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Growing Your Data Center, Not Your Overhead

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The needs of a large hosting provider demand a dynamic and on-the-fly solution to expand and contract capacity for its clients. Learn how MacQuarie Telecom made an initial investment in BMC BladeLogic server automation to rapidly expand its ISP and hosting business, while still maintaining the existing support headcount. Managed across a heterogeneous environment, MacQuarie credits BladeLogic for its rapid provisioning and near perfect service levels.

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Growing Your Data Center, Not Your Overhead

  1. 1. © Copyright 3/13/2015 BMC Software, Inc1 Growing Your Data Center, Not Your Overhead Automation Self Service Business Benefits
  2. 2. © Copyright 3/13/2015 BMC Software, Inc2 Dean Forster Growing your Data Center, not your Overhead
  3. 3. © Copyright 3/13/2015 BMC Software, Inc3 Dean Forster Technical Director and OSS Manager | Macquarie Hosting Australian Business Telecommunications Service Provider Hosting focus, with Telco background (Voice, Data, Mobile, Hosting, Co-Location) for Corporate and Government 26 Data Points of Presence in AUS/NZ with 3 Data Centers (BMC Customer since 2001 with Remedy, and 2011 with Automation)
  4. 4. © Copyright 3/13/2015 BMC Software, Inc4 Life as a small company…. SKILL Experience knowledge SpeedGURU Supports first 3 customers Build Run Your ‘one guru’, does all the work
  5. 5. © Copyright 3/13/2015 BMC Software, Inc5 Life as a small company…. SKILL Experience knowledge Speed GURU Supports first 10 customers/users Build Run SKILL Experience know Speed NOVICE More customers = hire new people
  6. 6. © Copyright 3/13/2015 BMC Software, Inc6 Life as a large company…… SKILL Experie nce know Speed4 Novices 40 Customers/users SKILL Experie nce Though t Speed SKILL Experie nce know Speed SKILL Experie nce know Speed 10:1 Ratio Even more customers, more people, a scale
  7. 7. © Copyright 3/13/2015 BMC Software, Inc7 Using a scale enabler SKILL Experie nce Though t Speed 4 Novices 60 SKILL Experie nce Though t Speed SKILL Experie nce Though t Speed SKILL Experie nce Though t Speed 15:1 Ratio 100:1 Ratio 400 500:1 Ratio 2000 Using a Scale Enabler, to reduce effort/overhead 10:1 Ratio
  8. 8. © Copyright 3/13/2015 BMC Software, Inc8 Why is the right scale important Sales Effectiveness Operations Effectiveness Delivery Effectiveness Service Effectiveness Good Scale Better Scale Less ProfitPoor Scale Less Customer Satisfaction Tickets per Operator Builds per Engineer Customers per Rep Deals per BDM Tasks per person Too many people Too many tasks 15:1 4:1 9:1 3:1 Scale Various measures in the business P o o r G o o d B e t t e r P o o r G o o d B e t t e r
  9. 9. © Copyright 3/13/2015 BMC Software, Inc9 Scale enablers Standardization Managed ITIL BPE Documented Non-custom Repeatable Sharing Quality KMS Teams Specialist Communication Scripts Tools Orchestration Online Integrated End to end Process Knowledge Structure Automation Self-Service Technology Accelerators
  10. 10. © Copyright 3/13/2015 BMC Software, Inc10 Using scale enablers at Macquarie Telecom: •ITIL focus with standard products •Dedicate teams/re-structure •Process improvement and management Business structure •Reduce customer execution time from 56 days to 2 hours •Online contract and commercial agreements •Interaction via an online portal Customer self-service •Remove all human effort where possible •Improve operations efficiency •Offer unique value •Platform for continual improvement Automation Executed over 6+ years with minor gains. 80% of ‘change’ business is now online. Immediate 20% efficiency improvement
  11. 11. © Copyright 3/13/2015 BMC Software, Inc11 The automated business
  12. 12. © Copyright 3/13/2015 BMC Software, Inc12 Atrium Orchestrator: Robot Other Business Systems Front End Portal - Service portal - Online pricing Assets/ Services CMDB Internal Portal - Internal changes - Service Request Management Test/Dev Other Management Systems Reporting BMC Atrium Orchestrator Billing CRM Tickets Orders Alarming (SMARTS) Perf Mgmt Config Mgmt BSA (Server) BNA (Network) Storage VMWare Duplicate assets and systems Spotfire SQL SQL Structure Process Standards Knowledge
  13. 13. © Copyright 3/13/2015 BMC Software, Inc13 How much automation? What scripts can do What puppet/chef can do What automation can do Server List Patch Servers Server List Patch Servers Report Redo Server List Patch Servers Test ReportMissing Patches Auth Change Mgmt AlertRetry Change Mgmt fails fails fails Server O/S Patching Example 3000 servers per month Informed
  14. 14. © Copyright 3/13/2015 BMC Software, Inc14 Examples of Automation Operational: - First Time Fix/Ticket enrichment - Process triggering/Disaster Recovery - O/S patching Initial Focus Service Build: - Build workflows (VM/Network/SAN/Firewall/AV/Backup) - Order linkages - Automated test/validate - From click to bill automation Largest Scale Enabler Information Extraction: - Service inventory updating - Application inventory - Data correlationCustomer Value and Innovation Solution Builds: - Parallel processing - Solution end-to-end Future Focus
  15. 15. © Copyright 3/13/2015 BMC Software, Inc15 Business Results: Automation Scale Enablers 15% Efficiency improvement 5% Revenue Improvement 20% Efficiency improvement 15% Efficiency improvement 15% Revenue Improvement 20% cSAT improvement Internal Automation External Automation Customer Automation
  16. 16. © Copyright 3/13/2015 BMC Software, Inc16 Help the customer help themselves
  17. 17. © Copyright 3/13/2015 BMC Software, Inc17 Online Ordering/Self-Service 60+ tasks on offer Automated and manual order processing
  18. 18. © Copyright 3/13/2015 BMC Software, Inc18 Extend the buying cycle…. Where typical Online Ordering works You have this It performs X well, with Y Capacity I would like to buy? Build Test and handover You now have this It performs X well, with Y Capacity Needs identify Needs fulfilled $ Alert AutomatedeCommerceReportAutomated Automated Automated Report
  19. 19. © Copyright 3/13/2015 BMC Software, Inc19 Customer usage Increased revenue Reduced errors Efficiency improvement Business Results: Self-Service Automation Scale Enabler 80% Customer Adoption 1/3 Less Order Issues 20+ Days billing earlier 10% ‘Small Order’ Revenue Increase 20% Staff Reduction
  20. 20. © Copyright 3/13/2015 BMC Software, Inc20 It all went ok, didn’t it?? Learnings
  21. 21. © Copyright 3/13/2015 BMC Software, Inc21 Measures of Success… Business target reached We now have it? Lower staff numbers Revenue increase? Customer satisfaction? Engagement Happy staff S.M.A.R.T Simple! Focus on one obvious business problem with an eye on results.
  22. 22. © Copyright 3/13/2015 BMC Software, Inc22 Other Business Systems People - Support - Developers Assets CMDB Users/Customers Other Management Systems Reporting Automation change overlay… Automation Systems Overlay • Limit Change • Limit Risk • Costs more/short term • Improve acceptance
  23. 23. © Copyright 3/13/2015 BMC Software, Inc23 Limit Business Change… Tried and true
  24. 24. © Copyright 3/13/2015 BMC Software, Inc24 Limit Business Change… Tried and true New/quicker/ parallel
  25. 25. © Copyright 3/13/2015 BMC Software, Inc25 Limit Business Change… Tried and true New/quicker/ parallel Change executed Business change by stealth
  26. 26. © Copyright 3/13/2015 BMC Software, Inc26 New costs/overhead: Maintain what has been delivered. Support Continuous improvement Support growth and expansion. Pays the bills Builds a profile, enables innovation Equiv 1 developer (20 tickets pm) Equiv 2 developers (Annual savings target) Planned ‘spare’ effort. innovation projects Macquarie Experience Discretionary projects Plan for support overhead…
  27. 27. © Copyright 3/13/2015 BMC Software, Inc27 Key Takeaways • Scale Enablers, grow your Data Center, without growing your overheads – Automation Technology: • Long chain automation with orchestration • Focus on B2C first (greatest business gains helping customers) – Self Service Overlay: • Online/self-help/ordering • Extend buying cycle • Focus on one obvious business problem to solve – Easy to understand business benefits: Growing your Data Center, not your overhead
  28. 28. © Copyright 3/13/2015 BMC Software, Inc28 Thank You. blog: www.thebannedtechnologist.com www.macquarietelecom.com

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