Global Headquarters: 5 Speen Street Framingham, MA USA P F

Transcription

1 WHITE PAPER Optimizing Infrastructure: The Relationship Between IT Labor Costs and Best Practices for Systems Management Server Sponsored by: Microsoft Al Gillen Seana Dowling January 2007 Randy Perry Tim Grieser Global Headquarters: 5 Speen Street Framingham, MA USA P F EXECUTIVE SUMMARY CIOs are under tremendous pressure to reduce IT costs while improving services to the business and end users. To understand what it takes to be successful, IDC conducted a research project to determine what successful organizations are doing to achieve these goals. This research was conducted in 2005 and 2006 and focused on 141 for-profit enterprises in the United States with 1,000 to 20,000 PCs. Each organization was interviewed about its IT assets, IT staffing levels, and management practices. The research also captured metrics about the quality and timeliness of IT services. The end goal of the research was to identify best practices that could provide guidance to other firms desiring to improve IT operations. The research focused on three metrics of the IT infrastructure. Together, these three metrics describe the value equation for IT infrastructure:! IT labor cost is defined as the ratio of IT full-time equivalents (FTEs) to PCs multiplied by a fully burdened IT labor rate of $53/hour.! Service levels represent the quality and timeliness of IT services delivered to the business. Since service levels involve many variables, IDC chose the number of service desk calls per PC per year as a proxy for this category.! Business agility describes the IT department's ability to adapt to changing business conditions. As a proxy for business agility, IDC chose the time it takes to deploy a new application to the desktop.

2 Based on the IT labor cost per PC, IDC segmented the 141 organizations into the following groups: Basic, Standardized, Rationalized, and Dynamic. These four groups are collectively defined within a framework known as the Infrastructure Optimization Model (IOM). Microsoft was the lead developer of the IOM, an operational benchmark for gauging the optimization of a company's IT infrastructure.! Basic organizations are the least efficient performers and have high costs and average service levels and agility. These organizations typically use few of the best practices defined in this paper.! Standardized organizations have somewhat better IT costs with similar service levels and agility when compared to Basic. These firms leverage some of the easier-to-implement best practices.! Rationalized firms have very low IT labor costs and show modest improvements in service levels and agility compared to the two lower groups. These organizations use many IT best practices and automate and standardize wherever possible.! Dynamic organizations shift the focus from cost reductions to enabling business with optimal service levels and agility. Dynamic organizations may even choose to accept best practices that increase costs to optimize service levels and agility. Few Dynamic organizations exist today, largely because many of the prerequisite technologies are not available from a single vendor, and must be assembled from an array of technologies from multiple vendors. Note that no organizations that qualified as Dynamic were interviewed for this research. Key findings of this study by IOM level per PC per year: IT labor costs! Basic: $1,320! Standardized: $580! Rationalized: $230 Service levels (number of service desk calls)! Basic: 8.4! Standardized: 8.5! Rationalized: 7.7 Business agility (time to deploy a new business application evaluation, procurement, and deployment)! Basic: 5.4 weeks! Standardized: 5.2 weeks! Rationalized: 4.3 weeks 2 # IDC

3 An organization's IOM level is determined by the adoption rate of best practices. Best practices are optimized IT processes supported by technology that reduce cost and/or improve service levels and agility. SYSTEMS MANAGEMENT SERVER BEST PRACTICES This paper examines the relationship between IT labor costs and best practices for Microsoft Systems Management Server (SMS). SMS is a server-based management software product for change and configuration management of PCs. SMS is designed to reduce labor costs through automation by eliminating the need to visit individual PCs to perform management functions such as PC hardware and software inventory and asset management, software distribution and updates, and patch management. In this research IDC evaluated more than 20 potential best practices and identified three, as follows, that are consistently used by top-performing IT departments for optimizing Windows PC management using Microsoft Systems Management Server, together with an associated cost savings in terms of dollars saved per PC per year.! Automated Packaging Tools and Software Distribution (savings of $120/PC). Use of tools to maintain software inventories, automate software packaging, and automate software distribution.! Single Systems Management Tool (savings of $110/PC). Use of a single software tool for managing software inventory, hardware inventory, and automated software distribution.! Centrally Managed PC Applications (savings of $70/PC): Keeping deployed PC applications standardized by generating software inventory reports for auditing versus standards and de-installing non-compliant software. In this research, Basic organizations used few, if any, of these best practices. Basic organizations should move to adopting the Automated Packaging Tools with Software Distribution best practice. Basic firms should also focus on adopting the Single- System Management Tool best practice for managing hardware and software inventory and performing automated software distribution. Standardized organizations will typically have adopted the first two best practices. In addition, standardized organizations are advised to adopt the Centrally Managed PC Applications best practice. Rationalized organizations frequently have all three of the above best practices identified and should focus on implementing management functions that integrate SMS change and configuration management capabilities with other management functions such as performance and availability management and problem management IDC #

4 SITUATION OVERVIEW This paper is one in a series of IDC White Papers based on research across a total of 141 North American organizations. The SMS study was based on a subset of 57 organizations interviewed about their systems management environment and having 1,000 to 20,000 PCs in there IT infrastructure. Data collected from each organization participating in the study was used to categorize the relative level of IT optimization and the sophistication of their practices for deploying and using IT. The companies could then be mapped into the Infrastructure Optimization Model (IOM), based on their IT utilization and sophistication level. The purpose of this mapping exercise is to group companies together to determine the most commonly used best IT practices and to establish a correlation between the best practices and IT labor savings realized. Since looking at costs in a vacuum provides an incomplete picture, service levels and agility were also evaluated. Service levels are the quality and timeliness of IT services. Service levels have many descriptors, including the number of service desk calls, service desk call resolution times, the quality of hardware and software, and the level of physical and data security provided. Since many of the service-level metrics are difficult to track and quantify, the numbers of service desk calls per PC year is used as a proxy to describe the larger system. Integral to infrastructure optimization is another significant benefit, business agility, which is the ability of an organization's IT infrastructure to adapt to changing business conditions and technology requirements. The study found a number of factors that contribute to agility, including the overall IT optimization, the consistency of desktop operating system selection, and the management practices and tools in place to both support and update desktop systems with patches, fixes, and new software deployments. To determine an organization's optimization level, IDC examined the staffing patterns and IT labor levels across organizations in similar industries and of similar size. We then stack ranked each organization by its IT labor costs for day-to-day desktop operations. We grouped organizations into Basic, Standardized, and Rationalized levels. This allowed us to identify common behaviors among organizations that performed well and to contrast them with the behaviors of organizations that performed less well. The common behaviors of our best performers provided our definitions of key best practices. Figure 1 introduces the concept of the IOM in graphical format. 4 # IDC

5 FIGURE 1 Microsoft's IOM Model Source: Microsoft, 2006 This White Paper is one of a portfolio of papers that cover Systems Management Server, Windows Desktop, Active Directory, Information Worker Infrastructure, and Windows Server. Another paper will cover the overall infrastructure optimization model. Those papers include:! Optimizing Infrastructure: The Relationship Between IT Labor Costs and Best Practices for Managing the Windows Desktop (IDC #203482, October 2006)! Optimizing Infrastructure: The Relationship Between IT Labor Costs and Best Practices for Identity and Access Management with Active Directory (IDC #204221, November 2006)! Optimizing Infrastructure: The Relationship Between IT Labor Costs and Best Practices for Managing Windows Servers! Optimizing Business Productivity Infrastructure: The Relationship Between IT Labor Costs and Best Practices for Managing Collaborative and Messaging Systems! Optimizing Infrastructure: Generating Value Through Improving IT Operations with Best Practices 2007 IDC #

6 THE IMPACT OF INFRASTRUCTURE OPTIMIZATION ON PC COSTS In analyzing the impact of best practices for PC systems, IDC used IT labor costs associated with supporting PCs as a major metric. IT labor costs include items such as service desk staffing costs, desktop PC engineering costs, and ongoing PC management using directories and systems management tools. The costs are derived through an analysis of IT full-time equivalent staffing. IT labor levels are more directly affected (positively and negatively) by IT policies than any of the cost elements of total cost of ownership, which includes hardware, OS, middleware, applications, services, and IT labor. Figure 2 shows IT labor costs/desktop/year associated with desktop systems in use within the organizations studied. The figures cover staffing costs associated with evaluation, acquisition, hardware and software configuration, image management, hardware maintenance and software deployment, application management, security, and more. The IT labor costs fall by 56% from a Basic environment ($1,320/PC/year) to a Standardized environment ($580/PC/year) and then by an additional 61% from Standardized to Rationalized ($230/PC/year). These cost reductions result from the streamlining of IT operations through the use of best practices and more common software stacks across desktop systems. FIGURE 2 Annual IT Labor Cost Comparison by IT Optimization Level Number of respondents = 141 Source: IDC, # IDC

7 The labor savings potential is significant for an organization that moves from a Basic to Rationalized environment over 82%. However, IDC recognizes that such a quantum leap is not practical to implement quickly, and that there would be significant investment required. The up-front costs would need to be rationalized through return-on-investment (ROI) calculations. However, the savings appear great enough that a viable ROI story should be achievable for most organizations. In reality, infrastructure optimization is not a single quantum IT advancement, but rather an ongoing process with a series of smaller steps. For example, Basic organizations should first become Standardized and then pause to allow their infrastructure and best practices to stabilize. Then they should focus on getting to the next level. IDC's definition of the Basic category incorporates a wide range of organizations that other studies may have discounted as outliers. As a result there is wide variance in the Basic category and generally higher costs compared to previous studies. We believe the current study, being broader and more rigorous, captures a broader range of companies and is thus more representative of the market than previous studies. The following factors are potential contributors to the broad variations found in the Basic classification:! The IDC study included a number of companies that generate revenue with their IT infrastructure and are thus more concerned with availability and capacity, and less concerned with costs, than the average commercial enterprise.! A number of highly complex and distributed companies were included that experienced above-average support costs.! Because it is the entry category, there are no minimum requirements for attaining a Basic rating. Companies that develop cost-reducing best practices quickly move into the Standard level. We believe that the average costs per client would rise with the number of companies included in the study because the leastcarefully managed organizations would fall into this classification. Table 1 presents a composite view showing the correlation between IT costs, service levels, and business agility for three levels of IT optimization. IT costs are expressed in terms of IT labor costs per desktop per year, the metric used to compare service levels is the number of calls to the service desk per PC per year, and business agility is measured in terms of the number of months to deploy a new application to 90+% of the organization. The service levels presented in Table 1 are defined as the quality and timeliness of IT services received by the users. Like agility, there are many drivers for service levels. In this research, the number of service desk calls was used as a proxy for the larger system. A system that is more closely managed and configured in such a way that end users cannot create unnecessary problems for themselves leads to a desktop system that offers higher levels of availability and most likely runs a known and predictable configuration, thus reducing the potential for conflicts when rolling out 2007 IDC #

8 patches, fixes, service packs, and, of course, new applications. More uptime for the end users leads to better overall productivity. Business agility is the ability of the IT department to adapt to changing business requirements. IDC has chosen the time to deploy a new application as an indicator of business agility. TABLE 1 IT Optimization Levels and Related Costs Basic Standardized Rationalized IT costs (IT labor costs per PC per year; excluding software, hardware costs) $1,320 $580 $230 Service levels (number of service desk calls per PC per year) Business agility (months to deploy new application) n = Notes: Lower values for IT labor costs result in cost savings for companies. IT labor costs are based on a fully burdened labor rate of $100,000 per year. Service levels show the number of hours unavailable over the course of a year. Smaller numbers represent higher service levels. Business agility is represented as the time to deliver a new application in months and includes evaluation, application development, procurement, testing, packaging, deployment, and troubleshooting. A smaller number represents a higher agility. Source: IDC, 2006 As shown on Table 1, there is a directional consistency and a tangible cost savings associated with moving from a Basic IT environment toward a Rationalized environment. The companies in the study fell along a continuum from Basic to Rationalized but, on average, companies in a Rationalized environment enjoyed 60% lower IT labor costs, 9% fewer service desk calls, and 17% faster deployment of business applications compared to Standardized companies, and 83% lower IT labor costs, 8% fewer service desk calls, and 20% faster deployment of business applications compared to Basic companies. Organizations typically don't begin to focus on service levels and agility until the Rationalized and Dynamic levels. 8 # IDC

9 Relationship of Best Practices for Systems Management Server to IT Labor Costs IDC examined the IT environment, strategies, and activities related to managing Windows desktops of 57 organizations with 1,000 to 20,000 PCs in commercial industries. All 57 participants had deployed SMS and used it to manage at least 50% of their PCs. From its research, IDC has determined that organizations that used SMS in conjunction with these three best practices significantly reduced their labor to manage Windows PCs compared to those organizations that used SMS without these best practices. TABLE 2 Best Practices and Related Cost Savings Best Practice IT Staff Cost Savings per PC per Year Use of Packaging Tools with Automated Software Distribution $120 Single-System Management Tool $110 Centrally Managed PC Applications $70 n = 57 Source: IDC, 2006 Best practices are IT process improvements that reduce costs, improve service levels or increase agility. While the best practices in this paper focus primarily on cost, other best practices could optimize the other variables in the value equation. In some cases, a best practice may actually increase cost in order to improve some other business driver. For example, implementing smart cards on PCs increases costs but also improves service levels by reducing organizational risk. The three best practices discussed in this section are optimized on cost but also have implications for service levels and business agility. In this section, IT labor costs are quantified, while service levels and agility are evaluated qualitatively. It should be noted that all financial metrics in this section are averages based on the 57 organizations studied. Standard deviations are large and each organization will have its own unique benefit profile. In general, 75% of organizations should expect to receive a benefit that is plus or minus 30% of the stated metrics. The sections that follow, including Figures 3 6, drill more deeply into these bestpractice areas and discuss the reasons for the positive benefits shown in Table IDC #

10 Packaging Tools & Automated Software Distribution Problem and Challenge Business is dynamic. IT departments need to provide users with applications to support new business processes and opportunities. Security threats are also dynamic as new vulnerabilities are discovered in PC operating systems and applications. IT departments must respond quickly and effectively to these threats before corporate assets and intellectual property are put at risk. FIGURE 3 Packaging Tools & Automated Software Distribution Source IDC, 2006 Delivering applications and patches is challenging for some organizations, even when automated tools are available. Automated tools are more effective if embedded in solid IT processes. Organizations find it challenging to implement solid IT processes for a number of reasons. Some organizations have a variety of different systems management tools with various capabilities, each requiring different processes. Others have obsolete tools with limited functionality that cannot support optimal processes. Some organizations are not properly trained on the tools they have purchased and are unable to leverage their investment. Best Practice Organizations should implement an end-to-end solution for automated software and patch distribution. Automated hardware and software inventories should be used to determine which PCs are capable of running new applications and which PCs require patching. Software distribution should be based on a combination of inventory information and group membership. Groups should be setup based on common business requirements. Determining which PCs get patched should be decided by the absence of the required patch and potential conflicts with other software. PCs with a conflict should be identified, excluded from the automated process, and dealt with separately. 10 # IDC

11 Packaging tools should be used to help create an automated software distribution system. Lab testing should be used to test the packages before deployment. Taken together, the combination of these processes can significantly reduce cost and improve service levels and agility. IT Labor Impact Organizations that used this best practice saved on average $120 per PC compared to those organizations that used Microsoft Systems Management Server with less well-defined processes. Organizations that use this best practice can expect to reduce costs in desktop engineering and support and service desk. Desktop engineering and support can benefit from packaging tools that reduce the amount of time spent preparing applications for deployment. The service desk can benefit from reduced call volumes coming from improved application-deployment success rates. Success rates can be improved through predeployment testing and the use of hardware and software inventories as part of the selection criteria for determining which PCs should receive the application. The service desk will further benefit from fewer calls resulting from failed patching. Patch regression testing and installations based on software inventories can greatly improve success rates. Service-Level Impact This best practice will improve software distribution and patching effectiveness. As a result, the user experience will improve. Users will make fewer calls to the service desk and experience less downtime. Improved security patching will lower the organization's risk exposure. Agility Impact The ability to effectively deploy software and patches will improve agility. Packaging tools will decrease the amount of time to prepare the application for the deployment tools. Predeployment testing and distribution based on group membership and asset inventories will ensure users are up and running as quickly as possible. Technologies Required! Systems Management Server 2003 # Hardware inventories # Software inventories # Automated software distribution! Wise or InstallShield Packaging Tools Today, Microsoft provides some but not all of the technologies required for this best practice. Microsoft provides the automated software distribution capabilities through Microsoft Systems Management Server. Third-party vendors, such as Wise or InstallShield, provide software application packaging tools IDC #

12 Microsoft's acquisition of Softricity may provide an interesting permutation of this best practice. Microsoft has announced that it will provide SoftGrid as part of the Microsoft Desktop Optimization Pack for Software Assurance planned to be available in early SoftGrid makes it possible to stream applications to PCs through virtualization. This eliminates the packaging requirements associated with automated software deployments with Systems Management Server. Users will receive the application quickly with no risk of application or configuration conflicts that could cause and installation failure. Who Will Want This Best Practice? There is little or no downside to this best practice and all organizations will find it beneficial if they have the infrastructure to support it. Standardizing on a Single Systems Management Infrastructure Problem and Challenge Systems management tools are cost-effective ways to track assets and to deploy software and patches. They are critical to keeping PCs secure and for protecting intellectual property through quickly deploying patches. However, many organizations are likely to use multiple sets of management software tools to perform a variety of functions, such as event management, performance management, and service desk, in addition to change and configuration management, or to manage a heterogeneous IT environment. As a result the systems management infrastructure can be time consuming and labor intensive to operate, and effectiveness is reduced. Costs go up because of duplication and complexity. Complexity increases as disparate systems need to be integrated. One example is asset management, where inventories have to be consolidated to validate software licensing agreement compliance. The best practice consists of a common organizationwide approach to system management, with a common toolset from a single vendor. Many organizations find it challenging to implement a single systems management tool infrastructure that is modular and allows for the seamless integration of new functionalities. A combination of IT governance issues and deployment of heterogeneous systems can make it difficult for some organizations to develop an effective strategy. These organizations need to rationalize how IT decisions are made so that enterprise architecture decisions are made by the CIO's office with input from local IT departments. 12 # IDC

13 FIGURE 4 Single Systems Management Infrastructure Source: IDC, 2006 Best Practice Organizations should develop an organizationwide systems management tool strategy based on input from local IT departments combined with central direction from the CIO's office. The strategy should engineer complexity out of the environment and make it possible to add new functionality in modules. Central IT should set standards for the organizations but allow local IT to add modules that are necessary for the business environment. The standards provide guidelines on what modules can be purchased and how they must be implemented. Utilization of common integrated toolsets from a single management vendor offers the most direct path to achieving a rationalized system management infrastructure. IT Labor Impact By using an organizationwide systems management architecture, organizations can expect to save on average $110 per PC. The savings will occur primarily in the staffing responsible for managing systems management tools at the departmental level. Many tasks that are duplicated with many tools will be performed once by a central team. This includes application packaging, software/patch deployment testing, and asset management reporting. Central IT will benefit further through less time spent reconciling asset information from disparate information provided by different departmental teams. Service-Level Impact Systems management software is generally transparent to users. With the exception of small reduction in service desk calls due to reduced complexity, the user experience will change little from this best practice. Agility Impact Organizations that take advantage of this best practice will be able to improve business agility. Since less duplicative work is done, applications and patches can be delivered more quickly and accurately. Asset information and asset status can also be made available more quickly thus improving decision-making licensing compliance, 2007 IDC #

14 and general operations. The common architecture and standards will allow local IT departments to more quickly add functionality. This will allow the organizations to more quickly adapt to new business requirements. Technologies Required! Systems Management Server 2003 # Hardware inventory # Software inventory # Automated software distribution # SMS reporting # OSD deployment pack Microsoft recognizes that it is challenging for many organizations to integrate systems management tools. To address this need, Microsoft is consolidating its systems management tools into a single architecture and brand known as Systems Center. This approach is designed to make adopting this best practice easier. The System Center portfolio and road map includes: Systems Management Server, Systems Center Capacity Manager, Systems Center Configuration Manager, Systems Center Essentials, Systems Center Operations Manager (formerly known as Microsoft Operations Manager), Systems Center Service Desk, Systems Center Virtual Machine Manager, Windows PowerShell, System Center Data Protection Manager, and System Center Reporting Manager. Microsoft will likely continue to add to this suite through new products and acquisitions. Who Will Want This Best Practice? There is little or no downside to this best practice. It is suitable for all organizations. Centrally Managed PC Applications Problem and Challenge An unmanaged PC application portfolio increases IT labor costs and makes the organization vulnerable to security risks and for being out of compliance with software licensing agreements. When users are free to install whatever software they want without involving IT, PCs become unique and no longer conform to standards. This increases the amount of time required to resolve issues at the service desk. Unauthorized applications also generate additional service desk calls. A lack of a standard configuration also makes PC upgrades more problematic. Extra effort is required by the IT staff to test for application compatibility for applications identified through systems management tools. For the applications that are not identified, a percentage will either be incompatible with the upgrade or create a conflict requiring the IT team to troubleshoot. 14 # IDC

15 FIGURE 5 Centrally Managed PC Applications Source: IDC, 2006 An uncontrolled application portfolio also puts the organization at risk. If users have complete freedom to install applications of their choice, some of the applications will violate security standards. A good example is peer-to-peer file-sharing programs that leave PCs vulnerable. Also, if allowed total freedom, users will install software from home or from peers without taking into account the licensing agreements. Ultimately, the organization is legally liable for whatever gets installed on its PCs regardless of whether the user was authorized to install the software or not. Taking away the user's ability to install software creates its own set of problems. The PC became a powerful business tool largely by empowering the user. Users need the ability to configure their PCs to support their business needs. This includes the ability to install new software applications. Politically it is also difficult to take back a capability that users already have. For these reasons, IT departments have found it difficult to implement a policy that prevents users from installing software. Best Practice There is a win/win solution to user-installed software. Organizations can use a combination of IT processes and technology to monitor what the users are doing, evaluate the impact on the organization, and take action only when the business is put at risk. This best practice has the following parts: First, systems management tools take regular software inventories. Second, the software inventories are automatically compared to an authorized application list and licensing agreements. When an application is on the authorized list, the user is permitted to keep it. When it is not, a process is kicked off in IT to make a decision on whether or not to add the software to the approved list or require its removal. Third, if the application must be removed, the user is sent an notifying them that they must remove the offending application. Finally, if the user does not take the required corrective action, the systems management software will remove the application automatically. This best practice balances user freedom against the needs to control the PC application portfolio IDC #

16 IT Labor Impact On average, managing the PC application portfolio reduced IT labor costs by $70 per PC. The benefit will impact three parts of the IT organization. The service desk will receive fewer calls and will be able to resolve the ones it receives more quickly. Deskside support will be reduced, as fewer PCs will require re-imaging from unresolvable calls to the service desk. Lastly, when it comes time to upgrade the PC operating system, fewer applications will require compatibility testing. Further, when the PCs are upgraded, fewer upgrades will fail, reducing both the time to do the upgrade and calls to the service desk. It is important to note that this best practice overlaps the Centrally Managed PC Settings and Configurations best practice from the IDC White Paper Optimizing Infrastructure: The Relationship between IT Labor Costs and Best Practices for Managing the Windows Desktop. These best practices are not additive since they accomplish the same objective through different means. Service-Level Impact This best practice dramatically improves service levels. PCs that adhere to standards will have fewer applications and the applications that are installed will be stable with fewer conflicts. This will reduce downtime and calls to the service and will improve the user experience. Those that use this best practice instead of the Centrally Managed PC Settings and Configurations best practice will also see a reduction in service desk calls since users can still install software on demand. With the more restrictive best practice, users typically call the service desk when they need an application that is not provided by the system. This best practice will eliminate these calls. Agility Impact When the application portfolio is managed, IT organizations can more quickly deploy new applications because of simplified testing and fewer application conflicts. Also, operating systems can more quickly be upgraded for the same reasons. Key Technologies Required! Microsoft Systems Management Server 2003 # Software inventories # SMS reporting # Software distribution! Windows software restriction policies Organizations may also want to consider using software metering as part of this best practice to better understand what applications users are using and how often. Applications that are seldom used should be removed from the PC inventory to reduce licensing costs and to minimize complexity. Software metering was not benchmarked in this research since too few of the organizations surveyed used this technology to estimate its impact. 16 # IDC

17 Microsoft has made two recent acquisitions that support this best practice. In September of 2006, Microsoft acquired AssetMetrix. Microsoft has announced that AssetMetrix will be provided to SMS 2003 customers through a service pack and will provide a software catalog and more sophisticated reporting. The catalog will give IT departments an application database to compare user-installed applications against. This will aid in the process of making a decision on whether or not to add the application to the approved list. The upgraded reporting will help IT organizations better implement the auditing process. In September 2006, Microsoft also acquired Softricity, which allows IT to stream applications to PCs in a virtualized environment. The user gets the applications they need quickly without actually having them installed on the PC. This virtually eliminates application conflicts and will reduce service desk calls. It will also eliminate a significant portion of application-compatibility testing during an operating system upgrade. Softricity will be made available to organizations as part of the Desktop Optimization Pack for Software Assurance. Who Will Want This Best Practice? This best practice will be desirable for most organizations with the infrastructure to support it. A small number of organizations may choose not to use this best practice for political reasons, where users are granted 100% autonomy regardless of the cost to the organization. Systems Management Server: Other Significant Findings In addition to the cost savings, service level, and agility benefits directly associated with the three best practices described in this white paper, several other significant findings emerged as the result of this study.! As an overall major finding in this study, the use of SMS dramatically improves agility, reducing the number of days needed to deploy a critical application to 95% of PCs from 13 days without SMS to 4 days with the use of SMS.! In another finding based on the study, the number of days needed to inventory hardware and software assets for PCs was reduced from 19 days without SMS to 3 days with the use of SMS. These agility benefits are not tied to a specific best practice, but are based on using SMS to perform the overall functions. For example, the study did not measure any additional benefit in agility that may occur due to the combination of software packaging tools with automated software distribution best practice beyond the benefit already gained from using SMS to perform the functions IDC #

18 THE ROLE OF SMS IN PC DEPLOYMENTS SMS supports a number of key software distribution and management functions for PC deployments. Key areas include distribution and update of software applications, software asset inventory, and patch management. One major software distribution function is the use of SMS for deploying Windows operating systems to PCs. This requires the use of the SMS OS Deployment Feature Pack (OSD), which is designed to reduce the cost and effort of migrating software and operating systems to new or existing PCs. OSD helps Windows administrators create a Windows PC OS image and deploy it in an automated manner, and it also helps centralize tracking and status reporting for OS deployments. SMS can also play a key role in the planning process for OS deployments by providing accurate inventory and usage metrics. To further reduce the cost of deploying a new version of Windows, organizations should consider using a "thin" image strategy. In a thin image strategy, one image is created per hardware configuration and then used organizationwide. This is opposed to a "thick" image strategy, where IT creates many business unit specific images with localized settings and applications. Once the "thin" image is deployed, directories, policies, and systems management software are used to customize the image based on group membership. This includes configuration settings and applications. SMS supports a "thin" image strategy by providing software distribution by group membership. Reducing the number of images can significantly reduce both deployment and on-going support costs. SMS Deployment Costs by Installation Scenario SMS deployment requires servers for SMS software and SMS databases, and software agents to be deployed to each managed PC. Figure 6 shows the costs associated with deploying SMS for three scenarios: new installation, upgrade from a previous version of SMS, and migration from a competitive product. The cost to deploy SMS will vary greatly depending on the architecture chosen. The architecture developed will depend on the number of PCs, the number of sites, distribution of sites, available network bandwidth, IT staffing allocation and distribution, system redundancy, product experience, and the amount of management PCs require to support business objectives. The following assumptions were used in Figure 6: Hardware costs include only the cost of new servers to deploy SMS (at an average cost of $5,500 per processor) to support an average of 5,000 users. Software costs include the configuration management license (CML), which permits PCs to be managed by SMS at an average cost of $33 for each managed PC; the CMLs for SMS servers at an average cost of $530 for each SMS server; and SQL servers to support SMS databases at an average cost of $10,614 for each SQL server (2-processor license). 18 # IDC

19 FIGURE 6 SMS Implementation Costs ($) New Upgrade Competitive Hardware Software IT Staff Notes: Software costs: SMS CML $38, SMS server $530, SQL server $10,614 Hardware costs based on 5,000 users. No hardware costs with upgrade Source: IDC, 2006 IT labor costs to implement SMS include project management, design and configuration, testing, piloting, deploying SMS infrastructure, and performance and optimization, among other areas. IT labor costs to deploy SMS range from an average of just over $16 per PC for an upgrade from a previous version of SMS to just under $30 per PC for a migration to SMS from a competitive product. Total costs for deploying SMS range from an average of just under $68 per PC for an SMS-to-SMS upgrade, to a high of $113 per PC for a migration to SMS from a competitive product. Major functions addressed by SMS for managing the PC life cycle are illustrated in Figure 7. For more information on PC life-cycle management, see the related IDC White Paper Optimizing Infrastructure: The Relationship between IT Labor Costs and Best Practices for Managing the Windows Desktop for additional details IDC #

20 FIGURE 7 SMS Functions in PC Life-Cycle Management Deploy Software and Hardware - Install new applications - Configure servers/pcs/pdas Monitor and Repair - System stability - Version compliance - Patch installations SMS Server System Administrator Migrations/Upgrades - App v2.x to v3.x - Win2K/WinXP to WinVista - Data files Source: IDC, 2006 Recommendations for Organizations Wishing to Optimize Infrastructure Using Systems Management Server Based on the research presented in this study, IDC offers the following guidance for organizations that are interested in optimizing their Windows PC change and configuration management functions through best practices based on the use of Microsoft Systems Management Server. General Recommendations The potential to reduce IT labor costs is real and applicable in varying degrees to many IT organizations using Windows PC operating environments. As shown by the study data, the use of SMS is a key technology requirement for Windows change and configuration management best practices as well as for Windows desktop best practices. Adopting best practices along with using SMS product technology yields direct benefits, including quantifiable cost savings, detailed in this white paper, as part of a more efficient management strategy. Based on study data, the combination of use of SMS tools with best practices has been demonstrated to yield specific cost savings results that amount to a total of $300 per PC when all three best practices are adopted. Further, implementing best practices as part of a larger infrastructure optimization initiative has the potential to deliver efficiencies as the optimization level increases. 20 # IDC

21 The data presented in this IDC research indicates how broad the spectrum is between companies operating at the Basic level and those at higher levels of infrastructure optimization. Infrastructure optimization is a continuum driven by the adoption of IT best practices, and every company can improve dramatically through the implementation of policies and procedures automated through technology. Basic Organizations Customers that fall into the Basic level of the IT optimization model do so for one of several key reasons, which can be readily addressed.! Lack of use of Automated Software Tools for change and configuration management functions. Basic organizations will typically not be using SMS or other automated tools for asset inventory, software distribution, and patch management.! Lack of use of best practices. A subset of the organizations studied has no policies in place for change and configuration management, such as Centrally Managed PC Application applications. They may also have no enforcement processes in place to guarantee policies are followed and are more likely not to enforce patch management practices. Organizations that fail to manage PCs in a consistent way leave themselves open to expensive, reactive IT management that disrupts or prevents well-orchestrated IT deployments.! Inconsistent use of best practices. Organizations rated as Basic, which may adopt some suitable best practices, often stop short of applying them pervasively across their installed base of Windows PCs. This means they will not realize some of the cost and agility savings that most Standardized and Rationalized organizations will experience. Using best practices is a step in the right direction, but until the practices cover the vast majority of an organization's installed base of Windows PCs, IT departments will be supporting a combination of ad-hoc and best practice driven management. This approach has the distinct potential to be more expensive than either a pure ad hoc or fully managed approach. Guidance for Basic Organizations The practices reviewed in this analysis suggest that the following best practices should be considered by Basic organizations. They should strongly consider adopting software tools such as SMS to help automate PC change and configuration management functions.! Moving toward a managed environment that helps reduce the number of operating systems and application images being supported should be a shortterm goal of Basic organizations. Utilize automated software tools such as SMS to control the deployment of patches, fixes, system, and application configurations.! Move toward a standard set of software applications, with standardized configurations and settings. Utilize software tools such as SMS for asset inventory and reporting functions to provide information to enforce standardization IDC #

22 ! Basic organizations should adopt more widespread use of automation capabilities available in change and configuration management software tools, such as using automated SMS capabilities for software distribution and patch management. Basic organizations are also advised to implement the use of packaging tools with automated software distribution best practice, described earlier in this white paper.! Basic organizations are likely to use multiple sets of management software tools to perform a variety of functions, such as event management, performance management, and service desk, in addition to change and configuration management. Basic and Standardized organizations are advised to consider adopting the best practice that standardizes on a single vendor for management toolsets to take advantage of integration, common user interfaces, and reduced management complexity. Standardized Organizations Standardized organizations are on their way toward a more optimized infrastructure, and tend to be far more consistent in applying and enforcing standard approaches to PC software procurement and software distribution, and in following a strategic internal roadmap for IT deployments.! Process is typically used and enforced in an organization applying standardized IT practices, especially the concept of Centrally Managed PC Applications settings and configuration. However, most Standardized organizations have been unable to establish enough consistency, standardization, and administration restriction in their PC infrastructure. Uses of automated asset inventory tools is recommended to track and report status of PCs and provide the basis for more consistent centralized management.! Automated Software distribution sounds like a natural best practice, but a surprising portion of the companies interviewed in this study while having such tools deployed do not use them in a widespread or consistent manner. Indeed, study findings show that the effectiveness of automated tools for software distribution increases dramatically with widespread use and when tools are applied to the vast majority of PCs in the enterprise. Guidance for Standardized Organizations The practices reviewed in this analysis suggest that the following best practices should be considered by Standardized organizations:! Focus on extending management technologies that automate the process of asset management, system configuration, and software distribution to all PC assets in the enterprise.! Set a goal for use of a finite number of operating system images. This approach will have immediate effects on lowering staffing costs associated with multiple images that may be in use; longer term, it will set the stage for moving to a 22 # IDC

23 Rationalized environment. Use the SMS OSD pack to create standardized OS images for distribution to PCs.! Work to limit or eliminate the ability of users to install their own software and applications but only after tools are in place within the organization to automate this process. Use SMS asset inventory and reporting functions to monitor status and provide the basis for enforcing compliance with these policies.! Ensure that comprehensive PC security is fully leveraged and is enabled with automated tools for patch management, such as SMS. A comprehensive security policy may be expensive to deploy initially, but once in place, will be comparatively easy to maintain and will pay back with a significant reduction in fire drills associated with reactive IT management to outbreaks of viruses, worms, and other vulnerabilities. Utilize SMS to inventory patch status and apply patches as needed to comply with security requirements.! Standardized organizations are advised to fully adopt the Centrally Managed PC Applications best practice. Standardized organizations are capable of centrally managing the specific software applications that are supported by IT, along with controls to assure desired configurations and settings are maintained. Asset inventory and reporting capabilities in SMS are key technologies that can be used to facilitate this best practice.! Develop a long-term strategy for systems management based on tools that share a common infrastructure. The CIO should initiate this strategy with input from local IT groups. Local IT groups should be empowered to purchase the tools they need, but do so within a framework that minimizes integration issues and duplicated resources. Rationalized Organizations Rationalized organizations are on the leading edge of IT optimization and can be likened to the high-performance version of their counterparts in the Standardized category. However, even within Rationalized organizations, there is usually room for further use of best practices and more complete utilization of tools and process.! Rationalized organizations are at a critical decision point: will their business model benefit from pushing IT management practices into the domain of the Dynamic classification, or does such a move extend their IT optimization past the sweet spot of minimizing costs? IDC analysts believe that moving to a Dynamic environment is more about increasing IT business agility than it is about driving down costs. Indeed, moving to a Dynamic model could actually cost more since some centrally managed IT functions could be pushed out to the business units to increase responsiveness, resulting in a loss of economies of scale.! More of a good thing is good. Most Rationalized organizations are likely to have some work left to reduce the diversity of applications, operating systems, and hardware in use. Reducing these variables can help lower costs further and ensure a rock-bottom cost structure IDC #