Business Service Management The intelligent way to communicate service performance of complex infrastructure aligned wi

1. Business Service Management The intelligent way to communicate service performanceof complex infrastructure aligned with business objectives • Erin Quill • ITOM Evangelist • equill@netiq.com

2. Agenda • Evolution of Management • Insuring IT is Business Driven • Operations Center • Customer Examples • Talking to Customers

3. What is a Service?

4. Service Level Agreement (SLA) A contract between a service provider and a customer that specifies, usually in measurable terms, what services the network service provider will furnish. • Percent of time services will be available • Number of users that can be served simultaneously • Specific performance benchmarks to which actual performance • Help desk response time • Penalties for not meeting guaranteed levels • Usage statistics

5. Golden age of IT Management • One number to call • Answer in minutes

6. Middles Ages • Servers grouped together • Could physically see problems • Multiple Vendors to call

7. Modern Servers • Virtualization • Blade Servers • Physical location can change based on need

8. Today’s Services Secure Manage Measure PHYSICAL VIRTUAL CLOUD Today’s services will run in a mixed physical, virtual and cloud. The location of an individual services can dynamically change based on availability and compute requirements.

9. “Sprawling” Databases Servers Applications Networks Monitored in Silos Performance Availability Capacity Traffic Doesn’t Correlate Creates Risk No View of Impact Costly Diagnosis Costly Downtime Today’s Management Lightly integrated silos It’s a jungle out there… How can you stay ahead of the chaos?

10. August 16, 2007 2:00 pm LAX Customs Customs Processing Fails 95 Arriving Flights 17,386 Passengers 12 Hours Bad Nic

11. How could it have been different? • Live Dashboard showing # of people being processed • Map of US showing all Passport control centers with color based on # of people being processed compared to averages • Status of the Passport Service • Includes all components needed to service to be up

12. Are we open for business? How are we performing? What is my current level of risk? Are we operating efficiently? Operations CenterTransforming IT to Drive Value and Competitive Advantage “Giving IT the ability to drive an organizations performance with technology and answer:” This requires a solution that transforms the sea of technical data into actionable, intelligent information.

13. Quick Fire ExerciseIntroduction to NetIQ NOC What is a Service What happens when you don’t have a complete view of everything that makes up a service How have things changed to make the viewing of services more complicated

14. Ensuring IT is Business Driven

15. Top CIO Operational ChallengesThe Great Divide! I’M FOCUSED ON: I’M WORRIED ABOUT: • Growth and innovation • Alignment to common IT/business objectives • Market agility • Optimization and cost reduction • Cost to manage new technologies • Complex measurements • Risk due to speed • Trying to do more with less! Increasing complexity fromphysical, virtual and cloud delivery options anda multitude of management technologies

16. The “New IT”Driving Value and Competitive Advantage Counts Mission: • Help Board of Directors See the Competitive Advantage • Communicate Value Delivered – Not Technology Performance • Move from Operating to Powering the Business “52% of Board Members rate ‘maintaining competitive advantage’ of ‘extremely high importance’…” only “16% of Board of Directors have any experience in IT” Gartner Forbes 2011 Survey of Board of Directors NACD (National Assoc. of Corporate Directors) 2011 BSMReview Survey Leading Industry Analyst “65% of Board Members hold ‘high to very high’ expectations for IT strategic contribution to the business in 2012” Gartner Forbes 2011 Survey of Board of Directors

17. IT Departments Are Under Great PressureChange – Complexity – Risk Things are Virtual and mobile Growing list of alternatives Budgets are shrinking The cloud is here The Disrupter

18. IT is Transforming into “Service Brokers”Business is Driving the “New” IT IT departments are increasingly multi-source, hybrid orgs, taking on the role of “services brokers” IT departments want to manage internal and external services as a unified portfolio Capabilities, and outcomes, rather than assets IDC Forecast: By 2013, 52% of IT budgets will be dedicated to “OUTSOURCED IT” – ASP, Public Cloud, and Enterprise/Hosted Private Cloud

19. So… How is IT Doing Today?Typical "Report Card" of a C – or D + Deliver: Efficiency and Effectiveness SLA Reports : Manual, not trusted Cost of Report : 10 Days / month Service Value ROIs : Non-existent 85% of IT operations budgets are spent maintaining and reacting! 85% Operate: Performance and Availability Downtime : 1 – 2% Revenue Customer Reported : >70% Process Errors : >80% Control: Risk and Compliance Emergencies : >50% of Changes Failed Changes : >50% Automated Audits : Non-existent 1 – 2% of Revenue Just “Keeping the Lights On”

20. What’s the Impact of a Poor Grade? • On average, every hour of down time equates to a loss of $100,000 – and most organizations experience 10 hours of downtime, or $1M/year • A single, severe outage can be as high as 1-2% of revenue – regardless of company size • With 85% of IT budgets spent on maintaining and reacting, companies are losing 1-2% off their bottom line Do Not Have Visibility of Impact to the Business!

21. So… How Could IT Be Doing Today?Report Card of a B+ or Better Deliver: 75% Impact Avoidance 60% of IT operations budgets are spent maintaining and reacting! 60% $100,000 / hour – 10 hours / Year – $1M/Year Avoid and shift 1-2% of Revenue to Growing Operate: 90% Diagnosis Reduction Operating Business to Powering Business Control: 30% Efficiency Improvement 1-2% of Revenue Maintaining and Reacting Shift by 25-30% ~1% Revenue to Growing

22. What IT Needs is Control Delivered Through a Single, Consolidated View of Service Performance Asset Data Business KPIs Service Desk Configuration Performance Availability

23. The Answer Business Service Management is the practice of enabling IT to communicate service performance aligned to business objectives, while maintaining control over the infrastructure. 1 – 2% Revenue Just Keeping the Lights On 1 – 2% Revenue Service Impacting Events Service Monitoring Service Mapping >80% of Downtime Due to Poor Process Service Measuring

24. Business Service Management Here’s a simple analogy: If your business is like a high-performance car… …then Business Service Management is your instrument panel – giving you the insight and visibility to maintain your performance

25. “Gauging” Service Performance Configuration Availability Performance Availability Configuration The “instruments” all communicate service performance –early warning indicators to help avoid service outages and collateral damage (stopping the car before it overheats and STOPS!)

26. Find the Right IT “Balance” • More than ever, CIOs are challenged with “balancing” between operating and growing • Emphasis has been on maintaining existing IT infrastructure and responding to outages • Focus must shift to automating operational functions and applying IT to help grow business Operating Growing

27. Quick Fire ExerciseIntroduction to NetIQ NOC What are some of the things that keep Senior management up at night What is a typical starting point for a NOC project What is BSM Why is IT getting a poor grade today

28. Operations Center

29. Novell® Operations Center Operations Center Business Service Management

30. Service Monitoring - Customer’s Concerns Pain Points • 70% of problems are reported by their customers first! • Management consoles are silos • Glimpses into issues without knowing real business impact • 80% of services issues caused by people and process not broken hardware • 85% time and money spent on maintaining existing systems • Cost of not changing • Outages cost 1%-2% of annual revenue

31. Operations CenterDelivering Service Quality Prioritization Impact Analysis Diagnosis and Root Cause Turning technology to services Service Monitoring

32. Service MonitoringKey Value to Customer • Consolidate information from existing IT management tools based on Business Services • Real-time performance and availability dashboard • Prioritize service performance and response in alignment to business objectives • Quickly pinpoint the root cause to restore service availability • Reduce service impacting • Monitor services in terms of the value of the business transacted

33. Service Measuring - Customer’s Concerns Pain Points • SLA Between • Business users and IT • IT and outsourced services • Generating SLA reports are manual process taking up to 10 days • SLA reports are typically historical information not actionable • SLA don’t include ITs value and ROI for technology

34. Operations CenterCommunicating Service Achievement Service-level Management Real-time Service Performance Trend Analysis and Service Improvement Turning technology to services Service Measuring

35. Service Measuring Key Value to Customer • Manage SLA compliance in real time and historically • View information based on business context • Provide predictive early warning to SLA non-compliance • Define and manage SLAs in terms that the business understands • Common dialog between IT and the business • Leverage SLA history to predict future

36. Service Mapping - Customer’s Concerns Pain Points • Every change to services increase vulnerability • Over 50% of changes are ‘emergencies’ • Maintaining standards and change control is difficult and costly • Change control not automated • Audits and regulation control • Manual • Time intensive • Error prone

37. Operations CenterMeeting Service Compliance Service Impact Analysis Relationships and Dependencies Standards and Change Control Turning technology to services Service Mapping

38. Service Mapping Key Features • Map technology to applications and business policies • Initial configuration models by integrating with multiple management technologies to discover items and relationships • Ensure compliance to standards and policy • Mitigate the risk of IT changes affecting mission critical service • Reduce failed changes by 50% or more • Demonstrate compliance with regulatory requirements

39. Quick Fire ExerciseIntroduction to NetIQ NOC Give me a 30 second elevator pitch Explain to me the value of NOC Present one of the capabilities of NOC What is Service Measuring What is Service Monitoring

40. Integration: extensible and configurable Intelligent: service models are state driven In-Memory Data: accessed once, used often Multi-Tenancy: built-in from inception Service Views: real-time and actionable Scalable:largest, most complex - >2M objects Operations CenterKey Features

41. Business Roles Kelly Service Manager Jim Operations Manager Ron Business Manager Services Service Levels Networks Servers Value Competition Targets Applications Storage • It's available and green.... • I have 10 severity 1's, which one first? • What's causing the problem? • Support more with less! • What changed? • Why did they crash today? • Not all services are equal! • Conditions and priorities change • It may be running – it isn’t performing well • Why are customers reporting problems first? • Who cares if the “cloud” provider is down? • How effective is IT – what is the IT value contribution? • How efficient is IT – drive down operating costs • We need to innovate faster than our competition • Technology driving top line, not just cost at the bottom line

42. Intelligent Service ModelMany Roles – Many Views

43. Differentiators • Time to show value • Usually in just a week or two – Full implementation in 90 days • Configurable, extensible, bi-directional integration • Data resides where in original location • Intelligent service modeling • Bring all info about business together • Live, role based actionable dashboard

44. Operations CenterPackaging Overview – Different License Model from AM Operations Center All In • Monitoring, Mapping, Measuring • Production Instance • Non-Production Instance • 3 Integration Modules $325 K Project Pain Starters $150 K Service Mapping Service Monitoring Service Measuring • Features: • CMS • 1 Integration Module • Features: • Experience Manager • Event Manager • 1 Integration Module • Features: • Service Level Manager • 1 Integration Module

45. Quick Fire ExerciseIntroduction to NetIQ NOC What Buyer would be most interested in NOC What is a typical starting point for a NOC project Name on of the main questions NOC allows business to ask themselves How long does it typically take to show value

46. Customer Examples

47. Challenge $6.4M in revenue impacted due to 64 hours re-order kiosk outages Customer satisfaction impacted – take their business elsewhere Solution Provided real-time, root-cause analysis Automated manual reporting process for service-level monitoring Benefits Higher kiosk availability = increased revenue Reduced resource costs Improved customer satisfaction Case Study: ManufacturingBusiness Value Delivered Service Monitoring

48. Customer Dashboard ExampleBusiness Value Delivered – Service Monitoring

49. Customer Dashboard ExampleBusiness Value Delivered – Service Monitoring

50. Customer Dashboard ExampleBusiness Value Delivered – Service Monitoring