To execute your strategy,

first build your foundation

Ross, J. W., Weill, P. & Robertson, D. C., 2006. Enterprise Architecture as Strategy: Creating a
Foundation for Business Execution. Boston, Massachusetts: Harvard Business School Press.
What is cloud computing?

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Public cloud
• Owned by cloud services or hosting
provider.

• Provides resources and services to

multiple organizations and users.

• Accessed via secure network

connection (typically over the
internet).

© Copyright Microsoft Corporation. All rights reserved.

Private cloud

• Organizations create a cloud

environment in their datacenter.

• Organization is responsible for

operating the services they provide.

• Does not provide access to users

outside of the organization.

© Copyright Microsoft Corporation. All rights reserved.

Hybrid cloud

• Combines Public and Private clouds to allow applications to run in the

most appropriate location.

© Copyright Microsoft Corporation. All rights reserved.

Compare CapEx vs. OpEx
Capital Expenditure (CapEx)
 The up-front spending of money on physical infrastructure.
 Costs from CapEx have a value that reduces over time.

Operational Expenditure (OpEx)

 Spend on products and services as needed, pay-as-you-go
 Get billed immediately

© Copyright Microsoft Corporation. All rights reserved.

 Consumption-based model
• Cloud service providers operate on a consumption-based model, which
means that end users only pay for the resources that they use. Whatever
they use is what they pay for.

• Better cost prediction

• Prices for individual resources and services are provided
• Billing is based on actual usage

© Copyright Microsoft Corporation. All rights reserved.

Infrastructure as a Service (IaaS)

• Build pay-as-you-go IT infrastructure by renting servers, virtual machines, storage,

networks, and operating systems from a cloud provider.

© Copyright Microsoft Corporation. All rights reserved.

Platform as a Service (PaaS)
• Provides environment for building, testing, and deploying software applications; without
focusing on managing underlying infrastructure.

© Copyright Microsoft Corporation. All rights reserved.

Software as a Service (SaaS)
Users connect to and use cloud-based apps over the internet: for example, Microsoft
Office 365, email, and calendars.

© Copyright Microsoft Corporation. All rights reserved.

 Cloud service comparison
IaaS PaaS SaaS
The most flexible cloud Focus on application Pay-as-you-go pricing model.
service. development.
You configure and manage Platform management is Users pay for the software
the hardware for your handled by the cloud they use on a subscription
application. provider. model.

© Copyright Microsoft Corporation. All rights reserved.

Shared responsibility model

© Copyright Microsoft Corporation. All rights reserved.

Enterprise architecture (EA), is the way IT systems and processes are structured.

EA is an ongoing process of creating, maintaining, and leveraging IT.

It helps to solve two critical challenges: where an organization is going

and
how it will get there.

Turban, Efraim, Linda Volonino, and Gregory R. Wood. Information technology for management: Digital strategies
for insight, action, and sustainable performance. Wiley Publishing, 2015.
Turban, Efraim, Linda Volonino, and Gregory R. Wood. Information technology for management: Digital strategies
for insight, action, and sustainable performance. Wiley Publishing, 2015.
Full IT Stack
 ARCHITECTURE MATURITY STAGES

100
11 14
90 17 18 Shared data
PERCENTAGE OF IT INVESTMENT

80

70 35
40 35 33
Shared infrastructure
60

50
18
40
21 Enterprise systems
32 34
30

20
36
25
10
16 15 Local applications

0
Business Silos (12%) Standardized Technology (48%) Optimized Core (34%) Business Modularity (6%)

A R C H I T E C T U R E M A T U R I T Y

MIT Sloan Center for Information Systems Research

 Business Silos Standardized Optimized Core Business Modularity
Technology
IT capability Local IT applications Shared technical Countrywide Plug-and-play business
platforms standardized process modules
process or data
Business objectives ROI of local business Reduced IT costs Cost and quality of Speed to market;
initiatives business operations strategic agility
Funding priorities Individual applications Shared infrastructure Enterprise Reusable business
services applications process components
Key management Technology-enabled Design and update of Core enterprise Management of
capability change management standards; funding process definition reusable business
shared services and measurement processes
Who defines Local business leaders IT and business unit Senior IT, business and
applications leaders management and industry leaders
process leaders
Key IT governance Measuring and Establishing Aligning project Defining, sourcing,
issues communicating value local/regional/global priorities with and funding business
responsibilities architecture modules
objectives
Strategic Implications Local/functional IT efficiency Business Strategic agility
optimization operational
efficiency
 PHASES OF MATURITY
0 1 2 3 4 5
Acknowledge Intra-Process Inter-Process
Operational Automation and Automation and Enterprise Valuation Agile Business
Inefficiencies Process Aware Control Control Control Structure
Sophisticated

Compare Integrate
Directly link alternatives activity
process driven by based
model and various accounting
rules to optimization with
execution techniques process
in real-time steps

Identify
Model and Establish
process
analyze process Innovate
owners and
business performance new
MATURITY

governance
processes metrics businesses,
structure
products,
and
Create a services
business through an
Measure and Goal-
Craft process performance agile
monitor driven
automation framework business
business processes
and control that structure
activities dynamically
across the
Re-align
enterprise, links the
Immature

process
customers, valuation of
with
and trading the business
market
partners to process
strategy
execution

Generally, where Company is today 

Source: Gartner