Mark O’Loughlin
Cloud Service Management
A New Beginning
What You Need to Know
Mark O’Loughlin
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)Promote the Message
@oloughlinmark
#ITSM14
mark@redcirclestrategies.com
mark.oloughlin@italliancegroup.com
mark.oloughlin@auxilion.com
Blog
www.markoloughlin.org
Agenda
• The utility of cloud computing
• The ability to adopt cloud successfully
• The capability of using cloud
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
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
Every Minute of the Day
10 Are you “In the Cloud”?
What are you using? Many people are “In the
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
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?
The Utility of IT
How will you adapt to the utility 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
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
Benefits of Cloud
IT Delivery Model Is Changing
Survey
How many organisations here today have internal IT departments?
Todays IT = Hybrid IT
Legacy IT Traditional IT Cloud Computing+
+
=
How to Address IntegrateSIAM – Service Integration and Management Adopt a Hybrid IT model
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
2014 Presentation
• Service Catalogue - Cloud Market Place • Change Management
• Service Disintermediation • Budget
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
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
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.
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
Policy
• Does your organisation have a policy on approved usage of cloud services
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 • …
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,
Market Potential
€288 million is spent yearly on ITIL training and exams (approximately)
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
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!
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
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
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/
Helpful Resources
Axelos White Paper on ITIL and Cloud
Computing
http://www.redcirclestrategies.com/itil-and-cloud-computing-whitepaper-axelos.html
2013 Presentation
See this presentation for more details.
• IT Becomes The Broker
• SLA Meltdown
• Demanding Times
• Losing Control
• The Model Gets Cloudy
Cloud Service Management
A New Beginning
What You Need to Know
Mark O’Loughlin
ITSMF UK 150 Wharfdale Road, Winnersh Triangle, Wokingham, RG415RB, United Kingdom Tel: +44 (0) 118 918 6500 Fax: +44 (0) 118 969 9749