The Impact of Cloud Technologies on ITSM
 

The Impact of Cloud Technologies on ITSM

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Every market forecast clearly shows that user adoption of Cloud Computing alternatives is accelerating and fueling the rapid growth of the Cloud Computing industry. THINKstrategies and FrontRange ...

Every market forecast clearly shows that user adoption of Cloud Computing alternatives is accelerating and fueling the rapid growth of the Cloud Computing industry. THINKstrategies and FrontRange conducted a survey to better understand how this trend is impacting the IT Service Management (ITSM) needs of organizations. This report provides an overview of our findings and the implications of this new data collected from 341 participants worldwide.

Watch the full webinar on the survey results: https://www.brighttalk.com/webcast/8533/67401

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    The Impact of Cloud Technologies on ITSM The Impact of Cloud Technologies on ITSM Document Transcript

    • The Impact of CloudTechnologies on ITService Managementsubtitle
    • Table of Contents1. Introduction............................................................................................................32. Key Findings ..........................................................................................................53. Survey Methedology & Who Participated in Our Survey ....................................64. Survey Responses.................................................................................................75. Summary and Conclusions.................................................................................116. About the Authors ...............................................................................................12
    • 1. IntroductionEvery market forecast clearly shows that user adoption of Cloud Computing alternatives isaccelerating and fueling the rapid growth of the Cloud Computing industry.THINKstrategies and FrontRange have teamed up to conduct a survey to better understand howthis trend is impacting the IT Service Management (ITSM) needs of organizations. Three hundredforty-one (341) people worldwide participated in our survey that was conducted in December 2012through January 2013. This report provides an overview of our findings and the implications of thisnew data.The Cloud discussion has provoked a lot of debate from industry pundits and tech publications,regarding the relative merits of Cloud based solutions; however what their arguments have failed toincorporate into the discussion is how organizations are leveraging Cloud based technologies andadding new Cloud solutions to their existing set of premise based or installed systems. They are inessence creating ‘hybrid’ environments to support their business requirements and trying todetermine the best way to manage the mix of legacy systems and Cloud services to meet theircorporate objectives. The adoption of ‘hybrid’ appears to be seen by many organizations as afeasible and cost-effective method to bridging the gap between Cloud and premise based solutionswithout having to compromise on business objectives.As a result of converging newer Cloud technologies with older legacy systems, there are a numberof reasons why organizations are finding it difficult to manage these hybrid environments. To startmost mid- and large-scale organizations have never gained full control over their traditional, on-premise IT operations and business applications. The truth is that for many IT groups, legacy ITSMsolutions have been far too complicated and costly to successfully deploy.The way Cloud services are deployed and Cloud service providers support their offeringscompounds the IT department’s challenges. The ‘consumerization of IT’ is enabling corporatebusiness units and end-users to acquire Software-as-a-Service (SaaS), Platform-as-a-Service andeven Infrastructure-as-a-Service (IaaS) alternatives without IT authorization or assistance. This canput additional strain on existing operations and create added support requirements, adding anotherlayer of complexity on top of the existing data center chaos.As a result, our research has found a growing number of IT organizations are seeking a newgeneration of IT Service management tools to help them monitor and manage their IT services fromwithin a hybrid environment of on-premise systems and Cloud services.Ideally, they would like IT Service Management tools which give them real-time data and alerts, andprovides powerful analytics to anticipate potential problems before they disrupt their operations.
    • Fortunately, there is a new generation of Cloud-based ITSM solutions, like those provided byFrontRange, which help address these issues. These new solutions are easier to deploy and lesscostly to operate. They can be configured to fit into a variety of IT environments and quicklygenerate valuable information to enable IT organizations to better manage their operations.
    • 2. Key Findings Over half of the respondents categorized their organizations as being at the first level ofITSM maturity, and only a little more than a third of the respondents (35.5%) are at thesecond level of maturity. A significant proportion of the respondents are committed to make investments in theirITSM systems and skills in 2013 to raise their maturity levels. Nearly three quarters of the survey respondents (72.7%) are currently relying on on-premise ITSM solutions to address their needs. Only 13.5% of the survey respondents reported they are very satisfied with the way theircurrent ITSM solution is delivered, and almost an equal proportion are dissatisfied with theircurrent ITSM delivery method. One-third of the respondents reported the primary reason they change their ITSM solutionsis to better align IT with the business. Over a quarter of the respondents also would like tochange solutions to improve the ease of use and customization of their current ITSMsolutions. Reliability, Security and alignment of IT with the business are the top three attributes ofinterest to the survey respondents when they consider each ITSM delivery model. The IT manager is primarily responsible for the selection of the ITSM solution, and thequality of the ITSM supplier’s support and their ability to reduce the user’s total cost ofownership (TCO) are the most important criteria for selection.
    • 3. Survey Methodology & WhoParticipated in Our SurveyWe conducted our survey via email using SurveyMonkeyTMduring December 2012 and January2013. We were pleased to have 341 people participate from organizations of all sizes across avariety of industries worldwide.Here are the demographics of the survey participants.Survey Respondent TitlesTop Industries RepresentedGeographic RepresentationSize of Organization (by employees)
    • 4. Survey ResponsesCurrent Level of ITSM MaturityOne of the primary challenges facing organizations of all sizes is how to improve their ITSMmaturity level in the wake of today’s rapidly evolving Cloud marketplace.Over half of the respondents categorized their organizations as being at the first level of ITSMmaturity in which they are currently using a variety of IT help desk tools such as incident, problem,inventory and knowledge management and reporting.Only a little more than a third of the respondents (35.5%) are at the second level of maturity andtaking advantage of change management, self-service, service request and SLA management.And, less than 10% of the survey respondents are at the highest level of maturity and using servicevirtualization, release governance, social it management, analytics &reporting, and mobilitymanagement tools.The following figure shows the current maturity levels of the survey respondents as well asprojected level of ITSM maturity by the end of 2013Projected Level of ITSM Maturity by End of 2013As the figure below shows, a significant percentage of the respondents to our survey are committedto make investments in their ITSM systems and skills to raise their maturity levels during thecoming year.
    • Current ITSM Solution Deployment MethodNot surprisingly, nearly three quarters of the survey respondents (72.7%) are currently relying onon-premise ITSM solutions to address their needs.The primary reasons for the respondents’ choice of their current ITSM solutions are alignment of ITwith the business and budgetary considerations.
    • Current ITSM Solutions Fail to Fully Satisfy IT Organizations NeedsOnly 13.5% of the survey respondents reported they are very satisfied with the way their currentITSM solution is delivered, and almost an equal percentage are dissatisfied with their current ITSMdelivery method.Although 42.5% of the respondents say they are satisfied with their current solution deliverymethod, almost as many would appear to be receptive to another alternative.Aging ITSM Solutions Ready for ReplacementOver half of the currently installed ITSM solutions are 5+ years old.
    • The Reasons Organizations ChangeITSM SolutionsAccording to our survey respondents, theprimary reason they change their ITSMsolutions is to better align IT and the business.Over a quarter of the respondents also changeto improve the ease of use and customizationof their ITSM solutions.ITSM Selection CriteriaThe quality of the ITSM supplier’s supportand their ability to reduce the user’s totalcost of ownership (TCO) are the mostimportant criteria for selection.Top 3 Attributes of Interest in Each ITSM Delivery ModelReliability, Security and alignment of IT to the business are the top 3 attributes of interest to thesurveyor respondents when they consider each ITSM delivery model.
    • Key Decision-Makers Involved inSelecting a New ITSM PlatformThe IT manager is primarilyresponsible for selecting a new ITSMplatform.5. Summary and ConclusionsOur survey results clearly show that many organizations are trying to improve their ITSMcapabilities and maturity levels, and traditional, on-premise ITSM solutions are not fully meetingusers’ needs.Today’s rapidly escalating demands associated with the widening adoption of Cloud services aredriving a significant number of organizations to investigate ITSM delivery alternatives. As ITmanagers, CIOs and service delivery managers explore these alternatives, they are primarilyconcerned about the reliability and security of their ITSM solutions, and how their ITSM solutionsenable them to better align with the business units within their organizations. The quality of theITSM supplier’s support and their ability to reduce the user’s total cost of ownership (TCO) are alsocritical considerations in their selection process.Based on these findings, it is becoming increasingly apparent that organizations need a new breedof ITSM solutions that can address their hybrid Cloud operating environment with a mix oftraditional, on-premise systems and widening array of Cloud services.Satisfying this hybrid cloud management need entails a combination of new management featuresand new methods of delivering this functionality so IT professionals can utilize them more easilyand effectively.
    • 6. About the AuthorsAbout FrontRangeFrontRange is the global leader in Hybrid IT Service Management (ITSM) solutions for enterprisesof all sizes. FrontRange is the only ITSM provider in the world that delivers Service Managementsoftware with fully integrated Voice Automation and Client Management capabilities on-premise andin the cloud. HEAT manages millions of service interactions a day for more than 15,000 leadingorganizations around the world. HEAT enables customers to deliver world-class service whilemaximizing operational efficiencies with reduced cost and complexity. FrontRange is headquarteredin Milpitas, Calif. and can be found at www.frontrange.com.About THINKstrategies, Inc.THINKstrategies is the only independent strategic consulting firm which focuses entirely on helpingenterprise decision-makers, solution providers and investors capitalize on the unprecedentedbusiness opportunities created by the shift of the technology industry from a product-centric to aservices-driven orientation, including Cloud Computing, Software-as-a-Service (SaaS) andManaged Services. THINKstrategies also founded and administers the Cloud ComputingShowplace (www.cloudshowplace.com), the largest, vendor-independent, online directory and bestpractices resource center in the industry. For more information, visit www.thinkstrategies.com, orcontact info@thinkstrategies.com.