1. 1 AAS 4.1: IT AS A S ERVICE 101 - O VERVIEW Tad Davies, SVP

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3. 3 IT as a Service 101 – Presentation Description Considerations for going down the IT s a Service approach to providing your business with services. Highlights to include information needs, approaches, and migration thoughts.

4. 4 Agenda Definition Service Delivery Views Interest | Real World Why Leverage in-house IT Thoughts about the Journey Keys to Success Framework Service Catalog Organizational Changes | Implications | Challenges Appendix: Resources | Charts

5. 5 Definition IT as a service (ITaaS) is an operational model where the IT organization of an enterprise is run much like business [unit], acting and operating as a distinct business entity creating products (including services) for the other Line of Business (LOB) organizations within the enterprise. -Wikipedia

6. 6 Views on Service Delivery Traditional IT Vertical silos within IT: server | storage |network | sys admin | dbase | etc. Each projects involves customized solutions, often dictated by the business Significant % of time expended towards operation vs. collaboration & innovation Reduced face time with LOB Processes often require higher manual effort. Initiated and tracked by IT staff Requests have historically long delivery times IT as a Service Services are pre-defined in catalogue – Service Catalogue Infrastructure – abstracted & virtualized Higher levels of automation Standardization and simplification of solution sets More horizontal organizational structure – services architecture team Migration toward IT buying and brokering vs. build and operate Push towards self-service Significant outreach to business units

7. 7 Why the Interest  Reduce cost  Increase IT efficiency  Improve financial transparency  Increase deployment speed  Ability to innovate faster Is this really new thinking? NO However, ITaaS is the current approach

8. 8 Real World Thoughts  IT is already delivering services  In many organizations, there have been significant strides in automation  Budget is not unlimited to make transformation BUT  Competition should be addressed head on IT is no longer the only choice (SaaS) IT needs to be responsive, cost competitive solution  Leverage your network of peers

9. 9 Why leverage in-house IT IT knows the business significantly better than an outsider  Business Business unit knowledge: who are they, what they do, priorities, sensitivities  People – Relationships - Trust  Technology Expertise Infrastructure, network, applications, dependencies  Governance IT most familiar with corporate governance  Process Current operating models, change management  Risk Capacity, compliance

10. 10 Thoughts About the Journey 1.Review IT’s current operating model a.Is it documented? b.How well is it mapped to your organizational strategy? Recognize that organizational strategy may have changed over time c.How does it serve your business units? d.What are the costs? E.g. Cost per TB e.What are the current performance metrics including KPIs 2.Get executive approval to start the journey a.High level project charter b.Define funding parameters – difficult to establish budget at this stage.

11. 11 Thoughts About the Journey 3.Create transition team a.Leverage PMO (audit current operating model & cost) b.Advisory committee – cross-section of stakeholders c.Imbedded finance team member(s) d.Communications team 4.Build new operating model or improve existing a.New performance metrics | additional SLAs b.Different financial metrics starting with show-back metering 5.Build service catalog a.On-going process b.Model future financials

12. 12 Thoughts About the Journey 6.Implement offerings a.Dashboard metrics for exec review b.Compare against existing service levels c.Continuous improvement and feedback from BUs d.High level of training and communications e.Entrepreneurial approach to new services 7.Monitor results a.Continuous feedback – survey every request

13. 13 Keys to success 1.Executive support & engagement! 2.Establish that this is a multi-year effort 3.Build a team that has all necessary skills sets: technical, financial, PM, communications, etc. 4.Start with a project you can tackle easily 5.Start with your most willing BU 6.Ensure that the effort has impact 7.Publicize success 8.Consistent review with all levels – Advisory, Steering, ETL 9.Take an entrepreneurial approach – act now!

14. 14 Frameworks Leverhawk EMC 2

15. 15 The Service Catalog Defines what the internal customer can order from IT as a standard service  Service descriptions (ex. standard small/medium/large server, 1 TB of storage, SaaS management, custom services)  Options (with cost). Storage examples: Additional Storage - quantity Storage Tiers – performance Replication/Backup options – additional services DR options  SLAs  Other terms and conditions  Service cost ($$/month) – leveraging your cost audit

16. 16 The Service Catalog Examples University of California - Davis http://itcatalog.ucdavis.eduhttp://itcatalog.ucdavis.edu Stanford University https://uit.stanford.edu/services/?https://uit.stanford.edu/services/ State of Maine http://www.maine.gov/oit/services/index.shtmlhttp://www.maine.gov/oit/services/index.shtml

17. 17 IT as a Service mentality shift  Business has options – IT group must compete!  Isolates business from infrastructure details  Fast, Focused, and Flexible  Completing service requests times should be measured in minutes, not days or weeks  Continues to provide options but heavily directed towards standardization (ex: We can spin up one of our service catalog defined servers for you this afternoon. If you really want us to build a custom solution it will likely take us 4 - 6 weeks.)  Evaluating and updating services – value and performance – happens continuously

18. 18 Implications  Charge back or at least cost tracking (show back) Charge back of true cost the ideal Business defines needs based on actual cost and justifies it internally IT accepts all requests, because cost is covered Natural governor for requests  Flexibility is key IT MUST deliver, EVERY TIME, on a service request Internal cloud a likely minimum requirement, carefully managed to handle anticipated growth plus some contingency External cloud a possibility to provide flexibility, but should be transparent to the business  IT viewed as the cost competitive, best-service, provider by the business

19. 19 Key Organizational Changes  Business users must be trained in self-service  IT must market the services  IT must understand outside options and even embrace them  Focus: understand workloads and provide appropriate solutions for each – internal or external  IT moves towards becoming a service broker. IT will focus on defining the agreed service levels surrounding the availability and performance of services while allowing the business to dynamically select the level of coverage needed

20. 20 Challenges http://wikibon.org/blog/emcs-move-with-capgemini-is-a-blueprint-for-competing-with-amazon-web-services/

21. 21 Reality Checks  Traditional IT is seldom more cost effective than IT as a Service Standardization reduces overhead. IT jobs may be cut (any roles with “admin” in the title are likely). Expect internal resistance from your staff. You can job-shift your best people: Cloud management is not easy and takes skill. Managed services needs management. Architecting your next, lower cost/better service, solution is an ongoing process that must be resourced.  Organizations resist change Charge-Back is a big shift – you need that Executive Support Some business units may like calling “Bob” directly, ITaaS seldom allows for that

22. 22 3 Key Things You Have Learned During this Session 1.Know your Cost! You can’t compete unless you know your true internal cost 2.Understand the alternatives – Research external cloud solutions, managed service solutions, and what any shadow IT organizations are doing internally (and why!) 3.You’re competing – but you have key advantages out of the gate – leverage and maintain them

23. 23 Thank you Tad Davies Senior Vice President tdavies@bickgroup.com (314) 265-2735

24. 24 A PPENDIX

25. 25 Resources 1.ITaaS diagram http://www.intel.com/content/dam/www/public/us/en/images/illustration s/it-as-a-service-infographic.png 2.An IT-as-a-service Handbook http://www.emc.com/collateral/software/white-papers/h10801- stepstoitaas-wp.pdf 3.IT as a Services Organization http://www.cisco.com/c/en/us/solutions/collateral/enterprise/cisco-on- cisco/IT_as_a_Services_Org_Update.pdf 4.Rebooting IT: What Separates Digital Leaders From the Rest http://www.bain.com/Images/BAIN_BRIEF_Rebooting_IT_What_separ ates_the_best_from_the_rest.pdf

26. 26 ITaaS has cloud aspects

27. 27 ITaaS has cloud aspects