Download - Cloud Service Management. A New Beginning.

Cloud Service ManagementA New Beginning

What You Need to Know

Mark O’Loughlin

Copyright © Red Circle Strategies 2014


Introduction• Service Management Principal• Consultant

- Service Management- Service Architect / Designer

• Author The Service Catalog• ITIL Master• ITIL Trainer • Director itSMF Ireland• Director Cloud Credential Council• Member of WG25CA (ISO/IEC 20000 workgroup)

• Author – Cloud Service Management - Course


Organizations


Promote the MessageTwitter @oloughlinmark

#ITSM14

Email [email protected]

[email protected]

[email protected]

Blog www.markoloughlin.org


Agenda• The utility of cloud computing

• The ability to adopt cloud successfully

• The capability of using cloud


The Utility of Cloud


Utility ModelUtility Power• In the 1800-early 1900s each factory built a power plant

beside it.

• Alternating current allowed for long distance power transmission

• Throughout early 1900s internal power plants were outsourced to utility power providers


What is Cloud

Cloud computing is

not new technology

Cloud computing is seen as a

new way of delivering

computing resources

Cloud computing is the

delivery of computing as a

service, rather than a product,

where shared resources are

provided as a utility over a

network (internet)


Every Minute of the Day

9

Are you “In the Cloud”?

What are you using?

Many people are “In the

Cloud” without realising it.


Cloud is DisruptiveCloud is changing how:• IT services are delivered• Businesses offer services to customers• Customers interact with business

New cost models are being introduced-OPEX is replacing CAPEX spend-New routes to market, quicker

New approaches to IT & Business management required


Cloud is DisruptiveThe business will expect faster, quicker, cheaper, better, agile.

How will IT service providers adapt to the changes cloud is introducing?

What can you deliver with cloud?

How will you manage the development and operation of cloud based services?

Are your processes agile? See first point.


The Utility of IT

How will you adapt to the utility of cloud?

How will your customers adapt to the ability of cloud?


Utility Cloud War• Amazon

• Google

• Microsoft

• Cloud war is on – Prices are dropping

• Interesting fact. Amazon has yet to make £1 profit from cloud


The Ability of Cloud


Cloud and ITSM Convergence

Updated IT & Business practices will be required to realise and manage the benefits from cloud computing


Benefits of Cloud

• Scalable

• On-demand

• Pay-per-use

• Elastic

• Less CAPEX, more OPEX

• Quicker to implement IT services

Even though cloud is disruptive there are many benefits

• Flexibility

• Scalability

• Dynamic

• Cost effective

• Disruptive

• Challenges the market


Benefits of Cloud

17


What Do You Need To Know


IT Delivery Model Is ChangingSurvey

How many organisations here today have internal IT departments?

Do you know the future model of IT using cloud?


Todays IT = Hybrid IT

Legacy IT

Traditional IT

Cloud Computing

+

+=

How to Address

IntegrateSIAM – Service Integration and Management

Adopt a Hybrid IT model


2013 PresentationSee this presentation for more details.

• IT Becomes The Broker

• SLA Meltdown

• Demanding Times

• Losing Control

• The Model Gets Cloudy

http://www.redcirclestrategies.com/Downloads/Mark_OLoughlin_itSMFUK_Its_Getting_Cloudy_in_IT_Service_Management.pdf

http://www.redcirclestrategies.com/Downloads/Mark_OLoughlin_itSMFUK_Its_Getting_Cloudy_in_IT_Service_Management.pdf


2014 Presentation

• Service Catalogue - Cloud Market Place

• Change Management

• Service Disintermediation

• Budget

• Process


Service Catalogue - Cloud Market Place1) IT needs a catalogue to market and sell your services

2) IT are likely to use a service catalogue to procure IT Services

Example UK Cloud Store

Source: http://govstore.service.gov.uk/cloudstore/

http://govstore.service.gov.uk/cloudstore/


Change ManagementWhy Does Change Management Need to Adapt for Cloud Computing?

– To avail of the on-demand attributes of cloud computing which helps achieve IT and business goals, objectives, and strategies

– To help control reducing and retiring cloud computing and cloud-based services to streamline costs


Change ManagementAn agile and adaptive approach to change management for hybrid IT will require:

1. Traditional change management structures.

2. A flexible approach for managing smaller changes more often, for example, DevOps type changes.

3. Integration between traditional IT and DevOps (agile) approaches.

4. Clearly defined change management processes and procedures.


Service Disintermediation

• End-users purchasing cloud services directly

• End-users not going through the service desk or IT Channels

• e.g. for a SaaS application – online invoicing application

Disintermediation is the removal of intermediaries in a supply chain, or “cutting out the middleman”.


Budget • How to deal with the shift from CAPEX to OPEX?

– Managing of demand from both supplier and provider sides including procurement

– Identifying if SaaS subscriptions will increase costs, for example, if a SaaS application is more heavily used than originally planned

– Identifying if the procurement department understand cloud services, how to buy cloud services, and so on

– Identifying if there is enough OPEX to meet the forecast and actual demand

– Linking to cloud marketplace or a cloud service catalogue where costs are clearly defined


Process• Are you policies rigid or flexible?

• Have you adapted your processes to cater for cloud based services?

Change Management Supplier Management

Service Catalogue Transition Planning

Procurement Availability Management

Demand Management Capacity Management

Incident Management Release Management

Problem Management Event Management


Policy• Does your organisation have a policy on approved usage

of cloud services

• In not, what are the risks?


The Capability of Using Cloud


What Is Your Capability?Have you the capability and knowledge to

• Adopt cloud

• Benefit from cloud

• Transform cloud

• Manage cloud

• Train for cloud

• Secure cloud

• …


Where is Best Practice for Cloud?


Market Potential€288 million represents what?

• Additional labor costs for New York’s Metropolitan Transportation Authority in 2014

• What Santa Barbara City College needs to fund four additional buildings

• What the Social Security Administration in Washington, USA spent on a failed IT project


Market Potential

€288 million is spent yearly on ITIL training and exams (approximately)


ITIL Training InvestmentGlobal Investment

• 260,000 ITIL Foundation Exams

• 60,000 ITIL Intermediate (incl. MALC)

• 320,000 ITIL Exams per year

Courses Number Costs Sub-Totals Totals

ITIL Foundation 260,000 €800 208,000,000

Intermediates 60,000 €800 48,000,000 256,000,000

Exams

ITIL Foundation 260,000 €100 €26,000,000

Intermediates 60,000 €100 €6,000,000 32,000,000

Prices Average / Estimate 288,000,000


Cloud Training InvestmentHow much is spent on cloud training?

Training just 10% of those already ITIL certified would equal 36,000 Professional Cloud Service Management certified people!

Cloud Service

Manager

Cloud Security

Manager

Cloud Solutions

Architect Cloud

Administrator

Cloud

Developer

CCC Professional

CCC – Cloud

Technology Associate

CompTIA – Cloud

Essentials

CCC –

Virtualization

Essentials

IT Professional

The ITpreneurs Cloud Portfolio

Copyright © 2014 ITpreneurs. All rights reserved.


Cloud Service ManagerModules

• Cloud Service Management Fundamentals

• Cloud Service Management Roles

• Cloud Service Strategy

• Cloud Service Design, Deployment and On-Boarding

• Cloud Service Management

• Cloud Service Economics

• Cloud Service Governance

• Showing the Value of Cloud Services

• Popular Service Management Frameworks


Cloud Service Manager

Audience:● IT Managers and CIOs● Service Managers (with or without an ITIL background)● Service Management Professionals● Cloud Strategy and Management Consultants● Service Architects, Technical Pre-Sales Consultants● IT Professionals

What they learn:● Analyze an organization's strategic assets and capabilities to successfully design, deploy,

and run cloud services● Illustrate the benefits and drive the adoption of cloud-based services Select appropriate

structures for designing, deploying, and running cloud-based services within traditional IT organizations

● Demonstrate how to link cloud value back to IT strategy

Why they need it:IT management is under pressure to deliver more agile IT services and adapt to change. Organizations are adopting strategies that include cloud computing in order to meet these challenges and offer repeatable, flexible and scalable services. Service managers must help organizations optimally ensure measurable service delivery and management in cloud environments.

Cloud service design, deployment and run course

https://www.itpreneurs.com/course/professional-cloud-service-manager/

https://www.itpreneurs.com/course/professional-cloud-service-manager/


Helpful Resources

Axelos White Paper on ITIL and Cloud Computinghttp://www.redcirclestrategies.com/itil-and-cloud-computing-whitepaper-axelos.html

http://www.redcirclestrategies.com/itil-and-cloud-computing-whitepaper-axelos.html


2013 PresentationSee this presentation for more details.

• IT Becomes The Broker

• SLA Meltdown

• Demanding Times

• Losing Control

• The Model Gets Cloudy

http://conference.itsmf.co.uk/e6ajwt/8/38/2E2

http://conference.itsmf.co.uk/e6ajwt/8/38/2E2


Cloud Service ManagementA New Beginning

What You Need to Know

Mark O’Loughlin
