2Introduction In this session we shall explore: The economic and management imperatives driving cloud computing, the common cloud optionsThe perspectives, scope and content of the ‘service management manifesto’The elements of a service management system and service provider organization from both the ITIL® and USMBOK® perspectivesThe impact of Cloud upon the system and organization, and specifically key practices, processes, roles, policies and artifactsHow to adapt your service provision model to incorporate cloud optionsA six-step method for ensuring your service management initiative remains cloud relevant A basic primer on Cloud Computing based upon US Federal Government definitions.
3Cloud 101: IntroductionThe ‘Cloud’ was originally a metaphor for the Internet, the area outside of your own networkCloud computing has many diverse definitions, summarized, the Cloud is an on-demand self-service Internet infrastructure where you pay-as-you-go and use only what you need, all managed by a browser, or application.Cloud computing is broken up into multiple segments represented by the Cloud Pyramid and including:Cloud InfrastructureCloud PlatformsCloud ApplicationsAnalyst firm IDC says cloud services will outpace traditional IT spending over the next five years and will represent $44.2 billion by 2013 – its huge business!
4The US Federal Government Does and Defines Cloud Computing With an IT budget of more then 70 billion dollars a year, the US government represents the largest IT consumer on the planetWith this kind of money at stake, the influence the US government imposes is enormous and directly influences how we as an industry both define and use the cloudThe National Institute of Standards and Technology (NIST), a non-regulatory agency of the United States Department of Commerce with a mission to promote U.S. innovation and industrial competitiveness, has prepared definitions on behalf of the US Government for Cloud ComputingIt is expected these definitions will be the de facto standard the entire US government will be given – for more information visit:
5The NIST Cloud Definition Framework CommunityCloudPrivate CloudPublic CloudHybrid CloudsDeployment/DeliveryModelsServiceEssentialCharacteristicsCommonSoftware as a Service (SaaS)Platform as a Service (PaaS)Infrastructure as a Service (IaaS)Resource PoolingBroad Network AccessRapid ElasticityMeasured ServiceOn Demand Self-ServiceLow Cost SoftwareVirtualizationService OrientationAdvanced SecurityHomogeneityMassive ScaleResilient ComputingGeographic DistributionSource: NIST
6The Management Imperative “Address One of My Problems!” Today's economic climate is causing management to tighten budgets and re-prioritize projectsIt is acting as an accelerant for management expectations of the benefits from investing in a service management initiativeAll investments are subject to greater scrutiny, with projects being reprioritized and non-performers shelved, or abandoned, perhaps permanentlyInitiatives must complete and deliver on their promise, or a specific subset of deliverables, within a 30, 60, or 90-day period.
7Why ‘Cloud’ Makes the Business Pulse Race Some of the more common benefits attributed to Cloud Computing include:A more agile and responsive IT investment decision-making processGreater alignment of IT investments with business goalsPaying only for what you use, a new generation of ‘service economics’Even more rapid, utility styled request and deployment of information servicesGreater scalability in all ways, linking real-time demand and utilization with planned capacity – ‘just in time service’Higher quality of service, less downtime caused by non-standard or inconsistently architected and designed infrastructuresMore cost effective use of all types of technology resources, including humanAnnual savings in hardware, power and human labor costsEnvironmentally friendly ‘green IT out of a box?’THE AVAILABILITY OF VIABLE OFFERINGS!
8The Open Cloud Manifesto The purpose of the Open Cloud Manifesto is to “… initiate a conversation that will bring together the emerging cloud computing community (both cloud users and cloud providers) around a core set of principles”The document discusses:What is Cloud Computing and why it is importantChallenges and barriers to adoptionThe goals of an Open CloudGuiding principles for an Open CloudFor more information visit the website:
9“Mirror Mirror on the Wall…” The benefits of Cloud mirror those suggested as resulting from an IT Service Management or ITIL® project, while mugging ITSM for its benefits, Cloud exposes a number of failings in the traditional ITSM approach:The sheer glacial speed of progress and delivery of tangible business benefitsThe often veiled commitment of specialized, scarce resources to a long-term effortA lack of support from the application and systems management functional groupsA failure to properly integrate business continuity, security, facilities management and capacity planning disciplinesThe inability to relate customer activities to consumption of IT resourcesThe lack of stakeholder support in ITSM as a value creating initiativeCloud reminds us the business need has not changed and what is wanted is a demand driven, pay as you go, utility styled approach related to specific business outcomes.
10For Now.. a Hybrid CloudCloud service providers may struggle to accommodate highly customized applications and IT may baulk at migrating sensitive systemsLikely result is many IT organizations will face the challenge of managing a hybrid cloud infrastructure over the next 2-3 yearsMeanwhile, cloud computing is busily establishing a next generation of service management ‘best practices’, involving:Subscription based offeringsMore agile service agreementsAn order-fulfillment provisioning modelFederated design of the service management system that spans dueling silos and the total customer experienceAll the while the cloud options will have to tackle the emerging service experiential economy, where the customer experience matters most, successful outcomes aside.
11The (Universal) Service Management Manifesto™ The purpose of the service management manifesto is to clarify the definition of service management and what it means to differing constituentsLike the open cloud manifesto the intent is to initiate a conversation that will bring together the service management community on a universal basis around a core set of principlesThe manifesto has five perspectives:The customer perspective, representing consumers or products and servicesThe provider perspective, for service providersThe professional perspective for individuals working within service industriesThe vendor perspective for suppliers to service organizationsThe community perspective, for organizations such as trade and professional associations, representing the industries, organizations, and individuals involved in the consumption and provision of the products and services.
12The Service Management ‘Cloud’ Elements The Service Management SystemSource: USMBOKThe Service Provider Provisioning SystemThe Service Provider OrganizationThe service management system has two discrete but co-designed elements: the provisioning system and the organizationApart from security and data governance, Cloud Computing poses a number of major challenges to any organization active, or considering a service management initiative
13The natural tendency of organizations to think ‘Inside-Out’ Firstly, it’s a natural tendency and common for most organizations to look inward at what work they do – to think inside-outInside-out thinking places a greater emphasis, sometimes total, on how the work is performed, its efficiency, productivity, and the product qualityThis is especially true if the organization is detached or insulated from its end customers, a monopoly, the economy is healthy, and the operational environment stablePerformance measures are more focused on the work performed by the service provider, processes, or technologies than on customer outcomesUnfortunately, ‘inside-out’ thinking is commonly associated with a failure to think customer, to understand why the work is performed, and to fail to associate the benefits of a project or initiative with customer results and satisfaction levels.
147 Signs You are Failing Your Customers (and You) – and may be ‘inside-out’ Key service staff are unable to state easily, clearly and briefly who the customers are, what we do for them, and the basis for customer satisfactionThe view of the customers, what they care about, and how you serve them, differs significantly across the organizationWhen compared, more time is spent on internal issues, processes and conflicts than on discussing the customer outcomes and needsFew of your decisions are explicitly driven by customer needsYou have trouble adapting to normal variations in the customer operations and get blindsided by changes in strategy and behaviorYou are trying to apply one rigid practice or process framework to all customer situationsYou do not know how your efforts relate to the interests and desired results of your customers?
19The Cloud Discussion is a ‘Darwinian Event’ for Traditional ITSM The Cloud discussion polarizes ITSM theorists and differentiates them from pragmatic practitionersProponents of familiar ‘must-have’ ITSM artifacts, such as service catalogs and configuration management databases (CMDB) are either strangely quiet, or forming committees designed to ensure inter-operabilityTo compound matters, few if any ITSM training classes have adapted their curriculum to include Cloud conceptsSome of the most vocal ITSM evangelists are soliciting ideas rather than leading their peers through this latest metamorphosisHave no doubt, the option of Cloud Computing represents a ‘Darwinian Event’, causing management to rethink the value of an ITSM initiative, and to reassess an investment in existing ITSM qualification schemes and inflexible frameworks, such as the IT Infrastructure Library®.
21Service Management System Fundamentals The service management system should answer a number of question:How the service provider decides which customer communities to serveWhat governance will be used to ensure the voices of the customer, provider and regulators is heard, and documented properly as service requirementsHow services will be marketed to each communityHow an existing or prospective customer can request serviceHow requests for service are fulfilledHow the design, development and provision of services is fundedWhat key roles are required to manage the provision of serviceHow performance will be measured and managed from a results achieved, and satisfaction level perspectiveHow the service provider plans will be aligned with those of customerWhat transformation method will be used and how will the provider continuously improve.
22The ITIL® Service Management ‘System’ Source: SMBOK™ ServiceITIL provides a simplistic four stage ‘lifecycle’ based systemThe stages are supported by a continual improvement fifth and cyclic ‘stage’There is no detail or over-arching representation of how requests or incidents journey through the systemThere are multiple inputs to the ITIL ‘system’, including incidents and service requests.HLM
23ITIL® ‘Processes’ Impacted by Cloud Source: SMBOK ServiceMHLITIL does not provide in core books an overall representation of how processes co-operateThe core documentation describes approximately 36 subject areas or ‘process’ candidatesThe likely impact is based upon ITIL V3.0 descriptions.
24Key ITIL® Artifacts Impacted by Cloud Application PortfolioAsset RegisterAuthority Matrix (RACI Chart)Availability PlanBack-out PlanBusiness, IT Service Continuity PlansCapacity PlanChange Record, Schedule, emergencyConfiguration Management DatabaseDefinitive Media LibraryIncident record, impact statementOperational Level Agreements (OLA)Patterns of Business ActivityProblem record, cause statementRelease identification, record, unitRequirement CatalogSecurity Policies and ProfilesService Acceptance CriteriaService CatalogService Contract and Level AgreementsService Improvement PlanService Level PackagesService Level requirements, TargetsService PipelineService PortfolioService Request (Request Fulfillment)Underpinning Contracts
25The ITIL® RolesSource: SMBOK ServiceMHLITIL does not provide an overall organizational structure or ‘role continuum’The core documentation describes approximately 47 responsibilities or ‘roles’These roles include at least two that are impliedThe likely impact is based upon ITIL V3.0 descriptions.
26The ITIL® Qualification Scheme The ITIL Qualification Scheme (IQS) issues certificates based upon proof of progressive knowledge of ITIL core publicationsProof is by examinationThe IQS is a certificate issuing schemeThe likely impact is based upon ITIL V3.0 descriptions.
27The USMBOK® Service Management System Introduction to the Universal Service Management Body of Knowledge (USMBOK™)MLHCustomerModelServiceEnterpriseRequestLifecycleQualityRevisionChangeReleaseEventRequirementAssetSupportRetireBusiness Planning FrameworkPerformance Management FrameworkGovernance FrameworkProvision LifecycleOperations LifecyclePolicy FrameworkService Transaction EngineThe Service LifecycleSYSTEMKnowledge DomainsServiceInfrastructureManagementValueOperationsDeliveryQualityFulfillmentCustomerORGANIZATIONPage 27
39Understanding the Customer A customer (perhaps unknowingly) uses a combination of the three vital service equations and are focused on:Achieving their desired resultsReceiving personalized service that leaves them satisfied they are relevant, and that service is ‘delivered as promised’Consequently:A quality process is irrelevant to the customer unless it directly effects value by helping achieve results (easier, more consistently), lowers the cost of providing the serviceProcess maturity is irrelevant unless the level of maturity can be aligned with the minimum, or optimum capability needed to satisfy the agreed service level objectives – or customer expectations.