Basic - Strategy, Govern, and Plan
In this challenge you will learn about the Define Strategy phase from the Cloud Adoption Framework. You will get familiar and understand that there are many reasons and motivations for a cloud adoption, and identifying and understanding them is key in developing an effective cloud adoption plan for the customer. Every customer has different priorities, processes, and organizational structure that need to be evaluated in order to guarantee a successful cloud journey. You will use this information to start designing your business case and the presentation you will be presenting to the customer’s board.
Learning Objectives:
- Document motivations and benefits for moving to the cloud.
- Establish clear business outcomes, by ket stakeholders or decision-makers, that align with your motivations.
- Define your business case by capturing a business justification through a financial model to project business impact.
- This challenge involves documenting motivations, business outcomes, and key stakeholders to clearly articulate and answer “why does the cloud make sense for my business?”.
- Keep in mind that each team will be presenting all information back to the customer’s senior leadership team to justify adopting Azure (Challenge 4). Make this clear with your team from the start.
- Your team should have complete the following items (preferably in order and together but that is up to you):
- Cloud Journey Tracker – understand the customer’s cloud adoption needs through this assessment tool
- Capture key motivations and cloud benefits for adopting the cloud
- Business outcome template spreadsheet – document business outcomes by key stakeholder
- Strategy & Plan template – capture the customer’s business case. (STOP before the “PLAN” section).
- Motivations: Why are we moving to the cloud?
- What business outcomes are associated with transformation journeys?
- Build a Business Justification for Cloud Migration
- Create a financial model for cloud transformation
- The 5Rs for rationalization
- Focus on core differentiating activities, let Microsoft manage the DC infrastructure
- Platform for innovation - can leverage functionality very quickly for new drone services
- DevOps, developers can use IaaC / APIs to make calls on infrastructure and differentiate Contoso further
- Cost variability (in case revenue goes down, cost can also go down - subject to RIs)
- Flexibility (scale up / down as business requires)
- Globally available
- Cloud native functionality
- Cost management / recharging countries / business units
- Compliance & Security: Extended security W/SQL Server 2008; Automate compliance reporting
When building the business case (Strategy and plan template), focus on populating the most important aspects with the information they have. Encourage your team to ask questions, make educated guesses, and document assumptions. The Student Guide document provides additional relevant information from Gartner reports that your team can use to make more accurate assumptions.
Possible assumptions include:
- IT spend is approximately 4.7% of revenue
- Cost can be optimized by 18% using the following measures
- Right-sizing
- Retiring >5% of applications
- Snoozing applications out of business hours
- Leveraging A-HUB
- Leveraging Reserved Instances
- Countries requiring additional measures to meet new global standards fall into the range 5% to 15% in low to high adjustment range
- Revenue will remain consistent in future
- Completed the Cloud Journey Tracker assessment tool
- Determined motivations and cloud benefits according to the customer scenario.
- Completed the Business Outcomes template
- Completed the Strategy and Plan template (stop at the “Plan” heading)
- Documented assumptions