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Mark O’Loughlin

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Cloud Service Management

A New Beginning

What You Need to Know

Mark O’Loughlin

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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)

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Promote the Message

Twitter

@oloughlinmark

#ITSM14

Email

mark@redcirclestrategies.com

mark.oloughlin@italliancegroup.com

mark.oloughlin@auxilion.com

Blog

www.markoloughlin.org

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Agenda

• The utility of cloud computing

• The ability to adopt cloud successfully

• The capability of using cloud

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Utility Model

Utility 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

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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

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Every Minute of the Day

10 Are you “In the Cloud”?

What are you using? Many people are “In the

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Cloud is Disruptive

Cloud 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

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Cloud is Disruptive

The 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?

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The Utility of IT

How will you adapt to the utility of cloud?

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Utility Cloud War

• Amazon • Google • Microsoft

• Cloud war is on – Prices are dropping

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

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Cloud and ITSM Convergence

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

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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

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Benefits of Cloud

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IT Delivery Model Is Changing

Survey

How many organisations here today have internal IT departments?

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Todays IT = Hybrid IT

Legacy IT Traditional IT Cloud Computing

+

+

=

How to Address Integrate

SIAM – Service Integration and Management Adopt a Hybrid IT model

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2013 Presentation

See 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

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2014 Presentation

• Service Catalogue - Cloud Market Place • Change Management

• Service Disintermediation • Budget

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Service Catalogue - Cloud Market Place

1) 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

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Change Management

Why 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

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Change Management

An 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.

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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”.

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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

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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

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Policy

• Does your organisation have a policy on approved usage of cloud services

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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 • …

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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,

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Market Potential

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

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ITIL Training Investment

Global 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

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Cloud Training Investment

How much is spent on cloud training?

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

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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

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Cloud Service Manager

Modules

• 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

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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/

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Helpful Resources

Axelos White Paper on ITIL and Cloud

Computing

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

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2013 Presentation

See this presentation for more details.

• IT Becomes The Broker

• SLA Meltdown

• Demanding Times

• Losing Control

• The Model Gets Cloudy

(43)

Cloud Service Management

A New Beginning

What You Need to Know

Mark O’Loughlin

(44)

ITSMF UK 150 Wharfdale Road, Winnersh Triangle, Wokingham, RG415RB, United Kingdom Tel: +44 (0) 118 918 6500 Fax: +44 (0) 118 969 9749

References

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