Information Technology Outsourcing (ITO) Joint Market Update: September, 2007 Preview deck Topic: Role of Tools in Infrastructure Outsourcing

Transcription

1 Information Technology Outsourcing (ITO) Joint Market Update: September, 2007 Preview deck Topic: Role of Tools in Infrastructure Outsourcing Copyright 2007, Everest Global, Inc. and Enterprise Management Associates.

2 Table of contents (page 1 of 2) Topic Page no. Background and scope 02 Summary of key messages 05 Overview of Infrastructure tools 06 Timeline of emerging tools 08 Tools and investment categories 09 Factors driving investment in tools 11 Role of Governance tools in infrastructure outsourcing 12 Governance in IT outsourcing 13 Functional landscape of outsourcing 16 Governance tools landscape 18 Buyer experience on existing tools 22 Significance of integration with infrastructure module 26 Role of infrastructure tools in infrastructure outsourcing 27 Overview of infrastructure tools market 30 Functional landscape of infrastructure tools 31 Structural analysis framework 32 Requirement of integration among tools 54 CMDB: bringing technology and toolsets together 57

3 Table of contents (page 2 of 2) Topic Page no. Supplier investment in proprietary tools 60 Challenges of heterogeneous environment 62 Themes in supplier investment 63 Supplier proprietary investment case studies 64 Challenges and incentives for buyers 70 Sources and impact of infrastructure tool investment 72 Implications for buyers and suppliers 74 Appendix 75 Glossary of terms 76 References 78

4 The joint market update on role of tools in infrastructure outsourcing will have over 70 pages of insightful analysis Dissatisfaction among buyers using tools Functional capabilities of governance tools Mainframe systems toolset ratings Significant functionality Using tools 100% = % Unsatisfied 34% 100% = 72 43% Satisfied Significant functionality Limited or no functionality Supplier Administra- Financial Risk tion Functions Contracts administra- Vendor tion Mercury Rational Emptoris CA Sourcing strategy/ planning Relationship Structural analysis areas BMC Alignment with business services Information conveyance Automated actions, policies, output Leading providers Computer Associates IBM ASG No functionality Innovators Compuware Not using tools 58% Primavera Analytic capabilities Tool usage 23% Neutral Troux Upside Planview Enlighta Integration with other systems Management data repository Discovery and relationship building Janeeva Input/data gathering Broad range of infrastructure tools Infrastructure tool functional landscape Suppliers are actively investing in proprietary tool suites Company Estimated investments Functionality Roadmap Service Network Systems Application Storage Security/ risk desk/help Asset desk Alignment with business services CA Information Unicenter conveyance TouchPaper Automated actions, policies, HP BMC Symantec BMC output OpenView Performance Manager Sygate Enterprise Performance Manager Protection BMC Analytic Remedy capabilities Integration with other systems IBM BMC Remedy Tivoli Management data repository iet Cisco Discovery and ITSM 4.0 relationship building Input/data gathering US$7-8 million (not including offthe-shelf products) Global Command Center (GCC) Integrate best-of-breed tools Build own tool from scratch Build around existing platform Deploy platform-agnostic solution Infosys Infrastructure Management Platform (I2MP) US$2-3 million (not including offthe-shelf products) Integrate best-of-breed tools Build own tool from scratch Build around existing platform Deploy platform-agnostic solution GCS is based on best-of-breed approach with significant added proprietary functionality GCC is based on a manager of managers, which handles standardized information coming from other buyer tools Several proprietary capabilities were added, e.g., security (password vault), data warehouse functions, device virtualization, various governance functions (e.g., and reporting, business transparency) I2MP is based on integrating best-of-breed tools and uses a proprietary correlation engine to integrate with monitoring platforms like BMC Patrol and SAP Basis The platform integrates with HP NNM and Cisco tools to provide networking support Desktop and security compliance is provided through Symantec tools and Bindview Ticket backbone is formed by BMC Remedy I2MP also includes key governance functions (e.g.,, contract ) Add service level (i.e., real time status across all clients on one dashboard) Integrate more thirdparty products to add crucial governance aspects like risk, financial and contract Provide clients with choice to continue with their own tools or utilize I2MP Integrate with IBM Tivoli, Atrium, Mercury Interactive, and Sitescope Strengthen knowledge to minimize L2 escalations

5 Tool vendors develop majority of tools, and some outsourcing suppliers invest in proprietary tools IO infrastructure functions CONCEPTUAL Tool vendors tools Tool class Infrastructure IT governance Other operational functions Internal ITO suppliers tools Enterprise tools IBM Tivoli, HP Openview Enterprise tools take care of a host of tasks in IT across multiple functions Functional tools BMC Remedy Enlighta Govern Tacit ActiveNet Functional tools have focused goals and scope typically limited to a few functions Dedicated ITO tools Emerging category Tool vendors are starting to develop tools across multiple functions geared toward supporting ITO Proprietary tools TCS Netasthra HCL MyDashboard ITO suppliers develop tools to meet specific outsourcing needs (e.g., ) Sources: Everest Research Institute (2007); vendor Web sites

6 The functional landscape of outsourcing relationship governance consists of seven broad categories Performance Contract Sourcing Contracts strategy/ administration planning Contract interpretation Contract compliance Contract maintenance Relationship Identify, prioritize, scope Internal Promote continuous improvement Perform supplier capability assessment stakeholder Supplier relationship Administration Meeting logistics Ad-hoc activities Financial Invoice payment Budgeting Business case analysis Ad-hoc analysis Risk Audit Outsourcing policy compliance Risk assessment Supplier SLA monitoring Problem Change Project Source: Everest Research Institute (2007)

7 The functional landscape of infrastructure tools to support outsourcing consists of seven technology areas Silo-specific Cross-functional, operational needs Network Systems Application Storage Security/risk Service desk/help desk Asset Monitoring for LAN/WAN infrastructure Network device configuration, audit, and availability Performance and capacity trending Network device discovery Reporting, alerting, and event for network components Monitoring for mainframe, midrange, and open systems technology Capacity planning for this category of technology Job scheduling automation in the data center Critical path and schedule forecasting for job Analytics and trend analysis for system components Application & availability Internet application Application mapping Application fail-over Transaction analysis Baseline and trending Applicationrelated SLA IT and businessrelated reporting Capacity and planning SAN topology design Data mirroring Automated fail-over Hotspot determination Ability to manage across various storage mediums (SAN, NAS, and DAS) Storage quota Capacity-related charge-backs Policy definition and for security and/or compliance Domain/nondomain security modeling Defense against partner security risks Support for regulatory requirements Audit and control capabilities Proactive notification of potential breaches Problem and incident Escalation of issues to tier-2 and tier-3 support personnel Staff Trend reporting and frequencies by factors SLAs for MTTR & MTBF Knowledge Self-service Lifecycle Asset Management Planning, procurement, retirement Inventory & asset discovery Support for service modeling of assets Reporting and analytics for asset Support for risk Asset service costing Source: Enterprise Management Associates (2007)

8 Suppliers face multiple challenges in managing and integrating heterogeneous tool environments of buyers Problem Description Solution EXAMPLE Integration across diverse set of buyers tools Diversity of IT platforms in buyer s infrastructure Managing security concerns in accessing buyer infrastructure Identifying business impact of IT events for each buyer Buyer may use different industrystandard tools, and incoming supplier would need to integrate with such tools if buyer chooses to continue using them In order to service defective devices and applications, suppliers need to successfully interact with multiple environments Supplier employees need immediate access to defective devices but restricted access to functioning devices to avoid interference Buyer needs a business impact view of IT issues and ; suppliers may be challenged to provide that Build a new tool with infrastructure and governance modules OR deploy manager of managers tool with integration module Create middle abstraction layer, which plugs back into different environments Maintain a security access middle layer which only allows access to a malfunctioning device Supplier needs to integrate governance system (e.g., SLM) with infrastructure system to report business impact

9 Four themes emerged in supplier s investments in proprietary ITO tools Integrate best-of-breed third-party tools into coherent portfolio Build own set of tools from scratch with significant upfront investment to provide end to end service to clients Develop a comprehensive suite of tools around existing industry standard tool platform to provide clients with best mix of technology and optimized functionalities Deploy platform-agnostic delivery processes to work with buyer s platform, creating CoEs for various technologies Preferred by emerging suppliers 1 (prevalent in RIMO) Cognizant Technology Services Infosys Tata Consultancy Services Wipro Perot Systems Adopted by established traditional players 1 IBM HP Capgemini 1 List of suppliers profiled is not exhaustive Source: Everest Research Institute (2007)

10 About Enterprise Management Associates Founded in 1996, EMA is the leading independent research and consulting firm dedicated to the IT Management market. We provide IT vendors and enterprise IT professionals with objective insight into the real-world business value of established and emerging IT Management technologies. Learn more about our research, industry analysis, and consulting services at: The EMA Difference Real-world experience, vendor agnostic guidance, focused insight into IT Management best practices and solutions. EMA Corporate Headquarters 5777 Central Avenue, Suite 105 Boulder, CO EMA New Hampshire Office 40 Pleasant Street Portsmouth, NH

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