CLOUD COMPUTING AND ITSM,

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1 CLOUD COMPUTING AND ITSM, For Better or for Worse? By Brian Bourne Copyright 2012 ITpreneurs. All Rights Reserved. 1

2 The Bride and Groom I have been fascinated with the future compatibility and potential marriage between Cloud Computing and IT Service Management (ITSM) for some time now. This article explores the question whether the relationship will be a marriage made in heaven? It also explores the issue of who is the bride and who is the groom? As you read further, you can also decide whether the relationship between Cloud Computing and ITSM is for better or for worse? However, before we can make any judgements on this, we need to understand the personalities of Cloud Computing and ITSM first. Understanding the Cloud Computing Personality Note: For those of you already familiar with cloud computing concepts (and its background), you may want to proceed to the section, A Marriage Made in Heaven. Cloud computing has evolved through a number of phases over the years with its roots in grid and utility computing, application service provision (ASP), Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). Believe it or not, cloud computing goes back to the sixties. The idea of an intergalactic computer network was introduced by J.C.R. Licklider, who was responsible for enabling the development of ARPANET (Advanced Research Projects Agency Network) in This sounds like something out of Star Trek! Since the sixties, cloud computing has developed along a number of lines, with Web 2.0 being the most recent evolution and web 3.0 already appearing on the horizon. The Internet only started to offer significant bandwidth in the nineties; cloud computing for the masses has been something of a late developer. Sorry, guys! Late developer? Could this be the groom? One of the first milestones for cloud computing was the arrival of Salesforce.com in 1999, which pioneered the concept of delivering enterprise applications via a simple website. The next development was Amazon Web Services in 2002, which provided a suite of cloud-based services including storage, computation and even human intelligence through the Amazon Mechanical Turk. 2

3 Then in 2006, Amazon launched its Elastic Compute Cloud (EC2) as a commercial web service that allows small companies and individuals to rent computers on which to run their own computer applications. Another big milestone came in 2009, as Web 2.0 hit its stride, and Google and others started to offer browser-based enterprise applications through services such as Google Apps. In 2009, we also saw the advent of Microsoft into the cloud computing game with its product Windows Azure. Azure, as an operating environment, was designed to manage extremely large pools of computational resources. Is cloud computing the bride? Grooms know that they need a little help in getting organized. The simple explanation is that Microsoft wants customers to run their Windows-based applications over the Internet using Microsoft s data centers, with Azure being the system that organizes resources and handles spikes in demand. And now?! Many IT professionals recognize the benefits that computing offers in terms of increased storage, flexibility and cost reduction. Cloud computing is the delivery of computing as a service, rather than a product; whereby shared resources, software, and information are provided to computers and other devices as a utility (like the electricity grid) over a network (typically the Internet). Cloud computing allows the CIO to focus more on the productivity of the applications that the company will need to be successful, as opposed to worrying about the infrastructure to support those applications. ( Cloud computing is a natural evolution of the widespread adoption of virtualization, service-oriented architecture, autonomic, and utility computing. Details are abstracted from end-users, who no longer have need for expertise in, or control over, the technology infrastructure in the cloud that supports them. 3

4 Understanding the Cloud Personality (Cloud Computing Layers) Client Layer A cloud client consists of computer hardware and/or computer software that relies on cloud computing for application delivery, and which is in essence, useless without it. Examples include (some) computers, phones and other devices, operating systems, and browsers, i.e., phones, tablets, desktops, laptops. Application/SaaS (Software as a Service) Cloud Application Services or SaaS (Software as a Service), deliver software as a service over the Internet, eliminating the need to install and run the application on the customer s own computers, while simplifying maintenance and support. Platform/PaaS (Platform as a Service) Cloud Platform Services, also known as PaaS (Platform as a Service), deliver a computing platform and/or solution stack as a service, often consuming cloud infrastructure and sustaining cloud applications. It facilitates deployment of applications without the cost and complexity of buying and managing the underlying hardware and software layer. 4

5 Infrastructure/IaaS (Infrastructure as a Service) Cloud Infrastructure Services, also known as IaaS (Infrastructure as a Service), deliver computer infrastructure (typically a platform virtualization environment) as a service, along with raw block storage and networking. Rather than purchasing servers, software, data-center space or network equipment, clients will buy these resources as a fully outsourced service instead. Suppliers typically bill such services on a utility computing basis i.e., the amount of resources consumed. Therefore, the cost will typically reflect the level of activity. Server The server layer consists of computer hardware and/or computer software products that are specifically designed for the delivery of cloud services, including multi-core processors, cloud-specific operating systems and combined offerings. 5

6 Understanding Cloud Computing Deployment Public Cloud Public Cloud describes cloud computing in the traditional mainstream sense, whereby resources are dynamically provisioned to the general public on a fine-grained, selfservice basis over the Internet, via web applications/web services from an off-site third-party provider, who bills on a fine-grained utility computing basis. Community Cloud Community Cloud shares infrastructure between several organizations from a specific community with common concerns (security, compliance, jurisdiction, etc.), whether managed internally or by a third-party; and hosted internally or externally. The costs are spread over fewer users than a Public Cloud, but more than a private cloud, so only some of the benefits of cloud computing are realized. Hybrid Cloud Hybrid Cloud is a composition of two or more clouds (private, community or public). The two remain unique entities, but are bound together and offer the benefits of multiple deployment models. Private Cloud Private Cloud is infrastructure operated solely for a single organization, whether managed internally or by a third-party and hosted internally or externally. Users still have to buy, build and manage them and, therefore, do not benefit from lower up-front capital costs and less hands-on management. Essentially, lacking the economic model that makes cloud computing such an intriguing concept. 6

7 Understanding the IT Service Management (ITSM) Personality IT Service Management (ITSM) is concerned with delivering and supporting IT services that are appropriate to the business requirements of the organization. ITSM improves efficiency and effectiveness and reduces the risks of managing IT services. Is ITSM the bride? Most of the time, my wife tells me how to be more efficient! ITSM is a discipline for managing information technology (IT) systems, philosophically centered on the customer s perspective of IT s contribution to the business. ITSM stands in deliberate contrast to technology-centered approaches such as the cloud. The following represents a characteristic statement from the ITSM literature: Source OGC ITIL 2011 Service Strategy: Providers of IT services can no longer afford to focus on technology (The Cloud?) and their internal organization. They must now consider the quality of the services they provide and focus on the relationship with customers. Is this the groom? In most marriages, the groom is responsible for providing the romance in the relationship. ITSM is process-focused, and in this sense has ties and common interests with process improvement movement, e.g., TQM, Six Sigma, Business Process Management, CMMI, ITIL, COBIT frameworks and methodologies. The discipline is not concerned with the details of how to use a particular vendor s product, or necessarily with the technical details of the systems under management. Instead, it focuses upon providing a framework to structure IT-related activities and the interactions of IT technical personnel with business customers and users. ITSM is often equated with the Information Technology Infrastructure Library, (ITIL) an official publication of the Office of Government Commerce in the United Kingdom. However, while a version of ITIL is a component of ITSM, ITSM also covers a number of related, yet distinct disciplines, and the two are not synonymous. 7

8 Cloud Computing and ITSM A Marriage Made In Heaven Now that we have met the Cloud Computing and ITSM personalities, we need to see if they are compatible with each other. Let s take a look at their relationship and the impact they have upon each other. Both Cloud Computing and ITSM reduce costs and improve the quality of the following: People / Partners By increasing efficiency in resource utilization through process and processes, enabling technology in combination with increased efficiency in resource utilization, organizations can utilize cloud computing resources, instead of their own. This will allow them to take advantage of repositioning internal resources required for other projects, or simply look at this as a cost-saving initiative. Both cloud concepts and ITSM are greatly concerned with efficiency and effectiveness of their resources. ITIL s Service Strategy Lifecycle and the associated processes: Service Portfolio, Demand Management and Financial Management, consider utilization from the beginning: Possible reduction of the number of operational resources. Focus staff on priorities and role definitions. Allows for strategic sourcing decisions. Process Cloud computing and ITSM both emphasize synchronization between, and consolidation of people, process and technology. ITSM will continue to look to cloud solutions for taking on the cost of ownership for these areas and expect IT Service value in return. Shorten incident resolution time. Cloud computing will take on this initiative the same way ITSM Internal shops would, using their own Service Desk and Incident Management process. Provide financial IT services information. Over time, the truth of cloud computing and its costs, efficiencies and benefits will be held accountable; and 8

9 ITSM and financial management will be able to discern if cloud computing is financially more economical for organizations. Or, ask themselves if organizations should take on the financial obligation internally and continue to run their own IT Shops. Define business needs in terms of quality, efficiency and effectiveness. This is at the heart of both cloud computing and ITSM. They both must deliver on these initiatives or business will not see or benefit from any value. Increase speed of service, another shared initiative for cloud computing and ITSM. Technology ITSM, through strategic decisions utilizing ITIL Service Strategy Lifecycle, will look to the Cloud as a viable option for the following: Consolidation of technology Better utilization of assets Standardization of working environments Introducing process-enabling technology Prioritizing effort and cost to service levels Standardization of working environments Monitoring and reporting service quality metrics Automating problem diagnosis and resolution ITSM/ITIL Service Strategy Lifecycle, demand and financial management will consider cloud computing for better efficiencies and effectiveness, that will meet organizational goals and objectives: A more agile and responsive IT investment decision making process, integrated with the business. Paying for only what you use; a new generation of service economics. Even more rapid, utility-styled request and deployment of information services. Greater scalability, which links real-time demand and utilization with planned capacity. In a Public Cloud delivery model, capital expenditure is converted to operational expenditure. 9

10 This is purported to lower barriers to entry, as infrastructure is typically provided by a third-party and does not need to be purchased for one-time or infrequent intensive computing tasks. Pricing on a utility computing basis is fine-grained, with usage-based options, and fewer IT skills are required for implementation in-house. Scalability and Elasticity via dynamic, on demand provisioning. Is a Prenuptial Required? Some IT professionals do not think their IT Service Management processes are mature enough to effectively manage cloud-based services, and believe their organizations aren t ready. While some are unsure. There are some concerns that the relationship between Cloud Computing and ITSM may not be compatible. A global survey was conducted by ITSM provider Axios Systems. The survey revealed that only eight percent of organizations currently use their ITSM tool to manage cloud-based services, while 19% think their current tool could support management of cloud services (they just haven t started to do so). Another 31% of IT professionals indicate that their current ITSM tool would not support the management of cloudbased services. The remaining 42% of respondents are unsure. There are vital ITSM steps to consider when adopting the cloud computing. For one, a solid business case is required. IT organizations with business requirements will need to do their home work to determine the costs and the benefits of adopting cloud computing as long-term strategies. If the organization does not have a service catalog, they need to get on with it. The catalog will help manage demand and performance by clearly listing what the business will get, for how much, based on their requirements. Putting the catalog together is a big undertaking. It is an undertaking that is absolutely necessary and one that will pay off. Standard Operating Procedures must be put in place. IT needs to clearly define who has access to systems, and the policies and procedures for provisioning and deprovisioning systems, resources and access. ITSM/ITIL processes are needed to drive efficiency and allow the automation to achieve cost savings. Without these ITSM initiatives in place, the relationship and its benefits could be in jeopardy. Maybe a Prenuptial is required? 10

11 Does Cloud Computing Have the Upper Hand in the Relationship? Some may feel that cloud computing is shaking the ITSM books off their shelves. It has a tectonic impact, as a disruptive technology, upon ITSM projects. If this continues there may not even be a wedding between Cloud Computing and ITSM. The cloud computing discussion is polarizing ITSM theorists and differentiating them from practitioners. Proponents of familiar must-have ITSM artifacts, such as service catalogs and configuration management databases (CMDB), are either strangely quiet, or forming committees designed to ensure inter-operability. Disappointingly, few if any ITSM training classes have adapted their curriculum to embrace, include and explore cloud concepts. Traditional qualification schemes, such as ITIL, and perhaps even the refreshed ISO standard, are outdated. (ITIL) professionals who want to know more about cloud computing are highly encouraged to become certified with the Cloud Credential Council. An older lady once made a remark to me about the similarity between a husband and floor tile, If you lay em right the first time, you can walk on them your entire life. Let s certainly hope the marriage between Cloud Computing and ITSM is a balanced one! As in any good marriage, one partner supports the other, while each brings excitement to the relationship. Together, Cloud Computing and ITSM initiatives must have a good marriage in order to meet ever-changing business requirements, and, hopefully, all will live happily ever after. 11

12 Conclusion The core objective of ITSM and Cloud Computing is to cut IT costs, and be able to meet user demand for IT Services at any given moment. In order to meet these objectives, it will be important that a good relationship exists between ITSM and Cloud. As in any marriage, the relationship will require facing moments of truth, discipline, commitment, and dedication in order to sustain the objectives. Whenever there are concerns or differences between ITSM and Cloud Computing, I would hope that they would be able to work them out. Otherwise, the biggest stakeholder in this marriage, i.e., the business, may suffer. It is up to you to decide if the marriage between ITSM and Cloud Computing is for better or for worse? You be the judge! 12

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