It's Getting Cloudy In IT Service Management

IT’S GETTING CLOUDY
IN
IT SERVICE MANAGEMENT
MARK O’LOUGHLIN
Copyright © Mark O’Loughlin 2014

Profile
Mark O’Loughlin
• Service Management Principal
• Consultant
- Service Management
- Service Architect / Designer
• Author The Service Catalog
• Author Professional Cloud Service Management
• ITIL Master
• ITIL Trainer
• Director itSMF Ireland
• Member of WG25CA (ISO/IEC 20000 workgroup)

Organizations

Promote the Message
Twitter: @oloughlinmark
Email: mark@redcirclestrategies.com
mark.oloughlin@italliancegroup.com
mark.oloughlin@auxilion.com
Website: www.redcirclestrategies.com
Blog: www.markoloughlin.org

Agenda
• Cloud Computing
• Benefits & Importance of Cloud
• Cloud and ITSM Convergence
• Scenarios
• Recommendations
• Helpful Resources

Cloud computing is seen as a
new way of delivering
computing resources
What is Cloud
Cloud computing is
not new technology
Cloud computing is the
delivery of computing as a
service, rather than a product,
where shared resources are
provided as a utility over a
network (internet)

Every Minute of the Day
7
Are you “In the Cloud”?
What are you using?
Many people are “In the
Cloud” without realising it.

Interesting Statistics
8

Examples of Cloud Services

How Did We Get Here?
Cloud Timeline
10

Characteristics of Cloud
Source: NIST
How will current ITSM best-practices enable and support the fundamentals of
cloud computing?

Cloud Service Models
12

Uses of Cloud Service Models
13

“Within two years, 80% of
Fortune 1000 enterprises will
use the Cloud”
80%
Source: Gartner
Copyright © 2012 ITpreneurs. All rights reserved. www.ITpreneurs.com

Cloud is Disruptive
Cloud is changing how:
• IT services are delivered
• Businesses offer services to customers
• Customers interact with business
-New cost models are being introduced
-OPEX is replacing CAPEX spend
-New routes to market, quicker
- New approaches to IT & Business management
required

Cloud is Disruptive
The business will expect faster, quicker, cheaper,
better, agile.
How will IT service providers adapt to the changes
cloud is introducing?
What can you deliver with cloud?
How will you manage the development and
operation of cloud based services?

Even though cloud is disruptive there are many benefits
Benefits of Cloud
• Scalable
• On-demand
• Pay-per-use
• Elastic
• Less CAPEX, more OPEX
• Quicker to implement IT
services
• Flexibility
• Scalability
• Dynamic
• Cost effective
• It is disruptive &
challenges the market

Benefits of Cloud
18

Cloud and ITSM Convergence
Updated IT & Business practices will be
required to realise and manage the benefits
from cloud computing

+
+
Todays IT = Hybrid IT
Legacy IT
Traditional IT
Cloud Computing
=
The issue is where is the best-practice
guidance to join up these three worlds?

Hybrid IT Examples
-SaaS based ticketing systems
-PaaS based systems for a test environment
-IaaS for on-demand batch processing
-ERP mainframe system
-Desktop applications
-Client / server environment

WHERE DOES ITSM GET CLOUDY?

Examples for Todays Webinar
To realise the benefits of cloud computing you have
to adapt what you do today
Six basic examples where ITSM gets cloudy!
1. Roles
2. Service Levels
3. Change Management
4. Procuring Services
5. Demand Management
6. Financing IT & Business Services

Common Question
How will cloud affect what you do today?
What new roles are required?
24

Changing Roles
Management of cloud computing and cloud-based
services requires:
• Roles from IT Service Management
• Roles form the organization
• Additional roles not defined in IT Service
Management
NIST defines these key roles
• Cloud Consumer
• Cloud Provider
• Cloud Broker
• Cloud Auditor
• Cloud Carrier
25

Common Questions
How will cloud affect buying and selling
services?

IT Becomes The Broker
IT will buy cloud based services
= New role for IT
• Less in-house staff and operations to manage
• More outsourcing taking place - higher spec roles
• New skills needed - less technical, more business
• Contract negotiation & supplier management
• Increase OPEX offset by decrease CAPEX
• Where is the best practice guidance for The
Broker?

IT Becomes The Broker
IT roles of the (not to distant) future
• Strategy & CIO – aligned to business needs
• Architecture
• Development & design (primarily application)
• Project management
• Consultants including best practice in security &
service management
• Less of the traditional IT jobs done in-house
In-house technical roles expected to phase out decrease
as they will be provided by cloud service providers.

Common Questions
How will cloud affect service levels?

Issues Matching Service Levels
Traditional Urgency & Impact Matrix Sample Cloud SaaS Service Targets
Sample NOC Service Targets

Common Questions
How will cloud affect change management?

Change Management Needs to Change
32
To avail of the “on-demand” attributes of cloud
computing which helps achieve IT and business
goals, objectives and strategies
To help control reducing and retiring cloud
computing and cloud-based services to
streamline costs
To manage the OPEX costs of cloud
subscriptions e.g. SaaS
To manage the OPEX costs of temporary
environments e.g. test environments in PaaS

Change Management
Is traditional change management capable of
dealing with cloud based change?
• Cloud is an on-demand service model
• Changes happen on demand
• Can traditional CAB’s cater for on-demand?
• Actually – who owns the IT change now?
• Who is accountable, responsible – who gets
fired?

Change Management
Is traditional change management capable
of dealing with cloud based change?
• Who’s change management system?
• What changes do you need to know
about?
• Demand spikes need immediate change.

Common Questions
How will cloud affect demand management for
services?

Demand Management
• The IT tap can be turned on or off in an
instant
- True for PaaS, IaaS e.g. more CPU compute power
- Less true for BPaS, SRaaS i.e. redesign or readjust the service
• Know in advance how cloud provider can
react to your changing demands
• Know the costs of using more compute /
services
• Will the business pay for their increased IT
use that meets their demand?

Demand Management
• Requires management of demand from
both supplier and provider
• Identify if SaaS subscriptions will increase
costs e.g. if a SaaS applications is more heavily used than originally
planned
• Does your procurement team understand
cloud services and how to buy them?
• Have you enough OPEX to keep the tap
running?

Common Questions
How will cloud affect financing IT & business
services?

CAPEX v’s OPEX
39
Many cloud services consumes OPEX e.g.
• Office 365 subscriptions
• ServiceNow incident management seats
Considerations:
• Current budgets not set up for increased OPEX spend
• Who will pay for the extra OPEX spend?
• Fixed price for IT services still required by procurement
• CFO’s may want to spend CAPEX and *amortize it over a number of years
• Some cloud services require set-up costs
* How do you amortize subscription based charges?

Recommendations
1. Understand the disruptive nature of cloud
2. Identify where cloud can benefit the organization
3. Realise that change to certain processes will be
required
4. Adapt current policies, processes and procedures
where necessary
5. Continue to capitalize on your ITSM investment
6. Don’t reinvent the wheel – Use & adapt current
practices for cloud
7. Use ITIL and other best-practice to overcome
challenges and explore new opportunities

Helpful Resources
Cloud Service Manager (Mark O’Loughlin-Lead Author)
https://www.itpreneurs.com/course/cloud-service-manager/
Cloud Service Architect
https://www.itpreneurs.com/course/cloud-solutions-architect/
NIST
http://www.nist.gov/itl/cloud/
Axelos White Paper on Cloud Computing
http://www.axelos.com/gempdf/Best_Practice_In_The_Cloud_An_Introduction.
pdf

The ITpreneurs Cloud Portfolio
Cloud Security
Manager
Cloud Service
Manager
Cloud Solutions
Architect Cloud
Administrator
Cloud
Developer
CCC Professional
CCC – Cloud
Technology Associate
CCC –
Virtualization
Essentials
CompTIA – Cloud
Essentials
IT Professional
Copyright © 2014 ITpreneurs. All rights reserved.

Cloud Service Manager
Modules
• 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

Review
• Cloud Computing
• Benefits & Importance of Cloud
• Cloud and ITSM Convergence
• Scenarios
• Recommendations
• Helpful Resources

It's Getting Cloudy In IT Service Management

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