Mark O Loughlin IT Alliance

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1 Mark O Loughlin IT Alliance

2 Cloud Service Management A New Beginning What You Need to Know Mark O Loughlin Copyright Red Circle Strategies 2014

3 Introduction Service Management Principal Consultant - Service Management - Service Architect / Designer Author The Service Catalog ITIL Master ITIL Trainer Director itsmf Ireland Director Cloud Credential Council Member of WG25CA (ISO/IEC workgroup) Author Cloud Service Management - Course

4 Organizations

5 Promote the Message #ITSM14 Blog

6 Agenda The utility of cloud computing The ability to adopt cloud successfully The capability of using cloud

7 The Utility of Cloud

8 Utility Power Utility Model In the 1800-early 1900s each factory built a power plant beside it. Alternating current allowed for long distance power transmission Throughout early 1900s internal power plants were outsourced to utility power providers

9 What is Cloud Cloud computing is seen as a new way of delivering computing resources Cloud computing is not new technology Cloud computing is the delivery of computing as a service, rather than a product, where shared resources are provided as a utility over a network (internet)

10 Every Minute of the Day Are you In the Cloud? What are you using? Many people are In the Cloud without realising it. 10

11 Cloud is Disruptive Cloud is changing how: IT services are delivered Businesses offer services to customers Customers interact with business New cost models are being introduced -OPEX is replacing CAPEX spend -New routes to market, quicker New approaches to IT & Business management required

12 Cloud is Disruptive The business will expect faster, quicker, cheaper, better, agile. How will IT service providers adapt to the changes cloud is introducing? What can you deliver with cloud? How will you manage the development and operation of cloud based services? Are your processes agile? See first point.

13 The Utility of IT How will you adapt to the utility of cloud? How will your customers adapt to the ability of cloud?

14 Utility Cloud War Amazon Google Microsoft Cloud war is on Prices are dropping Interesting fact. Amazon has yet to make 1 profit from cloud

15 The Ability of Cloud

16 Cloud and ITSM Convergence Updated IT & Business practices will be required to realise and manage the benefits from cloud computing

17 Benefits of Cloud Even though cloud is disruptive there are many benefits Scalable On-demand Pay-per-use Elastic Less CAPEX, more OPEX Quicker to implement IT services Flexibility Scalability Dynamic Cost effective Disruptive Challenges the market

18 Benefits of Cloud 18

19 What Do You Need To Know

20 IT Delivery Model Is Changing Survey How many organisations here today have internal IT departments? Do you know the future model of IT using cloud?

21 Todays IT = Hybrid IT Legacy IT + Traditional IT = + Cloud Computing How to Address Integrate SIAM Service Integration and Management Adopt a Hybrid IT model

22 2013 Presentation See this presentation for more details. IT Becomes The Broker SLA Meltdown Demanding Times Losing Control The Model Gets Cloudy _itsmfuk_its_getting_cloudy_in_it_service_management.pdf

23 2014 Presentation Service Catalogue - Cloud Market Place Change Management Service Disintermediation Budget Process

24 Service Catalogue - Cloud Market Place 1) IT needs a catalogue to market and sell your services 2) IT are likely to use a service catalogue to procure IT Services Example UK Cloud Store Source:

25 Change Management Why Does Change Management Need to Adapt for Cloud Computing? To avail of the on-demand attributes of cloud computing which helps achieve IT and business goals, objectives, and strategies To help control reducing and retiring cloud computing and cloud-based services to streamline costs

26 Change Management An agile and adaptive approach to change management for hybrid IT will require: 1. Traditional change management structures. 2. A flexible approach for managing smaller changes more often, for example, DevOps type changes. 3. Integration between traditional IT and DevOps (agile) approaches. 4. Clearly defined change management processes and procedures.

27 Service Disintermediation Disintermediation is the removal of intermediaries in a supply chain, or cutting out the middleman. End-users purchasing cloud services directly End-users not going through the service desk or IT Channels e.g. for a SaaS application online invoicing application

28 Budget How to deal with the shift from CAPEX to OPEX? Managing of demand from both supplier and provider sides including procurement Identifying if SaaS subscriptions will increase costs, for example, if a SaaS application is more heavily used than originally planned Identifying if the procurement department understand cloud services, how to buy cloud services, and so on Identifying if there is enough OPEX to meet the forecast and actual demand Linking to cloud marketplace or a cloud service catalogue where costs are clearly defined

29 Process Are you policies rigid or flexible? Have you adapted your processes to cater for cloud based services? Change Management Service Catalogue Procurement Demand Management Incident Management Problem Management Supplier Management Transition Planning Availability Management Capacity Management Release Management Event Management

30 Policy Does your organisation have a policy on approved usage of cloud services In not, what are the risks?

31 The Capability of Using Cloud

32 What Is Your Capability? Have you the capability and knowledge to Adopt cloud Benefit from cloud Transform cloud Manage cloud Train for cloud Secure cloud

33 Where is Best Practice for Cloud?

34 Market Potential 288 million represents what? Additional labor costs for New York s Metropolitan Transportation Authority in 2014 What Santa Barbara City College needs to fund four additional buildings What the Social Security Administration in Washington, USA spent on a failed IT project

35 Market Potential 288 million is spent yearly on ITIL training and exams (approximately)

36 ITIL Training Investment Global Investment 260,000 ITIL Foundation Exams 60,000 ITIL Intermediate (incl. MALC) 320,000 ITIL Exams per year Courses Number Costs Sub-Totals Totals ITIL Foundation 260, ,000,000 Intermediates 60, ,000, ,000,000 Exams ITIL Foundation 260, ,000,000 Intermediates 60, ,000,000 32,000,000 Prices Average / Estimate 288,000,000

37 Cloud Training Investment How much is spent on cloud training? Training just 10% of those already ITIL certified would equal 36,000 Professional Cloud Service Management certified people!

38 The ITpreneurs Cloud Portfolio Cloud Service Manager Cloud Security Manager Cloud Solutions Architect Cloud Administrator Cloud Developer CCC Virtualization Essentials CCC Cloud Technology Associate CCC Professional IT Professional CompTIA Cloud Essentials Copyright 2014 ITpreneurs. All rights reserved.

39 Cloud Service Manager Modules Cloud Service Management Fundamentals Cloud Service Management Roles Cloud Service Strategy Cloud Service Design, Deployment and On-Boarding Cloud Service Management Cloud Service Economics Cloud Service Governance Showing the Value of Cloud Services Popular Service Management Frameworks

40 Cloud Service Manager https://www.itpreneurs.com/course/professional-cloudservice-manager/ Audience: IT Managers and CIOs Service Managers (with or without an ITIL background) Service Management Professionals Cloud Strategy and Management Consultants Service Architects, Technical Pre-Sales Consultants IT Professionals Cloud service design, deployment and run course What they learn: Analyze an organization's strategic assets and capabilities to successfully design, deploy, and run cloud services Illustrate the benefits and drive the adoption of cloud-based services Select appropriate structures for designing, deploying, and running cloud-based services within traditional IT organizations Demonstrate how to link cloud value back to IT strategy Why they need it: IT management is under pressure to deliver more agile IT services and adapt to change. Organizations are adopting strategies that include cloud computing in order to meet these challenges and offer repeatable, flexible and scalable services. Service managers must help organizations optimally ensure measurable service delivery and management in cloud environments.

41 Helpful Resources Axelos White Paper on ITIL and Cloud Computing

42 2013 Presentation See this presentation for more details. IT Becomes The Broker SLA Meltdown Demanding Times Losing Control The Model Gets Cloudy

43 Cloud Service Management A New Beginning What You Need to Know Mark O Loughlin Copyright Red Circle Strategies 2014

44 ITSMF UK 150 Wharfdale Road, Winnersh Triangle, Wokingham, RG415RB, United Kingdom Tel: +44 (0) Fax: +44 (0)

HEY, WHERE HAS ALL OUR IT GONE?

HEY, WHERE HAS ALL OUR IT GONE? HEY, WHERE HAS ALL OUR IT GONE? Mark O Loughlin Head of Cloud Advisory, Consulting & Training. Auxilion Director. Red Circle Strategies www.redcirclestrategies.com Copyright Red Circle Strategies 2015

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