Good morning, and welcome to VMWorld. I hope you are enjoying yourselves so far, and thank you for joining me today.I am John Michelsen, CTO, CA Technologies, and I’d like to spend the next 30 minutes sharing a perspective on the choices organizations make to help themselves, and their customers “come in first place.” (note: tie-in referencing the video they just watched on the previous slide)” In addition to being a CTO, I’m also a motorcycle enthusiast. As I look out across today’s shifting IT landscape, I see a lot of parallels between motorcycles, IT, and IT management. Has anyone in the audience read “Zen and the art of Motorcycle Maintenance?”That book can be a jumping off point, and a touchstone for us to revisit throughout the presentation. It demonstrates that for some, motorcycle maintenance may be dull and tedious drudgery, (a chore) while for others it is an enjoyable and pleasurable pastime (a "core” activity); it all depends on attitude. As we in IT continue our race towards commoditization in search of economies of scale, we are all learning to make better portfolio decisions about what is “core” to our business success, and what is “chore.”Now I don’t think anyone will leave the theatre today thinking that IT Management is an enjoyable and pleasurable pastime (and for those that it is…more power to you), but I do hope to investigate with you how those two attitudes manifest themselves in the choices people make about where they source IT services from, and why.First, let me first introduce you to a powerful concept an old racing friend of mine taught me about 100%. (next slide)
THE AGE OF INNOVATIONWe are living in an Age of Innovation – innovation driven by Technology. Cloud computing can deliver amazing amounts of computing power at fractions of the cost of what it would have been a few years ago. The proliferation of mobile devices means you can interact with your customers in new ways and around the clock. Social media is providing an opportunity to listen to your customers as they interact with your services, while also crowd-sourcing ideas. Big data and advanced analytics are enabling more customized services and marketing approaches. And with everything from refrigerators to railroad tracks being IP-enabled, we are finding new ways to revolutionize the way we manage our personal lives and our business lives every day.These capabilities are being unleashed at breakthrough speeds that constantly raise expectations from business executives which transforms IT from moving out of only maintaining technology and keeping the systems are up & running. Today, IT is all about delivering innovation to the business.This opportunity to leverage the power of technology to transform your business, your market and the way you interact with your customers and services is increasingly becoming recognized. In fact, a recent survey by IDC found that 67% of CIOs believe their role is evolving into Chief Innovation Officer.For IT to make this transformation and truly help drive business innovation and growth, innovation needs to become a pervasive mindset. Not surprisingly, then, “Fostering an innovation culture” was one of the top 3 priorities identified by CIOs as a focus for 2012. You can even see the evidence in where companies are focusing their IT spending as well. At a time when budgets are tight and the rising complexity of IT means that existing systems are more expensive than ever to maintain, the amount of money being spent on new projects to drive innovation is growing. IDC expects new project budget to grow from 23% to 28% of budget over the next 3 years.
CHALLENGES MAKING THIS TRANSFORMATIONAnd yet…making this transformative leap, as we all know, is easier said than done. We all want to lead our markets; we all want to become more strategic, we all want to create that next great application, product or service – the next iPad, the next Angry Birds, the next Facebook. From my conversations with customers, I believe there are 3 fundamental challenges that are the primary obstacles getting in the way of IT’s ability to drive business innovation: -Innovation is being delivered to market too slowly Customers talk about how skills and resources are misaligned and siloed and this inhibits innovation. Traditional service delivery hampers the ability to improve time to value. The way that ideas work through the organization – how you choose what to develop – isn’t conducive to improving cycle time. -Our IT infrastructures are too expensive to sustain and maintain Most IT executives say that IT complexity continues to increase, and yet productivity is shrinking, systems are fragile and we are spending more and more time trying to maintain them. Somewhere between 70 and 80% of IT budgets are going towards ongoing maintenance rather than new project work and that makes it difficult to make this transformation.-Security risks are increasing exponentially IT is in a position where it feels it needs to lock down systems and maintain control and compliance. But business users are looking for openness and they want to bring new devices and use new online applications and more. These security risks are creating new challenges and inhibiting innovation.
STRATEGIES FOR DRIVING BUSINESS INNOVATIONHow can we overcome these barriers? At CA Technologies, we believe there are 3 essential strategies that are necessary to drive business innovation. The first strategy is to accelerate your pace of innovation. You need to be able to leverage new technologies, such as mobile and cloud, so you can meet the demand for new services. You need to know that you’re making the right investment decisions and you need to be able to shrink your development cycle times so you can bring innovative services to market much more quickly. To create sustainable growth, competitive differentiation and market relevance, you have to transform your infrastructure to free up capacity for innovation…by improving efficiency, managing complexity, and reducing costs. We have to start thinking about moving from an infrastructure-component focused organization to one focused on end-to-end service management and user experience; from manual to automated, slow to fast, fragile to agile.Now... as we accelerate and transform our businesses services, the question of security . . . of managing identities and managing access . . . becomes more important than ever. This brings us to our third, and arguably the most critical strategy to secure your online business…Secure by reducing risk, protecting against improper access and fraud, and simplifying compliance. You must ensure that critical data and identities are protected in order to secure online business and extend customer reach—even in the face of an explosion in end-point devices and new ways of accessing information via public clouds. The combination of these three strategies is an approach we call Business Service Innovation. It’s how we are helping our customers transition from managing and maintaining IT systems to delivering new, innovative services. Each of these strategies has their own challenges. But you have a partner in us to take these challenges head on. We’re investing in these key areas and are committed to your success.So let me talk about those 3 areas in a bit more detail.
Now, this friend of mine used to race in the SCCA (sports car club of america). One day the subject of tires came up, and he told me something that makes a ton of sense but I hadn’t ever thought of it that way.“When you’re on the track, you have to be aware of your tires’ limits.” he told me. “They can only give you 100% of their available grip – you can choose to use it for steering, or acceleration/de-acceleration. You will never get 101% from the tire, so choose wisely.”I think allIT organizations are like racing tires. They can give you 100% (more in some cases ) but they need to be armed with the right tools to minimize the “keeping the lights on” work so they can focus on advancing the business. To create sustainable growth, competitive differentiation and market relevance, you have to transform IT to free up capacity for innovation…by improving efficiency, managing complexity, and reducing costs. We have to focus on end-to-end service management and user experience; from manual to automated, slow to fast, fragile to agile.Letssee if we can’t make some comparisons between core/chore for motorcycles, and IT Management.
Now,I’m a recreational motorcyclist. Absolutely love it. My job isn’t to race motorcycles, my job is to focus on building great products that help our customers to do great things with their IT infrastructure.Sure, I love to go fast. And I trust that the mechanic who looks after my bike is doing what is needed to properly maintain it. I don’t need it to go faster than every other bike on the road (it does go super fast) – I just want it to run safely, and perform at a level consistent with it’s design specifications. Don’t get me wrong, I can handle things like checking tire pressure, filling it with gas, and replacing the occasional light-bulb – those require minimal time, but are essential to ensuring I operate safely. But I don’t have the expertise – or the time, or tools necessary – to change the oil, adjust the timing belt, or replace a clutch.For me, motorcycle maintenance is a chore that I am luckily able to outsource to a reputable dealer. I would rather spend my time riding my motorcycle than fixing it.
For a racing team, however, keeping a bike highly tuned is the difference between winning and losing.It’s core to their existence.Every motorcycle on the track is limited to the exactly the same engine size (MotoGP regulations for 2012 limit displacement to 1000ccs), so “buying more horsepower” is not a legal way to get ahead. There are also limitations on the bore/stroke for the engines, and even the types of fuel which can be used.So how do racing teams differentiate, and dominate?Certainly the riders’ skill and endurance plays a big hand in their overall success. However, behind every rider is a team of experts who are able to take a standard set of materials (1000 cc, 81mm maximum bore, 153kg gross weight) and tease out the winning combination.How do they do this? By obsessing over the tuning and maintenance of their racing machines. Expensive and extremely sensitive specialty tools are used by teams of professionals with domain expertise and focus. They spend hours before a race optimizing and tuning fuel injection, addressing minor timing issues, and generally tweaking the bike to get it “dialed in” for a rider. Their instruments are so highly calibrated, that they even take into account ambient temperature and elevation to determine the exact right configuration required to maximize performance and win the day.
Regardless of how we maintain our motorcycles, my biker friends and I all agree that “going fast” and “being safe” matters.For CIOs, also, “going fast” and “being safe” is hugely important.For many CIOs, the strategy is to own and vertically optimize an entire IT stack by running it in-house—along with in-house and strong IT management discipline. In these environments, hard-won performance improvements at scale using comprehensive IT Management helps them drive business.For others, the strategy is to remain as lightweight, agile and elastic as possible – consuming and orchestrating services, including IT Management, to minimize hardware, implementation, training, ongoing management, hosting, power and other costs.So let’s dive deeper into these two choices, and look at some of the challenges each type is facing...
In our experience, there are many organizations out there focused on ease of use, fast deployment.. they want an integrated suite of capabilities available via an easy to use and unified UI that is simple to adopt. And they want something designed so that busy people who work multiple jobs can deploy it quickly – either from the cloud, or on prem. These companies make up what we refer to as an “Essential IT Management” organization. IT Management Essentials needs ….solutionOur teams wear many hats …Streamlined user navigationDon’t have established best practices …Prescriptive contentNeed ultra-fast deployment options …Easy to acquire & adoptDon’t want to handle administration …Minimal management overhead
Just as frequently we see a set of requirements around scaling to massive enterprise volume. That’s important, because when we talk about massive enterprise volume, we mean millions of events happening per second on thousands and thousands of devices all across your network.And they are looking for deep functionality to support the specific requirements of teams of dedicated people who have deep domain expertise in network management, infrastructure management, application performance management, server management, and so on. These companies make up what we refer to as an “Comprehensive IT Management” organization.IT Management Comprehensiveneeds ….solutionTech domain experts need detailed info …Purpose built for domain expertsHave unique requirements …Tailorable, Integrated and modularMust scale to largest IT organization ...Sophisticated IT performance analytics at scale
Specific types of IT organizations face specific challenges, sure. But are there any commonalities? Any common trends everyone is worrying about? Well, according to our research, you and your peers are being driven to adopt and manage an explosive range of technologies and services.You are being asked to manage an expanding volumes of data, and to adopt the agility and efficiency of cloud computingYour business needs your help to expand into new markets, with new approaches to mobility for your workforce and their devicesPlus, you must respond to the growth of social media among your staff and customers, and the consumerization of IT as it brings the adoption of tablets, smartphones, and consumer cloud, and moreThis convergence of megatrends and macro-level forces – big data, innovation, cloud, mobility, social media, consumerization – are creating an unavoidable need for you to do new things in new ways
However, there is a catch. You already have a substantial investment in existing technologies, equipment, skills, processes, and capabilities that are delivering significant value to your organization. As much as everyone is clamoring for new systems, new devices, new technologies, new skills, and new services, you cannot simply ignore your investment in these existing systems. Meanwhile, this maintenance of ‘lights-on’ operations is draining nearly two-thirds of your time, your resources, and your budget, and holding you back from delivering all the new innovative business services
This is unsustainable – something has to give. Which is why independent research shows that your peers in IT are reassessing their approach to delivering technology services.This independent data from Forrester shows that the top priorities among your peers are increasing efficiency, streamlining process, increasing capacity for innovation, and reducing costs – while still maintaining and even improving the service you deliver to their customers.
Let’s talk about a few companies that are solving these problems today, and how CA is helping them do soCA Technologies helps our customers solve these issues by:Providing end-to-end visibility into applications and transactions. We provide top-to-bottom control over the entire IT infrastructure to achieve a greater understanding of how IT-delivered services impact the business. Providing a platform for managing IT transformation, as well as a holistic view of the entire service portfolio in order to support better decision making. Providing an industrial strength automation platform that scales the enterprise across diverse systems and departments to transform disparate manual tasks into end-to-end automated processes that can be centrally deployed and managed. And we do this across all environments (mainframe to physical to virtual to cloud) and also while enabling you to gain control of and reduce your carbon footprint and impact on the environment.
http://www.nimsoft.com/content/dam/nimsoft/documents/un-secure/case-studies/nimsoft-case-study-wikimedia.pdfWikimedia Foundation needed to provide 24/7 availability across globally accessible user-built projects, while providing performance and availability metrics to its user communityCT Woo, the CTO at Wikimedia, told us they used to build and maintain their own set of monitors to ensure the 90,000 editors and 470M visitors were receiving good response times, but maintaining that IT Management infrastructure was a distraction… a chore.So, Wikimedia deployed our self-service “Nimsoft Cloud Monitor” to gather availability data from multiple services across a network of over 60 stations in more than 30 countries, and display the information to the public on a free status page.Cloud Monitor enabled Wikipedia to minimize gaps in access to essential information, so the information we gather and disseminate can continue to be used worldwide to help people expand and share their knowledge and conduct critical research.”
Whether Core or Chore, business drivers stay the same and critical that you transform your infrastructure to free up resources for innovation.Of course, CA has a wide range of solutions to help companies achieve this with our simple and powerful Nimsoft IT Management as a Service offerings, through to our industry leading CA Infrastructure Management suite.We have helped thousands of companies – companies of all sizes – to reduce their “KTLO” costs and shift their focus to strategic IT services that provide long-term competitive advantage for the business. Come by our booth, #1935, talk to our experts to see which solution might be best for you, and then register for chance to win a Ducati Monster 696 that we’ll be giving away after the show!BACKUP POINTSCA Nimsoft Monitorfrees up time by eliminating overheard of IT Management system management while offering “just enough” IT Management.CA Infrastructure Management frees up time by helping dedicated teams analyze the largest and most complex IT environments.Bring ideas to market quickerConsistently deliver high quality services and support the best possible customer experience.Streamline IT service delivery with end-to-end automation of workflows and processes across teams and technologiesBe able to scale dynamically to support new business services and accommodate the increasing pace of innovation.Effectively manage the entire service portfolio (internal and external) from strategy to execution, to continuously improve service.
The Zen and Art of IT Management (VM World Keynote 2012)
The age of innovation CLOUD SOCIAL BIG DATA MOBILE INTERNET COMPUTING NETWORK ANALYTICS DEVICE OF THINGS 88% new 30 billion 2-7 Zetabytes Mobile web 15 billion commercial pieces of 90% unstructured bigger than networked enterprise apps content shared desktop internet devices by 2015 will move to on Facebook by 2015 the cloud every month 67% of CIOs see their role evolving to Chief Innovation Officer11 IDC, “Top 10 Predictions, Worldwide CIO Agenda 2012 Top 10 Predictions,” IDC #232816, January 2012.
Challenges making this transformation Can’t bring new ideas to market quickly enough Current IT is expensive to sustain and maintain Security risks are increasing dramatically
Strategies for driving business innovation DRIVE INNOVATION FREE UP RESOURCES REDUCE RISK
Racing Tires IT Management Acceleration Steering input “You only have 100% available. Innovation KTLO How do you allocate it?”
b maintenance:chore Consistent performance Outsourced maintenance teams (local garage) Minor investment in No tools time, money, required expertise
t Dedicated Peak maintenance performance teams (pit crew) Majormaintenance:core investment in Specialty tools time, money, required expertise
Profile: Essential IT ManagementToo much work with too few resources “Keeping the Too much work lights on” interferes with the innovation imperativeEfforts to “keep the lights on” for too few interfering withLack of visibility into public/private IT impacts quality of services people? innovation? Constrained by Limited visibility heavy installs, into IT systems or rigid ITIL and operations? processes?
Profile: Comprehensive IT Management Trouble Disjointed view managing of infrastructureperformance at health and enterprise performance? scale? Escalating Technology and process sprawl complexity & preventingservice delivery effective costs? collaboration?
Increasing complexity from more data, services,channels, locations, endpoints, infrastructure What do you think are the most significant drivers for change in the IT department? Rapidly expanding volumes of data 53% Cloud computing 39% Expansion into new territories 36% Increasingly mobile/distributed workforce 35% Use of social media 35% Consumerisation of IT 31% 0% 10% 20% 30% 40% 50% 60% Source: CA Technologies Research, The Future Role of the CIO, Dec 2011, n=685
Too much KTLO “What percent of your IT spending today is allocated to the following? Maintaining Current Systems 37% Delivering New Business Services 63% Source: The Innovation Imperative, CA Technologies Research conducted by IDG, August 2012. Base: Total 800, NA 150; EMEA 300; APAC 275; LA 75
efficiency, streamline process, increase capacity for innovation Top five IT management priorities - Enterprises* - “Which of the following initiatives are likely to be your organization’s top management priorities over the next 12 months?” Improve the efficiency of IT 75%Improve or streamline business process 74% Increase IT capacity/resources to drive 71% business innovation Lower ITs operational costs to free up 67% money for new initiatives Improve our customer management 66% capabilitiesBase: 1,531 IT decision-makers 60% 62% 64% 66% 68% 70% 72% 74% 76%*Percent of respondents indicating this was a high or critical prioritySource: Forrester Research, Inc., “2012 IT Budget Planning Guide For CIOs”, October 27, 2011
Jack Henry & Associates safeguard service quality for 8,700companies Jack Henry & Associates, Inc. processes transactions, automates business processes, and manages mission-critical information for more than 11,200 financial institutions and corporate entities. Challenge Solution Result – Transforming IT To maintain service levels CA Service Assurance Faster problem resolution for 8,700 client orgs and solutions to evaluate 6 million end-users network More cost-effective and To resolve IT performance, capture efficient IT operations performance problems metrics, and identify Improved customer quickly, efficiently root cause of problems service, satisfaction levels
Wikimedia Foundation found an easy, affordable way totrack, optimize and report on the user experience The Wikimedia Foundation operates some of the largest collaboratively edited reference projects in the world, including Wikipedia, a top-ten Internet property. Challenge Solution Result – Transforming IT To better identify and fix CA Infrastructure Improved service levels availability and Management performance issues solutions for broad Reduced downtime, cost To more effectively experience monitoring from 60 locations in 30 Better user experience communicate status to end user community countries Built credibility, goodwill
Learn more about your Enter to win a choices in Ducati 696 Infrastructure Management See a demo, talk to product expertsThank You Booth 1935