Microsoft Cloud Adoption Framework Lifecycle Workshop Overview © Microsoft Corporation. All rights reserved.

Introductions, roles, and responsibilities Microsoft Team Name Title Name Title Name Title Name Title Name Title <CUSTOMERNAME> Team Name Title Name Title Name Title Name Title Name Title

Agenda Introduction Your evolving cloud adoption journey What did Microsoft do? The Microsoft Cloud Adoption Framework Adoption Principles Digital Strategy Planning & Digital Roadmap Execute

CAF Lifecycle Overview Module goals Cloud adoption is a continual process Cloud optimization and innovation The need for a lifecycle strategy Microsoft’s experience and how it can benefit you Overview of Microsoft Cloud Adoption Framework

The realizable benefits of cloud 12/15/2017 7:40 AM The realizable benefits of cloud Innovation Provide the ability to experiment and innovate Low barrier of entry and quick time to market New workloads and uses for IT Iteration speed (fail fast) Efficiency and agility IT accelerating time to value IT as a business enabler IT uncovering opportunities for new workloads IT focused on more than “keep the lights on” or upgrades Cost savings or shift Move from CAPEX or OPEX model Cost of hardware and software Labor for core server and workload-related operations Implementation cost Facilities cost © Microsoft Corporation. All rights reserved.

Cloud adoption without a lifecycle strategy 12/15/2017 7:40 AM Cloud adoption without a lifecycle strategy As with any technology, implementation of cloud without a clear strategy and plan could result in just another technical and cost burden being added to your organization. With a formal lifecycle strategy supporting cloud adoption your organization is better positioned to realize current and future goals © Microsoft Corporation. All rights reserved.

Potential pitfalls from lack of strategy High costs Excessive resource usage, disproportionate architectures, and unwarranted technical and financial overhead. Lack of reuse Cloud properly utilized facilitates SOA. Absence of clear strategy can lead to redundancy of solutions and sprawl. No standards or decision framework Each cloud effort becomes a custom initiative inheriting a costly and lengthy process for modernization. Delayed business outcomes Ultimately your ability to be responsive, innovative, and efficient is compromised and expected value is not realized.

A strategy should address ongoing cloud opportunities and challenges What are our architectural standards? What are our cloud policies? What are the expected benefits and outcomes? How do we measure them? How do we optimize our application design? When should we leverage SaaS vs PaaS and IaaS? How will we decide whether to replace, refactor or leverage cloud for new and existing applications? Where are our opportunities to innovate and differentiate?

Cloud supported by a continuous lifecycle Cloud should be viewed as an ever evolving service necessitating a lifecycle approach of continual innovation and optimization. As an organization you should continuously: Assess and iterate your cloud strategy to support organizations changing priorities, desired outcomes and benefits Optimize your cloud deployment Evaluate and adopt new capabilities as they are made available to you Investigate opportunities to innovate Iterate your strategy Deploy Outcomes & Benefits Analysis Optimize and Innovate Adoption Strategy Decision Framework

What did Microsoft do?

Microsoft’s move to Azure We had the same challenge Business challenge Solution Microsoft IT was tasked with migrating approximately 2,100 line of business (LOB) applications to the Azure cloud platform. These applications are spread across eight datacenters worldwide. The eight datacenters comprise over 40,000 distinct operating system instances.

Microsoft’s IT environment 12/15/2017 7:40 AM Microsoft’s IT environment 9M Skype for business calls per month 28% LOB apps using IaaS/PaaS/SaaS 15B Max security events recorded per day 790+ site locations 217K Managed Windows 10 Systems 274K mailboxes “All of Microsoft runs in the cloud” 270K SharePoint sites 6% IT spend as % of all operating expense 1.2M servers run Windows Server Providing a global workforce with modern, mobile experiences Transforming and personalizing employee experiences Defending against constantly evolving cybersecurity threats 113K Employees 1.9K Managed LOB apps © Microsoft Corporation. All rights reserved.

12/15/2017 7:40 AM Our success Vast majority of Microsoft IT’s LOB apps have moved or are moving to the cloud 90% of Microsoft IT’s 1,100+ production apps meet requirements to move to IaaS or private cloud environments 7% of apps are migrated to the PaaS environment 3% will remain on dedicated hardware 7% 3% 90% © Microsoft Corporation. All rights reserved.

Our experience leveraged for you Microsoft Cloud Adoption Framework World Wide Customer engagements MSIT experience

CAF Adoption Principles

Establish cloud program team First and best Adoption data, lessons learned and showcases Cloud patterns and guidance creation Cloud program team Service capability and improvement Enterprise architecture Cloud analysis, tools, guidance delivery and roadmaps IT divisions Application owners © Microsoft Corporation. All rights reserved.

Program team provides services Outcomes Cloud analysis IT anticipates cloud needs Faster and better decisions on adoption Usage of tools and decision frameworks Analysis cloud capabilities Application tracking Blockers identified, prioritized and removed Accelerate Cloud guidance and architecture Provide knowledge required for adoption Provide mitigation plans for inhibitors Guidance and roadmap creation Guidance rating and usage Training Feedback pipeline Simplify Cloud engagement and reporting Reference cases for cloud services IT actively adjusts efforts based on progress Engagement management Lessons learned Positive adoption Showcase © Microsoft Corporation. All rights reserved.

IT cost considerations IT today: Investment, capacity, and utilization What are your IT Costs: Transparency and accountability What is your IT inventory? Investment – sunk and future People – roles, skills, responsibilities Applications – how many, what kinds, duplicates Infrastructure components – DCS, servers, NWS IT Business groups analysis What application/service do you own? Costs (360 degree view) Vendors supporting? TCO analysis

Hybrid cloud mindset 12/15/2017 7:40 AM New IT reality Implementation Workload placement Hybrid cloud Public cloud off-premises Commodity SaaS (Microsoft Dynamics Online, Office 365, etc) Modern apps PaaS (Windows Azure Database, Web, Worker, etc) IaaS (Windows Azure Virtual Machines) Existing Savings Private cloud on-premises Optimize large/unique workloads for Windows Server 2012 Hyper-V virtual machines Workloads © Microsoft Corporation. All rights reserved.

Activities and associated cloud benefits 12/15/2017 7:40 AM Maximize benefits A simple Rehost (IaaS) of a workload typically provides less benefits than replacing the workload with a cloud offering (SaaS) Activities and associated cloud benefits Decision framework Workload Architecture Financial Risk Operations Security Replace (SaaS) Rebuild (PaaS) Rehost (IaaS) Refactor (Hybrid) Sample evaluation criteria Difficulty High Low Degree of Benefits Strategic Operational Rebuild (PaaS) Replace (SaaS) Rehost (IaaS) © Microsoft Corporation. All rights reserved.

Migration emphasis Opportunistic Top down Bottom up Emphasis on modernizing applications Where should the application live? Paas? IaaS? SaaS? Are there network or workload dependencies? Emphasis on environment rationalization Understand hardware inventory and network topology Are there workload dependencies? Adhere to business compliance requirements Evolve applications to Azure Migrate applications in the course of other projects Convenience and efficiency Strategic / evaluative Tactical / cost-effective On-the-fly / flexible

Workload migration precedence 12/15/2017 7:40 AM Workload migration precedence Framework for evaluating an application for cloud migration Now Next Business factors Not mission critical No regulatory exposure Low-impact content Mission critical Regulatory exposure High-impact content Technical factors Not cross-premises Low monitoring needs Custom app integration Medium database storage Cross-premises High monitoring needs Packaged app integration Large database storage © Microsoft Corporation. All rights reserved.

Workload considerations Business considerations Technical considerations GRC considerations TCO – true cost of workload Redundant Business critical Financial impact Dev Test New Workload architecture OS, Web, and DB platform? CPU, Disk, Memory requirements? Complexity Capacity SLA Compliance Sensitive data Performance Security

Workload migration path New applications Existing applications Re-architect for PaaS or SaaS Investment applications that receive further investment Build application to leverage the modern cloud Use code analysis tools to determine build/ migration cost Commodity applications can run in SaaS Lift and shift Sustain applications that will not receive further investment Can the application run in cloud? On-premise Applications that must stay on-premises Target to run in PaaS or SaaS

Lift and shift (IaaS) migration Cloud Adoption Framework Application analysis IaaS migration plan Cloud Adoption Decision Framework Move application to Azure Hybrid deploy Application remains on-prem On-Prem IaaS (Retain / Retire) Cloud Adoption Decision Framework Identify technical blockers Hard blockers Potential blockers Evaluate servers against blockers Remediate potential blockers Server technical assessment Right sizing  Application dependencies Application roadmap (PaaS / SaaS)  Business factors Remediation

CAF Workshop Phases: Cloud Strategy

Cloud Strategy Planning Execute Lifecycle Roadmap Learnings & Metrics

Cloud Strategy This phase of the CAF workshop is where we refine/define your cloud strategy We break strategy into two parts: Strategic Goals and Specific Outcomes Strategy feeds the living Lifecycle Roadmap Strategic Goals Specific Outcomes Lifecycle Roadmap Feed

Strategic Goals Strategic goals are high level and overarching Should have clear traceability to and support organizational strategy Some example strategic goals Increase cloud returns through automation Gain insights from our data with data insights and machine learning Enhance our enterprise mobility capabilities Connect our LOB assets to IoT services to improve business intelligence Facilitate mergers and acquisitions through cloud adoption Embrace DevOps throughout our people and processes

Specific Outcomes Specific outcomes are quantifiable results Assigned metrics or performance indicators to measure success Map to Strategic Goals Some example specific outcomes Automate process X Close Datacenter by next year Enable disaster recovery for LOB Service X Reduce response time for new apps by X% X% of all workloads shifted to cloud service provider by X The following X workloads shifted to PaaS by next year

Outcome and benefits diagram example Automate key cloud processes Specific Outcome Strategic Goal Key benefits Increase cloud returns through automation Reduce costs Reduce time to value Increase responsiveness Increase efficiency

CAF Workshop Phases: Planning & Lifecyel Roadmap

Cloud Strategy Planning Execute Lifecycle Roadmap Learnings & Metrics

Initiative Discovery (co-creation effort) 12/15/2017 7:40 AM Planning Phase where we turn Cloud Strategy into actionable Lifecycle Roadmap We break planning into two parts: Initiative Discovery and Lifecycle Roadmap Initiative Discovery (co-creation effort) Lifecycle Roadmap (outside of workshop) High level initiative discovery performed at workshop as co-creation effort Formal Roadmap created outside of workshop by MSFT utilizing output from workshop © Microsoft Corporation. All rights reserved.

Initiative discovery Co-creation effort where we will: Define high-level initiatives needed to realize your Cloud Strategy Each initiative should be related to specific outcomes defined by the workshop team Envision a timeline for each project. In an “ideal” world when would like to see this happen? Note: Initiatives are typically more overarching than projects. An initiative could require multiple projects.

ESP Workshop Presentation for Social December 15, 2017 Initiative Example Description Insert description here Envisioned start date Insert start date here Outcomes List outcomes here Associated adoption goals List adoption goals here Priority: HIGH MEDIUM LOW Risk: HIGH MEDIUM LOW Microsoft Corporation

CAF Workshop Phases: Execute

Cloud Strategy Planning Execute Lifecycle Roadmap Learnings & Metrics

Execute This phase is where the cloud program team executes against the Digital Roadmap and initiates Lifecycle Cloud Program Team Adoption data, lessons learned, reference architecture, showcases

CAF Workshop as part of your Lifecycle 12/15/2017 7:40 AM CAF Workshop as part of your Lifecycle CAF Lifecycle workshop should be performed at regular intervals to address new strategies, update Digital Roadmap, & adopt new technologies Organizational Strategy CAF Lifecycle Workshop Digital Strategy Planning Execute Digital Roadmap (Learnings, Metrics, New Capabilities, etc.) © Microsoft Corporation. All rights reserved.

Next Steps

12/15/2017 7:40 AM © Microsoft Corporation. All rights reserved.