BMC Engage 2015: IT Asset Management - An essential pillar for the digital enterprise

1. © Copyright 9/10/2015 BMC Software, Inc1 Jon Hall Lead Product Manager, Remedy Asset Management September 2015 IT Asset Management: An essential pillar for the digital enterprise #Remedy9 @BMC_ITSM

2. © Copyright 9/10/2015 BMC Software, Inc2 Agenda ITAM’s rapid evolution Why effective Digital Service Management needs ITAM How to align ITAM to Digital Services.

3. © Copyright 9/10/2015 BMC Software, Inc3 How is ITAM Evolving

4. © Copyright 9/10/2015 BMC Software, Inc4 Assets” are evolving more rapidly than ever +Virtualisation Virtual machines Network deployable software Capacity-based licensing 2005- 2011 The PC Revolution Physical machines Point installs Install-based licensing 1985- 2005 2015- +The digital enterprise Digital Services Hybrid cloud Containerization Internet of Things 2011- 2014 +Cloud and mass mobility Industrial virtualisation Mass-mobility and BYOD Rapid shift to XaaS Usage-based licensing #Remedy9 @BMC_ITSM

5. © Copyright 9/10/2015 BMC Software, Inc5 SaaS Software Growth

6. © Copyright 9/10/2015 BMC Software, Inc6 0 200 400 600 800 1,000 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Cloud services are sprawling – average services per enterprise 923897 831 738759 626 545 Source: SkyHigh Networks Cloud Adoption and Risk Reports (quarterly)

7. © Copyright 9/10/2015 BMC Software, Inc7 Hybrid Cloud is already here 28% 6% 66% PRIVATE CLOUD PUBLIC CLOUD PHYSICAL SERVERS & NON-CLOUD VMS Even two years ago, 34% of enterprise servers ran in the Cloud “Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations” Forrester, June 2013

8. © Copyright 9/10/2015 BMC Software, Inc8 3,032 3,750 4,880 25,006 0 5,000 10,000 15,000 20,000 25,000 30,000 2013 2014 2015 2020 http://www.gartner.com/newsroom/id/2905717 The rise of the Internet of Things Connected devices (in millions)

9. © Copyright 9/10/2015 BMC Software, Inc9 “ORACLE’S FORKLIFT” • The 30 Forklifts and 15 Temperature Devices in this example require 415 Named User Plus licenses • Projecting Gartner’s prediction (2015- 2020) crudely onto this scenario adds over 200 devices, and +50% to the license cost

10. © Copyright 9/10/2015 BMC Software, Inc10 The Intelligent Forklift “Today’s smart forklift includes diagnostics that allow the equipment to signal when it needs to be serviced, speed controls, anti-slip technology that monitors wheel spin and improves traction, collision detection, fork speed optimization, and more…” Forbes, 16th March 2015

11. © Copyright 9/10/2015 BMC Software, Inc11 Containerization - a new virtual revolution APP APP APP APP APP APP APP APPS APPS APPSAPPS VIRTUAL MACHINES HARDWARE HARDWARE HOST OPERATING SYSTEM HOST OPERATING SYSTEM CONTAINERS OS OS OSOS LIBRARIES LIBRARIES HYPERVISOR DOCKER ENGINE

12. © Copyright 9/10/2015 BMC Software, Inc12 (and what’s in that container?) IBM MQ Advanced for Developers

13. © Copyright 9/10/2015 BMC Software, Inc13 Oracle 11g Enterprise Edition (and what’s in that container?)

14. © Copyright 9/10/2015 BMC Software, Inc14 Today’s IT Asset inventory storeroom… - PCs and Laptops - Smartphones - Tablets - Printers - Consumables Tomorrow’s Digital Asset inventory storeroom… - Smart meters - Standalone sensors - RFID equipment - Smart vehicle components - Wearable devices https://www.flickr.com/photos/mwichary/3301333726

15. © Copyright 9/10/2015 BMC Software, Inc15 Why effective Digital Service Management needs ITAM

16. © Copyright 9/10/2015 BMC Software, Inc16 Optimized Infrastructure Agile Applications Digital Service Management Service Optimization Open ITIL Process & Solution Content Digital Workplace 3600 Customer Engagement Digital Marketplace IoT Scale Automation Consumer Industrial Digital Innovation Requests Engagement Infrastructure Automation Log Analytics Event Monitoring Capacity Management App Perf Monitoring PCMobileSensors & Meters NetworkStorageServer Front OfficeAnalytics Back OfficeJob Scheduling Busines s Process DevOps Hybrid Data Center Endpoint Mgmt

17. © Copyright 9/10/2015 BMC Software, Inc17 IT Assets are fundamental to Digital Services “The digital enterprise runs on diverse technologies, from mainframe to mobile, from hybrid cloud to the Internet of Things. This infrastructure must be open, scalable, stable, agile, cost- effective, and entirely transparent to consumers” BMC White Paper (2015) - Powering Innovation and Growth with Digital Enterprise Management

18. © Copyright 9/10/2015 BMC Software, Inc18 ITSM and ITAM complement each other ITSM can’t fully understand the services it is providing without understanding the assets on which the service depends. ITAM can’t optimise usage, support and spend without understanding what services the assets underpin.

19. © Copyright 9/10/2015 BMC Software, Inc19 “What usually occurs is that IT costs and expenses are collected in a large bucket, which at the end of the fiscal period gets upended on the table” Pink Elephant: “Defining, Modeling & Costing IT Services”

22. © Copyright 9/10/2015 BMC Software, Inc22 Digital Enterprise ITAM needs new (and existing) methods Instantiate new instance in Private Cloud Decommission Desktop-as-a- Service instance and cancel app subscriptions Purchase more file storage for cloud instance Relocate server to new Datacenter Provision and deploy new physical server Retire user’s PC, and reclaim software licenses Add bigger hard drive to physical server Transfer Amazon instance to new Availability Zone MOVE ADD DELETE CHANGE

23. © Copyright 9/10/2015 BMC Software, Inc23 STATIC RAPID SHARED CONSUMPTION INDIVIDUAL OWNERSHIP PUBLIC CLOUD One size doesn’t fit all DEVOPS INSTANCESEND-USER DEVICES SAAS SERVICES PHYSICAL SERVERS VIRTUAL SERVERS IoT COMPONENTS PRIVATE CLOUD PERIODIC DATA DISCOVERY SERVICE CONTEXT PERIODIC DATA DISCOVERY DEVICE CONTEXT ACTIVE DATA COLLECTION SERVICE CONTEXT ACTIVE DATA COLLECTION DEVICE CONTEXT

24. © Copyright 9/10/2015 BMC Software, Inc24 Line of Business, Partners & customers CUSTOMERVIEW CUSTOMER IT, HR, Facilities SERVICE FRONT-END SUPPLIERVIEW + + + NEW ASSETS EXISTING ASSETS + + ++ SUPPLIER PROVIDED ASSETS PRIVATE SUPPLIER ASSETS Embed ITAM into new digital services SERVICE ORG INTERNAL PROVIDER EXTERNAL PROVIDER INTERNAL ITSM PLATFORM EXTERNAL ITSM PLATFORM

25. © Copyright 9/10/2015 BMC Software, Inc25 BMC San Jose Key Takeaways TECHNOLOGY IS RAPIDLY EVOLVING PROACTIVE COMPLIACE & COST OPTIMZATION THE RISE OF THE IT ASSET MANAGER Traditional “discover and reconcile” ITAM is still valid, but it must be combined with new data and methods In As IT shifts from the backroom to the frontline of digital business, the need for proactive compliance and software cost optimization increases Nobody is better placed than the IT Asset Manager to provide holistic and proactive oversight to the CIO