The non-traditionalapproach to ITO –transformational solutionsand utility servicesBryan Britz, Research Director, GartnerJ...
Today’s challengesDo more with less             Unprecedented                 Overtaxed resourcesStatic or shrinking budge...
Traditional operational delivery structureshave significant overlaps and costs                                            ...
Next generation service delivery models willbe leaner and more operationally focused                      Automation      ...
Industrialization is the responsefrom leading IT services providers                 Key tenets of industrialized ITO      ...
Industrialized services differ from largescale IT outsourcing contracts             Reduce transition time and expense    ...
Service industrialization offers promise                 Today                                   Next wave    • Standardiz...
You will decide the timing for the nextwave of service industrialization                                                  ...
Gartner Magic Quadrant                           Gartner’s Data Center                           Outsourcing &            ...
“It used to be that when you went to a customer, you hadto do everything to their standards and specifications.Customers [...
Keys to unlocking IT efficiency  Standardize                   Simplify                                   Automate        ...
Dell industrialized ITO solutionsConfigurable services from Dell’s industry leading ITO capabilities                      ...
Labor Turnover and ShortageEducationManaged Server, Backup & NetworkChallenge• Customer is at risk of losing key IT talent...
Cloud enablementin financeManaged Services for CloudChallenge• Customer wanted to move non-core IT  functions such as infr...
Minimizing lost revenuein retailService deskChallenge• After attempting a home-grown  solution, customer needed a reliable...
Recognized industry leaders8                                                                              20 years        ...
What is your plan?Let’s get   • Where do you want to standardize versus specialize?started     • What is required impact? ...
Please help Dell meet your needsby filling out the Session Evaluation Surveys    On paper    Content                      ...
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The non-traditional approach to ITO –transformational solutionsand utility servicesBryan Britz, Research Director, GartnerJoe Schoenbaechler, Vice President, Dell Services Confidential

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  • Hello and welcome to our session today to discuss trends in IT outsourcing, what is occurring in the industry, and how Dell is positioned to help you adapt to these changes – today and as you transform your IT operations.We welcome Bryan Britz, Research Director with Gartner to provide us with his unbiased perspective on trends in the industry, and how these trends are influencing leaders like you in how you consider managing and outsourcing IT services in the future. Thank you for joining us today Bryan.After Bryan provides his perspective, I will discuss the capabilities that we have across Dell Services, and how we can leverage these industry leading capabilities to provide IT management and utility solutions to help you address the many challenges you face in your business today.With that, let’s get started.
  • Managing IT in the digital era is complex, add to that a convergence of business and IT….and the result is IT resources that are maxed out, unable to get it all done. Budges are shrinking, complexity is rampant, demands are growing faster than IT leaders can plan, manage, and execute with traditional solutions…in many organizations, 80% of IT spend is focused on “keeping the lights on”.Downtime hurts you and your end users. Complexity is increasing when you consider the many proprietary and non-proprietary solutions that exist. How do you move towards the cloud ? How do you handle security threats, and how do you monitor your operations around the clock with these complexities and often limited staff ?We (Dell) understand these challenges. We enable our customers everyday to do more, with technology and services solutions, leveraging the end-to-end capabilities of our services portfolio, many of these services widely recognized by industry leaders and analysts as some of the best capabilities in the industry.We also manage these challenges for Dell IT – now with more than 50% of our IT resources focused on innovation and total IT spend at <1.5% of revenue…nearly 100% of our internal IT systems are X86 (97%), two primary server images, single global client image…virtualized (11K servers, eliminated 6K servers)…significantly reduced number of apps (nearly 4X reduction from 2007 to 2011)We also understand that you want to understand your options, as well as learn about key trends in IT Management – basically what are others doing & how do you develop a plan? That is why we have asked Bryan Britz,. Research Director from Gartner Group to share with us his unbiased thoughts on this topic. After Bryan, I’ll share more about the Dell POV on transforming IT.
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  • Gartner
  • Gartner
  • Gartner – New industrialized services are being introduced by providers and will continue to be introduced in the coming years. These services will change the paradigm of ITO relationships in several ways.First, transition times will be significantly reduced. This is partly due to the provider transitioning less of your existing capabilities. Industrialized service delivery must operate in a service factory, not a repair and refurbishing shop.Second, the phase identified as transformation also shrinks significantly by making the future state common across clients. This is a more platform-based approach to service delivery. A major change here that you should expect from your providers is that they assume more upfront risk associated with R&D activities and ongoing investment and reinvestment strategies to continue improving the quality and cost effectiveness of the service factory. Finally, change is introduced through release management type processes where you as the client will be granted access to new features and benefits.Strategic imperative: Identify noncore and lower risk functions that you can use for piloting industrialized services before evaluating such offerings as part of a larger ITO solution bundle.Recall as stated earlier, this entirely different view of outsourcing is essentially a compromise for all involved. The providers can build the service delivery model, but if clients do not change your approach to evaluating, selecting, and managing service…the old and inefficient paradigm will continue to be sustained.
  • Gartner
  • Gartner
  • Gartner
  • Thank you Bryan for sharing your perspective on the trends you are seeing as well as the feedback you have received from customers. For the remainder of our time, I’d like to share more on the Dell POV on IT Management transformation and what we are seeing in the industry.{Read quote on slide out loud}The advent of standard, open architectures provides the ability to deliver a broader range of standardized service solutions to maximize efficiency and ROI of the capital investments you’ve made…It is becoming increasingly difficult for enterprises of all sizes to justify custom services solutions…the legacy outsourcing solution based on “your mess for less” doesn’t always allow for innovation or adoption of standardized solutions.We are also seeing a convergence with many of our customers who want to see more proactive support services, and increasingly standardized managed services to help deliver the productivity and flexibility they desire.We believe we are well suited to be leaders in this transformation of IT leveraging our DNA built on standard, non-proprietary products and services, leveraging the strengths we have in our services business…Really Dell? Yes, Dell! Direct relationships, highest customer satisfaction (#1 in support customer satisfaction 30 of the last 36 reporting periods by TBR), industry recognition for our outsourcing services (referring to Gartner MQ) and a maniacal focus on delivering cost effective solutions while meeting or exceeding industry benchmarks for Net Promoter Score..Just think about the scale we can leverage. Operating from over 150 sites worldwide, Our field services are exactly the same, whether it’s for an outsource customer or our support services. Our service desks are run almost exactly the same as our support desk. …We don’t have to reinvent the wheel every time. You benefit from maximum cost advantage…and can rest assured that you’ll get the best quality experience.
  • Notes pending from Rodger McArthur.
  • Just like our support business, we have a rich legacy in IT outsourcing. For over 20 years, we’ve served large enterprises and public institutions with outsourcing services resulting in 8 outsourcing excellence awards. Today we manage over 65,000 servers and installed MIPs for our ITO customers.Capabilities that allow us to bring more value to our customers include: standardized service catalogs, workflow automation, leverage of best shoring strategies (options for off shore, near shore, on shore), and the introduction of our utility infrastructure solutions (Dell Cloud on a pay as you go basis, reserved basis, or dedicated basis as well as hosted SAP and other SaaS solutions like KACE, Boomi)We recognize that your transformation may require flexibility over time, to allow for a reshaping of your environment (consolidation, simplification, virtualization) and it may require ongoing flexibility (elastic models for peak periods).To meet these needs, we have added:Packaged remote management solutions with reduced minimums like managed server, managed network, or simplified service desk that allow you to supplement your operations (perhaps just your remote sites), and get the benefits of outsourcing without giving up control. As you want to expand these services, we can scale with you.Infrastructure utilities like Dell public cloud which can help you manage peak load. Our cloud solutions are available pay as you go, reserved, or dedicated and span multiple compute and storage solutions.We are only getting started with bringing you next generation solutions. Recent acquisitions like Wyse (Leader in Desktop Virtualization) and Quest (Leader in Applications Management) add to the value the Dell portfolio can bring to your transformation & efficient IT strategy.
  • Customer ChallengeCustomer wanted to outsource their non-core competency (infrastructure and non-core applications) to a service partner and to the CloudThe Customer’s existing service provider did not have a sufficient Cloud capabilityDell SolutionDell worked with the customer’s existing service partner to provide Cloud infrastructure and App migration from the Customer data center to the Dell secure cloud. Dell also provided managed services for the VMs and non-core applications, as well as storage replication. The customer retained management of core applications.Customer BenefitsReduced data center footprintRetained staff for core functions, shifted focus away from non-coreOverall IT management cost reduction
  • Customer ChallengeCustomer needed a reliable, cost-effective service desk solution for it’s retail locationsWas experiencing revenue loss from point of sale downtime In addition to the equipment logistics when a terminal or system goes down in one of the 200+ stores, customer was challenged with response times when locations would call in for supportSolutionService desk solution with replacement POS units, providing a four-hour response window for its stores that guarantees a whole POS replacement unit within four hours, even if staff cannot determine reason for failure. The solution integrates Dell’s and customer’s Remedy Service Desk solution for automatic dispatch of service and enables coverage for out-of-warranty equipment.Customer BenefitsAble to expand number of stores while improving service qualitySeveral employees reassigned to more strategic tasks due to integration help desk ticketing solutionsBecause customer now has a cost-effective service desk solution that it doesn’t have to hire staff to maintain, the company can focus on growthExpanded retail presence while significantly improving service qualityScalability of service coverage to meet customer demands.
  • Dell Services has been widely recognized by many industry leaders and analysts for our ability to provide a broad range of industry leading services…built on a platform of excellence in our support and outsourcing operations, and now enhanced with the addition of KACE, SecureWorks, Boomi, Quest Software, …these capabilities represent tremendous assets to help you meet your IT challenges. Gartner Magic Quadrant  leader ratings—from managed security to outsourcingNorth America Information Technology Asset Disposition (30 November 2011)Managed Security Service Providers (MSSP), North America (28 November 2011)Midrange and High-End Modular Disk Arrays (17 November 2011) Global Enterprise Desktops and Notebooks (24 October 2011)Data Center Outsourcing and Infrastructure Utility Services, North America (Aug 2012)Desktop Outsourcing Services, North America (24 July 2012)Help Desk Outsourcing, North America (24 July 2012)Blade Servers (5 March 2012) Unified Threat Management (5 March 2012)Application Performance Monitoring (Aug, 2012)8 “Outsourcing Excellence” awards won since 2004:2011 Best ITO: Towers Watson and Dell Services 2010 Best Transition: Centegra and Dell Systems2009 Best Interest Alignment: Northern Arizona Healthcare and Perot Systems2008 Best Partnership: Harvard Pilgrim Health Care and Perot Systems2008 Best First Steps: National Life Group and Perot Systems 2007 Best Partnership: Old Mutual Financial Network and Perot Systems2006 Best ITO: Vanguard and Perot Systems2004 Best Partnership: Owens & Minor, Inc. and Perot System
  • Hopefully, this session provided some useful insight on opportunities for transformation, as well as how Dell Services can help you with relatively “simple” solutions to more complex ones that can scale at your pace. These are not easy decisions, and this is going to be a journey we share. With that in mind, we leave you with these thoughts and hope to get your feedback and support as we evolve our own capabilities to serve you better:Where do you see the greatest opportunity to standardize within your own IT services model? Which outcome is most important to you ? ROI, predictable results, peace of mind, freeing up your staff to do more strategic work ? All of the above?Where are you in your transformation and how can the Dell expertise help?Thank you very much Bryan for your insight and perspective today, and thank you everyone for your attendance today. We are available after this session if you would like to talk with Bryan or any of our team on the Dell POV and solutions.
  • The non-traditional approach to ITO –transformational solutionsand utility servicesBryan Britz, Research Director, GartnerJoe Schoenbaechler, Vice President, Dell Services Confidential

    1. 1. The non-traditionalapproach to ITO –transformational solutionsand utility servicesBryan Britz, Research Director, GartnerJoe Schoenbaechler, Vice President, Dell Services Confidential
    2. 2. Today’s challengesDo more with less Unprecedented Overtaxed resourcesStatic or shrinking budgets complexity Keeping up with the scalewhile demands continue to Managing the myriad of IT and skill mix required to rungrow and resources complexities and their environmentsbecome more scarce technologies $$ ?Increased enablement Increased threat True 24/7Delivering services and Securing the network and Delivering accessapplications anywhere the data anywhere, at any time, onthrough the cloud any device Confidential
    3. 3. Traditional operational delivery structureshave significant overlaps and costs First lineDepth of competence Second line Subject matter experts Breadth of technical competence Confidential
    4. 4. Next generation service delivery models willbe leaner and more operationally focused Automation Proactive Operations Self Decision Expert support out-tasking service support systemsDepth of competence Expanded second line Ad hoc micro sourced expertise Intelligent Peer-to-peer Product Expert Change Best performance community advocacy services management practice analytics support advisory promotion services Breadth of technical competence Confidential
    5. 5. Industrialization is the responsefrom leading IT services providers Key tenets of industrialized ITO • Services that are quicker, • Pre-designed and configurable safer, more stable, reliable • Highly automated and repeatable and repeatable, and on a • Scalable and reliable larger scale than highly customized single-case • Increasingly available and visible service specifications traditional services (functional coverage, architectural specifications, performance and SLAs, whats included and whats excluded and price) • Entails an inherent change What should customers expect for industrialized in how services are designed, sold, ITO pricing? provisioned and delivered • Easy-to-understand service catalogs and price listings • Flexible billing options including utility infrastructure Confidential Source: Gartner
    6. 6. Industrialized services differ from largescale IT outsourcing contracts Reduce transition time and expense Virtually eliminate transformationTransition phase by adhering to standards Continuous Improvement more like release management Transformation Steady State Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 ITO Providers Costs ITO Providers Revenues Confidential
    7. 7. Service industrialization offers promise Today Next wave • Standardized service offerings • Sophisticated segmentation • Standardized tools • Vertical expertise in design • Standardized SLAs • Mass configurable service • Leverage of costs • Economies of experience and scale • Lower labor costs • Flattening of support levels • “Product out” • “Market in” Confidential
    8. 8. You will decide the timing for the nextwave of service industrialization Many ITO providers are still here in operations Level of account-specific customization Industrialization creates configurations model Provider landscape is generally about here in strategy Mass configured services Industrialization = Standardization model Standard service Time Confidential
    9. 9. Gartner Magic Quadrant Gartner’s Data Center Outsourcing & Infrastructure Utility Services Magic Quadrant, North America 2012 Confidential
    10. 10. “It used to be that when you went to a customer, you hadto do everything to their standards and specifications.Customers [are now] less concerned with how services getdelivered. And that fundamentally shifts the model.As x86 has become the dominant computeplatform, services can start looking more like the machinethat we have in the support business. Not identical, butmore like.”All things D, September 2012 Confidential
    11. 11. Keys to unlocking IT efficiency Standardize Simplify Automate Cloud Workloads, infra Variance & structure, Tasks Full User Minimize overlap Consolidate facilities Streamline & steps devices & tools mobility workloads Compute, Provisioning, Uniformity & storage,Maximize consistency Virtualize network & Enable management & instrumentation Manage By policy devices Managing hardware Delivering IT Services Confidential
    12. 12. Dell industrialized ITO solutionsConfigurable services from Dell’s industry leading ITO capabilities • Standard ITIL service catalog • Leveraged delivery, workflow automation Server Storage Network Cloud • Global scale, options for best shore • Flexible utility infrastructure to scale with changing needs • Fast, easy transitions Field Apps Desktop Service desk services Monitoring, remediation, management & hosting Shift IT focus to business growth & transformation, leaving day-to-day IT Ready to enable your transformation operations to Dell Confidential
    13. 13. Labor Turnover and ShortageEducationManaged Server, Backup & NetworkChallenge• Customer is at risk of losing key IT talent because they are overwhelmed with managing the day-to-day• But freeing up scarce resources to improve productivity and focus on more strategic projects required additional headcount unfeasible by their limited IT budgetSolution• Managed services for the entire datacenter including AD management• Offloading the day-to-day to Dell and freeing up key resources to tackle long over-due and more fulfilling strategic projects Confidential
    14. 14. Cloud enablementin financeManaged Services for CloudChallenge• Customer wanted to move non-core IT functions such as infrastructure management and non-core apps management to a 3rd party vendor• Wanted to slowly reduce the footprint of their data center and focus on business growth without worrying about capacity and resource constraintsSolution• Private cloud for Infrastructure-as-a- Service, and Managed Services for Cloud to remotely manage the cloud VMs and applications Confidential
    15. 15. Minimizing lost revenuein retailService deskChallenge• After attempting a home-grown solution, customer needed a reliable, cost- effective service desk solution to minimize revenue lost through point-of-sale downtime and improve service qualitySolution• Service Desk fine tuned to customer’s specific needs, including insight into performance with guidance on ongoing improvement, dedicated toll free number, single POC, phone service levels and more• Enabled customer to grow their store count (and revenue) while improving service quality and business uptime Confidential
    16. 16. Recognized industry leaders8 20 years helping organizations achieve“Outsourcing Excellence” awards mission/business goals in awon since 2004 modern managed IT environment Acquisitions And more…Leaders #1in 2012 Gartner Magic Quadrants forData Center Outsourcing & Infrastructure in customer satisfaction for ITUtility Services, Help Desk and Desktop Confidential Services and Support (TBR)Outsourcing, North America
    17. 17. What is your plan?Let’s get • Where do you want to standardize versus specialize?started • What is required impact? Engage with experts • Solution pods at Expo – standards are everywhere! • Or visit www.Dell.com Give us your feedback • Is Dell standardizing in the right areas to meet your needs? Confidential
    18. 18. Please help Dell meet your needsby filling out the Session Evaluation Surveys On paper Content On the Dell World app style • Forms in room • Turn in on the way out guidelines 1. Select My Schedule Session Evaluation Survey 2. Select session to evaluate 3. Select Surveys 4. Select survey title Or 5. Simply complete the survey Confidential
    19. 19. Confidential
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