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(1)

IT AS A

SERVICE

BROKER

MIT Sloan CIO Symposium

May 21, 2014

Thomas P. Roloff

Senior Vice President

EMC Global Services

twitter: @TRoloff

(2)

Why Transformation?

Business is

Changing

Faster Than IT

Business Has

New IT

Alternatives

Technology

Convergence is

Accelerating

(3)

As ALL Businesses Become More IT Intensive,

There Are Real Business Reasons To Transform

COST

IT Budgets are not expanding

The desired Balance for Capex/Opex

is shifting

IT labor must be optimized

AGILITY

New Application Time To Market must

be accelerated

The Business needs IT to start with

the business problem in mind, not

with a technology solution

(4)

IT Cost Comparison

(% of Total IT OpEx Budget)

Source: McKinsey, Gartner, EMC analysis

Innovation Spending

(% of IT Budget)

Source: Forrester, EMC analysis

Legacy - 28

%

ITaaS – 40

%

+

Maintenance

Innovation

Cloud Services

External Services

Internal Services

Software

Hardware

Telecom,

Facilities, Legacy

Legacy – 100%

33

20

14

6

27

ITaaS – 76%

22

4

14

9

4

23

IT As A Service Can Deliver Dramatic Cost Savings

(5)

Enterprise IT’s Monopoly on IT Services is Eroding

>50% of all respondents report using outside

service providers, citing faster service delivery

and the ability to leverage technical expertise

How frequently are lines of business at your organization turning to

outside service providers when they need IT services?

13%

46%

32%

9%

12%

41%

41%

5%

Frequently - More than 50% of the

time

Occasionally - Between 25% and 50%

of the time

Rarely - Less than 25% of the time

Never

LOB USE OF OUTSIDE SERVICE PROVIDERS

IT

Business

Faster service delivery/time to market

TOP ATTRACTIONS FOR LOB TO LEVERAGE OUTSIDE

SERVICE PROVIDER

Ability to leverage technical expertise not available in-house

Lower costs

Better application performance

41%

41%

40%

32%

Source: IDG Research Services/CIO Custom Solutions Group, Big Picture Global Survey:

Dual Perspective of ITaaS, A survey of IT and business executives, June 10, 2013

(6)

NEW IT BUSINESS

MODEL

Service Oriented

Market Driven

“P & L” Focused

Broker & Builder

NEW TECHNOLOGY

ARCHITECTURE

Private, Hybrid, Public Clouds

End-To-End Automation

Financial Transparency

Self-Service Capabilities

DNA, SKILLS, ROLES &

ORGANIZATIONAL

ALIGNMENT

“Front Office” Capabilities

Service Accountabilities

Technology Breadth

Transforming Into a Service Broker

Private Hybrid Public

(7)

ITaaS Main Attributes

Standardized technology architectures allow for deep

automation and workflow orchestration.

Highly

Automated

Services consumption is measured and reported back to

user (LOB). Tiered services with different SLAs and costs.

Financially

Transparent

Self-service catalog through user portal. Automated,

traceable service requests & fulfillment

Self-Service

Standardized planning, design, delivery and operation of

services. IT partners with LOBs.

Service

Oriented

Access to services through device of choice.

Consumerized

(8)

Enabling A New Consumption Model

 Many companies are

changing the customer

experience through IT-

enabled services

 We can now deliver on

the Service Management

promises of the past 20

years

(9)

Presentation layer that encapsulates the service catalog for

consumption by clients

It Begins With The User Portal

 New, beautiful interface to the

service catalog

 Built with the (business) user’s

needs in mind

 Easy to use

 Unified, self-service interface for

request, provisioning,

management and reporting

 Available, scalable, secure

(10)

EMC IT4ME PORTAL

(11)

Provides a unified view of the full range of services

The Service Catalog

 Services are bundles that matter

to the user – not expressions of

an IT inventory

– IT has the ability to create / enforce

technology standards behind the

service bundles

 Services describe service cost,

policies, SLAs, fulfilment process,

provisioning interface, ownership

 IT can manage demand through

role-based access control

(12)

Start with a few infrastructure services, then iterate up the stack

Service Catalog Is the Foundation

Business Process as a Service

Software as a Service

Platform as a Service

IaaS

Windows VM

Storage as a Service

Apache Web Server Tomcat App Server

Payroll Sales Force Automation Office Productivity

Business Intelligence Employee Onboarding ERP

(13)

Automate business workflows

Orchestration

 Orchestration automates disparate

workflows into a seamless process

– Enables deep user transparency

– Can enable Push / Pull of workflow updates

 Facilitates provisioning, management and

retirement of services. Example services:

– Virtual desktop refresh

– Collaboration environments

– Development sandbox environment

– Promotion of a new app / release from Dev

to Test to Production

– New employee hire setup

 Security built into workflows

 Puts the consumer in charge by

communicating workflow status

(14)

New Timeline: < 1 Day

Previous Timeline: ~4 Months

EMC IT E-PaaS Workflow Automation

IT

Configurable

Manual

Complex

Standard

Automated

Simple

(15)

Unified interface to service providers with consistent consumption

and management

Cloud Service Broker

 Keep internal what needs to be

internal

– But insure it plays well with emerging /

existing standards

 Leverage 3rd parties for all that is

best done externally

– What business do you want to be in?

 Seamless – and dynamic - movement

of Workload to ‘best’ infrastructure

and middleware environment

– Right-sourcing by policy

– Portability among service providers

– Enables SP contestability

– Web services API

(16)

Governance, Risk and Compliance (GRC)

How EMC Brings ITaaS Together

Security

Cloud Services

Virtual

Infrastructure

Physical

Infrastructure

HOSTED PRIVATE CLOUD

Virtual

Infrastructure

Physical

Infrastructure

PUBLIC CLOUD

Virtual

Infrastructure

Physical

Infrastructure

PRIVATE CLOUD

IaaS

PaaS

SaaS

BPaaS

C lo u d Se rv ice Bu ild in g Bl o ck s

Service

Management

Incident Management

Request Management

Knowledge Management

Problem Management

Event Management

Change Management

Configuration

Management

Asset

Management

CMDB

AMDB

Policy

Engine Service

Catalog

Device

Hosting

Network

Software

Professional

Services

Traditional (Non-Cloud)

Services

Metering Engine

Cloud Service Broker (CSB)

API

API

API

User

Portal

Orchestration Engine

(17)

IT-As-A-Service Operating Model

Service Request / Delivery Invoicing

Voice Of The Customer

CLOUD INFRASTRUCTURE

SKILLS / ROLES / COMPETENCIES

SERVICE PORTFOLIO

MANAGEMENT

Portfolio / Demand Management

Processes

Service Roadmap

Service Design / Launch

SERVICE DELIVERY AND

SUPPORT

Automated Orchestration And

Provisioning

Standardized Processes

Standardized Service Management Tools

FINANCIAL

TRANSPARENCY

Metering

Service Costing Policies

G O - T O - M A R K E T

Service Strategy Service Catalog Pricing, Show / Chargeback

BUSINESS USERS

(18)

Business Operations as Services

OLD WAY NEW WAY

Employee logs request.

Management and finance

approve, purchasing

orders, IT installs

Get a New

Laptop

Employee picks approved

system build specific to

role from service portal

Order equipment, office,

phone, badge, IT accounts

from separate systems

Onboard New

Employee Manager registers request

by role from service portal

Developer logs request.

Management approves.

Purchasing orders. IT

designs, installs and builds

Create a SW

Development

Environment

Developer requests

standard environment from

portal

(19)

APPLICATION

TRANSFORMATION

2nd Platform

Existing Apps 3rd Platform New Apps Cloud Fabric Application Fabric

Data Fabric

End User Experience

OPERATING MODEL

TRANSFORMATION

Metering

Engine

Service

Catalog

Orchestration

Engine

User Portal

Policy

Engine

New

Roles

Agile

Processes

Transforming to ITaaS

INFRASTRUCTURE

TRANSFORMATION

PRIVATE PUBLIC

LEGACY HYBRID

Align Workloads

With Most Suitable

Cloud Model And

Empower Them For

Mobile And Big

Data Solutions

Build a

Cost-Efficient, Agile

Infrastructure to

Enable Private and

Hybrid Cloud

Package And

Orchestrate

Services For Agile

IT Operations And

Convenient

Consumption

(20)

Initiative Interdependencies

Transformation Roadmap

Transform

Applications

Transform

Operating Model

Transform

Infrastructure

Early Stage

Initiatives

Application

Rationalization

Longer-term

Initiatives

SDLC/DevOps

IaaS

Service Catalog

Design

PaaS

Service

Orchestration

Rationalize Standards

Virtualized, Consolidated

Data Center

Cloud Development

Platform/Tools

Converged

Infrastructure,

SDDC

Business

AppStore

Agile

Self-Service

Consumption

Software

Defined

Data Center

Stateless

Applications

Objectives

(21)

EMC IT Transformation Results

IT-AS-A-SERVICE

BUSINESS PRODUCTION

IT PRODUCTION

2004 2005 2006 2007 2008 2009 2010 2011 2012

$66M OPEX Savings

88% More User Productivity**

9X More Agile***

100M Pounds of CO

2

Reduced

$157M CAPEX Avoidance

4 Data Centers

60,000 Employees

13 PB Storage

92% Virtual

5 Data Centers

24,000 Employees

1 PB Storage

15% Virtual

$8.2B

$21.7B

80%

58%

* Percent of IT Spend on Lights-on

vs. New Capabilities

** Improved sales order creation

time due to vBlock architecture

deployment

*** Reduced deployment time due to

virtual infrastructure efficiencies

Source: ESG IT Audit Report: EMC IT - Leading The Transformation, March 2013

(22)

Thomas P. Roloff

Senior Vice President

EMC Global Services

twitter: @TRoloff

(23)

References

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