Unlock the code IT Asset Management

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1 HP Software: Apps meet Ops 2015 Unlock the code IT Asset Management Luc Landuyt/ April 2 nd, 2015 Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

2 Business Overview Keep in mind that if you re a cloud consumer, you have a larger problem than just auditing the providers... Can you audit for financial misuse of cloud services inside your organization Do you have any means of providing reports on compliance back to anyone The Business Landscape of Cloud Computing By Daryl Plummer, Gartner 2

3 Overview of HP Asset Manager

4 A New Style of IT has emerged Based on Forces Transforming Business today 4

5 Strategic role of ITAM The role of IT Asset Manager is key to brokering cloud service delivery Rationalize transition of legacy infrastructure, applications and processes Monitor cost of legacy applications and cloud assets Control cost for on premise cloud services Broker off-premise services Traditional Private Public 5

6 HP Asset Manager best of breed ITAM solution Cloud Asset Management Manage hardware, licenses, subscriptions and budgets to optimize cost of services Contract Management Manage subscription, license, maintenance and other contracts and track supplier performance Software Asset Management Ensure license compliance and enforce internal entitlements to minimize software costs Financial Management Manage budgets and supply future costs for planning purposes Hardware Asset Management Know what you have, where it is, who owns it and how much it costs Procurement Optimize acquisition of assets by aggregating requests and re-using existing resources Maximize the value of your IT investments 6

7 Proof points Our Internal Analysis uncovered $2M overspend on a single piece of Software. US Wireless service provider US energy company Before After 1 Day Compliance reports 6 Weeks Asset Manager deployment examples: Major bank to manage: 900K computers, 50 million SW licenses and 35 million SW installations. HP ES to support over 5.7 million hardware assets and 10s of millions of SW licenses. True-up costs $0 since Before, millions in penalties. Leading pharmaceutical company avoided purchasing $1 million in new software licenses by reallocating existing licensing 7

8 Billing????

9 Analysts view Chargeback/showback - the least utilized option, at only 19% deployment, is the most important for converting IT from a financial cost center to a business unit Aberdeen Group, Extend your Server Virtualization program to Enable Private Cloud, May 2012 If you want to get the best ROI out of your use of cloud services and platforms, you need to actively model the cost profile of your applications, monitor their resource use, and adjust accordingly Forrester, James State: Predictions For 2013: Cloud Computing, February 22, 2013 It s hard to incentivize business groups to share the infrastructure if you can t show them how much of it they are using, who is using it most, and whether they re saving themselves money by leveraging your private cloud. You should share this information in order to set off warning bells and prevent your private cloud from being underutilized Forrester, James Staten: "Onboard The Business To Your Cloud Strategy, May 17,

10 Terminology Showback and chargeback Showback Mechanism for providing IT management, departments, and corporate management with an analysis of the IT costs due to each department, without actually cross-charging those costs. Chargeback Mechanism where the requesting department is cross- charged ( Billed") for the costs that are directly associated to the infrastructure, data transfer, application licenses, training, etc., which they generate. Showback benefits include: Making departments aware of the IT costs they generate Providing visibility to senior management on the reasons behind the costs of IT Wikipedia: IT Chargeback and showback Chargeback benefits include: Making departments responsible in their usage Providing visibility to senior management on the reasons behind the costs of IT Allowing the IT department to respond to unexpected customer demand 10

11 HP Asset Manager/AM CloudSystem Chargeback Solution overview Enabling cost recovery for IT resources based on usage Chargeback and show back Cost transparency to understand true costs of cloud services Role-based cost control Simple to manage and easy to use Great user experience OOTB charge back rules and reports 5 11

12 HP Asset Manager/AM CloudSystem Chargeback Catalog Bill Financial system Provision Subscriptions Cloud service CSA/CSM Usage consumption Asset Manager / CloudSystem Chargeback 12

13 Main use cases A user of cloud service Needs to know his cloud costs and consumption Generates a monthly chargeback report Can drilldown in a personalized dashboard for details A department manager Closely monitors her staff cloud services and costs Receives a detailed billing report for the department Can monitor department costs, services, usage in her dashboard Receives automatic alerts before her budget exceeds An IT cloud service owner Monitors demand and costs produced by departments and users Can suggest price changes or introduce new services 13

14 Chargeback / showback Cloud is not for free make it visible Key capabilities Role-based showback reports Reports grouped by service or cost center Expense line generation and cost center allocation Billing based on variable cost parameters: one time, recurring, usage Key benefits Cloud costs visibility - understanding the utilization of IT resources and their cost drivers Driving effective use of the cloud services Enabling IT to offer new and enhanced services 14

15 Role-based cost control Cloud can reduce IT and business costs you must first understand cloud costs Key capabilities Budget management and real-time alerts Personalized dashboards Usage graphs Cost trending Drill down to detailed reports Key benefits Cloud costs transparency - enables managing and planning costs long-term and ongoing Better demand management and influence over LOB consumption behavior Enables governance policy implementation 15

16 Great user experience Cloud services are easy to obtain chargeback should be even easier Key capabilities Simplified screens with only necessary fields. What you see is what you need one-click installation OOTB charge back rules and reports Key benefits Ease of use 100% intuitive No user training required Easy to manage solution 16

17 Asset management in managed cloud environments Service Design HP Asset Manager Resource Management Content Chargeback / Showback Cloud System Automation 17

18 Executive Scorecard for the cloud Continuously evaluate the performance of anything as a service Utilization of network, storage, server and applications Automation (compliance, patches) Information and data traffic privacy and security incidents Vendor performance Financial perspectives of infrastructure and applications (budget vs. plan etc.) Availability and SLA performance 18

19 E2E user experience Charging Subscription 19

20 E2E user experience Embedded Scorecard UI in CSA 20

21 Thank You

22 Backup

23 Cloud Asset Management Chargeback and financial management Chargeback/showback Exposing price of service to business users (showback) or taking budget from end user department (chargeback) Benefits include optimization of service consumption (services are de-commissioned once they are no longer needed) prevents hoarding; ability to evaluate benefits of service based on financial metrics Profitability analysis Cloud service providers can track cost/revenue, usage rates and other metrics for the service and adjust pricing and service definition to ensure optimized use of resources Price comparisons End users and providers can evaluate value of the service against other alternatives 23

24 Cloud Asset Management Resource management Management of resource distribution Allows for uniform treatment of hardware, software and financial resources used in cloud environments Manage software compliance in cloud environments Supports quota management to cap resource usage Budget management Budget consumption trend analysis Budget based subscription control (quota) Procurement control Routing of requests for additional resources (procurement for hardware and software and financial approval for budget requests) 24

25 Cloud Asset Management Supplier management Management of contracts for cloud services Contract aggregation Allows services to be managed using uniform contractual terms, at uniform rates and with streamlined contacts Enables contract managers to optimize contract terms, including pricing Supplier performance tracking Performance tracking Price tracking 26

26 Thank you

27 Backup

28 Positioning Executive Scorecard and Asset Manager HP Asset Manager/CloudSystem Chargeback Resource Management Resource management for computing and financial resources (budgets, contracts, licenses, hardware) Procurement and other ITAM functions Showback for non-csa customers with ITAM focus Cost: $10k/$20k per user HP IT Executive Scorecard Business Analytics Business analytics business and financial performance, cloud usage, trend analysis and continuous improvement measurements for the organization Management reporting Pricing and showback for CSA customers Cost: $3k/$10k per user 29 HP software no longer promotes the partnership with CloudCruiser

29 Choosing the right product Which product should I sell? Executive Scorecard provides customers with business, usage, performance and financial analytics and continuous improvement measurements AM CSA Resource Management ITAM XS Pricing/Chargeback Analytics Management reports AM CSC Non-CSA Resource Management ITAM Chargeback CS Matrix Greenfield opportunities Asset Manager lets customers manage their computing and financial resources (hardware, software, contracts, budgets) 30

30 Competitive landscape Traditional ITAM competition ServiceNow Broad ITOM capabilities (including ITAM) Entering cloud management space BMC Market leader in ITAM Focusing on cloud solutions (Cloud Operations) IBM Cloud focused competitor (Smartcloud) Broad software portfolio Cloud competition Cloud Cruiser De facto market leader in cloud chargeback Focused on financial management Apptio Financial management focused competitor Vmware Focused on providing chargeback for Vmware environments 31

31 IT asset management Procure Receive Stock Deploy Know what you have, where it is, who owns it and how much it costs Optimize software license compliance for virtual and physical environments Request Monitor Optimize hardware and maintenance costs Re-use/ Dispose Retire IMAC Support Track IT service cost efficiency Built in support for all IT Asset Management processes from procurement and inventory management to IMAC to disposal 4% of asset cost is procurement, 96% is operational 32

32 Content Content HP Asset Manager Where is it? What is it? Who owns it? What is it worth? How old is it? Contract info? Is it being used? When was it last used? Who is using it? Is it compliant? Dashboards, Reports, Scorecards Procurement Hardware asset management Contract management Financial management Software asset management Business Information Sources 33

33 Portfolio management Track your IT assets throughout their lifecycle Problem it solves Tracking assets in spreadsheets or ERP is not robust Does not know the status of asset: is use, lost, broken Huge physical effort of tracking down those last 20% Overspend and waste Benefits Optimize IT spending Reduce the number of lost and unused assets Improve IT governance Solution: Tracking what assets exist, where they are located, who is using them, and how they are being utilized. Managing fiscally relevant physical and virtual assets throughout their lifecycle 34

34 Contract management Measure vendor performance and optimize supplier portfolio Problem it solves Paying maintenance contracts on assets that don t exist Does not know which vendors have the right to audit them for compliance and how Does not know whether the vendor is delivering on the SLAs Benefits Cost savings by cancelling maintenance contracts not needed Eliminating duplicate and non-standard contracts Measuring vendors performance Solution: Centralized tracking of all contracts: purchase, license, maintenance, lease Tracking performance for each vendor per their contracts Automatic management of the operational state of contracts in use 35

35 IT procurement Automate acquisition of IT components Problem it solves Not sure the best vendor was selected Cannot achieve the vendors deliver the value they committed to Measuring contract objectives against vendor delivery metrics Charging users for the procured assets 36 Benefits Streamlined procurement process Optimizing purchase costs by tracking vendor prices Measuring contracts objectives against vendor delivery metrics Solution: Automated request validation, approvals and fulfillment according to flexible workflow Tracking the status of requests and order lines Support return to providers Multi-vendor catalog management: comparing vendors references for the same products

36 Software asset management Optimize software licenses and mitigate compliance risk Problem it solves Software costs are too high while IT cannot explain why Vendor audits are frequent as well as penalties IT renews ELAs and maintenance contracts without negotiating Software licensing is very complex 37 Benefits Proactive and ongoing software licence compliance Avoiding over or under purchasing Reducing maintenance costs Optimizing the licenses and doing more with what you already have Solution: Automated and continuous inventory discovery Contract and entitlement management Automated reconciliation and compliance management Out-of-the-box content for 900+ software apps and SKUs

37 Financial management Technology is not for free make it visible Problem it solves IT cannot answer where does the money go? Losing cost control and visibility when moving to the Cloud Unpredictable IT resource usage and costs Complexity to allocate costs for shared IT resources 38 Benefits Enabling cost recovery for IT resources based on usage Cost transparency to understand true costs of IT/cloud services Driving effective use of IT/cloud services Enabling IT to offer new and enhanced services IT becomes true service provider Solution: Chargeback and showback Budget management and real-time alerts Cost management Cost allocation with ready-to-use rules and reports Cost analysts and service TCO

38 HP Software: Apps meet Ops 2015 Thank you Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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