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1、Best Practices to Maximize the Business Value of the Cloud January 2021Prepared by Known Commissioned by AWS 2Cloud services are now ubiquitous among enterprises large and small.Organizations no longer question whether or not to adopt the cloud but rather how to migrate and how quickly.While there h

2、as been widespread adoption,some organizations have been more successful than others at realizing the value of cloud services.This study seeks to identify the best practices that high-performing organizations utilize to deliver business value as they make the transition from traditional on-premises

3、IT to the cloud.We also quantified the impact of best practice adoption on value realization.This information can be used as a guide for organizations as their use of cloud services expands and matures.IntroductionIn phase two,we conducted a global survey among 705 enterprise IT leaders to:Assess th

4、e extent of the organizations adoption of the 45 best practices Quantify the value realized by their organizations across the four pillars of the AWS Cloud Value Framework:To understand the best practices that drive value realization,we conducted a three-part study.In phase one,we interviewed a tota

5、l of 30 enterprise IT leaders(i.e.,CIOs,CTOs,VPs,and directors)and lines of business(LOB)application owners(i.e.,CFOs,COOs)to identify best practices that High maturity organizations implement to maximize value from their investment in the cloud.These interviews identified 45 frequently mentioned hi

6、gh-impact best practices.In phase three,we ran an advanced analysis to:Segment enterprise organizations into Low,Medium,and High maturity Understand the correlations between best practice adoption and value realization Objectives&methodologyAnalysis outputs:Analysis inputs:32.Staff productivity 3.Op

7、erational resiliencePercentage of infrastructure in the cloudCloud attitudesBusiness value KPI improvement Organizational cloud maturity segmentationBest practices utilization 1.Cost savings4.Business agilityEnterprise organizations segment into three categories:Low,Medium,and High maturity organiza

8、tions based on their attitude toward cloud adoption,usage,and best practice adoption:To Low maturity organizations,cloud services are a utility.Rather than staying on the cutting-edge,they wait for technology to be perfected,then follow proven roadmaps before implementing.While they have some of the

9、ir infrastructure in the public cloud,they maintain a large amount of legacy infrastructure in on-premises data centers.This conservative attitude toward technology leads to greater difficulty for Low maturity organizations in realizing maximum value from cloud services.Medium maturity organizations

10、 begin to recognize the power of technology as a differentiator for their business.They are more intentional about IT not only being a cost center but also a place for innovation.They have a greater commitment to cloud services since 50 percent of their infrastructure,on average,is hosted in either

11、public or private clouds.High maturity organizations fully recognize the transformative power that cloud services can have on their business.They aggressively innovate and view technology as a competitive advantage.High maturity organizations have fully committed to the cloud,with 82 percent of thei

12、r infrastructure housed in a public cloud.These attitudes and the cloud-related behaviors they exhibit organizationally lead to High maturity organizations realizing the most value from cloud services.Cloud maturity segmentation 37.7%47.5%14.8%of enterprisesof enterprisesof enterprisesLow maturity o

13、rganizationsMedium maturity organizationsHigh maturity organizations 45After classifying organizations by maturity,we examined the business value realized by organizations in each level of cloud maturity.Across all areas,High maturity organizations realized the most value from their cloud investment

14、s.The range of improvement across Low,Medium,and High maturity organizations is summarized in the visual and then discussed in detail throughout this eBook.Value realizationValue realization post-migration to the cloudLegendSlight KPIImprovementSome KPIImprovementSignificant KPIImprovementLow Maturi

15、ty37.7%of Enterprises47.5%of EnterprisesMedium Maturity14.8%of EnterprisesHigh MaturityCost SavingsStaff ProductivityOperational ResilienceBusiness Agility6Designing and socializing a cloud migration roadmap for all impacted workload owners from both IT and business.Developing a cloud migration road

16、mapCreating a centralized cloud center of excellence that includes all aspects of IT(compute,database,storage,network),finance,business,and security to provide consultation and a standardized set of solutions to development teams.Installing a centralized cloud teamThe sponsorship of an executive who

17、 fully supports and enables the cloud program.Gaining buy-in via executive sponsorshipCreating a comprehensive cloud business case with organization ownership that contains expenses and business and operational benefits beyond just IT cost savings and return on investment.Creating a cloud business c

18、aseThe data reveals four best practices that correlate to the most improvement across all areas of value.Organizations that implement these best practices build a strong foundation for their cloud program.Key best practices for overall improvementsOrganizations that create and disseminate migration

19、roadmaps and business cases as early as possible in the cloud migration see,by far,the greatest success.When migration to cloud infrastructure is seen as an organization-wide transformation with broad buy-in and executive sponsorship,we see a far superior result.Key best practices for targeted impro

20、vements Leveraging various pricing models to drive cost savings,including Savings Plans,and Reserve and Spot Instances.Utilizing diverse pricing modelsCost savingsCreating and defining clear and repeatable checklists for the migration approach based on the workload.Creating checklists of specific mi

21、gration approachesStaff productivity Leveraging Agile methodologies and tools with a pervasive adoption of CI/CD or automated builds and deployments.Implementing Agile methodologies Business agilityArchitecting a cloud environment for high availability and resilience.Architecting environments for re

22、silienceOperational resilience7The study also identifies best practices that improve specific areas of value.To achieve this,we measured KPIs that represent success for each area of value and then identified the best practices that led to the largest improvement.Rather than requiring broad-sweeping

23、or structural changes to the organization,these are more tactical levers that organizations can pull.8From this point forward,we will focus on each area of value within the AWS Cloud Value Framework.We will illustrate the quantitative improvement in KPIs enabled by the adoption of best practices.His

24、torically,cost savings has been the primary goal of enterprises migrating from on-premises to cloud infrastructure.The cloud allows organizations to scale their infrastructure to closely follow actual workload demand,allowing them to pay only for what they need.Best Practice:Cost savingsTo measure t

25、he impact on cost savings,we looked at infrastructure spend as a percentage of total IT spend,with the desired outcome being a decrease in percentage of infrastructure spend after migration to the cloud.Low and Medium maturity organizations each see small improvements in infrastructure spend as a pe

26、rcentage of total IT spend.High maturity organizations,however,see a significantly larger improvement,indicating that increased adoption of and maturity with the cloud lead to greater cost savings.Infrastructure spend as a percentage of total IT spendImplementation and utilization of workload-approp

27、riate pricing models lead to greater cost savings.While integration is not necessary,close partnership and alignment between IT,finance,and lines of business(LOB)in cloud financial management practices like resource allocation,tagging,and cost allocation lead to a more efficient infrastructure bill.

28、-0.2%Low Maturity-2.1%Medium Maturity-11.7%High MaturityDecrease in infrastructure spend%Designing systems to allocate costs to specific workloads and lines of business.Cost-allocation partnershipDesigning,implementing,and enforcing resource tagging strategies.Resource taggingCreating and implementi

29、ng change-management functions to drive implementation of the cloud program.Change-management functionsLeveraging various pricing models to drive cost savings,including Savings Plans,and Reserve and Spot Instances.Diverse pricing models9Organizations also realize value through increased staff produc

30、tivity.While often less of a priority to enterprises in their migration plans,increased staff productivity can be a massive driver of value both inside and outside of IT.To measure this,we analyzed two KPIs to approach staff productivity from multiple angles.The number of virtual machines managed pe

31、r admin measures productivity in a tactical way,while the ratio of strategic work to tactical work measures productivity via a higher altitude lens.Best Practice:Staff productivitySimply put,High maturity organizations see massive gains in staff productivity.While Low and Medium maturity organizatio

32、ns see respectable and desirable growth,High maturity organizations see more than four times the improvement in the number of VMs their admins can manage.Virtual machines(VMs)per adminThe ratio of strategic work to tactical work enables us to understand the time IT staff spends growing and transform

33、ing the organization compared to simply keeping up with daily IT tasks.While Low and Medium maturity organizations each see improvement,High maturity organizations realize the most value,enabling them to continue to stay ahead of the curve.Ratio of strategic work to tactical workImproving staff prod

34、uctivity is heavily driven by organizational structure.Organizations that have thoughtful migration roadmaps,business cases,and tactical migration checklists see far higher staff productivity than those that lack this structure.Outside of migration practices,the implementation and utilization of Agi

35、le methodologies is another key driver of staff productivity.Creating and defining clear and repeatable checklists for migration approach based on the workload.Checklist of migration approach by workloadCreating and defining a clear and repeatable checklist for performance and security testing of wo

36、rkloads throughout migration.Checklist for performance and security testingHolding cross-training between IT and non-IT as part of standard,on-the-job training to educate all parties on the capabilities of the cloud.Cross-training on cloud capabilities+416%High Maturity+225%Medium Maturity+110%Low M

37、aturityIncrease in virtual machines per admin+54%High Maturity+37%Medium Maturity+27%Low MaturityIncrease in time spent on strategic workLeveraging Agile methodologies and tools with a pervasive adoption of CI/CD or automated builds and deployments.Agile methodologies10Migration from individually ru

38、n on-premises servers to a more reliable,state-of-the-art public cloud infrastructure can virtually eliminate outages for organizations,increasing operational resilience,availability,and security of applications.High maturity organizations see the highest availability rates by reducing downtime and

39、outages most effectively.Best Practice:Operational resilienceAvailability of mission-critical applications is a key measure of resilience,as it encapsulates uptime directly and the number/intensity of outage incidents implicitly.Critical application downtimeAs expected,all organizations see signific

40、ant decreases in downtime;however,again,High maturity organizations see the greatest improvement.Resilience needs to be made a priority from the start.Organizations that prioritize resilience in the architecture of their cloud environment achieve the highest levels of improvement.Other best practice

41、s include providing cloud training and certification,documenting best practices and processes,and performing testing and service-level agreement(SLA)monitoring.Architecting a cloud environment for high availability and resilience.Architected environment for resilienceSponsoring employee training and

42、 certification for cloud-related topics.Cloud training and certificationDesigning and implementing internal documentation that outlines cloud best practices and processes.Internal best practice and process documentation Designing and implementing tools and solutions to perform penetration testing an

43、d utilization of SLA monitoring.Penetration testing and SLA monitoring-70%Low Maturity-72%Medium Maturity-83%High MaturityDecrease in critical application downtime11The first measure of business agility is code deployment frequency.All levels of organizations see improvement in their deployment freq

44、uency.An additional measure used for business agility is the time-to-market for new applications,and how this improves from before migration to today.Similarly,all three maturity levels see similar improvement in their time-to-market for new apps.Code deployment frequencyTime-to-market for new appsF

45、or business agility,the top best practices focus mainly on modern development methods.High maturity organizations have implemented widespread adoption of Agile and DevOps methodologies in their development and cloud-related teams.The other indicators of business agility improvement stem from the imp

46、lementation of agile funding processes for cloud IT initiatives and the development and sharing of knowledge among internal teams.As cloud infrastructure is implemented,typical restraints on scaling a business are removed.Organizations can now focus their attention on increasing speed to market and

47、experimenting with new innovations.Of all value drivers,improvement in business agility is difficult to measure due to the diverse and unique nature of each organization and industry.Leveraging Agile methodologies and tools with a pervasive adoption of CI/CD or automated builds and deployments.Agile

48、 methodologiesUtilizing DevOps methodologies to optimize the flow of our deployment processes.DevOps utilization Designing and implementing an agile process for funding cloud IT initiatives.Agile cloud initiative funding process Holding internal forums,hackathons,and/or lunch-and-learns.Internal kno

49、wledge sharing exercises5.82x-31%Low MaturityLow Maturity6.87x-37%Medium MaturityMedium Maturity9.61x-42%High MaturityHigh MaturityIncrease in#of code deployments annuallyDecrease in time-to-market in monthsBest Practice:Business agility12ConclusionWhile specific services,workloads,and instances nee

50、d to be optimized,enterprises have the opportunity to realize greater value from cloud services by being focused and purposeful about cloud strategy and implementing best practices.In addition to implementing best practices,we recommend organizations begin benchmarking KPIs,such as the metrics in th

51、is report.This will help IT leaders better understand and track their organizations progress in realizing value.In short,organizations with higher value realization are doing the following:For targeted improvements:For overall improvements:Utilizing diverse pricing modelsDeveloping a cloud migration

52、 roadmapImplementing Agile methodologies Creating a cloud business caseCreating checklists of specific migration approaches by workloadsGaining buy-in via executive sponsorshipArchitecting environments for resilienceInstalling a centralized cloud team13MethodologyOver the course of 2020,Known,commis

53、sioned by AWS,conducted a three-part study that started with qualitative interviews,moved into a quantitative survey,and concluded with an advanced analysis.The qualitative research included a total of 30 interviews across New York,Chicago,London,and Sydney.For this phase,we met with a combination o

54、f IT leaders and LOB application owners across organizations with various levels of cloud adoption as identified through multiple vectors(e.g.,number of services,spend).Most organizations were upper-mid market or larger and primarily AWS users.These IDIs allowed us to identify the best practices tha

55、t these organizations are currently employing,splitting them across value drivers and level of implementation.Ultimately,we landed on a total of 45 distinct best practices.In the quantitative phase,we surveyed 705 enterprise IT leaders via a 20-minute online survey across NAMER,EMEA,and APAC to unde

56、rstand and quantify the relationship between the business value that organizations realize from public cloud services and the best practices currently utilized.Lastly,we ran an advanced analysis to uncover a deeper understanding of the relationship between cloud maturity and best practices.Using cut

57、ting-edge clustering techniques,we segmented organizations into Low,Medium,and High maturity classifications.Then,using advanced machine learning algorithms,we modeled the impact of best practice adoption on the KPIs.This enabled us to pinpoint the best practices that organizations can implement to

58、increase their cloud maturity and realize more business value from the cloud.To understand the business value that organizations realize,we asked a battery of KPIs that align with the AWS Cloud Value Framework utilized by the Cloud Economics team:Then,we looked to understand which of the best practi

59、ces identified in our qualitative research had been implemented by each organization and to what extent.Best practices were assigned into the categories of organization structure,migration,knowledge and skill set,operational processes,development methods,and resilience.These categories acted as a fr

60、amework for the quantification,but given that they are not mutually exclusive,weve removed them from our analysis.Each best practice was asked on an implementation scale of 15,where 1 represents no implementation,and 5 represents maximum implementation/aptitude.While the report is developed based on

61、 insights from IT leaders,it will be relevant across IT,LOB,Operations,finance,and more,as it details how implementation of these best practices throughout the organization ultimately leads to value realization.Authored by:Chris Varner,Director of Strategy,Advanced Analytics at KnownSupport from the

62、 Known Strategy and Data Science teamsTOTAL SAMPLENAMEREMEAAPACN=705N=401USN=151UK,FR,DE,BENELUXN=153SG,AU,JP,CH,INVALUE DRIVERKPICost savingsStaff productivityBusiness agilityOperational resilienceInfrastructure spend as a%of IT spendVirtual machines(VMs)per adminCode deployment frequencyCritical a

63、pplication downtimeRatio of strategic work vs.tactical workTime-to-market for new appsAbout KnownKnown is a modern marketing company engineered for the unprecedented challenges and opportunities facing marketers today.Known pairs PhD data scientists with award-winning creatives,expert research teams

64、,and strategists.Known is anchored by two decades of groundbreaking market research and data science capabilities,which uniquely empower their marketing strategy and acclaimed creative groups who produce some of the most innovative,cutting-edge creative work in culture.The result?Marketing that is p

65、redisposed to succeed and be persistently optimized,directly impacting clients bottom lines.Knowns clients span the leading brands in finance,technology,media,CPG,real estate,and many other categories.Known has over 300 employees in six US cities,including Seattle,San Francisco,Los Angeles,Austin,Bo

66、ston,and New York.Their teams have won multiple Emmys,Clios,Effies,Cannes Lions Awards,and ProMax Agency of the Year three times.About AWSSuccessful organizations migrate significant parts of their application portfolios at the start of their journey by leveraging AWS expertise to develop their orga

67、nizational,operational,and technical capabilities at every phase along the way.Following the guidance in this eBook will enable you to develop an ever-stronger migration business case that reinforces the buy-in,enthusiasm,and commitment of everyone in your organization.As the leading public cloud pr

68、ovider,AWS gives you the confidence to set bold migration goals backed by 15 years of experience being the worlds most comprehensive and broadly adopted cloud platform.Weve taken our years of experience with migrations and developed a broad set of programs and solutions to accelerate each step of your cloud journey.Get started with a free Migration Business Case.2021,Amazon Web Services,Inc.or its affiliates.All rights reserved.