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Adding Value to Your e-business with IBM Tivoli Performance & Availability SolutionsManage Your Technology — Master Your Business Customer Name Speaker Name
Agenda Introductions Today’s Business EnvironmentThe Tivoli Approach to adding value: Monitoring, Event Correlation, Business Impact Management; Measuring the Value the P&A Solution Brings Questions & Answers 2 | © Copyright IBM Corporation All Rights Reserved
e-business InitiativesAchieve business goals - revenue and profit Protect and enhance the company’s brand image Attract and keep customers Effectively transact business with trading partners Meet service level commitments Grow the e-business Manage Costs To better understand the business and systems management needs for e-Business, Tivoli contacted over 400 customers and business partners to determine their mission critical e-business issues. These issues were identified as the most important. 3 | © Copyright IBM Corporation All Rights Reserved
The Performance and Availability ChallengesIT visibility at executive level Line-of-Business driven initiatives The cost of downtime Increasing complexity New applications and middleware How do I know I’m doing the right things? Cost of downtime for your company makes sense when measuring your costs and revenues. However, there are four general areas when considering the cost of downtime. 1. What is the cost of lost productivity? There are direct costs associated with half of the support group taking a coffee break when a server goes down. What happens when the group taking a break, since servers are down, are your support reps. Your best customers are calling to find out what’s going on and no one is there to help them? 2. How much revenue is lost when services are unavailable. When talking about e-business, the costs are as easy to calculate as the lost revenue at Wal-Mart when all the cash registers are off-line. But suppose a service outage is regulated by a government agency. Then, you have to consider the costs of paying penalties. 3. There was a recent example of famous e-business that had an outage for several hours, and they losses were estimated to be in the millions of dollars. How did this affect their market capitalization? And once revenue and market cap drop, what happens to your ability to secure credit? 4. Then there are the miscellaneous expenses. How much do you have to pay your top people when a service is down? One group may have to work many hours of overtime (at salary x 1.5 rate) to get the service back up and running. Or, consider the Wal-Mart example: if the tills were down, they wouldn’t shut their doors. The would possibly bring in everyone they could and do manual cash receipts using hand-held scanners, radios, and and lots of management overseeing the operation. How many extra people would have to be used to handle this? 4 | © Copyright IBM Corporation All Rights Reserved
Address the Challenge with TivoliTivoli simplifies Performance & Availability management using a three layer approach that maximizes e-business infrastructure return-on-investment Business Impact Management Line of business views, workflow, business process integration cross discipline analysis, predict, optimize, provision,analyze, account, report Event Correlation and Automation Cross system and domain root cause analysis Monitoring Discover, collect metrics, probe (e.g., user experience), perform local analysis, filter, concentrate, determine root cause, take automated action Master Your Business Contract, measure, report, and manage committed service levels Understand the impact of IT performance on the business Manage Your Technology Reduce the cost of downtime Gain operational efficiency through automation Tivoli will attack the market for P&A management using a simple three layer approach that matches the key customer needs within each category. The key values transcend all three categories: Rapid time to value, ease of use, and quality. Customers require immediate benefit from their investment in Tivoli products. Tivoli is providing out-of-the-box best practices to get customers up and running, right away, whether they buy individual products or integrated solutions. Tivoli has appointed a quality czar and lead architects for each layer and implemented quality plans for all offerings. The APAR backlog has been reduced 40% since June. All new releases must have all sev 1 and sev 2 defects fixed prior to release. This slide shows how Tivoli is approaching the set of solutions that make up Performance and Availability. This “Marketecture” is based on Tivoli’s experience in managing thousands of customers around the world. At the lowest level is the gold or yellow box that represents the monitoring that is needed to begin the process. Here is where the metrics are collected, local analysis performed, and checks for persistence of situations in a customer’s environment are done. Here the metrics are collected that will feed the higher layers of the stack and solve any problems that are local to a single resource. As you move to the green box, this is where the information will be combined from multiple resources, the information correlated, and action taken to solve or prevent problems across multiple systems and domains. There is a significant amount of automation that is provided to ensure customers have the highest performance and availability and this is where it is provided. At the top layer, the blue box, this is where the business impact of changes to a customer’s environment is determined. Here the view of the LOB executive is taken to see what the impact of any change is to business processes. At this high level, the historical data is looked at to ensure that Service Level Agreements are met, as well as doing any capacity planning to ensure the needed performance as situations change. 5 | © Copyright IBM Corporation All Rights Reserved
Managing e-business ResourcesBrowsers Application Servers Web/Edge Terminals Host Systems Host Databases Clients Distributed Databases IDENTIFY problems at the resource level NOTIFY operations that there is a problem Take action to CURE problems when possible 6 | © Copyright IBM Corporation All Rights Reserved
What Do You Need From a SolutionWhat the experts say ... Business impact measurement Link user experience with infrastructure performance IT activity prioritization Quick implementation Must have strategy to deliver all of these to be successful 7 | © Copyright IBM Corporation All Rights Reserved
Tivoli Performance & Availability ValueReduce Costs Provides flexibility to manage emerging e-business applications without changing management infrastructure Use fewer resources to detect and repair Protect and Improve Revenue Reduces downtime via proactive management Reduces problem resolution time by quickly identifying the problem Produces satisfied customers Automatic problem resolution Rapid Time to Value Fast Implementation Real-time information in minutes, not weeks Modular Integration 8 | © Copyright IBM Corporation All Rights Reserved
Monitoring e-business ResourcesCombined monitoring of: Hardware/OS Network Connections Web Servers Middleware Applications Local correlation and diagnosis at the resource level Take action to cure problems when possible Notify other systems or administrators Browsers Application Servers Web/Edge Dumb Terminals Host Systems Databases Clients Distributed The monitoring layer – or yellow layer – focuses on optimized management of one server at a time. Everything on that server is potentially monitored, with local correlation, diagnosis, and automated corrective action. The interplay between hardware, operating system, network connections, middleware, and applications can all be managed in context of the server. To understand the interplay between multiple servers or devices, or the impact of the server status to the business, the yellow layer send events to the higher layers. 9 | © Copyright IBM Corporation All Rights Reserved
Tivoli Proactive Monitoring OfferingsBroad Support for Middleware IBM Tivoli Monitoring for … Databases Applications Messaging & Collaboration Business Integration Web Infrastructure Content & Personalization Security & Edge Services Proactive Analysis Components Service Level Advisor Web Server Analyzer Tivoli Data Warehouse Tivoli proactive monitoring solutions manage a wide range of systems, applications, and middleware. Tivoli proactive monitoring solutions are differentiated by: Superior Technology Correlation and cure at the source of the problem Easier customization through the workbench Best practices out of the box Middleware Monitoring of leading middleware Focus on the foundation for new applications Partnering Tight integration with IBM and non-IBM applications Leverage IGS experience for best practices The monitoring engine uses Resource Models, a major part of the Proactive Analysis Components (PACs). Resource models include problem signatures, the unique symptoms associated with each problem, and the automated corrective action to take for each problem signature. Resource model capabilities that differentiate the Tivoli solution include - Multiple source data capture - Local persistence checking - Local intelligent correlation - Automated corrective action - Local data store (reporting) - Best practices out of the box - Workbench for customization Tivoli proactive monitoring solutions provide positive customer ROI when used alone or in combination with higher level Tivoli applications. IBM Tivoli Monitoring Monitoring Engine Supports Proactive Analysis Components Problem Signatures X Y Z WorkBench DM Engine X+Y+Z = action Resource Models 10 | © Copyright IBM Corporation All Rights Reserved
Event Correlation Focuses on Multiple ResourcesHost Systems Collect and correlate events from multiple resources Problem signatures are used to determine root cause Automate corrective actions Notify other systems or administrators when necessary Host Databases Terminals Distributed Databases Servers Clients Application Servers Web/Edge Servers Console Browsers 11 | © Copyright IBM Corporation All Rights Reserved
Tivoli Event Correlation and Automation OfferingsBroad Support for Events IBM Tivoli Event Correlation and Automation for… Distributed Systems OS/390, z/OS SNA Networks TCP/IP Networks Applications Middleware TEC Service Level Advisor Web Server Analyzer Tivoli Data Warehouse NetView The Event Correlation and Automation Layer – or green layer – understands network topology and the physical relationships between components. The green layer understands problem signatures - the unique set of symptoms associated with each problem. Most problems have alot of symptoms. For example, when a database fails, all of the applications using the database may report errors. The green layer associates all of the error reports to the root cause of the problem. Administrators can focus on the real problems. By identifying root causes quickly, downtime is minimized. We spoke earlier about the cost of downtime. By minimizing downtime, event correlation and automation solutions provide a quick return on investment for customers. IBM Tivoli Monitoring Non Tivoli Monitoring Leverage existing management infrastructure DM Engine 12 | © Copyright IBM Corporation All Rights Reserved
Business Impact Management Takes a LOB ViewProactively determine the impact of events on the business View how business processes span the physical environment Verify end user service levels Analyze historical data and predict future service levels Host Databases Host Systems Dumb Terminals Distributed Databases The business impact management layer understands the role of resources in your business. When a resource fails, which customers will be impacted? Which service level agreements are potentially impacted? How do I know if service level agreements are met? Clients Servers Application Servers Browsers Web/Edge Servers 13 | © Copyright IBM Corporation All Rights Reserved
Tivoli Proactive Business Impact Management OfferingsDaily Operations Historical Analysis for Predictive Management Tivoli Business System Manager Service Level Advisor WEB Tivoli Data Warehouse Leverage existing management infrastructure Tivoli 3rd Party In-house Online banking service level agreement is at risk Online banking user response time is slow Tivoli is the only vendor that can provide this COMPHREHENSIVE and INTEGRATED Business Impact management. 3 key concepts: Real-time Daily Operations Management Historical Analysis for Predictive Management Enterprise Management Data Warehouse The concept behind Tivoli Enterprise Data Warehouse begins with an understanding that whether the source applications are framework-based, or not, each application currently maintains its own production database of management data. To provide added value, data is extracted from these applications and stored in a common Tivoli enterprise data warehouse. This warehouse provides an open and proven schema that stores and correlates data from virtually any application. Tracking components, their attributes and measurements. Utilizing this common warehouse, standard out-of-the-box reports and report templates are provided. These reports will provide similar information to those provided by many of the TDS guides today. In addition, high value reporting applications such as Service Level Management and Web Analytics can be developed and provided as separate products. Tivoli will provide a web-based reporting front end, but the open architecture provided by the warehouse will allow other BI front ends (such as Cognos, Business Objects, etc) to be used to access the data in the warehouse. AND the existing management infrastructure (Tivoli & 3rd party) is leveraged. Tivoli Enterprise Counsel/ Distribution Monitoring 14 | © Copyright IBM Corporation All Rights Reserved
What Do You Need From a SolutionBusiness impact measurement Tivoli Business Impact Management Link user experience with infrastructure performance Tivoli Monitoring Solutions IT activity prioritization Tivoli Event Correlation and Automation Solutions Quick implementation Tivoli solutions deliver rapid time to value and ROI 15 | © Copyright IBM Corporation All Rights Reserved
BEFORE Tivoli Performance & Availability ManagementOperations Center Server cowgirl4 down ! Traditional management tools are NOT designed to meet today’s needs. Traditional systems management tools focus on components (servers, routers, applications, disk space) of the IT infrastructure. But that doesn’t help you decide which problems are most important to deal with or what areas of the business are impacted, if any, when a particular component is down or performing poorly. Traditional tools provide monitoring and event correlation to help customers determine the state of each resource. These tools are often highly refined and provide a wealth of information on these different classes of resources. Tivoli has a strong offering of products to manage specific components. However the IT staff has to deal with many different tools and consoles to find out the state of various resources. So while you still need these traditional tools there is more. Component Approach BEA Lotus Microsoft SAP Siebel WebSphere 16 | © Copyright IBM Corporation All Rights Reserved
WITH Tivoli Performance & Availability ManagementOperations Center NetView TEC Service Level Advisor Tivoli Monitoring Business System Manager Tivoli Data Warehouse BEA Lotus Microsoft SAP Siebel WebSphere 17 | © Copyright IBM Corporation All Rights Reserved
Tivoli Helps to Reduce CostsImprove IT Staff Scalability Grow business faster than IT staffing Improve IT Staff Productivity Decrease time needed for management process Match skills to appropriate problems and tasks Reduce impact of staff turnover 18 | © Copyright IBM Corporation All Rights Reserved
Tivoli Helps Protect and Improve RevenueImprove service delivery and business system availability Reduce downtime via proactive monitoring Reduce problem resolution time Produce satisfied customers Deliver and measure service… …from the customer’s perspective 19 | © Copyright IBM Corporation All Rights Reserved
Tivoli Provides Rapid Time to ValueRapid deployment Real-time information in minutes, not weeks Designed for modular integration Each solution can be installed separately When you need to tie it all together, you can do so easily 20 | © Copyright IBM Corporation All Rights Reserved
Superior ROI with a Complete, Integrated SolutionCONTRACT, MEASURE, AND REPORT Service Levels MANAGE Service Levels IBM Tivoli Service Level Advisor IBM Tivoli Web Site Analyzer IBM Tivoli Business Systems Manager Reporting and Business Intelligence Integration IBM Tivoli NetView IBM Tivoli Enterprise Console Tivoli Enterprise Data Warehouse You’ve seen what’s coming in each one of the layers, now let’s look again at the value associated with a fully integrated Tivoli solution. Tivoli Proactive Analysis Components – the out-of-the-box best practices, include the following: - multiple resource models for the monitoring layer - multiple cross domain correlation and automation rules for TEC - Data store schema for TBSM - ETL (Extract, Transform, & Load) for the Tivoli Enterprise Data Warehouse - Out-of-the-box reports With the full Tivoli solution, you get monitoring and automated corrective action on individual servers (yellow), cross domain correlation and automation (Green), and management in the context of your business (blue). All layers tie into the Tivoli enterprise data warehouse, enabling service level agreement management, web analysis, cross application reporting, and a centralized data store for business intelligence tools such as data mining. IBM Tivoli Monitoring for Transaction Performance IBM Tivoli Monitoring IBM Tivoli Monitoring for… “Tops down” “Bottoms up” 21 | © Copyright IBM Corporation All Rights Reserved
Example According to an IDC study of 30 large companies conducted in Average company size 10,000 employees Average number of IT staff 53 Average cost saving from improvement in IT productivity about $500,000 per year ($50 per employee) Average downtime reduced from 12.6 hours/month to 4 hours/month (68%) Estimated total savings in first year from IT management productivity and reduced downtime was about $6,000,000 ($600 per employee) Source: IDC, 2001 22 | © Copyright IBM Corporation All Rights Reserved
Advantage…IBM Tivoli softwareTechnological innovation Unsurpassed Research & Development Reliable, proven products Speed to market Global reach World class support Ecosystem of partners Sell the value of Tivoli and IBM as one company. 23 | © Copyright IBM Corporation All Rights Reserved
Alternatives Business Value is the DifferenceYour Choices: Do nothing (Status Quo) Choose a competitor Choose IBM Tivoli Make the strategic business decision… IBM Tivoli software 24 | © Copyright IBM Corporation All Rights Reserved
Tactical Business DecisionReturn on Investment (Target vs. Typical) 5 4 3 Cost in 000,000 2 1 Initial Year 1 Year 2 Year 3 Year Cumulative ImplementationCost Cumulative Savings and Benefits 25 | © Copyright IBM Corporation All Rights Reserved
Strategic Business DecisionReturn on Investment (Target vs. Typical) 5 4 3 Cost in 000,000 2 1 Initial Year 1 Year 2 Year 3 Year Cumulative ImplementationCost Cumulative Savings and Benefits 26 | © Copyright IBM Corporation All Rights Reserved
Where are you now ? What are your potential benefits ?World Class Advanced Medium Medium Basic 27 | © Copyright IBM Corporation All Rights Reserved
Cost / Benefit AnalysisNow that we all agree that IBM Tivoli solutions and methods could be of benefit to you, we can help you to convince senior management Develop a vision of how this would work in your environment Develop an estimate of the potential Costs and Benefits in your environment We can help build the Cost/Benefit Analysis (CBA) study 28 | © Copyright IBM Corporation All Rights Reserved
Customer Commitments for a Cost Benefit AnalysisEmbark on a joint project Senior management and executive sponsorship is critical to success Commitment to conduct study Commitment to attend a presentation of results when our efforts are complete Attend a presentation of results when the project is complete. 29 | © Copyright IBM Corporation All Rights Reserved
How Do We Estimate Financial Value?Understand your business and IT environment and needs Understand the cost of downtime Estimate benefits of improved performance and availability Talk to the business units Identify other benefits by industry and environment 30 | © Copyright IBM Corporation All Rights Reserved
Understand the Business and IT Environment and NeedsHow many servers/desktops/… ? Current tools and maturity of support processes IT support staff numbers by role, activities, skill levels Key business applications New initiatives What’s the current availability of critical services ? What are the major problems: process/people/tool ? What services does your company rely on you most for? 31 | © Copyright IBM Corporation All Rights Reserved
Understand the Business and IT Environment and NeedsHow do you manage things now ? How could you manage them better ? Where are the opportunities to create business value ? creating a more streamlined IT organization reducing IT support costs reducing unplanned outages / improving services provided 32 | © Copyright IBM Corporation All Rights Reserved
Understand the Cost of DowntimeIndirect cost of downtime Number employees/customers dependent on availability Direct cost of downtime Revenue, penalties, value of money 33 | © Copyright IBM Corporation All Rights Reserved
Estimate Benefits Infrastructure system management staff AvailabilityDirect savings Indirect savings Talk to the business units Identify other benefits by industry and environment Mergers and consolidations Outsourcing 34 | © Copyright IBM Corporation All Rights Reserved
Action Plan Get executive sponsorship and commitment Data collectionPut the required data into the tool Any estimated data must be confirmed Generate results Review the results with the sponsor Present the study 35 | © Copyright IBM Corporation All Rights Reserved
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