Capacity Management - Is it a Development or Service Management Discipline?

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1 Capacity Management - Is it a Development or Service Management Discipline? Neil McMenemy, Principal Consultant, Capacitas

2 What is Service Management? Capacitas

3 Service Management Service Delivery within Service Management within IT T h e B u s i n e s s The Business Perspective Planning to Implement Service Management Software Asset Management Service Management Service Delivery Service Support Application Management Security Management ICT Infrastructure Management T h e T e c h n o l o g y Capacitas

Management Service Management Service Delivery Service Support Application Management

4 What is Development? Capacitas

5 Capacitas

6 What is Capacity Management? Capacitas

7 ITIL Definition Capacity Management Capacity Management is the discipline that ensures IT infrastructure is provided at the right time in the right volume at the right price, and ensuring that it is used in the most efficient manner. This involves input from many areas of the business to identify what services are (or will be) required, what IT infrastructure is required to support these services, what level of Contingency will be needed, and what the cost of this infrastructure will be. Alternative Definition Capacity Management is the discipline that ensures that there is sufficient resource to give an acceptable level of service to the business at an optimum cost. Capacitas

This involves input from many areas of the business to identify what services are (or will be) required, what IT infrastructure is required to support these services, what

8 Capacity Management Capacity Management within Service Delivery (ITIL 2) Capacitas

9 ITIL 3 Capacity Management sub-processes Service Portfolio Business Requirements Business Capacity Management SLA/SLR IT service design Review current capacity & performance Improve current service & component capacity Assess, agree & document new requirements & capacity Capacity & performance reports & data Capacity Management Information System (CMIS) Service Capacity Management Plan new capacity Forecasts Component Capacity Management Capacity Management Tools Capacity Plan Capacitas

new requirements & capacity Capacity & performance reports & data Capacity Management Information System (CMIS) Service

10 Why ask the question? Capacitas

11 Why ask the question? Early experience as a programmer/analyst Retail bank experience User group evidence Recent experience of IT outsourcers Recent experience of investment banks Breakdown of traditional organisational structures (and barriers) Adoption of best practice Capacitas

group evidence Recent experience of IT outsourcers Recent experience of

12 Early experience as a programmer/analyst Worked in IBM Mainframe environment On-line and batch processes No consideration for capacity and performance Copy of live data used as a test pack didn t consider run time COBOL training course advice Hardware is so fast now that you shouldn t be concerned about coding efficiently (c. 1989) No responsibility for operational support (although application support in live environment was critical) Hack it and pack it or Throw it over the wall Capacitas

is so fast now that you shouldn t be concerned about coding efficiently (c.

13 Retail bank experience Capacity and performance management carried out within Production Services Projects typically used the Waterfall methodology Various levels of success in integrating capacity management into the development lifecycle Typically only works with: Capable people The right attitude project managers need to be encouraged to undertake performance assurance Capacitas

capacity management into the development lifecycle Typically only works with: Capable people The

14 Capacitas

15 Throwing it over the wall Capacitas

16 Capacitas

17 User group experience CMG and UKCMG attendees come from a Service Management population Very few application development attendees Subsequently capacity management advice concentrates on things other than the development lifecycle Some advice relating to performance testing Capacitas

Subsequently capacity management advice concentrates on things other

18 Recent experience with outsourcers Customers demand capacity management and outsourcers claim to do it Capacity management is usually part of the contract but it is not defined In many cases capacity management is really only monitoring and reporting Not much modelling and forecasting done Any capacity management is done on the service management side of the wall Sometimes there is no attempt to interface with the development lifecycle as the developers are often a third party Capacitas

reporting Not much modelling and forecasting done Any capacity management is done on the service management side of the wall

19 Recent experience with investment banks Monitoring, high level reporting and hardware acquisition is done on the service management side Business areas (development) tend to have responsibility for their own application capacity management This includes what ITIL calls business and service capacity management Modelling and performance testing are done by development teams Reason is that the applications are too complex and diverse to be understood by a central organisation Capacitas

includes what ITIL calls business and service capacity management Modelling and performance testing are done by development

20 Breakdown of Traditional Organisations (and Barriers) Organisations that adopt ITIL 3 (properly) define departments and teams differently to the traditional organisations Each department is heavily involved in the complete lifecycle Capacity management is everyone s responsibility and it is difficult to ignore it Capacity management techniques focus on performance testing and benchmarking There is little performance modelling Capacitas

complete lifecycle Capacity management is everyone s responsibility and it is difficult to ignore it Capacity

21 Adoption of best practice We help companies to adopt best practice The first stage is to audit the current capability Different organisations have different approaches Some of these approaches ignore critical capacity management activities, e.g. Response time monitoring Modelling, predicting Performance testing Lifecycle involvement Process definition Addressing these issues can have different solutions Capacitas

22 Team Organisation Application Lifecycle Performance Testing Capacity Database Automation Example Audit Scope Position in Organisation Capacity Planning Process Deliverables Configuration Management CPU Measurement I/O Measurement Memory Measurement Sensitivity Analysis and Disk Space Measurement Response Time Analysis Common Data Analysis Business Service Objectives Service Measurement Business Volume Measurement Business Volume Forecasts Network Measurement Before During After Capacitas

Increasing Complexity 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 y = 2E-05x + 6.9346 R² = 0.

but the capacity plan directly effects the organisation s strategy rather than merely supporting cost justification or service improvement Capacity Management supporting and driving business

23 Increasing Complexity y = 2E-05x R² = ,000 1,000,000 1,500,000 More Proactive More Reactive itsmf UK London and South East Members Afternoon Event Capacity Management Maturity Model Tier 5 Tier 5 uses the same methodology as 4 but the capacity plan directly effects the organisation s strategy rather than merely supporting cost justification or service improvement Capacity Management supporting and driving business decisions Tier 4 Publish capacity plan Build performance model Build resource model Map business volume to resource consumption Linear Regression Tier 4 is usually deployed for critical services Forecasting based on business demand planning methodology Tier 3 Tier 2 Tier 1 Tier 3 involves forecasting but has no link to business demands Alerting Resource trending and time series forecasting Reactive Capacity Management Operational Capacity Management Trends and Alerts Forecasting based on Time Series Analysis and Resource Trending Tier 2 is the minimum recommended - deployed across hundreds or thousands of services Tier 0 No Capacity Management Capacitas

24 Example Process Measurements (KPIs) For each account/service the number of key business and service drivers that are monitored and reported on For each account/service the timeliness of justification and implementation of hardware to meet business demand For each account/service the amount of unused capacity For each account/service the number of problems caused by capacity and performance For each account/service the proportion of time by capacity management staff spent Planning and modelling Fire-fighting For each account/service the cost of preparing capacity plans (and other deliverables) In total, the number of account/services for which the following are produced: Business demand driven capacity plans Feedback of plan v actual data to the business Capacity and performance models throughout the development lifecycle Capacitas

25 Scope v Quality Limited scope and high quality Full scope and high quality Quality of delivery New organis ations Retail bank type Dividing wall Limited scope and low quality Full scope and low quality Scope of activities Capacitas

Service Coverage v Lifecycle Influence Few services and high influence All services and high influence Investment bank type New organisa tions Lifecycle

26 Service Coverage v Lifecycle Influence Few services and high influence All services and high influence Investment bank type New organisa tions Lifecycle Influence Retail bank type Outsourcers Dividing wall Few services and little influence All services and little influence Service Coverage Capacitas

Dedicated Capacity Management v Effectiveness High effectiveness and distributed responsibility High effectiveness and centralised responsibility Effectiveness New organis ations Investm ent bank

27 Dedicated Capacity Management v Effectiveness High effectiveness and distributed responsibility High effectiveness and centralised responsibility Effectiveness New organis ations Investm ent bank type Low effectiveness and distributed responsibility IT Outsourcers Retail bank type Dividing wall Low effectiveness and centralised responsibility Capacity Management centralisation Capacitas

28 Cost v Effectiveness High effectiveness and high cost High effectiveness and low cost Effectiveness IT Outsourcers Investm ent bank type Retail bank type New organis ations Dividing wall Low effectiveness and high cost Low effectiveness and low cost Cost of delivery Capacitas

29 Capacitas

30 Conclusion The most effective way to influence the lifecycle is to adapt the new organisation approach However this decentralises capacity management responsibility Perhaps another way is to have a capacity management department that: Develops and maintains a capacity management process Polices the process Allows distribution of the capacity management activities This is difficult when third parties are involved Different approaches work differently because different people have different abilities! Capacitas

31 Capacitas

Capacity Management Improvement - From Assessment to Benefits

Capacity Management Improvement - From Assessment to Benefits Capacity Improvement - From Assessment to Benefits Neil McMenemy, Principal Consultant, Capacitas Agenda Reasons for engagement Structure of the improvement program Progress to date Capability of team