9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture

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9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
9 FORCES
SHAPING CLOUD
MANAGEMENT
IN 2019
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
CONTENTS
INTRODUCTION

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY

FORCE #4: MULTI IS THE NEW CLOUD REALITY

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE

FORCE #6: NATIVE VS. NICHE

FORCE #7: SECURE FROM START

FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT)

FORCE #9: GAME OVER. LET THE GAMES BEGIN.

                                                                         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 2
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
THE RATE AND PACE
OF CLOUD ADOPTION
IS ACCELERATING
ACROSS REGIONS
AND INDUSTRIES.
WE SEE SPEED. AND COMPLEXITY. AND GREATER RISK.
Making the right decision is a make-or-break proposition for most organizations,   That’s why we’ve gathered our leading cloud experts to compile this eBook. Our
but with expanding choice comes greater risk of failure. Those confused about      goal was to highlight how recent trends in cloud computing impact the job of the
cloud computing and where it’s going aren’t alone.                                 CIO in guiding a company’s successful journey. The eBook is based on not only

                                                                                   our extensive work helping companies migrate and run their businesses in the

                                                                                   cloud, but also on Accenture’s own transformation into a cloud-first business.

                                                                                           COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 3
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
FORCE #1                                                 FORCE #2                                                              FORCE #3
CAPEX                                                    PRIVATE CLOUD                                                         CLOUD TIPPING
INVESTMENTS                                              FINDS ITS                                                             POINT FORCES
SECURE THE                                               SPECIALTY                                                             IT TO RUN
HYPER 3 WINNERS                                                                                                                DIFFERENTLY
                                                         There’s much uncertainty in the market about what

Together, Amazon, Microsoft and Google–the               defines a true private cloud—and when a company                       Many enterprises are now moving toward a tipping

Hyper 3–have invested more than $30 billion in           might need one. Successful private clouds are now                     point, where a substantial amount of their workload

capital expense just this past year to build and         defined around solving a specific use case, such as                   is in the public cloud. Unfortunately, most IT

scale their global cloud footprint. This substantial     conforming to data sovereignty needs or supporting                    organizations mistakenly treat the new estate as
investment is not just for building infrastructure       edge use cases. If the goal is agility, cost reduction                just another data center and don’t see the need to

and facilities. The Hyper 3 are also investing heavily   or speed, choices skew public. If, for whatever                       shift their operating model to the realities of cloud

in innovative new services and capabilities that         reason, an organization feels on-premises better                      management. In actuality, operating in the cloud

pale in comparison to legacy approaches—leaving          fits its needs, options exist but require additional                  drives a need for a new cloud-based operating

companies scrambling to keep up. Alignment of            considerations—and all decisions have time, risk, cost                model, and, along with it, people with new skills and

enterprise IT investment with any or all of the          and talent ramifications.                                             new roles.

Hyper 3 means an organization will remain

competitive in the coming years, managing down

technical debt and decoupling from the past.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING                                                    COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 4
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
FORCE #4                                                FORCE #5                                                             FORCE #6
MULTI IS THE NEW                                        CLOUD                                                                NATIVE VS. NICHE
CLOUD REALITY                                           MANAGEMENT
                                                        EMERGES AS                                                           Organizations are faced with the tricky decisions

The steady adoption of cloud services has created
                                                        THE NEXT BIG                                                         of how, when and where to use niche tools versus

a complex computing environment for many

companies. Some are in the position to plan for a
                                                        CHALLENGE                                                            native tools that may sit on top of native providers.

                                                                                                                             Teams must understand where the capabilities of

multi-cloud environment, while a significant number                                                                          native consoles start and stop, and derive a strategy
                                                        In the messy real world of hybrid and multi-cloud
of others simply find themselves using multiple                                                                              and plan for how their organization will function
                                                        environments, cloud management has become
vendors without proper planning, governance or                                                                               across multiple clouds. Organizations also need to
                                                        very complicated. Each cloud provider may offer a
controls. From a cloud management perspective,                                                                               understand their comfort zone and risk profile—
                                                        dashboard to manage its environment, but achieving
this new reality makes it difficult for organizations                                                                        recognizing that many niche providers likely won’t
                                                        a unified view across a hybrid IT and public cloud
to publish policy, manage costs, maintain security,                                                                          be around for the long haul.
                                                        estate is no small feat. No two cloud providers
ensure compliance or even create a single view
                                                        expose the same billing or management APIs,
showing all cloud resources.
                                                        and no single tool can handle all of an enterprise’s

                                                        management needs.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING                                                  COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 5
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
FORCE #7                                                   FORCE #8                                                            FORCE #9
SECURE                                                     CLOUD’S PACE                                                        GAME OVER.
FROM START                                                 OF INNOVATION                                                       LET THE
                                                           DRIVES FEAR OF                                                      GAMES BEGIN.
Most CIOs have come to realize public clouds are
                                                           MISSING OUT
more secure than their own facilities. The critical

difference, though, is that threat vectors in the
                                                           (FOMO)                                                              We’re still early in the maturation cycle of cloud.

                                                                                                                               Niche vendors are many but are fodder for
cloud have changed. The actions of individuals                                                                                 acquisition. When that happens, the game changes.
                                                           The rate and pace of innovation in the public
can now have a dramatic and immediate impact on                                                                                A tool that was once multi-cloud aligned may
                                                           cloud are unprecedented, and skilled people in
security and place a significant burden on the CIO to                                                                          become isolated or pivot in some new direction. And
                                                           the organization don’t want to miss out and will be
maintain a compliant environment. Building security                                                                            as the Hyper 3 consolidate, competitive intensity
                                                           eager to try every new feature. But the enterprise
into its cloud infrastructure from the start is critical                                                                       grows. The game is not constant. Organizations
                                                           can’t enjoy the level of innovation coming from
to a company’s ability to take advantage of the new                                                                            that align with the Hyper 3 will benefit from greater
                                                           each of the Hyper 3 if it needs to vet every new
services cloud providers roll out each year while                                                                              innovation at continually lower costs. But when
                                                           service. Organizations need an agile policy to make
minimizing potential threats and disruptions.                                                                                  betting on niche vendors to help them manage all
                                                           new services available immediately, while creating

                                                           discovery mechanisms and guard rails to                             or part of their multi-cloud presence, companies

                                                           understand where, when and how people are                           need to be aware that the long-term viability of their

                                                           using which services.                                               investment is not guaranteed.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING                                                    COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 6
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
THE CLOUD CLEARLY IS FAST
BECOMING AN INDISPENSABLE PART
OF TODAY’S BUSINESS—BUT IT’S
ALSO GETTING MORE COMPLEX AND
DIFFICULT TO MANAGE AS COMPANIES’
CLOUD PRESENCE GROWS.
                                               Companies that understand how to use the cloud and get the most from it will
                                               continue to have a big advantage over those that don’t, and that gap will only

                                               widen over time. The fact is, multi-cloud is here to stay, and companies need a

                                               comprehensive approach across operating models, tooling and skills to manage risk

                                               and drive success.

                                               We hope this eBook offers some clarity to organizations and their leaders about

                                               current market trends that are driving change and innovation in the enterprise—both

                                               today and beyond—and, even more important, provides some useful insights to

                                               consider when planning for the future.

INTRODUCTION: CLOUD ADOPTION IS ACCELERATING            COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 7
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
FORCE #1:

CAPEX
INVESTMENTS
SECURE THE
HYPER 3
WINNERS
By Michael Liebow, Global Managing Director, Accenture Cloud

Over the past five years, there’s been an undeniable surge in cloud usage, with

companies migrating a growing number of their workloads to the cloud. One

study has found that 93 percent of companies have moved at least some of

their processes to the cloud, and 56 percent have moved or expect to move all

of them.1 We expect this momentum to only accelerate. But, there are still many

companies that are reluctant to embrace the cloud at scale and, as a result, are

in danger of being left behind.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS                             COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 8
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
Remember in Alice in Wonderland, when the White Rabbit
looked at his watch and proclaimed, “I’m late, I’m late,”
followed by, “The hurrier I go, the behinder I get?” In an odd
sort of way, these quotes describe the state of reluctant
companies’ move to the cloud.
THE PACE OF CLOUD-RELATED CHANGE AND INNOVATION IS REMARKABLE
AND ONLY ACCELERATING.
According to one study, operator and vendor revenues for 2018 across seven key cloud services and infrastructure

market segments exceeded $250 billion, representing 32 percent growth over the previous year.2 New cloud

vendors continually arrive on the scene, and new cloud services and solutions are introduced by the thousands

every year. Yet companies that continue to put off a large-scale move to the cloud now have a big problem. The

longer they wait, the further they fall behind competitors that are embracing the cloud and its massive potential.

WHY ARE THEY HESITATING?
Myriad factors are at play. There’s the technical debt these companies have been saddled with for years that’s

difficult to write off. There’s the lack of people with strong cloud skills. And then there’s the age-old obstacle of

reluctance to change and fear of risk: Companies are comfortable with what and whom they know.

Think about it. The very skills, processes, tools and vendors that an organization knows, and perhaps loves (or loves to

hate), are the very same legacy elements preventing these companies from moving on to something new: the cloud.

These are all valid issues. But they shouldn’t be an excuse for not moving to the cloud. In fact, despite the

pockets of legacy supporters within these companies, moving an IT estate to the cloud is no longer a choice.

It’s a do-or-die imperative simply to remain competitive, let alone to keep pace with business needs.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS                                                     COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 9
9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
Then the question becomes, which cloud provider should a
company choose?

It’s not an easy decision.
THREE CHOICES TO REDUCE UNCERTAINTY AND RISK                                                So, which one should a company pick? In reality, which of the Hyper 3 a company

                                                                                            chooses for its cloud transformation isn’t the question—just as long as the company
The cloud provider market is dominated by three vendors: Amazon, Microsoft and              actually does it; taking the step is what matters most. Each company offers access to
Google—or, as the market calls them, the Hyper 3. Each of these behemoths is                unprecedented innovation and scale, and the stability and certainty that comes with
investing about $1 billion a month in capital expenditure (CapEx) to build and scale        them. That said, a few factors may swing the decision in favor of one over the others.
its global footprint.3 Alibaba is a distant fourth, although one could argue that its low

costs effectively narrow the gap. The others that follow are smaller or more niche          For instance, if a company is concerned about vendor risk or pace of innovation,

cloud providers that will never be big players simply because they aren’t making the        Amazon—with a commanding 70 percent share and history of innovation—is the

same level of investment the Hyper 3 are.                                                   clear choice. However, a company in an industry like retailing may perceive a vote for

                                                                                            AWS as aiding and abetting a competitor, which might narrow the choice. Perhaps
The extent of the Hyper 3’s investment enables the group to develop and roll out            a company already has strong ties to Microsoft in the form of prior investments
new capabilities and services at a pace no other provider—or, for that matter, no           in products like Office 365 and SQL Server. Or, maybe a company is looking to
corporate IT organization—could match (Amazon alone launched 1,700 new services             create new, data-rich workloads at a lower cost but with attractive performance. In
in the past year). This means the Hyper 3 are setting, and continually raising, the         this case, Google’s technology leadership and simpler cost model might be most
bar for what the cloud can do—and that’s a win for any company that wants as little         attractive. Google’s technology extends to its robust network, which might sway a
uncertainty and risk, and as much potential upside, as possible.                            company looking for near-zero latency in its applications.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS                                             COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 10
THE POINT IS,
when it comes to stability,
security and innovation, all
three options hit the mark.
Best practices suggest that
an organization qualify at
least two vendors to further
moderate risk and comply
with internal policies.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS   COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 11
FOCUS ON OUTCOMES AND EXPERIMENTATION
                                                                                          Freedom to experiment is
                                                                                          critical to finding innovative
To truly benefit from its choice—i.e., capitalize on all of the innovation coming from

the Hyper 3—a company needs to make sure its cloud strategy is aligned with a

specific business outcome. The objective may be to cut technology costs by a third,       ways to use the Hyper 3’s
accelerate innovation or penetrate new markets—whatever the goal, it and its related
                                                                                          services to add business
                                                                                          value—and to staying ahead
metrics should be explicitly tied to the use of the cloud.

A company also needs to give users the freedom to experiment. After all, what’s
                                                                                          of competitors. There’s
                                                                                          little value in using these
the use of all of the new services and capabilities the Hyper 3 provide if a company

doesn’t take the time to figure out how to use them and where they could

generate significant business benefits? (We discuss this in more detail in Force #8.)     providers if you aren’t using
Consuming all of this new functionality means moving away from the traditional

Information Technology Infrastructure Library (ITIL) and six-month approval cycles—
                                                                                          the new services.
taking months to vet a new capability before allowing users access won’t cut it in the

cloud. Instead, a company needs policies that clearly govern the use of new features

and functions in a way that gives users the latitude to tinker while also enabling them
to monitor what they’re doing.

For instance, a company could allow users to test new functions as they’re available

but restrict how and when the functions move into production. Or, a company could

narrow down the new services to only those relevant to that particular company,

thereby avoiding spending manpower and resources on things that don’t matter to

the business.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS                                      COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 12
IT’S NOW
                                                         Despite all of the promise the cloud offers, some companies still stubbornly stick

                                                         with the status quo. That could be a costly mistake in more ways than one. If these

TIME FOR
                                                         companies insist on staying with legacy technology providers, they’ll only continue

                                                         to add to their technical debt—all while the Hyper 3 steadily drive the cost of

                                                         compute, storage and network toward zero.

EVERYONE
                                                         At the end of the day, the choice comes down to disrupting the competition and an

                                                         industry, or being disrupted by a clever upstart. It’s entirely a company’s call. Now is

TO MOVE
                                                         the time for all companies to choose, and we hope, pick the former. Every company

                                                         needs to avoid continuing down the legacy rabbit hole by knowing where to go and

                                                         helping the rest of the organization to get on board with whichever of the Hyper 3 it

                                                         thinks best suits the them. Opportunity awaits, but only for those that move forward
                                                         with speed and focus.

FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS          COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 13
FORCE #2:

                                              PRIVATE
                                              CLOUD
                                              FINDS ITS
                                              SPECIALTY

                                              Michael Rutherford, Cloud Product Management Sr. Manager,
                                              Accenture Cloud

                                              By now, companies have a pretty good handle on what public cloud is. And

                                              on-premise data centers certainly need no introduction. But between those two

                                              ends of the computing spectrum lies a grey area where confusion reigns: the

                                              private cloud.

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 14
WHAT IS A
                                              PRIVATE
                                              CLOUD?
                                              At a high level, a private cloud is defined as computing services offered over a

                                              network—either a private, internal one or the internet—that often incorporate

                                              some type of on-premises component, and that are dedicated to only select

                                              users (typically, a single client or company). But there’s a lot of room for

                                              ambiguity in this definition, and that’s where companies get hung up.

                                              The fact is, it’s quite easy to misunderstand the term “private cloud.” Private

                                              cloud is not just virtualized hosting, nor is it a collection of static virtual

                                              machines. To qualify as a private cloud, the virtual hosting infrastructure needs

                                              to be dynamic. It provides a standard service catalog through which clients

                                              order and consume capacity on an as-needed basis, leverages a governance

                                              structure to control roles and responsibilities, manages a constrained capacity

                                              pool for dynamic workloads and bills consumers according to their usage.

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 15
WHEN DOES PRIVATE CLOUD MAKE SENSE?                                                     significant latency and connectivity requirements. In fact, private cloud is starting

Despite the growing popularity of the public cloud, private clouds still have a place   to play a bigger role in edge computing applications, where data processing and

in many organizations. In fact, although public cloud spending is still growing more    analysis are increasingly being pushed out to where data is collected. For instance:

rapidly, the $100 billion spent in 2018 on cloud hardware and software was about
                                                                                        A cruise ship can connect to the internet when in its home port to download
evenly split between public and private clouds.4
                                                                                        software updates and passenger manifests from the public cloud, then run

The public cloud excels at running transient workloads (e.g., scheduled production      disconnected for its seven-day cruise. With a private cloud aboard the ship, the

runs and ad hoc development and testing), seasonal workloads (e.g., course              crew can run analytics on this data and other data captured while at sea to get more

registrations at schools or e-commerce surges for retailers during the holidays), and   insights into guests’ preferences and tailor services accordingly during the journey.

decoupled workloads leveraging as-a-service functions from cloud providers. The
                                                                                        A mineral company’s mine in a remote area can’t run public cloud applications
key is to understand where it’s most effective while acknowledging its limitations.
                                                                                        reliably because of high latency, low bandwidth and poor connectivity. With a

For instance, if a company’s goals are agility, cost and speed, public is the way to    private cloud on site, the company could apply analytics and artificial intelligence

go. On the other hand, a private cloud is the better option when a high level of        to the data being generated by connected devices in the mine to help supervisors

customization is needed to meet an application owner’s requirements. It’s also often    continually improve the performance of assets and anticipate and mitigate potential

the right choice where there are compliance or data sovereignty concerns. The           safety risks.

public cloud’s “anytime, anywhere” access can conflict with individual countries’

laws and regulations governing how and where data is managed and used. So, for

a large global company operating in dozens of countries, each having its own data

protection rules, compliance may be easier with a private cloud for each location.

Private clouds also can make sense in cases of heightened data security concerns—

for instance, among such companies as financial services, healthcare or government

organizations, which handle extremely sensitive personal and other highly regulated

data. However, such applications are becoming less prevalent, as the growing

strength and sophistication of the public cloud’s security has made these types of

organizations increasingly open to considering the public cloud.

Perhaps the biggest argument in favor of a private cloud is its ability to help meet

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY                                                    COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 16
TWO THINGS TO KEEP IN MIND WHEN CONSIDERING A                                                    The fact is, the use cases for private and public clouds are very different, so

PRIVATE CLOUD                                                                                    companies should consider their long-term hosting objectives before pursuing a

As the hosting landscape continues to evolve, a hybrid approach to cloud will still              two-stage migration strategy. Private clouds are a viable hosting option if they’re

make sense—meaning a private cloud likely will be part of most companies’ overall                tailored to a specific application suite or owner and address a business requirement

computing landscape. That’s why, when considering a private cloud, companies                     such as data sovereignty or remote hosting. In this case, a company should focus

should keep two key points in mind.                                                              on optimizing that platform to deliver the application as efficiently as possible to

                                                                                                 justify the investment. If a company is really thinking about a private cloud that runs
First, it’s critical for all involved to correctly identify if the workloads in question truly   everything in its data center, it should target public cloud right out of the gate to
need private cloud functionality or if they are better suited for the public cloud               take advantage of the cost, scale and performance benefits.
or even virtualized hosting. Implementing and running private clouds generates

overhead costs that will just become sunk expenditures if the company doesn’t                    A private cloud undoubtedly
end up using the private cloud functionality. While companies continue to toss all
                                                                                                 can deliver significant
                                                                                                 business benefits.
manner of on-premise computing under the private cloud moniker, companies need

to understand that private clouds aren’t free to build, and they require an ownership

structure to create and maintain standards and services. Companies also need to

ensure they will actually require the on-premise agility of a private cloud. If they             But it can only do so if a
don’t, they probably have a virtualized hosting platform. If they do want agility but
                                                                                                 company understands up
don’t want to manage the services and standards, then a public cloud, a third-party

managed private cloud or a community cloud may be a better match.
                                                                                                 front what private cloud can
                                                                                                 and can’t do and the role it’s
Second, a company must be aware that a private cloud isn’t a quicker, easier and
                                                                                                 best equipped to play as part
                                                                                                 of the company’s larger cloud
lower-cost route to the public cloud. Moving to a private cloud requires application

modernization to use the cloud assets effectively. If a company then takes the

next step to the public cloud, it will need to complete a second optimization of the             and computing strategy.
application to operate in the public cloud economic paradigm, which is different

from that of a private cloud.

FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY                                                             COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 17
FORCE #3:

CLOUD TIPPING
POINT FORCES
IT TO RUN
DIFFERENTLY
By Tristan Morel L’Horset, Managing Director,
North America Intelligent Cloud & Infrastructure Sales Lead

A big part of the significant increase in cloud usage in the past five years

has been the advent of platform-as-a-service (PaaS) solutions and other

components, which have encouraged companies to substantially ramp up their

cloud consumption. PaaS, in particular, has been a real driving force, as it allows

companies to develop, run and manage applications without having to build and

maintain the infrastructure to do so.

In fact, because of these innovations, most companies are now rapidly

approaching a true tipping point in their cloud presence that’s forcing them to

look more closely at their requirements around roles, policy, security, data and

network, as well as more broadly at how they use the cloud and manage the

associated costs.

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To support—and
THE NEED TO “RUN DIFFERENTLY”
The reality is, with so much of their business now in the cloud, many companies

                                                                                                 truly capitalize
are beginning to recognize that they need to run their IT operations differently

than when they were primarily an on-premises, legacy data center business. The

                                                                                                 on—their growing
cloud is far too dynamic in nature, and the pace of innovations being introduced

much too quick, for a traditional approach to IT to effectively handle. Not

                                                                                                 cloud estate,
running differently can have a big impact on both the top and bottom lines.

TOP- AND BOTTOM-LINE CHALLENGES                                                                  companies need a
For example, buying capacity and new services from cloud providers is an

ongoing process, which is much different from the periodic purchase of assets                    new IT operating
that characterize the on-premises legacy world. Instead of a one-time, closely

controlled activity done every few years, cloud buying happens continually—                      model, with
and easily. If they’re not careful, companies can see spending spiral out of

control. With the amount that many companies spend on the cloud increasing                       new skills and
steadily—more than $1.3 trillion in IT spending will be affected in some way by

the cloud by 2022, according to Gartner4—failure to properly manage, optimize                    roles, as well as
and consume cloud services will have a negative effect on the bottom line—to

the tune of millions of dollars for large organizations.                                         new processes,
The top line also takes a significant hit if a company doesn’t run differently. A company        that enable the
                                                                                                 company to run
that treats the cloud as just another data center—building and deploying applications in

the same methodical and time-consuming way—will never be able to capitalize on the

                                                                                                 differently.
Hyper 3’s innovations to transform its business and give its customers what they want.

And it’ll end up falling further and further behind competitors that can do it right. In fact,

the economic impact of opportunities lost due to failure to harness the cloud’s innovation

far exceeds the bottom-line impact driven by inferior cost management.

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY                                        COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 19
A BIG NEED FOR NEW SKILLS                                                                PROCESSES MUST CHANGE
Skills are arguably where the biggest changes are needed and are the stiffest            Changes in ITIL processes are also needed. While an official “bible” of cloud

challenge to overcome. For example, in the old legacy days, companies had                processes has yet to be written, there’s no doubt the importance of each ITIL

specialists in storage, network, backup and operating systems. As the cloud              process has fundamentally shifted—with the biggest impacts seen in incident

emerged, organizations made a few cloud-savvy engineers responsible for                  management, problem management, and change management.

managing cloud services. This arrangement worked fine while companies’ cloud

presence was limited.                                                                    Incident management has become dramatically less critical with the cloud. If there’s

                                                                                         an incident with a cloud component, we no longer have to fix it. We just change

But now, with so much of their business in the cloud and the number of platform          over to a new virtual machine (VM), workflow or container because components are

services exploding, a small DevOps team supporting the cloud is no longer                so commoditized and easy to ramp up. In other words, in the world of automation,

sufficient. Companies need a different, and larger, set of specialists in each of the    incident management becomes almost a non-event. But the importance of problem

three cloud PaaS components: container platforms, application platforms, and             management has grown. Even though it’s easy to move on from an issue, a company

function platforms. And they need to organize these new specialists in ways that fuel    still wants to understand why the problem occurred to prevent it from happening

collaboration, innovation, speed, and agility—for example, in a center of excellence.    again. That’s crucial to making the company’s cloud presence stable.

New skills will mean nothing if they’re simply tossed in with a legacy IT organization

that doesn’t truly understand how to take advantage of the cloud.                        Change management arguably isn’t any more or less important, but it’s assumed a
                                                                                         different dimension. Because developers want to be more agile and able to embed a

                                                                                         new feature in real time, the environment must be architected correctly from the start

                                                                                         so developers’ actions don’t have unintended (and unwelcome) consequences. Thus,

                                                                                         change management has morphed from, “I must control the change and its impact”

                                                                                         to “I must architect my application and my ecosystem to enable developers to easily

                                                                                         introduce new capabilities,” which is key to capitalizing on the Hyper 3’s innovations.

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BE A
                                                             A cloud-first business—which many companies are on the verge of becoming—

                                                             bears little resemblance to one driven by on-premises data centers, so

CLOUD-
                                                             companies shouldn’t run their cloud estate the same way they’ve always

                                                             handled their legacy architecture. As companies reach the tipping point in the

                                                             amount of their business that’s in the cloud, they need to think past the short-

FIRST
                                                             term, immediate cost savings the cloud can provide to consider what it really

                                                             means to run in the cloud. Crucially, that includes understanding what they

                                                             need to do differently, both now and over the long term, to fully benefit from

BUSINESS
                                                             and keep pace with it.

FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 21
FORCE #4:

MULTI IS THE
NEW CLOUD
REALITY
By Andrew Wilson, CIO, Accenture

HOW MANY CLOUD PROVIDERS IS THE RIGHT NUMBER
FOR YOUR ENTERPRISE?
As companies move more of their business to the cloud, many ask this question

and conclude it’s more than one. Indeed, according to one study, seven in 10

companies expect to be operating a multi-cloud environment by 2019.5

This is not a fixed answer for all, as processing requirements vary hugely across

industries and enterprises. Factors like cost, performance, degree of global

operations, concentration risk, hybrid and scale can all influence this decision.

The advantages of a second provider may be the reality for your company.

At Accenture, we chose to work with a small number of cloud providers for our

own workloads to help prove out multi-cloud operations, to balance risk across

the ecosystem and to help compare and contrast cloud service providers to

inform our work with our clients.

FORCE #4: MULTI IS THE NEW CLOUD REALITY                                            COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 22
HOW DOES A COMPANY CAPITALIZE ON THE BENEFITS

The decision to
                                                                                    OF MULTI-CLOUD WHILE MINIMIZING THE COMPLEXITY
                                                                                    IT INTRODUCES?

select beyond or
                                                                                    In Accenture’s experience—both with the 94%+ of our own business in the cloud

                                                                                    and with our clients—the key is to ensure that the company’s ability to manage

expand from a
                                                                                    cloud usage, control costs, set policy and ensure compliance is universal, not

                                                                                    provider-specific.

single provider                                                                     Managing usage and cost is extremely important, especially in a multi-cloud

brings complexity.
                                                                                    environment. Providers’ flexible-charge models make it difficult to predict

                                                                                    what costs a company will incur and open up vast potential to blow past

                                                                                    established budgets. Furthermore, with millions of line items on a single

                                                                                    invoice, determining who bought what, and why, is far from easy. Security

It’s hard enough to manage multiple accounts and environments in one cloud          and compliance, of course, are also critical and become even more important

provider—just look at the lines of billing you get every month. Doing it across     (and much more difficult) when more than one cloud vendor is involved. And

two or three cloud providers adds to the challenge.                                 having the right policy in place that covers multiple providers is vital to tracking
                                                                                    the resources the company has deployed to ensure they’re compliant and

Consider, for example, a large global company with a significant portion of its     configured correctly.

business in the cloud with a single provider. In just one part of the enterprise,

it could have a dozen or more accounts covering different stages of the

development life cycle. And for each of those accounts, the company must

ensure its environments aren’t vulnerable to unauthorized access or use,

manage compliance and keep a handle on costs. That can be daunting. Add a

second or third provider to the mix, and the challenge increases exponentially.

FORCE #4: MULTI IS THE NEW CLOUD REALITY                                                  COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 23
GET THE RIGHT TOOLS
HOW DOES A COMPANY ACCOMPLISH ITS GOALS ACROSS PROVIDERS, WHEN EACH PROVIDER’S TOOLS ONLY APPLY
TO ITS OWN ENVIRONMENT (AND GENERALLY AREN’T AS ROBUST AS THEY NEED TO BE)? THIS IS PRECISELY THE
CHALLENGE A CLOUD MANAGEMENT PLATFORM IS DESIGNED TO ADDRESS:

1                                                        2                                                                        3
A cloud management platform enables                      One of the most desired features of a cloud                              Another cloud management platform capability that’s

organizations to manage their entire cloud estates       management platform is cross-cloud tagging.                              especially important in a multi-cloud environment

from a consolidated viewpoint (sometimes this is         Tagging capabilities enable a company to tag assets                      is its ability to discover resources. Cloud makes it

accomplished with a centralized control plane or a       throughout its entire environment, regardless of                         easy for essentially anyone with a credit card to go

multifaceted approach to managing cloud services).       which or how many cloud providers it uses. Tagging,                      online and spin up a new resource. That’s a blessing
Integrating with technology from the leading cloud       when paired with analytics, gives a company visibility                   and a potential curse. Without being able to discover

providers, it provides total visibility into all cloud   into who’s using which cloud assets and shows how                        resources, it’s easy for the cloud equivalent of

resources to enable companies to maintain security,      those assets are being used and why. Such visibility                     “shadow IT” to proliferate. In our case, by provisioning

control cost and ensure governance across multiple       is critical for effectively managing total cloud spend,                  through the Accenture Cloud Platform from the

accounts and providers.                                  as well as deploying standard policies and controls                      start and tagging, we mitigate the proliferation of

                                                         across these assets.                                                     shadow IT and can understand our assets from a

                                                                                                                                  scale perspective at all times. A cloud management

                                                                                                                                  platform enables a company to scan its entire cloud

                                                                                                                                  estate to find out what’s being added and assume

                                                                                                                                  control over it—which helps control costs, as well as

                                                                                                                                  ensure compliance and security.

FORCE #4: MULTI IS THE NEW CLOUD REALITY                                                        COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 24
WHEN IT COMES
TO TOOLS, IT
PRACTITIONERS
HAVE SEVERAL
OPTIONS.
They can address it themselves or can purchase a tool, toolset or
service like the Accenture Cloud Platform. Building one’s own tools will

require ongoing maintenance, support, tracking and innovating, as

well as a dedicated team. Buying vendor tools will most likely involve

effort to piece them together. A service like Accenture Cloud Platform

leapfrogs these options by providing solutions already pieced

together for the enterprise. It brings together lessons learned and

different approaches into one place, and can elevate an organization’s

capabilities and enhance its ability to succeed in the cloud.

FORCE #4: MULTI IS THE NEW CLOUD REALITY                                   COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 25
GET THE RIGHT PEOPLE
PEOPLE ARE ALSO CRITICAL TO OPERATING A MULTI-CLOUD ENVIRONMENT EFFECTIVELY.

As a company expands to multiple providers, some skills will apply across platforms.          The move to multi-cloud will likely involve change management and retooling of

But as it starts to consume the specific cloud-native capabilities of each provider, the      skills. A company, for example, may need to translate its current provider’s approach

company will have to invest in discrete skills in each of the platforms and consider          to security to create an equivalent set of compliance and security processes across

where to make those investments.                                                              multiple providers. If this is the case, people will have to learn an entirely new

                                                                                              language and set of products and be comfortable doing so. And that will require
Most companies won’t have the luxury of having discrete teams dedicated to each               a concerted training and development effort and, potentially, hiring new people
provider. Nor is it feasible: Most systems and workloads won’t operate in isolation but,      with the requisite skills. At Accenture, we recognized we would need to retool our
rather, will be at least partially integrated across providers in some way. Companies         people’s skills, and supported an organic, hands-on transformation of skills along
need to consider where to make skill investments to become fluent across providers            with training programs. For many companies, moving to cloud will be the impetus to
and where to be provider-specific—whether it’s security experts, cost analysts, business      evolving IT skills and moving the organization into the new.
people, or the subject matter expert creating and operating the infrastructure. Ultimately,

some skills will be cross-platform and some platform-specific.                                Another option is to fill the talent gap with the help of a cloud managed services

                                                                                              provider (MSP), which can bring expertise in all the Hyper 3 providers. An MSP

                                                                                              can integrate and orchestrate the use of various cloud services, as well as help

                                                                                              companies manage their consumption of cloud services across multiple clouds—

                                                                                              often through the use of its own cloud management platforms. It also can sort

                                                                                              through and assess the thousands of new services the Hyper 3 roll out every year to

                                                                                              find those that provide the most benefit.

FORCE #4: MULTI IS THE NEW CLOUD REALITY                                                             COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 26
BE AGILE AND
COMFORTABLE
WITH CHANGE
WITH THE INNOVATIONS FROM THE HYPER 3           Accenture was fortunate to have had the foresight to establish a governance structure

CONTINUALLY ROLLING OUT, MOST COMPANIES WILL    with a dedicated group that addresses changes and injects them into our organization

EVENTUALLY FIND IT IMPOSSIBLE TO OPERATE IN A   in an agile way without disruption. No doubt change is constant, and companies

SINGLE PROVIDER ENVIRONMENT. WITH THE RIGHT     should remain open to change down the road. Business requirements may exhaust

TOOLS AND PEOPLE—AND THE RIGHT GOVERNANCE       the capabilities of a provider, or other providers may roll out new services that are

STRUCTURE—COMPANIES CAN MITIGATE THESE          better aligned with the business. A decision made today may not pan out in six

CHALLENGES AND REAP THE BENEFITS OF A MULTI-    months. The key is to be flexible and ready to move when the time is right.

CLOUD APPROACH.

FORCE #4: MULTI IS THE NEW CLOUD REALITY               COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 27
FORCE #5:

                                                               CLOUD
                                                               MANAGEMENT
                                                               EMERGES AS
                                                               THE NEXT BIG
                                                               CHALLENGE
                                                               By Sean Peterson, Cloud Management CoE Lead, Accenture Cloud

                                                               As companies move more and more workloads to the cloud, they’re facing
                                                               a reality check: in most cases, companies’ embrace of the cloud has now
                                                               outpaced their ability to manage their increasingly large cloud estates. They
                                                               don’t have the industrialized governance, security and other capabilities they
                                                               need to handle the scale of their cloud presence, especially if they’re using more
                                                               than one cloud provider (and most are). This means they’re likely not only failing
                                                               to maximize what they can get from the cloud but also setting themselves up for
                                                               potential cost overruns, inefficiencies and even security lapses that could make
                                                               their business vulnerable to unwelcome surprises.

                                                               Accenture understands this situation very well. By helping hundreds of
                                                               companies migrate to and use the cloud, and by running so much of our
                                                               business in the cloud, we have gained a unique perspective on what it takes to
                                                               effectively manage a large-scale cloud estate.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 28
WE LEARNED FROM OUR
EXPERIENCE THAT FIVE
THINGS ARE PARTICULARLY
IMPORTANT.
1                                                                                        2
GOVERNANCE AND MANAGEMENT CONTROLS                                                       COST ANALYTICS
Effective cloud management and governance are basic requirements for any                 One of the biggest lessons we’ve learned is that if you don’t have visibility into how
company. But for large enterprises with equally large cloud estates, there’s nothing     you’re using the cloud, spending can get out of hand quickly. This is definitely a
basic about it. The sheer scale and complexity of such companies’ cloud estates          big issue we hear about from the companies we speak with today. They have so
can make it extremely difficult to define who’s allowed to do what in the cloud and      many accounts and subscriptions across the Hyper 3 that it’s difficult for them
ensure that users comply. As their cloud presence grows, companies need to put in        to understand if what they’re spending is the right amount. They don’t fully know
place enterprise-level, cross-cloud policies that enable the different types of users—   who’s spending what, so it’s not uncommon for them to find out they’re running
from the business to the IT organization—to have the freedom and agility to take         significantly over budget—but not have the oversight to know why. That’s why it’s
advantage of the cloud’s innovations while maintaining necessary controls.               critical for companies to have analytics in place that can give them the kind of
                                                                                         intelligence they need to manage use—and, consequently, costs—more effectively.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE                                   COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 29
3                                                                                            5
BILLING                                                                                      A ROBUST CLOUD MANAGEMENT PLATFORM
As companies with large cloud estates have certainly experienced, cloud billing is very      A major challenge a company encounters as its cloud estate grows is simply keeping
complicated. Tracking and attributing charges, making sure they’re accurate, resolving       up with and integrating new technologies as they emerge. Accenture learned
discrepancies and figuring out how to apply discounts can be difficult even with a           early on that having a single platform that could serve as the glue among not only
relatively small cloud estate. With really large estates spanning multiple providers and     the three major cloud providers but also other related tools would be critical to
involving many different areas of the business, it can become overwhelming: A single         operating in the cloud effectively.
bill from just one provider can have a million line items, each of which needs to be
reconciled before the bill can be paid. Building the knowledge and acumen to handle          By integrating with technology from the leading cloud providers, a cloud
billing at this scale isn’t easy. It took Accenture two years to do it, and we continue to   management platform enables a company to manage its entire cloud estate from
hire more people with the right skill sets as our use of the cloud grows.                    a centralized control plane. It provides total visibility into all cloud resources, so a
                                                                                             company can maintain security, control cost and ensure governance across multiple

4
                                                                                             accounts and providers. While theoretically it’s possible for a company to build its
                                                                                             own cloud management platform, doing so is an extremely long, complex and costly
                                                                                             process. Platforms available as a service are good alternatives to building one from
                                                                                             scratch because they can be up and running quickly, with little effort and no upfront
SECURITY
                                                                                             investment.
No one has to be reminded that security is a central part of cloud management.
Seemingly every week we see in the media what can happen when security falls short.
But it’s not enough to have strong security. In our experience, security also has to be
active, not passive. In other words, as we discuss in more detail in Force #7, it needs
to be baked into a company’s cloud infrastructure from the start so the organization
doesn’t leave itself vulnerable to even simple mistakes—such as configuring a
deployment incorrectly—that can result in unwanted exposure. A key part of active
security is being able to scan and monitor the entire cloud estate—every few minutes,
hourly or daily—to identify and address anomalies to maintain compliance.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE                                       COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 30
ENLISTING
                                                               A company that takes care of these five concerns can go a long way toward
                                                               enhancing its ability to manage and optimize the use of its cloud estate. But

THE HELP
                                                               beyond these, one other, overarching learning we’ve identified can, perhaps, be
                                                               the most impactful of all: enlisting the help of a qualified external provider that
                                                               can do a lot of these things for you. The fact is, managing the cloud involves

OF A
                                                               a lot of work that, in the end, does nothing to differentiate a company in the
                                                               marketplace. So why should CIOs devote precious skills and resources to
                                                               dealing with these activities?

QUALIFIED
                                                               Frankly, they shouldn’t. There’s no reason to, say, deploy talented engineers
                                                               to cloud management when those people could, instead, be developing new
                                                               software that dramatically improves how the company interacts with customers.

EXTERNAL
                                                               External partners can do the work associated with cloud management, often
                                                               more efficiently and less expensively. This can allow CIOs to focus their talent,
                                                               tooling and technology on using the cloud’s innovations to transform how the

PROVIDER
                                                               company does business.

                                                               With cloud adoption—and the accompanying complexity—only growing, CIOs
                                                               have to think carefully about their cloud management requirements and how
                                                               best to address them. With the right talent, tools, services, platform and partner,
                                                               a company can continue to expand its use of the cloud to power the business
                                                               while minimizing complexity and risk—much as Accenture has done in its own
                                                               operations.

FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 31
FORCE #6:

NATIVE VS.
NICHE
By Catherine Gulsvig Wood, Cloud Product Management Sr. Manager,
Accenture Cloud

Native cloud providers—primarily the Hyper 3—continue their explosive growth,

collectively launching thousands of new features and services every year.

Meanwhile, niche providers of cloud management solutions are constantly on the

lookout for gaps to fill in native providers’ services to make it easier for companies

to control and optimize their cloud estates. So, the question for companies

becomes: What role should each type of provider play in their cloud strategy?

FORCE #6: NATIVE VS. NICHE                                                               COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 32
INNOVATION BRINGS NEW CHALLENGES
AND DECISIONS
The fact is, as cloud use becomes even more pervasive, companies need more

powerful tools to help them manage key elements of their cloud estate, such as

governance, cost management, capacity planning, security and compliance,

configuration management and others. And therein lies the challenge: Which

tools should they use? Should they stick with those the native providers offer

or go with ones offered by niche providers that specialize in specific areas? Or,

should they consider a third option: an abstraction layer that allows them to

use new tools and services without getting locked into a specific vendor? It’s a

critical decision that must be made in light of what these providers offer now.

And it’s not easy differentiating between true capabilities available today versus

those on a roadmap.

Take the native providers. No one
denies their innovation engines or the
sheer amount of money they plow into
their businesses. And when they spot a
problem area, they address it quickly.
Security is a great example. In the early days of the public cloud, companies

were rightly concerned about the security of their data, and their feeling that

their own servers were much more secure was dampening cloud acceptance.

Providers recognized this was a huge obstacle to their growth and attacked the

security issue head on.

FORCE #6: NATIVE VS. NICHE                                                           COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 33
INTEROPERABILITY IS KEY FOR MULTI-CLOUD ESTATES                                         And they can be very effective because of their laser focus. These providers are looking

On the other hand, there are two big drawbacks to their innovation. One, they           deeply at the Hyper 3’s services and continually identifying gaps that need to be filled.

typically aren’t as robust or comprehensive as they need to be. And two, all of the     They’re spotting potential problems and are upgrading their offerings accordingly.

tools are exclusive to each cloud provider. That may be fine for a company that’s
                                                                                        But niche vendors, too, have downsides. Their solutions aren’t offered as an
dedicated to a single provider, but the arrangement is less than ideal for companies
                                                                                        integrated service, so companies likely will have to integrate the solutions
that use two or even all three of the Hyper 3—which is increasingly the case. Each of
                                                                                        themselves and possibly integrate across all of the native providers if they’re running
the Hyper 3 is bent on dominating the public cloud market, not interoperability. That
                                                                                        multiple clouds. And there’s always the chance that the Hyper 3 will come out with
makes it difficult for a company to create a seamless, multi-cloud environment.
                                                                                        their own version of these solutions, rendering the third-party ones obsolete.

Niche vendors offer very
specific solutions that
cover one or just a handful
of the management issues
mentioned.

FORCE #6: NATIVE VS. NICHE                                                                     COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 34
CONSIDER
                             A THIRD
                             OPTION
                             FORTUNATELY, THERE’S A THIRD OPTION:
                             Cloud management platforms that operate as an abstraction layer and have all

                             of the benefits of a robust, comprehensive solution without the drawback of

                             being tied to a specific cloud provider. Such platforms, which use configuration

                             and rules languages that are Hyper 3 agnostic, enable a company to manage its
                             entire cloud estate, regardless of how many cloud providers it’s using.

FORCE #6: NATIVE VS. NICHE         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 35
TAKE BILLING, FOR EXAMPLE.
Determining how much a company pays for its cloud infrastructure is difficult, even       public cloud. That trend is likely to accelerate, as the Hyper 3 continue to roll out

with just one provider. It’s exponentially more difficult if the company is using all     new features and services that are irresistible to companies’ developers. Rather

three, each of which has its own ways of describing its resources and charging for        than try to rein in developers, CIOs need to give them the freedom to explore and

services. An abstraction-layer billing engine, based on an open-source language,          experiment—while maintaining control. Native cloud management consoles can

can apply the company’s specific billing rules across all three providers, giving a       help in some cases, but they have limitations. The same is true of niche offerings,

consistent, definitive view of the cloud estate’s total costs.                            which can seem like easy fixes until the costs of customization and their inability to

                                                                                          work in a true multi-cloud environment become clear.
The same thing applies to security. Because it’s an abstraction layer, a cloud

management platform can establish specific rules for how a company’s data privacy         The reality is that, for the foreseeable
policy gets interpreted and applied when the mechanisms and even the terms                future, companies shouldn’t expect
referring to those policies are different across providers. This enables a company to
                                                                                          interoperability to be high on the
consistently apply its security policy in all environments without having to wait for a
                                                                                          Hyper 3’s agenda.
vendor’s next release that promises support for an additional Hyper 3 provider.

                                                                                          Until it is, an abstraction-layer
                                                                                          approach to cloud management
Another big advantage to cloud management platforms is that they run as a

service—they already include the “plumbing” to accommodate operations across

multiple cloud environments. Thus, they require no time-consuming, expensive              makes sense for companies looking
integration or customization to set up and use.                                           to optimize their cloud estates while
                                                                                          continually taking advantage of the
The emergence of abstraction-layer cloud management platforms, and “cloud-
                                                                                          best the Hyper 3 have to offer.
agnostic” solutions such as Terraform, has come at an opportune time for

companies that are increasingly having to manage a presence in more than one

FORCE #6: NATIVE VS. NICHE                                                                      COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 36
FORCE #7:

                              SECURE
                              FROM START

                              By Jonathan Roz, Global Delivery & Operations Lead, Accenture Cloud

                              Security is a major concern for the keepers of a company’s data. According

                              to Accenture research, 79 percent of companies admit their organization is

                              adopting new and emerging technologies faster than they can address related
                              cybersecurity issues, and 80 percent said protecting their companies from

                              weaknesses in third parties is increasingly difficult.6 And that concern remains

                              as companies move an increasing amount of their business to the cloud.

FORCE #7: SECURE FROM START         COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE.   PAGE 37
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