Service management in the cloud

Pink Elephant – Translating Knowledge into Results

Service Management and the Cloud

Presented by: Peter Hubbard

Pink Elephant EMEA Ltd

Think Differently. Think Pink

© Pink Elephant 2013 unless otherwise stated. All Rights Reserved.

Introduction – Peter Hubbard

Principal ITSM Consultant

Worked in ITSM for almost 15 years

Worked in all sorts of organisations, large and small.

One got to pelt his co-worker with plastic balls in name

of Release Mgt

Finds his job quite fun.

City of London

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Agenda

Why is the cloud something ITSM should worry about?

What can the cloud do for me?

How do I control the cloud, rather than it control me?

What should I send to the cloud and what should I

keep in house?

Questions

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Why is the cloud something ITSM

should worry about?

4


Was Nicholas Carr Right?

IT has become a commodity – IT is not proprietary

but infrastructure

IT is a transport mechanism

IT is highly replicable

The internet facilitates delivery of pervasive

generic applications

Cutting edge applications are available to all

“…the opportunities for gaining IT-based advantages

are dwindling. Best practices are now quickly built

into software or otherwise replicated.”

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Some comparisons of commoditisation

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Service vs. Technology

Service CatalogueEmail

Telecom

File Storage

Printing

Business Applications

Assembled Service Offerings Service Technology

Service = Outcomes, Not Technology

What does IT

deliver to its end

users and

customers?

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Just what is Cloud Computing?

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Service

Unit 3

External

Business

Unit A

External

Cloud

Supplier

Business

Unit D

Service

Unit 4Embedded IT

Business

Unit A

Business

Unit C

Business

Unit B

Business

Units

The Multi-Sourced Environment

Service

Unit 1

Service

Unit 2

Shared IT

Services

3 Service Supplier

Types

Service Z

Service Y

Service W

Service X

Dedicated

Service

Shared

Service

Outsourced

Service

© Crown copyright 2007 Reproduced under licence from OGC

Figure 3.11 Common relationships between business units and service units – SS Book, page 41

ITSM

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Technology Focus

Customer Focus

Business Focus

Value Network Focus

LOW

HIGH

Role Of IT/IS In The Organization

Infl

ue

nc

e O

n T

he

B

us

ine

ss

IT is perceived as an internal

business partner

IT customers are the customer of

the organization

IT has a single strategy and is focused on the

customer, but is perceived as an external

supplier

IT is focused on the integration and delivery of end-

to-end IT services (business solutions)

IT is focused on technology, infrastructure and applications are

treated as separate and largely unrelated domains

Service Focus

The Changing Role For IT

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A new role for IT emerges

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The Cloud in action: G cloud

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How do I control the cloud rather

than it control me?

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What could do wrong?

Cloud Sprawl

Critical data held

in incorrect levels

of security

Response times

from cloud services

don’t match to your

own

Unable to track

who has used

what

Mismatch with

your internal

change controls

Who will pay for

this?

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Demanding Times

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SLA Meltdown

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Losing Control

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So what do I do about it?

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Cloud Adoption Strategy

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© Pink Elephant 2013 unless otherwise stated. All Rights Reserved. 22

SIAM:- A way to control Cloud




How to Structure your Cloud controls



© Pink Elephant 2013 unless otherwise stated. All Rights Reserved.2424

Sample SIAM Governance Framework

© Pink Elephant 2013 unless otherwise stated. All Rights Reserved.2525

Sample SIAM Governance Framework


Key Success Criteria for SIAM

• Well defined and understood cross functional process, aligned across all

providers to allow for end to end service delivery

• Supporting RACI matrixes with responsibility and accountability for each

process, and the supporting activities, clearly understood.

• Ownership and control of the SIAM organisation MUST remain with the

customer. This ownership should be a defined and tangible role with activities

and deliverables expected.

• A clear, and empowered, body that can deal with any issues that arise

across multiple providers.

• Clear management information reports aligned to defined governance

controls that are put in place by the customer.

• Clear accountability, with supporting processes and integration between the

design, development, transition and operation of new services.


What could I send to the cloud and

what should keep in house?

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Sourcing Structures

Internal

Prime

Full Service Outsourcing

Shared Services

Selective Outsourcing

Consortium

Best-

in-C

lass C

apabili

ties

Dire

ct C

ontro

l


Figure 6.12 Service Sourcing Structures – SS Book, page 151

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Service Provider Interfaces (SPI)


Figure 6.14 Service Provider interfaces – SS Book, page 154

Service

Specification

Change Mgt

SPISPI

Sourcing

Relationship

Process

Definitions

Service

Contract A

Service

Contract B

Service

Contract C

Service Mgt

Software

Distribution

SPI

SPI

SPI

SPI

WHY?

To support development of sourcing relationships in a multi-vendor environment, guidelines and reference points (technical, procedural, organisational) are needed between the various service providers. These reference points can be provided through the use of Service Provider Interfaces (SPI)

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What Should Be Outsourced

Evaluate

service

candidates for

outsourcing

How does service improve business

resources and capabilities?

How is service connected to business

competitive and strategic resources and

capabilities?

Does service require extensive interaction

with the business?

Decision Strong alignment and frequent interaction –

poor candidate

Weak alignment and infrequent interaction

– strong candidate

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Sourcing Strategy

Scale

Ceiling

Multi-Vendor Sourcing:

• Best-in-Class transaction costs

• Leverage external expertise for continual service

improvement

• Increased flexibility to adapt to customer

demands

• Turn key capability at reduced investment cost

• Ability to integrate M&A activity quickly

Traditional Sourcing:

• Focus on core capabilities

• Lower, predictable cost of service

• Guaranteed service levels

• Turn key capability at reduced investment cost

• Freedom from the need to attract, develop and retain non-

core employees

Internal Shared Services:

• Cost reduction via process standardisation, simplification and automation

• Resource pooling through economies of scale

• Improved performance metrics

Capability

Ceiling


Figure 6.13 The service sourcing staircase – SS Book, page 153

Internal

Shared

Services

Full Service

Outsourcing

Prime

Consortium

Selective

Outsourcing

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Cloud Service Manager Course

Launch Date is Q2 2014


Service Management gets cloudy....

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Questions?

[email protected]

www.pinkelephant.co.uk

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