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Babak Hosseinzadeh   IT Portfolio Management In Shared Services & CC
 

Babak Hosseinzadeh IT Portfolio Management In Shared Services & CC

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IT Portfolio Management & Cloud Computing

IT Portfolio Management & Cloud Computing

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    Babak Hosseinzadeh   IT Portfolio Management In Shared Services & CC Babak Hosseinzadeh IT Portfolio Management In Shared Services & CC Presentation Transcript

    • IT Portfolio Management in g the World of Shared Services & Cloud Computing Babak Hosseinzadeh / CTO / New Bridge Strategy Architecture World ‘09 IT Architecture Firm
    • Overview Background Information Quick Overview of Cl d C Q i kO i f Cloud Computing i IT Portfolio Management - Definition & Context Impact of Cloud Computing on IT Portfolio Management p p g g Summary Architecture World ‘09 IT Architecture Firm
    • A quick review in the enterprise… enterprise Decentralized Computing exity Centralized Comple Computing (shared services, Centralized shared Computing infrastructure…) 1970 2005 3 IT Architecture Firm
    • 1970 2005 Focus on “Data Processing” IT-led business innovation & transformation The role of IT in the organization was simple Increasing demands, expectations, and business reliance on IT Few standalone apps in select departments Different types of solutions throughout the enterprise A few internal users mostly in the same Internal users in different locations & geos, work usiness location arrangements, habits… + external interactions over different channels Bu Users had limited IT skills The business community is increasingly IT savvy Business operation used to be 9 – 5 (M-F) 24x7 connectivity, availability, and reliability Controlled & predictable workload Less controlled & unpredictable workload System availability & reliability requirements Service Level Objectives are much more complex and impact were simple and only impacted the enterprise the value chain Small set of vendors Different types of vendors and solutions Simple technology stack Complex technology stacks A few low level languages and tools g g Different high level languages, multiple tools (i.e. CASE, g g g p ( Technology y SLDC repositories, sophisticated compilers, interpreters…) Simpler solution approach, architecture, and “Enterprise Architecture”, multiple layers, distributed implementation computing, exponential data growth, OO, SOA, EDA, Grid… A few IT roles Multiple new roles, titles, and specialized skills Central development with in-sourced resources Distributed development teams & hybrid sourcing models IT operation & management used to be simple IT operation and management is much more complicated 4 IT Architecture Firm
    • Since 2005, New Models of IT Sourcing & Computing… S i C ti "Service“ Service Oriented Architecture Service Oriented Infrastructure Service Oriented Integration Service Oriented Enterprise Service Oriented E S i Oi d Economy ... Architecture World ‘09 IT Architecture Firm
    • Common Questions What is Cloud Computing? How H mature i i ? is it? How is it used in my industry? What are the specific opportunities for my business? p pp y Conversely, is it a threat to my business? What is the adoption roadmap? What are the key issues & risks? What is the business impact? What are the key metrics and best practices? … Architecture World ‘09 IT Architecture Firm
    • What is Cloud Computing? p g A pool of highly scalable, abstracted infrastructure, • Scalable, abstracted capable of hosting end-customer applications, that is infrastructure billed by consumption. • Hosting environment • Utility-based billing • Style of computing A style of computing where massively scalable IT-related • Massively scalable functions and information are provided "as a service" using f ti di f ti id d " i " i • “Shared services” Internet technologies, potentially to multiple external • Internet accessible customers. Cloud Computing an emerging IT development, deployment and delivery model, that enables Cloud • IT development, Services. deployment, & delivery p y , y model Cloud Services: Consumer and Business products, • Dynamic provisioning services and solutions that are delivered and consumed in • Cloud Services real-time over the Internet IT Architecture Firm 7
    • Cloud Computing Model Solution Business Capability Control Flexibility Customization IT Architecture Firm 8
    • Cloud Computing Vendor Landscape Note: Sample list of vendors IT Architecture Firm 9
    • Cloud Computing Responsibility Matrix Infrastructure Hosting IaaS PaaS SaaS Provider Data Center Hosting provider has the Subscriber has no idea… IaaS Subscriber has no idea… PaaS Subscriber has no idea… SaaS Management overall responsibility. provider abstracts the provider abstracts the provider abstracts the Customers may negotiate infrastructure. infrastructure infrastructure. infrastructure infrastructure. infrastructure location. Infrastructure Hosting Provider has the IaaS provider handles the physical (1) PaaS may run its own (1) SaaS may run its own Operation & overall responsibility. infrastructure, but the subscriber is infrastructure infrastructure or partner Management Customers may negotiate responsible for image creation, (2) PaaS may partner with an IaaS (2) SaaS may offer its own PaaS specific terms. operation and management. provider or partner In both cases, it is abstracted from In both cases, it is abstracted from the subscriber. the subscriber. Infrastructure Hosting Provider offers a pre- Subscriber creates virtual images PaaS provider offers some N/A - There is typically no Configuration / defined menu, but customers and manages the configuration & capabilities for application infrastructure customization Customization have the option pay for customization configuration & deployment customization Infrastructure Hosting Provider offers basic Typically, infrastructure support is N/A – PaaS provider offers N/A - There is typically no Support support. Additional support provided through forums. support for PaaS typically infrastructure customization can be negotiated. Premium support can be obtained, through forums. but Subscribers ultimately handle infrastructure support. Application N/A – Customer is responsible. N/A – Subscriber is responsible N/A – Subscriber is responsible SaaS provider offers the solution Development Application N/A – Customer is responsible. N/A – Subscriber is responsible N/A – Subscriber is responsible SaaS provider offers some Customization customization capabilities. 3rd p parties offer services. Application N/A – Customer is responsible. N/A – Subscriber is responsible N/A – Subscriber is responsible SaaS provider handles Maintenance maintenance for all subscribers Application N/A – Customer is responsible. N/A – Subscriber is responsible N/A – Subscriber is responsible Typically forums Support IT Architecture Firm 10
    • Sample IT Bill from Amazon IT Architecture Firm
    • IT Portfolio Management An IT management practice Smart IT investments and financial management decisions Covers the entire IT lifecycle (select, build, deploy, monitor, optimize) Builds on existing methods (i.e. TCO, ROI, NPV) Leverages existing frameworks (i.e. Val-IT, COBIT, ITIL) Val IT, Integrates with other IT management practices (i.e. Asset Management, Project Portfolio Management, Application Portfolio Management, Service Portfolio Management) g ) Objective: Better visibility and management of IT investments Managing IT investments holistically as a set of related portfolios directly aligned with business objectives Continuous optimization of IT investments to maximize value & create new opportunities Architecture World ‘09 IT Architecture Firm
    • IT Portfolio Management Context Note: In EA, above Application domain, we are talking about SOA services not ITIL… Architecture World ‘09 IT Architecture Firm
    • Why Should You Care? IT has been under financial scrutiny for the last decade. According to analyst surveys, majority of business users are unhappy with IT costs, the length of time it takes to get anything done, etc and demand better value. Since the recession, there were significant cutbacks in IT budget. IT is expected to do the same (or more) with existing financial resources. Business i putting more pressure on IT b requesting service l l that i is i by i i levels h are hard to maintain (i.e. 99.99% availability…). The old “throw more hardware at it” isn’t financially feasible. In some mature companies IT is deep in innovation value chain It is companies, chain. necessary to have a better level of financial visibility (and predictability) to make sound IT investment decisions. In some companies the reporting structure has changed The CIO is companies, changed. reporting to the CFO. There is higher expectation to manage “IT as a business”. Overall, LoB executives expect better IT financial transparency & , p p y reporting. Architecture World ‘09 IT Architecture Firm
    • Typical Barriers to Portfolio Management Awareness Skills Skill Tooling IT Governance Maturity y Organizational Culture Management Support Architecture World ‘09 IT Architecture Firm
    • Business Value Disciplines Strategic Focus IT-Enabled Value Operational Excellence O ti l E ll • Effi i Efficiency • Automation • Integration • Agility Customer Intimacy • Integration (360˚ customer view) • Customer relationship management • Predicting customer needs • Agility •… Product/Service Leadership • IT/Business innovation • Service Delivery • Service Provisioning •… Source: The Discipline of Market Leaders - Michael Treacy & Fred Wiersema Architecture World ‘09 IT Architecture Firm
    • IT Portfolio Management by Investment Type Source: IT Governance: How Top Performers Manage IT Decision Rights for Superior Results p g g p Peter Weill & Jeanne W. Ross – USED WITH PERMISSION. Architecture World ‘09 IT Architecture Firm
    • Impact of Cloud Computing on IT Portfolio Management Domain Impact of Cloud Computing Financial • Subscription billing – This alone will provide a significant improvement into financial visibility and transparency to the Management enterprise . (N.B. Many offer up-to-the-minute usage information.) p ( y p g ) • Financial evaluation – It is much easier to evaluate the costs (i.e. TCO) of a Cloud based solution than an enterprise solution, as majority of the variables associated with indirect costs (which are often difficult to fully capture & calculate) no longer exist • Financial reporting – CC drives down the costs & efforts of capturing financial metrics • IT budget planning – CC should simplify IT budget planning in most enterprises – There are some considerations that management needs to pay attention here. • IT charge back – CC can reduce the efforts in charge backs, but the benefit varies from enterprise to enterprise due to the charge-back charge-backs unique requirements Project Portfolio • Project Funding – It is much faster to start a Cloud-based project, because the costs can be determined quickly and the costs Management are substantially lower than the traditional methods • Project Initiation : • Wi h CC access to compute resources i i With CC, is instantaneous and very cost effective d ff i • For IaaS & PaaS, majority of the software is already pre-loaded. For SaaS, the solution is already out there, but it may need customization / integration. So, in general, ramp-up is much faster than the traditional model. • Project Tracking/Reporting – CC providers, by virtue of their business model, the provide many up-to-the-minute reports available, so it makes it easier for PMs to manage the projects. Service Portfolio • P tf li Analysis & Tracking – CC billing makes it easy to track deployed services, understand who’s using them, how Portfolio A l i T ki billi k t t kd l d i d t d h ’ i th h Management often they are used, and calculate the average costs. Also, CC providers offer operational metrics which helps measure SLAs for internal users. These are all huge benefits that remove operational issue at many organizations Application Portfolio • The same benefits from Service Portfolio Management apply here. Management Asset Management • The same benefits from Service Portfolio Management apply here. • In addition, CC removes the hassles associated with asset audit, renewal, configuration, distribution, etc…. Vendor/Contract • Vendor management / Contract negotiations are substantially facilitated in Cloud Computing. Management Architecture World ‘09 IT Architecture Firm
    • Summary IT Portfolio Management is a process with touchpoints from idea inception validation post i l id i i lid i implementation i IT Portfolio Management provides financial visibility and transparency. This is essential for value creation. p y Cloud Computing brings positive change in many different aspects to the enterprise It enables business to experiment enterprise. with different ideas quickly, and cost-effectively. Cloud Computing is inherently fast and metrics-oriented. Capturing results, f db k and analytics are super easy & C i l feedback, d l i fast. Architecture World ‘09 IT Architecture Firm