SM271g04CapMgm

IBM Global Services

© 2005 IBM Corporation

ITIL ® is a Registered Trade Mark, and a Registered Community Trade Mark of the office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office

ITIL Service ManagerService Delivery

Capacity Management

Service Delivery – Capacity Management

2 © 2005 IBM CorporationITIL Service Manager Course | v1.0

Content

1. Goals, Scope and Definitions

2. Process

3. Controls

4. Implementation Considerations

5. Summary and Exercise



Content


2. Process

3. Controls





Capacity Management

Source: IPW Model is a trade mark of Quint Wellington and KPN Telecoms



Goals

The goal of Capacity Management is to match the IT infrastructure capacity to the demands of the business in the most cost-effective and timely manner. The process ensures that cost justifiable IT capacity always exists, and that it is matched to the current and future business needs.

Goals of Capacity Management:Ensuring a balance between cost and capacity Ensuring a balance between supply and demandDemand Management



Scope

Scope of the Capacity Management Process:Capacity Management covers both the life and development environment– All hardware– All networking equipment– All peripherals– All software– Human resources– Accomodations– Workloads

Capacity Management provides information about– Which components need to be upgraded – When to perform upgrades– What the costs are

Capacity Management supports the efficiency of other Service Management processes



Contribution

Contribution of the Capacity Management Process:

The driving force of Capacity Management is the business requirements

Capacity Management is based on– Business requirements– Existing structures of the company– Existing IT infrastructure

Source: OGC ITIL Book Service Delivery, Figure 6.2



Content


2. ProcessProcess activitiesRoles & ResponsibilitiesInterfaces Essentials

3. Controls





Process Activities – Sub-processes (1/3)

Sub-processes of Capacity Management:

Business Capacity ManagementIdentify and agree on Service Level RequirementsDesign, procure and modify configuration in appropriate timescalesUpdate CMDB and CDB (supporting Configuration Management)Verify and sign Service Level Agreements (supporting Service Level Management)





Service Capacity ManagementEnsure service targetsInform Service Level Management about Service breachesCapacity analysis (use of resources, peaks and troughs etc)





Resource Capacity ManagementMonitoring resource utilizationAwareness of new technologiesIdentify ongoing resilience of the IT infrastructure



Process Activities (1/2)

Process Activities Capacity Management:

Iterative ActionsMonitoringAnalysisTuningImplementation



Process Activities (2/2)

Process Activities Capacity Management:

Storage of Capacity Management dataDemand ManagementModelingApplication SizingProduction of the capacity plan



Process Activities in a flow chart – Capacity Management




Process Activities in a flow chart – Iterative activities




Roles & Responsibilities

Capacity Manager

Produce capacity planProduce management informationProduce Service Level thresholds and Service Level ReportsAssess new technology, HW and SW productsMake tuning recommendations

Sizing of proposed new systemsCarries out performance testingDriving the efficiency and effectiveness of the Capacity Management processIs represented on the CAB



Interfaces – Inputs

Inputs using for process activities:– Information about new technology (various

sources)– Business strategy (Business Perspective)– IT Operation Plan (ICT)– Incident Reports (Incident Mgmt)– Problem Reports (Problem Mgmt)– Configuration Details (Configuration Mgmt)– Forward Schedule of Changes (FSC) (Change

Mgmt)– Service Level information (Service Level Mgmt)– Cost information (Financial Mgmt)– IT Service continuity requirements (ITSCM) – CFIA for a new Service (Availability Mgmt)

Inputs using for process activities:– Information about new technology (various

sources)– Business strategy (Business Perspective)– IT Operation Plan (ICT)– Incident Reports (Incident Mgmt)– Problem Reports (Problem Mgmt)– Configuration Details (Configuration Mgmt)– Forward Schedule of Changes (FSC) (Change

Mgmt)– Service Level information (Service Level Mgmt)– Cost information (Financial Mgmt)– IT Service continuity requirements (ITSCM) – CFIA for a new Service (Availability Mgmt)

CapacityManagement



Interfaces – Outputs

Outcome needed by all sub-processes:– Information recorded in the CDB– Capacity Plan (Management, Financial Mgmt)– Recommendations about new servicesOutcome to other Service Management processes– Incident and Problem resolution support

(Incident Mgmt, Problem Mgmt) – Capacity Information linked to in CMDB

(Configuration Mgmt)– Change assessment information (Change

Mgmt)– CAB member recommendations (Change

Mgmt)– reports and information (Service Level Mgmt)– Capacity information of required resources

(Financial Mgmt, ITSCM, Availability Mgmt)

Outcome needed by all sub-processes:– Information recorded in the CDB– Capacity Plan (Management, Financial Mgmt)– Recommendations about new servicesOutcome to other Service Management processes– Incident and Problem resolution support

(Incident Mgmt, Problem Mgmt) – Capacity Information linked to in CMDB

(Configuration Mgmt)– Change assessment information (Change

Mgmt)– CAB member recommendations (Change

Mgmt)– reports and information (Service Level Mgmt)– Capacity information of required resources

(Financial Mgmt, ITSCM, Availability Mgmt)

CapacityManagement



Interfaces – Inputs and Outputs combined with Sub-Processes

Inputs:TechnologiesSLAs, SLR's, and service catalogueBusiness plans and strategyIS/IT plans and strategyBusiness requirements and volumesOperational scheduleDeployment and development plans and programsPlanning of future changesIncidents and problemsService reviewsSLA violationFinancial plansBudgets

Outputs:Capacity plansCDBBaselines and profilesThresholds and alarmsCapacity reports (regular, ad hoc, and in special cases)SLA and SLR recommendationsCosting and charging recommendationsProactive changes and service improvementsRevised operational scheduleEffectiveness reviewAudit reports

Capacity Management

Business Capacity ManagementTrend, forecast, model, prototype, size, and documentation of future business requirements

Service Capacity ManagementMonitor, analyze, tune, and report on service performance; establish baselines and profiles of use of services; Manage demand for service

Resource Capacity ManagementMonitor, analyze, run and report on utilization of components, establish baselines and profiles on use of components



Essentials – Capacity Data at the CDB

Business Data# of accounts and products# of calls into call centers# and location of branches# of registered users# of PC’sWorkloads

Service DataResponse timeSLA/SLR thresholds

Technical Datatechnical limitations of components

Financial DataFinancial plans and IT budgetsExternal supplierCMDB information

Utilization DataCPU, Storage, Memory, etc.

CapacityData Base

CDB

Service and component

based reports

Exception Reporting

Capacity Forecasts



Essentials – Capacity Plan

Introduction– Scope of planning– MethodsAssumptions and prerequisitesManagement summaryBusiness evaluations and scenariosService summary– Current service provision– ForecastsResource summary– Current resource usage– Resource forecasts

Options for service improvementCost modelRecommendations– Business benefit to expect– Potential impact (of not) carrying

out recommendations; risks involved

– Required resources– Costs: unique and ongoing



Content


2. Process

3. ControlsReports & KPI’sCosts





Reports & Key Performance Indicator‘s (KPI‘s)

Key Performance Indicators (KPI’s):Indicators for accuracy of business forecastsIndicators for the right knowledge of current and future technologiesIndicators for the ability to demonstrate cost-effectivenessIndicators for the ability to plan and implement the appropriate IT Capacity to match business needsMetrics for successful and effective Capacity ManagementIncreased organizational efficiency due to reduced downtime through reduced Capacity related incidents



Costs

Costs of not implementing Capacity Management:

Unexpected Capacity bottlenecks, which affects Business processesNo cross service capacity planningLack of transparency of IT department performance

Costs of implementing and maintaining the process:

Transfer costs Hardware costsSoftware costs Staff costs Accommodation costs



Content


2. Process

3. Controls

4. Implementation ConsiderationsEssentialsCritical Success FactorsBenefitsRisksPractical Recommendations




Essentials – Timing and Planning Activities

Where do we want to be?

Vision and business objectivesNomination of a Capacity ManagerMission statement and scope of the Capacity ManagementAwareness Session

Where are we now? AssessmentPeople – Process – Tools – Information according the Capacity Management

How do we get where we want to be?How do we know we have arrived?

Process implementation activities and MetricsQualification of activities, resources, funding and quality criteriaIdentification, design and development of support systemsGet AgreementTraining and Education Implementation and establishment of support tools and the new processCut-over the new processes



Essentials – Framework for Implementation

Framework for Implementation of Capacity Management:Planning the Process– Structure of the Capacity Management Process– Monitoring the availability of the Capacity Database– Integration in other IT Service Management Processes– Template for the capacity planImplementing the Process– Staff training– Establishing of monitoring and the CDB– Scope of the sub-processes Business, Service and Resources Capacity

Management



Critical Success Factors (CSF’s)

Critical Success Factors (CSF’s):Accurate business forecastsKnowledge of IT strategy understanding of current and future technologyability to demonstrate cost effectivenessEffective interaction with other Service Management processesability to plan and implement the appropriate IT capacity to match business need



Benefits

Benefits:“Planned buying is cheaper than panic buying“Increased efficiency and cost savings during service supplyReducing of risksMore confident forecastsValue to application lifecycleDeferred expenditure



Risks

Possible Problem Areas and Risks:Over expectationsVendor influenceLack of informationCapacity Management in a distributed environmentLevel of monitoring to be implementedLack of management commitment



Practical Recommendations

Practical Recommendations:The Capacity Management process should be reviewed for effectiveness and efficiency at regular intervals to ensure– The process produces the required output at the required times for the

appropriate audience – The process activities are cost-effective

The linkage between Capacity Management and Service Level Management is very important for a successful process establishment



Content


2. Process

3. Controls





Summary

The goal of Capacity Management is to match the IT infrastructure capacity to the demands of the business in the most cost-effective and timely manner. The process ensures that cost justifiable IT capacity always exists, and that it is matched to the current and future business needs.

Capacity Management Activities:Business Capacity ManagementService Capacity ManagementResource Capacity ManagementIterative Actions (Tuning)Demand ManagementModelingApplication SizingStorage of Capacity Management data Production of the capacity plan

Capacity Management Activities:Business Capacity ManagementService Capacity ManagementResource Capacity ManagementIterative Actions (Tuning)Demand ManagementModelingApplication SizingStorage of Capacity Management data Production of the capacity plan

Process EssentialsCapacity Data at the CDB (Capacity Data Base)Capacity Plan

Process EssentialsCapacity Data at the CDB (Capacity Data Base)Capacity Plan



Exercise Capacity Management (1/2)ScenarioYou are assigned as a Capacity Manager. There is an audit within PECUNIA to drive improvements and cost-savings for the IT department. You and your team have to show the need for the Capacity Management process. In parallel you get some IBM marketing information about “Capacity on Demand”. You and your team have to decide if this information is useful for PECUNIA.Task

Discuss with your team the need of the Capacity Management process (Scope, Benefits, organizational integration, …) and how well it worksExamine with your team the IBM marketing information and identify recommendations for the PECUNIA IT environment based on the IBM on demand solution Present your findings

Target GroupCIO and IT ManagementIndependent Auditor outside of PECUNIA

Results10 Minutes presentation including:– Documentation of the need and benefits of a Capacity Management process– Recommendations according IBM marketing materialTeamwork: One sheet, what went well, what could have been improved

HintsConsider the IBM marketing material shows two information the demanded capacity (blue lines) and the installed capacity (black points).Duration

Preparation with your team: 90 minutesPresentation: 10 MinutesDiscussion / Questions: 20 minutes



Exercise Capacity Management (2/2)IBM Marketing Material

Utility Pricing helps to adjust quicker to changingdemand and helps to avoid unmet capacity needs

Capacity, which is increased and paid for in a step-function manner

Used capacity

Unmet capacity need

Unused capacity

Used capacity

Unusedcapacity

Unused capacity that customers would be paying for in this flexible hosting example is approximately a 15% to a 20% reduction

Cap

acity

Lev

el

Cap

acity

Lev

el

Time Time

Traditional infrastructure pricing mechanism

Potential infrastructure pricing mechanism under a utility model

Illustrative

IBM Marketing Material

Utility Pricing helps to adjust quicker to changingdemand and helps to avoid unmet capacity needs

Capacity, which is increased and paid for in a step-function manner

Used capacity

Unmet capacity need

Unused capacity

Used capacity

Unusedcapacity

Unused capacity that customers would be paying for in this flexible hosting example is approximately a 15% to a 20% reduction

Cap

acity

Lev

el

Cap

acity

Lev

el

Time Time

Traditional infrastructure pricing mechanism

Potential infrastructure pricing mechanism under a utility model

Illustrative

SM271g04CapMgm

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