New Economics of IT: Modernization

©2016 Avanade Inc. All Rights Reserved.

THE NEW ECONOMICS OF IT

ModernizationIn the cloud-first digital world, IT modernization is critical to successfully achieving a New Economics of IT


Marketing “We need to be able to understand our customers better”

The increasing expectations of digitally savvy stakeholders

CEO“I expect 41% of revenue to be digital1 by 2020.”

Sales“I want to be as productive on the road as I am at my desk”

51% of CIOs cannot respond in a timely manner to digital opportunities.1

Finance“I need to minimize the amount of risk the business is exposed to so I can predict costs”

Project Manager“I want to be able to communicate with my client teams as easily as I can with my friends”

1 Source: Building the Digital Platform: Insights From the 2016 Gartner CIO Agenda Report

Business unit leader“We need to be able to respond faster than our competition to digital business opportunity”


Two distinct approaches are required for the digital world

1Gartner define this as Bimodal IT2 Source: “The Most Common Barriers to Adopting Bimodal and How to Overcome Them”, Gartner, 2016

PREDICTABLE“Optimize the core” by

managing, maintaining and securing core IT systems with

new approaches

EXPLORATORY“Innovate the business” by experimenting with new technology to identify new opportunities

In the cloud-first digital world, IT MODERNIZATION is critical to successfully achieving a New Economics of IT

BUT“Legacy systems are the third

biggest blocker behind culture & priority to adopting a bimodal IT model” Gartner2

“… and it’s renovation of the legacy environment that unleashes the full potential of bimodal”2


Our Microsoft ecosystem expertise is unsurpassed.

Avanade is a specialist in modernizing the Microsoft technology ecosystem

With a proven track-record in Managed Services.

Recognized for our ability to transform businesses for the digital world.


INFRASTRUCTURE Modernization Build an application led flexible, hybrid, automated, infrastructure which scales to business demands

APPLICATION Modernization Invest in modern engineering practises to create differentiated, liquid applications using a cloud first approach

Avanade’s approach to modernization focuses on three major areas:

The Journey to IT Modernization

WORKPLACE Modernization Modernize your workplace platform, and build connected collaboration tools to lay the foundations for a digital workplace



BUSINESS VALUE

IT perceived as an operational cost center

Efficient IT environment to enable business agility

IT empowering the business to innovate

LEGACY CONVENTIONAL MODERNIZED

Typical Stages of a Modernization Journey

LEGACY IT refers to aging parts of the IT environment which add risk and cost to the business

CONVENTIONAL IT refers to the typical types of systems businesses are running on today

MODERNIZED IT refers to the next wave of business value-add IT to help address the digital age

Typical Journey



The Reality

We know it’s not quite that simple…

“Migrating from an unsupported server OS means I can’t just lift and shift everything. I need to consider different approaches for my infrastructure and each application”

“This is our third merger in as many years. Integrating device, data and application security with identity management across different data centers and cloud providers is becoming a train wreck”

“I know doing more with agile and DevOps will help connect the dots between business and IT faster, but I just don’t have the skill sets available across my teams to make it happen”


BUSINESS VALUE


Application Modernization Value Curve

By 2018, the transition to agile, DevOps and Web-scale IT practices will become as disruptive to IT as the adoption of lean was to manufacturing during the 1980s. 2

466% five year ROI from moving from Azure IaaS to Azure PaaS 3

Typical Journey

Industry Trends

1.The Total Economic Impact™ Of Microsoft Office 365 For Commercial Users, Forrester, 20162.Source: “Predicts 2015: Application Development ”, Gartner, November 20143.The Total Economic Impact™ of Microsoft Azure Platform-as-a-Service

App business value reduces as business requirements evolve Application

portfolios rationalized and modernized to deliver on dynamic business needs

PaaS used to enable 50% faster app delivery time to market2

Modern engineering practices, agile approaches and realigned IT teams deliver differentiated applications

IT perceived as an operational

cost center



Applications migrated away from the legacy platform

Legacy on-premise applications in use for key business-critical functions

SaaS used to reduce IT support costs by 10%1

Modern engineering platforms deliver liquid applications which provide competitive advantage


BUSINESS VALUE


A Client’s Application Modernization Journey

Centrica’s Journey

App business value reduces as business requirements evolve Application

portfolios rationalized and modernized to deliver on dynamic business needs

Modern engineering practices, agile approaches and realigned IT teams deliver differentiated applications


cost center



Applications migrated away from the legacy platform

Legacy on-premise applications in use for key business-critical functions

Modern engineering platforms deliver liquid applications which provide competitive advantage

Centrica

RESULTS REALIZEDUtilizing agile best practises via Avanade managed services modernizing Centrica’s trading platform led to:• Increased trading

volume by 50%,• Reduced

downtime by 50%

• Reduced time to resolve incidents by 60%


BUSINESS VALUE


Infrastructure Modernization Value Curve

60% of organizations are either already using DevOps, or plan to implement it in the next 24 months3

80% of Enterprise IT organizations will commit to Hybrid Cloud architectures by 20172

Typical Journey

Infrastructure ages, maintenance costs rise and risk to the business increases Business

needs change, infrastructure becomes both inefficient and a significant risk to the business

Infrastructure refreshed on-premises, with optimized hardware and virtualization

IT begins to extend their environment into the cloud with an application led approach

Cloud infrastructure used to reduce app deployment times from weeks to a couple of hours1

Unified identity allows connected ecosystems with business partners

Infrastructure as code used along with automated provisioning, configuration, monitoring and self-healing

Seamless integration between on-premises on cloud environments

Processes and teams leverage DevOps practices as a single transparent unit

Industry Trends

1.Avanade & AidMatrix public case study2.IDC FutureScape: Worldwide Cloud 2016 Predictions — Mastering the Raw Material of Digital Transformation, IDC 20153.Survey Analysis: DevOps Adoption Survey Results, Gartner, 2015


cost center




A Client’s Infrastructure Modernization Journey

BUSINESS VALUE

LEGACY CONVENTIONAL MODERNIZEDGlobal Publishing Group’s Journey

Infrastructure ages, maintenance costs rise and risk to the business increases Business

needs change, infrastructure becomes both inefficient and a significant risk to the business

IT begins to extend their environment into the cloud with an application led approach

Cloud infrastructure used to reduce app deployment times from weeks to a couple of hours1

Seamless integration between on-premises on cloud environments

Global Publishing Group

RESULTS REALIZEDNow the client is utilizing seamless hybrid integration with regards to their disaster recovery, with primary workloads in the cloud failing over to on-premises in the event of any downtime.

1.Avanade & AidMatrix public case study


cost center




BUSINESS VALUE


By 2020, 60% of business users will be provisioned, in whole or in part, with office system capabilities from the cloud1

187% three year ROI on moving to Office 365, with the largest benefits coming in employee mobility & productivity2

Typical Journey

Industry Trends

1.The Gartner Scenario for Application Software Providers: Building Digital Transformation in a Bimodal World2.The Total Economic Impact™ Of Microsoft Office 365 For Commercial Users, Forrester, 2016

Workplace Modernization Value Curve

Updated to a modern operating system and introduced collaboration solution

Foundations laid to take advantage of the Digital Workplace

Devices aligned with mobile-first modern business applications and collaboration tools

Seamless user experience across platforms, applications and collaboration in a self-service manner

Begin to integrate key application suites together for real-time messaging, file share and collaboration


cost center



Dated platform limits use of modern applications which constrains modern work styles

Productivity applications running in silos with very limited automation

Integrate device and data security with identity management as well as enterprise voice


BUSINESS VALUE


Updated to a modern operating system and introduced collaboration solution

Foundations laid to take advantage of the Digital Workplace

Devices aligned with mobile-first modern business applications and collaboration tools

Seamless user experience across platforms, applications and collaboration in a self-service manner IT perceived

as an operational

cost center



Dated platform limits use of modern applications which constrains modern work styles

Productivity applications running in silos with very limited automation

UK Insurance Firm

RESULTS REALIZEDSince adopting Windows 10, Office 365 & Skype for Business, the client now has a unified and efficient platform for growth and employees can benefit from a 21st century workplace.

A Client’s Workplace Modernization Journey

UK Insurance Firms Journey



The Multiplier Effect

Workplace platform dated which limits application & infrastructure choices resulting in stagnated business value

New infrastructure options means an informed application migration strategy can be executed, supported by change enablement.

Self healing, hybrid infrastructure enables automated configuration & monitoring of applications & collaboration tools.

Change enablement drives successful user adoption. DevOps is the glue between development and operations.

For the best benefits..

Modernization should be viewed holistically


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• An integrated global team with the resources to deliver both results and value – wherever and whenever.

• 80 Near and Offshore delivery centers across 5 continents in 22 Centers

• 6 specialized studios in digital, cloud, agile and XD

• 15 Centers of Excellence concentrations of highly-trained offshore consultants with key specializations such as cloud computing, dynamics AX, CRM, data & analytics and message & content migration

• Intelligent Tools using automation to accelerate time to value and reduce risk

• Proven methodology supported by Avanade Connected Methods

• Cost modeling assets to maximize value

• Modern engineering platform that minimizes the investment needed to rapidly benefit from the Agile and DevOps promise

• Managed Service that allow businesses to focus their differentiators

• Cloud first mobile first strategy

• Recognized by IDC as the leader in Microsoft Enterprise Application Implementation Services

• Global Mobility Practice with in-house user experience design capabilities

• Agile@Avanade• Avanade has 10% of all

Professional Scrum Trainers (PST) worldwide.

• Unmatched premium skills Cloud strategy, application development and unified communications and collaboration

Why Avanade?

Our Expertise Our Assets, Tools & Methods

Our Global Delivery Network


Avanade’s Offerings

AS A SERVICEApplication Managed Services

Cloud Transformation

INFRASTRUCTURE Modernization Cloud Transformation

APPLICATION Modernization Application DevelopmentApplication Modernization

Cloud Transformation

WORKPLACE Modernization Desktop Modernization

UCC Transformation

©2016 Avanade Inc. All Rights Reserved.©2016 Avanade Inc. All Rights Reserved.

Get on your journey and find out how we can help you with your modernization journey

Next Steps

Assessment or Proof of ConceptIf you already know where you’d like to get started, we can conduct any of a variety of assessments or proof of concepts to get you started and moving on your journey.

Deeper Dive Discussion Engage with one of our subject matter experts in a workshop to discuss in more detail your most relevant area of modernization, be it Applications, Infrastructure or Workplace. Contact us today at:

www.avanade.com/contact

New Economics of IT: Modernization

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