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Enterprise-Grade Hybrid and Multi-Cloud Strategies
Enterprise-Grade Hybrid and Multi-Cloud Strategies

Enterprise-Grade Hybrid and Multi-Cloud Strategies: Proven strategies to digitally transform your business with hybrid and multi-cloud solutions

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Enterprise-Grade Hybrid and Multi-Cloud Strategies

Leadership, Will, and Mindset

In a book on cloud computing, you might find it unusual to encounter an entire chapter dedicated to leadership, will, and mindset. As technology continues to evolve exponentially, enterprises often find themselves in a dilemma; some fall behind the innovation curve due to fear of failure, whereas others start chasing every new trend. This is a direct reflection of the lack of vision and leadership. Before we dive deeper into the world of cloud computing, the purpose of this chapter is to recognize the crucial role of leadership, will, and mindset for a successful digital transformation.

In today’s digital world, an organization’s business agility to react to market demands is directly proportional to its digital maturity and capability. In modern enterprise architecture parlance, IT has evolved into a core pillar of business innovation from just being a traditional cost center. At the heart of every successful digital transformation, leadership, will, and mindset are indispensable. Strong visionary leaders set the vision and strategic direction, shape an organizational culture for innovation, and advocate for enterprise digital transformation to tap into an organization’s full potential for growth and competitiveness.

Digital transformation has become a critical factor in the rapidly evolving technology landscape to drive innovation. It is not merely an option or a trend; rather, it has become a necessity for enterprises to survive, thrive, and remain competitive. Digital transformation involves the integration of digital technologies into all aspects of an organization, fundamentally changing how it operates and delivers value to customers. However, successful digital transformation requires more than just adopting new technologies. The one common attribute among all successful organizations is their ability to innovate and create value for their consumers. Why are some organizations more successful than others, where innovation is almost always natural and does not require external motivation? The answer lies in strong leadership, will, and mindset that can guide, inspire, and cultivate a sustainable culture of innovation. Innovative leaders unleash digital transformation in enterprises by developing a clear vision, fostering an environment for experimentation, promoting customer centricity, and empowering teams to collaborate. In this chapter, we will explore the crucial role of leadership, will, and mindset in setting the pace and tone for an enterprise’s digital transformation. We will also delve into the following:

  • How innovation is NOT just a choice for enterprises in the modern age to sustain and thrive in a competitive landscape
  • The exponential evolution of digital trends across various industries
  • Establishing a process for innovation through the innovation continuum
  • The tale of two enterprises – Kodak and Fujifilm and how leadership, will, and mindset shaped their destiny
  • How can enterprise leaders lead a strategic and sustainable digital transformation?

Let’s try to understand why innovation is not a choice but a necessity through the following case study.

The Blockbuster case study

In the fall of 1985, David Cook founded Blockbuster, which would later emerge as a home for not just video/DVD movie rentals but also as a social space for local movie buffs to meet and socialize. Within the next few years, backed by its success, Blockbuster expanded its operations internationally and became a popular household name. Soon after, Viacom acquired Blockbuster and took it public in 1999. At its peak, Blockbuster had over 9000 stores worldwide and boasted a revenue of USD 5.9 million [1]. Buoyed by the momentum and consumer demand, Blockbuster cemented its position and business model and leveraged its almost monopolized market advantage to penalize loyal consumers for late returns; this is evidenced by the fact that, in the year 2000, roughly 16% of Blockbuster’s revenue came from late fees. By the turn of the century, with the exponential growth of technology, customer preferences and demands were evolving rapidly. Rather than walking into a physical store to rent DVDs, consumers fancied the idea of browsing DVDs on the web and having them delivered to their doorsteps at a palatable subscription fee minus the late fee that Blockbuster was infamous for. Capitalizing on digital disruption and changing customer demands, several new players emerged in the video rental space, such as Netflix and RedBox, offering newer channels such as DVD-by-mail and online streaming services. Despite the shift in consumer demand, digital disruption, and mounting competition, Blockbuster did little to change its strategy and refused to adapt to changing market trends. Ironically, in the year 2000, Blockbuster turned down an offer to acquire Netflix for USD 50 million, which subsequently led to Blockbuster filing for bankruptcy within the decade [2].

The primary factors attributed to the downfall of Blockbuster are the following:

  • Failure to embrace the digital disruption: Blockbuster was comfortable with the existing business model and failed to recognize the shift in industry trends and customer needs and preferences, leading them to dismiss the potential of online rentals and streaming services, which ultimately disrupted the traditional brick-and-mortar video rental model. The company was too slow to adapt to the emerging trends such as online subscription and streaming services, whereas competitors such as Netflix were already capitalizing on digital technologies to offer convenience and accessibility to consumers, causing a dent in Blockbuster’s market share.
  • Failure to create customer value: Blockbuster misplaced its focus on topline revenue rather than creating consumer value. The company failed to generate consumer value while heavily relying on maximizing profits and revenue by charging loyal customers late fees. It also failed to assess the significant consumer value that could be generated by adopting modern digital trends. Competitors such as Netflix offered greater convenience, broader content libraries, personalized recommendations, and subscription models that resonated with consumers. Blockbuster struggled to match the offerings and value propositions offered by its competitors.
  • Poor strategic decisions: Blockbuster made several strategic missteps that further exacerbated its decline. For instance, the company passed on an opportunity to acquire Netflix in its early stages, underestimating the potential of the emerging business model. Blockbuster also pursued late-entry initiatives such as DVD kiosks and online streaming, but these efforts failed to regain lost ground.

There have been several technological innovations that transformed the world forever, from the invention of paper to penicillin and electricity. However, the inventions of the last century, such as airplanes (1903), television (1927), VCRs (1965), personal computers (1971), cellular phones (1973), the internet (1983), the World Wide Web (1989), portable GPS (1990), Google Search (1997), Facebook (2004), YouTube (2005), the iPhone (2007), and Android (2008), have democratized technology advancements to the masses.

Another technological advancement that is fundamentally altering the way businesses innovate is artificial intelligence (AI). In 1950, Alan Turing, in his seminal paper titled Computing Machinery and Intelligence, opened with a thought-provoking question, “Can machines think?” [3]. Since then, AI has undergone rapid evolution and has matured into a disruptive technology that is having a profound impact on almost every industry. AI is powering creative applications, including autonomous vehicles, robotic surgery, fraud detection, and generative AI that creates new art, to name a few.

If we map these disruptive technologies against the time it took for them to penetrate the market, technological advancements in recent times, such as personal computers, the internet, mobiles, social media, and digital payments, only needed a quarter of the time to permeate the market compared to the innovations of previous generations [4]. In fact, modern technology disruptions are only growing exponentially, forcing enterprises across industries to keep up or lag behind [5]. It is important to note that the modern technology innovations of the digital era (highlighted area in the chart below) have exponentially penetrated the world market:

Figure 1.1 – Technological innovations and the time taken to penetrate the world market

Figure 1.1 – Technological innovations and the time taken to penetrate the world market

Let’s compare two revolutionary technological advancements - the automobile and mobile phones. The invention of the automobile disrupted the way we travel, and the invention of mobile phones transformed not just how people communicate but also how modern-day businesses are conducted. Since its invention in the late 19th century, it took the automobile industry over six decades to penetrate the market and become established, versus the advent of mobile phones, which only took a decade. Modern-day technologies evolve at a rapid pace, and it is crucial for organizations to stay relevant.

For mobile device manufacturers, it wasn’t easy to stay abreast of the fast-paced technological advancements and the exponential disruption in communication technology at the turn of every decade: analog cellular (1G), digital cellular (2G), mobile broadband (3G), native IP networks (4G), and new radio (5G); traditional providers, such as Nokia and Motorola, who once commanded significant market share, were phased out by new entrants such as Samsung and Apple [6].

Innovation is NOT optional

Many long-standing enterprises find it difficult to generate organic growth, with younger companies outperforming established players. To put this in context, the average tenure of an S&P 500 company has been declining as the speed of digital disruption is accelerating [7]. In the late 1970s, the average age of an S&P 500 was 35 years, and this number is predicted to further decline to just 12 years by 2027.

Organizations that have stood the test of time amidst digital disruption have adopted strategies that evolve continuously to help them withstand more fluid or uncertain market times. It doesn’t take much for a new entrant or a startup to come up with an idea that disrupts an entire industry. Let’s look at a few companies that veered off traditional methods and revolutionized their respective industries:

  • Airbnb, founded in 2008, is one of the largest accommodation platforms that disrupted the hospitality industry. While traditional hospitality companies owned, maintained, and operated properties, Airbnb revolutionized the tourism industry by serving as an online marketplace for short-term homestays and holiday experiences.
  • Uber, founded in 2009, is the largest ride-sharing company that disrupted the car rental and leasing industry. While traditional car rental companies owned and leased cars to customers, Uber changed the dynamic by offering ride-shares through just a mobile app.
  • Netflix, founded in 1997, started as a DVD rental business and is now the largest streaming platform that has transformed the way consumers rent and watch movies and TV shows. While Netflix does produce its own movies and TV shows, it primarily leases movies and TV shows that can be streamed on its platform.
  • Amazon, founded in 1994 as an online marketplace for books, is the largest online retailer by simply serving as a marketplace platform connecting buyers and sellers, revolutionizing the retail industry, whereas traditional retailers have to own and operate a physical brick-and-mortar store and manage inventory. Since then, Amazon transformed itself into a conglomerate and expanded into several industries.
  • Spotify, founded in 2006, is the largest music streaming service but doesn’t own any music. Instead, it licenses music from record labels and lets subscribers stream it for a fee.
  • Robinhood, founded in 2013, disrupted the financial services industry by offering commission-free trades of stocks and exchange-traded funds and cryptocurrencies, which was never thought possible before. Robinhood democratized trading through a simple mobile app.
  • Teladoc, founded in 2002, is one of the largest telehealth companies that disrupted the healthcare industry by leveraging mobile technology to connect patients and doctors virtually anytime outside of a healthcare facility. Unlike traditional healthcare providers, Teladoc doesn’t employ doctors or have its healthcare facilities.
  • Pillpack, founded in 2013, disrupted the pharmaceutical industry that was traditionally dominated by retail players that operated in a physical space, filling prescriptions for patients. Pillpack ideated and implemented the concept of consolidating multiple pill prescriptions and delivering it to customers’ doorsteps.
  • Chime, founded in 2012, is a challenger bank that offers banking services exclusively through online and mobile, disrupting the banking industry by offering fee-free banking, early paydays, no fee, and no credit check credit cards, forcing traditional players to respond.
  • Rent the Runway, founded in 2009, is a clothing rental company that disrupted the designer clothing industry by allowing customers to rent, subscribe, or buy designer clothes through their online platform. This business model addressed a major consumer concern of overspending and having to own apparel such as event garments, wedding dresses, and ski apparel, which are infrequently used.

One commonality across all these companies is that business disruption is almost always led by modern digital technology. Let us explore how enterprises can innovate and move up the digital frontier.

The innovation continuum

Contrary to the belief that innovation happens in a siloed, vacuum environment, it is actually a systemic and continual process. Innovation requires not only the generation of new ideas but also the implementation and sustained adoption of those ideas. This often involves overcoming significant barriers and challenges, such as resistance to change, regulatory hurdles, or technical limitations. It also requires a systematic approach to identifying and addressing customer needs, understanding market trends, and leveraging available resources and expertise.

Leaders must strive to create a culture and a systematic approach to a culture of innovation. An innovation continuum is critical for enterprises to thrive and grow in today’s competitive landscape. The process of innovation is a set of strategic steps where an organization can take creative approaches to realize its vision, goals, and objectives within a timeline [8]. The following diagram illustrates the stages of the innovation continuum:

Figure 1.2 – The innovation continuum

Figure 1.2 – The innovation continuum

Let’s take a look at each of the stages shown in the preceding diagram:

  1. Ideation: This is the initial stage of the innovation process, where new ideas are sourced and generated through brainstorming, market research, customer feedback, or other sources. The goal is to identify potential areas for innovation and generate a variety of ideas that can be explored further.
  2. Curation: Once a promising idea has been identified, the next step is to curate and develop a concept around the ideas that can be tested and ratified. This can involve the following:
    • Stakeholder surveys (internal or external) to identify problem areas in different forms
    • Explore and identify solutions that are available both internally and commercially
    • Identify the stakeholders of the product in consideration
    • Build out MVPs (minimum viable product) prototypes or a proof-of-concept
    • Determine the viability of the idea across multiple dimensions, such as financial, technological, legal, and security dimensions, and its measurable potential impact

    Ideas that pass curation move onto the prioritization phase, and the ones that don’t are moved to the back burner.

  3. Prioritization: This is an important step where curated ideas get prioritized based on a variety of factors, including customer or market demands, technology, competitive intel, and applicability to core business capability vs. exploratory considerations. Some popular methods that enterprises can leverage are McKinsey’s three horizons model, a portfolio of initiatives, a strategic control map, and a consumer decision journey [9]. Each of these methods caters to different kinds of prioritization factors that influence decision-making.
  4. Solution hypothesis: At this stage, the concept is tested and evaluated to determine its feasibility, usability, and market potential. This can involve assessing product viability, business value, opportunity cost, customer or stakeholder value, and return on investment.
  5. Incubation and development: Once the concept is deemed feasible and viable, the next step is to develop and implement the technology incrementally. This may involve further building out the MVP, designing the product, building the software, securing sponsorship, leadership oversight, and funding, and developing the infrastructure needed to support the innovation.
  6. Integrate, launch, and scale: Once the technology has been developed, the next step is to integrate, launch, and scale to reach a wider audience. This may involve marketing and promotion, building partnerships, incremental releases, or expanding the product’s capabilities to meet the evolving needs of the market.

As every enterprise is unique, leaders in enterprises can choose the appropriate innovation strategy that best fits their vision and objectives. However, it is crucial to create a culture of innovation and put in place a process that drives it. Several modern enterprises have created and funded R&D departments and innovation labs with a primary focus on industry research, technology research, and viability assessment. Leadership sponsorship is key to ensuring innovation centers do not operate in a silo and are embedded into the organizational structure. Let us explore the tales of two enterprises and how leadership played a crucial role in leading the digital disruption and the need to constantly innovate.

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Key benefits

  • Understand the challenges enterprises face with cloud adoption and the importance of leadership vision
  • Learn how to build the foundation for a vendor agnostic cloud-ready enterprise
  • Discover best practices to architect an enterprise cloud strategy and responsibly innovate with emerging technologies
  • Purchase of the print or Kindle book includes a free PDF eBook

Description

In the past decade, cloud technology has evolved from a mere deployment platform into a driving force of innovation. However, navigating the complexities of cloud adoption, especially with a hybrid approach, presents significant challenges. Solving Hybrid Cloud Challenges for Enterprises is your trusted guide to overcome the problems encountered in this process. Written by a principal architect at Google with 15+ years of experience, this vendor agnostic book begins by exploring the case studies of enterprises stepping into the world of the cloud, highlighting the pivotal role of leadership vision and mindset in driving digital transformation. You’ll explore the basics of cloud technology, its impact on various industries, and the challenges of cloud adoption. As you dive deeper, you’ll find real-world use cases of enterprises that have digitally disrupted their respective industries by innovating in the cloud. From assessing the cloud maturity of an organization and designing a cloud strategy to exploring the various facets of cloud transformation, this book will guide you at every step of the way. Finally, you’ll learn how to lead your organization’s cloud transformation journey with emerging technologies. By the end, you'll be well-equipped to design and architect a scalable, cloud-first IT organization.

Who is this book for?

This book is for cloud architects and engineers responsible for and seeking to digitally transform their business through cloud. Enterprise IT leaders will be able to successfully navigate the enterprise cloud transformation complexities with cloud migration strategies, prescriptive frameworks, and practical real-world examples. A basic understanding of enterprise IT functions and operations is assumed.

What you will learn

  • Understand the hybrid cloud and multi-cloud paradigms
  • Cultivate leadership will and mindset for crafting successful cloud transformation
  • Design and architect a scalable and open foundation for a cloud-first IT organization
  • Apply open standards and frameworks to design a vendor-neutral cloud foundation
  • Understand the cloud adoption frameworks and conduct maturity assessments
  • Realize tangible business value through cloud adoption initiatives

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Publication date : Apr 26, 2024
Length: 362 pages
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Table of Contents

16 Chapters
Part 1: Challenges with Cloud Adoption at an Enterprise Scale Chevron down icon Chevron up icon
Chapter 1: Leadership, Will, and Mindset Chevron down icon Chevron up icon
Chapter 2: A Primer on the Cloud Chevron down icon Chevron up icon
Chapter 3: Enterprise Challenges with Cloud Adoption Chevron down icon Chevron up icon
Part 2: Succeeding with Hybrid Cloud and Multi-Cloud Chevron down icon Chevron up icon
Chapter 4: Building the Foundations for a Modern Enterprise Chevron down icon Chevron up icon
Chapter 5: An Enterprise Journey to Cloud Transformation Chevron down icon Chevron up icon
Chapter 6: Building an Open and Nimble Cloud Framework Chevron down icon Chevron up icon
Chapter 7: Hybrid Cloud Use Cases Chevron down icon Chevron up icon
Part 3: Lead and Transform Your Business with Cloud Chevron down icon Chevron up icon
Chapter 8: Architecting a Cloud-Ready Enterprise Chevron down icon Chevron up icon
Chapter 9: Facets of Digital Transformation Chevron down icon Chevron up icon
Chapter 10: Leading and Innovating with the Cloud Chevron down icon Chevron up icon
Chapter 11: ESG and Sustainability Chevron down icon Chevron up icon
Index Chevron down icon Chevron up icon
Other Books You May Enjoy Chevron down icon Chevron up icon

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Kunal May 15, 2024
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Very well articulated
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Emma Flanders May 07, 2024
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"Enterprise-Grade Hybrid and Multi-Cloud Strategies" is a well-written, informative, and practical guide that will equip readers with the knowledge and skills needed to navigate the ever-evolving world of hybrid and multi-cloud computing. It is a valuable addition to the library of any IT professional or organization looking to leverage the power of the cloud.Another unique feature of this book is that this is a provider agnostic book and the principles covered can be leveraged by organizations regardless of the choice of cloud providers.
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Danielle May 26, 2024
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This book is a testament to the transformative potential of hybrid cloud architectures across industries. By highlighting use cases ranging from financial services to retail, Sathya underscores the practical application of hybrid cloud solutions in driving operational efficiency, cost savings, and innovation in today's competitive business landscape.
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Chio May 25, 2024
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A key takeaway from 'Enterprise Grade Hybrid and Multi Cloud Strategies' is its emphasis on not just moving to cloud but innovating with cloud technologies. Through this book Sathya challenges readers to move
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Kush Patel May 16, 2024
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This is a fascinating book to read. It provides in-depth knowledge about cloud technologies, proven strategies, and effective frameworks to drive seamless digital transformation. Since Hybrid and multi-cloud are currently a market trend, it covers all strategy fundamentals.
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