Migrating thinking not just applications to the cloud
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The document discusses the migration of legacy applications to the cloud, emphasizing the importance of choosing between on-premise and cloud solutions. It outlines various frameworks for understanding technology sourcing and lifecycle management, stressing the need for a strategic approach to architecture to enhance agility and innovation. Case studies in the media and retail banking sectors illustrate the impact of cloud adoption on competition and operational efficiency.
Migrating thinking not just applications to the cloud
- 1. © The Insights Group Ltd, 2016. All rights reserved. Cloudsoft and Insights Migrating thinking & legacy apps to the Cloud Stuart Bell (Twitter: @sjwb / LinkedIn ) March 2019
- 2. © The Insights Group Ltd, 2016. All rights reserved. Who am I • Software Engineer • Technical Architect • Solution & Enterprise Architect • CTO • Consultant • Jack of all trades!
- 3. © The Insights Group Ltd, 2016. All rights reserved. Build vs Buy And then there’s… On Premise vs Cloud* * There is also the tedious argument of private versus public cloud but let’s not worry about that right now
- 4. © The Insights Group Ltd, 2016. All rights reserved. Useful Frameworks
- 5. © The Insights Group Ltd, 2016. All rights reserved. Useful Frameworks Think in Pace layers (Gartner) Characteristics • Sourcing: Localised, bespoke development, entrepreneurial, innovative vendors • Lifecycle: Agile and lean methodologies • Rationale: Bleeding edge, new ideas, product • Horizon planning: 3+ months Characteristics • Sourcing: Some technology oversight, some RFP activity, but still predominately internal build • Lifecycle: Connecting to vendor and waterfall lifecycles • Rationale: Better ideas, brand, customer, product • Horizon planning: 18mths+ Characteristics • Sourcing: Established vendors, RFP-driven, domain specialists • Lifecycle: No to very little agile, largely waterfall and vendor management • Rationale: Commonality, standardisation, commodity, running the business • Horizon planning: 5 – 10 years Get used to a heterogenous architecture with varieties of demand and pace to contend with. Once you acknowledge that this exists it is easier to determine the right strategic choices. Systems of Innovation Systems of Differentiation Systems of Record
- 6. © The Insights Group Ltd, 2016. All rights reserved. Useful Frameworks ‘Shearings’ layers Unless your business depends on designing and building core infrastructure, then consider it a commodity capability and seek to outsource
- 7. © The Insights Group Ltd, 2016. All rights reserved. Useful Frameworks Where the priorities and business benefits lie Observations • While PaaS frameworks (Heroku, Red Hat Open Shift) have allowed internal infrastructure teams to become cloud-friendly in terms of the practices it is still a very costly approach • One-size-fits-all thinking neither drives the efficiencies you want nor delivers the pace that you need • On-prem or even leveraging a cloud provider for Enterprise technology should have a completely different set of lifecycles, governance, funding and skills to Product technology • A lot of on-premise technology should be commodity as it is becoming increasing difficult to compete by having your own data centre infrastructure • A lot of businesses are increasingly becoming global and to be able to provide the same level of service and quality, consistently, is very hard to achieve through an on-premise approach (see the rise of Netflix as an example) • In the past you would have to be a FTSE 100 company to have your own data centre infrastructure • Cloud enables automation, which has enabled the DevOps culture which in turn allows engineering and data teams to deliver value with agility. These characteristics are conducive to product technology, so therefore use of cloud works really well as a strategy in your organisation where you need to innovate, deliver and support your product. Low High HighLow Relative Effort to Implement RelativeBusinessBenefit Cloud sweet spot Incumbent DC Nadir Cloud sweet spot Ideal DC Position
- 8. © The Insights Group Ltd, 2016. All rights reserved. Case Study 1 – Media and Telco
- 9. © The Insights Group Ltd, 2016. All rights reserved. Company Stats: • As a business, over 25 years old now covering UK, Germany and Italy • 23m+ customers at a Group level • Heavy investment in owned data centres across the UK • Hybrid approach, with primary still being on-prem • Acquired by Comcast in 2018 • Content is the key differentiator (Movies and Sports) • Inherently a technology company winning awards for the Sky Q set top box • Relies on proprietary technology but is now moving to greater levels of partnership (Spotify, YouTube and Netflix running on Sky Q) Company Stats: • Cloud native • Lighter infrastructure • Continually moving from region to region • Less costly infrastructure therefore able to direct investment into content to attract and retain customers • Deployed in AWS despite being a head-on competitor of Amazon Prime • 140m+ customers worldwide • Leverages and adopts technology partnerships • Content is also a key differentiator Media and Entertainment Case Study 1
- 10. © The Insights Group Ltd, 2016. All rights reserved. Business Canvas Case Study 1
- 11. © The Insights Group Ltd, 2016. All rights reserved. Business Canvas Case Study 1
- 12. © The Insights Group Ltd, 2016. All rights reserved. Case Study 2 – Retail Banking
- 13. © The Insights Group Ltd, 2016. All rights reserved. Retail Banking Case Study 2 The Incumbents Fintech Challengers
- 14. © The Insights Group Ltd, 2016. All rights reserved. Industry Changes Reducing Risk and Increasing Competition Following the 2008 crash, the UK regulatory bodies are seeking to de-risk the financial system, competition to the big nine banks is key to this and Cloud has been instrumental in unlocking competition
- 15. © The Insights Group Ltd, 2016. All rights reserved. Retail Banking Case Study 2 The Incumbents Fintech Challengers
- 16. © The Insights Group Ltd, 2016. All rights reserved. Retail Banking Higher, Faster, Further… • Cloud native (agnostic of provider) banking platform to drive product • Distributed ledger technology • Smart contracts • Microservice and containerised components • Ex-Google in Origin
- 17. © The Insights Group Ltd, 2016. All rights reserved. Cloudsoft and Insights
- 18. © The Insights Group Ltd, 2016. All rights reserved. Who are Insights? A lifelong learning and development partner
- 19. © The Insights Group Ltd, 2016. All rights reserved. Thoughts: • 25+ years old, family owned, Dundee based learning and development company. Selling their core product, Discovery, to multiple locations across the world • I am shaping and delivering digital transformation, the first initiative is to have a cloud infrastructure to provide a reliable and responsive platform no matter which part of the world our customers are in • Beyond that we wish to leverage cloud to inject pace and flexibility into our product development • Insights is targeting a 5 x increase in its value over the next 3 – 5 years – cloud is a major building block for this • A big part of being digital is to be able to scale and process big data – for a business such as Insights it deals with data at its core, but we need to invest in a cloud provider to enhance and inform the product lifecycle Who are Insights? A global business transforming into a global organisation
- 20. © The Insights Group Ltd, 2016. All rights reserved. Insights Digital Digital Transformation Key Strategic Themes for Insights Digital Customer Providing a digital service to curate content, open up profile usage and allow the customer to make better decisions Platform Build platforms not just products and embrace competitive value chains Innovation The ability to deliver rapidly through experimentation, greater predictability and agility Proposition Supporting the CP community through greater profile freedom and a more flexible subscription model Data Turning data into a strategy asset enabling data-driven decision making and real- time analysis enhancing the customer experience
- 21. © The Insights Group Ltd, 2016. All rights reserved.
Editor's Notes
- #6: Challenge for most businesses is their entry point, large organisations originating 15+ years ago are still managing legacy lifecycle and technology from that era If you were to create your business today, from scratch how would it look?
- #10: Media & Entertainment (you could also consider Telco too linking my Sky experience as both) are inherently tech companies. There is probably an orthodoxy in those sectors which creates a build mentality Think of Media and Entertainment as similar to incumbent banks (the big 9) – been around for a while, had to build their own, entry point into technology different era, large, expensive momentum I know what it was like to work in Media/Telco having spent 7 years at Sky, it wasn’t until I set foot in the outside world that I started to see things differently Built CRM from the Chordiant framework
- #11: Mention the monotlith and cutting the elephant down to smaller parts, the six-week release cycle at Sky
- #12: Talk about how Global companies will threaten your local market, so while Netflix are US based and Sky are UK based, Netflix is increasingly stealing Sky’s market share Cost of innovation is easier
- #15: Perception is that ‘cloud’ is somehow less secure than your own data centre If that is the case then the FCA and other UK regulators are putting a lot of our economy at risk There is maybe an argument that owning your own infrastructure means that you can de-risk mission-critical systems as you have complete control of that environment – however retail banking is increasingly moving to cloud based platforms which is an indicator that mission critical has been achieved with partners such as Amazon, Google and Microsoft
- #20: If Insights attempted to deploy into their own data centres it would be costly and time intensive There is also something to do with your TOM where in-housing your own DC means a significant investment in internal skills Cloud capability has become commodity and not a differentiator for most customers, but is vital to driving pace and efficiencies Smaller to medium size businesses wouldn’t be able to compete without cloud Moving to AWS is key for the above scenario to support resilience world-wide, but the greater prize is to allow Insights to leverage greater capabilities in AWS to allow them to become digitally competitive Insights is at a good fork in the road where there is limited investment in infrastructure resources, leveraging the likes of AWS allows us to outsource and benefit from economies of scale
- #21: Talk about digital architecture, the importance of it and why Cloud plays such a big part of it The need to have an API gateway or layer and an SOA/Microservices approach is key Driving Pace, invest in build where it matters to your brand and product, invest in buy to keep the lights on Cloud enables pace, devops and automation Build vs Buy also lands in a similar space to on-prem vs cloud respectively