Post on 06-Sep-2014
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Jon Hall, Product Management Lead – Enterprise ITAM
Bridging the Gap: The Value of Integrated Asset and Service Management
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Just what is an IT Asset?
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Separate Evolution of ITAM and ITSMHow did we get here?
IT Asset Management IT Service Management
Developed regionally in the 1980s and 1990s
Frequently driven by regulatory or tax obligations (e.g. In France)
Finance department sponsorship
Built around procurement and/or request fulfilment teams
ITIL – UK Civil Service, 1990sITSM platforms proliferated in enterprise, e.g. RemedyMaturity path built around CMDB......with little focus on asset financials and lifecycle
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ITIL version 2 – “Asset”
“Literally, a valuable person or thing that is ‘owned’”
Assets will often appear on a balance sheet as items to be set against an organization’s
liabilities.
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ITIL version 3 – “Service Asset”
“Any Capability or Resource of a Service Provider”
The ability of an Organization, person, Process, Application,
Configuration Item or IT Service to carry out an
Activity. Capabilities are intangible Assets of an
Organization
A generic term that includes IT Infrastructure, people,
money or anything else that might help to deliver an IT
Service. Resources are considered to be Assets of
an Organization
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Evolution of IT Assets
1980s to mid 2000s...• The PC revolution• Physical devices• Install-based licensing
Mid 2000s to present...• Virtualization• Capacity licensing• Outsourcing
2014...• Cloud infrastructure and applications• Mass mobility• BYOD• Usage-based licensing• Multi-sourced IT
?
2015-2020• Hybrid Cloud• The Internet of Things• Consumerization• Digital Service Brokering
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Where are we today?
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ITAM’s Position in the Business
Within IT Service Management
Other
Within Finance
Direct report
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What challenges are we facing?
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Key CIO priorities
Better decision supportService brokeringTransformation of IT spendingCustomer-centric IT
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Rising cost of “keeping the lights on”
$0
$50
$100
$150
$200
$250
SERVER SPENDING
POWER + COOLING
SERVER MANAGEMENT
(PHYSICAL)
SERVER MANAGEMENT
(VIRTUAL)
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The Innovation Squeeze
Existing Maintenance
Budget
Innovation Budget
Existing Maintenance
Budget
Innovation Budget
New Maintenance
Existing Maintenance
Budget
Innovation Budget
New Maintenance
Existing Maintenance
Budget
Innovation Budget
New Maintenance
Year n Year n+1 Year n+2 Year n+3
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Virtualization keeps moving
28% 6% 66%
Private Cloud
Public Cloud
Physical Servers & Non-Cloud VMs
34% of enterprise servers already run in the cloud
Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations. Forrester, June 2013
Percentage of servers operated in global enterprises:
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Cloud services are accelerating sprawl
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Cloud services are accelerating sprawl
• Average of 545 cloud services per company in large enterprises.
• Does your business have more cloud services than it needs?
• 70% feel that a fifth or more could be consolidated
48%34%
2010 2013
YES
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License complexity and aggressive audit
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Why does this matter to the Service Desk?
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New connected technologies, increasingly critical
Environmental monitoring and controlWorkforce automationFactory control systemsRFID tagsVehicle trackersCustomer experience augmentation
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New asset types drive new challenges
External Cloud servicesBring Your Own Device (BYOD)Highly mobile virtual instancesNew technologies become critical to businessDramatic changes in related processes (Change, Problem, etc)
New skills, new actors, new processes.
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Why alignment of ITAM and ITSM is so important
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In brief...
ITSM can’t fully understand the services it is providing without understanding the assets on which the service depends.
ITAM can’t optimise usage, support and spend without understanding what services the assets underpin.
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What don’t we know about a service, without ITAM?
Purchase or instantiation costsIncidental support costsAssociated contracts Software license implicationsGeographical resilienceWho supports what?Who owns what?and much more...
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What does ITSM-aligned ITAM look like?
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Example of ITAM embedded in frontline ITSM
Line of Business, partners, customers
CUSTO
MER VIEW
Customer
IT, HR, Facilities
CatalogSolution
SUPPLIER VIEW
Service Org Internal Provider
+ + +ITSM PlatformNew Assets
Existing Assets
External ITSM Platform
External Provider
+ + ++
Supplier provided Assets
Private supplier assets
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Integrated ITAM and ITSM as a supplier evaluation tool
Detailed oversight
Strategic / Top-Down
IT Asset Management
Operational
• Supplier assets• Software licenses• Asset contracts• Warranties, support and
maintenance agreements• Service costs
Supplier Management
• Enterprise licenses• Supply and lease contracts• Master maintenance and service
agreements• Customer and vendor obligations
Strategic
• Failure statistics• End user-satisfaction• SLA performance
IT Service Management
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And the next generation service models?
PrivateCloud
Policies Capacity
LicensesAsset Base
Costs
Service GovernorService
Governor
PrivateCloud
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There are still physical assets...
Private Cloud
Virtual server instances
Physical hosting layer
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The Asset Lifecycle still applies to Cloud
Select & Procure
Provision & Record
Deploy
Discover & Reconcile
Audit & Monitor
Maintain & Support
Retire
Re-Harvest
Cloud Service Catalog
CLM Service Governor
CLM DataDependency MappingVendor Data
CLM DataVendor ReportsUsage based licensing
CLM DataDependency Mapping
Vendor Data
CLM Service Governor
Capacity Optimization
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Core ITAM principles still apply
MOVE
ADD
DELETE
CHANGE
Transfer of Amazon instance to new Availability Zone
Instantiate new instance in Private Cloud
Decommission cloud instance and cancel
software subscription
Purchase more file storage allocation for
cloud instance
https://www.flickr.com/photos/johnseb/3425464
Relocation of server to new Datacenter rack
Provision and deploy new physical server
Decommission and retire physical server and
recover software licenses
Add bigger hard drive to physical server
https://www.flickr.com/photos/aztlek/2357990839
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Aligning ITAM with the IT Service Blueprint
ServiceOptions
InfrastructureModels
ApplicationModel
Offering
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Aligning ITAM with the IT Service Blueprint
• Asset information is a fundamental building block of the service
Level Assets Cost type Cost
Application Server
Bronze Single Amazon Cloud VM
Opex $25 per month
Silver 4 private cloud VMs, 8 vCPUs, 16GB RAM
Opex $200 per month
Gold 4 dedicated servers, 8 CPUs, 24GB RAM
Capex $8000 per unit
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Aligning Asset oversight to services
Type Location/ Provider
Licensed Software
Support End of Life
Server 1 Application Server
London Datacenter Private Cloud
Attachmate Covered under ACME support contract
Perpetual
Server 2 Failover Application Server
Amazon AWS
Attachmate (failover license)
Amazon Silver Support
2 years – auto deprovision
Server 3 Database Server
Internal Oracle Data Farm
Oracle Enterprise Edition (processor licensed
Oracle Premier Support
3 years – raise RFC with 3 months remaining
Deployed Assets for Sales Office FileShare instance, Production level, Failover Option
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Case Study
The organisation: a large medical research charity in the UKDirectly involved in frontline scientific researchMedical research has significant and specialist technology requirementsIT needs to provide excellent capabilities in a cost-pressured environment
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Case Study
A key requirement is Big DataThis requires specialist equipmentExternal cloud is not an option, primarily due to the volume of data transfer
“The problem we’d have for active data is the access speed: A single genome is 100Gb. Imagine downloading that from Google!”
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Case Study
They need specialist data storage and retrieval equipment.Data growth is rapid.A frequent refresh cycle is expected.
“We buy kit that’ll fit our needs, front-loaded with 3 years support costs.
After that time, you’re invariably needing bigger, better, faster”
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Case Study
The organisation spotted an opportunity to repurpose, rather than dispose of, the specialist hardware.
“We used the old system for second tier data: desktop backups, old data”
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Case Study
This required good understanding of upcoming requirements of two very different user groupsA much cheaper support supplier was found for the older equipment: Backup does not need “gold-standard” support.Significant savings were made in not purchasing new equipment for PC backups.No new technology for the Service Desk and Support Teams to manage.
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The result
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Conclusion
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Moving to Service-aligned ITAM
What is owned? Where is it?Who is it assigned to?How much did we spend on it?
ITFocused
Business Focused
Equipment Focused
ITAM MaturityWhat does it support?How can we control changes?How can we discover more?
What is its role in our key services?How can we optimize its use?
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Summary
IT is increasingly expected to demonstrate cost effectiveness and value to the businessThere is wide adoption of service orientation and multi-sourcingThe range of assets in the organisation is rapidly broadeningITSM is better empowered to support its customers if ITAM is aligned.Without effective alignment of ITSM and ITAM, it is not possible to give the CIO a complete picture.
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Questions?
@jonhall_