© 2004 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

The Business Case for Configuration Management

What are the Paybacks?

Oslo 12th October 2006

Roger Mallett (+44 07796 938 388)Senior Architect, International Expertise Team & Global Openview SWAT TeamHewlett Packard

Introduction

Roger Mallett – Senior Architect for Hewlett Packard

• Expert in Asset Management • Certified IT Asset Manager & ITIL certified• Written 3 books on ITAM best practice with a

fourth awaiting publication• Is at the forefront - providing advice and

guidance to some of the world’s largest enterprise companies

IT Operations

Focus

IT ProcessFocus

BusinessExternal

Focus

Point Tools Consolidated / Integrated Service Perspective

HP OpenView Building blocks to successful enterprise management

HP OpenView enterprise management

ITSM

HP OpenView ITSM SolutionIntegrated Processes need Integrated Tools

Asset Management

Consolidated Service Desk

Configuration Management

Identity Management

End To EndApplicationManagement

ConsolidatedEvent andPerformanceManagement

IT challenges

Keep the right services up-and-

running

Help the business better adapt to change

Demonstrate IT’svalue to the business

Making IT a valued partner to the business,faster and more effectively

What’s keeping you up at night?

The Primary Business Challenges• Improve productivity• Improve the customer experience (faster, more

accurate, personalised) • Perpetual Change – maintain quality• Cost reduction – seek ROI and payback• Use of resources - do more with the same• Minimise Risk to the company• Protect the brand and reputation of the company• Reduce manual operations with automation to remove

error and increase speed of operation• Earn more• Sustained growth• Provide value for money

ASSET MANAGEMENT IS KEY TO BUSINESS SUCCESS

External Influences• Worldwide Competition • Costs vs Profit• Regulatory Compliance

− Industry compliance (oil, gas, telecoms)− Financial compliance (basel II, SOX, etc)− Software licence compliance (FAST, BSA)− Audit

• Security (protect the intellectual property)

Today Business is supported by IT and this means that solutions must fit business requirements.

Business requires people, process, technology and knowledge to be successful.

Success = the knowledge and ability to deliver the right application or service to the correct user at the right time

Key Challenges Faced by Customers

Infrastructure Optimization

Asset ManagementConfiguration Management

Service Management

Regulatory Compliance

HP’s Proposal: How to succeed with all three

What are CEOs looking for in Software Tools?

• Tools that will do the job effectively and efficiently• Best in class products – part of a family of products• Ease of integration• Use a company with impeccable implementation

capabilities• Progressive Roadmap – ensure future of product• Automation – remove complexity and manual error• Data accuracy - automated discovery software

− Shared data− Proactive asset management − Active CMDB

Configuration Management Addresses Operational Details ITAM Affects The Entire Cycle

Request

Receive Procure

Deploy

Dispose

Stock

Monitor

IMAC

Support

Financial Mgmt

Configuration Management

ITAM covers the complete cycle

It Is Important To Note That “ITAM Is Much More Than Inventory and Configuration Management”− Inventory management is about capturing the basics:

what/where/who, accurate view of the “actual state” of your assets

− Configuration management adds to it the relationships between the configuration items and the processes (planning, identifying, control, status, audit) as defined by ITIL

− IT asset management is a much broader discipline• Several dimensions of management• Involves much more stakeholders• It introduces the financial and contractual aspects of assets• It manages the full lifecycle of the assets, from their acquisition

to their disposal• Asset management can also go beyond IT assets and address

the whole infrastructure

Configuration

• Operational Information• Understand the build• Relationships• Services

• The best technical solution adds no value without the supporting business practices and resources− Processes− Standards− Disciplines− Culture

An inaccurate CMDB is more dangerous than no CMDB at all

Configuration Management and the CMDB is NOT a pure technology play

Configuration management provides essential information and auditing support for more than 50% of critical IT operational processes.

Source: Meta Group

Asset Managemen

t

Questions Answered by ITAM

“How do I establish compliance with things like HIPAA, SOX, CFR section

21?”

“How do I establish compliance with things like HIPAA, SOX, CFR section

21?”

“How do I articulate what IT does for the

rest of the business?”

“How do I articulate what IT does for the

rest of the business?”

“How do I establish a centralized

configuration management process for all

service management processes?”

“How do I establish a centralized

configuration management process for all

service management processes?”

“How do I create a catalog of goods and services that exposes what IT can offer and at what price? How do I close the loop

from catalog requests through procurement

and fulfillment?”

“How do I create a catalog of goods and services that exposes what IT can offer and at what price? How do I close the loop

from catalog requests through procurement

and fulfillment?”

“How do I mitigate the risks associated with failing a SW audit?

i.e., fines, public embarrassment, negative stock

impact...?”

“How do I mitigate the risks associated with failing a SW audit?

i.e., fines, public embarrassment, negative stock

impact...?”

“How do I provide visibility into the

assets I own, where they are located, who has access to

them, and how much they are costing me?”

“How do I provide visibility into the

assets I own, where they are located, who has access to

them, and how much they are costing me?”

“How do I control growth in SW spend

while ensuring I satisfy contractual

and regulatory compliance

requirements?”

“How do I control growth in SW spend

while ensuring I satisfy contractual

and regulatory compliance

requirements?”

Asset Management Is Directly Improving The Financial Management Process

Makes IT a valued

partner to business

Moves the business from

reactive to proactive

Improves service desk

productivity & effectiveness

IT services to the business

Configuration, Release, and

Change Management

Pre-approved processes

Financial Management

Asset Management Best Practice

InventoryInventory•What do we own?•Who has them?•Where are they?•How do we keep this up to date?

InventoryInventory•What do we own?•Who has them?•Where are they?•How do we keep this up to date?

ProcurementProcurement•What should we own?•Standards and support?•Should we buy or lease?•Which is the most cost- effective configuration?•Vendor management•Volume Purchase Agreements•Stock optimization

ProcurementProcurement•What should we own?•Standards and support?•Should we buy or lease?•Which is the most cost- effective configuration?•Vendor management•Volume Purchase Agreements•Stock optimization

Contract ManagementContract Management•Is it under

maintenance?•What are the SLA’s?•Can we negotiate?•Are we insured?

Contract ManagementContract Management•Is it under

maintenance?•What are the SLA’s?•Can we negotiate?•Are we insured?

Software ManagementSoftware Management•Are we compliant?•Have we over-purchased?

Software ManagementSoftware Management•Are we compliant?•Have we over-purchased?

Managing ChangeManaging Change•Should we upgrade?•Redeployment strategies?•Retirement time?•Cascade?•Theft problem?•Minimizing risk

Managing ChangeManaging Change•Should we upgrade?•Redeployment strategies?•Retirement time?•Cascade?•Theft problem?•Minimizing risk

Financial PlanningFinancial Planning•Forecasting•Budget administration•Charge-backs•Tracking & managing

costs•Disaster recovery•Minimizing tax•Enabling accurate

reporting

Financial PlanningFinancial Planning•Forecasting•Budget administration•Charge-backs•Tracking & managing

costs•Disaster recovery•Minimizing tax•Enabling accurate

reporting

Benefits ofIT Asset Management

The Payback

IT Management

ITAM: Lifecycle Costs

Request phase Acquisition phase Life phase Disposal phase

Stock checking

Authori-zation

Order,Invoice

Asset creation

Install. work-orders

IMAC work-orders

Depre-ciation

Terms(lease, maint.)

Return value

End contract

Reuse of IT assets (hardware & software)

Expense lines to costcenters, budgets, financials years etc.

Financial system(General Ledger)

IDC Say:IDC Quote:

“HP Thanks to HP’s acquisition of Peregrine Systems in 2005, HP now leads the IT asset management software market. The revenue comes from sales of Peregrine’s AssetCenter solution combined with the asset management portion of HP’s OpenView Radia solution. HP is distinguished by being the largest vendor that has almost entirely distributed systems-based revenue (i.e., mostly Unix-, Windows-, and Linux-based revenue) in this market. Over the past two years, HP OpenView has significantly increased its revenue and market share, principally through a series of acquisitions and a more aggressive sales focus. The recently announced agreement to acquire Mercury Interactive will accelerate this trend for HP. For more information, please see HP Announces Agreement to Acquire Peregrine (IDC #34108, September 2005) and HP Doubles Down in Software: Acquires Mercury Interactive for $4.5 Billion (IDC #202869, July 2006).”

Frederick W. Broussard

Service Managemen

t

Consideration: ITSM is People, Process and Technology

Processes - Activity flows, predictable and measurable outcomes, continuous Improvement

People - Roles & Responsibilities, Management, Skills Development & Discipline, Organizational Structure, Culture

Technology - Infrastructure and management tools

A comprehensive offering for your ITSM journey

Serv

ices Leverage HP expertise and best practices

to analyze your current environment, design the optimal approach, then execute and evolve into the future, including support and outsourcing

Soft

ware

Tra

inin

g

Align IT with the business, and automate IT processes across technology domains and service providers

For CIOs, IT managers, IT project managers, IT employees, OpenView users, ITSM consultants, ITSM project managers

ITSM

Enterprise Solution

You Need:

People

Knowledge

Process

TechnologyHP OpenviewAssetCenter – integrated technology

Business Process Engineering &

ITAM / ITIL Best Practice help

HP can deliver expert resources

and train staff

Automated Discovery (ED)

HP’s IT Service Management Reference Model

Provides IT strategies and defines service portfolios to increase the value IT brings to the business

Provides daily monitored services and handles customer service requests to meet agreed service levels and increase customer satisfaction

Provides detailed services specifications to balance service quality with service cost

Provides project-based, tested service releases to minimize service activation risks and reduce implementation costs

Provides service agreements, information,

and coordination to execute against service commitments

An approach to transform IT organizations to being business-driven, focusing on continuous business-IT alignment, and delivering IT services at

agreed-upon service levels, quality, agility, and cost targets

ITSM is Not Just a Collection of Best Practices

Service planning

IT strategy and architecture planning

Customer management

IT business assessment

Security management

Continuity management

Availability managementCapacity

managementFinancial

management

Service-level management

Configurationmanagement

Change management

Problem management

Incident and servicerequest management

Operations management

Service build and test

Release to production

ITSM is a System of Best Practices to Achieve World Class Results

Service planning

IT business assessment

IT strategy and architecture planning

Customer management

Service build and test

Release to production

Availability management

Continuity management

Security management

Capacity management

Financial management

Service-level management

Change management

Configurationmanagement

Operations management

Problem management

Incident and servicerequest management

Governance,Enterprise Arch,

and ITSMAssessments

Businesscase

development

Program& project

managementsetup

Managementarchitecture

design

Process &organizational

designEducation &

communication

Developtransition

plan

Support,benchmark,Assessmentscertification

OperationalITSM – evolve & continually

improve

IT Service Management Both Broad and Deep

Service Management Portfolio

IT Business Management

Service ManagementApplication & Infrastructure Management

IT Service Management

Infrastructure & Application Monitoring and Control

- Health Monitoring- Event Management

- Job Scheduling & Control

Software and Configuration Provisioning

- Discovery and Mapping - Software Distribution

- Core Configuration (IMAC)- Deployment Automation (workflow)

- Policy Based Mgmt

Performance and Capacity Monitoring

- Performance & Capacity Monitoring - Application Response Monitoring (E2E)

- Performance & Capacity Reporting

Service Driven Operations- Service-oriented Monitoring- SLA-driven Operations Mgmt

- Service Modelling- Service Reporting/Dashboards

Consolidated Service Desk- ITIL Service Support Processes

- Knowledge and Escalation Mgmt- CMDB design and implementation

- Automation technology

IT Transformation- Assessment & Planning

- Implementation Services (ITT,ITSM) - IT Organizational Design- Management of Chance

IT Governance- Best Practice Workshop- Implementation Services

- IT Performance & Measurement

IT Asset and Financial Mgmt - Asset Tracking, Retirement and

Disposal- Asset Cost , Contract & Lease Mgmt

- Budgeting and Chargeback - Procurement & Inventory Mgmt

Business Process Monitoring

Storage Management

ITSM Reference Model Services

- Assessments- Process Design-Implementation

- Deployment

Service Life-cycle Management - Service Planning and Catalogue- Shared Services Delivery Mgmt

- Service Request Management (Portal)- Service Fulfilment

- Service Tracking and Reporting- Service costing/pricing

Summary

Bottom Line - ITAM

Repeatable, documented processes are essential to improving IT service delivery and

management.

The ITIL framework provides an effective

foundation for quality IT service management.

• Quality• Predictability• Consistency

This Means:• Discovery• Asset tracking• Asset repository (CMDB)• Financial management of assets – costs, budget, TCO, chargeback• Proactively manage software licence compliance, entitlement, and utilization• Contract management• Cable & circuit management• Management of service relationships• Manage current state

• Simple, standardized and managed• Software licence definition and reconciliation• Entitlement and utilization management

• REDUCE RISK!

Summary: Manage ITAM Proactively

The Paybacks: ITAM Business Benefits Improve Financial Performance

• Reduce cost− Supply Critical information to IT

projects that improve asset use and reduce costs

− Management and control of IT asset costs and services as a result of standardizing assets in inventory

• Improve IT productivity and service levels

− Improve ability to deploy and manage IT assets to support business unit objectives

− Communicate total cost of ownership and ramifications of IT needs/requests to business units

• Mitigate risks− Reduced risk from exposure to SW

license compliance issues, asset failure rates, and overspending that results from poor contract and purchasing management

− Support financial disclosures under requirements by Sarbanes Oxley, IFRC in the EU, etc.

− Reduced legal exposure as a result of improved contract management

− Reduced security breaches created by violations to corporate policy associated with rogue hardware and software.

• IT Transparency− Make IT spend transparent to the

businesses they support (i.e be able to explain why costs are what they are and how the services drive business events).

Why HP?

• World Class products− Flexibility− Scalability− Connectivity

• Best practice Delivery Team / Methodology• Best practices - Value Path• Enable Regulatory Compliance• Business Risk Reduction• Asset and Service Management experts• Product ‘Roadmap’• Worldwide support organisation• Expert training organisation

© 2004 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Thank you

Any Questions?

Roger Mallett