Business Service Management Hub

I know I have been quiet for the previous month, I took a little vacation and started becoming more attune to the discussion surrounding data, analytics, security, privacy and the value of our technologically connected world. First we have to rewind to the end of August when I had my first opportunity to discuss and explore the privacy discussion surrounding the use of technology and data to enrich our lives and business on Huff Post Live, “Get off my Cloud:  Floating the Risks of Big Data Storage ” (previous Qmunity post, Cloud Discussion:  Data Privacy, Availability and Performance on Huff Post Live). All of this technology sits on vast amounts of data that awaits being cracked open whether it be healthcare, location & GPS, marketing attendance, safety, cellular, data services, etc. the list is endless.

When I responded to a request to be on a panel with Huff Post Live, my mind was in my usual place of availability and performance of technology, not data privacy.  As I stated during the discussion, I firmly believe if you use technology and electronically push information about yourself into the public, it is searchable and accessible.  The first conclusion is to jump directly to privacy and someone monitoring/watching our every move. This is also driven by the folks taking the first stab at using these vast stores of data for what I’ll call “tracking” purposes. This is usual technology behavior, let’s track things and manage our known environment better rather than coming at it from a side of value and a value-add services. Ok, let’s take a few specific examples.

Social Media:
The simplest is Facebook. I’ve had the discussion with colleagues and friends about the accessablity to this information, let’s say when you are seeking employment or acceptance into a program. If it is public,  why shouldn’t it be accessable and why wouldn’t you expect it to be searched? I do a regular search on myself to see what shows up as we have long expected background checks to be performed in the past, this is just part of a background check. If you have something questionable, why would you publish it? I was a late bloomer to the world of Facebook and social media for this reason of privacy, but it wasn’t because I didn’t understand the risk, it was because I didn’t understand how to secure and use it properly. However, I use my credentials and name as it is part of building my own brand and credibility very regularly when I publish and comment and thus how I end up on panels like Huff Post Live. I look at the value and positive side of participating in the conversation, managing and using my credentials accordingly. I do recognize it is on me to manage the data and thus how it could be subsequently used.

Healthcare:
While on vacation in the local paper, cayCompass.com, there was an article regarding a new healthcare facility and the technology going into it to provide higher levels of healthcare to the residents. One of the discussion points was doctors using data to better diagnose patients. Again, the article took the negative side first regarding the “must use” the technology for a diagnosis. I’m not sure I want to remove the human subjective element from my doctor, however, I would welcome the use of my history and an all encompassing view of my current condition, weighing that against a database of possibilities that no human could carry with them daily, to make a better diagnosis. Why not make use of being able to carry that encyclopedia of information around with you to deliver better patient care? Again, the value side of the equation versus the“monitoring” of the physicians side of the equation. Both are useful and valuable.

Earlier this week in InformationWeek, there was an article titled, “Healthcare Execs Must Prepare for Big Data“, where the same discussion continues as well as knowing the location of patients, doctors, equipment to insure a safer environment and getting people and equipment where it is most needed. I most enjoyed the Wayne Gretzky quote: “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”  We have embraced technological advances to assist in healing us faster, making surgery less invasive and remeding illnesses that just a decade ago were less treatable. Why is using the vast amounts of data for split second decisions any different?

GPS:
There are several technologies that fall into this category. The two that caused alarm and again I would suggest it is because it was hyped against the tracking feature as the initial focus versus the value it brings to the table. On Huff Post Live this week,  “Texas School District Reportedly Threatening Students Who Refuse Tracking ID, Can’t Vote For Homecoming“, with the crux of the discussion being the embedding of an RFID chip into school ID cards to be used for tracking attendance and insuring that funding continues to the schools. This is useful, but not the value to the public and causes debate. How many of you ever punched a time clock? I have on multiple occasions, well that was an early and crude form of attendance monitoring / tracking. Why is it now that we can use technology to more accurately track and rapidly assess to take action of value with the data different?

Flip the debate and think about some of the most tragic incidents that have occurred in our schools in the last decade and one that is close to home for me at VA Tech. When I was in school, we roamed campus freely including all of the buildings. We didn’t have cell phones, we knew our dormmates, we phoned each other on land lines, we had an idea of where those close to us were, we stuck together in groups and I knew I could phone one of the boys from the dorm to meet me and walk me back to the dorm in the dark if I got stuck somewhere alone and felt unsafe. So again, I challenge folks not to just look at it from a tracking standpoint, but from a ease of security standpoint. Who’s in the building? Where are my kids? Did they make it to the bus? The list goes on.

During my discussion on Huff Post Live it was more around the use of cellular data. I watched a television segment recently on the tracking of license plates and taking pictures of cars around a city with the purpose being repossession. Again, under ordinary situations, no one is tracking the ordinary. Under stressful situations, it can assist in regaining a safe situation and uncovering details that might not have been available previously.

We could go on for hours with this one as it generates the most debate, however, we all have location tracking in our cell phones and tablets. We like to be able to sound an alarm or find our device, pinpoint a good restaurant, provide directions in a pinch, the list is endless. There is great value in using the technology and data and we use it everyday whether consciencously or not.

Marketing:
In the Wall Street Journal earlier this week the article, “Big Brother, Now at the Mall“, discussed how a mall kiosk is using facial recognition software to estimate sex and age to present advertisements to those seeking information. This is using data to drive value to both the consumer and the retail organizations. This has been going on for a very long time. How many rewards cards do you carry and use? The ability to present items to you has been happening here for quite a while. If this use of data is troublesome, stop using the cards for the points / discounts and asking for assistance. However, the value is to both the organization and us as consumers in finding items that might interest us more than others and stocking retail organizations with items more in tune with the demographics of the location and patron buying patterns. Again, let’s seek the value in the technology and stop jumping to the Big Brother conclusion, but the answer is always simple, don’t use the technology.

Security:
I’ll end with this final article also from this week’s Wall Street Journal, “House Report On Huawei, ZTE Will Pose Security Questions For CIOs”. The article suggests that a manufacturer of a cellular device is collaborating for purposes of espionage. Whether the threat is true or not, it points out the very real requirements to take security and use of data and devices very seriously in our organizations and plan for it appropriately. This week Sally Hudson, Security Research Director, of IDC and a colleague of mine, Tom Crabb, Senior Product Marketing Manager, presented a webinar, “Security Access Governance and the New Normal”, on this topic of knowing who, where, why, etc. is accessing data you own and for what purpose as the perimeter has widened over night and is extremely fluid. They discuss the risks and how to best secure your data. Ensuring you have secured your data then enables you to leverage that data with analytics in powerful ways to drive competitive advantage into your organization.

This is only the tip of the iceberg of the possibilities that lie ahead in our digital world. As IT professionals, we must constantly think of security, build it into our services, use of data and the value we can provide to our customers everyday. Technology, including the use of big data, will drive competitive advantage and the next generation of innovation, but it must be used, managed and secured wisely.

Finally, “Technology without Imagination – Commodity — Technology with Imagination – Endless  Possibilities” is something I firmly believe and we have all benefited. I challenge this coming wave of technologists to not make the mistake of the past in first applying the use of big data technology as inward focused analytics, but seek how to create value first and secure / manage it appropriately.

IT Transformation is and has been a hot topic for >20 years. Wow!  I was speaking to one of my analyst friends at Forrester not too long ago and we were chatting about how much waste exists in annual IT spend just “Keeping the Lights On” and how these metrics haven’t changed in >20 years. The answer has been simple, no competition, no catalyst for change.

This week I was reading an article from the NY Times Technology section, “Information Technology Spending to Hit $3.6 Trillion in 2012”, supported by information from Gartner and it pointed to this pent up demand for transformation within IT organizations. Much of the increase in spending is going to Cloud Service Providers and Consultancies even with economic challenges in Europe and China. There is an increase in Public Cloud spending by 20% representing considerable computing power and more efficient IT Systems due to complex systems, cloud computing and analytics. My reaction as I read the article was Wow again. Ironically, this comes on the heals of articles from the previous 2 weeks regarding the outage of the cloud and Amazon’s Ashburn, VA data center.

My first comment is no one outsources services because it is cheaper. Services are outsourced to create change that cannot be achieved from within. So let’s break this down into the great change that is underfoot and IT Transformation based upon cost, value and innovation.

Read full story here …….

I have posted a couple of new posts on NetIQ’s Qmunity and wanted to share here as well.  IT is under great Transformation to get to Service Brokers who can manage Service Governance.  This is the convergences of Development, Operations and Security functions within IT.  In the first post I discuss the convergence and the second post is on the topic of Service Governance and new research from Forrester.

Enjoy!

Overhauling Service Management – Developing, Operating and Securing

Previously I posted, “Why Service Management” discussing the melding of IT and the business for common objectives in managing, measuring and communicating service performance.  The recent Gartner Infrastructure and Operations Management Summit (IOM) also provoked the status quo of IT Operations andCameron Haight began to challenge and discuss a new term, DevOps, where development and operations are more closely aligned.  The post event Trip Report provides a glimpse into the many thought provoking challenges and discussions of the week.  continue reading…

 Communicating Service Performance – Beware of the Competition

We’ve discussed service management and the transformation that IT is undergoing with the catalysts being the cloud, service providers, SaaS, social media, collaboration, mobility, BYOD, etc.  The root catalyst is choice and options in the market and the competition speaks in terms of service value and service performance. I posted a question in LinkedIn regarding how much of your services are in the cloud today and expected to be next year?  Join the discussion.  The first answer was as I expected, a law firm that isn’t in the cloud and isn’t going there because of security concerns.  I responded as I bet they use services that are internet based, research likely, and thus they are in the cloud.  Just like a recent customer discussed having hundreds of apps in the cloud that now need to be reconciled, rationalized and managed for cost.  How did they get this point?  Easy, credit card subscriptions – cheap and easy to do business with.  continue reading….

The Hub Commentary_

Nice article!  Just because you can measure it, doesn’t necessarily mean it needs to be measured.  Number 5 in the list is the one I snap to right away.  IT measures technology like baseball stats.  As my father always said, “baseball is a team sport that allows individuals to excel, but they must all excel at once to win the game”.    I believe IT measures technology as if those measurements prove they are doing something and creating value, when the company says, “so what?”.

The worst part about these measures is that it drives the wrong behavior.  Let’s pick on the help desk as an example.  Counting the number of calls, number of closed tickets on the first touch and the number of tickets closed in <15 minutes.  During my first software job as a professional services consultant, the first bit of custom code I had to write was for a customer to keep the help desk analysts from “cherry picking” the easy calls out of the queue and force the top of the queue to be selected.  Really?  This is because of how they are measured and we wonder why the business is unhappy with service and the end of the service desk is near according to the Top 10 Trends from Gartner.

These metrics are not driving quality or quality of service, but how many tasks I can do and how fast I can do them.  I cannot believe in 20+ years these metrics haven’t changed and it is just now that Forrester is publishing this article.  This is why IT is being outsourced and how the cloud is driving change into the organization.  See number 11 in the list and behavior.

Number 13 is classic and reminds me of my first position with EDS and a manager telling me, “you can make any chart tell the story you want to tell”.  Meaning diagrams from spreadsheets.  Yes, this is correct.  Why on earth would I push a chart that illustrates poor performance?

These measures are all the commodity of IT and why it is outsourced.  Instead of justifying and seeking to measure against benchmarks (number 9) as I was often asked as a former Industry Analyst for META Group, why not work to change the 1-2% of revenue that is spent just keeping the lights on – operating – which is what these traditional metrics measure.

Kudo’s Forrester, let’s start measuring value, driving the top line revenue with technology and innovation and improve the bottom line by reducing the amount of revenue (1-2%) that is spent just keeping the “lights on”.

How are your metrics changing with the advent of the cloud and driving value?

Michele

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In a recent Forrester report – Develop Your Service Management And Automation Balanced Scorecard – I highlight some of the common mistakes made when designing and implementing Infrastructure & Operations (I&O) metrics. This metric “inappropriateness” is a common issue but there are still many I&O organizations that don’t realize that they potentially have the wrong set of metrics. So, consider the following:  (Read Full Article…)

The Hub Commentary_

I couldn’t pass on this post this week.  What is interesting is the amount of commentary and the chord the author struck.  What I would find interesting is juxtaposing this list of CIO’s against their competition in the Fortune 500 list for 2012.  Do they lead their industry?  Are they on the move?  I suspect they are.

For those naysayers about the Social CIO’s, I have to mention that how the leadership acts, tells you a lot about the organization.  How personable is the organization regardless of size? Are they Tweeting for sake of Tweeting or is there content linked to the Tweet that is insightful?  There is method to the madness of jumping into the social media marketplace to advance your organization.

This is a whole new generation, they expect to surf the web/Tweets, quickly access data and make a decision about where they buy and why.  These are the future buyers, workers and leaders in the business world.  It’s time us old timers understand. learn and use these tools in a very competitive world.

How is your organization entering the Social World?

Michele

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The transformation from traditional business to social business is incredibly difficult. As is the case in any organizational metamorphosis, making technology decisions must take worker behavior and corporate culture into account, since people and culture are by far the biggest obstacles to change (Read Full Article…)

I traveled the globe from October to February meeting with customers and our sales teams discussing NetIQ’s IT Operations Management (ITOM) value and solutions, then I traded in wings for a bit.  Now it’s time for one of my favorite battery re-charging conferences of the year, the Gartner Infrastructure and Operations Management Summit (IOM).  I enjoy the Summit to see old friends in the vendor community as well as many old analyst friends, but this year there is a lot of buzz around the Summit and ITOM has become the talk of the town again.  Here are few quotes and phrases from the opening pages of the Summit Agenda:

• “Delivering Accelerated Business Value:  Cloud, Mobility and More”
• Hot Topics:
  • Enterprise mobility
  • Private/Public cloud computing
  • Moving beyond server virtualization
  • Cost optimzation
  • Data center space, power and cooling
  • ITIL and process improvement
  • Improving IT service quality
  • Business value
• “The reign of the PC is over.  A new era is emerging, one that will require enterprises to fundamentally rethink how they deliver services to users.”

There are many sessions on the power of these emerging technologies, how we will manage them, how we will deliver value to the business and how technology is no longer just operating the business – technology is powering the business.  At least that’s what our businesses are expecting in the coming couple of years and how the competition with the service providers is stacking up and pushing the IT Wake Up call.

I’m jazzed to start my day tomorrow with 3 back to back keynotes with a couple of old friends:

• 10 Emerging Trends that will Impact Infrastructure and Operations – David Cappuccio
• Applications 2020:  The Impact on Infrastructure and Operations of Current and Emerging Trends in Applications – Valentin Sribar
• The IT Operations Scenario – Ronni Colville & Deb Curtis

Then we move into lunch, come see us at the NetIQ solution showcase to chat about the sessions with my old friends and how we see their insights coming to life in our every day worlds.  I’ve been posting on the need for IT to better align in how it speaks of technology in the business as services and driving top line revenue rather than just bottom line with cost savings for a while now.  In the last bullet above from the opening pages of the agenda, the one thing that did strike me odd is “deliver services to users”.  I would restate that as it is how we will “deliver services to our customers”  to drive revenue.  Yes, driving efficiency into the organization is part of the IT balancing act, but the first focus has shifted to the customer and value.

Then I’ll finish the afternoon with:

• Top 10 Strategic Technologies for 2012:  Will You Be Able to Manage Them? (Before They Manage You?) – Cameron Haight
• Compuware, VMware and Dell will provide simultaneous session with a App Performance, Cloud Mgmt and a CIO Panel, repsectively – How will I choose?
• 2 More Choices to Make:
  • VDI and other Virtualization Strategies to Securely Support and Manage a Dynamic Workforce – Neil MacDonald & Philip Redman
  • Leveraging Mobility, Content and Communication in you Business Processes – Bern Elliot
• 2 More Final Choices to Make:
  • Lessons Learned from Early Adopters of Social IT Management – Jeffrey M. Brooks & George Spafford
  • Networking and Mobility Trends for the Next Decade – Tim Zimmerman

Then we are back to wrap up at the NetIQ solution showcase with a head spinning with many new viewpoints and ideas.  I look forward to speaking with many of the attendees to gain their insights into the sessions, stop on by and join the conversation, follow us in real-time on Twitter and send your comments to these posts.

As you can see from my agenda for just the first day, many new trends to wrap our management arms around to provide flexibility with balance of controls.  Change is coming fast and furious and managing it with controlled risk will be the key to the successful in the coming year.   I have some choices to make tomorrow regarding the sessions I can attend, but look forward to hearing about the risks and value of new technologies applied to our business challenges.  You even see a little Social Media has creeped into IT Management.  Wonder what that’s all about?  🙂

I’ll send a few early comments on Twitter tomorrow during my adventures.  Follow:  @BSMHub this week and catch the real-time insights, at least my perspective, of the conference.  I’ll post my take aways each evening.  Drop me your comments, I’d love to hear what’s happening out there in the real-world.

Michele

In my last post, Eat or be Eaten – IT Transformation Underway, I discussed the transformation IT as we know it is undergoing. Last week I had the opportunity to listen to my good friend Eveline Oehrlich of Forresterpresent Reboot Service Management as hosted by ITSM Academy, confirming many of the discussion points from my previous post and had me thinking about my next series of posts.

The IT is being dropped by more and more folks in the industry and ITIL is being discussed less and less due to negative feelings surrounding it.  Business has reached the point of frustration hearing too much about IT, technology silos and processes at the same time the market has opened up with new buying options removing the perceived lack of competion IT has enjoyed for so long.

I initially was going to start this series with Why Business Service Management, however, after last week’s discussion led by Eveline, I also agree, to shed the IT and business delineations of the past. Now I ask myself what is it we need to focus on? Why is this transformation underway? The answer had hit me quite easily earlier this year, it’s simple. At the end of the day we need to answer a couple of simple questions:

• Are we open for business?
• How are we performing?
• What is our current level of risk?
• Are we operating efficiently?

These are the questions at the crux of this transformation into a center of innovation driving the business and a small operation managing the commodity as efficiently as possible. In slide 7 of Eveline’s deck, she discussed how technology demand is up even with declining revenues because organizations see the power that technology can bring their organization. There are 3 facets to this: Demand for technology, Growth of revenue and Decline of costs. The next few slides and discussion supported a complex environment, self service and support of technology and technology savvy workforce. The technology is moving to the business with the business buying their way into a center of innovation, leaving old IT to commoditize and operate the legacy. The credibility gap between the technology savvy business and the current IT organization is growing and thus the shift empowered by new, easy buying options.

Very few organizations perceive their current IT organizations will drive growth for their organization because most feel their IT organization does not understand the business. Businesses are seeking growth and customer loyalty far above just driving out costs in the current environment. The businesses are seeking guidance in applying technology to drive growth and are spending to see that happen. These will be the leaders of their industry in the coming year.

The most interesting chart in the conversation last week was slide 22 and where IT is placing their priorities. IT prioritizes efficiency and cost where they have a great opportunity to drive revenue, customer loyalty and competitiveness for the business in the market. I assume the folks attacking driving growth are in the minority as it is the greatest change for the current IT organization. The level of complexity to manage technology increases the more the business subscribes to their own disparate services across business units. As this gap grows, this is the point of inflection where I believe the new center of innovation will evolve from to centralize management again, but in a business fashion versus an operation fashion as we have today.

As the discussion began to come to a close, we look at slide 59 and 60 and see that 45% of organizations will have SaaS services by the end of 2012 and 60% by 2013 with businesses shifting from managing cost and focusing on business agility. This is why I found slide 22 interesting as most IT organizations are still focusing on cost. This is where I believe the center of innovation and operations for the new IT will evolve from because the current IT cannot answer the questions above and have no idea how technology impacts business. Most IT organizations manage all technology the same, box on / box off is equal to severity 1, when they should have visibility to business impact setting priority and how management focus of resources are applied.

So Why Service Management? To know if you are open, performing well, managing risk and operating efficiently. It’s about the service of your business, not the technology and the business is seeking roles, employees and service providers that drive growth, customer loyalty and market competitiveness. The question is will they hire the talent from the outside or will the inside evolve to transform the organization and become strategic to apply technology rather than just operate the technology.

It’s not just about contracting cloud services for the sake of it, but a strategy of applying the right technology, deployment option and manage it and bake that management into the service to manage and grow the business.  In the next posts I’ll discuss each question in further detail focusing on:

• Are we open for business?  Availability and service views and management
• How are we performing?  Performance of the service both from the technology & business perspective
• What is our current level of risk?  Risk both operationally and from a security perspective
• Are we operating efficiently?  Leveraging automation and standards

I believe technology will fragment and decentralize before coming back together with centralized management, but it will be management of services and the application of technology to drive growth, thus the center of innovation. The business is already creating this capability, it’s just a question whether the inside folks are part of the strategic movement or left with the operational management.

How is your IT organization evolving?

Michele

The Hub Commentary_

The pay-as-you-go model counts on customers over using without regard to usage thresholds, much like company provided mobile phones.  Cloud providers make it easy to get started and even easier to over use.  I commend Amazon for putting some basic thresholds and emails in place, but the responsibility to monitor and manage services resides with the customer.

The monitoring, management and security of services and workloads in the cloud are the responsibility of the customer to instrument.  These are the hidden and unaccounted for costs of the cloud.  That which sounds cheaper on the surface is rarely cheaper.  Frustration levels are high and the race to the cloud is fast, beware of hidden costs.

It is the responsibility of the customer to manage the service provider, monitor and manage service quality, security and usage.

How are you managing your service provider?

Michele

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Amazon Web Services users can now start receiving billing alerts that help them continuously monitor their cloud costs, the company said on Thursday.

10 most powerful cloud computing companies

One of the basic tenants of cloud services like those offered by Amazon is the pay-as-you-go model, where the eventual monthly bill will reflect actual usage. But when usage varies from hour to hour, it is always a good idea to log in to the AWS portal and check account activity on a regular basis, according to an Amazon blog post.

(Read Full Article…)

The Hub Commentary_

Nice article last week walking through many of the security and management considerations when evaluating services appropriate for public cloud.  Security and Operations are coming closer together as architecture for services are considered for organizations.  This discussion illustrates the transformation that is occurring within organizations – the movement from operations to innovation.

The decision to move services to the cloud considers business impact and value in architecting and deploying services as well as security and management.  The service provider is providing the infrastructure, but the service is still owned by the contracting business and must be instrumented for management.

Likely not a thought of the author, but management of systems and services has always been a follow-on to new technology deployment and use.  I found the irony in the article that security was first and the management discussion followed.  The race to the cloud is fueled by the notion it is cheaper, but when the fall back is we can do it manually, write a few scripts, manually keep track of configurations and compliance, etc. I have to ask, how much cheaper can it be if automation and management are manual.

Management tools available today were built with different technologies and uses in mind.  The right management tool for the right technology should still be used, but what is surfacing is the requirement to stitch the fabric of the service, how it is deployed and managed together to gain a holistic view of the service.  The days of an atomic service on a single platform are long gone and waiting on management to catch up to manage all combinations of solutions and platforms will be an endless wait.  The best approach will weave together the fabric of service components with the proper management tools.

How are you stitching together your cloud strategy and is management an afterthought?

Michele

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CSO — Many enterprises are reluctant to move critical cloud applications out of their own data centers and into the public cloud due to security concerns. Yet the same automated, consistent provisioning that is essential to managing either public or private clouds (as well as to the process of thinking through a cloud deployment) can also offer the fringe benefit of improving security.  (Read Full Article…)

The Hub Commentary_

Here is another industry under great change and a state with the foresight to attract and keep technology talent.  Again, I applaud the efforts of this woman, Vice President and CIO Mamatha Chamarthi, for having understanding and putting in place a strategy to right source the commodity and the high value stays in-house.

She is absolutely spot on with her strategy, it’s not that all of the technology function are going to the outsourcers and the cloud, it’s the commodity.  The internal roles are changing to apply technology for innovation in to grow the business.  This requires business knowledge and how to apply technology for innovation.  These roles and duties are unique to each organization and their strategies for growth.  These functions have never been a good target for an outsourcer unless the skill set does not exist in the organization to drive business innovation.

How are the roles in your organization adjusting to this great transformation of IT?

Michele

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Consumers Energy, a large utility in Michigan, has hired an offshore outsourcing firm to take over some of its IT operations. But instead of cutting its internal IT employees, it is retraining them for new types of work.  (Read Full Article…)

The Hub Commentary_

I’ve often written that you do not outsource for cost savings.  Cost savings can be achieved when right sourcing and giving up control, taking advantage of the economies of scale offered by a provider and allowing standard services (the commodity services of your organization) rather than custom services.

I find the commentary that follows the article interesting.  While I might agree that it may be an article for soft selling Google Cloud Services, you would be foolish to think any vendor doesn’t write to their strengths, but also wonder if some of the commentary comes from those IT organizations reluctant to change?

You don’t go the cloud just because you can, you right source it and must manage it accordingly and then you can spend your budget with the greatest gain.   In a CIO article today citing an MIS Quarterly study, for every dollar/employee invested in technology, twelve dollars/employee can be realized in sales gain.  The time for management and innovation investment is upon us and outsourcing the commodity.

How are you investing in the cloud?

Michele

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The economics of cloud computing are driving down the cost structure of business so far and so fast that it’s scary, Google CIO Ben Fried says.

“It deeply disturbed me … in 2006, 2007 consumer companies were forcing efficiencies on a scale never seen before,” Fried said Thursday during remarks at the Bloomberg Link Enterprise Technology Summit in New York.  (Read Full Article…)

The Hub Commentary_

Good Monday Morning!  Scanning the early news and came across this list of metrics from Forrester that they are building out for their next conference.  In the comments to the article, there is a link to the KPI Library.  

These IT metrics have been around for decades and are good for evaluating and implementing process improvements.  In this day of the Cloud and competition for IT business, I might suggest that these need to be in context of the service and could even go one step further and categorized for 4 high level services:  Growth, Quality, Productivity and Cost.

All services are not created equal and thus the metrics for each will vary based upon the priority of the service to the business.  I’ve posted here on this chart of services last week and in a previous post.  These metrics are suited for IT Operators, while the rest of IT is slowly being outsourced or moved to the business focusing on the services offered by the business and the services that will drive the business.

How do you measure your technology for the transformation that is underway?

Michele

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Help us build out a list of metrics that organizations are using to measure their infrastructure and operations departments. We will use this data to create a list of consensus metrics and benchmark their values.  (Read Full Article…)

The Hub Commentary_

Cloud for the sake of cloud and a technology will leave organizations following their competition.  I could not agree more and have many times commented here on The Hub regarding the use of the right technology deployment for the service, cost and value as described in the post on defining your services.

Now more than ever if IT is to achieve getting to service orchestrator ,they must start managing technology as a service over silo’d technologies.  This is going to requiring baking management into the services such that they are service enabled and provide proactive visibility as to their performance in real-time to mitigate risk and deliver the highest quality of services.

Management always lags new technology, but in this case to achieve the imperative of becoming a service orchestrator / broker / manager, IT has to evaluate a new way of managing the services they are responsible.  Yes, IT is responsible for the service regardless of how it delivered.

With buying decisions moving to the business, the job of managing services will get harder before it gets easier.  The business is taking over out of frustration to drive change, however, ownership of managing the service is being overlooked and putting IT back into the reactionary seat.  Now is the time to move from reactionary to proactive service broker.

Are you driving or riding as your business takes competitive advantage or loss?

Michele

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If the innovative ways that businesses are using cloud computing haven’t set off alarms within your organization, it’s time that they did. Enterprises that look at the cloud solely through the lens of technology will be left behind by more agile competitors that use the cloud to develop innovative new business models based on faster time to market, new modes of customer interaction and more efficient operating models. Likewise, ITservice providers that market their cloud offerings simply as technology solutions will be outmaneuvered by competitors that position their offerings based on the business value they deliver.  (Read Full Article…)

The survey, which was conducted in the first half of this year, measures the maturity of BSM initiatives industry-wide. The report provides unique insight into the working relationship between IT and their business counterparts, across departments and roles. It measures the effectiveness of IT service support and identifies the current use and planned adoption of ITIL v2 and v3.  Read More Here . . .

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Nice set of statistics from large, small, global organizations both from IT professionals and business executives.  In 2011 15% of technology buying decisions were made by the business, in 2012 it is expected to rise to 25% and by 2015, 50% of buying decisions will be in the business.  The level of frustration that IT sees themselves separate from the business they enable is driving this trend.  

In a recent Gartner Forbes Survey of Board of Directors, it was found that “65% of Board Members hold ‘high to very high’ expectations for IT strategic contribution to the business in 2012”.  Your business is counting on you to deliver value, are you ready to take the lead?

Are you “keeping the lights on” or are you powering your business for competitive advantage?

Michele

Here are a few topics around monitoring the Enterprise that are common problem areas for IT.   While this is not the entire list, it is a common problem area I hear about often.  Do you have more, please let me know.

1) You have many tools monitoring your infrastructure. While you may be feeding events from many tools into your favorite management tool (AKA: Manager of Managers), you still rely on the underlying consoles for day to day management (IE: while events are able to come in, you are not able to access other features of the underlying management tool to look at performance charts, issues actions against alarms, seeing topology maps, etc).

2) While looking at a sea or red, it is not quickly obvious which outages or performance problems should be worked on first. Is it easy for Level 1 operators to know that server1.mycompany.com is a critical component of three different important company Services (IE: EMail, Purchasing, etc) and server2.mycompany.com is a single node is a cluster of ten and not as critical.

3) The IT Department is graded on the availability of the Services (and/or systems) and you have to manually update spreadsheets at the end of the period (monthly, quarterly, etc) to determine your grade. You have no way realtime to see where you are at within an active Service Level period. You are not able to map current outages to key/important SLA’s.

4) It is not clear that help desk tickets have been opened for a problem identified by one of your management tools… or the current status of the ticket… or if change requests has been opened to address the problem.

When looking for your next upgrade, one stop shopping to a single vendor is not always ideal. The Enterprise has many tools from many vendors and while the one particular management tool has ways to integrate with third parties, it was not designed to do full fledge bi-directional integration. Most tools report on how you did for an SLA and ignore how you are currently doing.  Mapping of critical business processes and/or services is typically within a silo (IE: just that management tool, it might have some additional feeds, but not a true end to end view of the service and components supporting the Service). Many tools open tickets, but very few allow you to visualize all aspects of the total health of the device (think all the ITIL practices here).   Use a product that was designed from the ground up to integrate, correlate and visualize vasts amounts of data from several underlying management tools.

– Tobin

Organizations practicing Business Service Management (BSM) have reaped benefits by aligning their IT with their business processes, improving end-to-end management and standardizing and automating routine tasks. Latest market trend shows CIO’s are slowly adopting cloud computing to reduce costs, increase storage, use the flexibility of automation and ultimately freeing up IT resources to stop worrying about server updates and shift focus on innovation.

Companies offering BSM are now faced with a new set of challenges that makes me question is BSM ready for the cloud? Service Level Agreement, which is absolutely vital and important for engagement of service or product, should now monitor, measure and report end user’s experience or end user’s ability to consume resources rather than customer based agreement. Performance challenge would be to provide end-to-end view in a hybrid cloud computing that spans a combination of on-premise, off-premise, physical and virtual environments by testing for bandwidth, connectivity, scalability, and the end user experience. Ultimately BSM should address security concerns that prevent companies to save their important data outside the firewall.

Given the challenges and also the benefits of cloud computing its wait and watch to see if CIO’s invest and adopt BSM for cloud computing.

Manju

For several years, analyst told us that you must have Discovery in order to do a CMDB project.  Sure… I’ll buy that concept, but it doesn’t mean I have to start with it.  I think discovery does wonders for a CMDB, as long as your CMDB has a good way to drink from the firehose  🙂

One obvious starting point that is typically omitted is leveraging existing tools that do different types of discovery.  Connecting into the existing management tools to get inventory types of data about the devices is powerful.  Several of the tools are able to determine the type of hardware, OS installed and a slew of other tidbits.   Integrating with other tools such as Help Desk, Change Management and Asset Management systems can provide even more information such as the applications or services being used, potentially a list of the end customers/users in order to provide a impact mapping.

The typical difference between a management system that has discovery capabilities and a full fledge Discovery product is that the Discovery product also does relationship/dependency mapping while the management tool understands different levels of health and availability.  Both are useful, both are potentially good starting points.

A good starting point to feed the CMDB might be to connect into existing management tools, bring in the CI’s it knows about, the attributes it understands and then expand from there.  There are several silo’s of data to pull from.    Discovery tools typically work on schedules and sweep the network, integrating with the existing management tools provides a more up-to-date, closer to real-time update to the CMDB…. oh wait, that assumes the CMDB is able to consume it in that manner, the list of vendors just got real small.

– Tobin

The Hub Commentary

Unclear requirements, ambiguous priorities, lack of resources and unrealistic timelines are all notable reasons for failed projects.   But these are only a few…check out other obstacles that cause many projects to crash and burn and the strategies to recover those failed projects.

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Failed projects are costly, so a sound project recovery strategy can pay off handsomely. A new study from project management firm PM Solutions, “Strategies for Project Recovery,” says the average American company manages $200 million in projects each year, with perhaps one-third of those, or $74 million worth, at risk of failing. But action strategies can salvage faltering projects about 75% of the time.  Read more…

Business Service Management practices have the greatest chance of success when:

• The solution provides several different views of the same data. The technical team needs a few different views (top down, bottom up, inside out), the end users of the systems (internal or external customers) want to see the services they are using along with the health (email, payroll, etc), management wants to see impacts to the business, revenue related metrics (trade volume).

• Granular security control is needed to control the depth that end users are allowed to drill in as well as controlling which users are able to perform actions such as Acknowledging an alarm.  While the BSM solution must be able to represent the service from end to end, there rarely is a reason to have an executive drill down and look at the performance metrics of a network card on some obscure server.   Showing that a single node of a cluster is down is important to some users, this is useless data to others.

• The solution fully understands health of the Service. Integrating with the JUST the top management tool may provide ‘all’ of the alerts within the environment, it won’t provide easy drill down into the underlying tool reporting the failure in order to get at additional details or command and control, it won’t tell you to fix Service A over Service B, it won’t tell you that if you do not reboot server123 in the next 10 minutes you will breach a critical Service Level.

• Root cause is more than determining the router being down is the root cause of the server being unaccessible. While this is useful information, this type of root cause does not always map to why a Service is down.   Don’t get me wrong, it is very important and needed information.   The team responsible for resolving outages need quick answers, they need to be able to to quickly see within the sea or red alerts that this particular server being down is the reason that payroll is down.  Between this server and the 15 other outages, they might want to work on this server first… it’s payday.

• The end users of the implementation are consulted with to understand their requirements. Just because you can set up the view one way doesn’t mean that it provides value to the end users.  They need easy access to the data, they need quick access to other internal tools (knowledge base, help desk, etc).  The solution needs to make their lives easier.

• Start with an important Business Service, or a single important application or one that keeps the CTO up at night worrying about it.   If you start with mapping the one service end to end (as best as possible without getting stuck in a rabbit hole), get an internal win, ROI, etc., it helps map out the next Services, rally other teams to get involved, etc.   Trying to do every service end to end completely automated, etc is trying to boil the ocean, it’s not going to work.   Sometimes a partial view is better than no view.  Stating small and working out from there is key.

One other reason that I purposely omitted is management buy-in.   I feel that it is important, but to get started, it may not require complete management buy-in.   What I mean is, sometimes management buy in is only needed within your own group or department, other management buy-in is sometimes needed in order to expand the footprint or get additional details.   I’ve seen that come along as the BSM team gets wins under their belt.

Okay, don’t be shy, what are some reasons that Business Service Management worked for your organization (or you think you need for your planned BSM implementation to be successful)?   Dashboards, HA/DR, CMDB, Discovery, ITIL projects…

– Tobin

I had a meeting with a customer the other day which was centered on virtualization and private cloud and a funny thing happened: it morphed into a Business Service Management (BSM) discussion.  The discussion got me trying to put my arms around “BSM in a virtual environment” and what it means.

In a traditional BSM scenario, you are managing your IT from a business perspective with the ability to drill into the business models until you can isolate and correlate the technology supporting the business service.  But in a virtual environment, you’ve abstracted another layer, right?  For example, my order processing is running slow.  Which is of more value to me?  The first layer down tells me that the virtual database server is experiencing a performance hit or knowing that the underlying network-attached storage is living in a network segment that is currently overloaded due to end of the month processing?

To be honest, I’m not sure there is a clear answer.  I think if I am the “break/fix” guy, I need to know at the lowest level so I can attack the problem in the infrastructure.  And of course, the business unit wants to know at the highest level that order processing is experiencing a slowdown.

What my conclusion was is that at the highest level, BSM hasn’t changed.  You are still mapping out your business processes to show the health of the process flow and the performance of the service.  But, to accurately or perhaps more appropo, usefully, map the technology to the business process, you need to have the virtual abstraction layer, which has the actual infrastructure mapped to it.  This could lead to some interesting analysis, such as response times across the virtual environment compared to response times in the physical environment and how they both correlate to performance of the business service.  Just some food for thought.

I’d be interested to hear about some real-life examples.  How are you monitoring the virtual?