Digital Transformation in Cloud Computing Digital Transformation in Cloud Computing Top-level Design, Architecture, and Applications Alibaba Cloud Intelligence GTS First edition published in English 2022 by CRC Press 6000 Broken Sound Parkway NW, Suite 300, Boca Raton, FL 33487-2742 and by CRC Press 4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN CRC Press is an imprint of Taylor & Francis Group, LLC © 2022 Alibaba Cloud Intelligence GTS Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all m aterial reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. 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Title: Digital transformation in cloud computing : top-level design, architecture, and applications / Alibaba Cloud Intelligence GTS. Description: First edition. | Boca Raton, FL : CRC Press, 2022. | Includes bibliographical references. | Summary: “With the rapid development of cloud computing and digital transformation, well-designed cloud-based architecture is always in urgent need. Illustrated by project cases from the Chinese technology company Alibaba Group, this book elaborates how to design a cloud-based application system and build them on the cloud. Cloud computing is far from being just a resource provider; it offers database, storage and container services that can help to leverage key advantages for business growth. Based on this notion, authors from the Alibaba Cloud Intelligence Global Technology Services introduce new concepts and cutting-edge technology in the field, including cloud-native, high-availability and disaster tolerance design on cloud, business middle office, data middle office, and enterprise digital transformation.”— Provided by publisher. Identifiers: LCCN 2021054021 (print) | LCCN 2021054022 (ebook) | ISBN 9781032223018 (hbk) | ISBN 9781032225326 (pbk) | ISBN 9781003272953 (ebk) Subjects: LCSH: Cloud computing. Classification: LCC QA76.585 .D544 2022 (print) | LCC QA76.585 (ebook) | DDC 004.67/82—dc23/eng/20211222 LC record available at https://lccn.loc.gov/2021054021 LC ebook record available at https://lccn.loc.gov/2021054022 ISBN: 978-1-032-22301-8 (hbk) ISBN: 978-1-032-22532-6 (pbk) ISBN: 978-1-003-27295-3 (ebk) DOI: 10.1201/9781003272953 Typeset in Minion by codeMantra Contents Foreword, xxv Preface I, xxix Preface II, xxxi Author, xxxiii Book Staff, xxxv Chapter 1 ◾ Cloud Computing and Digital Transformation 1 1.1 PAST AND PRESENT OF CLOUD 6 1.1.1 The Evolution of Cloud Computing 6 1.1.1.1 Born in the Era of Extreme Single Computer Computing 6 1.1.1.2 Four Stages of Cloud Computing Development 8 1.1.1.3 Cloud Computing Associated Services 15 1.1.2 Cloud Computing 1.0 18 1.1.2.1 Network That Provides Resource Leasing on Demand 18 1.1.2.2 Classification of Cloud Computing Services 18 1.1.3 Cloud Computing 2.0 22 1.1.3.1 The Emergence of Industry Cloud 22 1.1.3.2 Business Operation System and Cloud Computing 24 1.1.3.3 IoT Accelerates the Development of Cloud Computing 25 v vi ◾ Contents 1.1.4 Development Status of Cloud Computing 27 1.1.4.1 Matthew Effect in Cloud Computing Market 27 1.1.4.2 Segmentation of Cloud Computing Market 28 1.1.5 The Future of Cloud Computing 29 1.1.5.1 Northbound Expansion – Industrial Cloud and Intelligent Cloud 29 1.1.5.2 Southward Integration – Integration of Cloud Computing, Internet of Things and Blockchain 30 1.1.5.3 Decentralized Cloud 30 1.2 DIGITAL TRANSFORMATION TO DIGITAL INTELLECTUALIZATION 31 1.2.1 Information Construction and Digital Transformation 31 1.2.1.1 Gains and Losses of IT Construction 31 1.2.1.2 Why Are Enterprises Eager for Digital Transformation 33 1.2.1.3 The Relationship and Difference between Informatization and Digital Transformation 34 1.2.2 Digital to Digital Intellectualization 35 1.2.2.1 What Is Digital Intellectualization 35 1.2.2.2 AI Helps Digital Upgrade to Digital Intellectualization 37 1.3 DIGITAL TRANSFORMATION OF CLOUD COMPUTING BLESSING 41 1.3.1 Cloud Computing and Digital Transformation Complement Each Other 41 1.3.1.1 Major Changes Brought by Cloud Computing 41 1.3.1.2 Cloud Computing Provides Several Ways for Digital Transformation 41 1.3.2 Cloud Computing and Digital Transformation Are Not Panacea 43 1.3.3 Reference, Practice and Promotion 45 Contents ◾ vii 1.3.3.1 Step Out of Your Own Way 45 1.3.3.2 Be Honest with Yourself 49 1.4 DIGITAL TRANSFORMATION FROM CONSTRUCTION TO REFINEMENT OPERATION 50 1.4.1 The Original Intention of Digital Transformation 50 1.4.2 What Is Digital Operation 52 1.4.3 Organization and Capability Required for Digital Operation 54 Chapter 2 ◾ The Top-Level Design of Enterprise Digital Transformation 57 2.1 THE TIMES BACKGROUND OF TODAY’S ENTERPRISES 57 2.1.1 The Digital Economy and Its Characteristics 57 2.1.1.1 Background of Digital Economy Era 58 2.1.1.2 Characteristics of the Digital Economy 60 2.1.2 The Internal/External Opportunities and Challenges Faced by Enterprises 60 2.1.2.1 The Opportunities for Businesses 61 2.1.2.2 The Challenges for Businesses 62 2.1.3 Digital Transformation Is an Irresistible Trend 64 2.1.3.1 Several Stages of Enterprise Informatization Experience 64 2.1.3.2 The Relationship and Difference between Digital Transformation and Traditional Informatization 65 2.1.3.3 Why Are Enterprises Eager to Digital Transformation? 69 2.1.3.4 Digital Transformation Is the Inevitable Direction of Enterprise Survival and Development 70 2.2 INTRODUCTION OF ENTERPRISE DIGITAL TRANSFORMATION 71 2.2.1 Definition of Enterprise Digital Transformation 71 viii ◾ Contents 2.2.2 The Essence of Enterprise Digital Transformation 77 2.2.3 The Path/Stage of Enterprise Digital Transformation 78 2.2.4 Challenges Faced by Digital Transformation of Enterprises 80 2.2.5 A Multi-dimensional Framework for Enterprise Digital Transformation 83 2.2.6 Enterprise Digital Transformation Is a Long Process 86 2.2.7 Exploration of Enterprise Digital Transformation 87 2.2.8 The Common Misunderstanding of the Enterprise Digital Transformation 87 2.2.8.1 Obsess Over Other Enterprise’s Success Stories 87 2.2.8.2 There Is No ‘Silver Bullet’ in Digital Transformation 89 2.2.8.3 Are You Ready Mentally, Intellectually and Physically? 90 2.2.8.4 Organization and Concept Are Key to Success 91 2.3 TOP-LEVEL DESIGN OF ENTERPRISE DIGITAL TRANSFORMATION 92 2.3.1 The Value of Top-Level Design in Digital Transformation 92 2.3.2 The Scope of Top-Level Design in Digital Transformation 93 2.3.3 Three Principles of Top-Level Design in Digital Transformation 95 2.3.4 How Do Enterprises Carry Out Digital Transformation Top-Level Design 97 2.3.4.1 Top Design Methodology for Enterprise Digital Transformation 97 2.3.4.2 The Working Steps of Enterprises Digital Transformation 98 2.3.4.3 Maturity Assessment Model of Enterprise Digital Transformation 100 Contents ◾ ix Chapter 3 ◾ Application Cloudification and Cloud Native 103 3.1 CURRENT SITUATION AND PROBLEM ANALYSIS OF TRADITIONAL IT ARCHITECTURE 103 3.1.1 Difficulties and Challenges in IDC (Internet Data Center) Era 103 3.1.2 Opportunities for Enterprises Shifting to Cloud 105 3.1.2.1 The New Technological Revolution 105 3.1.2.2 The Development of Cloud Technology 106 3.1.2.3 Technical Route and Market Pattern 108 3.1.3 Cloud Technology Is Mature 109 3.1.3.1 Wide Acceptance 109 3.1.3.2 Ecology Is Becoming More and More Mature 110 3.1.3.3 Cloudization Is an Inevitable Choice for Enterprises 110 3.1.4 The Dilemma of Enterprise Cloudification 110 3.1.5 The Important Technique of Enterprise Cloudification 112 3.1.5.1 VPN and Intelligent Gateway 112 3.1.5.2 Express Connect and Cloud Enterprise Network 114 3.1.5.3 Elastic Compute Service 115 3.1.5.4 Data Migration Technology 116 3.1.5.5 Application Discovery Technology 117 3.2 THE CONCEPT, STRATEGY AND PRACTICE OF CLOUD NATIVE 118 3.2.1 Confusion and Limitations after Cloudification 118 3.2.1.1 Confusion and Limitations after Cloudification 118 3.2.1.2 Cloud Native Is Next Step after Cloudization 121 3.2.1.3 Evolution of Cloud-Native Concepts 122 3.2.2 Methodology in the Cloud Native 124