OPS-CIM2037

An Introduction to IT Business Management: CIO Decision-Making Platform

Brian James, VMware, Inc. Mahipal Lunia, VMware, Inc.

#vmworldops

Disclaimer

This session may contain product features that are

currently under development.

This session/overview of the new technology represents

no commitment from VMware to deliver these features in any generally available product.

Features are subject to change, and must not be included in

contracts, purchase orders, or sales agreements of any kind.

Technical feasibility and market demand will affect final delivery. Pricing and packaging for any new technologies or features
discussed or presented have not been determined.

VMware ITBM Fact-Based Approach to Run IT Like a Business

Transparency

Planning & Control

Optimization & Alignment

Services

What services do I offer?

Costs

What is the cost of providing those services?

Quality

What does the business get and how do I manage tradeoffs?

Can You Answer these Questions?

1. What services do you offer? What do they cost? 2. Are you cost competitive with industry benchmarks? 3. How much are you spending on desktops? Supporting applications? 4. Where would you cut to take costs out of IT? 5. Are you making decisions based on facts or gut feel? 6. What does the business get with each service? 7. Can you show how the pieces of IT come together
to deliver value?

8. Do you have a plan to move from where you are

to where you need to be?

Is pressure to answer these questions rising in your organization?

Cloud Changes Everything and Nothing

Cloud is an Architecture
IT Business Services are still services Physical infrastructure, fixed costs, finance arent going away How do you take advantage of cloud? Regardless of how much you use?

New Opportunity The Automated Service Broker

IT Broker Capabilities
Cost Transparency Prioritize spend and resources Accountable partnerships Collaborative service offerings Pricing Enhanced agility

Internal IT

Private Cloud

Public Cloud

External Vendors

Enhancing the CIO and

Operations
From managing technology to delivering
internally and externally provisioned business services
Broker of IT Services

From manual and ad-hoc to systematic Providing the right service at the right
price for competitive advantage
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Service Portfolio

Service Level & Quality

Demand, Costs & Incentives

Customer Success
Cost Transparency, Quality and Optimization through Automation

Saved over $20 million/year by reducing unit costs by at least 6% each year Chargeback all costs via consumed services

Automated Cost Transparency, Control and Alignment

Service costs modeled, tracked and managed WW Costs, usage, and margin used for tax and optimization Vision of IT portfolio with services, applications, infra, vendors

Centralized Visibility for Improved IT Decision Support

Moving from project based to consumption based approach Fully loaded per-user and per-unit costs for benchmarking and cost modeling

VMware IT Business Management Domains & Capabilities

Fact-Based Approach to Run IT Like a Business

Visualization

IT Financial Management
Costs Services Planning

IT Benchmarking
Objective Evidence Functional Peers

Service Quality Management

Services Portfolio Automation Platform

Service Levels Vendor Accountability

Data Collection & Validation Security

3rd Party Connectors Data Import/Export

IT Cost Modeling Analytics

Public Cloud

Observation Engine Scalability

Private Cloud

PPM/PSA

Storage

IT Monitoring

Service Desk

CMDB

GL, COA & Expenses

SharePoint, Internal Cost Models, Apps, Vendor Invoices

Journey/Transformation to Automated Service Broker

VMware IT Business Management - Paths To Value
A B

IT Financial Management

IT Quality Management

Transparency

Bill of IT Show/Chargeback Cost Modeling

Service Contracts KPIs Escalation Paths

Planning & Control

Planning Benchmarking

Service Tiers Vendor Management Invoice Validation

Optimization & Alignment

What If Scenarios Budgeting Demand Mgmt

Quality vs Cost In vs Outsource

Bill of IT

Step 1 ITFM Cost Transparency

Transparency

Show/Chargeback Cost Modeling

360 IT Cost Transparency

Comprehensive Bill of IT
Consumed services and costs Showback/Chargeback

Single source of truth for costs & services

All spend (physical, virtual, cloud, services, vendors)

Suite Capabilities
Agile service costing & modeling Automated data collection
Data Connect, Collect, Cleanse & Correlate

Smart virtual and Cloud metering VMware Strengths Deterministic cost engine & model access Smart Virtual/Cloud metering and embedded costing Dashboards
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Step 2 ITFM Planning & Control

Planning & Control

Planning Benchmarking

Objective Evidence to Illuminate Your Path

Your data + Industry and functional peer benchmarks Over 3,500 metrics, 18 domains, 20 industries The so-what of cost transparency

Suite Capabilities
Examine service mix & demand Plan and compare with what-ifs Identify immediate areas for saving

VMware Strengths
Objective approach to benchmarking Top down and bottom up planning Control over your data
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Step 3 ITFM Optimization & Alignment

Optimization & Alignment

What If Scenarios Budgeting Demand Mgmt

Optimize Services to Align with Business

Compare costs vs service vs value Use incentives to alter/manage demand Make and defend decisions with facts

Suite Capabilities
Run multiple what-if scenarios Incorporate metered cloud costs Analyze actuals, trends, what-ifs Import/Manage budgets Track savings and automate variances

VMware Strengths
Observation engine to spot anomalies Booklets Service Broker Automation
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IT Quality Management

Service Quality Management

Service levels and relationships Extend scorecards to vendors Objective targets and expectation management

Suite Capabilities
Automated service flows Setting and managing service contracts KPIs and escalation paths Proactive management

VMware Strengths
Service vs Cost vs Value comparisons Integration with Cloud services

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Success with VMware

Expertise in ITBM and Cloud

Over 10 years expertise in both ITBM PSO Services Accelerate Cloud and Transformation Services

Global Reach - Offices in 63 countries

Nearly $4B in Revenue Continued investment in ITBM

Strong Partnerships
Dedicated ITBM & ITFM Partners Over 40,000 Partners

ITBM Business Model Flexibility

Subscription (SaaS and On-Premise) Perpetual

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ITBM Customers

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YOUR QUESTIONS

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FILL OUT A SURVEY

EVERY COMPLETE SURVEY IS ENTERED INTO DRAWING FOR A $25 VMWARE COMPANY STORE GIFT CERTIFICATE

OPS-CIM2037

An Introduction to IT Business Management: CIO Decision-Making Platform

Brian James, VMware, Inc. Mahipal Lunia, VMware, Inc.

OPS-CIM #vmworldops

Appendix

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Any of these important to you?

3 of CIOs Top 10 Priorities

Delivering Business Solutions Reducing IT Cost Developing / Managing a More Flexible Infrastructure

3 of CFOs Top 10 Picks

Facilitating Analysis and Decision Making Quality of Data used for Business Information Reduce Enterprise Operating Costs

2012 Gartner and CMP Media CIO Survey Results

VMware ITBM can help you deliver on these priorities

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VMware IT Benchmarking

Objective Evidence to Illuminate Your Path

Shows where you are today, where you could be from a cost perspective Over 3,500 metrics, 18 Towers/domains, 20 industries Your functional and industry peers Identify immediate areas for focus, cost savings

Automated Approach
Eliminates bias, sold by independent 3rd parties Automated validation, analysis, reporting

VMware strengths
Objective, automated approach Repeatable Functional and Industry Peers Start small and expand
Top Midrange Server Tower Metrics:
Cost per Server, Total Server Count, Total Costs, Hardware Costs, Software Cost, Staffing Cost, Facilities Cost, Disaster Recovery Cost, Outsourcing Cost, Average Cost per Staff

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VMware IT Benchmarking Deliverables Review

The Standard Report:
11 pages of charts and tables Executive rollup section Functional and Industry Peer groups
compared across 5 levels

Peer Average Peer top quartile quartile Industry average Industry top quartile quartile Database average

The Extract Report:

Fully editable XLS document with hundreds of

metrics

Functional and Industry Peer groups

compared across 7 levels

Peer Average Peer top and bottom rtile quartile Industry average Industry top and bottom quartile quartile Database average

Clean, unbiased data Baseline for building recommendations and

next steps

Data can be pushed directly into ITBM system Custom reporting capabilities Data mining capabilities Do detailed comparisons to track against internal baselines

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