Cloud Adoption

Framework for Azure |

Strategy Workshop
Speaker
Title
Workshop objectives
Learn about the Cloud Adoption Framework—and gain understanding about how to succeed
in the cloud

Clarify your motivations for moving to the cloud

Identify your triggers for migration and innovation

Identify the business outcomes and business justifications for your cloud transition

Learning objectives
Document your initial cloud strategy—in a cloud adoption plan

Identify your project based on business outcomes

Identify prioritized workloads for deployment

Microsoft Cloud Adoption Framework
for Azure | Overview
Achieve balance. Deliver modernization.

Control Speed
& Stability & Results

Align—business, people and technology strategy

Achieve—business goals with actionable, efficient, and comprehensive guidance
Deliver—fast results with control and stability
 Plan

An iterative process— Govern Define strategy Manage

supporting your changing
business needs
Adopt Ready
Microsoft Cloud Adoption Framework for Azure
Define strategy
Understand motivations
Financial considerations
Technical considerations
Create a business case
https://aka.ms/adopt/overview
Adopt
Migrate
Plan Ready First workload migration
Digital estate Azure setup guide Expanded scenarios
Best practice validation
Initial organization First landing zone
Process improvements
alignment Expand the landing zone Innovate
Skills readiness plan Best practice validation Innovation guide
Cloud adoption plan Expanded scenarios
Best practice validation
Process improvements
Govern Manage
Methodology Business commitments
Benchmark initial best practice Operations baseline
Governance maturity Operations maturity
Define and document your cloud strategy

Help stakeholders to understand—

your organization's desired business outcomes for cloud adoption

• Motivations • Business outcomes

• Understand motivations for • Engage stakeholders to document
making a move to the cloud your specific business outcomes

• Financial considerations
• Technical considerations
• Investigate the financial considerations around
how the cloud will impact your financial position, • Discover technical considerations around how
accounting KPIs, and processes that Chief cloud adoption will help improve how you
Financial Officers and finance teams need to manage and maintain your cloud and workloads
understand
Identify your cloud adoption path

Assess the current state of your cloud

adoption using the Cloud Journey Tracker

Help to build out your cloud adoption

strategy by completing the
strategy and plan template and
business outcome template
Understanding your motivations
Why are you moving
to the cloud?
Motivations for cloud adoption
Engage stakeholders across business and technology to—
define, document, and understand your motivations for cloud adoption
Critical business events
• Datacenter exit
• Mergers, acquisition or divestiture
• Reductions in capital expenses
• End of support for mission-critical technologies
• Regulatory compliance, data sovereignty requirements
• Reduce disruptions and improve IT stability
• Migration motivations
• Cost savings
• Reduction in vendor or technical complexity
• Optimization of internal operations
• Increase business agility
• Prepare for new technical capabilities
• Scale to meet market demands
• Scale to meet geographic demands
• Innovation motivations
• Prepare for new technical capabilities
• Build new technical capabilities
• Scale to meet market demands
• Scale to meet geographic demands
• Improve customer experiences / engagements
• Transform products or services
• Disrupt the market with new products or services
Define and document your motivations—for moving to the cloud
What motivations are relevant to your cloud effort?

Critical business events Migration Innovation

Datacenter exit Cost savings Preparation for new technical capabilities

Mergers, acquisition or divestiture Reduction in vendor or technical complexity Building new technical capabilities

Reductions in capital expenses Optimization of internal operations Scaling to meet market demands

End of support for mission-critical technologies Increase in business agility Scaling to meet geographic demands

Response to regulatory compliance changes Preparation for new technical capabilities Improved customer experiences and engagements

New data sovereignty requirements Scaling to meet market demands Transformation of products or services

Reduction of disruptions and improvement of IT Scaling to meet geographic demands Market disruption with new products or services
stability
Integration of a complex IT portfolio Democratization and/or self-service environments
Reduce carbon footprint

Prioritize and assess potential impacts of your motivations

Your motivations for cloud adoption are complex—
now let’s classify them

• Your motivations for cloud adoption may fall in multiple categories

• Trends will likely emerge in building your list of motivations

• Motivations are often linked more closely to one classification than to others

• Help guide the development of your cloud adoption strategy—

using the main classification of your motivations
Understand your strategies and business outcomes—
driven by migration motivations

Migration motivations like increasing cost savings or optimizing internal operations are among the
most common, but not necessarily the most significant drivers for cloud adoption
Reducing vendor or technical complexity, for example—is important to achieve, but most effectively
used to transition to other, more useful worldviews on the cloud adoption journey: cloud migration

Strategies driven by migration motivations produce successful business outcomes:

• Increasing cost savings. Read the customer story.
• Reducing vendor or technical complexity
• Optimizing internal operations
• Increasing business agility. Read the customer story.
• Preparing for new technical capabilities
• Scaling to market demand
• Scaling to geographic demand. Read the customer story.
Understand your strategies and business outcomes—
driven by innovation motivations

Transformative products and services are built on top of data, insights, and customer experiences
Modern applications are driving this data across innovative customer experiences

Strategies driven by innovation motivations produce successful business outcomes:

• Increasing business agility
• Preparing for new technical capabilities
• Building new technical capabilities. Read the customer story.
• Scaling to market demand
• Scaling to geographic demand
• Improving customer experience and engagement. Read the customer story.
• Transforming products or services
Identifying your business outcomes
Identify business outcomes
Engage stakeholders and discuss your desired outcomes

Define your organization's business outcomes—

to support transparency and develop cross-functional partnerships

Adopt cloud economics best practices to optimize your cloud investment

Plan conversations with various personas on business outcomes to trigger discussion on:
• Finance leadership
• Marketing
• Sales
• Human resources
• Executive leadership
Review business outcomes by category—define your organization's outcomes
Complete the business document template to identify your business outcomes
Define and document your
business outcomes
Complete the How master discoverers work…
business document template
Stakeholders

Who will see the greatest value in the success of

this transformation? 
Business
What are your business drivers and objectives? Capabilities
outcomes
What are your KPIs?
How will technical capabilities accelerate the
success of the business outcome?

Business
KPIs
drivers
Understanding cloud economics
Cloud economics overview

Cloud economics—provides detailed

technical and financial guidance from
Azure experts—helping you to
understand your cloud investment

Save time, budget, and resources—and

maximize the benefits from your investment
as you chart your cloud journey

Learn more
https://www.azure.com/cloudeconomics
Core benefits—cloud adoption
Every customer consumes
the cloud differently, but—
there are substantial
benefits common to all
cloud adoption efforts
Technical benefits Scalability
Elasticity and on-demand
are a huge shift Availability
Improving how you
manage, maintain and Security and compliance
pay for your cloud
Capacity optimization
Financial benefits OPEX pricing models
Cloud = flexibility
Reduced datacenter footprint
Getting more out of
what you pay for +
moving away from fixed Staff productivity
and upfront spend
Sustainability
 OPEX pricing models

Reduced datacenter footprint

Financial considerations
Staff productivity

Sustainability
Unlock your financial value—in the cloud
Digital transformation accompanies financial transformation

When moving to the cloud, it is important to understand how Azure will impact:

Financial position Accounting KPI Processes

How does cloud pricing work?
On-premises spend results in a fixed cost structure

On-premises Cloud On-prem

On-premises IT costs
are often upfront
and require initial capital
investment
Regardless of underlying
demand, you're committed
to your initial fixed capacity
Because of your growth
expectations, you must
pre-buy for expected
demand and growth
capacity
Cloud costs allow you to
benefit from a variable cost IT demand
model
Elastic workloads can spin up
pay-for-what you use PAYG + Spot VMs
For more fixed workloads,
cloud also has reserved Reserved capacity
instance pricing to take
advantage of lower price
points for static workloads Year 1 Year 2 Year 3 Year 4 Year 5
Cloud shifts how you pay for capacity

Shift from CAPEX to OPEX

Enables improvements in financial statements—with improved cash flow
timing and reduced need to acquire assets resulting in a fixed cost structure

Drives shift in budgets Cloud provides more EBITDA, a financial KPI, is

from “capital” budgets to predictability and better also impacted from the
“running” expense budgets cash flow timing CAPEX to OPEX shift
Cloud optimizations enable—
reductions in your datacenter footprint

On-premises data centers are frequently Network

overbuilt for peaks, causing excess Headcount

capacity and excess spend

Power
Optimization
Acquiring on-premises datacenter and Empty2 MW
opportunity
server capacity has a significant lead-time
Building
Customers frequently invest significantly
in advance of underlying demand,
resulting in under-utilized capacity Idle time
Utilized 70%
Server 3 MW

Utilized
time 30%

On-premises Data center Server MW = Megawatts

cost capacity capacity
Case study

Tenthline secured a modern financial services infrastructure

on open-source stack on Azure. The new service modernizes
a key business platform, helping Tenthline’s customers
reduce their datacenter footprint.

"Azure met our stringent security and compliance

requirements, enabling us to decommission unneeded
datacenters and focus on what we do best—serve our
customers."

—Zahid Mahmood: President and CEO

Key result:
Modernized a key business platform—
helping customers reduce their datacenter footprint
Increased productivity and service delivery Develop
People. Process. Products.

DevOps unites people, process, and products—

enabling continuous delivery of value to end users Plan & track Build & test

High-performance DevOps strategies achieve—

Continuous
46X deployment frequency
delivery
Faster time to market
7X lower change failure rate
Monitor & learn Deploy
2,555X faster lead time for changes
Increased revenue
2,604X faster mean time to recover
Operate
Source: 2018 Accelerate: State of DevOps: Strategies for a New Economy." N. Forsgren, J. Humble, G. Kim. DevOps Research and Assessment (DORA)
Microsoft’s sustainability journey—takeaways

Migrating to the cloud Carbon tax funded innovation Smart buildings reduce energy
reduces carbon emissions and drove the right behavior consumption by as much as 20%

Smart water approaches Remote work accelerates

reduce water usage carbon reductions
 Scalability

Availability

Technical considerations
Security and compliance

Capacity optimization
Basic differences between on-premises and cloud

On-premises Cloud

You buy servers typically Cloud shifts model towards dynamic allocation of capacity
for worst case, highest
levels of usage IaaS PaaS SaaS
Virtual machines Containerization and Shifts on-premises
workload portability infrastructure to direct SaaS
Storage offerings – offerings (O365 or other
managed disks, blob Databases
cloud SaaS offerings)
storage
Analytics
How your current workloads translate to the cloud

Spin up or deprovision resources to build your budgetary allocation

Deploy and deprovision quickly—fail fast
Leverage modular components across multiple applications

Further optimize your investment with cloud billing models and offers
• Azure Hybrid Benefit
• Azure Dedicated Host
• Azure Reservations
• Azure spot pricing
Scalability and time to deploy in the cloud significantly improve

Traditional IT Cloud-supported

Weeks/months to Minutes/hours to provision

Time to provision provision resources resources via self-service access

Hardware usage 1 CPU for 100 hours 100 CPUs for 1 hour

Location Location-dependent Accessible everywhere

Case study

Global pharmacy retail giant Walgreens Boots Alliance (WBA) is on a digital

transformation journey that involves moving the company’s massive
100-terabyte SAP landscape to the cloud. After thorough planning with
Microsoft and WBA’s implementation partners, the SAP migration to Azure
went smoothly in less than a day.

"One of the key reasons for moving to Azure was so that we could take
advantage of the scalability that SAP HANA is capable of. …Instead of using
extremely big SAP HANA Large Instances, we can start using smaller VMs
and then scale out. That’s a big advantage of Azure."

—Dan Regalado: VP of Global Tech Transformation and

Strategic Partnerships

Key result: SAP migration to Azure went smoothly in less than a day. WBA
now enjoys improved performance and data centralization that also helps
the company provide better customer service.
Security insights at extreme scale— Shared threat
data from
Microsoft Intelligent Security Graph OneDrive
partners,
researchers, and
law enforcement
Outlook 5B worldwide
threats
detected on
devices every
month
400B
emails 6.5B
analyzed threat signals
analyzed daily 200+ Botnet data
global cloud consumer from Microsoft
Azure Digital Crimes
and commercial Windows
services Unit

Microsoft
accounts
Enterprise security Bing
18B+
90% 1B+

Technical benefits
for of Bing web
Fortune 500 Azure user pages 450B
accounts scanned monthly
Xbox Live authentications

Unique insights, informed by trillions of signals

Optimize your capacity usage—in a cloud-native environment

100% on-premises capacity

Unused capacity
Right sizing/elimination
Extra usage (rarely, if ever used)
Immediate savings
70% peak utilization

Fluctuations over base workloads

Seasonal patterns or occasional bursts
Hourly pricing for the hours or
Pay-as-you-go
days needed

Base workloads 30% avg. utilization

Steady state
(typically covers all day, everyday use)
Reserved instances
Use reserved instances
0%
End-to-end aim of cloud =
doing more in your on-premises or cloud environment
Implementation

Private cloud:
Public cloud: off-premises
on-premises

Workloads Existing Modern apps Commodity

Monetize existing gear IaaS PaaS SaaS

Retaining non-end-of-life or
under-depreciated gear Azure Virtual Machines, Azure App Service, Dynamics, Office, Power BI,
Azure VMware Solution, Azure Kubernetes Service, etc.
etc. etc.

Achieve more with every dollar invested

Creating your business case
Consider your business case
What are the key components of a business case?

Environment scope (technical and financial)

Baseline financial data: cost to run today

Projections: on-premises costs in on-prem scenario

Projections: on-premises costs in Azure scenario

Projections: migration timeline and Azure costs (optimized)

Make your move to the cloud—
reduce your spend over-time and create a cloud migration plan

100% 10%

Network
Headcount On-premises On-premises

Power
Income statement

Building

On-premises op-
erating costs
(server depreciation,
Server
datacenter costs, li-
censes, management,
etc.)

On-premises cost Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Identify on-premises workloads and cost structure—
build out your optimized Azure consumption plan

On-premises Azure On-premises

On-prem
OPEX
Cash flow

Microsoft Azure costs

Invest- Status
Migra-
ments $95M
Quo
Capex tion
$63M
Azure Transformation Value

$63M Azure
Azure
Costs Case
Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Assess one-time items—
compare with on-premises scenario

Microsoft Status quo (on-

premises)
investments Status quo
(on-premises)

Azure transformation
Azure Transformationvalue
Value
Migration
Azure case
Cash flow

On-prem
OPEX
Microsoft
Invest- Azure costs
Status
Migra-
ments $95M
Quo
tion
Capex $63M
Azure Transformation Value
P&L

$63M Azure
Azure
Case
Y0 Y1 Y2 Y3 Y4 Y5 Costs Y6 Y7 Y8 Y9 Y10

Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Cloud billing models differ from on-premises
but enable significant savings benefits for customers

Azure Azure Azure Dev/Test pricing Azure Spot

Hybrid Benefit reservations & Azure DevTest Labs Virtual Machines

A licensing benefit that helps Save up to 72%3 Quickly provision and Scale compute at deep
you to significantly reduce compared to pay as deploy. Discounted rates discounts, up to 90% vs.
the costs of running your you go pricing on popular services4 pay as you go pricing5
workloads in the cloud

(1) https://azure.microsoft.com/en-us/pricing/hybrid-benefit/
(2) https://azure.microsoft.com/en-us/reservations/ (For SLES and REHL)
(3) https://azure.microsoft.com/en-us/reservations/ 
(4) https://azure.microsoft.com/en-us/pricing/dev-test/
(5) https://azure.microsoft.com/en-us/pricing/spot/#overview
(6) https://visualstudio.microsoft.com/vs/pricing-details/
 Reduced on-premises asset acquisition

Initial clean-up, right-sizing, and optimization

Continuously focus
on optimization— Continuous cost optimization

when implementing
Resource tagging and spend categorization
a business case
Taking advantage of cloud-native billing models

Azure Hybrid Benefit

Microsoft provides you solutions—
helping you continuously optimize your cloud environment

Understand and Cost-optimize workloads Control costs

forecast costs
Monitor your bill, set budgets,
and allocate spending to teams
and projects with Azure Cost
Management + Billing
Optimize your resources and
architecture with Azure best
practices from Azure Advisor
and the Microsoft Azure
Well-Architected Framework
Save with Azure offers and
licensing terms like the Azure
Hybrid Benefit and
Azure reservations for your
Windows and Linux workloads
Establish spending objectives
and policies with guidance
from the Microsoft Cloud
Adoption Framework for Azure
Implement cost controls with
Azure Policy so your teams can
go fast while complying with
policy
Workshop
Workshop objectives
Learn about the Cloud Adoption Framework—and gain understanding about how to succeed
in the cloud

Clarify your motivations for moving to the cloud

Identify your triggers for migration and innovation

Identify the business outcomes and business justifications for your cloud transition

Learning objectives
Document your initial cloud strategy—in a cloud adoption plan

Identify your project based on business outcomes

Identify prioritized workloads for deployment

Workshop Lab A
Define your strategy together—using the Strategy and plan template

Engage business leaders and stakeholders in outcome-focused discussions

Document decisions—and execute your cloud adoption strategy and plan
 What are your expectations from your move to the cloud?
 What applications and databases are you moving to the cloud?
 Have you prioritized certain kinds of workloads for migration?
 How has your transition to the cloud changed your organization?
 What are your short, medium, and long-term objectives?
 Are you thinking about a hybrid and multicloud implementation?
 What criteria outline where your apps and data will reside?
 What kinds of business risks have you identified?
Workshop Lab B
Define your business case for cloud adoption

Key components:
• Identify your environment, technical and financial scope
• Baseline your financial data, find the cost to run your environment today

Common questions:
• How much does it cost to run your environment today?
• What am I spending on servers in an average year?
• What am I spending in my data center operations categories, for example, power or lease costs?
• When is the next hardware refresh?
Tools

Retail Rates Azure Total Cost o Azure Pricing

Prices API f Ownership (TCO) Calculator
Calculator
Next steps

Take the Cloud Journey Tracker Build your

assessment & identify your cloud adoption plan
cloud adoption needs

Deploy your cloud adoption plan Choose your

with Azure DevOps landing zone
Thank you!

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