IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Advanced Analytics Real World Adoption

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Advanced IT Analytics
A Look at Real Adoptions in the Real World
Dennis Nils Drogseth
Vice President
Enterprise Management Associates

INDUSTRY ANALYSIS & CONSULTING© 2016 Enterprise Management Associates
Today’s Presenter
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Dennis Drogseth, Vice President, EMA
Dennis brings several years of experience in various aspects
of marketing and business planning for service management
solutions. He supports EMA through leadership in IT Service
Management (ITSM), CMDB systems, as well as megatrends
like advanced operations analytics, cross-domain automation
systems, IT-to-business alignment, and service-centric
financial optimization. Dennis also works over several practice
areas to promote dialogue across critical areas of technology
and market interdependencies. Dennis also helped to build the
network management practice area at EMA.

Sponsors
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Agenda
• Methodology and demographics
• Organizational highlights
• Functional priorities
– Cloud and agile/DevOps
• Technology and design
• AIA deployments
• AIA success perspectives
• 2014-2016 trends
• Summary: AIA between the lines
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Methodology
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• Time: Q1, 2016
• Quantity: 250 respondents
– 150 in North America
– 100 in Europe
• Requirements: active deployments for ….
– Advanced IT analytics (AIA) for performance/availability
– AIA for change or capacity optimization
– Can include: attention to security/ cloud/ agile
• Required:
– Managerial or hands-on involvement

What is Advanced IT Analytics (AIA) in EMA Research?
• Cross-domain—not restricted to network,
systems, application, database, or business outcomes
only.
• Assimilates many different sources, whether
third-party monitoring tools or different data sources
or, ideally both.
• Requires the application of advanced
heuristics e.g. machine learning, advanced
correlation, anomaly detection, predictive trending,
etc.
• Let the research speak for itself!
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Demographics
• Size:
– 500 and above employees with strong mid-tier
(2,500-10K)
– 20% more than 10K employees
• Verticals:
– Finance/banking/insurance led, then tech SW,
manufacturing and retail
• Stakeholders:
– 34% IT director or above, 14% non-IT
business
– Prominent areas: operations planning and
design, IT performance engineering, program/
project management
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INDUSTRY ANALYSIS & CONSULTING© 2016 Enterprise Management Associates, Inc.
Managerial oversight led, followed by hands-on
stakeholders, in terms of AIA-related roles
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23%
53%
17%
7%
0%
HANDS-ON STAKEHOLDER
MANAGERIAL OVERSIGHT
TECHNICAL ADVISOR/STAKEHOLDER
BUSINESS STAKEHOLDER
I AM AWARE BUT HAVE NO DIRECT ONGOING INVOLVEMENT
What is your role in supporting these initiatives – which of the following best applies to you?

Organizational Insights
© 2016 Enterprise Management Associates, Inc.10

Executive and ITSM were most likely to drive
advanced analytic strategies
11 © 2016 Enterprise Management Associates, Inc.
22%
19%
9%
7%
7%
6%
6%
6%
6%
4%
4%
4%
0%
IT EXECUTIVE SUITE
IT SERVICE MANAGEMENT/SERVICE DESK
CLOUD
OPERATIONS AS A WHOLE
CROSS-DOMAIN SERVICE MANAGEMENT ORGANIZATION
CHIEF ANALYTICS OFFICER/CHIEF DATA OFFICER
INFRASTRUCTURE MANAGEMENT
BUSINESS EXECUTIVE (NON-IT)
SECURITY/COMPLIANCE
OTHER CROSS-DOMAIN TEAM
APPLICATION MANAGEMENT
APPLICATION DEVELOPMENT/DEVOPS
OTHER
What organization is most likely to drive your advanced analytics strategy?

Roles Supported by the AIA Investment
2016
• Domain average = 4.38
• X-domain average = 4
• Non-IT business average = 2.82
• Total role support = 11
2014
• Domain average = 4
• X-domain average = 3
• Non-IT business = 2
• Total role support = 9
© 2016 Enterprise Management Associates12

Integrated ITSM and Operations for AIA
82%
indicated
strong ITSM
integrations
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Top areas:
– Project management
– Integrated ITSM knowledgebase
– Shared IT governance analytics
for OpEx efficiencies
– Integrated service level
management
– Workflow scheduling for triage
and remediation
– Integrated trouble ticket
analytics

Functional Priorities

Use Case Perspectives
• X-domain application/business service
performance—100% either deployed or actively in
deployment
• Change management and or capacity
management/infrastructure optimization—60%
deployed or in deployment
• Part A – Part B…
– Change/capacity more advanced but less successful
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Functional Dimensions
• Domain reach—6+ average
– Database, security, network, systems led
– Apps tops if add separate options
• Top for triage and diagnostics:
– Security, application infrastructure, network
• Top technical performance issues:
– Network, systems, storage
• Top technical change/capacity issues:
– Data quality management and cloud efficiencies
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Top Business Metrics
1. Cost of external service delivery
2. SLA requirements
3. Revenue (through IT services)
4. Business Activity Metrics
5. Compliance metrics (PCI)
6. Cost of internal service delivery
7. Supply-chain-related outcomes
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Top Use Cases for AIA in Support of Cloud
1. Improved network security
2. Hybrid cloud optimization
3. Compliance
4. Integrated security and performance
5. Real-time service performance
6. Business impact/financial optimization
7. DevOps/ agile– continuous deployment
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AIA and Dev/Ops/Agile priorities
40%
39%
37%
37%
37%
34%
0%
OPTIMIZE APPLICATION PERFORMANCE BY PROVIDING RAPID
FEEDBACK TO DEVELOPMENT FROM PRODUCTION
MINIMIZING THE TIME DEVELOPERS SPEND TROUBLESHOOTING
PRODUCTION PERFORMANCE ISSUES
TO SUPPORT THE APPLICATION DEVELOPMENT PROCESS DIRECTLY
TO SUPPORT PRODUCTION/OPERATIONS IN HAND-OFFS FROM
DEVELOPMENT
TO PROVIDE FEEDBACK TO DEVELOPMENT TO OPTIMIZE
APPLICATION DESIGN
TO SUPPORT Q/A TEST
OTHER
What are your organization’s Dev/Ops/Agile priorities for advanced analytics?

Technology and Design

Priorities for Advanced Analytics Intelligence–
Average Nearly Four per Respondent
1. Process analytics
2. Anomaly detection
3. Predictive trending
4. Data mining
5. Real-time predictive
6. Rule-based analytics
7. Predictive simulation
8. Machine learning
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Priorities for AIA Data Sources: Average = 5 per
1. Security Information and Event Management (SIEM)
2. Internet of Things (IoT)
3. Business process impacts
4. Transaction—application performance
5. Transaction—business performance
6. Log files/ access logs
7. Agent data (byte code data)
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More than 90% Are Currently Aggregating Data
into a Central Data Store
36%
27%
28%
5%
4%
YES -OPEN SOURCE
YES -COMMERCIAL
YES - A MIX OF OPEN SOURCE AND COMMERCIAL
NO
NOT CURRENTLY BUT PLAN TO WITHIN THE NEXT TWELVE MONTHS
Are you currently aggregating data into a central data store such as NoSQL databases,
SQL databases, Hadoop, etc. in support of your IT analytics?

Other Design Priorities
• 15 monitoring or other toolset integrations
preferred on average
– Best if direct, or via aggregated data store provided by
AIA vendor
• Only 4% were not interested in capturing
interdependencies Top 3:
– Infrastructure to infrastructure
– Application to infrastructure
– Application to application
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Application Dependency Mapping for Performance
led in Service Modeling Sources
22%
35%
35%
42%
39%
38%
0%
3%
CMDB
FEDERATED CONFIGURATION MANAGEMENT SYSTEM
APPLICATION DEPENDENCY MAPPING FOR CHANGE
APPLICATION DEPENDENCY MAPPING FOR PERFORMANCE
SERVICE MODELING DASHBOARD FOR BUSINESS IMPACT
SERVICE MODELING SYSTEM/TOPOLOGY PROVIDED DIRECTLY
THROUGH THE ANALYTIC TOOL
OTHER
WE DON'T HAVE OR PLAN TO LINK SERVICE MODELING TO OUR
ANALYTICS INVESTMENTS
What types of service modeling capabilities does your organization currently have linked to
advanced IT analytics, or plan to link to advanced IT analytics, within the coming 12 months?

AIA Deployments

69% were using multiple AIA solutions
and 31% were using just one
31%
49%
16%
3%
ONE INTEGRATED SOLUTION
MULTIPLE SOLUTIONS THAT ARE FULLY INTEGRATED
MULTIPLE SOLUTIONS THAT ARE PARTLY INTEGRATED
MULTIPLE SOLUTIONS THAT ARE NOT INTEGRATED
Are you currently using one or multiple advanced IT analytics solutions?

Deployment Dimensions
• 17= Average number of stakeholders per respondent
• >2 = Average number of FTE administrators
supporting AIA
• Biggest roadblocks:
– Products not yet fully baked
– Data quality issues
– Internal politics/ leadership
– Availability of relevant skillsets
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Top ACHIEVED Benefits
1. More efficient use of cloud resources
2. More efficient use of storage
3. Faster time to repair problems
4. Faster time to deliver new IT services
5. Improved OpEx efficiencies within IT
6. Improved compliance with industry requirements
7. Proactive ability to prevent problems
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Success Perspectives

Success Rates Examined
• 19% extremely successful:
– 45% claim to be very successful
– 28% claim to be successful
– 6% marginally successful
– 1% not successful
• Extremely successful (compared to marginal and not)
– Supported more roles (domain/ cross-domain/ business)
– Were 3X more likely to see 50/50 ITSM/operations integration
for AIA
– More likely to support cloud and agile
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AIA Success Rates Examined -2-
• Extremely successful were more likely
to want to capture interdependencies
across the service and its infrastructure:
– 2.5 (extremely successful) to
2.2 (very/successful) to
1.7 (marginally successful
• And seek out more sources for
capturing interdependencies
– 2.63 sources to
2.1 sources to
1.7 sources (for marginal)

Success Rates Examined -3-
• Extremely successful more likely to invest in
multiple AIA heuristic options
• 4.11 options for extremely successful,
to 3.7 for very / successful to 2.47 for
marginally successful
• More likely to seek out multiple sources
• 5.29 to 4.79 to 3.74 sources for
marginal
• More likely to integrate 3rd party monitoring
and other tools
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2014–2016 Trends

2016 Compared to 2014
• 2014/ 2016 were generally
congruent, and most similar in:
– Domain reach
– Priorities for triage
– Business impact metrics
– Number of 3rd party monitoring and
other tools for AIA integration =
between 10 and 20 both years
– Number of FTEs for AIA administration
= 2 both years

2016 Compared to 2014 continued
• But 2014 to 2016 differ or suggest changes in:
– The growing role of ITSM in driving AIA initiatives
– Growing role-support for AIA investments, from 9 to 11 overall
– Process analytics and anomaly detection led for 2016, but
data mining led in 2014 for AIA heuristic priorities
– Spreadsheets were the most prevalent data source in 2014
for AIA, in 2016 security and IoT took the lead
– Roadblocks to AIA deployment: in 2014 it was internal
resources (people and budget), in 2016 it was technology
issues—products still not fully baked

Summary: AIA Between the Lines

AIA Between the Lines – Deployments
• AIA Performance is a leading reason for
AIA initial adoption
– AIA for change and capacity optimization is a
(more advanced) next step
– Security is growing as an integrated AIA concern
• AIA is a layer above existing monitoring and other
investments
– Multiple tools, multiple sources
– Assimilation of service modeling and services dependencies
• AIA maturity generally = AIA success

AIA Between the Lines – Market
• Actually, AIA isn’t exactly a market (nor should it be)
• AIA is maturing in:
– Technology/ heuristics choice
– Technology/ source choice
– Deployment/ issues and roadblocks
– Role/ outreach
– Role/ type—business and cross domain
• AIA is (and must) become more strategic/transformative

Questions?
Get the full report:
http://bit.ly/1SZUWX9
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IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Advanced Analytics Real World Adoption

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IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Advanced Analytics Real World Adoption