Cloud Service Management. A New Beginning.

Cloud Service Management
A New Beginning
What You Need to Know
Mark O’Loughlin
Copyright © Red Circle Strategies 2014

Introduction
• Service Management Principal
• Consultant
- Service Management
- Service Architect / Designer
• Author The Service Catalog
• ITIL Master
• ITIL Trainer
• Director itSMF Ireland
• Director Cloud Credential Council
• Member of WG25CA (ISO/IEC 20000 workgroup)
• Author – Cloud Service Management - Course

Organizations

Promote the Message
Twitter @oloughlinmark
#ITSM14
Email mark@redcirclestrategies.com
mark.oloughlin@italliancegroup.com
mark.oloughlin@auxilion.com
Blog www.markoloughlin.org

Agenda
• The utility of cloud computing
• The ability to adopt cloud successfully
• The capability of using cloud

The Utility of Cloud

Utility Model
Utility Power
• In the 1800-early 1900s each factory built a power plant
beside it.
• Alternating current allowed for long distance power
transmission
• Throughout early 1900s internal power plants were
outsourced to utility power providers

Cloud computing is seen as a
new way of delivering
computing resources
What is Cloud
Cloud computing is
not new technology
Cloud computing is the
delivery of computing as a
service, rather than a product,
where shared resources are
provided as a utility over a
network (internet)

Every Minute of the Day
9
Are you “In the Cloud”?
What are you using?
Many people are “In the
Cloud” without realising it.

Cloud is Disruptive
Cloud is changing how:
• IT services are delivered
• Businesses offer services to customers
• Customers interact with business
New cost models are being introduced
-OPEX is replacing CAPEX spend
-New routes to market, quicker
New approaches to IT & Business management
required

Cloud is Disruptive
The business will expect faster, quicker, cheaper, better,
agile.
How will IT service providers adapt to the changes cloud is
introducing?
What can you deliver with cloud?
How will you manage the development and operation of
cloud based services?
Are your processes agile? See first point.

The Utility of IT
How will you adapt to the utility of cloud?
How will your customers adapt to the ability of cloud?

Utility Cloud War
• Amazon
• Google
• Microsoft
• Cloud war is on – Prices are dropping
• Interesting fact. Amazon has yet to make £1 profit from
cloud

The Ability of Cloud

Cloud and ITSM Convergence
Updated IT & Business practices will be required to realise
and manage the benefits from cloud computing

Even though cloud is disruptive there are many benefits
Benefits of Cloud
• Scalable
• On-demand
• Pay-per-use
• Elastic
• Less CAPEX, more OPEX
• Quicker to implement IT
services
• Flexibility
• Scalability
• Dynamic
• Cost effective
• Disruptive
• Challenges the market

Benefits of Cloud
17

What Do You Need To Know

IT Delivery Model Is Changing
Survey
How many organisations here today have internal IT
departments?
Do you know the future model of IT using cloud?

+
+
Todays IT = Hybrid IT
Legacy IT
Traditional IT
Cloud Computing
=
How to Address
Integrate
SIAM – Service Integration and Management
Adopt a Hybrid IT model

2013 Presentation
See this presentation for more details.
• IT Becomes The Broker
• SLA Meltdown
• Demanding Times
• Losing Control
• The Model Gets Cloudy
http://www.redcirclestrategies.com/Downloads/Mark_OLoughlin
_itSMFUK_Its_Getting_Cloudy_in_IT_Service_Management.pdf

2014 Presentation
• Service Catalogue - Cloud Market Place
• Change Management
• Service Disintermediation
• Budget
• Process

Service Catalogue - Cloud Market Place
1) IT needs a catalogue to market and sell your services
2) IT are likely to use a service catalogue to procure IT
Services
Example UK Cloud Store
Source: http://govstore.service.gov.uk/cloudstore/

Change Management
Why Does Change Management Need to Adapt for Cloud
Computing?
– To avail of the on-demand attributes of cloud
computing which helps achieve IT and business goals,
objectives, and strategies
– To help control reducing and retiring cloud computing
and cloud-based services to streamline costs

Change Management
An agile and adaptive approach to change management for
hybrid IT will require:
1. Traditional change management structures.
2. A flexible approach for managing smaller changes more
often, for example, DevOps type changes.
3. Integration between traditional IT and DevOps (agile)
approaches.
4. Clearly defined change management processes and
procedures.

Service Disintermediation
Disintermediation is the removal of intermediaries in a supply chain, or “cutting
• End-users purchasing cloud services directly
• End-users not going through the service desk or IT
Channels
• e.g. for a SaaS application – online invoicing application
out the middleman”.

Budget
• How to deal with the shift from CAPEX to OPEX?
– Managing of demand from both supplier and provider
sides including procurement
– Identifying if SaaS subscriptions will increase costs, for
example, if a SaaS application is more heavily used
than originally planned
– Identifying if the procurement department
understand cloud services, how to buy cloud services,
and so on
– Identifying if there is enough OPEX to meet the
forecast and actual demand
– Linking to cloud marketplace or a cloud service
catalogue where costs are clearly defined

Process
• Are you policies rigid or flexible?
• Have you adapted your processes to cater for cloud
based services?
Change Management Supplier Management
Service Catalogue Transition Planning
Procurement Availability Management
Demand Management Capacity Management
Incident Management Release Management
Problem Management Event Management

Policy
• Does your organisation have a policy on approved usage
of cloud services
• In not, what are the risks?

The Capability of Using Cloud

What Is Your Capability?
Have you the capability and knowledge to
• Adopt cloud
• Benefit from cloud
• Transform cloud
• Manage cloud
• Train for cloud
• Secure cloud
• …

Where is Best Practice for Cloud?

Market Potential
€288 million represents what?
• Additional labor costs for New York’s Metropolitan
Transportation Authority in 2014
• What Santa Barbara City College needs to fund four
additional buildings
• What the Social Security Administration in Washington,
USA spent on a failed IT project

Market Potential
€288 million is spent yearly on ITIL training and exams
(approximately)

ITIL Training Investment
Global Investment
• 260,000 ITIL Foundation Exams
• 60,000 ITIL Intermediate (incl. MALC)
• 320,000 ITIL Exams per year
Courses Number Costs Sub-Totals Totals
ITIL Foundation 260,000 €800 208,000,000
Intermediates 60,000 €800 48,000,000 256,000,000
Exams
ITIL Foundation 260,000 €100 €26,000,000
Intermediates 60,000 €100 €6,000,000 32,000,000
Prices Average / Estimate 288,000,000

Cloud Training Investment
How much is spent on cloud training?
Training just 10% of those already ITIL certified would equal
36,000 Professional Cloud Service Management certified
people!

The ITpreneurs Cloud Portfolio
Cloud Security
Manager
Cloud Service
Manager
Cloud Solutions
Architect Cloud
Administrator
Cloud
Developer
CCC Professional
CCC – Cloud
Technology Associate
CCC –
Virtualization
Essentials
CompTIA – Cloud
Essentials
IT Professional
Copyright © 2014 ITpreneurs. All rights reserved.

Cloud Service Manager
Modules
• Cloud Service Management Fundamentals
• Cloud Service Management Roles
• Cloud Service Strategy
• Cloud Service Design, Deployment and On-Boarding
• Cloud Service Management
• Cloud Service Economics
• Cloud Service Governance
• Showing the Value of Cloud Services
• Popular Service Management Frameworks

Cloud Service Manager
Audience:
● IT Managers and CIOs
● Service Managers (with or without an ITIL background)
● Service Management Professionals
● Cloud Strategy and Management Consultants
● Service Architects, Technical Pre-Sales Consultants
● IT Professionals
What they learn:
● Analyze an organization's strategic assets and capabilities to successfully design, deploy,
and run cloud services
● Illustrate the benefits and drive the adoption of cloud-based services Select appropriate
structures for designing, deploying, and running cloud-based services within traditional IT
organizations
● Demonstrate how to link cloud value back to IT strategy
Why they need it:
IT management is under pressure to deliver more agile IT services and adapt to change.
Organizations are adopting strategies that include cloud computing in order to meet these
challenges and offer repeatable, flexible and scalable services. Service managers must help
organizations optimally ensure measurable service delivery and management in cloud
environments.
Cloud service design,
deployment and run course
https://www.itpreneurs.com/course/professional-cloud-service-
manager/

Helpful Resources
Axelos White Paper on ITIL and Cloud
Computing
http://www.redcirclestrategies.com/itil-and-cloud-computing-whitepaper-axelos.
html

2013 Presentation
See this presentation for more details.
• IT Becomes The Broker
• SLA Meltdown
• Demanding Times
• Losing Control
• The Model Gets Cloudy
http://conference.itsmf.co.uk/e6ajwt/8/38/2E2

Cloud Service Management
A New Beginning
What You Need to Know
Mark O’Loughlin

Cloud Service Management. A New Beginning.

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