An Introduction to IT Business Management: CIO Decision-Making Platform

Brian James, VMware, Inc.

Mahipal Lunia, VMware, Inc.

OPS-CIM2037

#vmworldops

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Disclaimer

This session may contain product features that are currently under development.

This session/overview of the new technology represents no commitment from VMware to deliver these features in any generally available product.

Features are subject to change, and must not be included in contracts, purchase orders, or sales agreements of any kind.

Technical feasibility and market demand will affect final delivery.

Pricing and packaging for any new technologies or features discussed or presented have not been determined.

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Transparency Planning & Control

Optimization& Alignment

VMware ITBM – Fact-Based Approach to Run IT Like a Business

Services What services do I offer?

Costs What is the cost of providing those services?

Quality What does the business get and how do I manage tradeoffs?

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Can You Answer these Questions?

1. What services do you offer? What do they cost?

2. Are you cost competitive with industry benchmarks?

3. How much are you spending on desktops? Supporting applications?

4. Where would you cut to take costs out of IT?

5. Are you making decisions based on facts or gut feel?

6. What does the business get with each service?

7. Can you show how the pieces of IT come together to deliver value?

8. Do you have a plan to move from where you are to where you need to be?

Is pressure to answer these questions rising in your organization?

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IT Business Services are still services

Physical infrastructure, fixed costs, finance aren’t going away

Cloud is an Architecture

Cloud Changes Everything and Nothing

How do you take advantage of cloud?

Regardless of how much you use?

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Service Level & Quality

Demand, Costs & Incentives

Broker of IT Services

Service Portfolio

Internal IT

IT Broker Capabilities • Cost Transparency

• Prioritize spend and resources

• Accountable partnerships

• Collaborative service offerings

• Pricing

• Enhanced agility

Enhancing the CIO and Operations • From managing technology to delivering

internally and externally provisioned business services

• From manual and ad-hoc to systematic

• Providing the right service at the right price for competitive advantage

Private Cloud

External Vendors

Public Cloud

New Opportunity – The Automated Service Broker

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Customer Success

Cost Transparency, Quality and Optimization through Automation

Saved over $20 million/year by reducing unit costs by at least 6% each year

Chargeback all costs via consumed services

Automated Cost Transparency, Control and Alignment

Service costs modeled, tracked and managed WW

Costs, usage, and margin used for tax and optimization

Vision of IT portfolio with services, applications, infra, vendors

Centralized Visibility for Improved IT Decision Support

Moving from project based to consumption based approach Fully loaded per-user and per-unit costs for benchmarking and

cost modeling

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Visualization

• Service Levels • Vendor Accountability

Service Quality

Management

VMware IT Business Management Domains & Capabilities Fact-Based Approach to Run IT Like a Business

PPM/PSA Storage IT Monitoring Service Desk CMDB SharePoint, Internal Cost Models, Apps, Vendor Invoices…

GL, COA & Expenses

Private Cloud

Public Cloud

IT Financial Management

• Costs • Services • Planning

IT Benchmarking

• Objective Evidence • Functional Peers Services

Portfolio

• Data Collection & Validation • Security

• 3rd Party Connectors • Data Import/Export

• Observation Engine • Scalability

Automation Platform • IT Cost Modeling • Analytics

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Journey/Transformation to Automated Service Broker VMware IT Business Management - Paths To Value

A

IT Financial Management

Planning Benchmarking

What If Scenarios Budgeting

Demand Mgmt

B

IT Quality Management

Service Contracts KPIs

Escalation Paths

Service Tiers Vendor Management

Invoice Validation

Quality vs Cost In vs Outsource

Transparency

Planning & Control

Optimization& Alignment

Bill of IT Show/Chargeback

Cost Modeling

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Step 1 – ITFM Cost Transparency

360° IT Cost Transparency • Comprehensive Bill of IT

• Consumed services and costs • Showback/Chargeback

• Single source of truth for costs & services • All spend (physical, virtual, cloud, services, vendors)

Suite Capabilities • Agile service costing & modeling • Automated data collection

• Data Connect, Collect, Cleanse & Correlate

• Smart virtual and Cloud metering VMware Strengths

• Deterministic cost engine & model access • Smart Virtual/Cloud metering and embedded costing • Dashboards

A Transparency Bill of IT

Show/Chargeback Cost Modeling

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Step 2 – ITFM Planning & Control

Objective Evidence to Illuminate Your Path • Your data + Industry and functional peer benchmarks

• Over 3,500 metrics, 18 domains, 20 industries

• The “so-what” of cost transparency

Suite Capabilities • Examine service mix & demand

• Plan and compare with what-ifs

• Identify immediate areas for saving

VMware Strengths • Objective approach to benchmarking

• Top down and bottom up planning

• Control over your data

A Planning

Benchmarking Planning & Control

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Step 3 – ITFM Optimization & Alignment

Optimize Services to Align with Business • Compare costs vs service vs value • Use incentives to alter/manage demand • Make and defend decisions with facts

Suite Capabilities • Run multiple what-if scenarios • Incorporate metered cloud costs • Analyze actuals, trends, what-ifs • Import/Manage budgets • Track savings and automate variances

VMware Strengths • Observation engine to spot anomalies • Booklets • Service Broker Automation

A What If Scenarios

Budgeting Demand Mgmt

Optimization & Alignment

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IT Quality Management

Service Quality Management • Service levels and relationships

• Extend scorecards to vendors

• Objective targets and expectation management

Suite Capabilities • Automated service flows

• Setting and managing service contracts

• KPI’s and escalation paths

• Proactive management

VMware Strengths • Service vs Cost vs Value comparisons

• Integration with Cloud services

B

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Success with VMware

Expertise in ITBM and Cloud • Over 10 years expertise in both

• ITBM PSO Services

• Accelerate Cloud and Transformation Services

Global Reach - Offices in 63 countries • Nearly $4B in Revenue

• Continued investment in ITBM

Strong Partnerships • Dedicated ITBM & ITFM Partners

• Over 40,000 Partners

ITBM Business Model Flexibility • Subscription (SaaS and On-Premise)

• Perpetual

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ITBM Customers

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YOUR QUESTIONS

FILL OUT A SURVEY

EVERY COMPLETE SURVEY IS ENTERED INTO DRAWING FOR A

$25 VMWARE COMPANY STORE GIFT CERTIFICATE

An Introduction to IT Business Management: CIO Decision-Making Platform

Brian James, VMware, Inc.

Mahipal Lunia, VMware, Inc.

OPS-CIM2037

OPS-CIM #vmworldops

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Appendix

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Any of these important to you?

• Delivering Business Solutions • Reducing IT Cost • Developing / Managing a More Flexible

Infrastructure

• Facilitating Analysis and Decision Making

• Quality of Data used for Business Information

• Reduce Enterprise Operating Costs

2012 Gartner and CMP Media CIO Survey Results

3 of CIO’s Top 10 Priorities

VMware ITBM can help you deliver on these priorities

3 of CFOs Top 10 Picks

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VMware IT Benchmarking

Objective Evidence to Illuminate Your Path • Shows where you are today, where you could be from a cost perspective • Over 3,500 metrics, 18 Towers/domains, 20 industries • Your functional and industry peers • Identify immediate areas for focus, cost savings

• Automated Approach • Eliminates bias, sold by independent 3rd parties • Automated validation, analysis, reporting

VMware strengths • Objective, automated approach • Repeatable Functional and Industry Peers • Start small and expand

Top Midrange Server Tower Metrics: Cost per Server, Total Server Count, Total Costs, Hardware Costs, Software Cost, Staffing Cost, Facilities Cost, Disaster Recovery Cost, Outsourcing Cost, Average Cost per Staff

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VMware IT Benchmarking Deliverables Review The Standard Report:

• 11 pages of charts and tables • Executive rollup section • Functional and Industry Peer groups

compared across 5 levels • Peer Average • Peer top quartile quartile • Industry average • Industry top quartile quartile • Database average

• Clean, unbiased data • Baseline for building recommendations and

next steps

The Extract Report: • Fully editable XLS document with hundreds of

metrics • Functional and Industry Peer groups

compared across 7 levels • Peer Average • Peer top and bottom rtile quartile • Industry average • Industry top and bottom quartile quartile • Database average

• Data can be pushed directly into ITBM system • Custom reporting capabilities • Data mining capabilities • Do detailed comparisons to track against

internal baselines