Holistic approach to cloud adoption

HOLISTIC APPROACH TO CLOUD ADOPTION
Tiago Griﬀo (presented in Brisbane) &
Scott Shaw (presented in Sydney)

The world is at an inflection point with public cloud adoption where many of the barriers have been
removed, even in regulated industries. We now have a range of vendors to choose from and ample
technical advice on how to design around each vendor’s offering. However, we still see customers
struggling to get real business value from their cloud adoption efforts. Skyrocketing costs, schedule
delays and skills shortage are pain points that we hear repeatedly. We have found that the most
successful moves to public cloud are those that take a holistic approach. A shift to cloud requires more
than a simple change of infrastructure. Few businesses realise that their move to cloud is actually a
major software investment and that their cloud resources need to be managed as software assets. In
this talk we’ll discuss some of the organisational, operational and technical changes that need to be
made in order to broaden software delivery to encompass defining, creating and operating virtual
hosting environments in the cloud.
2
Abstract

3© ThoughtWorks 2019
AGENDA
● What is the current status of cloud adoption?
● Drivers and pain points
● The well-trodden road to cloud and why it so
often fails to deliver
● An alternative, holistic approach

CLOUD
WHY NOW?
We’re at an inﬂection point
2019
Which path will you take?
Business
beneﬁts of
cloud

What is driving businesses to move workloads to the public cloud?
Why Cloud?

Cost • Agility • Eﬃciency • Assurance
Business Case
“Because I say so”
Edict
Data Centre EOL • M&A • Digital Change • Assurance
Triggering Events
https://plow.net/thought-leadership/cloud-adoption-drivers/
https://cloud.google.com/blog/products/storage-data-transfer/8-common-reasons-why-enterprises-migrate-to-the-cloud

We set out to do some research of our own in Australia...
7
Agility/productivity
Drive cultural- and
mindset change
Cost reduction or
avoidance
Utilising a speciﬁc PAAS
service
Large scale compute
intensive workloads
Experimentation &
innovation
Data centre elimination
Avoid vendor lock-in
Digital transformation
Speed to market
Business model under
threat
Ability to attract talent
To be perceived as
industry leader
Major strategic asset (i.e.
SAP) being replatformed
in the cloud
Desire to better leverage
SaaS solutions
Build a modern digital
business
CAPEX vs OPEX
considerations
Ability to scale without
having to predict capacity
Focus on core business Geographic distribution

And these are the most common
8
Agility/productivity
Drive cultural- and mindset
change
Cost reduction or avoidance
Utilising a speciﬁc PAAS
service
Large scale compute
intensive workloads
Experimentation &
innovation
Data centre elimination
Avoid vendor lock-in
Digital transformation
Speed to market
Business model under
threat
Ability to attract talent
To be perceived as
industry leader
Major strategic asset (i.e.
SAP) being replatformed in
the cloud
Desire to better leverage
SaaS solutions
Build a modern digital
business
CAPEX vs OPEX
considerations
Ability to scale without
having to predict capacity
Focus on core business Geographic distribution

Actually, it’s really hard to know—nobody talks about failures
Are the beneﬁts materialising?

“Information-technology departments need to resist the
pressure to chalk up short-term gains and convince the
business that moving to the cloud is a journey, not ﬂipping a
switch”
- Bill Murphy, CTO, Blackstone Group
https://www.wsj.com/articles/cloud-adoption-is-slowed-by-people-as-much-as-technology-11569014450

"We thought it was Capex versus Opex. We thought
we could save a lot of money and get rid of
managing infrastructure [...] But we were wrong [...]
We kept throwing compute resources and storage
resources at it [...] and that drove up costs.”
https://searchcio.techtarget.com/feature/Cloud-migration-failures-and-how-to-prevent-them

We asked why success was difficult to achieve...
12
We've been migrating for a
while but we haven't
turned anything off yet
We can't get access to
experienced security and
infrastructure people
Our Ways of Working are
holding us back
Lack of breadth and depth
of knowledge in cloud
migration
We've promised cost
savings and it just keeps
getting more expensive
Finding the right level of
governance is challenging
Security fear heightened
risk (we’re increasing our
attack surface)
We're not actually going
any faster in the cloud
We haven't managed to get
many services into
production
Some cloud services are a
lot more immature than
we thought
There is a team building a
cloud platform in isolation
It's hard to measure how
successful cloud adoption
is
Team autonomy leads to a
fractured technology
landscape
We lack the experience to
build and run services in
the cloud effectively
We’re completely locked in
with a single cloud
provider
Everyone keeps
complaining about Shadow
IT
We can’t make our
business case stack up
We’re spending at least
50% of our time on
keeping the lights on
We’re actually splitting Dev
& Ops again
Attracting talent is difficult

And these are the most common
13
We've been migrating for a
while but we haven't turned
anything off yet
We can't get access to
experienced security and
infrastructure people
Our Ways of Working are
holding us back
Lack of breadth and depth
of knowledge in cloud
migration
We've promised cost savings
and it just keeps getting
more expensive
Finding the right level of
governance is challenging
Security fear heightened risk
(we’re increasing our attack
surface)
We're not actually going any
faster in the cloud
We haven't managed to get
many services into
production
Some cloud services are a lot
more immature than we
thought
There is a team building a
cloud platform in isolation
It's hard to measure how
successful cloud adoption is
Team autonomy leads to a
fractured technology
landscape
We lack the experience to
build and run services in
the cloud effectively
We’re completely locked in
with a single cloud provider
Everyone keeps complaining
about Shadow IT
We can’t make our business
case stack up
We’re spending at least
50% of our time on
keeping the lights on
We’re actually splitting Dev &
Ops again
Attracting talent is difficult

The conventional approach isn’t delivering on the promised beneﬁts
The paved road to cloud adoption

etc.
APIs
Security
Infrastructure
15
Engineering

Success requires more than a change in infrastructure
How can they avoid these pitfalls?

Cloud Perspectives
Successful digital businesses have these factors in common
Technical Excellence Organisational
Change
Self-service Platforms Vendor Choice

Cloud is software — Do it right!
TECHNICAL EXCELLENCE

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1. Realistic infrastructure checklist (24
Months!)
2. Open-source, vendor-independent,
code-friendly tools
3. Small, composable, modular units
4. Automated tests!
5. Releases as Git version tags
https://www.ybrikman.com/

Building infrastructure in anticipation of
customer requirements only leads to
waste and miscommunication.
Productive teams deliver thin slices
across the new full stack and industrialise
as they go.
DELIVER IN THIN SLICES
THE NEW FULL STACK
Harvest reusable components as you go
UI
BFF
API
Microservices
Service Mesh
Containers
Container Orchestration
It’s all software.
Build only what you
need to support the
customer experience
Thin Slice

CLOUD-NATIVE
APPLICATIONS:
RESILIENCE OVER
DISASTER RECOVERY
Environments are no longer scarce, they
can be created at destroyed at will. The
onus is now on the developers to design
resilience into the application. Multi-AZ
and multi-region redundancy combined
with elasticity is also DR.
Cloud changes how we think about DR

Putting your business in the cloud is not enough; operating model and culture need to evolve
ORGANISATIONAL CHANGE

“DevOps is a re-org, not a team.
You get to DevOps by merging
the development and operations
processes into a single team
that runs both.”
- Adrian Cockcroft, 2014
23© ThoughtWorks 2019 https://www.iamondemand.com/blog/my-interview-with-adrian-cockcroft-netflix-cloud-pioneer/

IF YOU HAVE A DEVOPS
TEAM
YOU AREN’T DOING
DEVOPS
DevOps is a cultural change
© ThoughtWorks 2019
The whole point of the DevOps movement
was to break down the barriers and
integrate development and operations’
responsibilities into uniﬁed teams, not to
create a new set of specialized skills that is
concentrated into yet another team and
handover point in the process of creating
business value.
Dev DevOps
DevOps

26
Automated Governance
New tools and services take the human out of the loop

Build compliance into the pipeline,
treating it as code and automating your
checks, guaranteeing it is run with every
commit. Everything is traceable, auditable,
identiﬁable and non-repudiable.
HANDS-OFF
COMPLIANCE AS CODE
Cryptographically-veriﬁed software supply
chain

28
Area of concern Traditional Organisation Cloud-first Organisation
Assurance ● Signoff
● Human inspection
● Automation
● Tools
● Cryptographic verification
Provisioning ● File a support ticket
● Wait for environments
● Infrastructure as code
● CI/CD Pipelines
Architecture
governance
● Review
● Signoff
● Tools
● Platforms
● Guardrails
Service management ● Separate team ● You build it you run it
Cost management ● Upfront
● CAPEX
● Hidden
● Metered
● Tagged
● Detailed reporting
Observability ● Logs
● Dashboards
● Alerts
● Event streams
● Analytics
● Visualisation

Infrastructure-led cloud platforms can’t accelerate product performance on their own
SELF-SERVICE, DIGITAL PLATFORMS

CLOUD IS ONLY A
MEANS TO CREATE
HIGH-PERFORMING
ORGANISATIONS
“Cloud continues to be a diﬀerentiator for
elite performers and drives high
performance. “
Product teams need a complete self-service
toolbox

32
Building successful Digital Platforms
Delivery
Infrastructure
Deliver Faster
Build Ecosystems
Customer
Touch Points
APIs
Self-service
Data
Experimentation
Capability
Gain Insights
Increase Conﬁdence
Provide consistent
Experiences
https://www.thoughtworks.com/perspectives/edition4-platform-strategy

The right mix of cloud vendors needs to be a risk-based decision
VENDOR CHOICE

A seemingly simple lambda service...

...becomes much more entangled when you add in
access control and crypto

VENDOR LOCK-IN
HOW MUCH IS
APPROPRIATE?
Vendor entanglement may be OK but it
should be a deliberate decision
Entanglement
Portability ($$$)
Criticality
Long-lived,
core systems
Internal or
temporary
assets
too
expensive
too risky
Justright

“...if avoiding lock-in gives you options, then the cost
of making the switch is the option's strike price: it's
how much you pay to execute the option. The lower
the switching cost you want to achieve, the higher is
the option's value and therefore the price.”
- Gregor Hohpe
39© ThoughtWorks 2019 https://martinfowler.com/articles/oss-lockin.html

Conclusion
Replacing on-premise infrastructure with public cloud is only the ﬁrst step. You also need...
Cloud-native engineering
needs to
generate business value
Technical Excellence
Putting your business in
the cloud is not enough;
operating model and
culture need to evolve
Organisational
Change
Digital platforms need to
be built to support
customer-centric
products or they’re not
worth the investment
Self-service Platforms
The right mix of cloud
vendors needs to be a
risk-based decision
Vendor Choice

LIAUW FENDY lfendy@thoughtworks.com
SCOTT SHAW sshaw@thoughtworks.com
TIAGO GRIFFO tgriﬀo@thoughtworks.com
thoughtworks.com
THANK YOU!

Holistic approach to cloud adoption

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