©Andersen Consulting 1998 Managing an Information Center (Computer Data Center) Josef C. Mueller Associate Partner

©Andersen Consulting 1998

Managing an Information Center(Computer Data Center)

Josef C. MuellerAssociate Partner


Objective

To discuss how to manage a data center


Agenda

• Introduction

• Information Center Best Practice

• Information Center Resources Management

• Information Center Financial Considerations

• Case Study

• Open Discussion



Introduction

Technology

BusinessProcesses

PeopleBusiness

Integration

Strategy

SystemImplementation,

Operation Architecture, Tools

SystemImplementation,

Operation Architecture, Tools

Human Resources Development,

Communication Plan

Human Resources Development,

Communication Plan

IT Strategy, IT Master Plan

IT Strategy, IT Master Plan

Methodology, IT Operation Processes

Methodology, IT Operation Processes

Successful Information Centers take a holistic(total) approach . . .


Introduction

Goal:Harness the power of IT

Planning

QualityManagement

Training

Service Management

ResourcesManagement

Data CenterOperation

TechnicalInfrastructure,

SolutionImplementation

What are the key activities of Information Center Management ?


Introduction

Strategy & Design

Business Process

AlignmentApplication

Development

Application Maintenance

NetworkIntegration

OperationsManagement

Desktop

New Functionality

SoftwareInstallation

Strategy

Business Process

Help Desk(Tier 2/3)

Software Upgrades

Minor Enhancements

Telecom (3rd Party) WAN LAN

Hardware MaintenanceAsset

Management

Help Desk (Tier 1) Hardware Operations Disaster Recovery

Service Managem

entWhat are the roles and responsibilities of Information

Center management?


Introduction

• Application programs run on a mainframe host system• Centralized IT system management and operation• User IT environment managed locally at central location• Complete single proprietary systems, solutions • IT operation infrastructure and processes are simplified.

Computer Room

MainframeOperation

Application Maintenance

Helpdesk

User/ Internalcustomer

Information Center environment typically used to be mainframes and centralized (some may still be this way

today)


Introduction

• Distributed environment, multi-tier clients/servers application • Complex IT system management, operation and control• Various extension/implementation of proprietary systems, solutions

Information Center environments today are significantly more complex and demanding than in the past . . .


Introduction

Desktop

LAN Admin

Help Desk

NetworkManageme

nt

DBA

Operations

Mainframe

Security

IT O

rgan

izati

on

Non IT DevicesApplicationsDatabasesSystems Networks

Complexity !

Various IT functions have to put great amount of effort to deal with these complexity and the interdependency of

components in the IT systems.


Introduction

Desktop

Help DeskLAN Admin

DBA

Operations

MainframeSecurity

NetworkManageme

nt Chaos !

IT functions need to work across several components, resulting in . . .


Information Center Best Practice

Where are we going?

Where are we now?

What will we

do ?

Vision Assessment

Strategy

Formulation

Planning

How will we do it?

Key Question

s

DESIGN BUILD RUN

Journey & Program Management

System Design/Build

Service Delivery Design/Build

Run

Key considerations:• Value preposition • Business process,

functional• Technology

architecture• Human resources,

capability, sourcing• IT processes and

policies

An Information Center manager must ensure that any IT initiative has been planned at all phases; Design, Build, Run . . . and deliver value . . .



Execution Architecture

Execution Architecture

Provides services to

ManagesBuilds

Builds Manages

DevelopmentArchitecture

DevelopmentArchitecture

Operations Architecture

Operations Architecture

Builds



Manages

Technology Architecture

ApplicationsApplications

The Complexity of Information Center environments requires System Design/Build to be more then just functioning

applications - a robust Technology Architecture is needed to operate applications

System Design/Build:

• Application• Execution

Architecture• Development

Architecture• Operation

Architecture



The Service Management Framework provides guidelines for Computer Data Center managers to better manage computer

operations and be more customer oriented.

Use the best practice; service management framework; work down to details

Service Delivery Design/Build:

• Scope and service items• Volume• Service Levels• Service management

processes• Operation architecture• Organization

Service Management Framework

Systems Management

ServicePlanning

ManagingChange

Users

Developers& Vendors

Service Planning:

• Disaster Recover Planning & Contingency Planning

• Capacity Modeling & Planning• Organization Planning

Service Planning:

• Disaster Recover Planning & Contingency Planning

• Capacity Modeling & Planning• Organization Planning

Managing Changes:

• Operational Readiness Testing includes Production Validation, Release Testing

• Software & Data Distribution• Asset Management includes License Management,

Procurement Planning, and Procurement• Rollout Management includes Rollout Planning, Site

Assessments, Initial Installation, and System Component Configuration

• Change Control includes Release Control, Migration Control, and Release Planning

Managing Changes:

• Operational Readiness Testing includes Production Validation, Release Testing

• Software & Data Distribution• Asset Management includes License Management,

Procurement Planning, and Procurement• Rollout Management includes Rollout Planning, Site

Assessments, Initial Installation, and System Component Configuration

• Change Control includes Release Control, Migration Control, and Release Planning

System Management: • Production Scheduling • Print Management• File Transfer & Control (Run-time Controls) • Mass Storage Management• Backup and Restore and Archiving• Monitoring includes event, performance &

fault management• User account/ID administration

System Management: • Production Scheduling • Print Management• File Transfer & Control (Run-time Controls) • Mass Storage Management• Backup and Restore and Archiving• Monitoring includes event, performance &

fault management• User account/ID administration

Service Management: • Problem Management • Request Management• Service Reporting• Service Control and Monitoring• SLA Management

Service Management: • Problem Management • Request Management• Service Reporting• Service Control and Monitoring• SLA Management

Service Level Agreement: • Service scope and details• Service priority and processes• Service management, metrics, KPI and

reporting• SLA maintenance, change procedure

Service Level Agreement: • Service scope and details• Service priority and processes• Service management, metrics, KPI and

reporting• SLA maintenance, change procedure



Computer Data Center managers must ensure the

services provided consistently meet the user needs and are continuously improved

• Define and agree on the services and service level

• Establish metrics, KPI and process to measure, monitor and review

• Improve by reviewing, benchmarking and apply change

• Review target service level

Change Request

Customer Groups

Measure

ReportReview

Service Management Framework

SLAs

Service Baseline



• Keep it simple KPIs need to be simple and

easy to understand Fewer is better KPIs should focus on

measuring the behavior we want

Performance management and compensation need to support KPIs by incentive the behavior.

Metrics are the key to improvements. What you measure is what you get. key performance

indicator

• Meaningful KPIs must be meaningful to

the people who will use them and be measured by them

• Controllable The person or people being

measured by the KPI must be able to control the KPI to some extent.

Guideline for Designing KPI



KPIs for Computer Data Center must be setup as a part of

top-down process in order to leverage the value to organization strategic objectives.

OrganizationCritical Success Factors

OrganizationStrategic Objectives

OrganizationKPIMeasures

Group/ Department Objectives

Organization

Group/ Department

Individual

Group/ DepartmentCritical Success Factors

Group/ DepartmentKPI Measures

Individual Critical Success Factors & KPI

IndividualGoals


Information Center Resources Management

WHY I NEED TOOLS?

MIS Faces New Support Cost Paradigm

Data CenterData Center Client / ServerClient / Server

Gartner Group recommends MIS invest in technology to reduce labor costs $200 - $300 per node per year

Hardware15%15%

Software6%

LAN2%

Support77%

Other10%

Software14%

Support28%

Hardware48%



Total Cost of Ownership (TCO) is the total cost per seat incurred across an information center through provision of continuous computing services to its

users.

TCO Cost Component

Client

Network

ApplicationServer

Management

Support

Training

General Operations

TCO Cost Components

- Capital Components - Operational Components



TCO Cost Component

Client

Network

Application

Server

TCO Cost - Capital Components Breakdown

Client

H/W • PC • Monitor • RAM upgrade• Disk upgradeS/W• Operating

Systems• Utilities

Network

H/W •Cable •Hubs •Routers•SwitchesS/W•Network Mgt.

Application

•Personal Prod.•Group Prod.•Business App.•Database

Server

H/W

•Server •Ram upgrade

•Disk upgradeS/W•OS•Utilities



TCO Cost

Component

Management

Support

Training

General Operations

Management

•Asset Inventory•Change/Config.•Security•Event/perform•Storage•User admin.

Support

• How to/break/fix Operating System

• Application• Network• Hardware

Training

•End-user•IT

General Operations

• Architecture /Planning

• Product Testing

• Vendor Management

TCO Cost - Operational Components Breakdown



ApplicationsApplicationsApplicationsApplications

ComputingComputingInfrastructureInfrastructure

ComputingComputingInfrastructureInfrastructure

IT StaffIT Staff

ToolsTools

ProcessesProcesses

HardwareHardware

Help DeskHelp Desk

TrainingTraining

Line(s) of Line(s) of BusinessBusiness

Line(s) of Line(s) of BusinessBusiness

IT IT DepartmentDepartment

IT IT DepartmentDepartment

The Cost of Computing Services



How the tools help lowering TCO?

Service Center:• Calls are related to

the customer / user• Problems are defined

against assets inventory type

• Provides history of asset lifecycle

• Find sources to problems

Benefits:• Improved

Service• Higher control• Faster response

time• Define business

dependent SLAs

IncreasedProductivity

Expert comment:

Average diagnosis time reduced from 17 min. to 8

min. when asset and system configuration is known at the

helpdesk

Service Management Tools




Service Center:• Defines the Change

types• Controls approval /

review of changes• Impact visible• Emphasize planning• Streamline

configurations• Builds experience

Benefits:• Availability• Improved quality• Lower Support

costsImproved

Availability

Expert comment:

70 percent of all problems are caused by changes to the

environment

Change Management Tools




Service Center:• Defines data

elements specific to inventory type

• Defines relationship between entities

• Define required workflow

• Loads data from many sources

• Provides history and monitoring of costs

• Asset verification

Benefits:• Auto Discovers

Network Objects• Collects HW/SW

inventory data• Lower software

distributes cost• Configures User

ID’s• Confirms install

IncreasedProductivity

Asset Management& ESD Tools




Service Center:• Opens a problem

ticket.• Notifies responsible

technician(s).• Escalates notification

is necessary.• Manages workflow

Benefits:• Monitors the

health of hardware & software.

• Provides criteria for proactive problem generation.

ImprovedReliability

Automated Problem Identification



Benchmarking in one of the best methods to search for the best practice. Benchmarking measures your

position against a known reference.

Reference PointReference Point BenefitsBenefits RisksRisks

• Self• Self• Learn how your

position has changed

• Learn how your position has changed

• No external reference point - Narrow focus for best practices

• No external reference point - Narrow focus for best practices

• Other Companies• Informal group• Other Companies• Informal group

• Comparisons with outside

• Identify “Better” Practices”

• Comparisons with outside

• Identify “Better” Practices”

• Non-standard measures

• Usually qualitative

• Non-standard measures

• Usually qualitative

• Other Companies• Formal Group• Other Companies• Formal Group

• Comparison with outside

• Standard measures• Research

foundation

• Comparison with outside

• Standard measures• Research

foundation

• Higher cost• May not address

you key issues

• Higher cost• May not address

you key issues



There is a number of TCO studies available for

benchmarking.Example of Benchmarking data

Note: Excludes end-user costs

Capital Labor

Software PC LAN12%

Mgmt. &Utilities

28%NOS

& Connectivi

ty

60%PC

Software

11%

37%

27%

25% 50% 75% 100%

21%Support

28%Operations

51% Administration

47% Operations

29%Support

24%Administration

— Gartner Model —

0%

25%

50%

75%

100%Hardware

3% Cabling

4% NIC

6% Bridge/Router

8% Disk Subsystem

11% Server

18% Help DeskInfrastructure

44% PC Hardware

0%

6% Hub Port

Gartner TCO Study



How is your staff workload compare to others?

Example of Benchmarking data

Worker Supported per IS employees by Organization Size



IS Staff Mixed by Organization Size (Percentage of staff by job category)

Example of Benchmarking data


Information Center Financial Considerations

IT spending is split into two components:

Non-Discretionary and Discretionary

Operations (Non-Discretionary)

Value Creation (Discretionary)

Examples:• Data Center Operations• Network Operations• Data Base Administration• Client/Server Systems Support• Systems Maintenance• Operation of Existing Applications

Examples:• New Applications

•Customer-Targeting Geographic Information System•Field Electronic Data Collection/Reporting•Sales and Marketing Database•Full-Featured Customer Service Workbench•Mobile Assistant

• Infrastructure Reinvestment

IT Spending



How do we optimize the IT spending?

Operations (Non-Discretionary)

Value Creation (Discretionary)

Ways to Squeeze Out Costs:• Reduce maintenance costs• Optimize vendor relationships• Consider alternative sourcing options• Invest in new operational technology

Ways to Increase Value:• Strategic Investment• Competitive strength• Value added structure• Market attractiveness• Hands-on excellence

IT Spending

Squeeze out costs from these tasks whilemaintaining high quality service

Invest sensibly on important IT and business opportunities where business value can be proven



How do you know how good you are in lowering the TCO?

How effectively the Computer Data Center contributes to lower the operational expenses?

LoweredCosts

LoweredCosts

Source: Gartner Group

Centralized data from distributed network

Enhanced end-user productivity

Successfulprocess automation

Application of advancedtechnology

Improved cost tracking & management

– Decrease downtime– Maximize asset

performance



How efficient is your IT operation team?

The benchmark relating to non-discretionary expenses on IT, shows that you are way above average, indicating a need to reevaluate the efficiency of your IT operations.

Non-Discretionary Expensesas a Percent of Revenue

0.00

0.01

0.02

0.03

0.04

0.05

0.06P

ercen

t of

Reven

ue

Percentile

YouAreHere

Maximum

Minimum

25th

75th

Average

50th

Illustrative



Does your IT spending support revenue creation?



Where is your IT spending level compare to others?

Source: Computer Economics, 1998 IT Spending Trends

Budgets as Percentage of Revenue by Sector



Where is your money allocated in comparison to others?

Source: Computer Economics, 1998 IT Budget Trends

IS Budget Allocation by Organization Size


Case Study

Background: Major European Railroad Group

The railway company was implementing new client/server applications to support changes in their business processes. This included upgrading 34 distributed sites from a main frame terminal to an interconnected LAN- based infrastructure. The Management of Distributed Environment (MODE) framework was used to implement a robust systems management and support capability to manage its distributed computing environment.


Case Study

Business Challenges

• Distributed LAN-based environment not effectively supported by existing mainframe-oriented support organization

• High fault rate and long resolution time

• Remote system outages not promptly detected by central support organization

• High Customer dissatisfaction due to poor system operations quality and lack of trained operations personnel


Case Study

Solutions

• Defined/prioritized MODE requirements.

• Selected and implemented systems and network management platform and tools (physical network, system hardware & system software monitoring, asset management, Help Desk, remote control, software distribution)

• Designed and built specialized monitoring components (backup, event notification)

• Implemented a number of standard system configurations

• Established local administrators and a centralized Help Desk capability

• Coordinated the management process for existing Help Desks

• Defined processes and procedures to be used during system roll-out and by administrators, Help Desk and technical support personnel


Case Study

• Benefits

• Improved reliability and speed of new LAN-system installations

• Improved technical support for end-users

• More than 400% decrease in fault resolution time

• Significantly reduced downtime for mission-critical business systems and applications

• Monitored and measured performance vs. established Service Level Agreements (SLAs)

• Strengthened financial control by tracking installed hardware and software across all distributed sites

• Prepared the company for the implementation of further remote sites and future client/server systems


Managing an Information Center

Open discussionQ & A

Documents

©Andersen Consulting 1998 Managing an Information Center (Computer Data Center) Josef C. Mueller Associate Partner