Modernizationdigitalcloud as a multiplier
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Modernization/Digital/Could as business scaler Created by Joshua Fox 704.649.6384 [email protected] • Assumptions: o Managed Services is a sustainable business Model o The Market for managed Services/Support has become progressively more competitive with fewer open competition opportunities o Managed Services has sustainable profitability • Objectives: o Increase Managed Services Revenue § New Clients § Additional Scope within existing Base o Increase Managed Services Margins o Differentiated Model § Tools § Methodology § Process Case Study Client wants to make changes to an application that includes any combination of Digital, Cloud Migration and/or Legacy Modernization. Current application is expensive to maintain and difficult to meet business requirements but pursuing a typical cloud migration is not practical due to the lock-in of the aged technical infrastructure of the application. Current vendor is telling client that the application is too complex and client needs their [current vendor] people to rewrite the application in new technology, but client has concerns about the risk of disruption to business critical operations if the rewrite fails to deliver 100% of current functionality, and seeks alternative approaches. 6 Vendors respond with proposals to move application to cloud and rewrite the application. Proposals include solutions based on 2 common project patterns each of which have unique challenges: • Solution 1: o “Lift and Shift” Approach § Emulate current Application technical environment and move to cloud o Challenge § Cloud will reduce infrastructure cost but there will be no improvements to the maintainability of the application • Solution 2: o Rewrite Approach § Provide a team with each person billable throughout the entirety of the project for a manual rewrite and migration from old to new o Challenge § Technical Risk: This is typical of most providers who do not have a reliable and repeatable methodology; § Business risk: too many instances of late delivery, budget overruns and functionality shortfalls, with disproportionate impacts on business operations § Budget: T&M/body count approach is expensive
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Transcript of Modernizationdigitalcloud as a multiplier
Modernization/Digital/CouldasbusinessscalerCreatedbyJoshuaFox
• Assumptions:
o ManagedServicesisasustainablebusinessModelo TheMarketformanagedServices/Supporthasbecomeprogressivelymore
competitivewithfeweropencompetitionopportunitieso ManagedServiceshassustainableprofitability
• Objectives:o IncreaseManagedServicesRevenue
§ NewClients§ AdditionalScopewithinexistingBase
o IncreaseManagedServicesMarginso DifferentiatedModel
§ Tools§ Methodology§ Process
CaseStudy
ClientwantstomakechangestoanapplicationthatincludesanycombinationofDigital,CloudMigrationand/orLegacyModernization.Currentapplicationisexpensivetomaintainanddifficulttomeetbusinessrequirementsbutpursuingatypicalcloudmigrationisnotpracticalduetothelock-inoftheagedtechnicalinfrastructureoftheapplication.Currentvendoristellingclientthattheapplicationistoocomplexandclientneedstheir[currentvendor]peopletorewritetheapplicationinnewtechnology,butclienthasconcernsabouttheriskofdisruptiontobusinesscriticaloperationsiftherewritefailstodeliver100%ofcurrentfunctionality,andseeksalternativeapproaches.6Vendorsrespondwithproposalstomoveapplicationtocloudandrewritetheapplication.Proposalsincludesolutionsbasedon2commonprojectpatternseachofwhichhaveuniquechallenges:
• Solution1:o “LiftandShift”Approach
§ EmulatecurrentApplicationtechnicalenvironmentandmovetocloud
o Challenge§ Cloudwillreduceinfrastructurecostbuttherewillbeno
improvementstothemaintainabilityoftheapplication• Solution2:
o RewriteApproach§ Provideateamwitheachpersonbillablethroughouttheentiretyof
theprojectforamanualrewriteandmigrationfromoldtonewo Challenge
§ TechnicalRisk:Thisistypicalofmostproviderswhodonothaveareliableandrepeatablemethodology;
§ Businessrisk:toomanyinstancesoflatedelivery,budgetoverrunsandfunctionalityshortfalls,withdisproportionateimpactsonbusinessoperations
§ Budget:T&M/bodycountapproachisexpensive
UnsolicitedProposal
Clienthasanexistingapplicationand/orsuiteofapplicationsthatarenotmanagedefficiently.Mainframeapplicationsarenotdigitalcapable.Applicationsaresupportedmanuallywithalegacyapproachbyanothervendorusingveryminimaltoolsandnoautomation.
DifferentiatedModel
• Understandingtheapplicationo UseIPandtoolstoextractbusinessrules,functionaldependenciesand
databaseschema• UseToolswithrepeatableprocess
o Alltechnicalbenefitsofarewrite,includingintegrateddigitalcapabilitiesandsubstantiallyreducedcostofdownstreammaintenance
o ControlCosto Firmandcredibledeliveryscheduleo EliminateRisk[wecanreallydothis]
• Deploytocloudo Applicationwillbeproperlyre-architectedforcloudenvironment,leveraging
automationtoworkefficientlyoncloudwithquality,maintainablecode• Cost
o WithtoolslikeResQSoft,ClientcanModernizemoreapplications;faster• Maintenance
o ThemoreoftheseapplicationsProvidercanModernizeandmovetothecloudthebetterpositionedtheywillbetodisplaceincumbentproviderandcapturedownstreammanagedservicesontheseapplications
o Financials:Usingthesametoolstoexecutethemigration,Syntelwillbemorecompetitive
§ Pricecanbelower§ Marginwillbehigher
• Businesso Winratewillincreasesubstantiallyo Unsolicitedproposalsaroundknownunderperformingapplicationso Ratio:1/10
§ ForeveryMillioninModernizationthereisapotential10milliondollarsincapturingmanagedservicesbusinessoverthecourseof3years.
o Modernizationcouldreduceclients’runratecostformanagedservicesover3to5yearsandwhileeffectivelyloweringMRCtoclient,includeascheduledmodernizationandcloudmigrationasapartofthemanagedservicescontract.
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