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WorkshopData Center Challenges
and IT Service Management
Mark Brinkmann
August 2009
Page 1
Foundation:1954 Diebold1977 DETECON
Restructuring:2002 - Detecon International GmbH
Turnover 2008:EURO 185 million; 755 consultants
Shareholder:T-Systems Enterprise Services GmbH
Offices in Germany:Bonn (HQ), Dresden, Eschborn, Munich
International locations:Abu Dhabi, Bangkok, Johannesburg, Beijing, Reston, Riyadh, San Mateo, Singapore, Zurich
Project Offices / permanent establishments:Jakarta, Hanoi
Detecon is part of the Deutsche Telekom Group, with access to the knowledge of ICT experts worldwide. Our global presence ensures the international success of our clients.
Introduction
Detecon Consulting itself holds several investments in Telco companies worldwide (e.g. Fal Dete Telecommunications S.A.L., UCOM Ltd.,
Thuraya etc.) and additionally runs the operations of several of these companies on all levels.
Overview
Page 1
Detecon Key Facts Our Presence
Page 2
Our services cover organizational and strategic consultancy as well as the planning and implementation of highly complex technical ICT applications.
Introduction
Enterprise Infrastructure ManagementTransformation & Program ManagementNext Generation Network Service ArchitectureNetwork Performance & Implementation ManagementNetwork Architecture StrategyNetwork Operation Efficiency & Security
Technology Management
ICT Strategy & OrganizationTechnology Innovation ManagementEnterprise Architecture Strategy & Mgmt.Enterprise Application Strategy & Mgmt.Enterprise Service Management, Security & Sourcing
Strategy & Marketing
Business Development & InnovationCorporate StrategyMarketing & Sales StrategiesWholesale & Regulatory StrategiesCorporate Finance
Operations
Process & Organizational ExcellenceTransformation ManagementInterim ManagementHuman Resource ManagementCustomer Relationship ManagementProcurement & Supply Chain ManagementFinancial Processes & Applications
Management and technology know-how – our services
Page 3
Introduction
Detecon’s extensive experience with state-of-the-art data centers sets the standards for advising our customers.
Overview of Data Center Service Offering
Our service offerings include:
Potential AnalysisRunning costs / Cost ManagementResource utilizationService, Organization & HRRisk and SLA requirements
DesigningData Center StrategyData Center Facility Dynamic / Adaptive Infrastructure and VirtualizationData Center Security ManagementEnergy Management (GreenIT)IT Service Management and Technology Architecture Mgmt.
Consolidation ConceptsData center consolidationStructure and sizing of target infrastructure and organizationServer and storage consolidationTarget architecture
Implementation PlanningMigration planProgram schedule and project planning / managementImplementation coaching and QSRisk mitigation in project delivery
Based on Detecon’s best practice experience the consolidation of technology and location, availability solutions, sourcing and risk minimization are most relevant topics.Depending on the current situation of a company and its technical and business situation, the data center strategy must be adapted to new conditions.
Data center strategy and optimization success factors
Changes to organization based on process modelsUse of state-of-the-art technologyBest practice project implementation methods and techniquesConsistent methodology to optimize financial and technical challenges
Page 4
IntroductionWorkshop Chapters
Consolidation
Cost Management
IT Industrialization
Virtualization
Business Continuity
Energy Management
Facts and Objectives
Frameworks
ITILBenefits & Challenges
Process Maturity
Service Design
Documentation Framework
Service Level Management
Service Desk
Enterprise Technology Management
Cloud Computing
Data Center Challenges IT Service Management Excursion
Page 5
Content
- Data Center Challenges
Page 6
Data Center Management
Risk management in DC (financial and technical)
Regional specifics APAC
New business opportunities
Impact by global economic crises
Technological trends and hypes
Solutions and general perceptions to consider
Further Issues to consider
Data Center Challenges
Currently three economical and technical key factors drive Data Center Management to be one of the top priorities of CTO/CIO.
EnergyManagement
andCooling
Industrialization
Consolidation and
Cost Management
APACDATA CENTER
of the Future
Data Center Management is one of the top three most import CTO/CIO priorities in 2009
Overview
Page 7
Data Center Challenges
Even if the general cost trend in data center tends to increase, an intelligent combination of several Detecon solutions allows for a reduction of the overall operational cost.
Consolidation and Cost management
Data Center Computing Cost Outlook
A holistic architecture approach will deliver sustainable data center efficiency and cost cutting opportunities:
Sourcing options allow for reductions of up to 23 %
Consolidation (Virtualization) together with high availability will cut costs 17-21%
Risk mitigation cost cutting 7-11%
Site consolidation reductions 13-18%
Energy Efficiency 8-14%
A transparent business & cost case analysis is the basis for all savings.
Solutions
41 43 45 47 50
17 17 18 18 19
7
35
2009
10
35
2010
11
35
2011
11
36
2012
12
36
2013
Labor Costs
HW/System Costs
Facility Costs
Energy Costs
Source: Gartner / Detecon WW Projects
GeneralCostTrend
PossibleReduction12-23 %
Germany
Page 8
Multiple surveys suggesting that Europe and America are having a higher level of IT cost transparency.
Data Center ChallengesCost Management
In Asia:
Labor cost are percentage wise substantially lower
Energy cost is not an issue, yet!
Energy / Facility costs are approximately half in comparison
Server cost are the highest cost stake – Software cost remain unclear
Due to continues business growth the budget increase tends to be in the high-end area
Lack of financial IT transparency
Europe – Asia Differences
Define services and implement a service catalog. The first step is to understand the services that IT is providing rather than the technology.
Develop cost models for each service. For each service in the catalog, develop a cost model that maps the technology, labor, and other costs required to support the service.
Define allocation methodologies. Charging customers for IT services requires a method for allocating the costs.
Integrate with financials. The final step is to embed IT customer invoices into the enterprise financial accounting system.
Solution is IT Financial Transparency Data Center Cost Portfolio Spending Growth
Data Center Cost Portfolio
7%7%
Overhead
2%
Disaster RecoveryStorage
Networking 10%
Servers11%
Energy/Facility
12%Software
22%
Labor29%
0
5
10
15
20
Software Networ-king
ServersEngery/Facility
Low-End Growth
High-End Growth
Labor OverheadDisaster Recovery
Storage
Source: Detecon, Gartner and Forrester
Europe/America
Europe/America
Page 9
Architecture & Technology
Organization & ProcessesFinancials
Consolidation technologiesVirtualization of mainframes and serversEnsuring high availability and resource utilization
1
New structures - availabilityHigh availability and disaster backupCost optimization versus security requirements
2
New structures - consolidation locationsCost optimization and standardizationRelocation planning and implementation
3
Sourcing alternativesReduction of vertical integration - outsourcingHousing alternatives in heterogeneous infrastructures
4
Risk minimizationMainframe - future and alternativesHeterogeneous infrastructure landscapes
5
Data Center ChallengesConsolidation - Overview Based on Detecon’s best practice experience the following highly relevant topics were identified and evaluated in line with the strategic areas.
Consolidation Topics
Page 10
The industrialized data center with its adaptive infrastructure and new business and cost savings model is a continuous effort and improvement project.
Data Center IndustrializationData Center Challenges
Dynamic / Adaptive Infrastructure and the Data Center
DC industrialization will create new business opportunities, but will destroy legacy data center business models (e.g. Collocation/Housing only).Virtualization, standardization and automation transform the IT towards a more homogenous infrastructure. The industrialization process with its future technology advantages and business opportunities immunizes the Data Center against serious margin cuts or budget deficits.No future data center without a holistic strategic approach.
Business & Technology Trends
Virtualization and Dynamic Infrastructure
Security covering all
aspects of the DC
Green DC Energy
Efficiency
Business Continuity and
Disaster Recovery / Availability
ITIL-Based Service
Management
IT and Information
Infrastructure Standardization
End-to-End Automation and
Management
Page 11
IT automation with high process maturity are the key drivers towards higher productivity. Data Center Industrialization - AutomationData Center Challenges
Shift your budget structure
improve productivity
drive consistency
be the driver towards a homogenous (standardized) IT infrastructure
keep IT processes within acceptable tolerance
give the business more flexibility and options
Automation will
Automatic discovery of IT infrastructure components (Configuration Management)
Capacity and Change Management
IT process automation
Audit and Control
Virtualization is the foundation of automation
Key Elements of Data Center Automation
Managing Complexity
Complexity
Inefficiency intolerance zoneInefficiency intolerance zone
Manual ability
Automation requirements
Run Run
Innovation Innovation
Currently Industrialization
t
€
Page 12
The evolution of industrialization and the steps necessary to get to the next level.Data Center Industrialization - OutlookData Center Challenges
Dynamic and Adaptive Infrastructure
Page 13
Virtualization is a key enabling technology on the way to DC (IT) industrialization and cloud computing.
Data Center Industrialization - VirtualizationData Center Challenges
Consider virtualization as a strategic change agent
Virtualization requires a plan and a vision
High management, due to increased complexity
Virtualization requires business alignment
Beware software pricing and licensing
Beware nervous vendors and ill conceived offerings
Resources will become dynamic and granular
Virtualization Challenges
Three areas of virtualization
Interested, and planning budget for it
8%Interested,
but no budget for it3%
Not awareNot interested5%
46%
9%
Already Implemented
29%
Implementing in the next 12 months
Source: Detecon, Gartner and Forrester
Processes Technology Consolidation
Virtualization Penetration (Survey 2009)
Europe/America
Page 14
Key stakeholders must drive the virtualization from different perspectives, however strategy, standardization and automation are the key issues.
Data Center Industrialization - VirtualizationData Center Challenges
Must consider virtualization as:
Part of the strategy
Foundation for automation
Change in the relationship with customers
Rebalance skills toward business (alignment)
Proactively drive Enterprise Architecture Management (Application Readiness)
Set process maturity goals
IT Executives
Must manage resources as pools (capacity planning, deployment, chargeback)
Virtualization sprawl is a real concern –requires good accounting/changing and most import mature processes
Holistic Life-cycle Management
Ensure Virtual Machine Standardization
DC / IT Operation Manager
End-user reticence is a big barrier to virtualization
Must expect service levels, not boxes
Faster deployments, resulting in higher demand
Customers
Pricing models must change – more granular, more dynamic
Virtualization drives economy of scale
Service Providers/Software Vendors
Page 15
Virtual resources vs. software
Managing dependencies
Managing asset location
VMs as black boxes – e.g. appliances
Configuration
Data Center Challenges
Shift to holistic capacity planning
Virtualization vs. SLA mgmt.
Performance affected by changing set of co-hosted VMs
Performance / Capacity
New privileged layer of software that will be target
Protecting and patching offline VMs
Auditing VM movement, changes and life cycles is inadequate
Security
Matching problems to moving assets
Additional moving and changing parts
Problem
Ease/speed of VM creation
New virtual changes
V-to-P and P-to-V as new step
Change
CapEx mapping to virtual deployments
Dynamic usage challenges
Different physical hosts change metrics
Chargeback
Data Center Industrialization - VirtualizationOn the operational level virtualization creates multiple different challenges, which can only be managed through a holistic process management.
Page 16
Data Center Industrialization - VirtualizationWeb and File Servers as well as Enterprise applications are the main business cases in implementing virtualization.
Data Center Challenges
“Which will you consolidate with virtualization software and what types of applications are you consolidating ”
20
23
28
28
30
38
38
40
40
40
70
55
68
77
78
73
75
78
80
87
eCommerce
Security
Portals
Databases
System mgmt.
Print servers
ConsolidatedVirtualized
Enterprise apps
File servers
Web servers
Key Virtualization and Consolidation Topics
Europe/America
Page 17
Business Continuity remains a lower priority topic, however as major incidents show it is vital to the survival of businesses.
Data Center Industrialization – Business ContinuityData Center Challenges
Have you investigated / validated the business continuity readiness of your strategic partners?
BC of strategic partnersHave you conducted a formal BIA to support business continuity strategy development and planning?
Business Impact AnalysisDo you have documented BC plans in place?
Documentation
Technology alone doesn’t constitute a BC plan, and even a plan isn’t enough if it’s not tested and updated on a regular basis. If you have two (DC) sites that are an appropriate distance apart and you use replication to protect your mission-critical and business-critical applications, then you’re in good shape from a technology perspective. However, if you don’t have documented plans, don’t test plans every year, and don’t update them on a regular basis, this is where you need to focus your improvement efforts.
Business Continuity (BC) Data Center Tier Levels
68%Yes
19%
13%
54% No46%Yes
77%
18%5%
Yes
No, but we plan to document our BC
strategies in the next six to 12 months
No, we currently do not have plans to document our BC strategies
99,995 %99,991 %99,982 %99,741 %99,671 %availability
0,4 h1,1 h1,6 h22 h28,8 hDowntime p/y
2x(N+1)2x(N+1)power(N+1)rest
N+1N+1NRedundancy
2x1x active1x passive
1x active1x passive
1x1xDistribution paths
Tier IVTier III+Tier IIITier IITier I
Source: Detecon, Gartner and Forrester
No, we don't plan to conduct one in the next 12 months
No, but we have plans to do so in the next 12 months
Europe/America Europe/America Europe/America
Page 18
Business Continuity has as well a process with starts with developing a strategy afterwards designing the operation and technology.
Data Center Industrialization – Business Continuity ManagementData Center Challenges
Business Continuity Management Processes
Business impact analysisIdentify critical processMap dependent resources and IT SystemsDefine recovery time and recovery point objectives
Risk assessmentPower failuresIT hardware or software failuresHuman errorNatural disastersManmade disasters
Plan implementation and documentation
Emergency communication and notificationWorkforce continuity and recoveryTest plan development and executionData center continuity and recoveryPlan maintenance and enhancement
Context
Business impact analysis
Plan implementation and documentation
Risk assessment
Continuity Management
Testing, training and maintenance
Strategy development
Page 19
Industry benchmarks for energy optimization at existing DC sites define maturity classes for an optimization of power consumption in a world-class GreenIT.
Energy Management and CoolingData Center Challenges
Energy Optimization Maturity Classes for Improvement
Efficient Data Center Cooling continuous to be the major facility issue, which will be even more dominant in the coming years.Only Energy Management that is vertical implemented from the business down to the data center facility management will enable the organization to get a transparent view on energy costs.Provider Data Centers build before 2000 will be soon excluded from outsourcing tender evaluations.Power Usage Effectiveness (PUE) cannot be used alone as a standard to compare data center energy efficiency.
Business & Technology Trends
-2
-30%
-4%
4%
data center power consumption
-29%
-4%
5%
data centerfloor space
-24%
8%
data center cooling requirements
-23%
-1%
8%
data centeroperating costs
Best-in-Class: Top 20% of aggregate performanceIndustry Average: Middle 50% of aggregate performanceLaggard: Bottom 30% of aggregate performance
Source: Detecon Projects
Page 20
Solutions to increase utilization and tackle the total energy usage.Energy ManagementData Center Challenges
65%
29%
28%
27%
21%
10%
17%
6%
15%
5%
15%
33%
58%
47%
63%
3%
Precision cooling
No plans/don’t knowAfter 201014%Elimination of redundant applications
In 2009
7%
5%Physical rearrangement (hot/cold aisle)In 2010
Already in place
3%
7%
4%Baseline data center energy consumption
5%6%
7%Server virtualization and consolidation
Power Requirements Continue to Grow Energy Costs
Data Center Efficiency Practices Are Widely Implemented in Europe
1,226,400 Baht3,748,448 Baht133340kW
735,840 Baht1,827,962 Baht80024KW
183,960 Baht456,990 Baht2006kW
122,640 Baht234,436 Baht1334kW
61,320 Baht117,218 Baht672kW
Energy Cost ThailandEnergy Cost GermanyW/Sq. FootPer Rack
Source: Forrester, Gartner / Thailand 3,5 Baht per hour kW
200028 x 2U Servers2kW Heat Load
200242 x 1U Servers6kWw Heat Load
20066 Blade Centers24kW Heat Load
2010Rabid Blades
40kW Heat Load
Europe
Page 21
Green TechnologyVirtualization is again the major technology which is not only the foundation of automation by as well has huge potential in energy savings.
Data Center Challenges
Green Technology
Technologies Delivering Clear Environmental Value Will Experience Rapid Adoption:
IT energy measurementPC power management softwareStorage capacity optimization Server virtualizationLocalized coolingThin clients
Green Technology Drivers
Source: Forrester
Develop credibility to secure funding for green IT investments
Define KPI for energy optimizationImprove operational best practices to deliver value at low-to-no cost before seeking fundsReassure your investors that green IT has financial worth
Next Steps
Page 22
Content
- IT Service Management
Page 23
IT Service ManagementIntroductionIT organizations are undergoing a transformation from project-centric to become service-oriented which is introducing systematically IT Service Management (ITSM).
Drivers of introducing and using IT Service Management
ITSM has been introduced by many organizations to increase service quality and to reduce costsITIL as a best practice has been used as guideline to implement ITSMHowever, how to assess, measure and compare the effectiveness of ITSM (ITIL) process implementations?How to check periodically the „state“ of ITSM operations?So a unified, standard methodology would be necessary to provide independently verifiable means to measure IT process implementations
Comments
ITIL as best practice provides only guidanceProven methodology for managing IT services but it is not a standardHow to ensure sustainable positive effects of ITIL introduction?
Stronger focus on controlling IT costsImproving cost structures by outsourcing leading to complicated supply chainsHow to ensure high service quality along the whole supply chain?
Increasing dependence on high quality, high availability IT services aligned with business needsTransition to systematic ITSMHow to ensure sustainable effectiveness of ITSM?
Service centricity Cost reduction ITIL
A systematic and standard approach is necessaryto ensure sustainable effectiveness („Build to last“)
Page 24
IT Service ManagementFactsCompanies using extensively IT services could strongly benefit from a standardized ITSM approach.
Strong alignment between
IT and Business
Quantifying benefits of ITIL introduction
Ensuring continuous process improvement
Auditable IT service quality and
conformance
Standard requirements to
manage suppliers
Business has become services focused with a strong orientation to service levels and costsMissing standard ITSM framework could lead to misalignment between business and IT
Control of suppliers and other 3rd party service providers ensures constantly high service quality
ITIL is not a standard against which service providers can be certified
Establishes cost-effective IT services for all stakeholders, and improves service qualityDifficult to quantify ITIL benefits, and lack of baselines for process metrics
Solid foundations to define and implement key service management processesDepth and breadth of an implementation are specific to priorities and maturity of each process
Assistance to enforce ITSM process compliance, and ensuring high service qualityLack of standardized quality control leads to degradation of IT service quality
Data Center I
Data Center II
Data Center III
Service Team
Service Team
Service Team
IT Service Management Facts
Page 25
Support to ensure better alignment between business and IT service provisioning
Promoting consistent and cost effective services
Reducing costs by effective benchmarking and management of suppliers of IT services
Commitment that IT services will be delivered in compliance with accepted best practice(s)
Codified and repeatable support for organizations to assess and improve ITSM process effectively and improvement, and to enforce process compliance
Ensuring continuous improvement
Benchmark with best practices
Requirements to align service management with suppliers and other 3rd party providers
Codification of basic business requirements for IT service management
Providing impartial external method of assessment of IT service quality
Providing clear evidence that ITSM quality is taken seriously
Assistance to meet legislative compliance requirements
Internationally recognized assessment
Reduced organizationalrisks and cost
Standardize and implement ITSM processesStable framework for ITSM
IT Service Management
ITSM needs a stable framework to provide continuously high service quality, service and process improvement, and to reduce organizational risks and costs.
Objectives
Page 26
Frameworks and StandardAs all frameworks are having a specific purpose, ITIL has the goal to provide best practices on how to run IT Service Management.
IT Service Management
Gartner Hype cycle ITIL (2007)
The ITIL framework is not applicable for all IT operation requirements, but it is a perfect start.
Applicability of frameworks
Capability Maturity Model Integration (CMMI), Information Technology Infrastructure Library (ITIL), Control Objectives for Information and Related Technology (COBIT)
Page 27
IT Service Management
Service StrategyDemand Management, Strategy Management, Portfolio Management, IT Financial Management
Service DesignService Catalogue Management, Service Level Management, Capacity Management, Availability Management, IT Service Continuity Management, Information Security Management, Supplier Management
Service TransitionTransition Planning and Support, Change Management, Service Asset and Configuration Management, Release and Deployment Management, Service Validation and Testing, Evaluation, Knowledge Management
Service OperationEvent Management, Incident Management, Request Fulfillment, Problem Management, Access Management, Operation Management
Continual Service ImprovementMeasurement , Reporting, Improvement
ITIL BooksITIL v3 Overview
Information Technology Infrastructure Library (ITIL)ITIL v3 has 5 books that are oriented on the ITIL lifecycle.
Page 28
Data Center SituationIT Service Management
DC Workshop Case IT Service Management Benefits
Data Center I
Data Center II
Data Center III
Service Team
Service Team
Service Team
Improved efficiency and quality of IT service
Enhanced customer satisfaction and improved
customer services
Enhanced image of IT as a business partner
Compliance and corporate governance improvements
Agility in adopting changes as demanded by the
business or other constituencies
Cost reduction
Page 29
Challenges and Benefits Biggest challenge is internal resistance to change, on the other hand better quality of delivery from IT operation is the main benefit.
IT Service Management
70%Better quality of delivery from IT operations
52%Better process efficiency in IT operations
36%Better productivity of IT operations
19%Cost savings in IT operations
18%Security and integrity of systems
16%Budget control
11%Good outsourcing preparation
11%Don’t know
5%Other
52%Internal resistance to change29%Customers (internal & external) not prepared
21%Didn’t encounter any negative elements13%Other
11%Too difficult to conduct the project8%ITIL proved too costly to implement8%Don’t know7%It’s too difficult to find external consultants
3%ITIL was finally too costly
ITIL Challenges and Benefits (Survey)
What were you my challenges during the ITIL implementation?
What were you my benefits of implementing ITIL?
Invest/maintain Ratios
80%
20%
25% legaciesand duplications
Poor performers
45%
Industry leaders
Newinvestments
Maintainand
operate55%
Implementing an ITIL based IT Service management, shifts your budget structure.
You will be able to do more new investments and spend less budget on maintaining and operation.
Process Maturity
Source: Forrester / DeteconEurope/America
Page 30
Process MaturityEvery organization should have the object to achieve Level 4 of the process maturity, which enables the business highest flexibility and efficiency.
IT Service Management
Level 0Chaotic
Ad hoc
Undocumented
Unpredictable
Multiple help desks
Minimal IT Operations
User call notification
Level 1Reactive
Fight fires
Inventory
Desktop Software distribution
Initiate problem mgmt. process
Alert and Event mgmt.
Up/down component availability
Level 2Proactive
Analyze trends
Set thresholds
Predict problems
Measure application availability
Automate
Mature problem, configuration, change, asset & performance mgmt. processes
Level 3Service
IT as a service
Define services, classes, pricing
Understand costs
Guarantee SLAs
Measure & report service availability
Integrate processes
Capacity mgmt.
Level 4Value
Enterprise Architecture Management
IT industrialization
IT and business metric linkage
IT/business collaboration improve business process
Business planning
Tool Leverage
Operational Process Engineering
Service and Account Management
Service Delivery Process
Manage IT as Business
IT Management Process Maturity Model
Page 31
Operation(Technical Capabilities)
IT Service Design
ProcessesImprovement Projects
Today best practice IT organizations are structured based on services with strong customer orientation and business process alignment.
IT Services
Technology
DemandManagement
Business Process A
Business Process B,C
Business Process A
Business Process B
Business Process C
Demand
SLA
IT Service Y
IT Service Z
IT Service X
IT Demand
Customer Care
Service Desk
Field Service
IT Strategy, Governance and Enterprise Architecture
Customer / Business Process Orientation
IT Service Management
Data and Information
Applications
IT Supply
Business Unit
Business Process and IT Service Alignment (Overview)
Page 32
Service OperationService Operation (ITIL v2 Service Support) is a holistic process approach on how to efficiently run IT Operation.
IT Service Management
Incidentmgmt. Workaround
Problemmgmt.
Serious or multiple events
Root cause analysis
Change mgmt.
Request for changeUser requests
Change
Releasemgmt.Scheduled changes
Emergency changesConfig.mgmt.CMDB
Update
Event mgmt.
ITIL Service Operation in a nutshell
Page 33
Documentation FrameworkWith increasing regulatory requirements, documentation is becoming a major pain point in current IT organizations.
IT Service Management
Internal
General Server Configuration
Service Configuration
Operation Manuals
Infrastructure Security Concepts
Privacy Policy
Configuration Manuals
IT Organization and Responsibilities
Concepts, Task and Processes is b
asis
for…
Ref
ers
to
Verif
ying
aga
inst
…
ExternalService Catalog
1
3
4
5
6
Technical IT Architecture2
alig
n…
IT Infrastructure Documentation Framework
Past project shows there are three main key success factors:
Keeping the documentation up-to-date
Introducing a documentation culture, with the necessary detail depth
Standardization
Challenges
That policies and procedures are repeatable documented and controlled
Documentation is necessary for all ITIL processes, which in turn provide visibility and control.
Objectives
Page 34
Cost reduction and enhanced customer satisfaction and improved customer services through well designed SLAs.
Service Level Management (SLA)IT Service Management
Service Level Design and Cost Calculation
Quality of service through improved responsiveness
Through the definition of service levels, IT knows what the customer expects and can respond accordingly.
Optimization of service-level agreements
If services are managed according to service levels, penalties can be avoided.
IT service cost projection
In a shared service organization, it is easier to do a cost projection and a more efficient charged back through the use of services
Benefits
Service Desk Calles p. a:241.000
Service
Operation Hours Response Time First Level SolutionLanguagesetc.
L1
AmountSLA (Quality) Cost Trends
0
500
1000
1500
2000
2500
3000
3500
4000
2003 2004 2005 2006 2007 2008 2009 20010
Baht
SAP Applications:Application ServicesData Center Services
Enduser: 1.850L2 AvailabilityResponse TimeService HoursOperation Hoursetc.
Client Services incl.:AccessFile and PrintingOffice Communication
Clients: 11.000L3
Server Infrastructure:Application ServicesData ServicesData Center Services
Number ofProcessors: 500
Utilization byAll Users: 75%
L4
LAN-/WAN-availabilityetc.
Availability Response TimeService HoursOperation Hoursetc.
Definitions according to the specific Service Levels ∑ <= Baseline
0
500
1000
1500
2000
2500
3000
3500
4000
2003 2004 2005 2006 2007 2008 2009 20010
Baht
0
500
1000
1500
2000
2500
3000
3500
4000
2003 2004 2005 2006 2007 2008 2009 20010
Baht
0
500
1000
1500
2000
2500
3000
3500
4000
2003 2004 2005 2006 2007 2008 2009 20010
Baht
Page 35
Service Desk (1st Level Support) Tools
Service DeskOne main object of ITIL is the framework of a service desk, which to two key objectives to enhance customer satisfaction and improve customer services.
IT Service Management
Service Desk Design
Increased operational efficiency of staff members
Clear role definitions
Reduced resolution timeEmbed knowledge bases into service desk solutions for fast resolution time or immediate handover to the next level support of incident with incident details attached.
Improved effectiveness of IT function
Current reputation can be improved by reducing the ratio of new projects to ongoing maintenance and operations
Benefits
Field Service
2nd Level Support
2nd Level Support
2nd Level Support
2nd Level Support
…
3rd Level
…
USERS
Desktop Access Service
File & PrintService
Email Service
SAP Service
…
Standardized IT-Architecture
Aligned to Business Requirements
through a holistic Enterprise
Architecture Management
Page 36
ITIL Project Success and Failure factors
A successful increase in IT competitiveness through ITIL-based reengineering depends on various factors.
IT Service Management
Firm establishment of “department thinking” (functional structures)
Expectations of measures too high and short term
No standard IT basis due to non-integrated plans and tools
No standard understanding of the terms
The change is only accepted by external consultants or only by a few hierarchical levels of the company
No common business process architecture
Ambiguous target requirements; strategic “zigzag” course
Too many parallel projects which are too ambitious
Information hiding
Quantifiable objectives and orientation to best practice variables to monitor success
Problem transformation (formal vs. complex process components)
Readiness to accept change/deal with psychological stress
Development of a vision
Continual and thought-out communication from the management
Extensive anchoring of ITIL and “process thinking” in the company (commitment of management, incorporation of the areas involved)
Focusing on the core business processes and the customer's objectives
Consistent standardization
Stable general concept, can be extended flexibly
Adequate budget
Use of tried and tested methods
Success factors Failure factors
Page 37
Tasks of project participants
In the design phase, the creativity and the aptness of the consultant when dealing with problems and people is required in particular.
IT Service Management
Integrates his specialist know-how and best practice know-howStructures the taskIntegrates ideas and experiences from other projectsMediates between managers and corporate managementArbitrates between opposing partiesIdentifies promoters and blockersMay document the works resultsCoordinates between the various topicsChallenges what existsEnsures the required target orientationDrives the project forwards
Incorporates his specialist and sector know-howIs responsible for planning solutions in detail and implementing themPoints out unrecognized high potential performersImplements the internal network for the projectSupplies the potential assessmentsPresents/represents the results to the steering committee
Activitiesof the consultant
Activities on thecustomer side
Activities of the consultant
Required activities of the customer
Page 38
Detecon’s 5 phase ITIL introduction model
For ITIL-based reengineering, project execution has been established in five phases.
IT Service Management
Project management/controlling, quality assurance
Change management, project communication
5 Phase Model
Potential analysis
Implemen-tation
5
processimprovement*
Continual1 2 4
Design
3
Preliminaryinvestigation
Page 39
Process management as a basis for a high performance level
Sustainable IP process optimization requires a process management to be established
Performancelevel Development in
continualprocess management
Development in concentrationon a one-offreengineering project
Developmentwithout measures
Time (schematic)
Preliminaryinvestigation
Potentialanalysis Design Implemen-
tation Continual improvement
IT process optimization
IT Service Management
IT process optimization
Page 40
Mainsuccess
factor
Level of fulfillment
low medium high
• Price/service
• Reliability
• Competency
• Speed
•
Mainsuccess
factor
Relative significance of level of fulfillment
low medium high
Costs
Quality
Speed
IT Process optimization - example
Based on the service portfolio, the main success factor analysis and measurable KPIsare used to determine future general conditions for IT processes.
IT Service Management
Requirements
Require-
ments
IT process model (ITIL-orientated)
IT Service Portfolio
Main dept 1/Customer 1
Main dept n/Customer n
Targetgroups
IT service
Service desk/UHD
Desktop services
KPI and SLA characteristics *
Features
1 2
AvailabilityResponse time…
Characteristicslow medium high
Service 1 Service 2
Prio
ritiz
atio
n
Mainsuccess
factor
Level of fulfillment
low medium high
• Price/service
• Reliability
• Competency
• Speed
•
BA 1: Main success factor analysisMain
success factor*
Coverage perCustomer
low medium high
Costs
Quality
Speed
KPI = Key Performance Indicator UHD = User Help Desk * HEF per IT serviceSLA = Service Level Agreement (includes agreements and metrics for measuring service quality)
IT process optimization - example
Page 41
Content
- Excursion
Page 42
OverviewEnterprise Architecture directs the Operation Management architectural standards.
Enterprise Technology Management
Interoperability and Relationships between Management Frameworks
Source: TOGAF V9
Capability Planning
Business Planning
EnterpriseArchitecture
Transformation Management
OperationsManagement
Portfolio/ProjectManagement
SolutionDevelopment
Business Direction
Runs theEnterprise
StructuredDirection
Resources
Delivers
Delivers
ArchitectureGovernance
Project ManagementGovernance
Architectural Direction
(eg. IT infrastructure standardization)
Page 43
TransparencyIncreased transparency is the basis for the resolution of conflicting goals. Causes and effects of decisions are immediately visible in the EA model.
Enterprise Technology Management
Product 1 Product 2 Product 3Business Architecture
Application 1
Technology Architecture
Products
Processes
ABBDomains
Capabilities
Application 2
Application 3
Appl. 4
BusinessObjects
ApplicationsApplication 6 Appl. 7
Application 8
Information System Architecture
TBB TechnicalCapabilities
Software-Patterns
Hardware-Patterns
Software-Solution Stacks
Hardware-Solution Stacks
Server
Database
Application Server
Solutione.g. SAP on Linux
Business Basic
Linux
SQL-Server
SAP CI
IIS
Solutione.g. SAP on LinuxBusiness Critical
DedicatedLinux Server
Oracle DB
SAP CI
BEAPresentation Server
Facilities
Network
Storage
Solutione.g. SAP on Linux
Business Basic
Twin Site
2COM
NAS
Dual HP
Solutione.g. SAP on LinuxBusiness Critical
Server
Application 5
Product 1 Product 2 Product 3Business Architecture
Application 1
Technology Architecture
Products
Processes
ABBDomains
Capabilities
Application 2
Application 3
Appl. 4
BusinessObjects
ApplicationsApplication 6 Appl. 7
Application 8
Information System Architecture
TBB TechnicalCapabilities
Software-Patterns
Hardware-Patterns
Software-Solution Stacks
Hardware-Solution Stacks
Server
Database
Application Server
Solutione.g. SAP on Linux
Business Basic
Linux
SQL-Server
SAP CI
IIS
Solutione.g. SAP on LinuxBusiness Critical
DedicatedLinux Server
Oracle DB
SAP CI
BEAPresentation Server
Facilities
Network
Storage
Solutione.g. SAP on Linux
Business Basic
Twin Site
2COM
NAS
Dual HP
Solutione.g. SAP on LinuxBusiness Critical
Server
Application 5
Enterprise Architecture
Planning and Analysis of implementation consequencesStrategy goal = differentiation strategy
Planning and Analysis of implementation effects that have the objective of maximizing efficiency => basic requirements in the economical world are not sufficient enough to implement a competitive strategy
Product-, Service- and Process-Standards
Service-, Applications- und
Platform-Standards
Infrastructure-Standards
Page 44
Architecture functions within IT organizations will focus on supporting project management and operation management.
Value AddEnterprise Technology Management
Capture business goals, strategies, needs, and IT project portfolios and operational costs around common business architecture modelDevelop business technology strategy for business function needs to communicate understandingFacilitate business conversations around core, differentiating and commodity services, and focus
TOP CIO Priorities Enterprise Architecture Value Add
Use business capability model or other business architecture model to link business strategic, tactical, and operational demand with IT capacity for support at current costs and to identify areas of capacity and cost flexibility
Use business architecture to facilitate opportunity identification, and use innovation processes to maximize opportunities
Define common infrastructure standards for projects to improve fit to technology road mapDefine and guide SOA service portfolio to reduce project execution and quality riskDevelop project solution architectures that reduce risk and improve solution qualityDevelop application reference architectures that speed design and point to strong solution architectures
Define IT standards that enable consolidation and simplification of IT infrastructure and operations
Increase transparency of demand, IT capacity, and cost
Reduce the cost of business
Get projects done on time and on budget
Reduce the cost of IT
Improve value management and communication
Page 45
HypeCloud Computing
Gartner Hype Cycle Emerging Technologies (2008)
Right now cloud computing is just a big hype. There are only a few solution ready, to be used in an enterprise environment.
Page 46
Cloud Computing will change the whole IT landscape, towards a cloud service model. Models Cloud Computing
Cloud Service ModelConventional computing model
ApplicationsClient-side appsClient/server appsWeb interface to local server appData and process resides on PC or on local server
End user cloud servicesRich Internet applicationsWeb 2.0 technologiesSoftware-as-a-serviceData and process resides at service provider
Developer tools and techniquesClient-side development toolService-oriented architecture (SOA)Composite applicationsProprietary APIs, such as Win32
App-components-as-a-serviceInternet-hosted software services that enable mashupsWeb-hosted development toolsCommunity development tools for shared templates and codeProprietary service provider APIs and schemaMiddleware
App serverFile and object storesDatabaseIntegration server
Software-platform-as-a-serviceHosted app platformHosted data, file, and object storesHosted databaseSoftware-integration-as-a-service
Physical InfrastructureServersDisksNetworksSystems management
Virtual-infrastructure-as-a-serviceVirtual serversStorage sharesVirtual LAN configurationsManagement-as-a-service
Page 47
Our clients
Data Consolidation & Optimization
Data Strategy
Data Center Operation
Data Center Business Case
Data Center Facility Design
IT Organization & Operation
IT Architecture
Data Center Audit
Performance Assessment
Outsourcing Decision Support
Data Center
Selected References in various industries
Selected Data Center References
Page 48Page 48
Selected Telecommunication ReferencesIn the past 30 years, Detecon has gained vast experience in Strategic, Business Process Management, Organizational Design and IT-Management projects around the world.
Nigeria
U.A.E.Mozambique
Taiwan
Malaysia
Bolivia
Our clients
USA
Russia
Saudi Arabia
Lebanon
Syrian
Egypt / V.A.E
South Africa
GreekKuwait
China
Oman
Selected Telecommunication References
Page 49
Contact
Foto
Karsten PreyManaging ConsultantHead of LargeIT and Data Center Management
Detecon International GmbHFrankfurter Str.2765760 Eschborn (Germany)Phone: +49 6196 903 335Mobile: +49 175 439 4680e-Mail: [email protected]
Mark BrinkmannConsultantLargeIT and Data Center Management APAC
Detecon International GmbHOberkasselerstr. 253227 Bonn (Germany)Phone: +49 228 700 1276Mobile: +49 160 90591424e-Mail: [email protected]
Foto
Worawit Phantanusorn Country Manager
Detecon Asia-Pacific Ltd. Alma Link Building, 10th Fl. 25 Soi Chidlom, Ploenchit Rd. Bangkok 10330, Thailand Phone : (+66 2) 250 9770 Mobile : (+66 81) 559 7800 e-Mail : [email protected]