1. ITIL Castles In The Cloud
There is a castle on a cloud, I like to
go there in my sleep, Aren’t any
floors for me to sweep, Not in my
castle on a cloud.
[Young Cosette - Les Miserables]
Troy DuMoulin
AVP Strategic Solutions
Pink Elephant
1

2. THE WINDS OF CHANGE
New Challenges for IT
New Requirements
Financial Transparency
Value vs. Cost
New Choices
SAAS
The rise of the MSP
Global Sourcing
Open Source
Low Cost Hosting
Disruptive Technology
Social Media
Green Computing
Cloud Computing
Mobility
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 2

3. IT Under Pressure To Change
Need to Cut G&A Overhead
Board/
Executives
Massive
Technology
Changes
User
Community
Internal Customer Dissatisfaction, Consumerization
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 3

4. Consumerization and Cloud Computing
Hit the Enterprise
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved.

5. Indicators lead to cloud as future
“2010 CIO Agenda” - Gartner
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved.

6. IT Strategy & Cloud Services
Business Product
Explore
Develop
Produce
Business Service
Ship
Refine
Blend
Store
Pipe Business Process
Business Process
Distribute
Business Process
Market
Service Catalog
Cloud Services
Integration
Local
Virtualization
Application
Optimization
Hardware
Consolidation
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 6

7. IT Service Concepts
“People do not want quarter-inch drills. They want
quarter-inch holes.”
Professor Emeritus Theodore Levitt, Harvard Business School
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved.

8. What Is A Service?
“A service is a means of delivering value to customers
by facilitating outcomes customers want to achieve
without the ownership of specific costs and risks.”
Fulfills one or more needs of the
business
Supports the customer’s business
objectives
Perceived by the customer as a
coherent whole
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 8

9. Systems vs Services
“An IT System is a number of related components
that work together to facilitate the delivery of a
service.”
IT System IT Service
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10. Sourcing Services
• Janitorial Services
Business • Linen Services
Sourcing • Plant Maintenance
• Refining Services
• Fleet Management
Task & Business • Finance &
Process Accounting
Sourcing • CRM Services
• Call Center
• Purchasing
• Payroll Services
eSourcing
IT Service • Data Center Services
Sourcing • Software As A Service
• Telephony
• Messaging
• Desktop Automation
• End User Services
• Hosting / Storage
• Laptops
IT Product • Shrink wrapped
Sourcing Software
• Network Equipment
• Servers
• Memory
Based On Source: eSCM-CL Part 1
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11. Service Value Network
Service Ecosystem
Business Shared IT
Units Services
3 Service Supplier
Business Service
Service W Types
Unit A Dedicated Unit 1
Service
Business Service
Unit B Service X Unit 2
Shared
Service External
Supplier
Business
Unit C External
Service Y Service
Outsourced Business
Service Unit 3
Unit A
Service Z
Business Service Embedded IT
Unit D Unit 4
Service Catalog
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12. Cloud As A Service
A model for enabling convenient, on-demand network access to a shared pool of
“
“
configurable computing resources (e.g., networks, servers, storage, applications, and
services) that can be rapidly provisioned and released with minimal management effort or
service provider interaction. This cloud model promotes availability and is composed of five
essential characteristics, three service models, and four deployment models.
Characteristics Service model
On-demand self-service Cloud SaaS
Broad network access Cloud PaaS
Resource pooling Cloud IaaS
Rapid elasticity
Measured service
The NIST Definition of Cloud Computing, Version 15, 10-7-09
Authors: Peter Mell and Tim Grance
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved.

13. Cloud Concerns - Perceptions
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14. Cloud Computing & Management
Ref: Chris Hoff http://www.rationalsurvivability.com/blog/?p=743
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15. Call A Spade A Spade
Launching A Cloud Computing Strategy Means
Outsourcing Multiple Slivers of Your IT Service Value
Chain
What the IT Community is quickly coming to realize is that to
deploy a cloud strategy within their organization successfully
a number of processes and IT Service Management
elements have to be defined - and better yet - automated
from request through verified provisioning and then keep
running as long as needed.
At the end of the day you get nothing for nothing Sitting flat
on your butt doesn’t buy any bread
[At The End Of The Day - Les Miserables]
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 15

16. Goal Of Supplier Management
The goal: of the Supplier Management process is to
manage suppliers and services they supply, to provide
seamless quality of IT service to the business, ensuring
value for money is obtained.
It is essential that Supplier Management processes
and planning are involved in all stages of the Service
Lifecycle from strategy and design, through transition
and operations, to improvement.
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17. Traditional supply model
Warning: Direct Business Relationship Bi-passing IT Supplier Mgmt. is a risk
Customer Organization
Hardware
IT Function Products
Software
Environment
External
Internal External
External IT
Business Suppliers
IT Services Suppliers
Suppliers
Customers (Service Catalog) Services
WAN Services
Business Process Telephony
IT Supplier Mgmt. Data Center Services
Outsourcing SaaS / Cloud Services
SLAs Contracts
Occasional Contact
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18. Supplier Categorization
High
Tactical Strategic
Suppliers Suppliers
Value and importance
Operational Commodity:
Operational:
Tactical:
Strategic:
Suppliers For relationshipsoperational
suppliers of involving
that provide
significant ‘partnering’
Tactical Tactical
Medium Suppliers Suppliers low-value commercial
products or services
significant and/or involve
relationships that readily
available products and
activity and business
senior managers sharing
services that
interaction could be
confidential strategic
alternatively sourced
information to facilitate
Operational relatively plans.
long-termeasily
Commodity
Low
Suppliers Suppliers
Low Medium High
Risk and impact
© Crown copyright 2007 Reproduced under license from OGC Figure 4.31 Service Design, page 156
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 18

19. Service Lifecycle & Supplier Involvement
SERVICE STRATEGY SERVICE DESIGN
• Service Strategy • Service Catalog Management
• Financial Management • Service Level Management
• Service Portfolio Management • Capacity Management
• Demand Management • Availability Management
• IT Service Continuity Management
• Information Security Management
• Supplier Management
SERVICE OPERATION SERVICE TRANSITION
• Event Management • Transition Planning and Support
• Incident Management • Change Management
• Request Fulfillment • Service Asset & Configuration
• Problem Management Management
• Access Management • Release & Deployment Management
• Service Validation
Functions © Crown copyright 2007 • Evaluation
• Service Desk Reproduced under license from OGC • Knowledge Management
• Technical Management
• IT Operations Management CONTINUAL SERVICE IMPROVEMENT
• Application Management • Seven Step Improvement
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20. Integrated Process Example
Supplier Management
Service Level Management
Request Fulfillment Change Management
DML Release & Deployment Mgmt.
Incident Management
Service Catalog
Financial Mgmt.
Service Desk
Problem Management
Service Asset & Config. Mgmt.
Event Management
IT Service Continuity Mgmt.
Access Management
Information Security Mgmt. Availability & Capacity Mgmt.
Automated Provisioning Requires Process Automation
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21. Scaled & Distributed Process Ownership
Process Owner: Has overall
Sponsor organizational process accountability and
may as well have specific accountability
for their own group or region.
ITSM Executive Process Manager: Has process
accountability for their specific functional
group or region and is accountable to the
ITSM Governance Process Owner for organizational
compliance
Process Process Process Process
Manager Manager Manager Owner
Coordinator
Org 1 Org 2 Org 3
External
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22. Procurement & Contracting
Elements of A Service Contract
Basic terms & conditions Service description & scope
Service level requirements Service scope
Service Management involvement Responsibilities & dependencies
Service debit & credit regime Contact points, communication
Contract review & dispute process Prices & payment structure
Agreement change process Confidentiality requirements
Intellectual property rights Liability limitations
Termination rights of each party Obligations at termination & beyond
Security requirements Business continuity requirements
Mandatory technical standards Service Improvement process
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 22

23. Questions?
Troy DuMoulin
t.dumoulin@pinkelephant.com
http://blogs.pinkelephant.com/troy
http://twitter.com/TroyDuMoulin
Thank You
PINK ELEPHANT
www.pinkelephant.com
ITIL Castles In The Cloud © Pink Elephant, 2011. All Rights Reserved. 23