Unifying IT with Outcome-Aware AIOps

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Unifying IT With
Outcome-Aware
AIOps
Dennis Drogseth
Vice President
Enterprise Management Associates
Bhaskar Krishnamsetty
Co-Founder and Chief Product Officer
CloudFabrix

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Featured Speakers
Slide 3 © 2020 Enterprise Management Associates, Inc.
Dennis Nils Drogseth, Vice President, EMA
Dennis joined Enterprise Management Associates in 1998 and brings several years of
experience in various aspects of marketing and business planning for service
management solutions. He supports EMA through leadership in IT service
management (ITSM), CMDB systems, and megatrends like advanced operations
analytics, cross-domain automation systems, IT-to-business alignment, and service-
centric financial optimization.
Bhaskar Krishnamsetty, Co-Founder and Chief Product Officer, CloudFabrix
Bhaskar has 25 years of experience in technology leadership, engineering, marketing
and product management. In his role as Co-Founder and Chief Product Officer of
CloudFabrix Software Inc. Bhaskar is responsible for setting the strategic direction,
with the key focus in product development and organizational planning.

Unifying IT With
Outcome-Aware
AIOps
Dennis Drogseth
Vice President
Enterprise Management Associates

Agenda
What is AIOps?
 What makes it different and relevant?
 How is it evolving?
How AIOps can unify IT
How business outcomes align with AIOps
What you should prioritize in selecting an AIOps solution
© 2020 Enterprise Management Associates, Inc.Slide 5

Research Sources
“Optimizing DevOps Initiatives: The View From Both Sides of the
DevOps Divide” August 2019
“Reinventing ITSM with Automation and Analytics” April 2019
“AIOps and IT Analytics at the Crossroads” September 2018
“Unifying IT for Digital War Room Performance” April 2018

What is AIOps?

INDUSTRY ANALYSIS & CONSULTING© 2020 Enterprise Management Associates, Inc.
What Criteria Does EMA Apply to AIOps/AIA?
1. Assimilation of data from cross-domain sources in high data volumes for
cross-domain insights
2. Access to multiple data types, e.g., events, metrics, logs, etc.
3. Multi-domain support in terms of roles
4. Capabilities for self-learning to deliver predictive and/or prescriptive
and/or if/then actionable insights
5. Support for a wide range of advanced heuristics
6. Potential use as a strategic overlay that may assimilate multiple
monitoring investments
7. Support for private cloud and public cloud
8. The ability to support multiple use cases
Slide 8

AIOps and the Other Analytic Categories EMA Assessed
What types of analytic investments in support of IT does your company currently engage?
86%
81%
76%
78%
60%
0%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
AIOps across multiple domains (or IT operations
analytics) (or digital operations)
Big data stores for data search
End-user experience/customer experience
management analytics
Security-specific analytics
Capacity-specific analytics
Other
Don't know
Sample Size = 300, Valid Cases = 300, Total Mentions = 1,142
Slide 9

AIOps vs. Other IT Analytics Types (e.g., Big Data)
 AIOps led in the following categories:
 An affiliation with larger enterprises
 Active support for a broader range of use
cases
 More likely to be top-down, driven by the
executive suite
 A greater affinity for applying best practices
 Dramatically broader support for third-party
toolset integrations
 Stronger support for integrated automation
 The highest success rate overall
Slide 10

Seven Top Benefits From AIOps Adoption
1. Improved OpEx efficiencies within IT
2. Faster time to repair problems
3. Faster identification of security threats
4. Faster time to deliver new IT services
5. Better correlation between change and performance
6. Improved employee/customer experience
7. Better alignment between IT and
business service performance
Slide 11

Optimizing Incident Management with CloudFabrix At a Large
North American Healthcare Provider
CloudFabrix helps us to identify incident outliers, to better understand if
it’s a repeated offense. We can review incidents over the same day,
the last week, the last six months, or twelve months, or whatever
timeframe is a priority, and see what’s been repeated and what’s not.
We can also see what the root cause analysis for the incidents were
and map these to changes made and code revisions across the
infrastructure.

How AIOps can Unify IT

AIOps can Support a Broad Variety of Use Cases
Slide 14

75% Show Digital War Room Transformations Driven by Technology – with
Automation and Analytics in the Lead
Which of the following best describes how your digital war room changed as your
organization entered the digital era?
24%
32%
19%
18%
6%
2%
0% 5% 10% 15% 20% 25% 30% 35%
Our war room fundamentally remained the same.
Our war room fundamentally transformed through
automation.
Our war room fundamentally transformed through
analytics/AI.
Our war room transformed through analytics/AI
and automation.
Our war room fundamentally transformed for other
technology-specific reasons.
Our war room fundamentally transformed for
reasons other than technology.
Sample Size = 272

72% of ITSM Teams saw a Future Possibility for Ticketless ITSM Driven by the
Combination of AIOps and Automation
Do you see a future possibility for ticketless ITSM due to a combination
of AI/analytics and automation technologies?
72%
21%
8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Yes
Mayb
e
No
Sample Size = 400

On Average, IT Organizations Want Their AIOps Investments
to Assimilate About 23 Monitoring or Other Tools
1%
9%
14%
17%
21%
15%
8%
13%
3%
0% 5% 10% 15% 20% 25%
None
1-5
6-10
11-20
21-30
31-40
41-50
More than 50
Don't know
Sample Size = 300
How many monitoring or other management tools would you expect to integrate into your
organization’s IT analytics solutions directly or through an aggregated data store?
Slide 17

Perspectives on Toolset Assimilation and Consolidation
cfxDimensions delivers strong value in the
assimilation of preexisting monitoring and other
toolset investments, so insights can be visualized
more cohesively and more dynamically. Using
cfxDimensions, we integrate both event and
metric data and reduce the lag from two to three
minutes to less than three seconds.

Targeted Stakeholders Supported via AIA/AIOps: A Total of 19 Roles
 The top five domain stakeholders (with
an average of 7.21 supported) were:
 Cloud management
 Database management
 Applications management/support
 Security/compliance
 Systems
 The top five cross-domain stakeholders
(with an average of 7.55 supported) were:
 IT operations/cross-domain (tied with)
executive IT
 ITSM (beyond the service desk)
 Data analyst/data scientist
 Infrastructure management
 Line of business (not central IT)
 The top five business stakeholders (with
an average of 4.47 supported) were:
 Business operations
 Business development/planning
 Customer experience management
 Executive (non-IT)
 Online operations
Slide 19

Uniting IT Stakeholders Serving a Large North American
Healthcare Provider
When I was pursuing my use cases for network and data center
planning, I already knew that CloudFabrix could serve more of our
stakeholders. When we introduced it to engineering and operations,
they found more and more value, for instance in real-time incident
and problem management, where CloudFabrix does a lot of magic
in the background to put incidents in context.
We’re increasingly hearing, “I don’t need to dedicate my people to a
waste of manual effort. This tool can do it!”

93% Indicated Extremely or Very Good Integration Between Operations and ITSM
51%
49%
48%
45%
43%
43%
42%
42%
41%
39%
35%
28%
28%
0%
IT governance analytics supporting operational efficiencies
Shared data for improving internal end-user experience
Active social IT support shared between users and IT
Integrated ITSM knowledgebase sharing with operations…
Mobile IT communications across ITSM and operations
Integrated support for SLM/SLA priorities
Integrated support for end-user experience management…
Integrated project management
Support for integrated change/performance via…
Integrated trouble ticket analytics
Workflow, scheduling for triage, and remediation
Shared runbook and automation routines
Other integration between ITSM and operations for…
Other
How do operations and ITSM collaborate in leveraging IT analytics?
Sample Size = 293, Valid Cases = 293, Total Mentions = 1,564
Slide 21

How Business
Outcomes Align with
AIOps

Top Ten Business Impact Metrics for AIOps
1. Revenue through IT services
2. Business activity metrics
3. Improved business efficiencies due to reduced downtime
4. Business process efficiency/impacts
5. Industry compliance-related metrics
6. Internal service-level agreement (SLA) requirements
7. Cost of service delivery (internal)
8. Cost of service delivery (external/service provider)
9. Cost-related SLAs with service providers
10. Operations OpEx cost savings

A Large North American Healthcare Provider Highlights Change-
Related Costs
CloudFabrix will help to tell me where I have to refresh the
infrastructure for performance and asset management reasons,
three to five years out. And if I need to refresh part of the
infrastructure CloudFabrix will show me the cost in terms of both
capex and operational expenditures. I can just plug in a number,
say, targeting 500 assets per year, and all the data is there in ten to
fifteen seconds. It’s amazing!

Some Additional AIOps/Business Priorities
Improved external customer satisfaction
Improved internal/user customer
satisfaction
Faster time to create, develop, deliver, or
update new services
Competitive brand advantages/conversions
from competitive websites
Improved supply-chain related outcomes

How CloudFabrix Promotes Business-to-IT Alignment
Above all, what we liked about cfxDimensions
was the fact that it was outcomes-driven.
Rather than just looking proactively at
different data, which was itself of value, with
cfxDimensions we were able to take that up a
level and relate what was happening to
business outcomes and business objectives.
That was good for our business because
most CIOs we sell to are focused on business
outcomes.

Some Perspectives on Digital Transformation and
Best Practices for Aligning AIOps Initiatives with Business Needs
 94% viewed digital transformation as either an “extremely” or a “very”
high priority, with initiatives well underway
 An indication of success in overall AIOps initiatives
 55% see digital transformation as driving their AIOps initiatives
 37% see the two as tightly coupled
 63% are leveraging best practices in support of their AIOps
deployments
 35% have plans to leverage best practices
 Best practices also correlate with AIOps success
 Top three were ISO Security 27001/27002, regulatory compliance
(e.g., HIPAA), IT balanced scorecard

What You Should
Prioritize in Selecting
an AIOps Solution

EMA’s Recommendation: Look for a Solution That Meets All These Criteria
1. Assimilation of data from cross-domain sources in high data volumes for
cross-domain insights
2. Access to multiple data types, e.g., events, metrics, logs, etc.
3. Multi-domain support in terms of roles
4. Capabilities for self-learning to deliver predictive and/or prescriptive
and/or if/then actionable insights
5. Support for a wide range of advanced heuristics
6. Potential use as a strategic overlay that may assimilate multiple
monitoring investments
7. Support for private cloud and public cloud
8. The ability to support multiple use cases
Slide 29

Top Five Purchasing Priorities for AIOps
1. Ease of implementation
2. Ability to scale across large, complex IT
environments
3. A secure and compliant solution
4. Flexible and graphically compelling reports and
dashboards
5. Easily customized analysis for more in-depth
understanding of issues

Synergies: Those with Advanced Levels of Automation…
 Had more investments in AI/analytics
 Achieved more benefits from AI/analytics deployments
 Showed more points of integration for their AI/analytics investments
 Were more likely to have AI/analytics drive their automation
 Parallel synergies existed, with those showing more advanced investments in
AI/analytics—mirror images of each other
Slide 31

Moving Toward Fully Data-Driven Automation is a Step-by-Step Process
To what degree does your organization enable automated actions to be taken based
on AI/analytics recommendations?
48%
48%
5%
0% 10% 20% 30% 40% 50% 60%
High: Most of the possible automated actions
are enabled with the option of human override
Medium: Most automated actions are enabled
only with human oversight
Low: We don't allow automated actions except
for proven routines, such as batch processing
Sample Size = 400

Top Five Interdependencies for AIOps
 Infrastructure-to-application
 Endpoint-to-infrastructure
 Infrastructure-to-infrastructure
 Infrastructure-to-business services
 Application-to-business services
Top Four Sources
 Application dependency mapping for cost
 Application dependency mapping for change
 Service modeling dashboard for business impact
 Service modeling/topology provided through an analytic tool
Capturing Interdependencies is Key for Context

54% viewed CMDB/CMS as “extremely important” to their AIOps
strategy
 36% as “very important”
55% updated their CMDB/CMS as frequently as under five minutes
 Real-time currency also favored success
81% are updating the CMDB/CMS-related dependency insights via
AIOps, for currency and relevance
 Which also favored success
 17% would like to make the update
CMDB/CMS Specifics

1. Data quality issues
2. Products not fully baked yet
3. Data relevance/lack of context
4. Tools are too complex to
administer
5. Internal resources – getting
budget and people
6. Trouble extracting data
7. Incomplete data
Top Seven Roadblocks

CloudFabrix Approach
For AIOps Driven IT Transformation
Bhaskar Krishnamsetty, CPO, CloudFabrix Software Inc

37© 2015 - 2020 CloudFabrix Software, Inc. All Rights Reserved
Data
Fabric
AI / ML
Engine
Asset
Data
Ops Data
Biz Data
Operational
Intelligence
Asset
Intelligence
+
CloudFabrix AIOps Approach : Unifying IT
IT Planning
DevOps
IT Ops
ITSM/NOC Ops
Use Cases
• 360-degree IT asset visibility
• Capacity planning
• Discover renewal & consolidation opportunities
• Risk compliance & management – EOL/EOS etc.
• Code traceability to Incidents
• Change impact analysis
• Build quality prediction Analytics
• Alert Noise Reduction
• Proactive Monitoring
• Outcomes Assurance
• Full-Stack Insights (App/Infra/Network..)
• Incident MTTR Reduction
• Single pane of Observability
• Incident Prevention
IT Ops
• Alert Noise Reduction
• Proactive Monitoring
• Outcomes Assurance
• Full-Stack Insights (App/Infra/Network..)
ITSM/NOC Ops
• Incident MTTR Reduction
• Single pane of observability
• Incident Prevention
DevOps
• Code traceability to Incidents
• Change impact analysis
• Build quality prediction Analytics

MTTD
80%
IT Operations: Key Challenges, Outcomes & Benefits
“ … what a relief… With
CloudFabrix, we have
significantly cut down noise to
our NOC and Ops team and they are
now working on a fraction of
incidents that really matter…”
- Sr. Director, IT Ops, A Fortune 100
Company
Key Challenges:
• Too many monitoring tools & too much alert
noise
• Critical alerts escape in the noise
• Unable to detect/prevent problems early
• Data quality & data dispersion
>85%
Alert Volume Data Assimilation
Savings
>500
hrs/month
>85%
Alert Volume Data Assimilation
Savings
>500
hrs./month

Cost Per
Incident
>75%
ITSM/NOC Ops: Key Challenges, Outcomes & Benefits
“… we achieved shift left with
the CloudFabrix Platform. Our
L2 Engineers are doing what L3
engineers used to do, and L1s
what L2s are used to do”
- Sr. IT Ops Mgr., Global Financial
Organization
Key Challenges:
• Problem Isolation – Root Cause
Analysis
• Pull together relevant teams & data
• Hard to access, verify diverse ops
data
150%
Resolution
Rate of L1 MTTR Reduction
>50%
Single pane of observability with
collaboration capabilities

IT Planning: Key Challenges, Outcomes & Benefits
“ … saved us time & money… and
greatly simplified the
complexities of tracking
Hardware/Software assets and
their dependencies, ... we now
have better control of managing
lifecycle and upgrade initiatives
… ”
- Sr. Director, Cloud & IT Ops
Key Challenges:
• Accurate view IT assets and Lifecycle
• Risks from out-of-support and aging assets
• Costly and manual audit and compliance
• Impact assessment to drive changes
100%
Asset
Visibility
Compliance Cost
Savings
>$250K
Per
Quarter
Savings from
Unused Assets
$1M+
Annual
Impact AssessmentEOL/EOS
Asset Intelligence

DevOps : Key Challenges, Outcomes & Benefits
“…As an SRE, I really like the way how
cfxDimensions provides insights on
Incidents and then link them back to
the builds, change artifacts and code
repositories. This complete spectrum
view helps me prioritize the efforts to
improve reliability of our e-commerce
site…”
- SRE Architect, E-Commerce Company
Key Challenges:
• Assess impact of code changes on ops
• Trace back to code for incident
analysis
• Support faster change velocity
90%
Change
Success Rate
Change Velocity
75%
90%
Availability Change Cycles
75%
MTTR
75%

CloudFabrix Differentiating Approach for Faster Time to
Value
▪ End-to-end AIOps 360 Approach
▪ Unifying IT - Powering ITSM & NOC teams with automated Incident
Response
▪ Outcomes Monitoring & Assurance
▪ Context is King: Dynamic Asset Intelligence & Enrichment

CloudFabrix AIOps 360 Approach
Proactive Assurance
Faster Incident Resolution
Alert Noise Reduction
Faster Root Cause Analysis
AIOps
360
Continuous monitoring of outcomes -
Predictive analytics and insights -
2-way collaboration capabilities -
Built-in Diagnostics-
Auto-remediate with automation & RPA tools -
- Ingest alerts from multiple sources
- Automatic alert context enrichment
- ML driven Correlation and Suppression
- Reduce to few actionable alerts & incidents
- Automatic stack resolution - dependencies
- Single pane of Observability - Operations data
- Knowledge mining, identify changes etc.
- Root cause Inference using AI/ML algorithms

Unifying IT – ITSM, NOC, ITOPS
CloudFabrix AIOps 360
Metrics Logs Stack
Change
Detectio
n
KB
Mining
Collab.
Monitoring Tools: Performance, Log ...
...
Pull metrics & logs (on demand with
meta data discovery)
Alerts, Events
Incident
Avoidance
Incident Volume
Reduction
Proactive Alerting &
Predictive Insights
Incidents MTTR
Reduction
Outcomes Outcomes
Assurance

Outcomes Approach

Context is King: Dynamic Asset Intelligence for effective
AIOps
CloudFabrix Asset
Intelligence
Business
Services
APP
Microservices
Linux / Windows
Virtualization
Network
Storage
Firewalls
DNS
DB
Data Tools
METRICS / TRACES
LOGS
NETFLOW/PCAP
vROps
Asset
Intelligen
ce
And/Or
3rd Party Files/CMDB
sources
AIOps/
3rd
PartyWebhook/A
PI
Dynamic Asset
Resolution &
Enrichment
(DARE)
CFX Edge
Collectors
Asset Discovery
CMDB
Update
Dynamic
Metadata
Discovery
(DMD)

Customer Success Story – Large Healthcare Company
The client is one of the Largest Healthcare companies has 15+ data
centers with 20+ operations tools. The company has an expanding
footprint across multiple markets and looking for streamlined and
autonomous operations to keep up with the growth while maintaining
high levels of customer satisfaction.
Pain Points
• Multiple monitoring & log analysis tools
• Partial & insufficient incident data with siloed ops
• Multiple teams involved with incident resolution
• High incident volume
Key Objectives
• Consolidate & Unify Operations
• Reduce overall IT Noise
• Reduce overall incident resolution (MTTR) time
• Improve IT & NOC Ops efficiency
• Transform to Proactive & Predictive Ops

Incident Response Steps
Without AIOps
Typical Steps:
• Impact assessment - Hours
• Routing/Assembling teams - Days
• Data collection/ diagnosis – Hours
• Root Cause Identification - Days
• Knowledge base mining – Hours
• Remediation – Hours
L1 L2
Networ
k
App
Incident
Resolved
Detour
DB
Knowledge
Sources
Knowledge
Sources

Incident Response Steps
Without AIOps
Typical Steps:
• Impact assessment - Hours
• Routing/Assembling teams - Days
• Data collection/ diagnosis – Hours
• Root Cause Identification - Days
• Knowledge base mining – Hours
• Remediation – Hours
L1 L2
Networ
k
App
Incident
Resolved
Detour
DB
Knowledge
Sources
Knowledge
Sources
Accelerating Incident
Response With AIOps
Typical Steps:
• Impact assessment - Mins
• Routing/Assembling teams - Hours
• Data collection/Diagnosis – Mins
• Root Cause Identification - Mins
• Knowledge base mining – Mins
• Remediation – Mins
L1 L2
Network App
With AIOps
Incident
Resolved
Context Driven
Collaboration
Knowledge
Mining

< 15
Mins.
MTTD
< 1
Hour
MTTR Cost Savings
$3M+ 85% 75%
Alert Volume
Reduction
Resolution
Rate of L1
Outcomes Achieved
Prev: 60-Min Prev: 8-Hours Prev: N/A Prev: N/A Prev: 40%

cfxGenie - CloudFabrix AIOps Assessment App
Incidents /
Tickets
(Historical Data > 90 days)
Data input via API or
CSV/Excel
CloudFabrix AIOps
Assessment App
Signup for free access at
cloudfabrix.com/cfxgenie/signup
Incident Quadrant
Incidents mapped in logical zones
based on MTTR and frequency
Incident Clusters
Grouping of incidents based on symptoms
using NLP and clustering techniques
Cost Benefit Analysis
Assessment of current costs for handling
incidents. Establishes baseline data to
track progress

ZONE-3
Alert Noise
Too many frequent, low impact alerts.
Typically caused by Monitoring tool issues.
Best way to address this is through
Automation
ZONE-4
Danger Zone
Typically Caused by Process Issues
ZONE-1
Occasional Low Impact Incidents.
Optimization of these incidents can be a low
priority
ZONE-2
Issues with RCA Challenges
Typically Caused by Too many silo’d tools,
access limitations, lack of automation in
data collection, analysis
FrequencyofOccurrence
MTTR
● Move ZONE-3 incident
categories to ZONE-1
through noise detection and
automation
● Move ZONE-2 incident
categories to ZONE-1
through intelligent RCA and
Improved data integration
● Eliminate the possibility of
any incident category to ever
get into ZONE-=4
Reduced MTTR * Reduced Noise * Improve Risk Protection Against Catastrophic Business Impacting Situations
What Next? - CloudFabrix Zoning Analysis with cfxGenie

Incident Zoning Analysis

Signup for cfxGenie Free Cloud Access
cloudfabrix.com/cfxgenie/signup
Learn more about CloudFabrix Offerings
cloudfabrix.com
Reach us at info@cloudfabrix.com

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