CLOUD NATIVE Application development at the speed of business

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CLOUD NATIVE Application development at the speed of business
CLOUD
NATIVE
Application development
at the speed of business
CLOUD NATIVE Application development at the speed of business
CLOUD-NATIVE
COMPUTING,
THE LATEST WAVE OF
DIGITAL
DISRUPTION,
MAKES THE CLOUD A
FORCE FOR CREATING
BUSINESS VALUE.

                     2
CLOUD NATIVE Application development at the speed of business
ARE YOU A CLOUD NATIVE
OR JUST A CLOUD MIGRANT?
Increasingly, organizations are finding that they have
hit a wall when it comes to delivering new kinds of value
and innovation from their existing cloud strategies.
That’s because they have mainly focused          For many organizations, unlocking the next level
on application migration—moving old apps         of cloud benefits requires a different approach.
and functionality onto a cloud platform.         Companies should adopt a new, “cloud-native”
Sure, that “lift and shift” model was fine for   mindset—reorganizing people, processes and
a while—emulating old-world applications         workflows, and creating applications with the
and architectures—but being in the cloud         cloud specifically in mind.
has much more import to the business.

Winners in the new economy will be those            Cloud native is the future of application development,
who have unlocked the benefits of cloud—            with massive potential for business impact—the ability
higher agility, speed to innovation and lower
                                                    to move an idea into production quickly and efficiently.
IT costs. But the journey to cloud requires
careful navigation and commitment.

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CLOUD NATIVE Application development at the speed of business
ADOPTING THE
CLOUD-NATIVE
MINDSET
Organizations can take advantage of the distinctive, inherent
characteristics of the cloud platform such as bi-directional
innovation, faster speed to value, more rapid new-product ideation,
and greater elasticity, scale and resiliency with cloud native.
Cloud-native technologies, according to the         Organizations need to chain together
definition developed by the Cloud Native            the various technologies, processes and
Computing Foundation, “empower organizations        services of cloud native to produce an
to build and run scalable applications in modern,   outcome that has actual business value.
dynamic environments such as public, private,
and hybrid clouds.”1 To that definition, however,   That is, cloud native is much more than
it is important to add, “to innovate faster and     just a programming model or a new way
enable the business to react to marketplace         of writing code. It changes the entire lifecycle
events with more agility.”                          of how requirements are collaboratively
                                                    incepted, coded, tested and deployed.

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CLOUD NATIVE Application development at the speed of business
CLOUD-NATIVE BUSINESS
VALUE IN THE AGE OF
DIGITAL DISRUPTION
By adopting a cloud-native approach, IT, more than ever before,
can contribute directly to business value.
Cloud-native computing is the latest wave         For example, because of the disruption          In another example, retailer Gap Inc. used
of digital disruption. Being digital means        from e-commerce competitors, retailer           cloud-native application architectures for price
moving from surface-level efficiency plays        The Home Depot needed to figure out how         optimization and can now handle 6,000 price
to true transformation. Both new entrants and     to compete more effectively. By leveraging      adjustments every four hours.3
incumbents are using digital to drive business    cloud-native architectures and continuous
advantage. They are redefining the rules, roles   delivery practices, the company went from       Microservices, which lie at the core of the
and resources to become giants of disruption.     spending six weeks to develop one application   cloud-native application architecture, represent
                                                  and get it in production to deploying new       the functionality of the business. In this respect,
The ultimate goal of cloud native is to           code every 15 minutes.2                         cloud native is a new and closer kind of
improve the speed and efficiency of service                                                       partnership or codependence between
assembly, enabling the business to react                                                          IT and the business.
faster to market change.

                                                                                                                                                        5
WHAT DOES IT MEAN TO CREATE
APPLICATIONS IN A TRULY
CLOUD-NATIVE MANNER?
Let’s break it down
As discussed, all actual development or          Then, cloud native is comprised of four layers
programming should be driven by business         when it comes to technology and process.
events/requirements and serve business needs.    First is the architectural style itself, which defines
These can include competitive or marketplace     the development process, which in turn uses
events; new products and services; innovation;   the production process, which then runs code
and end-user/client/customer interactions.       on the execution platform.

    Having the architectural tenets or paradigms
    in place is critical to true cloud-native
    computing. If you miss one of them, you miss
    the combinatorial effects of the current IT era.

                                                                                                          6
THE ELEMENTS OF CLOUD-NATIVE COMPUTING

In today’s technology era, cloud is the execution platform; to the left are DevOps
processes, which are driven by Agile development—all of which are a result of today’s
microservices architectures, which are driven and invoked by business events.

                                      TECHNOLOGY,
            BUSINESS                  PROCESS AND PEOPLE

                            MICROSERVICES                  AGILE                DEVOPS                    CLOUD
  Business Events/          Architecture                   Development          Production                Execution
  Requirements              Style                          Process              Process                   Platform
  All development should    Defines the                    Uses the             Runs code on the          Extremely flexible
  be driven by business     development process            production process   execution platform        delivery platform
  requirements and
  serve business needs.     • Requirements                 • Architecting       • Source control          • Automation
                            • Views                        • Planning           • Deployment              • Runtime platform
  • Competitive or
    marketplace events      • Decoupling                   • Development        • Repo management         • Service discovery

  • New products            • Componentization             • Testing            • Release management      • Image/container
    and services            • Governance                   • TDD/BDD            • Configuration control     registry

  • Innovation              • Encapsulation                • Integration        • Packaging               • Service catalog
                                                                                                            management
  • End-user/client/        • Fail-fast design             • Release            • Tracing
    customer interactions                                                                                 • Scheduling
                            • Instrumentation              • Operations         • Collaboration
                                                                                                          • Choreography

                                                                                                                                7
THE ELEMENTS OF CLOUD-NATIVE COMPUTING

Microservices
Architecture
By structuring applications as    In addition to improving modularity and    IDC research has found that 100 percent
a collection of loosely coupled   making applications easier to develop      of businesses with “optimized” cloud adoption
                                  and test, microservices enable different   (organization-wide cloud strategies and policies)
services, microservices
                                  development teams to create, deploy        have adopted microservices compared to just
strengthen continuous             and scale their services independently.    18 percent of those with an “ad hoc” approach—
delivery and deployment.          Organizations can break down               just lines of business or other groups
                                  their monolithic applications into         experimenting with the cloud.4
                                  discrete components, each of which
                                  can then be developed, scaled and          IDC also found that, by 2021, 80 percent
                                  maintained independently.                  of application development will take place
                                                                             on cloud platforms using microservices
                                                                             and cloud functions.5

                                                                                                                                 8
THE ELEMENTS OF CLOUD-NATIVE COMPUTING

Serverless
Architecture
Serverless is a cost-effective       These event-driven, function-centric systems are
method of enabling microservices.    becoming an ever-more essential capability for
                                     playing in today’s digital ecosystems. Serverless
It is a way to deploy applications
                                     architectures enable developers to focus solely
while leaving all infrastructure     on revenue-generating functions, and not waste
details to the cloud provider.       time on non-value-added infrastructure issues.

                                                                                         9
THE ELEMENTS OF CLOUD-NATIVE COMPUTING

Agile
Development
Agile is all about coping with    By splitting the development process into   Consider an example from the U.S. Air Force.
and driving change—making         time windows and providing a continuous     Although the organization has a huge technology
                                  feedback loop, Agile enables rapid, more-   budget, 70 percent of it was previously going
development processes fast
                                  effective development—and the creation      toward just maintaining existing infrastructure.
and easy.                         of super-nimble organizations that can      Only 30 percent was going toward research
                                  innovate quickly.                           and development and new software. By
                                                                              implementing Agile practices and developing
                                                                              apps to run on multiple clouds, the Air Force
                                                                              now finds that 70 percent of its budget is going
                                                                              toward R&D and 30 percent toward maintaining
                                                                              existing infrastructure.6

                                                                                                                                 10
THE ELEMENTS OF CLOUD-NATIVE COMPUTING

DevOps
DevOps focuses on speed           By equipping developers and infrastructure         According to IDC survey data, organizations
and how quickly a program can     experts with the same tools to track and control   use DevOps to manage, on average, 25 percent
                                  changes in both code and infrastructure—           of their application portfolio today, and expect
get from the design stage into
                                  treating it all as software assets—DevOps lets     that percentage to rise to nearly 33 percent in
production. It’s largely about    you create a production environment within         five years.7 Strong adoption of DevOps suggests
automation—i.e., eliminating      days or hours, rather than in the weeks            that the development methodologies are already
the need for human involvement    or months previously required.                     in place to support the adoption of cloud-native
in the production process.                                                           development practices and the development
                                                                                     of cloud-native applications.

                                                                                                                                        11
THE ELEMENTS OF CLOUD-NATIVE COMPUTING

Cloud
Cloud is an extremely flexible delivery platform. It can support many
different architectural and deployment styles, from big, monolithic
systems, to large, virtual-machine deployments, to nimble clusters
of containers, to large farms of serverless functions.

Cloud is flexible enough to carry most
of the IT architectures from the last 20 years.
Again, however, to get the maximum business
benefits and value from the cloud, one should
understand that the platform itself is only one
part of the overall cloud-native picture.

                                                                        12
THE CLOUD-NATIVE
APPROACH TO MODULAR AND
FLEXIBLE OPEN PLATFORMS
Cloud native delivers scale, resiliency and agility—both for the business
and developers—that are almost impossible to achieve with pre-cloud architectures.
By using the cloud-native approach—beginning     A bank, for example, can use this approach         For example, some manufacturers track
with business events and carrying over to all    to develop application programming                 the operation of their devices in the field
four elements of the technology process          interfaces (APIs) that allow third-party systems   and proactively send out service techs before
tenets—leading organizations across industries   to connect to its own, expanding the reach         a failure. The company can thus change its
are not simply migrating their systems to the    of the bank’s mobile-banking capabilities          selling model to not selling a device but selling
cloud. Instead, they are creating modular and    beyond browsers and mobile phones.                 the operation of the device—a profound change
flexible open platforms that can advance         Additionally, it enables enterprises to change     to the way companies do business that is made
a company’s digital agenda, create greater       their business models to “as-a-service.”           possible by the cloud.
business agility and speed development.

                                                                                                                                                        13
CLOUD-NATIVE
DEVELOPMENT AT A
GLOBAL HOSPITALITY
COMPANY
Accenture leveraged cloud-native
development to help a global hospitality
company implement a digital key system,
                                              The solution enabled the
using Bluetooth™, proximity and other
technologies to let hotel guests unlock
                                              company to fully leverage
their room doors with their mobile phone.     its digital ecosystem,
                                              including the various
Using a cloud-native approach—with a          reservation pipelines and
microservices-based architecture, Agile       other reservation brokers.
development processes, DevOps tools
and a cloud delivery platform—Accenture
was able to develop this capability in just
four weeks.

                                                                           14
CLOUD-NATIVE
DEVELOPMENT
IS ABOUT
MORE THAN THE
TECHNOLOGY
Meeting the challenges of cloud-native development
and making a strategic move will often necessitate
changes to processes, operations, people and culture.
Cloud native is not just substituting one            Already, 40 percent of employers report
technology for another, nor is it just a different   talent shortages.8 And, with significant upshifts
programming model. Companies should be               expected in skill requirements, that gap is likely
prepared for more widespread change.                 to increase dramatically. In fact, by 2020, it is
                                                     estimated that more than a third of the desired
                                                     skillsets of most jobs will be comprised of skills
                                                     not yet considered crucial today.9
                                                                                                          15
SOME CHALLENGES OF
CLOUD-NATIVE DEVELOPMENT
Change roadmaps are likely to be aggressive. Buy-in from the business to support, enable and fund
cloud-native development is essential. And, of course, some “fear of the unknown” is likely to occur.

  Managing the business case                         Managing complexity                           Managing change
  Making the business case for cloud native          Also needing to be managed are new            Finally, organization, people and culture
  requires thinking beyond just cost and             complexities in platforms, operating models   change need to be effectively managed.
  operational efficiency to areas such as improved   and security. Multiple platforms need to be   Roles and responsibilities are likely to
  speed and business agility, a better customer      operated as companies wind down the old       change, as will skills definitions.
  experience and a reduction of technical risk.      and spin up the new.
                                                                                                   • Required training and readiness
  • Operational efficiency                           • Platforms                                   • Aggressive change roadmaps
  • Improved delivery speed and business agility     • Code/reuse management                       • Fear of the unknown
  • Improved customer experience                     • Operating models and governance
  • Reduction of technical risk                      • Multi-platform security
                                                     • Financial and other forms of risk

                                                                                                                                               16
GOING                                                                   NO.   01                           NO.   02

CLOUD NATIVE:
                                                                        Create an                          Enable your
                                                                        organization                       developers.
                                                                        that is more

WHERE TO START
                                                                                                           Provide access to all the
                                                                        service-oriented.                  tools, automation and training
                                                                                                           your developers need to
                                                                        Instead of traditional function-
                                                                                                           drive business results from
                                                                        based structures, organize your
                                                                                                           cloud native.
                                                                        teams around specific services
Here are some key insights and to-dos related to                        or capabilities.
deepening your own maturity in cloud-native development.

                                     NO.   03                           NO.   04                           NO.    05
                                     Use modern                         Rearchitect your                   Enjoy the cloud-
                                     and up-to-date                     organization to                    native journey.
                                     architectures.                     keep pace with                     Cloud native represents
                                     Cloud native means using           cloud-native                       a renaissance for developers,
                                     microservices and a more           development.                       putting them once again front
                                                                                                           and center in developing
                                     responsive type of architecture.
                                                                        The business should be             business-critical software.
                                                                        able to generate requirements
                                                                        fast enough and at the same
                                                                        pace as the technicians.

                                                                                                                                            17
ACCENTURE IS ON THE
LEADING EDGE OF CLOUD-
NATIVE DEVELOPMENT
Accenture tailors leading practices and                 learning. Our end-to-end, application-led          Beyond our work with clients, we are also
proprietary tools and platforms in all cloud            offerings deliver benefits faster at every stage   helping to shape and define cloud native in
varieties (public, private, multi and hybrid)           of the cloud journey—from strategy and             the IT industry. We are a contributing member
across multiple types of delivery platforms (IaaS,      business case development to migration,            of the Cloud Native Computing Foundation
PaaS and SaaS) for an individualized journey to         optimization and management and digital            (CNCF). Accenture is recognized as a key
cloud. We collaborate both with our clients and         transformation.                                    ecosystem partner for SAP, Oracle, Salesforce,
cloud vendors to extract enhanced value from                                                               Microsoft, Workday, Amazon Web Services
the cloud, leveraging deep, specialized industry        Accenture is on the leading edge                   (AWS), Google, ServiceNow and Pegasystems—
experience. We can use verticalized applications,       of cloud-native development. We build              and has been working in the cloud for more than
systems, implementations and approaches on all          under extreme workload conditions so that          a decade.
leading clouds, in coordination with our clients’       your solution will scale across the enterprise.
engineers and solution architects.                      We have more than 25,000 engineering
                                                        professionals. Our industrialized methodologies,      Our innovative assets and
We emphasize complex cloud services                     cross-industry leading practices and development      ecosystem relationships can help
including artificial intelligence, Internet of Things   rigor can help you gain business value from
                                                                                                              you kickstart development.
(IoT), Big Data, predictive analytics and machine       cloud native faster and with less risk.

                                                                                                                                                             18
IT’S TIME TO
MAKE YOUR MOVE.
According to one survey of IT            With an agile and flexible approach
decision-makers’ priorities over         to enterprise technology, tomorrow’s
the next couple of years, half of        leaders can build the boundaryless
them said that they are currently        systems that create new spaces for
using or evaluating (or plan to use      ideas and partnerships to flourish.
or evaluate within 10 months), cloud-
native architectures.10 It’s important
to move quickly with cloud native           Is your business
to remain competitive. Seek out             ready to join them?
the support you need and begin
developing skills and gaining
experience, because cloud native
is the future of application
development with massive
potential for business impact.

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REFERENCES
1.   https://www.datacenterdynamics.com/analysis/whos-afraid-of-cloud-native             6. https://www.linuxfoundation.org/blog/2018/08/building-a-cloud-native-future

2. h
    ttps://www.linuxfoundation.org/blog/2018/08/building-a-cloud-native-future and      7.   IDC, 2018 DevOps Services Survey: Part 1, January 2018.
   https://techbeacon.com/cloud-native-architectures-are-reshaping-enterprise                  https://www.acclivis.com/wp-content/uploads/2018/04/IDC-Futurescapes-
                                                                                               Predictions-2018.pdf
3. https://techbeacon.com/cloud-native-architectures-are-reshaping-enterprise
                                                                                         8. IDC InfoBrief, sponsored by Cisco. “Multicloud is the New Normal,” March 2018.
4. IDC InfoBrief, sponsored by Cisco. “Multicloud is the New Normal,” March 2018.           https://www.cisco.com/c/dam/en/us/solutions/collateral/trends/cloud/
   https://www.cisco.com/c/dam/en/us/solutions/collateral/trends/cloud/business-cloud-       business-cloud-advisor-infobrief-2.pdf
   advisor-infobrief-2.pdf
                                                                                         9. “ The Future of Jobs: Employment, Skills and Workforce Strategy
5. IDC FutureScape: Worldwide IT Industry 2018 Predictions, October 2017.                   for the Fourth Industrial Revolution,” January 2016. World Economic Forum,
    https://www.acclivis.com/wp-content/uploads/2018/04/IDC-Futurescapes-                   http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf
    Predictions-2018.pdf
                                                                                         10. C
                                                                                              loud Foundry Foundation, “Where PaaS, Containers and Serverless Stand
                                                                                             in a Multi-Platform World” (report), based on a global survey of 601 IT decision-
                                                                                             makers, March 2018. https://www.cloudfoundry.org/multi-platform-trend-
                                                                                             report-2018

                                                                                                                                                                                 20
Contacts                                     About Accenture
Miha Kralj                                   Accenture is a leading global professional services company, providing a broad
Managing Director, Accenture Cloud           range of services and solutions in strategy, consulting, digital, technology and
Miha.kralj@accenture.com                     operations. Combining unmatched experience and specialized skills across more
                                             than 40 industries and all business functions—underpinned by the world’s largest
Siki Giunta                                  delivery network—Accenture works at the intersection of business and technology
Managing Director, Accenture Cloud           to help clients improve their performance and create sustainable value for their
Siki.giunta@accenture.com                    stakeholders. With 459,000 people serving clients in more than 120 countries,
                                             Accenture drives innovation to improve the way the world works and lives.
Bill Wood
                                             Visit us at www.accenture.com
Senior Manager, Accenture Cloud
W.wood@accenture.com

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