IT Service Management and Cloud Computing - AXELOS Webinar

AXELOS.com
Mark O’Loughlin
Head of Cloud Advisory,
Consultancy and Education
IT Service Management
for Cloud Computing

www.auxilion.com
IT SERVICE MANAGEMENT FOR CLOUD
COMPUTING
Mark O’Loughlin
Head of Cloud Advisory, Consultancy and Education

W www.auxilion.com | T +353 (0) 87 9202 905 | E mark.oloughlin@auxilion.com | t @oloughlinmark
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@AXELOS_GBP
Email mark.oloughlin@auxilion.com
Web www.auxilion.com
www.AXELOS.com
Blog www.markoloughlin.org
www.AXELOS.com/news/blogs

Introduction
• Head of Cloud Advisory and Consulting
• Consultant
- Service Management
- Service Architect / Designer
• Author
- The Service Catalog
- Professional Cloud Service Manager course
- Service Management for Cloud Computing (In progress)
• ITIL Master
• ITIL Trainer
• Director itSMF Ireland
• Director Cloud Credential Council
• Member of WG25CA (ISO/IEC 20000 workgroup)

Cloud Computing
How did we get to today?

1900s
Before the electricity grid, companies
had to build their own power plants in
order to have electricity.
Building and running electricity plants
was a non-core activity.
The advent of shared electricity leads
to electricity being provided via a
public grid system as a utility.
Companies no longer need to build
and operate their own independent
electricity plants.

Quick Timeline
The advent of shared compute leads to IT being provided via a public and private grid system
as a utility.
Companies no longer need to build and operate their own independent IT factories…
…but they will do in many circumstances. In other cases they will outsource IT as a commodity.

Quick Timeline - Recent
Modern-day cloud computing appeared in 1999.
And today we are exploring what we need to do to adapt ITSM and operations for the
cloud!

2015
The advent of shared compute leads
to IT being provided via a public and
private grid system as a utility.
Companies no longer need to build
and operate their own independent IT
factories…
…but they will do in many
circumstances, in other cases they
will outsource some or all of the IT
factory as a commodity.

Todays world of cloud computing
We have a global interconnected data
grid – the Internet
Cloud computing provides always-on
utility based services – like electricity
Time sharing of mainframe resources
is replaced by cloud computing
IT no longer needs to build the entire
IT factory
Organisation consume services – not
IT.
Consumers don’t care about the
underlying IT or technology

Poll No.1
Is your organistion using any of the following?
• Public Cloud
• Private Cloud
• Hybrid Cloud
• None
• Don't Know

Cloud Computing
Benefits of Cloud Computing
• Reduces IT asset ownership
• Reduces overall capital expenditure costs (CAPEX)
• Reduces IT overcapacity
• Increases the capabilities of the IT organization
• Leverages newer technologies
• Provides utility based charging
• Introduces real economies of scale
• Cost savings

How cloud is changing the workplace
Transform with the Cloud
 Scalable
 On-demand
 Economies of scale
 Rapid elasticity
 Quicker time to market
 Utility / commodity of IT
 Real remote access
 Device agnostic
 Future Proof
 Cost Savings
 … etc.
Cloud provides options and flexibility

Cloud is Disruptive
Gartner Hype Cycle 2010

Cloud is Disruptive
Gartner Hype Cycle 2014

Cloud is Disruptive
Service providers globally
have had to change their
business model and adapt
to the disruptive nature of
cloud.
Organisations will need to
adapt also

Poll No.2
Have you modified and adapted your processes and functions to cater
for cloud computing?
• Yes
• No
• Not applicable. Not using cloud computing

Real Scenarios

Process. Who’s Process? What Process?
Chose any process and put it in the
middle. This is the the future.
Can anyone tell
which process
this is?
Cloud Provider
Cloud
Provider
Cloud
Provider
Cloud Provider
Cloud
Provider
Your
process in
here
somewhere

Process. Who’s Process? Recommendations
1. Accept the fact cloud is disrupting the end-to-end process flow
2. Understand this disruption is positive and normal
3. Retain overall accountability of your processes end-to-end
4. Focusing on outcomes – not outputs
5. It is ok to let go of lower end activities as long as you are not
affected e.g. the cloud provider will manager their incidents
6. Process management is becoming more about suppler, contract
and service level management, rather than activity management
7. Remember the most dangerous phrase in business is …

Process. Who’s Process? Recommendations

Change Management
Secret No. 1
Change management can
inhibit the benefits of cloud
computing unless modified.
Secret No. 2
A modified change
management process can
• Control spend and costs
• Prevent VM sprawl
• Reduce licensing
• Control cloud usage
• Be proactive
• Help the case for cloud
computing

Change Management - Recommendations
1. Use pre-approved change models for increasing and decreasing
agreed cloud computing change requests
2. Use service orchestration – where possible (linked to point 1)
3. Manage the OPEX spend - agree pre-approved maximum
thresholds for increasing cloud computing services
4. Invite finance, business owners and budget holders to the CAB –
i.e. they approve their spend of budget on cloud computing
resources used by their departments
5. Use change records to validate if previous increases in cloud
computing resources are still required

Poll No.3 Service Level Management
Are back to back SLA’s and service agreements becoming a thing of
the past?
• Yes
• No
• Don’t know

Service Level Management
Are back to back SLA’s and service agreements a thing of the past?
Public Cloud
• In public cloud the big cloud providers deliver to their SLA
• In public cloud the service is shared and SLA is generally the same
for all customers
• In public cloud, SLA is generally on the cloud provider’s terms
Private Cloud
• In private cloud customers have the ability to define the SLA, but the
cost is higher than that of the public cloud equivalent
• In private cloud, SLA is generally defined by the customer

Service Level Management
Traditional Urgency & Impact Matrix Sample Cloud SaaS Service Targets
Sample NOC Service Targets
Issues matching service levels (requirements and targets)

Poll No.4 Service Catalogue
Does your IT organisation provide their services through a service
catalogue (of any description)
• All services offered through SC
• Some services offered through SC
• No services offered through SC

Service Catalogue
Cloud Providers
• Many cloud providers offer services through online service
catalogues
• This is quick, efficient, on-demand services
• Costs are clear and easy to understand (caveat – sometimes)
• Services are clearly defined, described and understood
IT Departments
• Many IT departments still do not use service catalogues at all
• This is slow, inefficient and non-demand
• Services may not be clearly defined, described or understood

Service Disintermediation
Definition
Disintermediation is the removal of intermediaries in a supply chain, or
“cutting out the middleman”.
In other words:
The business cutting out the IT department and buying cloud based
services direct from cloud service providers
This is a real threat and devalues the IT organisation

Service Disintermediation - Recommendations
1. Expand the function of the service desk. It was never just meant to
be Level 1-2 focused.
2. Develop a real SPOC Single Point of Control
3. Control disintermediation (reduce Shadow IT)
4. Offer cloud services from the Service Catalogue
5. Offer services comparable to external cloud computing vendors
6. Be very responsive - introduce service orchestration
7. Become agile – expand the control of Change Management

ABC | Attitudes | Behaviours | Culture
Non-technical reasons preventing the adoption of cloud computing
• Politics
• Turf wars
• Empires
• Culture
• Change
• Fear

High Level Recommendations
• To introduce cloud you need to build on a solid foundation
• ITIL, COBIT, ISO/IEC: 20000 are all suitable foundations
• Adapt your processes and functions to benefit from cloud
• Understand that outsourcing part of the IT factory is just
business
• Retain end-to-end accountability of processes
• Embrace the disruptive nature of cloud
• Develop a real and useful service catalogue
• Educate the business to facilitate cloud adoption and
eradicate doing more of the same

Helpful Resources
AXELOS White Paper on
ITIL and Cloud
Computing
https://www.axelos.com/case-studies-and-
white-papers/it-service-management-and-
cloud-computing

Cloud Education Services
Contact Auxilion to learn more about
what cloud is and how your
organisation can benefit from cloud
computing.
Auxilion provides professional cloud
courses certified by the Cloud
Credential Council.
Contact
mark.oloughlin@auxilion.com
Course Dates
http://www.auxilion.com/professio
nal-cloud-service-manager

Professional Cloud Service Manager
Course Content
• Cloud Service Management
Fundamentals
• Cloud Service Management Roles
• Cloud Service Strategy
• Cloud Service Design, Deployment
and On-Boarding
• Cloud Service Management
• Cloud Service Economics
• Cloud Service Governance
• Showing the Value of Cloud
Services
• Popular Service Management
Frameworks

Questions
And now…
… over to you.

IT Service Management and Cloud Computing - AXELOS Webinar

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