Unlock the code IT Asset Management

HP Software: Apps meet Ops 2015

Unlock the code

IT Asset Management

Business Overview

_{Keep in mind that if you’re a cloud}

consumer, you have a larger problem

than just auditing the providers.

……..

Can you audit for financial

misuse of cloud services inside your

organization

Do you have any means of providing

reports on compliance back to anyone

The Business Landscape of Cloud Computing By Daryl Plummer, Gartner

Overview of HP Asset

Manager

A New Style of IT has emerged…

The role of IT Asset Manager is key to brokering cloud service delivery

Strategic role of ITAM

Control

cost for on premise cloud services

Broker

off-premise services

Rationalize

transition of legacy infrastructure, applications and processes

Monitor

cost of legacy applications and cloud assets

HP Asset Manager – best of breed ITAM solution

Maximize the value of your IT investments

Software Asset Management Cloud Asset Management ●● Hardware Asset Management Procurement Financial Management • Know what you have,

where it is, who owns it and how much it costs

• Ensure license compliance and enforce internal

entitlements to minimize software costs

• Manage hardware, licenses, subscriptions and budgets

to optimize cost of services Contract Management

• Optimize acquisition of assets by aggregating requests and re-using existing resources • Manage budgets and

supply future costs for planning purposes • Manage subscription,

license, maintenance and other contracts and track supplier performance

“Our Internal Analysis uncovered

$2M

overspend on a single piece of Software.”

US Wireless service provider

Proof points

After

Before

True-up costs

$0

since 2008.

Before, millions in penalties.

6 Weeks

1 Day

Compliance reports

US energy company

Asset Manager deployment examples:

• Major bank

to manage:

900K

computers,

50

million

SW licenses and

35 million

SW

installations.

• HP ES

to support over

5.7 million

hardware

assets and

10s of millions

of SW licenses.

Leading pharmaceutical company

avoided

purchasing

$1 million

in new software licenses

Analysts view

“Chargeback/showback - the least utilized option, at only 19% deployment, is the most

important for converting IT from a financial cost center to a business unit”

– Aberdeen Group, “Extend

your Server Virtualization program to Enable Private Cloud”, May 2012

“If you want to get the best ROI out of your use of cloud services and platforms, you need to

actively model the cost profile of your applications, monitor their resource use, and adjust

accordingly”

– Forrester, James State: “Predictions For 2013: Cloud Computing”, February 22, 2013

“It’s hard to incentivize business groups to share the infrastructure if you can’t show them how

much of it they are using, who is using it most, and whether they’re saving themselves money

by leveraging your private cloud.

You should share this information in order to set off warning bells and prevent your private

cloud from being underutilized”

– Forrester, James Staten: "Onboard The Business To Your Cloud Strategy”, May 17, 2012

Terminology

Showback

Mechanism for providing IT management,

departments, and corporate management with

an analysis of the IT costs due to each

department, without actually cross-charging

those costs.

Showback benefits include:

• Making departments aware of the IT costs they generate

• Providing visibility to senior management on the reasons behind the costs of IT

Chargeback

Mechanism where the requesting

department is cross- charged (“Billed") for

the costs that are directly associated to the

infrastructure, data transfer, application

licenses, training, etc., which they generate.

Chargeback benefits include:

• Making departments responsible in their usage • Providing visibility to senior management on the

reasons behind the costs of IT

• Allowing the IT department to respond to unexpected customer demand

Showback and chargeback

Solution overview

HP Asset Manager/AM CloudSystem Chargeback

Enabling cost recovery for IT

resources based on usage

• Chargeback and show back

Cost transparency to

understand true costs of cloud

services

• Role-based cost control

Simple to manage and easy to

use

• Great user experience

• OOTB charge back rules and reports

HP Asset Manager/AM CloudSystem Chargeback

Provision Subscriptions Usage consumption Asset Manager / CloudSystem Chargeback Cloud service Catalog Bill CSA/CSM Financial system

Main use cases

A user of cloud service

• Needs to know his cloud costs and consumption • Generates a monthly chargeback report

• Can drilldown in a personalized dashboard for details

A department manager

• Closely monitors her staff cloud services and costs • Receives a detailed billing report for the department

• Can monitor department costs, services, usage in her dashboard • Receives automatic alerts before her budget exceeds

An IT cloud service owner

Chargeback / showback

Key capabilities

• Role-based showback reports

• Reports grouped by service or cost center • Expense line generation and cost center

allocation

• Billing based on variable cost parameters: one time, recurring, usage

Key benefits

• Cloud costs visibility - understanding the utilization of IT resources and their cost drivers • Driving effective use of the cloud services • Enabling IT to offer new and enhanced services

Cloud is not for free – make it visible

Role-based cost control

Key capabilities

• Budget management and real-time alerts • Personalized dashboards

• Usage graphs • Cost trending

• Drill down to detailed reports

Key benefits

• Cloud costs transparency - enables managing and planning costs long-term and ongoing

• Better demand management and influence over LOB consumption behavior

Great user experience

Key capabilities

• Simplified screens with only necessary fields. “What you see is what you need”

• “one-click” installation

•

OOTB charge back rules and reports

Key benefits

• Ease of use – 100% intuitive • No user training required • Easy to manage solution

Cloud services are easy to obtain – chargeback should be even easier

Asset management in managed cloud environments

Service Design

Resource Management

Chargeback / Showback

Cloud System

Automation

HP Asset Manager

Content

Continuously evaluate the performance of anything as a service

Executive Scorecard for the cloud

Utilization of network, storage, server and applications

Automation (compliance, patches)

Information and data traffic privacy and security incidents

Vendor performance

Financial perspectives of infrastructure and applications (budget vs. plan etc.) Availability and SLA performance

Chargeback and financial management

Cloud Asset Management

Chargeback/showback

Exposing price of service to business users (showback) or taking budget from end user

department (chargeback)

Benefits include optimization of service consumption (services are de-commissioned once they

are no longer needed) – prevents hoarding; ability to evaluate benefits of service based on

financial metrics

Profitability analysis

Cloud service providers can track cost/revenue, usage rates and other metrics for the service and

adjust pricing and service definition to ensure optimized use of resources

Price comparisons

Resource management

Cloud Asset Management

Management of resource distribution

Allows for uniform treatment of hardware, software and financial resources used in cloud

environments

Manage software compliance in cloud environments

Supports quota management to cap resource usage

Budget management

Budget consumption trend analysis

Budget based subscription control (quota)

Procurement control

Routing of requests for additional resources (procurement for hardware and software and

financial approval for budget requests)

Supplier management

Cloud Asset Management

Management of contracts for cloud services

Contract aggregation

Allows services to be managed using uniform contractual terms, at uniform rates and with

streamlined contacts

Enables contract managers to optimize contract terms, including pricing

Supplier performance tracking

Performance tracking

Price tracking

Positioning Executive Scorecard and Asset Manager

• Resource management for computing and

financial resources (budgets, contracts,

licenses, hardware)

• Procurement and other ITAM functions

• Showback for non-CSA customers with ITAM

focus

• Cost: $10k/$20k per user

HP IT Executive Scorecard

HP Asset Manager/CloudSystem

Chargeback

Resource Management

Business Analytics

• Business analytics –business and financial

performance, cloud usage, trend analysis

and continuous improvement

measurements for the organization

• Management reporting

• Pricing and showback for CSA customers

• Cost: $3k/$10k per user

Choosing the right product

Which product should I sell?

CSA

Non-CSA

CSC

• Chargeback • CS Matrix • Greenfield opportunities

AM

• Resource Management • ITAM

XS

• Pricing/Chargeback • Analytics • Management reports

AM

• Resource Management • ITAM

Asset Manager lets

customers manage their computing and financial resources (hardware, software, contracts, budgets) Executive Scorecard provides customers with business, usage, performance and financial analytics and continuous improvement measurements

Competitive landscape

Traditional ITAM competition

ServiceNow

• Broad ITOM capabilities (including ITAM)

• Entering cloud management space

BMC

• Market leader in ITAM

• Focusing on cloud solutions (Cloud

Operations)

IBM

• Cloud focused competitor (Smartcloud)

• Broad software portfolio

Cloud competition

Cloud Cruiser

• De facto market leader in “cloud

chargeback”

• Focused on financial management

Apptio

• Financial management focused competitor

Vmware

• Focused on providing chargeback for

Vmware environments

Deploy Receive _Stock Request IMAC Procure Monitor Re-use/ Dispose Support Retire

IT asset management

• Know what you have, where it is, who owns it and how much it costs

• Optimize software license compliance for virtual and physical environments

• Optimize hardware and maintenance costs • Track IT service cost efficiency

• Built in support for all IT Asset Management processes from procurement and inventory management to IMAC to disposal

HP Asset Manager

Business Information Sources

Dashboards, Reports, Scorecards

Con

ten

t

Procurement

Contract

management

Hardware asset

management

Software asset

management

Financial management

Con

ten

t

Where is it?

What is it?

Who owns it?

What is it worth?

How old is it?

Contract info?

Is it being used?

When was it last used?

Who is using it?

Track your IT assets throughout their lifecycle

Portfolio management

Problem it solves

• Tracking assets in spreadsheets or ERP is not robust • Does not know the status of asset: is use, lost, broken • Huge physical effort of tracking down those last 20% • Overspend and waste

Solution:

• Tracking what assets exist, where they are located, who is using them, and how they are being utilized.

• Managing fiscally relevant physical and virtual assets throughout their lifecycle

Benefits

• Optimize IT spending

• Reduce the number of lost and unused assets • Improve IT governance

Measure vendor performance and optimize supplier portfolio

Contract management

Problem it solves

• Paying maintenance contracts on assets that don’t exist • Does not know which vendors have the right to audit

them for compliance and how

• Does not know whether the vendor is delivering on the SLAs

Solution:

• Centralized tracking of all contracts: purchase, license, maintenance, lease

• Tracking performance for each vendor per their contracts

• Automatic management of the operational state of contracts in use

Benefits

• Cost savings by cancelling maintenance contracts not needed

• Eliminating duplicate and non-standard contracts • Measuring vendors’ performance

Automate acquisition of IT components

IT procurement

Problem it solves

• Not sure the best vendor was selected

• Cannot achieve the vendors deliver the value they committed to

• Measuring contract objectives against vendor delivery metrics

• Charging users for the procured assets

Solution:

• Automated request validation, approvals and fulfillment according to flexible workflow

• Tracking the status of requests and order lines • Support return to providers

Benefits

• Streamlined procurement process

• Optimizing purchase costs by tracking vendor prices

Optimize software licenses and mitigate compliance risk

Software asset management

Problem it solves

• Software costs are too high while IT cannot explain why • Vendor audits are frequent as well as penalties

• IT renews ELAs and maintenance contracts without negotiating

• Software licensing is very complex

Solution:

• Automated and continuous inventory discovery • Contract and entitlement management

• Automated reconciliation and compliance management • Out-of-the-box content for 900+ software apps and

200 000 SKUs

Benefits

• Proactive and ongoing software licence compliance

• Avoiding over or under purchasing • Reducing maintenance costs

• Optimizing the licenses and doing more with what you already have

Technology is not for free – make it visible

Financial management

Problem it solves

• IT cannot answer “where does the money go?”

• Losing cost control and visibility when moving to the Cloud

• Unpredictable IT resource usage and costs

• Complexity to allocate costs for shared IT resources

Solution:

• Chargeback and showback

• Budget management and real-time alerts • Cost management

• Cost allocation with ready-to-use rules and reports • Cost analysts and service TCO

Benefits

• Enabling cost recovery for IT resources based on usage

• Cost transparency to understand true costs of IT/cloud services

HP Software: Apps meet Ops 2015

© Copyright 2015 Hewlett-Packard Development Company, L.P.