Is Your Company Ready for Cloud

Pamela K. Isom / Kerrie Holley  
Total pages
June 2012
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Is Your Company Ready for Cloud
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This is the first complete guide to cloud decision making for senior executives in both technology and non-technology roles. IBM® Global Business Services® Executive Architect Pamela K. Isom and IBM Fellow Kerrie Holley present practical business cases, vignettes, and techniques to help students understand when cloud investments make sense and when they don’t. Students will find decision models that are anchored with practical experiences and lessons to guide their decision making, best practices for leveraging investments they've already made, and expert assistance with every aspect of the cloud transition.


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

Table of Contents

Chapter 1  Business Value of a Cloud Adoption Strategy     1

Ten Expectations of Your Cloud Adoption Strategy     2

  1. Create Your Cloud Vision     4

  2. Identify Cloud Use Cases    10

  3. Drive Business Innovation     12

  4. Define Business Outcomes and Projected ROI     13

  5. Determine Opportunities for Cloud as a Fifth Utility     15

  6. Specify Cloud Ecosystem     17

  7. Determine and Publish Stakeholder Involvement     18

  8. Develop Metrics     19

  9. Define Governance     20

  10. Develop Roadmaps     20

Harvesting the Value     21

Summary     22

Endnotes     23

Chapter 2  Business Value of Incorporating Cloud into Your EA     25

Your Integrated Business and IT Strategy     26

Business Benefits of the Convergence     29

Developing Your Enterprise Cloud Adoption Strategy     35

What If You Do Not Use EA?     39

  Scenario 1: Effective Business Transformation     40

  Scenario 2: Reducing Costs and Redundancies     41

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

Summary     42

Endnotes     43

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

Initial Planning     46

Enterprise Capabilities and Cloud Vision     49

Target Architecture and Cloud Enablers     61

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

  Information Systems and SaaS     68

  Technology and Infrastructure, PaaS and IaaS     75

Gap Analysis and Transition Planning     78

Implementation Planning     81

Governance     82

The Significance of Service Oriented Architecture (SOA)     83

Standards     84

Summary     85

Endnotes     88

Chapter 4  Identifying Cloud Candidates     89

Your Cloud Decision Model   90

  Top-Down Analysis     91

  Bottom-Up Analysis     95

Cloud Discovery Workshop     96

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

Summary     100

Endnotes     101

Chapter 5  What About Governance?     103

Governance Is Essential for Cloud     104

An Enterprise Cloud Governance Framework     105

  Principles and Policies     106

  Organizational Structure     107

  Financials     112

  Processes     112

  Metrics and Tools     115

Establishing Ownership     116

Governing in the Presence of Outsourcing     118

Governing Cloud Service Brokers     120

Governing Innovation     123

Business Scenario: Innovation and Cloud Provider Company     125

Summary     128

Endnotes     130

Chapter 6  Mitigating Risk     133

Cloud Risk Management and Response Strategies     133

Enterprise Adaptation     137

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

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

  How Do We Mitigate the Risk of Stakeholder Rejection?     143

Information Privacy and Transparency: Striking the Right Balance     146

Service Level Management (SLM)     149

Performance and Quality of Service     153

Globalization     156

Summary     157

Endnotes     159

Chapter 7  Planning the Transition     161

Relating Transition and Implementation Planning     161

The Business of Cloud     163

  Self-Service     165

  Speed, Rapid Development, and Service Delivery     165

  Flexible Pricing, Pay Per Use     168

  CafĂ©-Style Services     169

  Leaner     169

Practical Experiences and Lessons Learned     171

  Proof of Concepts and Pilot Programs     171

  Organizational Change     171

  Workload Considerations     176

  Outsourcing Considerations     177

  Buyer and Seller Considerations     178

  Test Strategy Considerations     180

Enterprise Cloud Transition Plans and Roadmap Examples     180

Summary     183

Endnotes     184

Chapter 8  Financial Considerations     185

Communicating the Financial Benefits and Implications     186

  Managing Your Money     189

  Do Opportunity Costs Matter?     195

  Cloud Workloads and Business Profitability     195

  Key ROI Metrics and Business Agility Indicators     199

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

Business Scenario: Brand, Inc.     201

Summary     204

Endnotes     205

Epilogue  Thinking Beyond the Race     207

Appendix A  Augmenting Your Delivery Model with Cloud     243

Appendix B  Cloud Case Studies and Common Questions     267

Appendix C  More on Cloud Business Trends     299

Glossary     311

Index     331


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

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

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

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

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

Reader Review(s)

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