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Is Your Company Ready for Cloud

Is Your Company Ready for Cloud

Choosing the Best Cloud Adoption Strategy for Your Business

Pamela Isom, Kerrie Holley

Jul 2012, Paperback, 384 pages
ISBN13: 9780132599849
ISBN10: 0132599848
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“This book successfully addresses the approach for adopting cloud into organizations (small and large), realizing that every application may not be a fit for a cloud environment. The writer does an excellent job of integrating cloud into the approach for an enterprise architecture and drilling down into how to evaluate cloud in its variety of implementation techniques, along with the benefits and drawbacks of each.”
— Sue Miller-Sylvia, IBM Fellow and Vice President, Application Innovation Services, IBM Global Business Services

Make the Right Cloud Adoption and Deployment Decisions for Your Business

This is the first complete guide to cloud decision making for senior executives in both technology and non-technology roles. IBM® Global Business Services® Executive Architect Pamela K. Isom and IBM Fellow Kerrie Holley present practical business cases, vignettes, and techniques to help you understand when cloud investments make sense and when they don’t. You’ll find decision models that are anchored with practical experiences and lessons to guide your decision making, best practices for leveraging investments you’ve already made, and expert assistance with every aspect of the cloud transition.

Drawing on their extensive experience working with enterprise clients, Isom and Holley show how to integrate both business and technical considerations, set the right priorities, and successfully manage everything from security and performance to governance. Whatever your company’s size, industry, or challenges, this book will help you drive maximum business value from the cloud—on your terms and on your timeline.

Coverage includes

  • Assessing the business value of a cloud adoption strategy based on 10 specific expectations
  • Gaining more value by incorporating cloud into enterprise architecture
  • Implementing cloud when you don’t already have an enterprise architecture
  • Fully understanding the financial implications of cloud-based strategies and technologies
  • Incorporating cloud in environments that have already adopted Service Oriented Architecture (SOA)
  • Selecting components of your cloud portfolio, including elements of larger outsourced or managed solutions
  • Governing cloud as part of your overall organizational landscape
  • Systematically recognizing and mitigating cloud adoption risks, including security, cost, and performance
  • Planning the transition: retiring legacy applications, transforming business processes, and selecting partners
  • Anticipating and guiding the use of cloud business patterns, trends, and technologies

Chapter 1 Business Value of a Cloud Adoption Strategy 1

Ten Expectations of Your Cloud Adoption Strategy 2

1. Create Your Cloud Vision 4

2. Identify Cloud Use Cases 10

3. Drive Business Innovation 12

4. Define Business Outcomes and Projected ROI 13

5. Determine Opportunities for Cloud as a Fifth Utility 15

6. Specify Cloud Ecosystem 17

7. Determine and Publish Stakeholder Involvement 18

8. Develop Metrics 19

9. Define Governance 20

10. Develop Roadmaps 20

Harvesting the Value 21

Summary 22

Endnotes 23

Chapter 2 Business Value of Incorporating Cloud into Your EA 25

Your Integrated Business and IT Strategy 26

Business Benefits of the Convergence 29

Developing Your Enterprise Cloud Adoption Strategy 35

What If You Do Not Use EA? 39

Scenario 1: Effective Business Transformation 40

Scenario 2: Reducing Costs and Redundancies 41

Scenario 3: Validating and Forming Your Enterprise Cloud Adoption Strategy 41

Summary 42

Endnotes 43

Chapter 3 The Life Cycle of Your Enterprise Cloud Adoption Strategy 45

Initial Planning 46

Enterprise Capabilities and Cloud Vision 49

Target Architecture and Cloud Enablers 61

Business Architecture (BA) and Business-Process-as-a-Service (BPaaS) 62

Information Systems and SaaS 68

Technology and Infrastructure, PaaS and IaaS 75

Gap Analysis and Transition Planning 78

Implementation Planning 81

Governance 82

The Significance of Service Oriented Architecture (SOA) 83

Standards 84

Summary 85

Endnotes 88

Chapter 4 Identifying Cloud Candidates 89

Your Cloud Decision Model 90

Top-Down Analysis 91

Bottom-Up Analysis 95

Cloud Discovery Workshop 96

Business Scenario: Cloud Decision Analysis for Distributors, Inc. 97

Summary 100

Endnotes 101

Chapter 5 What About Governance? 103

Governance Is Essential for Cloud 104

An Enterprise Cloud Governance Framework 105

Principles and Policies 106

Organizational Structure 107

Financials 112

Processes 112

Metrics and Tools 115

Establishing Ownership 116

Governing in the Presence of Outsourcing 118

Governing Cloud Service Brokers 120

Governing Innovation 123

Business Scenario: Innovation and Cloud Provider Company 125

Summary 128

Endnotes 130

Chapter 6 Mitigating Risk 133

Cloud Risk Management and Response Strategies 133

Enterprise Adaptation 137

How Do We Select Cloud Providers That Are Conducive to Our Business Strategy? 138

What If We Are Not Equipped to Make Sound Cloud Computing Choices? 142

How Do We Mitigate the Risk of Stakeholder Rejection? 143

Information Privacy and Transparency: Striking the Right Balance 146

Service Level Management (SLM) 149

Performance and Quality of Service 153

Globalization 156

Summary 157

Endnotes 159

Chapter 7 Planning the Transition 161

Relating Transition and Implementation Planning 161

The Business of Cloud 163

Self-Service 165

Speed, Rapid Development, and Service Delivery 165

Flexible Pricing, Pay Per Use 168

Café-Style Services 169

Leaner 169

Practical Experiences and Lessons Learned 171

Proof of Concepts and Pilot Programs 171

Organizational Change 171

Workload Considerations 176

Outsourcing Considerations 177

Buyer and Seller Considerations 178

Test Strategy Considerations 180

Enterprise Cloud Transition Plans and Roadmap Examples 180

Summary 183

Endnotes 184

Chapter 8 Financial Considerations 185

Communicating the Financial Benefits and Implications 186

Managing Your Money 189

Do Opportunity Costs Matter? 195

Cloud Workloads and Business Profitability 195

Key ROI Metrics and Business Agility Indicators 199

Time Value of Money (TVM) and Net Present Value (NPV) 200

Business Scenario: Brand, Inc. 201

Summary 204

Endnotes 205

Epilogue Thinking Beyond the Race 207

Appendix A Augmenting Your Delivery Model with Cloud 243

Appendix B Cloud Case Studies and Common Questions 267

Appendix C More on Cloud Business Trends 299

Glossary 311

Index 331

  • Shows how to optimize cloud adoption by aligning business and IT requirements, pain points, strengths, and inhibitors
  • Includes practical examples that clarify when cloud computing makes sense
  • Shows how to reduce risk and increase ROI by incorporating cloud services into existing enterprise architecture, and identifies architectural refinements to increase the cloud's value

Pamela K. Isom is a Global Principal Consultant at Dell Inc., where she leads very large cloud strategy and next generation data center engagements. On the customer front, Pamela partners to ensure IT transformation success, working with all stakeholders from the CEO to delivery practitioners where her ultimate strength is driving business value with strategy and technology. Prior to Dell, Pamela was executive architect in IBM® Global Business Services® and a chief architect of Complex Cloud Integration and Enterprise Application Delivery in the Application Innovation Services, Interactive Solutions Practice. While at IBM, Pam was a member of the IBM Academy of Technology where she led smarter cities and cloud computing in highly regulated environment initiatives. She also managed the GBS/AIS patent board having filed and received issuance of several patents with the U. S. Patent Attorney’s office.


Pamela is a graduate of Walden University She is an active alumni and plans to teach other students; she is an active member of IEEE, The Society of Women Engineers (SWE), the National Society of Black Engineers (NSBE), The American Legion where she and her husband connect with and support the military and their families, and Pamela is a frequent speaker at global, industrywide conferences. Pamela is a two time recipient of the Black Engineer of the Year Award for Modern Day Technology Leaders and a contributor to numerous publications on Intelligent Enterprise Architecture, Smarter Buildings, and Maximizing the Value of Cloud for Small-Medium-Enterprises, an Open Group Guide; and she is a key contributor to three books: The Greening of IT by John Lamb, SOA 100 Questions Asked and Answered by Kerrie Holley and Ali Arsanjani, and Cloud Computing for Business by The Open Group where she also resided on the editorial board.



Kerrie Holley, IBM Fellow, is the global CTO for application innovation services in IBM’s Global Business Services (GBS). His responsibilities include technical leadership, oversight, and strategy development, consulting, and software architecture for a portfolio of projects around the world. He also provides technical leadership for IBM’s SOA’s and Center of Excellence.

IBM’s CEO in 2006 appointed Kerrie to Fellow, IBM’s highest technical leadership position. It is the highest honor a scientist, engineer, or programmer at IBM (and perhaps in the industry) can achieve. Thomas J. Watson, Jr., as a way to promote creativity among the company’s “most exceptional” technical professionals, founded the Fellows program in 1962. Since 1963, 238 IBM Fellows have been appointed; of these, 77 are active employees. The IBM Technical Community numbers more than 200,000 people, including 560 Distinguished Engineers. IBM Fellows have invented some of the industry’s most useful and profitably applied technologies. Few computer users may realize how much of this group’s innovations have created the computer technology we take for granted.

Kerrie’s expertise centers on software engineering, software architecture, application development, business architecture, technical strategy, enterprise architecture, service-oriented architecture, cloud computing, and cutting-edge network-distributed solutions. Kerrie is an IBM master inventor, and holds several patents. He has a BA in mathematics from DePaul University and a Juris Doctorate degree from DePaul School of Law.

Expert Reviews

“This book successfully addresses the approach for adopting cloud into organizations (small and large), realizing that every application may not be a fit for a cloud environment. The writer does an excellent job of integrating cloud into the approach for an Enterprise Architecture and drilling down into how to evaluate cloud in its variety of implementation techniques, along with the benefits and drawbacks of each.”
—Sue Miller-Sylvia, IBM Fellow and Vice President, Application Innovation Services, IBM Global Business Services

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