5. Cloud Adoption Framework

Introduction

Cloud Adoption Framework

Cloud Adoption is strategic move by an Organization to leverage cloud in their business

Cloud adoption framework for Azure is a Set of tools, best practices, guidelines and documentation to help companies with this journey

Strategy

Steps 

• Motivations (WHY MOVE?)
• Motivation Triggers
  • Migrations
    • Cost Savings
    • Reduction in Complexity
    • Operation optimization
    • Increased business agility
  • Innovation
    • Global Scale 
    • Customer Experience IMprovements 
    • Transformation of products or services 
    • Market disruption
• Business Outcomes (WHAT TO MEASURE?)
  • What to Measure – Defined, concise and observable outcome captured by a specific measure.
    • Revenue
    • Profit
    • Cost
    • Global access
    • New Markets
• Business Justification (WHAT’S MY ROI)
  • What is my return of investment ? – Develop a business case to validate the financial model that supports your motivations and outcomes.
  • Azure TCO(Total Cost of Ownership calculator)
  • Azure Pricing Calculator
  • Azure Cost Management
• First Project
  • Business Criteria
    • Currently Operating 
    • Dedicated owner
    • Strong motivation to move
  • Technical Criteria
    • Minimum dependencies and assets

Strategy is about defining BUSINESS JUSTIFICATION & OUTCOMES

Plan

Key Steps

1. Digital Estate(INVENTORY OF ASSETS) 

Five R’s OF Rationalization

1. Rehost
2. Refractor
3. Rearchitect
4. Rebuild
5. Replace

2. Initial Organization Alignment 
3. Skill Readiness Plan
4. Cloud Adoption Plan

In planning we create Actionable Plan

Ready

Key Steps

1. Azure Setup guide
2. Azure Landing Zone
3. Extend Landing Zone
4. Best Practices 

Ready Prepare Azure Env

Adopt

Key Steps

1. Migrate
   1. First Migration
   2. Migration Scenarios
   3. Best Practices
   4. Process Improvements 
2. Innovate
   1. Business Value Consensu(Value To Strategy)
   2. Innovation Guide(Tools)
   3. Best Practices
   4. Process Improvements

Adopt is implementing migration and innovation

Govern & Manage

Key Steps

1. Define governance solutions
   1. Business Needs
   2. Agility
   3. Control Risks
2. Manage Cloud Environment (Cloud Operations)
   1. Stability
   2. Costs

Business Commitments

Governance is about making sure to Comply, Control, and secure

Manage is about operating and Optimizing

Organize

Roles & Responsibilities

Core tenets of Security, Privacy, and Compliance.

Microsoft Privacy Statement

Collection, Purpose and usage of personal data for all MS offers

Online Service Terms(OST) 

License terms (use rights) for Microsoft online products and services 

Data Protection Addendum

In depth specification on processing and security of personal and customer data as well as obligations of the customer and Microsoft.

Trust Center

Single place for organizations to review security, privacy and compliance of Microsoft online services.

Azure Compliance Docs

Compliance documentation for azure services.

Azure Sovereign Regions 

Provide Azure services in markets with stringent regulatory requirements

• Azure Government is designed for the US government
• Azure China is designed for the Chinese market.

Cost-Affecting Factors 

Resource Types

All azure services(resources) have resource-specific pricing models. Typically consisting of one or more metrics.

What kind of service do we use ?

• CPU 
• MEMORY
• UPTIME

Services

Azure specific offers(Enterprise, web Direct, CSP, etc.) have different cost and billing components like prepaids, billing cycles, discounts, etc.

What is our Azure offer type

• Azure Free
• Pay as you go 
• MPN
• Visual Studio
• Enterprise
• Cloud Solution Provider

Location

Where are our services located

Running Azure services vary between Azure regions

Bandwidth/Traffic

How much data do we move in and out of Azure ?

Network traffic when uploading(inbound/ingres) data to Azure or downloading(outbound/egress) from Azure.

Cost Reduction Methods, Pricing & TCO Calculators

Reservations

• Reserved Instances – Azure  Virtual Machines 
• Reserved capacity – Azure Storage, SQL Database vcores, databricks DBUs, Cosmos DB RUs
• Software plans – Red Hat, Red Hat OpenShift, SUSE Linux, etc

Reservations are made for 1 or 3 years period

SPOT VM

How it works

• Significant discount for Azure VMs
• Capacity can be taken away at any time 
• Customer can set maximum price after discount
• Best  for interruptible workloads(batch processing, dev/test environments, large compute workloads, non-critical tasks, etc.)

Hybrid Use Benefit

Use existing licenses in the Azure

• Windows Server
  • Azure VM
• RedHat
  • AzureVM
• SUSE Linux
  • AzureVM
• SQL Server
  • Azure SQL Database
  • Azure SQL Managed Instance
  • Azure SQL Server on VM
  • Azure Data Factory SQL Server Integration Services

Azure Pricing Calculator

 Estimate cost of Azure services

Total Cost of Ownership(TCO ) Calculator 

Compare datacenter versus Azure workloads

Azure Cost Management

Summary

• Centralized service for reporting usage and billing of Azure environment
• Self – service cost exploration capabilities
• Budgets & alerts
• Cost recommendations 
• Automated exports

Cost Management 

Minimizing Costs

• Azure pricing calculator to choose the low-cost region
  • Good latency
  • All required are available 
  • Data Sovereignty/Compliance requirements
• Hybrid use benefit and azure reservations
• Azure Cost Management monitoring, budgets, alerts and recommendations 
• Understand service lifecycle and automate environments
• Use auto scaling features to your advantage
•  Azure Monitor to find and scale down underutilized resources
• Use tags & policies for effective governance

SLA and Composite SLA In Azure

SLA

• Service Level Agreement (SLA) is a formal agreement between a service provider and a customer.

• SLA is a promise of a service’s availability(uptime & connectivity)

• Availability is a measure of time  that a service remains operational

• Per month Availability

• Each Service has its own SLA

• Ranges from 99% to 99.999%

• Free services typically don’t have an SLA

• Broken SLA means service credit return(discount)

Composite SLA

Factors that impact SLA –  Lowers your SLA

• Adding more Services 
• Free/preview services

Factors that impact SLA –  Raises your SLA

• Adding Redundancy
• Service Configuration

Different services(ex. Cosmos DB vs Table Storage)

Different service tiers(SKUs, ex. Standards vs. Premium vs. Business Critical)

Key Characteristics 

• Formal agreement between Microsoft & the customer 
• Calculated as a percentage of service availability(uptime & Connectivity) (a promise)
  • Breaking the SLA provides a discount from the final monthly bill.(Service Credit)
• Higher-tier services offer better SLAs
• Free services typically have no SLA(0% SLA)
• Preview services have no SLA
• Composite SLA is a combined SLA of all application components 

Service Lifecycle in Azure

Public preview

Key Information

• No SLA
• Some services have no support coverage
• Limited region availability
• Limited functionality
• Pricing changes
• Direction Changes
• Azure Portal Previews(https://preview.portal.azure.com)

Summary

• Every service in Azure follows its own service lifecycle.
• Public preview is a ‘beta stage’ of the service available to the general public use.
  • Features can be in preview stages
  • Designed for testing, not production solutions 
• General availability is the ‘production’ release of the service.