How is managing a massive cloud-native transformation effort different than the "application modernization factories" that have been around for years? Transforming or modernizing a portfolio consisting of hundreds of existing (aka, “brownfield”) applications is an enormous undertaking that requires a highly talented, cross-functional team. Attend this webinar with Pivotal, CGI, and 451 Research’s Carl Brooks to learn about the nuts and bolts of managing cloud-native application transformation at scale. After an overview from 451 Research, we’ll dive deep on the roles, tools, and processes required to create a well-run, cloud-native application transformation. Join us to hear how to replicate this success in your own organization! Presenters : Mark Carlson, CGI, Carl Brooks, 451 Research & Jeff Kelly, Pivotal

1. © 2018 CGI Group Inc.
© Copyright 2018 Pivotal Software, Inc. All rights Reserved. Version 1.0
November 2018
Jeff Kelly, Pivotal
Mark D. Carlson, CGI
Carl Brooks, 451 Research
Refactoring the Factory
Building a Cloud-Native App Transformation Factory

2. Our Panelists
Refactoring the Factory: Building a Cloud-Native App Transformation Factory
Jeff Kelly
Director of Product Marketing
Mark D. Carlson
Vice President, Cloud-Native Solutions
Carl Brooks
Analyst, Service Providers

3. Wait, I thought digital
transformation was all
about NEW cloud-
native applications?

4. Legacy Isn’t a
Four-Letter Word
• Tons of value in legacy applications
• Legacy app portfolios are complex
• Software releases are risky, infrequent
• Can’t win in today’s market with
traditional approach

5. CLOUD TRANSFORMATION
WORKLOADS AND KEY PROJECTS 2017
HOSTING, CLOUD & MANAGED SERVICES
About 451 Research
451 Research is a preeminent information technology research and advisory company. With a core
focus on technology innovation and market disruption, we provide essential insight for leaders of
the digital economy. More than 100 analysts and consultants deliver that insight via syndicated
research, advisory services and live events to more than 1,000 client organizations in North
America, Europe and around the world. Founded in 2000 and headquartered in New York, 451
Research is a division of The 451 Group.
© 2017 451 Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication, in whole or in part, in any form without prior written permission is forbidden. The terms
of use regarding distribution, both internally and externally, shall be governed by the terms laid out in your Service Agreement with 451 Research and/or its Affiliates. The information contained
herein has been obtained from sources believed to be reliable. 451 Research disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although 451 Research may
discuss legal issues related to the information technology business, 451 Research does not provide legal advice or services and their research should not be construed or used as such. 451 Research
shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these
materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
3
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P 617 598 7200
F 617 357 7495

6. CLOUD TRANSFORMATION
WORKLOADS AND KEY PROJECTS 2017
Report: Voice of the Enterprise: Cloud Transformation, Vendor Evaluations - Quarterly Advisory Report
Source: Q. Which of the following types of cloud computing options, does your organization currently use? Please select all that
apply. (Current cloud computing users)
Created for Carl Brooks, The 451 Group from IP 173.76.132.209
© 451 Research, 2017
Figure 2: IaaS and SaaS Continue To Expand, Private Cloud Holds Its Ground

7. CLOUD TRANSFORMATION
WORKLOADS AND KEY PROJECTS 2017
CLOUD TRANSFORMATION - ANNUAL SUMMARY
AND PREDICTIONS 2016
Q. Why do you plan to spend more with [highest spend vendor] in 2017? Please select all that apply. (Respondents Planning on Spending
More in 2017 with the Vendor They Spent the Most on in 2016) n=161
Source: Voice of the Enterprise, Cloud Transformation, Q4 2016
New Initiatives, Cloud Migration Fuel Increased
Spending with Primary Providers
7
§ 59% of organizations reported plans to increase
spending with the provider/vendor currently
receiving the largest share of their organizations’
overall cloud infrastructure services spending;
only 9% anticipated to decrease spending with
their primary provider.
§ Competitiveness of their primary vendors’
products/services (compared to other vendors’)
and increased performance requirements were
more prominent drivers for organizations with
10,000 or more employees and those in the
government/education sector.
§ Price/value considerations and service providers’
ability to keep pace with more complex IT needs
are critical components of the incremental
purchasing decisions of large enterprise and
government/education organizations.
1%
8%
11%
12%
14%
17%
18%
34%
45%
52%
58%
Other
Pricing Increases
Upgrade/Refresh Cycles
Consolidating Spending with This Provider
More Competitive Products/Services
Increased Performance Requirements
Buying Services for More Locations
Buying New Services
Adding Resource Capacity for Business Growth
Moving Workloads from On-Premises to Cloud
New IT Initiatives/Project Requirements
Factors Driving Increased Spending with Primary IaaS/
Hosted Private Cloud Provider

8. CLOUD TRANSFORMATION
WORKLOADS AND KEY PROJECTS 2017
Report: Voice of the Enterprise: Cloud Transformation, Vendor Evaluations - Quarterly Advisory Report
Source: Q. Please rate the level of business transformation required in your IT environment to support new business strategies
over the next five years, using a 0-10 scale where 0 is ‘No Transformation’ and 10 is ‘Complete Transformation.’ Q. Is your
organization currently undergoing an IT transformation initiative? Q. Approximately what percentage of your organization’s
current IT environment will be subject to the IT transformation initiative?
© 451 Research, 2017
Figure 3: Transformation Affecting More Than Half of Organizations’ IT Estates

9. Workloads migrating to off-premises cloud environments in
next 24 months
0% 5% 10% 15% 20% 25% 30%
Other Business Applications
Industry-specific Applications
Email, Unified Collaborationand Productivity Apps
CRM/Sales and Marketing Services and Applications
Virtual Desktop Infrastructure (VDI) and Mobility Management Applications
Data Analytics/Business Intelligence Applications
Social Applications
Big Data Services and Applications
Web (excluding search) Services
Networking Services
Systems Management and Orchestration Services and Applications
Database and Data Warehousing Services and Applications
Security Applications
Media Streaming andDigital Publishing
Application Development Services and Applications
Enterprise Resource Planning (ERP) andBusiness Management Software
Storage and Print File and Storage
Engineering/Research & Development (R&D)/Technical Computing Services and Applications
9
N=500
Q6b. Which of the following workloads are you planning to migrate to off-premises cloud environments in the next 24 months?

10. CLOUD TRANSFORMATION
WORKLOADS AND KEY PROJECTS 2017
Report: Voice of the Enterprise: Cloud Transformation, Vendor Evaluations - Quarterly Advisory Report
Source: Q. Which of the following best describes how your organization will use different on-premises and off-premises cloud
environments over the next 2 years? Q. Please rate the level of business transformation required in your IT environment to
support new business strategies over the next five years, using a 0-10 scale where 0 is ‘No Transformation’ and 10 is ‘Complete
Transformation.’
© 451 Research, 2017
Figure 4: Multi-Cloud/Hybrid Environments – Key Elements of IT Transformation

11. Anticipated Change in Next Two Years (by vertical)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
FinancialServices(N=59)
B2B,software,ITandcomputerservices
(N=76)
Manufacturing(N=75)
Telecommunications(N=49)
Communications,mediaandpublishing
(N=23)
Transportation(N=24)
Utilities(N=22)
Retail(N=54)
Healthcare(N=41)
Education/Government(N=32)
Services(N=26)
Other(pleasespecify)(N=19)
Yes, we will rely more on service providers Yes, we will rely more on hardware and software resellers Not sure No change
11
Q2a. Do you anticipate this will change in the next 2-3 years?
N=500

12. Four Tenants of
Application
Transformation
• Start small
• Learn by doing
• Break big things into small things
• Automate everything
But how do you SCALEAppTx?

13. © 2018 CGI Group Inc.
What is an application migration factory?
• Applies a consistent, highly-automated
approach to migrating applications
• Originally applied to data center
migrations and mainframe replacement
efforts
• Evolved to address cloud migration “lift-
and-shift” initiatives
13

14. © 2018 CGI Group Inc.
Application migration factory challenges
• Can be overly focused on the application
itself, neglecting building capability in the teams
responsible for maintaining them
• Cloud lift-and-shift factories often fail to
leverage the advanced capabilities of cloud
native platforms leading to increased developer
complexity and operational cost
• Workload migration factories often miss
opportunities to address security
vulnerabilities during migration
• Frequently long up-front analysis projects means
it can take months to get the first applications
in production
14
An iconic factory challenge from I Love Lucy (image)

15. © 2018 CGI Group Inc.
Cloud native
portfolio
assessment
• Business workshops and
value-stream mapping
• Technical fit analysis
• Identify early candidates
• Launch application
transformations in parallel
Transformation
PMO
• Program management
discipline focused on
innovation
• Manage migration
architecture / strategy
• Create and shepherd
community of practice to
foster collaboration and
sharing across teams
Replatform
and/or
modernize
• Leverage cloud platform
automation for increased
security and stability
• Decompose large apps
into smaller components
owned by agile teams
Transition to
cloud
• Enablement training for
cloud operations teams
• Dashboard creation
• Platform ops team
• Final security validation
and approval
• Run in production
Ongoing
operation and
maintenance
• DevOps and SRE
processes
• Continuous health
monitoring
• Lower MTTR
Modernization “recipes”
Consider a refactored factory
15
Scale out application transformation program

16. © 2018 CGI Group Inc.
Enabled teams
• Cloud native skills (dev & ops)
• Automated build and test pipelines
• More responsive, “small batch” mindset
Modernized applications
• Cloud native frameworks and tools
• Smaller, more loosely-coupled components
• Better instrumentation and observability
Community of practice
• Recipe sharing
• Insourcing shared tools
• Shared awareness of cloud native values
Outcomes of the refactored application migration
factory

17. © 2018 CGI Group Inc.
How can we refactor the application migration factory?
Ensure there is
strategic focus
Use a mature cloud
platform
Implement a cloud
native PMO
17

18. © 2018 CGI Group Inc.
Components of the cloud native factory:
Strategic focus
• Needs a senior leader “change agent”
empowered to question existing processes
and “rules”
• Make roadmap and progress visible to
business product owners impacted by the
program
• Keep the outcomes in mind not just the
mechanics of moving apps
• Don’t bury in either ops or dev
• Connect to business outcomes like
increased agility for existing apps
18

19. © 2018 CGI Group Inc.
Components of the cloud native factory:
Cloud platform
• Reduce complexity of both dev and ops
• Simplify pipelines
• Support on-prem clouds for apps that need
data locality and multiple public clouds
without changing code or writing scripts
• Leverage security by default features
• Increase developer productivity
• Benefit from ‘secure by default’
19

20. © 2018 CGI Group Inc.
Components of the cloud native factory:
Modernization office
• Initiated with a cloud native application
portfolio analysis
• Includes program management disciplines
but focused on innovation
• Coding architects coach application
transformation teams and help harvest
recipes
• Stewards the community of practice
20

21. More software released this quarter than
last quarter
Release management efficiency: Lower
lead and process time, fewer steps and
handoffs
Improved operational metrics for
transitioned apps: MTTR, MTBD, support
tickets, etc.
Improved security: Faster patching, zero
downtime upgrades, etc.
Infrastructure usage: Higher density
compute, auto-scaling and licensing
reductions
AppTx Success

22. © 2018 CGI Group Inc.
© Copyright 2018 Pivotal Software, Inc. All rights Reserved. Version 1.0
November 2018
Jeff Kelly, Pivotal
Mark D. Carlson, CGI
Carl Brooks, 451 Research
Thank You

23. © 2018 CGI Group Inc.
© Copyright 2018 Pivotal Software, Inc. All rights Reserved. Version 1.0
November 2018
Jeff Kelly, Pivotal
Mark D. Carlson, CGI
Carl Brooks, 451 Research
Appendix

24. REPLATFORMING
Minimally changing
applications so they
can run on cloud-native
platform
MODERNIZATION
Incrementally retiring
legacy applications and
rebuilding the
functionality as cloud-
native microservices
Two Phases of Application TransformationTwo Phases of Application Transformation
REPLATFORMING
Minimally changing
applications so they
can run on cloud-native
platform
MODERNIZATION
Incrementally retiring
legacy applications and
rebuilding the
functionality as cloud-
native microservices

25. TIME analysis
à SNAP analysis
Choices, Choices

26. Three work tracks
1. App replatforming
2. Process transformation
3. Pattern cookbook
Automate testing
Continuous integration
Replatforming
Make the minimal testable changes to each application required to run it on PCF

27. Modernization
Make testable changes to applications to make them run well on PCF, aiming for
15-Factor compliance. Break monoliths into microservices.
Domain Driven Design
Slicing
Decomposition steps