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Eric Tachibana, Professional Services

October 2015

ISM308

Keep Cloud Transformation on Track

Ten Best Practices to Avoid or Break Through

a Stalled Cloud Transformation Program

What to expect from the session

• Learn from research done by AWS Professional

Services to understand why many enterprise cloud

transformation programs stall in the field

• Discuss 10 best practices shared by enterprises

who were able to break through the stall

Most transformation programs

will stall in the field

Stall [stawl] verb

1.1 stop or cause to stop making

progress

1.2 (of a motor vehicle or its engine) stop

running, typically because of an overload

on the engine

accelerate

through the

stall

10%experience a

prolonged stall

at around 20%

adoption

70%never

recover

20%

Here is what we’d like to see

in a cloud adoption…

CUSTOMER 1

0

5

10

15

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1 4 7 10 13 16 19 22 25

CUSTOMER 2

0

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1 4 7 101316192225

CUSTOMER 3 CUSTOMER 4

0

10

20

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50

60

1 4 7 101316192225

0

10

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1 4 7 101316192225

CUSTOMER 5 CUSTOMER 6 CUSTOMER 7

0

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1 4 7 10 13 16 19 22 25

0

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1 4 7 1013161922250

20

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1 4 7 101316192225

STALLED 9 MONTHS STALLED 18 MONTHS STALLED 8 MONTHS STALLED 18 MONTHS

STALLED 15 MONTHS STALLED 8 MONTHS STALLED 14 MONTHS

Jan 2013: What we actually saw in Asia

* Cheerio Score is used as a proxy for growth rates. However, it holds price drops and revenue outliers constant

ESCAPED?

ESCAPED?ESCAPED?

STUCK STUCK

STUCK

STUCK

CUSTOMER 8

0

10

20

30

40

50

60

1 4 7 101316192225

STALLED 16 MONTHS

STUCK

* Cheerio Score is used as

a proxy for growth rates

that hold price drops and

revenue outliers constant

Enterprises behaved the same way globally…

CUSTOMER 9 CUSTOMER 10 CUSTOMER 11 CUSTOMER 12

0

20

40

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80

100

1 4 7 10 13 16 19 22 250

10

20

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1 4 7 10 13 16 19 22 25

0

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1 4 7 10 13 16 19 22 25

CUSTOMER 13 CUSTOMER 14 CUSTOMER 15

0

20

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80

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1 4 7 10 13 16 19 22 25

0

20

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1 4 7 10 13 16 19 22 25

0

20

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1 4 7 10 13 16 19 22 250

20

40

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80

100

1 4 7 10 13 16 19 22 25

STALLED 20 MONTHS

STALLED 9 MONTHS STALLED 18 MONTHS STALLED 12 MONTHS STALLED 25 MONTHS

STALLED 15 MONTHS STALLED 10 MONTHS

accelerate

through the

stall

10%experience a

prolonged stall

at around 20%

adoption

70%never

recover

20%

That’s hundreds of

millions of dollars in

delayed transformation

each year

What if you could

escape the stall?

THE GOOD NEWS!

There are proven tools

we can use

S-curves are a natural law

of product markets

MA

RK

ET

SA

TU

RA

TIO

N

S-curves are made up of

groups of buyers

These groups share buying goals and

buying behaviors

herd

:

S

Because of the differences

between buying groups….

Several crises emerge in the process…

THE CHASM!!!

(this is the BIG one)

Crack 2

Crack 1

The Chasm

occurs because Early Majority and

Early Adopters are so different

It is new to the market

It is the fastest product

It is the easiest to use

It has elegant architecture

It has unique functionality

It is the de facto standard

It has the largest installed base

It has most third-party supporters

It has great support

It has low cost of ownership

s

What they want

is differentEarly Adopters

Early Majority

What does all this mean for you?

Managers in enterprises BEHAVE THE

SAME as consumers in consumer

markets

The Great Stall is actually

Moore’s Chasm!!!

Accelerating through the Great Stall

is the same as Crossing the Chasm

10 things you need to do differently

in your cloud transformation

program…

0 1Admit you’ve got a problem

What made your change initiative successful thus far

is not relevant for the next stage in adoption.

Next step

Do a lean-ux user persona workshop to understand

the early majority in your enterprise.

0 2Change and incentivize the team membersYour cloud enablement team is likely full of innovators,

led by an early adopter, and very poachable.

Next step

Bring in new team members who can open doors into

the Early Majority market, bring key supplementary

skills, and provide lots of positive reinforcement.

0 3Identify the beachhead

You need a strategic market entry project that you can

complete. Your victory will impress follow-on Early

Majority buyers.

Next step

Do a beachhead analysis workshop to develop your

decision rubric and analyze the context.

0 4Identify the bowling pins

Don’t boil the ocean. It’s about momentum, not volume.

Next step

Re-use your beachhead decision rubric, and run a

bowling pin analysis workshop.

0 5Re-position / Re-communicate

Change the communications script to speak to the early

majority psyche.

Next steps

Adopt a cloud-first strategy led from the top.

Throw out your existing communications plan and do a

new one.

0 6Re-prioritize the offering

Deliver the product halo and remember that

transformation != migration.

Next step

Revisit your MVP and start to experiment again with the

offering, but use a new group of target customers.

0 7Address Early Majority org ecosystem

Clear barriers proactively, and don’t bring a knife to a

gunfight – bring in experts here.

Next steps

Put cloud first into vendor RFPs.

Get on the front foot with finance and financial reporting,

security, legal, and procurement.

0 8Be heard and seen

Communicate wins. And then communicate wins. And

then after that communicate wins.

Next step

Develop a communications tactical plan that reflects

Early Majority values, and start delivering it.

0 9Lead, lead, lead

Leaders must stay engaged and visible. They must also

discipline with carrots and sticks.

Next step

Require middle managers to get certified, and

encourage senior managers to set examples by sitting

beside them.

10Automate

It was fine to do things manually in the early phase, but

that will never scale to thousands of apps.

Next step

Get your people trained with DevSecOps and

DevSecOps on AWS. Reuse a Bot Army like GE or a

Simian Army like Netflix.

Admit you have a problem

Change the team members

Identify the beachhead

Identify the bowling pins

Re-position

Re-prioritize the offering

Work on the ecosystem

Be heard and seen

Lead

Automate

Say what?!?

How can we help?

0 1Consultancy Services

Accelerator Programs

0 2 Leverage customer-to-customer

contacts

0 3Broadly train. A few stars

cannot implement an all-in

approach alone

0 4 Facilitate vendor-to-vendor

collaboration

Remember to complete

your evaluations!

Thank you!

CREATIVE COMMONS ATTRIBUTIONSToilet Slide: https://www.flickr.com/photos/japokskee/

Money Slide: https://www.flickr.com/photos/68751915@N05/

Jumping Slide: https://www.flickr.com/photos/vinothchandar/

Book cover Slide: http://www.amazon.com/Crossing-Edition-Collins-Business-Essentials-ebook/dp/B00DB3D81G

S-Curve Slide: http://www.technology.org/2013/06/25/the-long-road-for-electric-vehicles/

Lifecycle vis-à-vis s-curve Slide: http://en.wikipedia.org/wiki/Diffusion_of_innovations

Crossing the Chasm Bell Curve & Summary: http://www.slideshare.net/khberglund/crossing-the-chasm-henrik-berglund

D-Day Slide: http://www.uscg.mil/history/articles/h_normandy.asp