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ITIL Fundamental Training

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  • 1. Case Study: Effective Strategies in Managing SLA Costs Dr.Thanachart Numnonda Business Development Director Sun Microsystems (Thailand)
  • 2. Agenda ● Introduction to Sun Microsystems ● ITIL ● Sun Approach on SLA ● Managed Services 2
  • 3. Guided by a Singular Vision: “The Network is the Computer” 3
  • 4. Our Vision: • 1 billion+ people on the Net today • 390 gigabytes of data created every second The • 50% new data growth Network 1.5 Billion Is the Computer Internet Users TIME 1995 2000 2005 2010 Everyone and everything participates on the network 4
  • 5. Innovation, Choice, Greater Value Software Sัystems Services Storage Network.com Providing the Ultimate in Flexibility and Choice 5
  • 6. IT Service Management IT Service Management = ITSM ITSM is the use of best practices to manage services that meet customer requirements. ITSM objectives are : • align IT services with business needs • Improve quality of service • Reduce service costs
  • 7. ITIL History 1989 – publication of first ITIL elements Early 1990’s – maturity and growth in Europe Mid 1994’s – ITIL first introduced into SEA Late 1997’s – ITIL revised and updated Early 2000’s – Growth and acceptance in SEA 8 9 9 0 91 92 93 94 95 96 9 7 98 99 00 01 02 03 04 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20
  • 8. What is ITIL? • ITIL = IT Infrastructure Library • A best practices framework used to develop IT processes • Based on the experience of industry experts worldwide • Consists of a series of books for delivering quality IT services • Is the de facto standard for IT service management
  • 9. What ITIL is not? • ITIL is not a step-by-step out of the box set of procedures • ITIL is not intended for use as a single product or standard • ITIL is not etched in stone!  it is evolving
  • 10. ITIL Mission “to provide a comprehensive, consistent and coherent set of best practices for IT Service Management processes – promoting a quality approach to achieving business effectiveness and efficiency in the use of information systems”
  • 11. ITIL Business Perspective • Evaluate IT costs in business terms • Map end user requirements to specific service level targets • Balance service levels with true costs • Manage problems based on business priority • Improve communications between IT and business
  • 12. ITIL Publication Planning to Implement Service Management Service support ICT The Business Infrastructure Perspective Management Service Security delivery Management Application Management
  • 13. Service Desk (Provide a single point of contact between customers, end users and the IT service provider) Provide Incident Management services to (Ensure IT services are restored as quickly as possible) End user Problem Management (Determine the root cause of disruptions) Change Management Service Support (Enable IT services (Ensure IT service component changes meet business needs) to be provided to End Users by the Release Management IT Service Organization) (Version control, grouping changes, plan & test to protect live environment) Configuration Management (DB of IT components & relationships) Service Level Management Service Delivery (Define, negotiate, coordinate, monitor and manage Service Levels) (Ensure that IT services are provided as agreed upon Financial Capacity Availability IT Service between the Business and the IT Service Organization) Management Management Management Continuity (Accounting, (Ensure IT (Ensure the (Minimum service Budgeting, resources are Availability, provision Reliability, during disaster) On Charging) available as behalf needed) Security) of Business
  • 14. Process - Service Delivery Service Level Management Financial Management Availability Capacity Management Management IT Service Continuity Management
  • 15. Ongoing Quality Improvement Deming Cycle Quality Improvement n Pla t Ac Quality heaven Do k C hec Documentation Standard
  • 16. Service Level Management
  • 17. Goal • To maintain and gradually improve business aligned IT service quality through a constant cycle of agreeing, monitoring, reporting and reviewing IT service achievements
  • 18. Definition Customer Service Level Manager Negotiation process Service Catalogue Service Level Requirement (SLR) Service Level Agreements (SLA)
  • 19. Definition Customer Service Level Agreements (SLA) Service Level Management Operational Level Underpinning Agreement (OLA) Contracts (UC) Internal Service Provider External Service Provider
  • 20. Level of Expectation Generic SLA Expected Exceptional Outstanding Customer expectation level of service
  • 21. Activities • Planning • Implementation • Ongoing Management • Reporting
  • 22. Activities • Planning › Scope, objective and Mission statement › Awareness Campaign › Plan monitoring capabilities › Establish initial perceptions › Review or implement UCs and OLAs
  • 23. Activities • Implementation › Produce the Service Catalogue › Manage expectations › Pilot (in an easy area) › Establish monitoring capabilities › Review UCs and OLAs › Define reporting and review periods › Publicise the existence of the SLAs › Establish SLA, draft SLA › Choose words carefully (independent QA) › Seek agreement (with the right person!)
  • 24. Activities • Ongoing management › Monitoring and reporting (e.g. RAG charts) › Service review meetings › Service Improvement Program (SIP) › Maintain SLA, OLA, and UC • Reporting
  • 25. SLM Process Development Delivery Service UC Catalog Spec SLA Sheet Service Service level OLA Achievement Quality plan define monitor Contract/ Negotiation (draft, amend, report conclude) Service level identify Report Service level review Requirement Service Improvement program Customer demand
  • 26. Service Level Requirement Email Calendar Office Service Hours 7 x 24 7 x 24 7 x 24 Availability / reliability Can afford downtime of Can afford downtime Can afford downtime • Half a day of of • 2hrs for credit •A day •A day control Support Hours 7 x 24 7 x 24 7 x 24 2 hours resolution 2 hours resolution 2 hours resolution Throughput / Transaction Send & receive within 2 Don’t care Don’t care response time mins Security Mail data should be secure Charging Fix Cost for 5MB per user All mails should be backup weekly and archive for 5 year duration Service Reporting and Volumes of email Reviewing Email Calendar Office
  • 27. Sun Managed Service
  • 28. Do You Want to Be Free to Take Your Business to a Remarkable Place? Would You Like to... • Address IT challenges while staying focused on strategic initiatives? • Maintain control of business-critical systems with flexible services that fit your requirements? • Improve business service levels? • Extend staff capabilities without hiring extra staff? • Reduce IT operating costs? 49
  • 29. Understanding and Serving Our Customers Sun Offers Flexible, Yet Holistic Solutions for Your IT Sourcing Needs Business Drivers Benefits of Sun Managed Services Optimize • Use predictive management techniques IT Infrastructure • Ebay: “They (Sun Managed Services) keep the To stay focused on infrastructure running smoothly so we can be thinking about the next big thing.” strategic initiatives Maintain IT • 24x7 continuous management of your operations all year round Service Continuity • Minimize outages & reduce the threat of financial To maximize loss system availability • Vodafone España: Achieve 99.9% system availability Retain Control of • Choose selective sourcing rather than outsourcing IT Infrastructure • Hire Sun to manage only what you want managed To support • National Grid Wireless: Built trust and confidence heterogeneous with senior management environment 50
  • 30. Understanding and Serving Our Customers Additional Business Drivers that Sun Addresses . . . Business Drivers Benefits of Sun Managed Services Reduce • Meet regulatory and compliance requirements • Protect entire IT environment from security breaches Security Risks and leaks using Sun’s ITIL-compliant framework To minimize • Chicago Public Schools: Improved security and business impacts firewall protection Address Staff • Extend staff and fill gaps with skilled Sun resources Shortfalls • Shorten learning curves with knowledge transfer To extend capabilities from Sun when bringing operations back in-house without hiring extra staff • Coventry Building Society: Saved 100 staff hours • Reduce annual operating costs by hundreds of Manage IT thousands of dollars Infrastructure Costs • Lower engineering and integration costs To reduce operating • Callidus Software: Passed 50% cost savings to expenses customers through subscription services 51
  • 31. Selectively Sourcing: An Alternative Way to Outsource You Maintain Flexibility and Control, While Using Sun's Deep Pool of Cross-Functional Talent • Extend your IT staff with Sun talent • Maintain a single point of accountability • Cover heterogeneous, end-to-end operations of your IT infrastructure • Minimize business risks with ISO 27001 Org Security Certification (2008) combined with ITIL-based Staff Certification • Gain efficiencies and reduce costs by leveraging Sun Managed Services resources and delivery solutions 52
  • 32. What Can Sun Do for Your Business? The Value to Customers of Selectively Sourcing with Sun Example Efficiency Gains • 75% server utilization and 99.96% availability for increased efficiency and availability • 100 hour per year reduction in staff time • 77% expansion in available IT service hours Example Cost Reductions • $1.3 million dollar savings in five years • 70% reduction in technical support for platform monitoring and management • $1 million per year savings from new optical network Customer Snapshots: http://www.sun.com/customers/index.xml?t=service Customer Testimonials: http//www.sun.com/customers/testimonials/services.jsp 53
  • 33. The Overall Sun Services Portfolio Infrastructure Services for the Customer Life Cycle Professional Services Build Support Connected Services and Managed Support Services Integrated Learning Services Transform 54
  • 34. Sun MANAGED Services At a Glance Adaptable IT Sourcing Approaches Sun Operations Management • Sun Onsite Operations Management • Sun Remote Operations Management • Combined Onsite & Remote Options Sun Transformational Services • Help enable your IT services to: > Support the business in responding quickly to competitive changes > Rapidly deploy new technologies > Better utilize resources 55
  • 35. Sun Managed Services - A Closer Look Understanding the Fundamentals of Our Offering Support Professional Services MANAGED SERVICES Services Sun Standard Processes Tailored to Processes Customer's Solution Break/Fix Support as Needed Day-to-Day Management Specialized Engagements Onsite Delivery Both Onsite & Remote Sun Sun Onsite Transformational Operations Services Management Sun Remote Remote Delivery Operations Management 56
  • 36. Sun Onsite Operations Management Customized, Onsite Services to Mitigate Business Risks • Targeting potential areas for improved service levels • Faster time-to-business benefit when adopting new technology • Bridge skill gaps and transfer knowledge of management of new technologies to your IT staff • Helps operate, manage, and transform Sun’s onsite operations without adding long-term, fixed costs management services enable efficient, to the IT budget predictable IT services and operations by combining • Sets the basis for other cost-effective innovative technology, skilled operational management choices resources and proven methodologies 57
  • 37. Onsite Phases and Deliverables Phase Deliverables 1. Service Initiation• Service Initiation Documents: Project Plan, Infrastructure Plan, Staff Plan • Assessment Report: Documents customer requirements 2. Assessment and positions client on a service model maturity matrix • Service Catalog Entries, Service Improvement Plan, 3. Service Definition Measurement Plan, Transition Plan, Operational and Planning Process Plan, Operations Process Manual, Standard Edition iRunBooks 4. Operations • Summary Reports, On-site Service Management 5. Transition • Re-Assessment Report, On-site TOI Sessions 6. Service Closure • Detailed Completion Report, Service Completion Form 58
  • 38. Sun Remote Operations Management Remote 24x365 Monitoring and Management of Any Platform • Adaptable solutions customized for your business requirements • Services extend to all areas of IT, such as the Operating System, Servers, Storage, Network, Database, Applications, and much more • ITIL-based best practices • Assigned account managers Remote operations management and engineers services deliver predictive, adaptable, • Operational efficiency ensures fast cost-effective solutions to improve operational efficiency in implementation and response time heterogeneous IT environments 59
  • 39. Remote Implementation Phases Sun Remote Operations Build Validation Solution Goes Live and Customer Training Physical Setup of Solution Handover to Implementation Team Test and Operations and Initiation Phase Build Phase Validation Phase Support Phase Implementation Time Frame is Dependent on Scope and Customer 60
  • 40. Comprehensive Expertise ITIL Framework with a Predictive Approach to Service REGULAR 24x7 WEB HETEROGENEO ENHANCED REPORTING MONITORING ACCESS US SERVICES CAPABILITIES Operating Systems AREAS OF EXPERTISE Process Disciplines Networks • Incident Mgmt. • Change Mgmt. Security • Inventory Mgmt. • Problem Mgmt. Storage Proactive Services Databases • Administrative Mgmt. Applications • Patch Mgmt. • Code Release Web Servers 61
  • 41. Monitoring Capabilities: Baseline Service Our People Make the Difference Event Detection Event Qualification (Filtering and Classification) Event Receipt There’s always someone on the Incident Notification other end of that (15-minute SLA) alert waiting to Severity 1: immediate action required prevent technical Severity 2: preventative action required problems before they impact Incident Ticketing and Tracking business 62
  • 42. Monitoring Capabilities: The Sun Advantage Sun’s Method of Filtering and Prioritizing Events Reduces “the Noise” by 99% DAILY EVENT TOTALS SUPPRESSION METHOD 127M Events 131M Raw Events Suppressed by Inbound to Appliances Appliances 4M Events (+ 70M Reporting) 3.8M Network Data Points to Systems Core Management (CTS) System ~5,100 Maintenance Alarms ~209,000 Events Analyzed ~197,000 Informational ~4,500 ControlCenter ~6500 Alarms to ControlCenter Reduction of 99.99% from Raw Events De- Duplication/Discards ~2000 Ticketed Events (of which ~670 are correlated to existing incidents) Ticketed Events represent ~30% of Actionable Alarms PLEASE NOTE: Data points provided reflect average daily totals based on system information from July-August, 2008. 63
  • 43. Management Capabilities: Robust Options Frees up IT Staff to Focus on More Strategic Tasks A Wide-Range of Management Services Problem Management / Resolution of Incidents Planning and Support for Change Controls Proactive and Administrative Tasks Track Inventory of IT Systems Management of Third-party Vendors Performance and Availability Reporting Specialized Areas of Expertise 64
  • 44. Sun's Global Reach When we say anytime, anywhere . . . we really mean it. 65
  • 45. Sun Operations Management Right Mix of Onsite and Remote Management Services • Flexible payment structures with no up front capital costs • Improved operational efficiency of existing infrastructure • Ability to include secure off-site hosting for full infrastructure options • Sun as your single point of accountability Sun provides the options to enable our customers to plan and deliver on • Focus on core business initiatives while their Sun takes care of your day-to-day multi-sourcing strategies with improved operational needs operational efficiencies and *Innovative leasing options available on request increased service levels 66
  • 46. Sun Transformational Services Turn Your IT into a Strategic Business Advantage • Establish efficient, predictable IT services and operations • Combining expertise, technologies and proven methodologies • Help enable your IT services to: > Support the business in responding quickly to competitive changes > Rapidly deploy new technologies > Better utilize resources > Ensure predictable and measurable service levels, with consistent and global processes > Extend your IT staff with expert resources 67
  • 47. Sun Transformational Services Expertise to Help Maintain Flexibility and Control During Change For Example: • Consolidating your resources > Reduce IT costs, while delivering higher levels of services • Migrating to virtualization > Drive cost and complexity out of your data center to meet today’s needs and prepare for tomorrow • Adopting new technologies rapidly > Maintain IT service continuity with minimal disruption to your business • Relocating data center > One-stop solution for relocation and migration needs 68
  • 48. Delivery Now and Ready for the Future Thinking Ahead for Our Customers’ Challenges Virtualized Open Volume Identity Systems Source Servers Management x64 Java Enterpris System (JES) 1 Containers 0 LAMP SAMP 69
  • 49. Why Customers Choose Sun Managed Services 70
  • 50. Callidus On-Demand Chooses Sun Industry: Sun Products and Services: Software Sun Managed Operations Challen • Focus internal resources on developing software ge • Deploy a reliable technology platform to add value and reduce costs • Eliminate the need to re-architect the solution for use in a subscription environment Solutio • Callidus relied on Sun services and technologies to successfully bring a subscription software solution to market. n • Achieved 99.97 percent solution availability and 75 percent server utilization Results • Launched new subscription business in five months • Grew from 0 to 25,000 subscribers in 18 months • Passed 50 percent cost savings to customers through subscription services “ The combination of Sun technology and Sun Managed Services has been invaluable. The Sun technology is a very solid base for our business, and the services team has worked as a fully invested partner since the beginning, helping us launch in five months and responding quickly as we innovate and grow. ” — Jeff Saling, Vice President of Callidus OnDemand, Callidus Software 71
  • 51. Vodafone Espana Chooses Sun Sun Products and Services: Industry: Communications Sun Managed Services, Sun Learning Services, Sun Professional Services • Deliver reliable, high-quality mobile services Challenge • Assure availability of critical applications and data • Reduce operating costs • Maximize IT productivity Solutio • Vodafone España engaged Sun Managed Services for remote monitoring and management of more than 400 critical n application and database servers • 99.8% average system availability Results • 51% reduction in incidents reported • 36% reduction in Operational Risk Index (ORI) • 70% reduction in IT staff hours for platform monitoring and management “Sun Managed Services not only provide us with high quality service, but they have also enabled us to optimize system performance and increase the return on our investment in technology. ” — Miguel Angel Vázquez, Director of Systems Management and Implementation, Vodafone España 72
  • 52. Coventry Building Society Chooses Sun Industry: Sun Products and Services: Financial Services Sun Managed Operations • Keep Internet, Core Banking and Automatic Teller Machine (ATM) Challen services available 24x7 ge • Address technical issues rapidly to minimize downtime • Identify root causes of technical problems Solutio • Management and monitoring of critical systems supporting Coventry’s core business, rapid technical issue remediation, n root cause analysis 24x7 • Saved 100 staff hours for out-of-hours patching of critical servers Results • Reduced downtime related to system failures • Proactively prevented system failures through root-cause analysis of performance issues “Sun Managed Operations Services provides us with the round-the-clock alerts and technical support expertise we need to put our members first and deliver exceptional service. The out-of-hours patching service provided by Sun Managed Operations saves us 100 staff hours per year.” - Karen Humphrey, Technical Support Team Lead, Coventry Building Society 73
  • 53. Sun Remote Operations Management Did You Know Sun Supports 400+ Technologies? AREAS OF SUN EXPERTISE SAMPLE SUPPORTED TECHNOLOGIES Operating Systems VP Networking TCP/ N LAN WA Content IP N Switching Security PIX Storage Databases Applications LD AP II Web Servers S - ISO 27001 Security Certified in Americas, Europe, & Asia Org - ITIL Certified Staff Certifications 74
  • 54. When IT and Business Goals Are in Balance, Remarkable Things Happen ... • Free-up IT staff so you can focus on strategic business initiatives • Gain control over your processes using an ITIL-based approach to gain better efficiencies • Create a flexible operating infrastructure – one that adapts readily to new technologies • Accomplish day-to-day IT tasks securely and more effectively to ensure that crucial data is protected and available • Achieve a balanced ecosystem where IT capabilities and business strategies are aligned and working as one 75
  • 55. Thank you Dr.Thanachart Numnonda thanachart.numnonda@sun.com