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The ITAM Review Australia Conference 2018
Cloud won’t manage itself –
A strategic opportunity for ITAM?
Kylie Fowler, Principal Consultant
The ITAM Review Australia Conference 2018
Introductions
Kylie Fowler – Independent ITAM Consultant
Helping clients understand how to manage their IT Assets.
Specialising in:
-  ‘Future	Ready’	SAM	and	ITAM	Strategy	Assessments	
-  Develop	and	implement	IT	Asset	Management	strategies	and	frameworks	
-  Audit	Defence	and	Vendor	Negotiations	
-  M&A	advice	and	support	
-  Coach	&	mentor	ITAM	practitioners
The ITAM Review Australia Conference 2018
“I get a sinking feeling…
….it’s	Nick	the	Beard.	
	
Nick	is	some	sort	of	technical	officer	from	CESG…	he	drops	round	
the	Laundry	every	so	often	to	make	sure	all	our	software	is	
licensed	and	we’re	only	running	validated	COTS	software	
purchased	via	approved	suppliers.	Which	is	why,	whenever	we	
get	word	that	he’s	about	to	visit,	I	have	to	run	around	rebooting	
servers	like	crazy	and	loading	the	padded	cell	environments	we	
keep	around	purely	to	placate	CESG	so	they	don’t	blacklist	our	IT	
processes	and	get	our	budget	lopped	off	at	the	knees.	
Despite	that,	Nick	is	basically	OK,	which	is	why	I	get	the	sinking	
feeling;	I	don’t	enjoy	treating	nice	guys	like	they’re	agents	of	satan	
or	Microsoft	salesmen.”	
The	Atrocity	Archives,	Charles	Stross,	©2004
The ITAM Review Australia Conference 2018
ITAM will follow technology…
New	World	
(Mostly	Opex)	
(We	share	‘stuff’	and	it’s	all	connected)	
Networks	
Physical	Servers	
Virtual	Machines	
Databases	&	Applications	
Client	Interface	
Physical	End	Points	
Employees	
(Mostly	
Opex)	
(Capex)	
(Opex)	
(Mostly	
Theirs)	
(Ours)	
It	all	still	needs	to	be	managed
The ITAM Review Australia Conference 2018
What does this shift mean?
•  Huge	complexity	
•  Complex	interactions	between	legacy	and	cloud	
environments	
•  Reduced	flexibility	to	sweat	assets	and	reduce	TCO	
•  Vendor	lock	in	–	moving	is	expensive	and	risky	
Too	many	buzzwords…	
	
…robots,	IoT,	APIs,		
Digital	Transformation
The ITAM Review Australia Conference 2018
The nature of IT spend is changing…
–  Traditionally	the	focus	of	IT	technology	spend	has	been	controlling	
Capital	(CapEx)	spend	
•  Projects	are	tightly	controlled	
–  Business	driven	
–  Strong	financial	business	case	
–  Yr	2+	operational	(Opex)	costs	became	part	of	the	‘IT	budget’	
•  ‘IT	budgets’	are	a	black	box	for	‘the	business’	
–  No	direct	link	between	the	‘IT	budget’	and	individual	business	units	or	the	benefits	they	
receive	
–  IT	organisations	are	under	constant	pressure	to	do	more	with	less	
•  The	shift	to	cloud	services	is	making	the	‘black	box’	bigger!	
2018	
25:75	
Capex:Opex	ratio	trend:	 2014	
30:70	
2022	
?	:	?		
Source:	Gartner	IT	Key	Metrics	Data	2017:	Key	Industry	Meashres:	Cross	Industry	Analysis:	Mulityear	(G00316585)
The ITAM Review Australia Conference 2018
How do we tame the cloud?
The ITAM Review Australia Conference 2018
Have a clear cloud strategy
•  How	does	the	shift	to	cloud	align	to	business	requirements?	
–  What	does	your	business	care	about?	
•  Profitability,	speed	to	market,	product	quality	etc	
–  How	does	the	shift	to	cloud	support	this?	
•  What	will	you	shift	to	cloud?	
–  What	principles	will	you	apply	when	making	the	decision?	
•  How	will	you	manage	cloud?	
–  How	will	you	relate	cloud	spend	back	to	business	need?	
•  Chargeback	/	show	back,	business	pays	directly	etc	
–  How	will	you	maintain	a	coherent	Enterprise	Technology	Framework	that	balances	agility	and	control	
in	complex	hybrid-on-premise-multi-cloud	environments		
–  How	will	you	control	cloud	deployments?	
–  What	about	‘Shadow	IT’	
–  How	do	you	assure	the	risks	associated	with	cloud?	Eg	security,	licensing	etc	
•  What	about	your	exit	strategy?!
The ITAM Review Australia Conference 2018
Introducing the As-a-Service Lifecycle
Decommission	
&	Retire	
• Switch	stuff	off!	
Operate	and	
Manage	
• Manage	down	costs	
Design	&	Build	
• Cost	efficient	solutions	
Contract	
Negotiation	
• Negotiate	the	best	price	
Cost	Optimisation	must	be	built	into	
every	part	of	the	As-a-Service	Lifecycle
The ITAM Review Australia Conference 2018
Contract Negotiation
Decommission	
&	Retire	
Operate	&	
Manage	
Design	&	Build	
Contract	
Negotiation	
Negotiate	the	best	price
The ITAM Review Australia Conference 2018
Who needs to be involved?
The	Business	
•  Who	will	access?	
•  How	many	people	/	transactions	etc	
•  How	will	users	access	the	service?	
•  What	up-time	does	the	business	require?	
•  What	type	of	data	will	be	put	in	the	cloud?	
•  Regulatory	requirements	
•  Exit	plan	
Technology	
•  SLAs	
•  Bandwidth	requirements	
•  Browser	/	device	requirements	
•  Firewall,	identity	management	and	
AD	issues	
•  Deployment	plan	
•  Technical	&	financial	business	case	
•  Software	licensing	
•  Exit	plan	
Information	Security,	
Legal	&	Procurement	
•  Data	residency	
•  Public	vs	private	vs	on-prem	
•  GDPR	concerns	
•  Data	retention	requirements	
•  Escrow	agreements	
•  How	often	can	you	‘true-down’	to	
reduce	costs	
•  Liability	and	indemnification	
•  Exit	plan
The ITAM Review Australia Conference 2018
What else?
Understand your growth plans
•  Negotiate price holds / price holidays to avoid escalating costs for
longer deployments
-  What is the impact on the business case?!
•  Negotiate tiered discounts for higher consumption levels
What happens when business is bad?
•  Ensure you can decrease costs promptly if usage decreases
The ITAM Review Australia Conference 2018
Negotiate with the end in mind
•  Think	about	what	do	you	need	in	the	contract	to	ensure	you	can:	
§  Cancel	the	contract	
§  Termination	periods	
§  Renegotiate	effectively	
§  Negotiate	your	renewal	NOW	to	avoid	big	price	hikes	
§  Limit	for	price	increases	each	year	(eg	RPI	plus	2%)		
§  Migrate	to	another	provider	
§  Termination	periods	
§  T&Cs	relating	to	data	retention	and	export	
§  Manage	supplier	insolvency	
§  Software	code	escrow	
•  Drive	down	the	price	as	far	as	possible	in	your	first	contract	
–  It	will	set	a	benchmark	for	follow-on	deals
The ITAM Review Australia Conference 2018
Exert a light touch over shadow IT
•  What	is	Shadow	IT?	
–  The	business	had	an	idea	and	decided	to	test	it	
out		
•  	Shadow	IT	is	everything	formal	IT	should	be	–	
agile,	flexible	and	responsive	to	business	needs	
–  Put	in	place	a	light	touch	procurement	
framework	that	is	also	agile,	flexible	and	
responsive	to	business	needs
The ITAM Review Australia Conference 2018
Design and Build
Decommission	
&	Retire	
Operate	&	
Manage	
Design	&	Build	
Contract	
Negotiation	
It’s	about	cost	efficient	solutions
The ITAM Review Australia Conference 2018
Align cloud spend and the business
•  The	link	between	cloud	spend	and	the	benefits	received	by	‘the	business’	
must	be	transparent	
•  Ensure	the	relationship	with	the	business,	how	the	service	will	be	funded	
etc	is	‘hard	coded’	into	the	services	at	the	build	stage	
–  Effective	configuration	management	is	critical	for	tracking	each	configuration	
item	and	linking	it	back	to	the	business	services	provided
The ITAM Review Australia Conference 2018
We need to design and build cost effectively
•  Cost	effective	design	is	all	about	
Governance	
§  Projects	
-  Business	cases	should	be	for	3	or	more	years	
-  Yr	2+	funding	is	a	pre-requisite	for	approval	
§  Solutions	Design	
-  Do	a	financial	options	analysis	(!)	to	ensure	the	most	effective	design	is	chosen	
-  Don’t	forget	the	licensing!	
§  Changes	
-  Are	costs	reviewed	and	approved	at	CAB?!
The ITAM Review Australia Conference 2018
The interaction of legacy with cloud has dangers
•  Designs	must	be	risk	
assessed	by	a	licensing	
subject	matter	expert	at	all	
stages	of	the	design	and	
build	process
The ITAM Review Australia Conference 2018
SAP vs Diageo
•  It’s	a	sad,	sad	story….
The ITAM Review Australia Conference 2018
Operate and Manage
Decommission	
&	Retire	
Operate	&	
Manage	
Design	&	Build	
Contract	
Negotiation	
Manage	down	costs
The ITAM Review Australia Conference 2018
In-life cost optimisation is limited
•  IaaS	and	PaaS	in-life	cost	optimisation	relies	on	good	design	
§  Standardised	design	and	provisioning	approaches	to	ensure	control	
§  Taking	advantage	of	cloud	management	features	will	allow	consumption	will	flex	up	and	down	with	business	needs	
…as	long	as	you	got	the	contract	right!	
•  SaaS	relies	on	good	process	
§  Joiners	movers	leavers	
§  Well-managed	AD	
§  Effective	request	fulfilment	and	procurement	processes
The ITAM Review Australia Conference 2018
Don’t get in a tizz over Shadow IT
•  Shadow	IT	is	volatile	by	its	nature	
–  If	the	idea	is	a	success,	the	service	will	grow	and	the	business	will	want	it	
integrated	with	other	IT	services	
–  If	the	idea	didn’t	work,	the	Shadow	IT	will	wither	away	
•  Build	a	well-worn	path	to	allow	Shadow	IT	to	be	integrated	into	
broader	service	management	as	it	becomes	clear	the	idea	was	a	
success	
The	business	had	an	idea	and	decided	to	test	it	out		
	
Remember
!
The ITAM Review Australia Conference 2018
Decommission and retire
Decommission	
&	Retire	
Operation	&	
Management	
Design	&	Build	
Contract	
Negotiation	
Switch	stuff	off!
The ITAM Review Australia Conference 2018
The only way to get a grip….
Switch stuff off!
The ITAM Review Australia Conference 2018
We need to understand ROI
The business needs to make
decisions about what to keep
IT needs to provide it with the
enabling information
Business	
Value	
Costs
The ITAM Review Australia Conference 2018
Who will tame the cloud?
The ITAM Review Australia Conference 2018
ITAM will be that enabler
Cloud	is	an	IT	Asset	–	let’s	bring	it	into	our	existing	
ITAM	Management	System	
We	already:	
–  Translate	technology,	usage	and	complex	contractual	
arrangements	into	$ $ $
–  Implement	governance	processes	to	manage	and	minimise	
commercial	and	contractual	risk	
We	have	a	strategic	imperative	to	
extend	ITAM	into	the	cloud
The ITAM Review Australia Conference 2018
What do we need to do?
Decommission	
&	Retire	
• Business	relationship	
managers	
• Need	data	and	analysis	to	link	
IT	services	to	the	business	–	
are	we	still	getting	value?	
Operate	and	
Manage	
• IT	Operations	
• People,	Tools,	Processes	and	
partners	working	together	
Design	&	Build	
• Architects	
• Designs	need	to	be	assured	–	
are	they	cost-effective?	Can	
they	be	managed?	
Contract	
Negotiation	
• Procurement	
• Need	data	and	analysis	to	
support	negotiations	and	
renewals	
IT	Asset	Managers	
Provide	governance	ensure	cloud	assets	are	managed	effectively	throughout	their	lifecycle
The ITAM Review Australia Conference 2018
What do we need to do?
1.  Stop	looking	backwards	
§  License	compliance	is	important,	but	there	are	new	risks	to	manage	
2.  ITAM	by	design	
§  Build	the	ability	to	optimise	our	assets	into	everything	we	do	
3.  Develop	mature	relationships	with	IT	Finance	
§  Make	sure	we	understand	where	our	costs	are	going	over	the	next	3	–	6	
years	
4.  Develop	mature	relationships	with	the	Business	
§  The	Business	needs	to	be	accountable	for	decisions	about	cost	vs	
value	–	not	IT	
§  IT	needs	to	enable	meaningful	conversations	by	providing	accurate	cost	
data	linked	to	real	technology	services
The ITAM Review Australia Conference 2018
Thank You

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Australia Conference 2018_Cloud won't manage itself - a strategic opportunity for itam

  • 1. The ITAM Review Australia Conference 2018 Cloud won’t manage itself – A strategic opportunity for ITAM? Kylie Fowler, Principal Consultant
  • 2. The ITAM Review Australia Conference 2018 Introductions Kylie Fowler – Independent ITAM Consultant Helping clients understand how to manage their IT Assets. Specialising in: -  ‘Future Ready’ SAM and ITAM Strategy Assessments -  Develop and implement IT Asset Management strategies and frameworks -  Audit Defence and Vendor Negotiations -  M&A advice and support -  Coach & mentor ITAM practitioners
  • 3. The ITAM Review Australia Conference 2018 “I get a sinking feeling… ….it’s Nick the Beard. Nick is some sort of technical officer from CESG… he drops round the Laundry every so often to make sure all our software is licensed and we’re only running validated COTS software purchased via approved suppliers. Which is why, whenever we get word that he’s about to visit, I have to run around rebooting servers like crazy and loading the padded cell environments we keep around purely to placate CESG so they don’t blacklist our IT processes and get our budget lopped off at the knees. Despite that, Nick is basically OK, which is why I get the sinking feeling; I don’t enjoy treating nice guys like they’re agents of satan or Microsoft salesmen.” The Atrocity Archives, Charles Stross, ©2004
  • 4. The ITAM Review Australia Conference 2018 ITAM will follow technology… New World (Mostly Opex) (We share ‘stuff’ and it’s all connected) Networks Physical Servers Virtual Machines Databases & Applications Client Interface Physical End Points Employees (Mostly Opex) (Capex) (Opex) (Mostly Theirs) (Ours) It all still needs to be managed
  • 5. The ITAM Review Australia Conference 2018 What does this shift mean? •  Huge complexity •  Complex interactions between legacy and cloud environments •  Reduced flexibility to sweat assets and reduce TCO •  Vendor lock in – moving is expensive and risky Too many buzzwords… …robots, IoT, APIs, Digital Transformation
  • 6. The ITAM Review Australia Conference 2018 The nature of IT spend is changing… –  Traditionally the focus of IT technology spend has been controlling Capital (CapEx) spend •  Projects are tightly controlled –  Business driven –  Strong financial business case –  Yr 2+ operational (Opex) costs became part of the ‘IT budget’ •  ‘IT budgets’ are a black box for ‘the business’ –  No direct link between the ‘IT budget’ and individual business units or the benefits they receive –  IT organisations are under constant pressure to do more with less •  The shift to cloud services is making the ‘black box’ bigger! 2018 25:75 Capex:Opex ratio trend: 2014 30:70 2022 ? : ? Source: Gartner IT Key Metrics Data 2017: Key Industry Meashres: Cross Industry Analysis: Mulityear (G00316585)
  • 7. The ITAM Review Australia Conference 2018 How do we tame the cloud?
  • 8. The ITAM Review Australia Conference 2018 Have a clear cloud strategy •  How does the shift to cloud align to business requirements? –  What does your business care about? •  Profitability, speed to market, product quality etc –  How does the shift to cloud support this? •  What will you shift to cloud? –  What principles will you apply when making the decision? •  How will you manage cloud? –  How will you relate cloud spend back to business need? •  Chargeback / show back, business pays directly etc –  How will you maintain a coherent Enterprise Technology Framework that balances agility and control in complex hybrid-on-premise-multi-cloud environments –  How will you control cloud deployments? –  What about ‘Shadow IT’ –  How do you assure the risks associated with cloud? Eg security, licensing etc •  What about your exit strategy?!
  • 9. The ITAM Review Australia Conference 2018 Introducing the As-a-Service Lifecycle Decommission & Retire • Switch stuff off! Operate and Manage • Manage down costs Design & Build • Cost efficient solutions Contract Negotiation • Negotiate the best price Cost Optimisation must be built into every part of the As-a-Service Lifecycle
  • 10. The ITAM Review Australia Conference 2018 Contract Negotiation Decommission & Retire Operate & Manage Design & Build Contract Negotiation Negotiate the best price
  • 11. The ITAM Review Australia Conference 2018 Who needs to be involved? The Business •  Who will access? •  How many people / transactions etc •  How will users access the service? •  What up-time does the business require? •  What type of data will be put in the cloud? •  Regulatory requirements •  Exit plan Technology •  SLAs •  Bandwidth requirements •  Browser / device requirements •  Firewall, identity management and AD issues •  Deployment plan •  Technical & financial business case •  Software licensing •  Exit plan Information Security, Legal & Procurement •  Data residency •  Public vs private vs on-prem •  GDPR concerns •  Data retention requirements •  Escrow agreements •  How often can you ‘true-down’ to reduce costs •  Liability and indemnification •  Exit plan
  • 12. The ITAM Review Australia Conference 2018 What else? Understand your growth plans •  Negotiate price holds / price holidays to avoid escalating costs for longer deployments -  What is the impact on the business case?! •  Negotiate tiered discounts for higher consumption levels What happens when business is bad? •  Ensure you can decrease costs promptly if usage decreases
  • 13. The ITAM Review Australia Conference 2018 Negotiate with the end in mind •  Think about what do you need in the contract to ensure you can: §  Cancel the contract §  Termination periods §  Renegotiate effectively §  Negotiate your renewal NOW to avoid big price hikes §  Limit for price increases each year (eg RPI plus 2%) §  Migrate to another provider §  Termination periods §  T&Cs relating to data retention and export §  Manage supplier insolvency §  Software code escrow •  Drive down the price as far as possible in your first contract –  It will set a benchmark for follow-on deals
  • 14. The ITAM Review Australia Conference 2018 Exert a light touch over shadow IT •  What is Shadow IT? –  The business had an idea and decided to test it out •  Shadow IT is everything formal IT should be – agile, flexible and responsive to business needs –  Put in place a light touch procurement framework that is also agile, flexible and responsive to business needs
  • 15. The ITAM Review Australia Conference 2018 Design and Build Decommission & Retire Operate & Manage Design & Build Contract Negotiation It’s about cost efficient solutions
  • 16. The ITAM Review Australia Conference 2018 Align cloud spend and the business •  The link between cloud spend and the benefits received by ‘the business’ must be transparent •  Ensure the relationship with the business, how the service will be funded etc is ‘hard coded’ into the services at the build stage –  Effective configuration management is critical for tracking each configuration item and linking it back to the business services provided
  • 17. The ITAM Review Australia Conference 2018 We need to design and build cost effectively •  Cost effective design is all about Governance §  Projects -  Business cases should be for 3 or more years -  Yr 2+ funding is a pre-requisite for approval §  Solutions Design -  Do a financial options analysis (!) to ensure the most effective design is chosen -  Don’t forget the licensing! §  Changes -  Are costs reviewed and approved at CAB?!
  • 18. The ITAM Review Australia Conference 2018 The interaction of legacy with cloud has dangers •  Designs must be risk assessed by a licensing subject matter expert at all stages of the design and build process
  • 19. The ITAM Review Australia Conference 2018 SAP vs Diageo •  It’s a sad, sad story….
  • 20. The ITAM Review Australia Conference 2018 Operate and Manage Decommission & Retire Operate & Manage Design & Build Contract Negotiation Manage down costs
  • 21. The ITAM Review Australia Conference 2018 In-life cost optimisation is limited •  IaaS and PaaS in-life cost optimisation relies on good design §  Standardised design and provisioning approaches to ensure control §  Taking advantage of cloud management features will allow consumption will flex up and down with business needs …as long as you got the contract right! •  SaaS relies on good process §  Joiners movers leavers §  Well-managed AD §  Effective request fulfilment and procurement processes
  • 22. The ITAM Review Australia Conference 2018 Don’t get in a tizz over Shadow IT •  Shadow IT is volatile by its nature –  If the idea is a success, the service will grow and the business will want it integrated with other IT services –  If the idea didn’t work, the Shadow IT will wither away •  Build a well-worn path to allow Shadow IT to be integrated into broader service management as it becomes clear the idea was a success The business had an idea and decided to test it out Remember !
  • 23. The ITAM Review Australia Conference 2018 Decommission and retire Decommission & Retire Operation & Management Design & Build Contract Negotiation Switch stuff off!
  • 24. The ITAM Review Australia Conference 2018 The only way to get a grip…. Switch stuff off!
  • 25. The ITAM Review Australia Conference 2018 We need to understand ROI The business needs to make decisions about what to keep IT needs to provide it with the enabling information Business Value Costs
  • 26. The ITAM Review Australia Conference 2018 Who will tame the cloud?
  • 27. The ITAM Review Australia Conference 2018 ITAM will be that enabler Cloud is an IT Asset – let’s bring it into our existing ITAM Management System We already: –  Translate technology, usage and complex contractual arrangements into $ $ $ –  Implement governance processes to manage and minimise commercial and contractual risk We have a strategic imperative to extend ITAM into the cloud
  • 28. The ITAM Review Australia Conference 2018 What do we need to do? Decommission & Retire • Business relationship managers • Need data and analysis to link IT services to the business – are we still getting value? Operate and Manage • IT Operations • People, Tools, Processes and partners working together Design & Build • Architects • Designs need to be assured – are they cost-effective? Can they be managed? Contract Negotiation • Procurement • Need data and analysis to support negotiations and renewals IT Asset Managers Provide governance ensure cloud assets are managed effectively throughout their lifecycle
  • 29. The ITAM Review Australia Conference 2018 What do we need to do? 1.  Stop looking backwards §  License compliance is important, but there are new risks to manage 2.  ITAM by design §  Build the ability to optimise our assets into everything we do 3.  Develop mature relationships with IT Finance §  Make sure we understand where our costs are going over the next 3 – 6 years 4.  Develop mature relationships with the Business §  The Business needs to be accountable for decisions about cost vs value – not IT §  IT needs to enable meaningful conversations by providing accurate cost data linked to real technology services
  • 30. The ITAM Review Australia Conference 2018 Thank You