7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
1/18
VMware IT Benchmarking
for Fact Based ITTransformation
Mahipal Lunia Lunia, VMware, Inc.
Steven Gall, VMware, Inc.
Matthew Stegall, VMware, Inc.
OPS-CIM2034
#vmworldops
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
2/18
2
Disclaimer
This session may contain product features that are
currently under development.
This session/overview of the new technology represents
no commitment from VMware to deliver these features in
any generally available product.
Features are subject to change, and must not be included in
contracts, purchase orders, or sales agreements of any kind.
Technical feasibi lity and market demand will affect final delivery.
Pricing and packaging for any new technologies or features
discussed or presented have not been determined.
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
3/18
3
Transparency Planning& Control Optimization& Alignment
VMware ITBM Fact-Based Approach to Run IT Like a Business
Services What services do I offer?
Costs What is the cost of providing those services?
QualityWhat does the business get and how do Imanage tradeoffs?
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
4/18
4
Broker of IT Services
InternalIT
The New Role of ITBroker of IT Services, Business Partner
IT Broker Decisions
What services at what cost?
Where can costs come out?
Insource or outsource?
Service level tiers or not?
Standard and/or
composite services?
What quality?
Incentives or penalties?
CIO and IT role expanding
From managing technology todelivering internally and externallyprovisioned business services
Providing the right service at the rightprice for competitive advantage
PrivateCloud
ExternalVendors
PublicCloud
Service Leveland Quality
ServicePortfolio
Demand, Costsand Incentives
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
5/18
5
Visualization
Service Levels
Vendor Accountabili ty
Service
Quality
Management
VMware IT Business Management Domains & CapabilitiesFact-Based Approach to Run IT Like a Business
PPM/PSA Storage IT Monitoring Service Desk CMDB SharePoint, Internal Cost Models,
Apps, Vendor Inv oicesGL, COA &
Expenses
Private
CloudPublicCloud
IT Financial
Management
Costs
Services Planning
IT
Benchmarking
Objective Evidence
Functional Peers Services
Portfolio
Data Collection & Validation
Security
3rd Party Connectors
Data Import/Export
Observation Engine
Scalability
Automat ion Platform
IT Cost Modeling
Analytics
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
6/18
6
VMware IT Benchmarking Overview
About Triggers
RepeatableCost EffectiveTimelyAutomatedBaseline
Future State
IT TransformationCost OptimizationEfficiencyRightsizingOutsourcing
RestructuringBusiness AlignmentM&A
Results Benefits
ActionableGranularIT DNA PeersLaser FocusApples-to-
apples
UnbiasedTrue CostTrue PerformanceCritical InsightsPotential Savings
Outsource ValueQuality of ITIT InvestmentsBusiness AlignmentGapsStandardizedRepeatableHigh-Value Focus
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
7/18
7
IT Benchmark Service Comparison
Traditional Benchmarking Process VMware IT Benchmarking Process
ServiceSelection
SubjectiveLacks Apples-to-Apples Comparisons
StandardizedObjectiveApples-to-Apples
DataValidation
Time ConsumingPotentially BiasedManual
EfficientStandardizedAutomated
Data Analysis LaboriousAnalyst-Driven / SubjectivePeers Selected Subjectively by AnalystLack Transparency
EfficientAutomated / ObjectiveScientific Peer Selection on IT DNATransparency Through Granularity
Repeatable Project by Project ProcessCost ProhibitiveResource IntensiveGut Feel Deliverables
Standardized / Repeatable ProcessCost EffectiveAutomatedScientific / Facts Based
CostsConsulting Engagement
Automated often less than 1/3 oftraditional costs
MetricsHigh-LevelLimited NumberLimited Use
GranularOver 3,500 Across 12 TowersActionable
Compare Traditional Analyst-driven IT Benchmark Service
to the VMware IT Online Benchmark Service
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
8/18
8
VMware IT Benchmark Products*
VMware IT Benchmark Tower
16 Cost towers and 2 Quality towers
Purchased a la carte or in 10 packs
250-400 metrics per Tower
VMware IT Benchmark Starter Kit
30 metrics across 3 cost towers
10 metrics from each tower
VMware IT Benchmark Basic
For SI/Sos
10 Cost towers
100 key high level metrics
All include standard (visual) and extract (.xls) reports
*acquired from iTHC in April 2012
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
9/18
9
Benchmarking Peer Comparisons
Industry benchmarking
Companies sharing the same industry, irrespective
of technology footprint
Provides insight into competition-driven
prioritization/urgency of potential IT cost-remediation
efforts
Functional benchmarking
Companies sharing a similar technology foot-print
and usage profile, irrespective of industry
Identifies where, how and relative magnitude of cost
saving opportunities
Industry and Functional Benchmarking areBoth Essential Tools In Supporting IT Cost
Rationalization Efforts
Combined, they provide the most complete and
actionable data for IT Cost Reduction Analysis
Distributed Computing
Help Desk
Midrange Server
Wide Area Data
Mainframe
Wireline
Wireless
PBX/VoIP
App lic ation Development
App lic ation Support
Business Unit
End User
Quantitative Towers
Quantitative Towers
Organizational Impacts
Quantitative/Org
Workload,
Complexity,Hardware
,
Software,S
taffing,
SourcingCost
s
Alignment,Satis
faction,
IndirectCo
sts
SCOPE OF SERVICES
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
10/18
10
95% NA 4.5% EMEA
.5% Other
VMware IT Benchmark Database
> 3500 Data Points/Metrics
Hundreds of unique peers
Percentiles and trendsIndustryand functional peers
Fresh data < 18 months rule
4 Geographies
N. America and EMEA strongest
MNC coverage of Asia and ANZ
21 Industries Banking Conglomerate Consumer Goods/Retail Education Electronics Financial Services GovernmentDoD GovernmentFed
GovernmentState/Local Healthcare Insurance ManufacturingAuto ManufacturingConsumables Manufacturingelectronics ManufacturingEquipment ManufacturingGeneral Oil, Gas, Petro Professional Services Telecommunications Utilities Print/Media
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
11/18
11
Benchmarking Metrics
PrimaryMetric
Top Level Metrics
Granular / ActionableMetrics
Primary indicator of overallcost performance
High level indicators, by category,of cost and efficiency
Ground level metrics providingclear understanding ofopportunities for improvementand where the enterprisestrengths lie.
Drive
Decisions
Virtualization
Cloud Computing
Outsourcing
Cost Reduction
IT Transformation
Rationalization
Consolidation
Investment
Strategies
Delivers Actionable, Repeatable, Resul ts
IT Becomes Consistent, Transparent, and Strategic !
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
12/18
12
Benchmark ContentMetrics Sampling
Easy-to-use interface for data collection
Rapidly verifies data integrity, results displayed in minutes
Data can be loaded into ITBM solutions
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
13/18
13
Why IT Benchmarking
Gain critical insights to help drive ITinvestment strategies
Compare your spend to peers
Discover potential cost savings
Complexity and its impact
Understand trade-offs across costs,
performance, and quality of service
Identi fy strengths, problems,
opportunities
Identi fy strategic alignment gaps
Verify perceived issues
13
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
14/18
14
VMware IT Benchmark Differentiation
Standard metrics vs. custom metrics
Data covers both Industry and functional peers
Data available on-demand without consult ing project
Data under 18 months old ensuring relevance
Integrated with VMware IT Business Management solut ions
Compare Benchmarks to your metrics in the same dashboard
Run what if analysis and forecasting to see impact
Track execution and savings within ITBM
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
15/18
15
VMware IT Business Management
Start with transparency of where you are
Measure and demonstrate
Fact based planning and comparison
Actionable strategy with periodic review
Your only solution for a complete
Evidence based approach
Industry and Peer comparisons
Automation of entire ITBM process
Cost, Quality and Risk
Top down and bottoms up validation
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
16/18
16
Thank You
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
17/18
FILL OUT
A SURVEY
EVERY COMPLETE SURVEY
IS ENTERED INTO
DRAWING FOR A
$25 VMWARE COMPANY
STORE GIFT CERTIFICATE
7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf
18/18
VMware IT Benchmarking
for Fact Based ITTransformation
Mahipal Lunia Lunia, VMware, Inc.
Steven Gall, VMware, Inc.
Matthew Stegall, VMware, Inc.
OPS-CIM2034
#vmworldops