to provide answers to these questions. Here, you’ll see what makes the cloud so compelling to enterprises; with which applications you should start your cloud journey; how your organization will change, and how skill sets will evolve; how to measure progress; how to think about security, compliance, and business buy- in; and how to exploit the ever-growing feature set that the cloud offers to gain strategic and competitive advantage. Acknowledgments The authors wish to express their deep gratitude to the following individuals for their support, guidance, and their willingness to freely share their expertise: Scott Woodgate, Javier Nino, Tom Schinder, Venkat Gattamneni, Martin Vliem, Ulrich Homann, Robert Hanegraaff, John Devadoss, Brenda Carter, Michael Washam, Zoiner Tejeda, Nadia Matthews, Rob Beddard, Jeff Fryling, Kevin Gee, Colin Nurse, Raman Johar, Walter Myers, Uwe Hoffman, Ashish Sharma, Ashutosh Maheshware, Rich Nickerson, Michel Declercq, Arlindo Alves, Dennis Mulder, and George Moore. Rob Boucher and Monica Rush created the graphic representations of the blueprints in the Appendixes. Errata, updates, & book support We’ve made every effort to ensure the accuracy of this book and its companion content. You can access updates to this book—in the form of a list of submitted errata and their related corrections— at: http://aka.ms/ECS/errata If you discover an error that is not already listed, please submit it to us at the same page. If you need additional support, email Microsoft Press Book Support at [email protected]. Please note that product support for Microsoft software and hardware is not offered through the previous addresses. For help with Microsoft software or hardware, go to http://support.microsoft.com. v Introduction Free ebooks from Microsoft Press From technical overviews to in-depth information on special topics, the free ebooks from Microsoft Press cover a wide range of topics. These ebooks are available in PDF, EPUB, and Mobi for Kindle formats, ready for you to download at: http://aka.ms/mspressfree Check back often to see what is new! We want to hear from you At Microsoft Press, your satisfaction is our top priority, and your feedback our most valuable asset. Please tell us what you think of this book at: http://aka.ms/tellpress We know you’re busy, so we’ve kept it short with just a few questions. Your answers go directly to the editors at Microsoft Press. (No personal information will be requested.) Thanks in advance for your input! Stay in touch Let’s keep the conversation going! We’re on Twitter: http://twitter.com/MicrosoftPress vi Contents 1 CHAPTER The cloud, efficiency, and innovation Most people now agree that the cloud has become a core element of any enterprise’s technology strategy. Indeed, in the past few years we have seen the conversation around cloud adoption move from “if” to “when” and “how.” It is, in short, a fact of life. Nevertheless, it remains one of the most disruptive changes in computing in years, and it is worth reviewing what makes the cloud so compelling to enterprise IT. Its value proposition is many-faceted, ranging from significant cost savings over a traditional datacenter approach to the ability to quickly build robust, resilient applications that can scale up as traffic spikes, and scale down as it recedes. Economics of the cloud In cloud computing, enterprises pay for what they use, much as they would a telecom provider. If demand decreases and you no longer need capacity, you can turn off systems and you are not charged. This simple model stands in stark contrast to the traditional model of enterprise computing, which is a capital-intensive function, requiring expensive datacenters, electricity, air conditioning, servers, networks, storage, and 24x7 operations staff. For most companies, maintaining a large IT presence in this model implies large capital expenditures and a nontrivial amount of accounting and record-keeping to track depreciation, tax considerations, and so forth. Moreover, when you purchase the hardware and the software, they become yours in every sense of the word. Operations staffs are responsible for hardware swaps, networks, backups, updates for operating systems, and upgrades to the system software and applications. The traditional model is a “capital expense” model. The cloud, being subscription-based, is an operating expense model. In the cloud, computing becomes a service for which customers are billed a monthly charge. Like other such services, it is metered by usage. The more compute, network, and storage resources that you use, the higher will be your bill. Of course the reverse is also true: the less you use, the less you are charged. Indeed, most IT organizations find wide variations in system utilization: some applications (for example, retail 1 CHAPTER 1 | The cloud, efficiency, and innovation shopping) are seasonal; other applications (for example, training applications) run for a short period of time before being shut down; others are simply unpredictable. The cloud addresses this variability (shown in Figure 1-1) perfectly via its “pay for what you use” model. Figure 1-1: Common application utilization models (It is worth mentioning that in the on-premises datacenter, the maximum utilization must be planned for and provisioned, which is financially far more inefficient than in the cloud.) But, there is more to it. Operating in the cloud frees enterprises of the mundane tasks of system backup, network maintenance, patches, and software upgrades, because the cloud provider can handle these in their entirety. The cloud provider in turn is heavily incented to utilize and in many cases pioneer best practices for system maintenance; the benefits are then passed to the customer. Moreover, cloud providers such as Microsoft can achieve economies of scale by buying hardware in massive bulk, tens of thousands of servers at a time, for example. Very large datacenters hosting public clouds can also achieve economies in purchasing other resources; cloud datacenters pay only a quarter of the average cost of electricity in the United States. Figure 1-2 shows how overall total cost of ownership (TCO) per server declines dramatically at scale. 2 CHAPTER 1 | The cloud, efficiency, and innovation