EY accelerates digital transformation for legacy applications powered by Microsoft Azure

2. EY accelerates digital transformation for legacy applications powered by Microsoft Azure September 25, 2018 BRK 2274

3. Introduction Koushik BiswasDigital Solutions – Cloud Platforms Ernst & Young LLP (EY) Koushik has led several cloud-based digital transformations as Chief Architect and Strategy Counsel for Executive Leadership. He is known for his hands-on stewardship, engineering background and expertise in both infrastructure & applications Amy works at EY and is also a Microsoft MVP for Office Applications and Services. She focuses on helping EY practitioners build a better working world by sharing their knowledge, collaborating and connecting with each other to better serve all of our clients Amy DolzineGlobal Knowledge Awareness Advisor Ernst & Young LLP (EY)

4. EY – trusted technology and business partner Organization of member firms operating in 150 countries • 270,000+ practitioners • Advisory, Transaction, Tax and Audit services • Wide, diverse business units and offerings • Constantly growing and evolving EY Digital Cloud Practice transforms organizations, helps modernize and disrupt

5. Digital transformation: self-optimizing applications Datacenter transformation, government’s child protection framework and productivity Global food and retail consumer goods giant Objective: Transform from a product company to a lifestyle company Outcome: Manipulation of data and information unearthed latent digital opportunities in the ecosystem Government agency catering to family and community services Objective: 360-degree view of every child in the agency’s care Outcome: Business and technology process redesign, adherence to Information Security risk and compliance requirements, migration of current solutions, and development of new solutions Multinational banking and financial services company Objective: Optimization of future-state operating model through cloud; reinventing productivity Outcome: Modernization of on-premises and Azure-based apps leveraging O365, modern access management, mobility enablement, remote workers, Bring Your Own Device (BYOD) and secure Identity and Access Management (IAM)

6. Criticality of legacy applicationsmigration 2 3 4 5 In addressing the business challenge of quick access and mobilization of data, technology stakeholders are turning towards Application Portfolio Rationalization (APR) as a solution. 1 Limited transparency into the ROI and efficiency of IT resources Increased complexities, leading to a decrease in speed-to-market Limited ability to transition towards modern platforms that power innovation Lack of alignment of applications to business functions — manual overhead High cost of application suite — the biggest opportunity for cost reduction

7. Vendor/ third-party risk Identity access management Enterprise resilience Technical controls Governance, risk and compliance Security operations Data protection & privacy Portfolio risk management Together, your digital world realized! EY — Risk, compliance, cybersecurity, operating model, governance, digital strategy Microsoft — Hybrid Cloud Platform, Modern Productivity Suite, SaaS/ PaaS/IaaS Market leader in risk, compliance and cybersecurity — offers a holistic Enterprise Cloud Risk Management framework Market leader In hybrid cloud strategy — 90% of Fortune 500 companies use Azure Together, EY and Microsoft bring: • Trusted capabilities • Digital transformation blueprint • CEO-level partnership EY Cloud Risk Management framework

8. Applications migration to Azure — methodology Application rationalization is a powerful mechanism used to simplify migrations. Application migration to Azure, done right, enhances value, affecting both top line and bottom line. What are we doing? 1 Initial business strategy Where are we doing it — for whom and how are we engaging? 2 Business operating model and governance 3 Application modernization and simplification using Azure PaaS/IaaS How are we doing it? 4 Future workloads on Azure What do we help enable?

9. Modernizing application portfolio with Azure PaaS/SaaS Inefficiency. Cost. Lack of alignment with business. Lack of visibility into utilization and other metrics. Fire drills. Reactive IT. No bandwidth left for R&D and innovation. Need more reasons to modernize? Application discovery • Validated and cleansed dataset • Full mapping of applications to business capabilities • Current-state application portfolio • Validated business capability model Application disposition • Applications categorized by identifying redundancy, risks, compliance, end-of-life apps, business value, etc. Rationalizationstrategy Business analysis Technical analysis • Business case • Opportunity prioritization • Implementation roadmap for target-state portfolio • Enterprise-wide application taxonomy Optimization • Self-optimized applications fine-tuning cost, security and performance

10. Application discovery Application discovery and mapping exercises are performed using EY’s proprietary APO tool. Additional application discovery tools are used to assess enterprise functional taxonomy. Business attributes (e.g., criticality) and additional technical characteristics (e.g., NFRs, third-party versions) are discovered Review gathered information pertaining to products and services offered, LOBs, functional areas, departments, etc. Product/services and functional taxonomy review Application data gathering Interdependency mapping Validated and cleansed dataset Validation and assessment of interdependency between upstream/downstream apps and libraries (third-party, CMDB, COTS, open-source, etc.) Construction of validated and cleansed dataset to housekeep information regarding core applications Application interdependency mapping Current state application portfolio Validated and cleansed dataset for core applications

11. Prioritized disposal strategy recommendations Technical analysis Application profiling validation An additional layer of analysis pertaining to risks, compliance, business value, cost and feasibility • Business analysis Application profiling and disposition Application disposition serves to categorize applications into predefined profiles, based on technical and business criteria. It also helps determine the future state of the application. Functional survey and application functional heat map Review security and risk implications Construct the application heat map Review surveys for technical/functional aspects Application discovery Preliminary costing information Application capability mapping Application profiles Input from previous phases Construct the business prioritization matrix Total cost of ownership (TCO) analysis Business capability analysis Business analysis and framework or TCO prioritization map

12. Rationalization strategy — does the bigger picture make sense? The modernization strategy will integrate both rationalization and cloud-readiness initiatives and reflect total TCO reduction and other business and functional benefits like the ability to innovate. Business impact assessment Opportunities prioritization Implementation roadmap Cost optimization • Analyze before and after TCO Risk, security and compliance assessment • EY checklists applied to the migration scope Business case development • Qualify financial,functional, or non-functional benefits • Analyze the opportunity cost of not innovating • Investigate modernization opportunities — customer retention and satisfaction • Construct phased implementation roadmap • Demonstrate quick wins or low hanging fruit, strategic future state and business alignment • Create new application taxonomy • Provide proof of concept, test and implement Business case Implementation roadmap Prioritized opportunities governance framework Target-state application taxonomy

13. Migration and Optimization Cost optimization, performance and security - using Azure. Continuously, as your footprint grows. 3 5 1 2 4 Container optimization Identity and access management IaaS/PaaS right-sizing Evolving threats Coding standards Security optimization Performance optimization Cost optimization

14. Azure adoption best practices and lessons learned — condensed 1 2 3 4 5 6 Use Dev-Ops wisely Take advantage of Azure’s rich set of PaaS offerings — do not use a smartphone to just make phone calls Perform a detailed thorough TCO analysis and prepare a business case that withstands test of time Moving to the cloud does not mean you are on auto-pilot Consider security, compliance, governance, administration and foundational design upfront Do not underestimate culture and process change needs – Organizational Change Management and Operating model

15. Thank you! Contact Us for follow up Koushik BiswasDigital Solutions – Cloud Platforms at Ernst & Young LLP (EY) Phone: +1 214 969 9585 Email: koushik.biswas@ey.com LinkedIn: https://www.linkedin.com/in/koushikbiswas Amy DolzineGlobal Knowledge Awareness at Ernst & Young LLP (EY) Phone: +1 216 583 4063 Email: amy.dolzine@ey.com @amydolz LinkedIn: https://www.linkedin.com/in/amydolzine

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