his article explores the question whether the relationship will be “a marriage made in heaven?” It also explores the issue of “who is the bride and who is the groom?” As you read further, you can also decide whether the relationship between Cloud Computing and ITSM is “for better or for worse?”

1. 1Cloud Computing and ITSM, ”For Better or for Worse?”
CLOUD COMPUTING
AND ITSM,
By Brian Bourne
Copyright © 2012 ITpreneurs. All Rights Reserved.
“For Better or for Worse?”

2. 2Cloud Computing and ITSM, ”For Better or for Worse?”
The Bride and Groom
I have been fascinated with the future compatibility and potential marriage between
Cloud Computing and IT Service Management (ITSM) for some time now. This article
explores the question whether the relationship will be “a marriage made in heaven?” It also
explores the issue of “who is the bride and who is the groom?” As you read further, you can
also decide whether the relationship between Cloud Computing and ITSM is “for better or
for worse?”
However, before we can make any judgements on this, we need to understand the
personalities of Cloud Computing and ITSM first.
Understanding the Cloud Computing Personality
Note: For those of you already familiar with cloud computing concepts (and
its background), you may want to proceed to the section, “A Marriage Made
in Heaven.”
Cloudcomputinghasevolvedthroughanumberofphasesovertheyearswithitsroots
in grid and utility computing, application service provision (ASP), Software as a Service
(SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). Believe it or
not, cloud computing goes back to the sixties. The idea of an “intergalactic computer
network” was introduced by J.C.R. Licklider, who was responsible for enabling the
development of ARPANET (Advanced Research Projects Agency Network) in 1969.
This sounds like something out of Star Trek!
Since the sixties, cloud computing has developed along a number of lines, with
Web 2.0 being the most recent evolution and web 3.0 already appearing on the
horizon. The Internet only started to offer significant bandwidth in the nineties; cloud
computing for the masses has been something of a late developer. Sorry, guys! Late
developer? Could this be the groom? One of the first milestones for cloud computing
was the arrival of Salesforce.com in 1999, which pioneered the concept of delivering
enterprise applications via a simple website. The next development was Amazon Web
Services in 2002, which provided a suite of cloud-based services including storage,
computation and even human intelligence through the Amazon Mechanical Turk.

3. 3Cloud Computing and ITSM, ”For Better or for Worse?”
Then in 2006, Amazon launched its Elastic Compute Cloud (EC2) as a commercial web
service that allows small companies and individuals to rent computers on which to
run their own computer applications. Another big milestone came in 2009, as Web
2.0 hit its stride, and Google and others started to offer browser-based enterprise
applications through services such as Google Apps. In 2009, we also saw the advent
of Microsoft into the cloud computing game with its product Windows Azure.
Azure, as an operating environment, was designed to manage extremely large pools
of computational resources. Is cloud computing the bride? Grooms know that they
need a little help in getting organized. The simple explanation is that Microsoft wants
customers to run their Windows-based applications over the Internet using Microsoft’s
data centers, with Azure being the system that organizes resources and handles spikes
in demand. And now?!
Many IT professionals recognize the benefits that computing offers in terms of
increased storage, flexibility and cost reduction. Cloud computing is the delivery of
computing as a service, rather than a product; whereby shared resources, software,
and information are provided to computers and other devices as a utility (like the
electricity grid) over a network (typically the Internet). Cloud computing allows the
CIO to focus more on the productivity of the applications that the company will need
to be successful, as opposed to worrying about the infrastructure to support those
applications.(http://www.ft.com/cms/s/0/3796331e-f900-11e0-a5f7-00144feab49a.html)
Cloud computing is a natural evolution of the widespread adoption of virtualization,
service-oriented architecture, autonomic, and utility computing. Details are abstracted
from end-users, who no longer have need for expertise in, or control over, the
technology infrastructure “in the cloud” that supports them.

4. 4Cloud Computing and ITSM, ”For Better or for Worse?”
Understanding the Cloud Personality
(Cloud Computing Layers)
Client Layer
A cloud client consists of computer hardware and/or computer software that
relies on cloud computing for application delivery, and which is in essence,
useless without it. Examples include (some) computers, phones and other devices,
operating systems, and browsers, i.e., phones, tablets, desktops, laptops.
Application/SaaS
(Software as a Service)
Cloud Application Services or SaaS (Software as a Service), deliver software as a
service over the Internet, eliminating the need to install and run the application on
the customer’s own computers, while simplifying maintenance and support.
Platform/PaaS
(Platform as a Service)
CloudPlatformServices,alsoknownasPaaS(PlatformasaService),deliveracomputing
platform and/or solution stack as a service, often consuming cloud infrastructure and
sustaining cloud applications. It facilitates deployment of applications without the
cost and complexity of buying and managing the underlying hardware and software
layer.

5. 5Cloud Computing and ITSM, ”For Better or for Worse?”
Infrastructure/IaaS
(Infrastructure as a Service)
Cloud Infrastructure Services, also known as IaaS (Infrastructure as a Service), deliver
computer infrastructure (typically a platform virtualization environment) as a service,
along with raw block storage and networking. Rather than purchasing servers,
software, data-center space or network equipment, clients will buy these resources
as a fully outsourced service instead. Suppliers typically bill such services on a utility
computing basis i.e., the amount of resources consumed. Therefore, the cost will
typically reflect the level of activity.
Server
The server layer consists of computer hardware and/or computer software products
that are specifically designed for the delivery of cloud services, including multi-core
processors, cloud-specific operating systems and combined offerings.

6. 6Cloud Computing and ITSM, ”For Better or for Worse?”
Understanding Cloud Computing
Deployment
Public Cloud
Public Cloud describes cloud computing in the traditional mainstream sense, whereby
resources are dynamically provisioned to the general public on a fine-grained, self-
service basis over the Internet, via web applications/web services from an off-site
third-party provider, who bills on a fine-grained utility computing basis.
Community Cloud
Community Cloud shares infrastructure between several organizations from a specific
community with common concerns (security, compliance, jurisdiction, etc.), whether
managed internally or by a third-party; and hosted internally or externally. The costs
are spread over fewer users than a Public Cloud, but more than a private cloud, so only
some of the benefits of cloud computing are realized.
Hybrid Cloud
Hybrid Cloud is a composition of two or more clouds (private, community or public).
The two remain unique entities, but are bound together and offer the benefits of
multiple deployment models.
Private Cloud
Private Cloud is infrastructure operated solely for a single organization, whether
managed internally or by a third-party and hosted internally or externally.
Users still have to buy, build and manage them and, therefore, do not benefit from
lower up-front capital costs and less hands-on management. Essentially, lacking the
economic model that makes cloud computing such an intriguing concept.

7. 7Cloud Computing and ITSM, ”For Better or for Worse?”
Understanding the IT Service
Management (ITSM) Personality
IT Service Management (ITSM) is concerned with delivering and supporting IT
services that are appropriate to the business requirements of the organization. ITSM
improves efficiency and effectiveness and reduces the risks of managing IT services.
Is ITSM the bride? Most of the time, my wife tells me how to be more efficient!
ITSM is a discipline for managing information technology (IT) systems, philosophically
centered on the customer’s perspective of IT’s contribution to the business. ITSM
stands in deliberate contrast to technology-centered approaches such as the cloud.
The following represents a characteristic statement from the ITSM literature: Source
OGC ITIL 2011 Service Strategy:
“Providers of IT services can no longer afford to focus on technology (The Cloud?) and
their internal organization. They must now consider the quality of the services they
provide and focus on the relationship with customers.”
Is this the groom? In most marriages, the groom is responsible for providing the
romance in the relationship.
ITSM is process-focused, and in this sense has ties and common interests
with process improvement movement, e.g., TQM, Six Sigma, Business Process
Management, CMMI, ITIL, COBIT frameworks and methodologies. The discipline
is not concerned with the details of how to use a particular vendor’s product,
or necessarily with the technical details of the systems under management.
Instead, it focuses upon providing a framework to structure IT-related activities
and the interactions of IT technical personnel with business customers and users.
ITSM is often equated with the Information Technology Infrastructure Library, (ITIL) an
official publication of the Office of Government Commerce in the United Kingdom.
However, while a version of ITIL is a component of ITSM, ITSM also covers a number of
related, yet distinct disciplines, and the two are not synonymous.

8. 8Cloud Computing and ITSM, ”For Better or for Worse?”
Cloud Computing and ITSM
“A Marriage Made In Heaven”
Now that we have met the Cloud Computing and ITSM personalities, we need to see
if they are compatible with each other. Let’s take a look at their relationship and the
impact they have upon each other. Both Cloud Computing and ITSM reduce costs
and improve the quality of the following:
People / Partners
By increasing efficiency in resource utilization through process and processes,
enabling technology in combination with increased efficiency in resource utilization,
organizations can utilize cloud computing resources, instead of their own. This will
allow them to take advantage of repositioning internal resources required for other
projects, or simply look at this as a cost-saving initiative. Both cloud concepts and
ITSM are greatly concerned with efficiency and effectiveness of their resources. ITIL’s
Service Strategy Lifecycle and the associated processes: Service Portfolio, Demand
Management and Financial Management, consider utilization from the beginning:
–– Possible reduction of the number of operational resources.
–– Focus staff on priorities and role definitions.
–– Allows for strategic sourcing decisions.
Process
• Cloud computing and ITSM both emphasize synchronization between, and
consolidation of people, process and technology. ITSM will continue to look to
cloud solutions for taking on the cost of ownership for these areas and expect IT
Service value in return.
• Shorten incident resolution time. Cloud computing will take on this initiative the
same way ITSM Internal shops would, using their own Service Desk and Incident
Management process.
• Provide financial IT services information. Over time, the truth of cloud
computing and its costs, efficiencies and benefits will be held accountable; and

9. 9Cloud Computing and ITSM, ”For Better or for Worse?”
ITSM and financial management will be able to discern if cloud computing is
financially more economical for organizations. Or, ask themselves if organizations
should take on the financial obligation internally and continue to run their own
IT Shops.
• Define business needs in terms of quality, efficiency and effectiveness. This is at
the heart of both cloud computing and ITSM. They both must deliver on these
initiatives or business will not see or benefit from any value.
• Increase speed of service, another shared initiative for cloud computing and
ITSM.
Technology
ITSM, through strategic decisions utilizing ITIL Service Strategy Lifecycle, will look
to the Cloud as a viable option for the following:
• Consolidation of technology
• Better utilization of assets
• Standardization of working environments
• Introducing process-enabling technology
• Prioritizing effort and cost to service levels
• Standardization of working environments
• Monitoring and reporting service quality metrics
• Automating problem diagnosis and resolution
ITSM/ITIL Service Strategy Lifecycle, demand and financial management will consider
cloudcomputingforbetterefficienciesandeffectiveness,thatwillmeetorganizational
goals and objectives:
• A more agile and responsive IT investment decision making process, integrated
with the business.
• Paying for only what you use; a new generation of “service economics.”
• Even more rapid, utility-styled request and deployment of information services.
• Greater scalability, which links real-time demand and utilization with planned
capacity. In a Public Cloud delivery model, capital expenditure is converted to
operational expenditure.

10. 10Cloud Computing and ITSM, ”For Better or for Worse?”
This is purported to lower barriers to entry, as infrastructure is typically provided
by a third-party and does not need to be purchased for one-time or infrequent
intensive computing tasks. Pricing on a utility computing basis is fine-grained,
with usage-based options, and fewer IT skills are required for implementation
in-house.
• Scalability and Elasticity via dynamic, on demand provisioning.
Is a Prenuptial Required?
Some IT professionals do not think their IT Service Management processes are mature
enough to effectively manage cloud-based services, and believe their organizations
aren’t ready. While some are unsure. There are some concerns that the relationship
between Cloud Computing and ITSM may not be compatible.
A global survey was conducted by ITSM provider Axios Systems. The survey revealed
that only eight percent of organizations currently use their ITSM tool to manage
cloud-based services, while 19% think their current tool could support management
of cloud services (they just haven’t started to do so). Another 31% of IT professionals
indicate that their current ITSM tool would not support the management of cloud-
based services. The remaining 42% of respondents are unsure.
There are vital ITSM steps to consider when adopting the cloud computing. For one, a
solid business case is required. IT organizations with business requirements will need
to do their home work to determine the costs and the benefits of adopting cloud
computing as long-term strategies.
If the organization does not have a service catalog, they need to get on with it. The
catalogwillhelpmanagedemandandperformancebyclearlylistingwhatthebusiness
will get, for how much, based on their requirements. Putting the catalog together is a
big undertaking. It is an undertaking that is absolutely necessary and one that will pay
off. Standard Operating Procedures must be put in place. IT needs to clearly define
who has access to systems, and the policies and procedures for provisioning and de-
provisioning systems, resources and access. ITSM/ITIL processes are needed to drive
efficiency and allow the automation to achieve cost savings.
Without these ITSM initiatives in place, the relationship and its benefits could be in
jeopardy. Maybe a Prenuptial is required?

11. 11Cloud Computing and ITSM, ”For Better or for Worse?”
Does Cloud Computing Have the Upper Hand in the
Relationship?
Some may feel that cloud computing is shaking the ITSM books off their shelves. It
has a tectonic impact, as a disruptive technology, upon ITSM projects. If this continues
there may not even be a wedding between Cloud Computing and ITSM.
The cloud computing discussion is polarizing ITSM theorists and differentiating them
from practitioners. Proponents of familiar must-have ITSM artifacts, such as service
catalogs and configuration management databases (CMDB), are either strangely
quiet, or forming committees designed to ensure inter-operability. Disappointingly,
few if any ITSM training classes have adapted their curriculum to embrace, include and
explore cloud concepts. Traditional qualification schemes, such as ITIL, and perhaps
even the refreshed ISO 20000 standard, are outdated. (ITIL) professionals who want to
know more about cloud computing are highly encouraged to become certified with
the Cloud Credential Council.
An older lady once made a remark to me about the similarity between a husband
and floor tile, “If you lay ‘em right the first time, you can walk on them your entire life.”
Let’s certainly hope the marriage between Cloud Computing and ITSM is a balanced
one! As in any good marriage, one partner supports the other, while each brings
excitement to the relationship. Together, Cloud Computing and ITSM initiatives must
have a good marriage in order to meet ever-changing business requirements, and,
hopefully, all will live “happily ever after”.

12. 12Cloud Computing and ITSM, ”For Better or for Worse?”
Conclusion
The core objective of ITSM and Cloud Computing is to cut IT costs, and be able
to meet user demand for IT Services at any given moment. In order to meet these
objectives, it will be important that a good relationship exists between ITSM and
Cloud. As in any marriage, the relationship will require facing moments of truth,
discipline, commitment, and dedication in order to sustain the objectives. Whenever
there are concerns or differences between ITSM and Cloud Computing, I would hope
that they would be able to work them out. Otherwise, the biggest stakeholder in this
marriage, i.e., the business, may suffer.
It is up to you to decide if the marriage between ITSM and Cloud Computing is “for
better or for worse?” You be the judge!

13. 13Cloud Computing and ITSM, ”For Better or for Worse?”
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