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Enterprise Service Cloud Migration

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Enterprise Service Cloud Migration

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© © All Rights Reserved
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Enterprise-

as-a-Service:
Cloud in a Box

WHITE PAPER

Abstract
Cloud is now a top consideration for every CXO as it is a platform for change,
an engine for exponential growth and the backbone of digitalized
enterprises. According to IDC, by 2024, worldwide spending on cloud
services, including hardware and software components and managed
services opportunities, will surpass $1.0 trillion1. Enterprises now view spend
on cloud and cloud skills as a necessary investment, not just an operating
expense. They aspire to be data-driven organizations powered by cloud
platforms, which enable re-imagined business processes and
ecosystem-based business models.

This paper explores an enterprise-as-a-service (EaaS) approach that helps


maximize the value from cloud by choosing the right-fit cloud deployment,
service model and migration options. One that helps enterprises adopt
Business 4.0TM levers including mass customization, improving
speed-to-market, embracing risk, and leveraging a broader ecosystem
to meet the demands of the future.

1. https://www.idc.com/getdoc.jsp?containerId=prUS46934120
WHITE PAPER

Why a business-focused,
cloud-first strategy matters
Digital enterprises are leveraging digital technologies with cloud as the
enabling digital fabric.

A TCS study2 found that by 2018, as many as 74% of Leaders, 65% of Early
Adopters and 62% of Followers had adopted cloud. These numbers of cloud
being a factor of success are relevant during the COVID-19 pandemic as well.
The enterprises leading in cloud adoption have been more agile and resilient
in the face of disruption. TCS COVID-19 Business Impact Survey 20203
confirms that most enterprises low on digital capabilities suffered more,
in contrast to the ones with a good digital footprint across customer
experience, automation, intelligence and cloud.

Transformation Continuum: Accelerating Business Value with Cloud as the New ERP

CoinTM
Transformation Maturity

Paas/Saas/Faas/Caas
Business
Model
Leverage
Eco-System Model
IaaS
Harmonization
Enterprise
Standardization
Platform
System
Upgrade/
Automation
Time
Leverage the best-of-breed solutions with cloud as the unifying fabric.

Figure 1: Three stages of cloud-based transformation continuum

2. https://www.business4.tcs.com/
3. https://www.tcs.com/business-impact-survey-2020
WHITE PAPER

Most of these Business 4.0 leaders had adopted a cloud-first approach for
their digital transformation. Some of the key objectives that drive such an
approach include (see Figure 2):

Customer &
Personalizing customer and employee Employee
Business
experiences to drive engagement Experience
Operations
and growth Efficiency

Leveraging latest digital technology such


Collaboration
as AI, edge, 5G, IOT and machine learning
& New Ways
of Engaging
Automating business workflows and
jumpstarting enterprise transformation
New &
Optimizing IT and human costs to bring in Emerging
operational agility and product innovation Technology
Deployment
Ensuring virtual collaboration and
monitoring for location independent teams Enterprise
Modernization
Modernizing enterprise IT Resource
& Cost
Optimization

Figure 2: The drivers of cloud adoption

These cloud adoption drivers resonate with Business 4.0TM behaviors that
enterprises should adopt to stay ahead in the technology-first business era.
For example, an IoT ecosystem that generates burgeoning volumes of data
is sustainable only when backed by the limitless storage capacity of cloud.
Similarly, many AI-based applications require the cloud’s vast
number-crunching power to generate and act on insights reinforcing
cloud as the enabling digital fabric.
WHITE PAPER

Taking complex cloud decisions


Cloud provides digital enterprises a flexible, configurable, best-of-breed
platform enabling them to scale and be ready to meet the demands of the
new digital future. Enterprises today must make a host of complex decisions
while moving to cloud, including the choice of deployment models, service
models and migration options.

Cloud deployment models


There is no one type of deployment model that is right for everyone. Each
model (private, public, hybrid, multi-cloud) has its own characteristics. While
some are more popular than others, the choice depends on the specific
needs of an enterprise (see Figure 3). There are several approaches toward
determining the best model for your organization.

Cloud Deployment Models


Private Hybrid
Hybrid cloud is a solution that combines a private cloud with
Cloud computing services offered either over the internet one or more public cloud services, with proprietary software
or a private internal network and only to select users enabling communication between each distinct service.
instead of the general public.
Scalable Compatibility
Dedicated, secure Expensive
Cost-effective Integration challenges
Greater control Scalability
Greater flexibility Complex

Multi
Public
Multi-cloud is a strategy where an organization leverages two
Public clouds are available to the general public, and data or more cloud computing platforms to perform various tasks.
are created and stored on third-party servers. Multi-cloud strategy can include the use of a hybrid
environment but relies on more than one public cloud.
Scalable Lack of customization
Avoid vendor lock-In Potential security risks
Inexpensive Potential latency
Cost optimization Management and operational challenges
Governance issues
Low latency

Figure 3: Cloud deployment models have unique characteristics

These include a workload-centric, or a bottoms-up approach, where a


workload is analyzed to determine the most suitable cloud computing
deployment model. Multiple factors, including technology fit, operational fit,
and cost, are factored into making the decision. For example, a high-tech
company can consider an electronic design automation (EDA) workload
and performance needs while deciding on a deployment.
WHITE PAPER

An organization-centric, or a top down, approach in contrast involves taking


a holistic view for determining a cloud computing deployment model that
considers business agility and growth, competitive differentiation, operational
preference, regulatory requirements and capex-versus-opex preferences. For
example, an aero and defense company with a unit serving Department of
Defence, will have to address International Traffic in Arms Regulations (ITAR)
requirements, alongside their growth and transformation programs.

Cloud service models


There are various cloud service models available: software-as-a-service (SaaS),
platform-as-a-service (PaaS), infrastructure-as-a-service (IaaS),
function-as-a-service (FaaS) and container-as-a-service (CaaS). Enterprises,
based on their business requirements, should choose the appropriate
service model. Cloud services can include software, data storage, databases,
servers, networks, computing and other services that are accessible
on-demand through internet. Each service provides a different level
of abstraction (see Figure 4).

More Control Less Control

On Premise Colocation Hosting IaaS PaaS SaaS


Data Data Data Data Data Data

Application Application Application Application Application Application

Databases Databases Databases Databases Databases Databases

Operating System Operating System Operating System Operating System Operating System Operating System

Virtualization Virtualization Virtualization Virtualization Virtualization Virtualization

Physical Servers Physical Servers Physical Servers Physical Servers Physical Servers Physical Servers

Network & Storage Network & Storage Network & Storage Network & Storage Network & Storage Network & Storage

Data Center Data Center Data Center Data Center Data Center Data Center

Customer Managed Vendor Managed

Figure 4: Cloud service models cover a range of functions


WHITE PAPER

Cloud provides industry-wise advantage and each cloud model offers specific
features and functionalities. It is crucial for enterprises to understand the pros
and cons of different models, and how each of them can be leveraged for
various functions to design an optimal strategy.

Cloud migration options


With multiple options available for cloud migration, the process of decision
making and moving some or all of an enterprise’s digital operations to the
cloud can be overwhelming. To select the appropriate strategy, business
leaders should clearly define their need, analyze the current state, and outline
the immediate, near- and long-term benefits that they seek from cloud
transformation (see Figure 5). The one-size-fits-all approach does not work in
making these decisions as each enterprise has a unique management
thought process, capex bandwidth, savings accrual view, technical debt and
agile maturity.

Time To Migrate (Cost , Effort & Skills) No Migration

Repurchase Rehost Replatform Refactor Retire Retain

Move from Rehosting of First, support Making major Remove Identify


perpetual application in legacy-moderniza changes to the applications that applications in
licenses to a another hardware tion requirements application’s code are no longer the portfolio that
software-as-a-ser environment by modifying or or configuration needed. are simply not
vice model. For without changing extending the in order to move candidates for a
example, move the app’s existing code; it to the cloud cloud migration,
from customer architecture then take without in which case
relationship the rehost or impacting its they may need
management to refactor route external behavior. to stay put.
Salesforce.com to the cloud.

Figure 5. Factors to consider when deciding the cloud migration strategy


WHITE PAPER

Why enterprise-as-a-service
There are various ‘as a service’ models and deployment options available
that make it difficult for enterprises to choose which option to adopt for
their business and a specific functional area. To untangle this complex
decision-making process, enterprises need to establish a cloud-enabled
business and IT vision --a reimagined operating model for each enterprise
function. This involves three key steps.

1. Establish a hybrid cloud and multi-cloud strategy with a specific


cloud service model.

2. Develop a business-aligned cloud migration and modernization


roadmap with defined business case.

3. Establish a cloud business office (CBO), a champion for cloud-enabled


transformation management to maintain guardrails and manage
realization of cloud value.

To simplify the cloud transformation journey and achieve speed to benefits,


organizations should adopt a ‘unifying approach’ or enterprise-as-a-service
(EaaS). This ‘cloud in a box’ solution maps various industry-specific business
functions and processes to a corresponding cloud service model and
platforms while recommending an optimal path forward for the enterprise.

Cloud in a box:
A differentiated approach
The EaaS approach is an opportunity to leverage decades of investments in
digital solutions, cloud-native technology and co-innovation with cloud
service providers and other emerging technology providers.
WHITE PAPER

This approach involves industry-specific maps of business functions and


processes with recommended cloud service models, along with best-fit
deployment model and cloud platforms. It helps cater to individual industry
needs through industry variants (for example, manufacturing, healthcare,
retail, banking and financial services).

Apart from adopting an EaaS approach, organizations should leverage the


business process management (BPM)4 concept where an enterprise is
modelled using related Level 1 business processes such as source to pay,
order to cash, record to report, prospect to customer, plan to produce, and
hire to retire (see Figure 6). These business processes can be further divided to
L2 and L3 sub-processes, which will then be enabled by a digital catalog of
use cases and mapped to a best- fit cloud deployment and service model.

The Enterprise-as-a-Service (EaaS) Process


Recommendations

Industry -specific Contextual Containerized


Fixed Asset
Public
ce
Budgeting Tax Management Accounting Solution Maps Knowledge Digital Accelerators
an
Fin Treasury Financial Financial
Performance Mgmt. Reporting

Private
Strategy
Change

GL Accounting Governance Risk FP & C


Management

& Control
Campaign

Supply Finance Marketing Procurement HR Hybrid


Intelligence

Chain
Market

Environmental Inbound Warehouse


Compliance Logistics Management Enterprise’s Process Data
Deployment Model &
Marketing
Digital

Data
Management

Vendor Selection
Salesforce
Strategy
Pricing

Inbound Production Quality &


Logistics Scheduling Compliance Cloud Deployment Models SaaS
Sales Data
Manage
Commissions
Incentives &

IaaS PaaS
Sales Performance
Management

PaaS

les CaaS SaaS IaaS


Inbound
Logistics
Procurement Manufacturing
& Sa
t ing
rke FaaS BPaaS
Ma Cloud Service Model
Supply Chain Management

Figure 6. The EaaS process

Ready-to-deploy, best-in-class containerized digital use cases are key enablers


for the EaaS approach that can lead to 20-40% faster value realization through
shorter planning, design and implementation cycles, better executive and
stakeholder alignment. These will help drive perpetual
value realization for the organization.

4. https://bpm.com/what-is-bpm
WHITE PAPER

For example, the manufacturing industry has various business processes such
as plan to produce, hire to retire, record to report, order to cash and prospect
to customer (see Figure 7). This approach helps map the underlying L2
business processes such as demand planning, supply planning, environment,
health, and safety, quality management to SaaS, IaaS, PaaS and CaaS service
models repectively. This mapping can provide a jumpstart to the cloud
journey leading to faster realization of cloud benefits.

Enterprise-as-a-Service Solution for Manufacturing


Industry Ecosystem
Variants
LS, HC, PS & ER BFSI MFG & Utilities Retail & TTH CMI Others

RTR
Investment
1 Manufacturing Financial Planning Consolidation Planning
Management
2 Retail
AR AP Accounting Compensation
Management
Administration

GL Treasury Asset Management


Benefits
Management
Talent

Demand Supply Manufacturing


Planning Planning
Organization
Structuring

HTR
Separation
Employee
Onboarding

Quality Maintenance EH&S n Industry


Management
Recruiting
Payroll
Management

IaaS
Time

BPaaS Inbound Internal Outbound/


XaaS Warehouse Global Trade
SaaS
CaaS
FaaS PTP
PaaS
DaaS
NaaS Digital Use Cases

Figure 7. An EaaS model for the manufacturing sector

The Bandwagon of Faster Value

Taking the EaaS approach removes ambiguity by providing an in-depth


mapping of cloud service models and solutions which are easily configurable
by industry and business. As more and more organizations adopt the EaaS
approach, it will help realize greater speed to value and enable them to
leverage cloud innovation. Further, the system integrators, managed service
providers and cloud service providers have a huge opportunity to embrace
this model and provide value added strategy.
WHITE PAPER

About The Authors

Parthiv Shah
Global Head,
Cloud Strategy & Transformation, TCS

Parthiv, a partner with TCS,


is responsible for building
trusted advisory
relationship and delivering
digital transformations. He
has more than 24 years of experience
helping large companies drive global
complex multi-tower enterprise
transformation initiatives. He is recognized
for his thought leadership and ability to
drive innovative solution across supply
chain, IT and data management areas.

Dhaval Jindal
Consultant,
Cloud Strategy & Transformation, TCS

Dhaval has more than 10


years’ experience working
with clients in financial
services, human capital
management and
healthcare industries, providing guidance on
their digital transformation journeys. His
areas of expertise are digital strategy,
ecosystem design and large enterprise
transformations. He holds an MBA degree
with a specialization in strategy and
business analytics. Dhaval is a Certified
Scrum Master (CSM) and PMI- Agile Certified
Practitioner (ACP). Contact

Niraj Pandita Visit the Consulting page on www.tcs.com


Consulting Partner,
Cloud Strategy and Transformation, TCS Email: [email protected]

Niraj has more than 20


years’ experience helping
About Tata Consultancy Services Ltd (TCS)
clients with cloud
transformations, enterprise Tata Consultancy Services is an IT services, consulting and business solutions
modernization, digital, AI, organization that has been partnering with many of the world’s largest businesses in
automation, enterprise applications and
their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive
strategic outsourcing. He has worked across
powered, integrated portfolio of business, technology and engineering services and
multiple cloud transformations including
advisory, platform selection, discovery, solutions. This is delivered through its unique Location Independent AgileTM delivery
modernization, migration and operations. model, recognized as a benchmark of excellence in software development.
Niraj has worked for global customers
A part of the Tata group, India's largest multinational business group, TCS has over
across banking and financial services,
pharmaceuticals and life sciences, 453,000 of the world’s best-trained consultants in 46 countries. The company
consumer products, travel and generated consolidated revenues of US $22 billion in the fiscal year ended March 31,
transportation, and manufacturing. 2020, and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE
Corporate Marketing | Design Services | M | 04 | 21

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award-winning work with communities across the world have earned it a place in
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Global Sustainability Index and the FTSE4Good Emerging Index.

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