it's getting cloudy in it service management

IT’S GETTING CLOUDY

IN

IT SERVICE MANAGEMENT

MARK O’LOUGHLIN

Copyright © Mark O’Loughlin 2014


ProfileMark O’Loughlin• Service Management Principal• Consultant

- Service Management- Service Architect / Designer

• Author The Service Catalog• Author Professional Cloud Service Management• ITIL Master• ITIL Trainer • Director itSMF Ireland• Member of WG25CA (ISO/IEC 20000 workgroup)


Organizations


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Twitter: @oloughlinmark

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Blog: www.markoloughlin.org

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Agenda• Cloud Computing

• Benefits & Importance of Cloud

• Cloud and ITSM Convergence

• Scenarios

• Recommendations

• Helpful Resources


What is Cloud

Cloud computing is

not new technology

Cloud computing is seen as a

new way of delivering

computing resources

Cloud computing is the

delivery of computing as a

service, rather than a product,

where shared resources are

provided as a utility over a

network (internet)


Every Minute of the Day

7

Are you “In the Cloud”?

What are you using?

Many people are “In the

Cloud” without realising it.


Interesting Statistics

8


Examples of Cloud Services


How Did We Get Here?Cloud Timeline

10


Characteristics of Cloud

Source: NIST

How will current ITSM best-practices enable and support the fundamentals of cloud computing?


Cloud Service Models

12


Uses of Cloud Service Models

13

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80%

“Within two years, 80% of

Fortune 1000 enterprises will

use the Cloud”

Source: Gartner


Cloud is DisruptiveCloud is changing how:• IT services are delivered• Businesses offer services to customers• Customers interact with business

-New cost models are being introduced-OPEX is replacing CAPEX spend-New routes to market, quicker- New approaches to IT & Business management required


Cloud is Disruptive

The business will expect faster, quicker, cheaper, better, agile.

How will IT service providers adapt to the changes cloud is introducing?

What can you deliver with cloud?

How will you manage the development and operation of cloud based services?


Benefits of Cloud

• Scalable

• On-demand

• Pay-per-use

• Elastic

• Less CAPEX, more OPEX

• Quicker to implement IT services

Even though cloud is disruptive there are many benefits

• Flexibility

• Scalability

• Dynamic

• Cost effective

• It is disruptive & challenges the market


Benefits of Cloud

18


Cloud and ITSM Convergence

Updated IT & Business practices will be required to realise and manage the benefits

from cloud computing


Todays IT = Hybrid IT

Legacy IT

Traditional IT

Cloud Computing

+

+=

The issue is where is the best-practice

guidance to join up these three worlds?


Hybrid IT Examples-SaaS based ticketing systems

-PaaS based systems for a test environment

-IaaS for on-demand batch processing

-ERP mainframe system

-Desktop applications

-Client / server environment


WHERE DOES ITSM GET CLOUDY?



Examples for Todays WebinarTo realise the benefits of cloud computing you have to adapt what you do today

Six basic examples where ITSM gets cloudy!

1. Roles2. Service Levels3. Change Management4. Procuring Services5. Demand Management6. Financing IT & Business Services


Common Question

How will cloud affect what you do today?

What new roles are required?

24


Changing RolesManagement of cloud computing and cloud-based services requires:

• Roles from IT Service Management• Roles form the organization• Additional roles not defined in IT Service

Management

NIST defines these key roles• Cloud Consumer• Cloud Provider• Cloud Broker• Cloud Auditor• Cloud Carrier

25


Common Questions

How will cloud affect buying and selling services?


IT Becomes The BrokerIT will buy cloud based services

= New role for IT

• Less in-house staff and operations to manage

• More outsourcing taking place - higher spec roles

• New skills needed - less technical, more business

• Contract negotiation & supplier management

• Increase OPEX offset by decrease CAPEX

• Where is the best practice guidance for The Broker?


IT Becomes The BrokerIT roles of the (not to distant) future• Strategy & CIO – aligned to business needs• Architecture• Development & design (primarily application)• Project management• Consultants including best practice in security &

service management• Less of the traditional IT jobs done in-house

In-house technical roles expected to phase out decrease as they will be provided by cloud service providers.


Common Questions

How will cloud affect service levels?


Issues Matching Service Levels

Traditional Urgency & Impact Matrix Sample Cloud SaaS Service Targets

Sample NOC Service Targets


Common Questions

How will cloud affect change management?


Change Management Needs to Change

32

To avail of the “on-demand” attributes of cloud computing which helps achieve IT and business

goals, objectives and strategies

To help control reducing and retiring cloud computing and cloud-based services to

streamline costs

To manage the OPEX costs of cloud subscriptions e.g. SaaS

To manage the OPEX costs of temporary environments e.g. test environments in PaaS


Change ManagementIs traditional change management capable of

dealing with cloud based change?

• Cloud is an on-demand service model

• Changes happen on demand

• Can traditional CAB’s cater for on-demand?

• Actually – who owns the IT change now?

• Who is accountable, responsible – who gets fired?


Change ManagementIs traditional change management capable

of dealing with cloud based change?

• Who’s change management system?

• What changes do you need to know about?

• Demand spikes need immediate change.


Common Questions

How will cloud affect demand management for services?


Demand Management• The IT tap can be turned on or off in an

instant - True for PaaS, IaaS e.g. more CPU compute power

- Less true for BPaS, SRaaS i.e. redesign or readjust the service

• Know in advance how cloud provider can react to your changing demands

• Know the costs of using more compute / services

• Will the business pay for their increased IT use that meets their demand?


Demand Management• Requires management of demand from

both supplier and provider

• Identify if SaaS subscriptions will increase costs e.g. if a SaaS applications is more heavily used than originally

planned

• Does your procurement team understand cloud services and how to buy them?

• Have you enough OPEX to keep the tap running?


Common Questions

How will cloud affect financing IT & business services?


CAPEX v’s OPEX

39

Many cloud services consumes OPEX e.g.

• Office 365 subscriptions

• ServiceNow incident management seats

Considerations:

• Current budgets not set up for increased OPEX spend

• Who will pay for the extra OPEX spend?

• Fixed price for IT services still required by procurement

• CFO’s may want to spend CAPEX and *amortize it over a number of years

• Some cloud services require set-up costs

* How do you amortize subscription based charges?


Recommendations1. Understand the disruptive nature of cloud2. Identify where cloud can benefit the organization3. Realise that change to certain processes will be

required4. Adapt current policies, processes and procedures

where necessary5. Continue to capitalize on your ITSM investment6. Don’t reinvent the wheel – Use & adapt current

practices for cloud7. Use ITIL and other best-practice to overcome

challenges and explore new opportunities


Helpful Resources

Cloud Service Manager (Mark O’Loughlin-Lead Author)

https://www.itpreneurs.com/course/cloud-service-manager/

Cloud Service Architect

https://www.itpreneurs.com/course/cloud-solutions-architect/

NIST

http://www.nist.gov/itl/cloud/

Axelos White Paper on Cloud Computing

http://www.axelos.com/gempdf/Best_Practice_In_The_Cloud_An_Introduction.pdf

https://www.itpreneurs.com/course/cloud-service-manager/

https://www.itpreneurs.com/course/cloud-solutions-architect/

http://www.nist.gov/itl/cloud/

http://www.axelos.com/gempdf/Best_Practice_In_The_Cloud_An_Introduction.pdf

Cloud Service

Manager

Cloud Security

Manager

Cloud Solutions

Architect Cloud

Administrator

Cloud

Developer

CCC Professional

CCC – Cloud

Technology Associate

CompTIA – Cloud

Essentials

CCC –

Virtualization

Essentials

IT Professional

The ITpreneurs Cloud Portfolio

Copyright © 2014 ITpreneurs. All rights reserved.


Cloud Service ManagerModules

• Cloud Service Management Fundamentals

• Cloud Service Management Roles

• Cloud Service Strategy

• Cloud Service Design, Deployment and On-Boarding

• Cloud Service Management

• Cloud Service Economics

• Cloud Service Governance

• Showing the Value of Cloud Services

• Popular Service Management Frameworks


Review• Cloud Computing

• Benefits & Importance of Cloud

• Cloud and ITSM Convergence

• Scenarios

• Recommendations

• Helpful Resources

it's getting cloudy in it service management

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com17benefits of cloud

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new technologycloud

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