Bridging the Gap - the Value of Integrated Asset and Service Management

Jon Hall, Product Management Lead – Enterprise ITAM
Bridging the Gap: The Value of Integrated
Asset and Service Management

© Copyright 5/15/2014 BMC Software, Inc2 © Copyright 5/15/2014 BMC Software, Inc2
Just what is an IT Asset?

Separate Evolution of ITAM and ITSM
How did we get here?
IT Asset Management IT Service Management
Developed regionally in the
1980s and 1990s
Frequently driven by regulatory
or tax obligations (e.g. In France)
Finance department sponsorship
Built around procurement and/or
request fulfilment teams
ITIL – UK Civil Service, 1990s
ITSM platforms proliferated in
enterprise, e.g. Remedy
Maturity path built around
CMDB...
...with little focus on asset
financials and lifecycle

ITIL version 2 – “Asset”
“Literally, a valuable person or thing
that is ‘owned’”
Assets will often appear on a balance sheet
as items to be set against an organization’s
liabilities.

ITIL version 3 – “Service Asset”
“Any Capability or Resource of a Service Provider”
The ability of an
Organization, person,
Process, Application,
Configuration Item or IT
Service to carry out an
Activity. Capabilities are
intangible Assets of an
Organization
A generic term that includes
IT Infrastructure, people,
money or anything else that
might help to deliver an IT
Service. Resources are
considered to be Assets of
an Organization

Evolution of IT Assets
1980s to mid 2000s...
• The PC revolution
• Physical devices
• Install-based
licensing
Mid 2000s to
present...
• Virtualization
• Capacity licensing
• Outsourcing
2014...
• Cloud
infrastructure and
applications
• Mass mobility
• BYOD
• Usage-based
licensing
• Multi-sourced IT
?
2015-2020
• Hybrid Cloud
• The Internet of Things
• Consumerization
• Digital Service Brokering

Where are we today?

ITAM’s Position in the Business
Within IT Service
Management
Other
Within
Finance
Direct report

What challenges are we facing?

Key CIO priorities
Better decision support
Service brokering
Transformation of IT spending
Customer-centric IT

Rising cost of “keeping the lights on”
$0
$50
$100
$150
$200
$250
'00 '02 '04 '06 '08 '10 '12
SERVER
SPENDING
POWER +
COOLING
SERVER
MANAGEMENT
(PHYSICAL)
SERVER
MANAGEMENT
(VIRTUAL)

The Innovation Squeeze
Existing
Maintenance
Budget
Innovation
Budget
Existing
Maintenance
Budget
Innovation
Budget
New
Maintenance
Existing
Maintenance
Budget
Innovation
Budget
New
Maintenance
Existing
Maintenance
Budget
Innovation
Budget
New
Maintenance
Year n Year n+1 Year n+2 Year n+3

Virtualization keeps moving
28% 6% 66%
Private
Cloud
Public
Cloud
Physical Servers &
Non-Cloud VMs
34% of enterprise servers already run in the cloud
Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations. Forrester, June 2013
Percentage of servers operated in global enterprises:

Cloud services are accelerating sprawl

Cloud services are accelerating sprawl
• Average of 545 cloud services per company in large
enterprises.
• Does your business have more cloud services than it
needs?
• 70% feel that a fifth or more could be consolidated
48%34%
2010 2013
YES

License complexity and aggressive audit

Why does this matter to the Service Desk?

New connected technologies, increasingly critical
Environmental monitoring and control
Workforce automation
Factory control systems
RFID tags
Vehicle trackers
Customer experience augmentation

New asset types drive new challenges
External Cloud services
Bring Your Own Device (BYOD)
Highly mobile virtual instances
New technologies become critical to business
Dramatic changes in related processes (Change,
Problem, etc)
New skills, new actors, new processes.

Why alignment of ITAM and ITSM is so important

In brief...
ITSM can’t fully understand the services it is
providing without understanding the assets on
which the service depends.
ITAM can’t optimise usage, support and spend
without understanding what services the assets
underpin.

What don’t we know about a service, without ITAM?
Purchase or instantiation costs
Incidental support costs
Associated contracts
Software license implications
Geographical resilience
Who supports what?
Who owns what?
and much more...

What does ITSM-aligned ITAM look like?

Example of ITAM embedded in frontline ITSM
Line of Business,
partners, customers
CUSTOMERVIEWCustomer
IT, HR, Facilities
Catalog
Solution
SUPPLIERVIEW
Service Org Internal Provider
+ + +ITSM Platform
New Assets
Existing Assets
External ITSM Platform
External Provider
+ + ++
Supplier provided Assets
Private supplier
assets

Integrated ITAM and ITSM as a supplier evaluation tool
Detailed
oversight
Strategic /
Top-Down
IT Asset
Management
Operational
• Supplier assets
• Software licenses
• Asset contracts
• Warranties, support and
maintenance agreements
• Service costs
Supplier
Management
• Enterprise licenses
• Supply and lease contracts
• Master maintenance and service
agreements
• Customer and vendor obligations
Strategic
• Failure statistics
• End user-satisfaction
• SLA performance
IT Service
Management

And the next generation service models?
Private
Cloud
Policies Capacity
Licenses
Asset Base
Costs
Service
Governor
Private
Cloud

There are still physical assets...
Private Cloud
Virtual server
instances
Physical hosting
layer

The Asset Lifecycle still applies to Cloud
Select &
Procure
Provision &
Record
Deploy
Discover
& Reconcile
Audit &
Monitor
Maintain &
Support
Retire
Re-Harvest
Cloud Service Catalog
CLM Service Governor
CLM Data
Dependency Mapping
Vendor Data
CLM Data
Vendor Reports
Usage based licensing
CLM Data
Dependency Mapping
Vendor Data
CLM Service Governor
Capacity Optimization

Core ITAM principles still apply
MOVE
ADD
DELETE
CHANGE
Transfer of Amazon instance
to new Availability Zone
Instantiate new instance
in Private Cloud
Decommission cloud
instance and cancel
software subscription
Purchase more file
storage allocation for
cloud instance
https://www.flickr.com/photos/johnseb/3425464
Relocation of server to
new Datacenter rack
Provision and deploy
new physical server
Decommission and retire
physical server and
recover software licenses
Add bigger hard drive to
physical server
https://www.flickr.com/photos/aztlek/2357990839

Aligning ITAM with the IT Service Blueprint
Service
Options
Infrastructure
Models
Application
Model
Offering

Aligning ITAM with the IT Service Blueprint
• Asset information is a fundamental
building block of the service
Level Assets Cost type Cost
Application
Server
Bronze Single Amazon
Cloud VM
Opex $25 per
month
Silver 4 private cloud
VMs, 8 vCPUs,
16GB RAM
Opex $200 per
month
Gold 4 dedicated
servers, 8 CPUs,
24GB RAM
Capex $8000 per
unit

Aligning Asset oversight to services
Type Location/
Provider
Licensed
Software
Support End of Life
Server 1 Application
Server
London
Datacenter
Private
Cloud
Attachmate Covered
under ACME
support
contract
Perpetual
Server 2 Failover
Application
Server
Amazon
AWS
Attachmate
(failover
license)
Amazon
Silver
Support
2 years –
auto
deprovision
Server 3 Database
Server
Internal
Oracle Data
Farm
Oracle
Enterprise
Edition
(processor
licensed
Oracle
Premier
Support
3 years –
raise RFC
with 3
months
remaining
Deployed Assets for Sales Office FileShare instance, Production level, Failover Option

Case Study
The organisation: a large medical research charity in the UK
Directly involved in frontline scientific research
Medical research has significant and specialist technology
requirements
IT needs to provide excellent capabilities in a cost-pressured
environment

Case Study
A key requirement is Big Data
This requires specialist equipment
External cloud is not an option, primarily due to the volume
of data transfer
“The problem we’d have for active data is the access speed:
A single genome is 100Gb. Imagine downloading that from
Google!”

Case Study
They need specialist data storage and retrieval equipment.
Data growth is rapid.
A frequent refresh cycle is expected.
“We buy kit that’ll fit our needs, front-loaded with 3 years
support costs.
After that time, you’re invariably needing bigger, better,
faster”

Case Study
The organisation spotted an opportunity to
repurpose, rather than dispose of, the specialist
hardware.
“We used the old system for second tier data: desktop
backups, old data”

Case Study
This required good understanding of upcoming requirements
of two very different user groups
A much cheaper support supplier was found for the older
equipment: Backup does not need “gold-standard” support.
Significant savings were made in not purchasing new
equipment for PC backups.
No new technology for the Service Desk and Support Teams
to manage.

The result

Conclusion

Moving to Service-aligned ITAM
What is owned?
Where is it?
Who is it assigned to?
How much did we
spend on it?
IT
Focused
Business
Focused
Equipment
Focused
ITAM Maturity
What does it support?
How can we control
changes?
How can we discover
more?
What is its role in our
key services?
How can we optimize
its use?

Summary
IT is increasingly expected to demonstrate cost
effectiveness and value to the business
There is wide adoption of service orientation and
multi-sourcing
The range of assets in the organisation is rapidly
broadening
ITSM is better empowered to support its customers
if ITAM is aligned.
Without effective alignment of ITSM and ITAM, it
is not possible to give the CIO a complete picture.

Questions?
@jonhall_

Bridging the Gap - the Value of Integrated Asset and Service Management

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Bridging the Gap - the Value of Integrated Asset and Service Management