Cloud computing: Is ITIL still relevant?
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Transcript of Cloud computing: Is ITIL still relevant?
1 ©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
Cloud computing: Is ITIL still relevant? Randy SteinbergITIL and IT Service Management Specialist Leader, Deloitte ConsultingNicholas ClarkeSenior Consultant, Deloitte Consulting
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Table of contents
Cloud Computing Impact On IT Delivery 4
Cloud Computing and ITIL Relevancy 5
Two Case Studies 12
Service Strategy Considerations 13
Service Design Considerations 19
Service Transition Considerations 24
Service Operation Considerations 30
Continual Service Improvement Considerations 35
Takeaways and Questions 39
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Cloud computing represents a major shift in information technology architecture, altering the way services are sourced and delivered
Software and information are provided to computers and other devices on-demand, like a public utility
Services accessed via single point of access
Consumption billed on a utility or subscription basis with little or no upfront cost creating a low barrier to entry
Reduces upfront capital expenditures but may pay more for operating expenses
Some argue that the cloud is a paradigm shift, similar to the displacement of electricity generators by electricity grids early in the 20th century
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Operating Platform
Application
Network Security
Storage
Database
Infrastructure
EmailOther
Cloud computing represents a growing evolution in IT in which core IT services are getting sliced and diced across many providers
Organizations can now rent what they were earlier forced to make or own
This translates into collaborative relationships with service providers who provide access to capabilities and resources otherwise not available
IT is devolving into services that are delivered through patterns of collaborative exchanges
IT is rapidly becoming a service provider operating as a value chain network of services
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A capability to abstract this value chain in the form of services is critical to the future success of IT and its mission of delivering business value
Service Strateg
y
ITIL and IT Service Management are well
positioned for this
The Service Lifecycle can be leveraged to build this
value chain
Lack of a service approach will expose end users and the business to further complexities with no accountability for the
end services being delivered
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ITIL can be seen as supporting the Service Management layer within the HP Cloud Assure architecture, where its processes cover the entire value chain
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HP Cloud Assure Reference Architecture
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Operating as bundles of technologies and capabilities could pose serious risks for any IT organization migrating to cloud solutions
Overall loss of control as services are managed and controlled elsewhere
Operating complexity as external providers change platforms, services and versions of software based on their schedules and priorities – not yours
Security exposures for services working with sensitive data across the cloud
Poor user/customer satisfaction related to confusion over how to handle service outages and finger pointing between suppliers
Key service features that get dropped or fall through the cracks between providers
Risks of getting locked into poor supplier arrangements – over paying for services or under providing for actual business demand
Legal exposures and regulatory compliance risks with suppliers that use differing sets of controls
Locked into arrangements with suppliers that can’t deliver needed performance or meet business demand volumes
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Core IT management disciplines have not changed – just shifted from the IT organization to the cloud service provider
ITIL for the Cloud VendorITIL for the IT Organization
Architect service solutions by piecing together Cloud service providers and their service offerings
Focus on integrating and securing services from suppliers
Manage and control a complex mix of releases / changes across a wide range of suppliers’ varying schedules and priorities
Ensure expected value is being delivered, and service disruptions responses are coordinated across suppliers
Provide the needed transparency of results and coordinated improvement efforts across many providers
Identify services provided, their value and costs; demand management is key for providing on-demand services
Bundle service packages for consumption – capacity management key to disruption-free, on-demand delivery
Provide customers with easy, smooth and safe ways to transition and access provided services
Ensure that expected value is being delivered and that services are not disrupted
Provide a means for staying ahead of competition and gauging customer satisfaction or business will be lost
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The ITIL v3 Library Lifecycle Books
ITIL is well positioned help – nearly all the ITIL disciplines are used when pulling services delivered via the cloud together
IT organizations must clearly understand:The services they operate with (Service Portfolio Mgmt, Service Catalog Mgmt)How services are networked and bundled to deliver value (Configuration Mgmt, Knowledge Mgmt, Service Level Mgmt, Supplier Mgmt)Service costs (IT Financial Mgmt)Service Demand (Demand Mgmt, Capacity Mgmt)How services will be put on the cloud operating model (Service Strategy, Capacity Mgmt, Availability Mgmt, Information Security Mgmt, IT Service Continuity Mgmt)Managing transitions as service providers (or their offerings) move in and out of the network (Change Mgmt, Release and Deployment Mgmt, Configuration Mgmt, Service Testing, Evaluation)Delivering services on the cloud operating model (Incident Mgmt, Problem Mgmt, Access Mgmt, Event Mgmt, Request Fulfillment)
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The current set of HP IT Service Management Tools can support your cloud services program when looking at either vendor, internal or hybrid solutions
Demand Mgt.HP PPM
BusinessOutcomes(desired /realized)
Value
Users
StrategyMgt.
Service Strategy
Financial MgtHP PPM
HP Asset Mgr
Service PortfolioMgt.
HP PPM
AccessMgt.
Request Fulfillment
HP Svc Mgr
Incident MgtHP Svc Mgr
Event Mgt. HP Ops Mgr
HP BACHP NNM
OperationalActivities
Problem Mgt.
HP Svc Mgr
ServiceEvaluation
Release & Deployment.
HP DCA CenterHP Client AutomationRelease Control (RC)
Validation & TestingHP QC/PC
HP Application Security Center
TransitionPlanning&Support
HP Svc MgruCMDB
Asset/Config. MgtHP uCMDB/DDMaeHP Asset Mgr/DDMi
(Federated)
Knowledge Mgt.HP Svc Mgr
Change Mgt.HP Svc Mgr
Bus. Impact Anal.IT Perf. Analytics
SupplierMgt
HP Asset Mgr
AvailabilityMgt.
CapacityMgt.
IT Service Continuity
Mgt.
InformationSecurity
Mgt.
ServiceLevel Mgt.
HP Svc Mgr
Svc Catalog Mgt
HP Svc Mgr
ServiceMeasurement
ServiceReporting
ServiceImprovement
Service Transition
Service Operation
Continual Service Improvement
Service DesignCustomer/ Business
Projects
Business IT
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Case #1Large Healthcare Company
Case #2Applications Management Provider
Unsuccessful Cloud Experience Successful Cloud Experience
Needed social networking site to support M&A integration activities
Circumvented IT group to launch it leveraging Cloud services
Handed off to IT when done
User volume brought the site down
Site was cut off – bad press and embarrassment for company senior executives
Set strategy to leverage Cloud delivery as a way to lower development costs, increase delivery speed and gain competitive advantage
Underpinned current service offerings with Cloud-based delivery services
Was able to slash delivery costs by almost 90%
Was able to provision infrastructure in days versus weeks
No Service Management Service Management Considered From The Start
Two cloud computing case studies demonstrate the sharp difference between using a service management approach versus not
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Process Purpose
Strategy Generation
Identify the IT services, investments, partners and delivery channels to meet customer needs and outcomes
Service Portfolio Management
Manage the investment portfolio of all the services available to customers and users
Demand Management
Identify patterns of business activity that consume services and manage activities to influence demand
IT Financial Management
Manage the provider’s budgeting, accounting and chargeback for IT services
Service Strategy – considerations for Cloud Delivery Solutions
Key Questions To Be Answered
What Cloud Operating Model(s) will be used?
What elements of services will be placed in the Cloud?
Which service partners will we utilize?
Who are my customers and what are their needs?
What services will need to be provided?
How will business demand consume services?
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Cloud computing will not change the strategic objectives or the market spaces of a service, it provides new avenues to reach those objectives
Strategic Asset
Drive Business Value
Cloud Services
Input Output
Strategic Objectives
Additional Enterprise
Stakeholders
Service Strategy
Closely evaluating the strategy generation process, and verifying its alignment with the needs of your organization is a critical step.
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The nature of cloud computing may require changes in how services are charged, and how IT organizations allocate cloud services costs
Pay Per Use Provider
Input Output
Service Portfolio
Service Cost
Examine Demand Factors
Develop Meaningful Unit Charge
Apply Charge Based on Usage
Financial management in ITIL terms requires you to identify the bundles of services being delivered, the delivery costs for each
service, and how demand consumes those services.
Allocations
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Input Output
Existing Service Portfolio
Provider Service
Offerings
Examine Services
Bundle Services
Integrate Into Existing Delivery Chain
Updated Service Portfolio
Cloud computing forces IT to take a hard look at the services they deliver, and how these are bundled to add value for varying stakeholders
A service portfolio must be augmented to include Cloud services being provided, what level of investment is being made in these services, how they are being sourced, bundled, and providing value to the business.
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Service Strategy – case summary
Case #2 - Successful
Cloud was seen as a strategic choice matched to business goals for lower costs, faster delivery and competitive advantage
IT saw a distinct advantage in quickly embracing Cloud technologies to gain competitive advantage
Distinct Cloud delivery solutions put into place for specific customer sets (demos, development, research, etc.)
Strategic choices in partners set from the start to handle ongoing management and support of the solution
Case #1 - Unsuccessful
Cloud was used as a way to bypass the IT organization
IT was reacting to current capabilities versus considering what the business was looking for
No consideration for the demand of business volumes that needed to be supported
Little consideration for partners to provide ongoing support and management of the solution post deployment
Service Strategy Not In Place Service Strategy In Place
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Project & Portfolio Management (PPM) Center [fka Kintana & Mercury ITG]
Resource Management
Demand Management
Deployment Management
Time Management
Universal CMDB (UCMDB) and Discovery & Dependency Mapping ae (DDMae)
HP Project & Portfolio Management (PPM) Software Solution Suite
Software-as-a-Service
Portfolio Management
Program Management
Project Management
Financial Management
PPM –
ITILv3 Service StrategyDemand, Portfolio, and Financial Management Processes
Once an effective process is defined to support your cloud computing program, select ITSM tools to realize the capabilities and processes
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Process PurposeService Catalog Management
Publish , manage and communicate which services are available to customers and users
Service Level Management
Negotiate, monitor, report and measure SLAs and OLAs
Availability Management
Define, measure, analyze and improve the availability of services
Capacity Management
Ensure appropriate infrastructure capacity in place to meet service demand volumes
Information Security Management
Protect the confidentiality, integrity and availability of services
IT Service Continuity Management
Ensure services can be recovered in the event of a major business disruption
Supplier Management
Ensure suppliers support the needs of the business and meet their contractual obligations
Service Design - considerations for Cloud Delivery Solutions
Key Cloud Questions To Be AnsweredHow will services be bundled and packaged for consumption?
What SLAs and OLAs will be needed to meet business objectives?
How will we ensure availability of services in the event of a major business disruption?
How will we secure our services and data across the Cloud?
What supplier agreements and contracts need to be in place?
How will we communicate available services to the business?
What capacity needs to be in place to meet business demand?
How will services integrate and sit on the Cloud Operating Model?
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Design the cloud computing solution to provide maximum benefits to business instead of treating it solely as technology innovationService catalog management, service level management, and capacity management processes are necessary to achieve an integrated Cloud computing solution to complement business needs
Business RequirementsTechnical Requirements
Business Needs
Cloud Solution
Effective coordinated execution of these customer-facing processes will help to define design requirements to build the stable Cloud solution that
will benefit the business in the long term.
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Input Output
Supplier Management is the critical process necessary to strengthen relationships between the business and vendor Cloud computing
service providers
Cloud Vendors
Valued Business Partner
Provide Understanding
of Business Needs
Measure and Compare Supplier
Performance
Align Contracts with Business
Needs
Maximize Return On Investment (ROI) By Selecting the Right Provider Partner
100+ Cloud Computing Vendors
Cloud computing requires a renewed effort in supplier management processes to ensure meeting terms, conditions, and target of agreements
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Service Design – case summary
Case #2 - Successful
Capacity is built into the solutions as they are offered and tailored for customers
Offerings described in a Service Catalog that also sets operating levels to be delivered – each service in the catalog has a Service Owner accountable for the successful delivery of that service
Cloud operating model was part of a comprehensive delivery architecture that supported the Service Catalog
Recovery considerations for major failures were a strategic part of the design and agreements with key suppliers
Case #1 - Unsuccessful
Solution not scaled for capacity to handle business volumes
No agreements in place for levels of service, operating roles and responsibilities
Cloud operating model was considered only for the specific solution being deployed
Little or no consideration for recovery in the event of major failures
Service Design Not In Place Service Design In Place
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Software-as-a-Service
Business Availability Center (BAC) [fka Mercury]²
Operations Center [fka Openview]¹
Network Management Center [fka Openview]¹
HP Business Service Management (BSM) Software Solution Suite
BAC Dashboard Diagnostics¹ SiteScope¹
Operations Manager (OM) OMi Smart Plugins (SPI)
Network Node Manager (NNMi) Smart Plugins (SPI)
Real User Monitor (RUM) Business Process Monitor (BPM) TransactionVision
Performance Manager/Agent² Reporter² GlancePlus Pak²
Universal CMDB (UCMDB) and Discovery & Dependency Mapping ae (DDMae)
ITILv3 Service Operation¹ ITILv3 Service Design² Event, Problem Management Processes Availability, Capacity Mgmt Processes
Selecting the correct tools to support a well-defined Service Design program can dramatically improve the maturity level of your cloud services capability
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Process PurposeTransition Planning and Support
Plan and coordinate activities for transitioning services to the live production environment
Change Management
Protect services while changes are being made
Release and Deployment Management
Manage releases and their deployment to live production
Service Asset & Configuration Management
Maintain information about configuration items used to support services and their relationships
Service Validation and Testing
Validate that new services and changes will match design and business objectives
Knowledge Management
Gather, analyze, store and share knowledge to reduce the need for rediscovery of information
Evaluation Ensure a service will meet intended business objectives when it is transitioned
Service Transition – considerations for Cloud Delivery Solutions
Key Questions To Be Answered
How will services be transitioned to a live production state?
How will changes be managed across providers?
How will releases and deployments be coordinated across providers?
How will we test services across providers?
What operating information should we retain across providers?
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Transition Planning And Support Activities
Deployment Plan
Input Output
Planned Changes
Cloud Services
Since a vendor Cloud is a shared responsibility environment, having an inclusive, structured Transition Planning and Support process and a
responsible Project Planer is a critical success factor
Initiate
Plan
ExecuteControl
Clos
e
Project ManagementMethodology Project Documentation
Project Planner
Transition planning and support processes plan and coordinate resources to deploy a cloud service within predicted cost, time, and quality estimates
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Change Management Activities
R = Responsible
A = Accountable
C = Consulted
I = Informed
Cloud Vendor Organization
Change management support R A, C
Request for Change (RFC)logging and preevaluation A R
RFC classification C R
Assessment of urgent RFC by the Enterprise Change Advisory Board (ECAB) I R
Change assessment by the change manager C R
Change assessment by the CAB I R
Change scheduling R C
Change evaluation A R
Planned Changes
Input Output
Change Requests
Cloud Services
To achieve successful change management in a vendor Cloud services environment, the organization and Cloud computing provider must agree on
roles and responsibilities as they both participate in major changes.
Coordination between IT and cloud vendors is critical to ensure that beneficial changes can be made minimum disruption to IT services
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Cloud vendors need to be integrated with release/deployment processes to protect the integrity of the live environment when releasing components
Service Management Activities
Change Release
Input Output
Deployment Plan
Cloud Services
Collaboration between the Cloud computing services vendor and the organization is key to successful release management during
deployments to an operating environment
Agreed Maintenance WindowsJoint Release Planning
Release Documentation
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Service Transition – case summary
Case #2 - Successful
Cloud solutions were carefully planned and transitioned with IT staff handling ongoing operations
Change and release management procedures were agreed and contracted for between IT and suppliers
Consistent testing and pilots conducted prior to releasing Cloud solutions to clients
Case #1 - Unsuccessful
Cloud solution was “tossed over the wall” to the IT organization for ongoing support
Little or no consideration for handling changes and releases between IT and the Cloud Vendor
Little or no consideration for testing the Cloud solution to ensure it was operationally ready
Service Transition Not In Place Service Transition In Place
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HP IT Service Management (ITSM) Software Solution Suite
Software-as-a-Service
Service Management Center [fka Peregrine & Openview]
Asset Manager 5.x³ Discovery & Dependency Mapping Inventory (DDMi) IT Financial Management (ITFM) Contract Management Chargeback Procurement Software Asset Management (SAM) Portfolio Management Connect-it¹,²,³ DecisionCenter¹,²,³ Business Impact Analytics IT Performance Analytics Optimization Module Planning and Analysis Module
Service Manager 7.1xServiceDesk¹Incident Management (OGC Gold)¹Problem Management (OGC Gold)¹Change Management (OGC Gold)³Asset/Configuration Mgmt (OGC Gold)³Knowledge Management (OGC Gold)³Service Catalog (OGC Gold)²Service Level Management (OGC Gold)²Request (Fulfillment) Mgmt (OGC Gold)¹Service Portfolio Management (OGC Gold)2
Universal CMDB (UCMDB) and Discovery & Dependency Mapping ae (DDMae)³
ITILv3 Service Operation¹ ITILv3 Service Design² ITIlv3 Service Transition³ Incident, Problem, Request SLM, Service Catalog Change, Asset/Config, KM Management Processes Processes Management Processes
Tools can provide the capabilities required to support the core ITIL processes to support your transition to operating a unified cloud computing program
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Process Purpose
Incident Management
Restore an IT service to normal state operations as quickly as possible
Problem Management
Prevent incidents from happening or minimize their impacts by identifying their root causes
Event Management
Manage operational events and communicate them to appropriate parties for further action
Access Management
Ensure only authorized users are allowed access to services
Request Fulfillment
Manage the lifecycle of all service requests
Service Operation – considerations for Cloud Delivery Solutions
Key Questions To Be Answered
How will incidents and problems be managed across providers?
What events need to be generated and visible across and between providers?
How do we ensure only authorized users have access to services?
How will we prioritize and coordinate user service requests that may need provider involvement?
How will we coordinate operational control activities across providers?
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Monitoring for security compliance, privacy and access, reliability, and availability of IT services and components pose increased challenges
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Internal IT Cloud Vendor
Service Desk • Visibility of the components • Impact assessment• Provider failure awareness
• Define scope of Cloud Vendor support
• Provide access to visibility tools
Technical Management
• Increased focus on areas of technical responsibility
• Accountability and handoffs between the provider and IT
• Oversee the management of hardware and network assets
• Own infrastructure and operations staff
Application Management
• Accurate application portfolio • Managing application changes• Monitoring performance • Managing application suppliers
• Multiple application servers• Collections of virtual machines • Multiple nodes • Multiple locations
IT Operations Management
• Certain operational activities may need to remain within IT
• Holistic services thinking view• Adherence to service levels • No visibility at component level
• Execute and monitor operational activities
• Manage physical environment• No linkages back to business
services affected by Cloud services
Service Operations Cloud computing delivery traits from an Internal IT and Cloud Vendor perspective
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Sharing the high number of nodes in vendor clouds sees failed configuration components as the norm rather than the exception
Internal IT Cloud Vendor
Incident / Problem Management
• Must leverage new problem diagnosis and testing tools
• New contract details, such as scope and support are required
• Defines scope of Cloud Vendor support
• Provides access to visibility tools
Event Management • Creative monitoring solutions, such as use of synthetic transaction
• Escalates events that have meaning for IT management
Request Fulfillment
• Communications and understanding between organizations
• Consistent internal process
• Clearly defined roles and responsibilities
Access Management
• Access control schemes will have to accommodate global user bases by securing service access methods throughout the Cloud
• Visibility into security and access policies
• Audit these policies
Service Operations Cloud computing delivery traits from an Internal IT and Cloud Vendor perspective
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HP Business Service Automation (BSA) Software Solution Suite
Software-as-a-Service
Data Center Automation Center [fka Opsware]² Operations Orchestrations (OO) Runbook Automation¹,² Server Automation (SA) Network Automation (NA) Storage Essentials (SE/SRM)
Client Automation Center [fka Novadigm Radia]²
Universal CMDB (UCMDB) and Discovery & Dependency Mapping ae (DDMae)
Services Automation Visualization (SAV) Services Automation Reporter (SAR) BSA Essentials (fka Live Network) Release Control (RC)
Client Automation Enterprise (CAE)
ITILv3 Service Operation¹ ITIlv3 Service Transition² Incident, Problem, Event Mgmt Processes Release/Deploy, Asset/Configuration Mgmt Processes
As you refine your and integrate cloud delivery with your overall service management capability, look to improve operations through automation
Service Management Center [fka Peregrine & Openview] Asset Manager 5.x³ Service Manager 7.1x
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Service Operation – case summary
Case #2 - Successful
Incidents occur from time to time but minimally impact ongoing operations
No occurrence of incidents related to how services are used and consumed
Clear ownership over operational control of services and who is responsible
Case #1 - Unsuccessful
Multiple incidents occurred that shut down operation of the site
IT blindsided by incidents related to business volumes
Unclear responsibilities and finger pointing when outages occurred
Service Operation Not In Place Service Operation In Place
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Process Purpose
7-Step Improvement Process
Measure services to proactively identify opportunities for improvement
Service Reporting Produce and communicate reports for achievements and trends against service levels
Service Measurement
Put appropriate metrics into place that provide information for proactive decision making
Continual Service Improvement - considerations for Cloud Solutions
Key Questions To Be Answered
What key measurements will be needed to ensure services are working across the Cloud?
What measurements should be taken by suppliers to ensure service objectives will be met?
What information and reports will we require from our providers?
How do we ensure that our providers implement key improvements on a timely basis in line with our business needs?
How will we work with our providers to proactively improve services?
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The melding of cloud centric approaches with CSI by IT can dramatically speed up realignment and improvement processes
• IT more dynamic and responsive to the needs of the business
• Cutting edge applications are rolled out and adopted by the end user at a much higher rate
• Additional users and teams will find applications that better meet their requirements
Traditional CSI outputs
• Introduce new service offerings
• Improve existing offerings
• Connects IT with customers
• Improvement space restricted by rigid systems
Cloud and CSI outputs
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The nature of cloud computing may lead to challenges for CSI such as misalignment between business needs and technical solution
Public, Private, and Hybrid Clouds
User Requirements
Outspoken change advocates
Limited product influence
Delegation of content
Existing AlignmentCloud Vendor
Business Needs
Provider Policies
Establishing KPIs and SLAs with Cloud Vendors helps communicate the expectation that change requests will be acted upon in an
acceptable manner and time frame
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Continual Service Improvement – Case Summary
Case #2 - Successful
Key measurements for availability and customer satisfaction are in place and monitored over time
Service offerings and number of clients using those services are continuing to expand
Senior management is receiving accolades for the successful solution
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Case #1 - Unsuccessful
No provision for CSI activities was in place and IT was reacting to events versus controlling them
Management made the determination that reasonable improvements could not be made and the site was shut down
Senior management was embarrassed by the failed solution
CSI Not In Place CSI In Place
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IT is devolving into a network of services that can be provided from anywhere – aided and abetted by advancements in Cloud computing technology
The service mindset that ITIL brings is key to operating in a Cloud world – the disciplines still exist but may have shifted emphasis from the IT Organization to the Cloud Vendor
Continuing to operate as bundles of technologies and capabilities might lead to serious operational risk
Key takeaways
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The ITIL Service Lifecycle and HP software supporting its processes can be leveraged as a design, build, deploy and operate vehicle for
constructing Cloud-based solutions!
Q&A
41 ©2010 Hewlett-Packard Development Company, L.P.
To learn more on this topic, and to connect with your peers after the conference, visit the HP Software
Solutions Community:www.hp.com/go/swcommunity
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