Nigel Green

Partner, UK

Hong Kong, July 2016

It’s hard to recognise innovation until it’s

happened…

“If I had asked

people what they

wanted, they

would have said

faster horses.”

The familiar doesn’t always help us

understand the new.

Horses & unicorns

The familiar versus the exotic.

TRADITIONAL FIRMS BORN-DIGITAL FIRMS

Who behaves like

unicorns?

Think & behave disruptively.

http://www.mckinsey.com/Industries/High-Tech/Our-Insights/Grow-fast-or-die-slow-Why-unicorns-are-staying-private?cid=digistrat-eml-alt-mip-mck-oth-1606

“Since 2013, an increasing number of

technology companies have achieved

“unicorn” status: valuations upward

of $1 billion in private markets.“

- McKinsey, May 2016

Who behaves like

unicorns?

We’ve all heard of them,

but have they been…http://www.mckinsey.com/Industries/High-Tech/Our-Insights/Grow-fast-or-die-slow-Why-unicorns-are-staying-private?cid=digistrat-eml-alt-mip-mck-oth-1606

“Since 2013, an increasing number of

technology companies have achieved

“unicorn” status: valuations upward

of $1 billion in private markets.“

- McKinsey, May 2016

NOW PUBLICY QUOTED

BUT STILL THINK LIKE A

UNICORN.

…hidden in plain sight?

Hidden in plain sight?

Unicorn’s are living among the “horses” …

and eating their lunch!

Efficiency

Resiliency

What the hidden

magic delivers

Revenue

Agility

Discovering how is the question.

Agility - development processes that used to take months now take weeks.

Efficiency - reducing the amount of infrastructure required to run a given application

by 50%.

Resiliency - avoid a single point of failure, very limited downtime, can scale

seamlessly on demand.

Revenue - faster iteration and less downtime add up to more revenue.

Who isn’t looking for these?

• General Electric

• Hewlett Packard

• Capital One Financial Corp.

• Goldman Sachs Group Inc.

• The Guardian Media Group (UK)

• Thomas Cook PLC (UK)

• William Hill PLC (UK)

• ITV (UK)

• Nike

… and many more..

Adoption is looking like a hockey stick…

The Horses are looking

for their inner Unicorn.

Customer Service, Revenue, Cost, Merger &

Compliance challenges.

Mr. Black

the CIO

“Reduce IT running

Costs”

“We must keep our Regulator happy!”

“We need your help to

modernise our Retail stores”

“Our customersneed one great experience – in store & mobile”

Mr. Black joins ACME

(early 2015)? ?

“We plan to buy the 2nd largest firm. Be ready for a merger –

we want one IT solution”

A hunch he could learn from the digital

unicorns – even though he was starting from a very different point..

What Would the

Unicorns Do?

SaaS

IaaS

DevelopersPaaS

Do Work On

Use Resources Of

Build Solutions On

Users

Developers

Broadly adopted Cloud usage.

Cloud Mode 1: Horses

Outsourced IT

Firewall

XaaS XaaS

XaaS

XaaS

XaaS

XaaS

XaaS

Cloud Mode 2: Unicorns

Cloud Everywhere

http://internetofthingsagenda.techtarget.com/definition/fog-computing-fogging

Private Cloud(s)Public Cloud(s)

Everything’s a Service on the Cloud ecosystem.

Firewall

And there’s more – A seismic shift in

computing.

A much bigger change than Mainframe to

Client Server.

The New Compute

Platform

XaaS

Services everywhere: an ecosystem of macro

and micro services.

Services, services &

more services“I like the simple

elegance of a Cloud Services-

Everywheremodel”

“We can be flexible on how we source the

services we need – externally or

internally”

Firewall

XaaS XaaS

XaaS

XaaS

XaaS

XaaS

Private Cloud(s) Public Cloud(s)

“We should focus first on the business

differentiating services…”

“…and how to establish

foundation that will enable the whole services

ecosystem”

Business Unit Leads Analysts & UX specialists & Technicians

NEW SMEsENTHUSIATIC INCUMBANTS

A small team with one shared vision.

A new way of

working

The Progranme

Director

The

ConsultantThe DesignerThe CIO

NEW LEADERSHIP TEAM

A culture of agile experimentation.

Unicorn culture

“…cloud-oriented architecture should be prototyped and

refined by small "innovation teams" that can perform a

scouting mission to specifically trailblaze how the organization

and culture can be adapted to the new cloud-based

world of software development. These missions should not

be throwaway projects, but a high degree of risk is implied, and the

culture of "fail fast and fail often" should be the mantra”.

IDC February 2016

Business Unit Leads Analysts & UX specialists & Technicians

NEW SMEs ENTHUSIATIC INCUMBANTS

The Progranme Director

The Consultant

The Designer The CIO

NEW LEADERSHIP TEAM

The ACME challenge: deliver a

working prototype within 90

days.

Focus on the Customer & Revenue first.

The CIO’s strategy“Reduce IT

running Costs”

“We must keep our Regulator happy!”

“We need your help to

modernise our Retail stores”

“We plan to buy the 2nd largest firm. Be ready for a merger – we want one IT

solution”

“Our customers need one great experience – in store & online”

• IMPROVED CUSTOMER SERVICE:

• Create an Omni-Channel experience, in store or mobile.

• Establish new levels of situation awareness through near real-time

analytics and use it to improve customer insight.

• Improve the in-shop environment: happier staff = happier customers.

• IMPROVED REVENUE:

• attracting new customers & retaining old through improved interaction

at all touch-points.

• ability to respond to new demands and new routes to revenue

through micro-marketing.

Demonstrate route to all four business

outcomes, within the 90 Days.

The CIO’s strategy“Reduce IT

running Costs”

“We must keep our Regulator happy!”

“We need your help to

modernise our Retail stores”

“We plan to buy the 2nd largest firm. Be ready for a merger – we want one IT

solution”

“Our customers need one great experience – in store & online”

• AVOIDED COSTS:

• License cost reduction through the replacement of databases and

middleware with Open Source Software.

• Create a platform for rapid integration post M&A.

• EXCEED REGULATORY MANDATES:

• Open-up data and create process transparency through business

event-logging leading to exceptional process auditability.

Significant enough progress was

made within 30 days to gain the

support of the entire C-Suite.

The story continues…

Of Horses, Unicorns

…and Small-pigs

EXPLORE THE POSSIBILITIES

1. ASK “WHAT WOULD THE UNICORNS DO?”:

Take a lead of the “Born-digital” firms and tailor to your firm’s needs.

Recognise “The Cloud” is the next-gen compute platform.

Leverage Open Source Software & commodity Cloud services.

Create a route-plan to Cloud-Native Applications (e.g. Microservices)

Architecture.

Adopt an agile, adaptive & evolutionary approach.

TOP-LEVEL BUY-IN

GET TOP-LEVEL SUPPORT:

Define measurable, business relevant, principles …

…and then manage to them.

Show both tactical and strategic value to the business early.

Take C-suite on a journey of low-risk incremental steps that

demonstrate clear value-for-money that strengthens the

strategic business case.

FASTER THAN EVER BEFORE

CREATE A FAST-PACED DELIVERY TEAM:

Use experts that understand the “vision” to get things started quickly.

Establish new ways of working through a separate expert-led team.

Demonstrate results frequently clearly pinned to business outcomes.

Create the “seed of change” and then propagate it.

Learn from the Unicorns, then be bold,

experiment, and manage risk.

Experiment

So what about “the architecture”?

Cloud-native

Design

Open Source

Software

Cloud Leverage

Learning from the

Unicorns – HOW?

DevOps &

Continuous Delivery

Distributed Organisation

Event-driven Design

Autonomous Services

(Microservices)

IT Value Centre

A handful of key factors seemed to define

their approach to IT.

Efficiency

Resiliency

Revenue

Agility

Open Source

Software

Cloud Leverage

DevOps &

Continuous Delivery

Distributed Organisation

Event-driven Design

Autonomous Services

(Microservices)

IT Value Centre

The two areas that have the most impact on

Enterprise IT Architecture.

Learning from the

Unicorns – HOW?

Efficiency

Resiliency

Revenue

Agility

Firewall

XaaS XaaS

Services Come In Different Sizes

XaaS

XaaS

XaaS

XaaS

XaaS

Services, services &

more services

Fog ComputingPrivate CloudPublic Cloud

Firewall

XaaS XaaS

Services Come In Different Sizes

XaaS

XaaS

XaaS

XaaS

XaaS

Services, services &

more services

Fog ComputingPrivate CloudPublic Cloud

• General Electric

• Hewlett Packard

• Capital One Financial Corp.

• Goldman Sachs Group Inc.

• The Guardian Media Group (UK)

• Thomas Cook PLC (UK)

• William Hill PLC (UK)

• ITV (UK)

• Nike

… and many more..

They’re all adopting…

Remember these?

http://www.businesswire.com/news/home/20160315005089/en/IDG-Connect-Microservices-Firms-Battle-Monolithic-Restrictions

Microservices

Over half of organizations across the US, UK, India and Israel plan to deploy microservices

to improve their agility in the next 12 months, according to new research by IDG Connect –

March 15th 2016

http://www.businesswire.com/news/home/20160315005089/en/IDG-Connect-Microservices-Firms-Battle-Monolithic-Restrictions

Microservices

Adoption

http://scn.sap.com/blogs/geetikashukla/2015/02/25/microservices-the-dismantle-of-the-monolith

• Easy-to-Change: Single Purpose and Small

• Connectable: Communicate across standard interfaces

• Event-driven: Driven by business events in Near-Real Time

• Evolutionary: Don’t require months of analysis & architecture

A radically different way of delivering IT

solutions.

So what are

Microservices?

• Publish anything of interest – don’t wait to be asked, if your microservice thinks it has

some information that might be of use to the microservices ecosystem, then publish-

and-be-damned.

• Amplify success & attenuate failure – microservices that publish useful information

thrive, while those that left unsubscribed, wither-on-the-vine. Information subscribers

determine value, and value adjusts over time/changing circumstances.

• Adaptive ecosystem – versions of microservices are encouraged –may-the-best-

service-win mentality introduces variety which leads to evolution.

• Asynchronous & encapsulated – everything is as asynchronous as possible –

microservices manage their own data independently and then share it in event

messages over an asynchronous publish-subscribe bus.

• Think events not entities – no grand BDUF data model, just a cloud of ever-changing

event messages – more like Twitter than a DBMS. Events have a “use-by-date” that

indicates the freshness of data. Events never change – no updates allowed!

Architecture

Principles

• Designed for failure – microservices must expect problems and tell the world when

they encounter one and send out “I’m alive” heart-beats.

• Self-organizing & self-monitoring – a self-organizing System-of-systems’ that needs

no orchestration. Health monitoring and other administration features are established

through a class of microservices.

• Disposable Code in Any Language – microservices can be very, very small. They can

be developed in any language.

• Ultra-rapid deployment – new microservices can be written and deployed with hours

with a zero-test SDLC.

Architecture

Principles

These patterns are based on Systems

Theory and Cybernetics…

A Fabric for

Microservices

SERVICES ON

THE FABRIC

SERVICES IN

THE FABRIC

Data Fabric

Event Processing

Messaging & Integration

Fabric Search

P U

B

RA

P I

D

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S U

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Store

Meta Data

R I

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R I

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Streams

Content Bus Event Bus

Fabric Client APIs

No

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Pu

bli

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A

PIs

QUERY HISTORY &

REAL-TIME

ARCHIVE & PURGE

ADD EVENT

LOOKUP META

DATA

ADD META

DATA

PURGE META

DATA

Co

nte

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op

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Eve

nt

To

pic

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Event Archive

Fabric Apps

Management Services

API Management

DevOps Tooling

Service Management

On

-Ra

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Content Ponds

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mp

https://www.thoughtworks.com/insights/blog/microservices-evolutionary-architecture

The “Fabric” Logical

Architecture

Resources

Google “microservices”: Fred George,

Martin Fowler and Chris Richardson

nigel.green@cio-connect.com

Mobile:+44 7943 137344

Twitter: @taotwit

https://www.linkedin.com/in/nigelgreen