2. Building Organizational Success 2
Agenda
• The biggest trends shaping IT
• Asset Management in a Hybrid Cloud
• Consumerisation and its impact on ITAM
• The Internet of Things
• The Asset Manager’s advantage
3. Building Organizational Success 3
Key IT Trends Shaping ITAM
1980s to mid 2000s...
• The PC revolution
• Physical devices
• Install-based
licensing
Mid 2000s to
present...
• Virtualization
• Capacity-based
licensing
• Outsourcing
2014...
• Cloud infrastructure
and applications
• Mass mobility &
BYOD
• Usage-based
licensing
• Multi-sourced IT
?
2015-2020
• Hybrid Cloud
• The Internet of Things
• Consumerisation
• IT as a dynamic Service Broker
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IT gets bigger, more dynamic and
complex
MOBILE COSTS
CYCLE
TIME DATA CLOUD
2010 20152015
2005
2005
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Cost pressure is driving IT
industrialisation
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
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Connected tech is spreading
throughout the business
• Environmental monitoring and control
• Workforce automation
• Factory control systems
• RFID tags
• Vehicle trackers
• Customer experience augmentation
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Hybrid Cloud – basis of the IT
organisation, 2015-2020
• Private clouds
– Built by an organization exclusively to serve their own
needs
– Housed within their data centers or hosted in a location
that is effectively "on-site" to that company
• Public clouds
– Built by a 3rd party for consumption, for a fee
– These are shared resources between multiple entities.
• Hybrid clouds
– Mixed model, by which a company augments their own
private cloud with external public resources.
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Enterprise Cloud is already here
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:
10. Building Organizational Success 10
The Hybrid Cloud environment
Private Cloud
Location A
Private Cloud
Location B
Policies Capacity
Licenses
Infrastructure
Costs
Service
Governor
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There are still physical assets!
Private Cloud
Virtual server
instances
Physical hosting
layer
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The Asset Lifecycle applies
to Cloud
Select &
Procure
Provision
& Record
Deploy
Discover
&
Reconcile
Audit &
Monitor
Maintain
& Support
Retire
Re-Harvest
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New Touchpoints for ITAM
2010: “Classic IT” 2015: The Hybrid Cloud
SELECT & PROCURE •Service Catalog
•Asset Inventory Store
•Cloud Service Catalog
PROVISION & RECORD •Goods Receiving Team •CLM Service Governor
DEPLOY •Hardware technician
•Virtual Hypervisor
•CLM Service Governor
DISCOVER &
RECONCILE
•Discovery Agent •CLM System Data
Instances
•Dependency Mapping
•Vendor Data
AUDIT & MONITOR •Physical Audit
•Install/capacity based
license management
•CLM System Status Data
•Vendor Reports
•Usage based licensing or
mapped vendor terms
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New Touchpoints for ITAM
LIFECYCLE PHASE “Classic ITAM” 2015: The Hybrid Cloud
MAINTAIN & SUPPORT •Maintenance Windows
•Support Contracts at
device level
•ITSM integration to
Asset repository
•Vendor price changes
and SLA
•Support Contracts on
abstracted underlying
devices
END OF LIFE •Physical decommission •Automated
decommission
End of contract
RE-HARVEST •Device or component
cleanup/reprovision
•Capacity reallocation
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Understand the Cloud Service
Blueprint
Service
Options
Infrastructure
Models
Application
Model
Offering
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Blueprint enables us to know
and govern Cloud Assets
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
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MADC still applies!
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
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Cloud applications are still IT
assets
• Unused licenses are wasted spend
• Need to be reclaimed when employees leave
• Options at different price levels
• Fewer license compliance risks but plenty of
opportunity for unexpected spend growth
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ITAM can help to solve cloud
problems
Response What can the IT Asset Manager
do to mitigate?
“We underestimated the effort
to integrate Cloud into existing
management systems”
Ensure ITAM is embedded into
Cloud processes, to capture key
facts, costs, risks.
“We should have done a more
thorough cost assessment or
built better chargeback
systems”
Coordinate proper cost
assessment: A large proportion
of Asset costs are spent with
vendors on assets and licenses
“We didn’t adequately plan for
operational requirements such
as Capacity and Performance
management”
Sell Cloud’s benefits to the
organisation in terms of
optimised Asset utilisation, and
embed measurement and
feedback into key processes.
60%
43%
41%
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Data storage – an example of
cloud’s transformative effect
Personal Cloud Filestore
Productivity Cloud
Enterprise Cloud Storage
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Consumerisation at work
37%of employees work from
multiple locations
82%of employees use
multiple mobile apps in the workplace
53% use multiple devices
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Challenges from BYOD growth
• “The unexpected consequence of BYOD is a
doubling or even tripling of the mobile workforce”
(Gartner Top 10 Strategic Technology Trends for 2014)
• Management and control vs user autonomy
• Complex ownership scenarios for devices
accessing business resources
• Software license terms may be difficult to apply
to BYOD scenarios
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Governing BYOD
• Source data from MDM and Enterprise
Application Store
• Work proactively with software vendors and
validate suitability of existing license models
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Benefits of crowd-sourced asset
data
• Business users with mobile devices hugely
outnumber Asset field teams
• Customers increasingly trust crowd-sourcing
• Build picture of non-discoverable assets
without need for physical audit
• Learn quickly about faults and issues
• Deliver better data at lower cost
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Governing crowd-sourced data
• Manage by exception
• Build into support processes
• Enable easy reporting of disparities
• Prevent duplicates at source
• Affirm trust in the data by making updates and
interactions visible to all
• Elevate data to fully-trusted when IT support
interact with devices
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Growth of the “Internet of Things”
• Phrase coined by Kevin Ashton at MIT
• Gartner: “the network of physical objects that
contain embedded technology to communicate
and sense or interact…”
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Growth of the “Internet of Things”
`
2009 2020
0.9 billion
26 billion
Number of internet-connected devices, excluding PCs, tablets, smartphones
(“Forecast: The Internet of Things, Worldwide” – Gartner Report, 2013)
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Growth of the “Internet of
Things”
26 billion
7.3 billion
Gartner projection for the number of internet-connected devices in 2020
(“Forecast: The Internet of Things, Worldwide” – Gartner Report, 2013)
PCs/Servers, Tablets, Smartphones
Everything else
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Where will we find corporate IoT
instances?
Embedded in devices
we already manage
Embedded in non-IT
business assets
New, discrete
connected items
http://www.flickr.com/photos/sergesegal/
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Workplace impact of the
“Internet of Things”
• Production line monitoring
• Connected vehicles
• Smart-grid technologies
• Environmental sensors
• RFID tags
95% of C-Suite executives expect their
enterprises to be using the IoT within 3 years
(“The Internet of Things Business Index – A Quiet Revolution Takes Place” – The
Economist Intelligence Unit, 2014)
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The Changing asset
inventory store
2014
-PCs and Laptops
-Smartphones
-Tablets
-Printers
-Consumables
2015-2020 adds...
-Wearable devices
-Smart meters
-Standalone sensors
-RFID equipment
https://www.flickr.com/photos/mwichary/3301333726
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Asset impacts of the Internet of
Things
• As IoT device count increases, license models like
this may become increasingly unsuitable.
• If devices grow at Gartner’s 2009 to 2020
projection rate, licence costs would double.
• Oracle “Named User Plus”
licensing requires licenses
for each identifiable user,
plus each device which
connects to the database.
• In Oracle’s example, there
are 15 devices.
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IoT Risks
• Breadth
– More devices to understand, provision
• Unforseen liabilities
– Support
– Licensing
• Process adaption
– Provisioning
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Managing the IoT
• Don’t try to do everything
• Provide ITAM consultancy to technology
adopters
• Prioritise critical discrete components and
items with IT cost impact
• Adopt IoT devices into Asset inventory
management processes
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Summary
• The pace of change in IT will remain rapid
• IT is expected to drive business success
• Business units outside IT are directly accessing
technology and solutions
• ITAM becomes more complex, and more multi-
layered
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The Asset Manager is ideally
placed…
• …to understand how the infrastructure supports the
business of IT.
• …to liaise and coordinate between different IT
functions, to find opportunities that will otherwise be
missed.
• …to learn about the core technologies in use in the
organization, and way they are evolving.
• …to help the organization understand its licensing
obligations, and how major decisions will affect them.
• …to be a key trusted source of information to the CIO
We’ve seen less focus on cost cutting in recent years
Real physical machines with real maintenance schedules, support contracts, etc
A cloud service offering can be modelled as three fundamental parts: Application Model (e.g. Web Server, Application Server, Database Server) Infrastructure Model (the way the application model is scaled and deployed, for different purposes) Service Options (additional, more granular options such as additional capacity or support)
A Forrester Consulting Thought Leadership Paper Commissioned By BMC SoftwareYour Cloud Future Is Here How IT Can Embrace The Business Demand For Cloud And Exceed Expectations June 2013 Answers to the question: “Thinking about your private, hybrid or public cloud services deployed so far, what lessons do you wish you had learned earlier in your planning or deployment efforts?”
The average smartphone already contains seven sensors.TSMC is using sensor devices to build “lights-out factories” where sensors elimate the need for any employees at all
Inventory processes will need to adapt to cover a broader range of devices, with a broader range of applications. Entirely new “end users” will emerge in the line of business
2009 – 0.9 billion devices. 2020 – 26 billion devicesLicense count in this eaxmple is 400 + 15 = 415Would increase number of devices from 15 to 433, hence license count to almost 850.