Published on April 22, 2014
Building Organizational Success Bridging the Gap Fixing the problem of ITSM and ITAM alignment
Building Organizational Success 2 Agenda • The evolution of ITAM and ITSM • ITAM’s inconsistent position in IT organisations • The current evolution of corporate IT • Challenges with lack of alignment • How ITAM can engage with today’s ITSM • Case study
Building Organizational Success How did we get here? IT Asset Management • Developed regionally in the 1980s and 1990s • Frequently driven by regulatory or tax obligations (e.g. In France) • Key sponsor frequently Finance department. • Built around procurement and/or request fulfilment teams • Asset-niche focused toolset vendors: Peregrine, StaffAndLine, etc IT Service Management • ITIL emerged from the UK Civil Service through early-mid 1990s. • ITSM platorms proliferated in enterprise, e.g. Remedy • Maturity path built around CMDB, with little focus on asset financials and lifecycle 3
Building Organizational Success 4 ITAM’s Business Position Within IT Service Management Other Within Finance Direct report to CIO/CXO Source: The ITAM Review survey: “Where Does ITAM Sit In The Business?, Nov 2011 http://www.itassetmanagement.net/2011/11/25/itam-integrated-itsm/
Building Organizational Success 5 Where are we today? • Limited engagement between practitioner communities • Separate conferences, trade groups, publication • IT under increased demands to show business benefit and cost effectiveness • Rapidly evolving IT technology landscape
Building Organizational Success 6 Evolving corporate IT Consumerize the front-end Industrialize the back end Manage Services
Building Organizational Success 7 Key IT Trends Shaping ITAM 1980s to mid 2000s... • The PC revolution • Physical devices • Install-based licensing Mid 2000s to present... • Virtualization • Capacity-based licensing • Outsourcing 2014... • Cloud infrastructure and applications • Mass mobility & BYOD • Usage-based licensing • Multi-sourced IT ? 2015-2020 • Hybrid Cloud • The Internet of Things • Consumerisation • IT as a dynamic Service Broker
Building Organizational Success 8 The rising cost of IT $0 $50 $100 $150 $200 $250 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 SERVER SPENDING POWER + COOLING SERVER MANAGEMENT (PHYSICAL) SERVER MANAGEMENT (VIRTUAL) Source: U.S. and Worldwide Service Shipments and Installed Base, 1996-2011, Dec, 2012, IDC
Building Organizational Success 9 Alignment is vital for effective IT management • ITSM can’t fully understand the cost of providing a service without understanding the assets on which the service depends. • Asset Management can’t optimise spending without understanding what services the assets underpin.
Building Organizational Success 10 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.
Building Organizational Success 11 ITIL version 3 – “Service Asset” “Any Capability or Resource of a Service Provider” The ability of an Organization, person, Process, A pplication, 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
Building Organizational Success 12 Aligning with the IT service blueprint Service Options Infrastructure Models Application Model Offering
Building Organizational Success 13 Aligning 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
Building Organizational Success 14 Without ITAM, the service is not fully understood • Purchase or instantiation costs • Associated contracts • Software license implications • Geographical resilience
Building Organizational Success 15 Supplier Assets in the infrastructure • Many supplier assets may need to come under Asset Management – Assets deployed on company site, particularly in mixed environments – Supplier assets allocated to business users – Supplier assets running licensed company software • At end of contract, need up-to-date view of on- site supplier assets and their impact.
Building Organizational Success Aligning multi-sourced IT service provision with Asset data Line of Business, partners, customers CUSTOMERVIEW Customer IT, HR, Facilities Catalog Solution SUPPLIERVIEW Service Org Internal Provider + + +ITSM Platform New Assets instantiated Existing Assets allocated External ITSM Platform External Provider + + ++ Supplier provided Assets Private supplier assets
Building Organizational Success 17 Critical to align ITSM and ITAM for full supplier-service understanding Detailed, holistic view of costs, performance, trends. Strategic / Top-Down IT Asset Management Operational / Bottom-Up • 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 / Top-Down • Mean time between failure • End user-satisfaction • SLA performance IT Service Management
Building Organizational Success 18 “The age of the customer” • IT is striving to be increasingly customer centric – a key objective cited by CIOs for 2014 • Customers expect more choice and autonomy • Cloud services make independent adoption of IT services much easier • “Bring your own” culture seen as a significant productivity driver
Building Organizational Success 19 Cloud service 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 Skyhigh Networks: Cloud Adoption and Risk Report, Q3 2013
Building Organizational Success 20 Challenges of Managing Cloud Services • Visibility – may need to use unorthodox discovery techniques such as web log capture • “Shadow purchasing” outside IT • Multiple applications doing same tasks • Business expectations • The Asset Management function is best positioned to effect better control
Building Organizational Success 21 Case study – the power of aligning ITAM with ITSM • The organisation is a large medical research charity in the UK • They are directly involved in frontline scientific research • Medical research has significant and specialist IT requirements • The IT organisation needs to provide excellent capabilities in a cost-pressured environment
Building Organizational Success 22 Case study – the power of aligning ITAM with ITSM • A key requirement is Big Data • This requires specialist equipment • External 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!”
Building Organizational Success 23 Case study – the power of aligning ITAM with ITSM • 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 three years support costs. After that time, you’re invariably needing bigger, better, faster”
Building Organizational Success 24 Case study – the power of aligning ITAM with ITSM • 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”
Building Organizational Success 25 Case study – the power of aligning ITAM with ITSM • This required good understanding of upcoming requirements of two very different user groups • A 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.
Building Organizational Success 26 Case study – the power of aligning ITAM with ITSM The result:
Building Organizational Success 27 Summary • IT is increasingly expected to demonstrate cost effectiveness and value to the business • There is wide adoption of service orientation and multi-sourcing • The range of assets in the organisation is rapidly broadening • Without effective alignment of ITSM and ITAM, it is not possible to give the CIO a complete picture.
Building Organizational Success 28 Asset can align its internal maturity evolution with ITSM What is owned? Where is it? Who is it assigned to? How much did we spend on it? IT Focused Business Focused Equipment Focused ITAM Maturity What 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?
Building Organizational Success 29 Summary • IT is increasingly expected to demonstrate cost effectiveness and value to the business • There is wide adoption of service orientation and multi-sourcing • The range of assets in the organisation is rapidly broadening • Without effective alignment of ITSM and ITAM, it is not possible to give the CIO a complete picture.
Building Organizational Success 30 The Asset Manager is ideally placed… • …to understand how the infrastructure supports the business of IT. • …to work with Service owners and designers, to understand how IT assets underpin IT services • ...to work cross-functionally with ITSM teams, to identify opportunities that might otherwise be missed • ...to provide expert consultancy on the commercial and compliance impact of service design decisions • …to be a key trusted source of information to the CIO
Building Organizational Success 31 Any Questions? @JonHall_
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