The transformation to the virtual cloud enterprise, steps (IT Toolbox Blogs)

To adapt to the increasingly faster market demands, new enterprise business models appeared. Essentially enterprises outsource today resources, value chain activities and IT to a cloud of external providers so enterprises can ramp up and down their capabilities as needed.


The enterprise evolves as such towards an Operations as a Service (Accenture in Re-inventing outsourcing with operations-as-a-service) called here a virtual cloud Enterprise that outsources most of its business functions and IT to a cloud of best of breed and cost 3rd parties. 

These new business models are enabled by the fast advancing Digital technology.


The transition to this virtual cloud enterprise is already on-going no matter what we think about it and what we call it. Enterprises do outsource today their business functions (Business Process Outsourcing, BPO), services to the API economy and Applications to SaaS while they have since long outsourced their enterprise support functions and IT management because they were costly and under performed.


But, proceeding on this path without preparation compromises the enterprise. Imagine the integration of an enterprise made of a large number of random outsourced business process and IT suppliers.


The first step is to model the enterprise architecture.


The next step is to put the Service at the base of the enterprise organisation. New flat organisation models based on units autonomy, BPO  (Business Process Outsourcing), the Cloud, Web Services, the API economy, microservices…  all point in this direction.

For that, design the target EA based on services, that is employ the SOA style of architecture. 

Once this done, services can be easily outsourced. Or they can be equally offered in house when appropriate.


The third step is to establish upfront the form of outsourcing and the  suppliers:  

–  1. BPO includes people, facilities

–  2. API economy

–  3. SaaS Cloud

–  4. In House

in the order pf preference above


Criteria must be established though for the selection of one model or another. Business opportunity is a key factor.

The steps above are often amalgamated in practice because few enterprises would engage in pure architecture modelling and transformations that may bring economies but not profit.


See also

Operations as a Service and the Cloud Enterprise

Preparing the up and coming virtual cloud Enterprise

Preparing the up and coming virtual cloud Enterprise (i)

The transformation to the virtual cloud Enterprise (ii)

The evolution toward the virtual cloud Enterprise and the need to architect it upfront (viii)

The path to the virtual cloud Enterprise is paved by the Digital evolution

EA material


Adrian Grigoriu is an executive consultant in Enterprise Architecture now living in Sydney, Australia. Shortlisted for the Computer Weekly IT Industry blogger of the year 2011. Former Head of Architecture and EA at OFCOM, the Agency providing regulation to frequency spectrum utilization and broadcasting industry in the United Kingdom. Previously Chief Architect of TMForum, the standards organization providing Frameworx, the Integrated Business Architecture framework for the telecommunications and digital media industries. Adrian also is an Executive Enterprise Strategy and Architecture Consultant and author of “An Enterprise Architecture Development Framework” book available on






and elsewhere. Reviews of the book are available from



the Angry Architect



is a short Enterprise Architecture animated slideshow summarising his view. Adrian also offers an EA and business architecture training course on-demand, based on the book. You may get in touch at His



Digital evolution
Operations as a Service
Cloud Enterprise

Source: SANS ISC SecNewsFeed @ March 2, 2017 at 05:06AM