cloud service manager course book

Professional Cloud Service Manager release 1.0.0 CCC PCSM

Course Book

ITpreneurs™ Emerging Technologies

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© Copyright 2014 by ITpreneurs Nederland B.V. All rights reserved. CCC Professional Cloud Service Manager, release 1.0.0 Please note that the information contained in this material is subject to change without notice. Furthermore, this material contains proprietary information that is protected by copyright. All rights reserved. No part of this material may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the ITpreneurs Nederland B.V. The language used in this course is US English. Our sources of reference for grammar, syntax, and mechanics are from The Chicago Manual of Style, The American Heritage Dictionary, and the Microsoft Manual of Style for Technical Publications. Copyright and Trademark Information for Partners/Stakeholders. Cloud Credential Council® is a registered trademark. For more details and information, please visit us at below website. www.itpreneurs.com Sam

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Contents

i

FOLLOW US iii

ACKNOWLEDGEMENTS v

MODULE 1: COURSE INTRODUCTION 1

MODULE 2: CLOUD SERVICE MANAGEMENT FUNDAMENTALS 5

MODULE 3: CLOUD SERVICE MANAGEMENT ROLES 11

MODULE 4: CLOUD SERVICE STRATEGY 17

MODULE 5: CLOUD SERVICE DESIGN, DEPLOYMENT AND MIGRATION 25

MODULE 6: CLOUD SERVICE MANAGEMENT 33

MODULE 7: CLOUD SERVICE ECONOMICS 41

MODULE 8: CLOUD SERVICE GOVERNANCE 47

MODULE 9: SHOWING THE VALUE OF CLOUD SERVICES 55

MODULE 10: POPULAR SERVICE MANAGEMENT FRAMEWORKS 61

APPENDIX A: CASE STUDY 67

APPENDIX B: SYLLABUS 79

APPENDIX C: RELEASE NOTES 93

APPENDIX D: PARTICIPANT FEEDBACK FORM 95

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Copyright © 2014, ITpreneurs Nederland B.V. All rights reserved. iii

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Copyright © 2014, ITpreneurs Nederland B.V. All rights reserved. v

www.ITpreneurs.com

AcknowledgementsWe would like to sincerely thank the experts who have contributed to the development of the ITpreneurs products:

CCC Professional Cloud Service Manager, release 1.0.0

Lead Author Mark O’Loughlin

Mark O’Loughlin is a service management principal, service architect, consultant, author, speaker and trainer and works through large blue-chip IT and Service Management organizations.

Mark is the founder, Managing Director and Principal Consultant of Red Circle Strategies, specialising in cloud and service management consulting.

A recognised industry leader in the field of Service Management, Mark was one of the first people to be globally awarded the ITIL Master accreditation, is a

member of ISO JTC1-SC7-WG25CA workgroup and is an invited speaker for various international conferences on cloud computing and service management.

Contributing to global best practices Mark is the author of “The Service Catalog – A Practitioner Guide”, ISBN-9789087535711, and has contributed to numerous other books and publications.

Mark is the Lead Author and Architect of the Professional Cloud Service Management Certificate, Cloud Credential Council.

http://www.linkedin.com/in/oloughlinmark

https://twitter.com/oloughlinmark

http://www.markoloughlin.org/ http://www.italliancegroup.com/

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Module 1Course IntroductionSam

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Professional Cloud Service Manager

Copyright © 2014, ITpreneurs Nederland B.V. All rights reserved.2

OVERVIEW OF THE COURSEThe Professional Cloud Service Manager course ensures that the participants acquire the required skill set and knowledge to become certifi ed Cloud Service Manager by passing the associated Cloud Credential Council Cloud Service Manager exam. This course will explain aspects of IT Service Management applicable to managing cloud services. The information in this course applies to a hybrid IT environment which will be explained in detail.

COURSE LEARNING OBJECTIVESAt the end of this module, you will be able to:

● Recall cloud service management terminology, defi nitions, and concepts.

● Analyze any organization’s strategic assets and capabilities to successfully design, deploy, and run cloud services.

● Illustrate the benefi ts and drive the adoption of cloud based services within an organization.

● Identify strategies to reduce risk and remove issues associated with the adoption of cloud computing and cloud based services.

● Select appropriate structures for designing, deploying, and running cloud based services within traditional IT organizations.

● Model cloud service management principles into ICT operations and IT service management.

● Predict the complexities involved in designing, deploying, and running cloud services.

● Compare and contrast cloud service management with traditional IT service management in the existing IT organization.

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Course Book | Professional Cloud Service Manager | Course Introduction

Copyright © 2014, ITpreneurs Nederland B.V. All rights reserved. 3

COURSE AGENDAThis is a three day course. The three-day training plan is given below:

Day 1

Module Subject Start End Total Time(in hours)

01 Course Introduction 09:00 09:30 00:30

02 Cloud Service Management Fundamentals 09:30 11:00 01:30

03 Cloud Service Management Roles 11:00 13:00 02:00

Lunch 13:00 13:30 00:30

Activities 13:30 15:00 01:30

04 Cloud Service Strategy 15:00 16:00 01:00

Recap Day 1 16:00 17:00 01:00

Total 08:00

Total (Less Lunch) 07:30

Day 2


Review Day 1 09:00 09:15 00:15

05 Cloud Service Design, Deployment, and Migration 09:15 11:15 02:00

06 Cloud Service Management 11:15 13:00 01:45

Lunch 13:00 13:30 00:30

Activities 13:30 14:00 00:30

06 Cloud Service Management 14:00 16:30 02:30

Recap Day 2 16:30 17:00 00:30

Total 08:00


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Day 3


Review Day 2 09:00 09:15 00:15

07 Cloud Service Economics 09:15 10:00 00:45

08 Cloud Service Governance 10:00 11:00 01:00

09 Showing the Value of Cloud Services to the Business 11:00 12:00 01:00

Lunch 12:00 13:00 01:00

10 Popular Service Management Frameworks 13:00 13:45 00:45

Course Review 13:45 14:15 00:30

Mock Exam and Exam Prep 14:15 15:00 00:45

Self-Study Exam 15:00 16:00 01:00

Exam 16:00 17:30 01:30

Total 08:30


CASE STUDYA case study and related exercises and activities will be used throughout the course. The case study is attached with the course book. The exercises will be based on the scenarios from the case study. These exercises will include:

● MCQs

● MMCQs

● Brainstorming

● Drag and Drop

● Discussion forum

● Group Discussion

● Puzzles

● Role Play

ACTIVITIESIn addition to the case study based activities, there will be several other activities meant for enhancing retention. The activities are inserted at logical interval to give a relaxing break in the training.

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Module 2Cloud Service Management FundamentalsSam

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OVERVIEW OF THE MODULEModule 2 introduces the fundamental cloud computing model and its characteristics. The cloud computing model is composed of fi ve essential characteristics, three service models, and four deployment models. Various IT Service Management and cloud computing defi nitions are introduced and explained. The basics of cloud computing and how it should be considered from a provider and consumer view is explored.

MODULE LEARNING OBJECTIVESAt the end of this module, you will be able to:

● Describe the fundamental cloud computing models and characteristics.

● Explain basic terminology related to cloud service management.

● Explain the relationship between IT Service Management (ITSM) and cloud service management.

● Discover how cloud computing is changing the management and delivery of IT services.

● Illustrate the difference between the IT, Business and Consumer perspectives.

● Show the consumer and provider relationship.

TOPICS COVERED IN MODULE The topics and areas covered in this module include:

● History of Could Computing

● Basics of Cloud Service Management

● Service Perspectives

● Relationship with IT Service Management (ITSM)

● Cloud Service and Support Models

BASICS OF CLOUD SERVICE MANAGEMENTCloud computing is seen as a new way of delivering computing resources

Cloud computing is not a new technology

Cloud computing and cloud based services are not new technology. Cloud principles go back to Mainframes circa 1950’s and 1960’s.

There are many frameworks and methods for the management of IT and for service management.

In most cases cloud computing is described as a business model for use of other underlying technologies, stressing that cloud itself is not a technology. Those underlying technologies, such as virtualization, provide the basis for employing cloud computing concepts. Cloud in itself is NOT a technology.

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Course Book | Professional Cloud Service Manager | Cloud Service Management Fundamentals


Purpose of Cloud Service ManagementThe purpose of cloud service management is to:

● Establish appropriate methods for the management and operation of cloud based services

● Embed cloud service management practices into existing IT development and support structures

Scope of Cloud Service ManagementThe scope of cloud service management is to provide:

● Oversight of the design, development, and transition of cloud based services

● Appropriate management and operation of cloud based services

Features of Cloud Computing:Cloud is a style of computing where scalable and elastic IT related capabilities are delivered as a service to consumers using internet technologies.

Cloud is not defi ned as a set of technologies, but rather a model for delivering, managing, and consuming information technology resources and services.

Defi nition of Cloud ComputingCloud computing is a model for enabling convenient, on-demand network access to a shared pool of confi gurable computing resources, that is, networks, servers, storage, applications, and services that can be rapidly provisioned and released with minimal management effort or service provider interaction.

This cloud model is composed of fi ve essential characteristics, three service models, and four deployment models.

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The visual model of cloud computing is represented in the following diagram.

The value to the business from using cloud computing can include the following: ● Value for money

● Ability to scale business quickly

● Economies of scale

● Flexibility

● Operational reliability

● Utility-based charging

● Leverage new technologies, cheaper

● Increase capability of IT

● Improved balance sheet

● Reduce IT overcapacity

● Reduce overall costs

● Reduce IT ownership

How value is realized is an important consideration. It is important to remember that the true value will only be realized and seen by the business if the cloud and cloud service management have a positive effect on the company’s balance sheet.

Value to the customer and end-user of cloud enabled services will only be seen if expected or desired customer and end-user outcomes are achieved.

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Course Book | Professional Cloud Service Manager | Cloud Service Management Fundamentals


SERVICE PERSPECTIVESThese are the three key perspectives for consideration when designing end-to-end services–IT, Business, and Consumer. Each perspective should be considered while designing services and using cloud computing and cloud based services.

The IT perspective provides IT services that support business services.

Business services deliver services that consumers want to use.

A consumer can be internal or external to an organization.

Image is copyright © Red Circle Strategies 2013.

CLOUD SERVICE SUPPORT MODELSThe following image shows the increasing level of IT that vendors take on under the cloud service models.

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MODULE SUMMARY

AC TIVITY 1: BASICS OF CLOUD SERVICE MANAGEMENTComplete the blanks in the image.

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Module 3Cloud Service Management RolesSample

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OVERVIEW OF THE MODULECloud service management roles are not fully defi ned in a single framework or standard. In addition the cross-over between service management, the organization, and cloud computing and cloud service management had yet to be fully documented in a single repository or body of knowledge.

Module 3 introduces a number of important roles involved in the design, management and operation of IT and cloud based services and cloud computing. This course is the fi rst time where the cross-over between service management, the organization, and cloud computing and cloud service management is documented, detailed, explained in depth, and examined. Over 30 roles are presented, defi ned, and described in an end-to-end role mode that is unique to this course.


● Recall important roles involved in designing and running cloud services.

● Identify and explain important roles involved in cloud service management.

● Defi ne cloud management roles and their main responsibilities.

● Compare and contrast the differences between different cloud management roles.

● Compare the relationship between cloud provider and cloud consumer.

● Illustrate how cloud and traditional IT roles interrelate in the delivery of IT services.


● Cloud Management Roles

● Service Management Roles

● Organizational Roles

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Course Book | Professional Cloud Service Manager | Cloud Service Management Roles


CLOUD MANAGEMENT ROLES

Sources of Roles in IT and the Organization

NIST is one reference point which has defi ned a number of important roles for the management of cloud services.

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Various IT Service Management frameworks have identifi ed many roles for the design, deployment, and operation of IT e.g. ITIL.

● NIST Conceptual Reference Model

● Outlines fi ve key cloud management roles

Further defi nitions are available from NIST – US Government Cloud Computing Technology Roadmap Volume 2.

All these roles are clearly defi ned and described within the course presentation and notes.

There are three levels to cloud service brokering. These are:

Cloud Broker Service Intermediation ● Adds value to existing services by providing additional functions

● Service quality aspects are provided by the original service provider e.g. security, service levels etc.

Cloud Broker Service Aggregation ● Combines multiple services into one or more new services.

● Service quality aspects are provided by the service aggregator e.g. security, service levels etc.

● Interoperability off services necessary and a requirementSample

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Course Book | Professional Cloud Service Manager | Cloud Service Management Roles


Cloud Broker Service Arbitrage ● Cloud broker can choose from multiple services for opportunistic gain

● Aims to provide dynamic pricing of cloud services

ORG ANIZATIONAL ROLESStakeholder identifi cation and engagement is vital to ensure success with introducing cloud computing and cloud based services into any organization.

Business StakeholdersInterested in the performance of the business, business processes and functions and direct and indirect revenue generating activities and initiatives. Needs IT to support these interests.

Project StakeholdersInterested in the successful outcome of a project. Sponsors the project. For IT projects responsible for managing IT initiatives as formal projects, delivering required functionality and project outputs.

IT StakeholdersInterested in delivering effi cient and effective IT services that are required by the business. Responsible for providing, supporting and managing cost effective services.

Customer StakeholdersInterested in the goods and services produced by an organization. Can be viewed as the buyer, who creates the actual demand that the organisation fulfi ls. Wants quality goods and services at reasonable prices.

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MODULE SUMMARY

Source: Image is copyright © Mark O’Loughlin, Red Circle Strategies 2014.

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Module 4Cloud Service StrategySam

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OVERVIEW OF THE MODULEModule 4 examines the fundamentals of cloud strategy. Cloud strategy and policy formulation is explored with examples provided for both.

A detailed example of a cloud adoption strategy is also provided which can be invaluable to organizations that do not know where to start when it comes to adopting and strategizing for the cloud. Key drivers for adoption are provided, which can help make the business case for cloud adoption. Module is concluded by understanding the risks involved in using cloud computing and providing relevant risk mitigation strategies and a risk management cycle.


● Differentiate between potential risks and benefi ts of adopting a cloud strategy.

● Select different approaches for recognizing the value of cloud services.

● Compose a cloud strategy statement.

● Explain stakeholder management techniques.

● Produce an initial cloud adoption strategy.


● Cloud Strategy Fundamentals

● Key Drivers for Adoption

● Risk Management Overview

Cloud Strategy Fundamentals Key organizational considerations regarding cloud strategies include the following:

● Cloud strategy does not replace current IT or business strategy principles

● Organizations should adopt a strategic position regarding cloud computing and its use within the organization

● Organizations need to create a corporate policy on cloud computing

● IT needs to understand cloud computing to advise the organization on policy decisions or face the prospect of an external IT provider infl uencing and directing cloud policy and decisionsSam

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Course Book | Professional Cloud Service Manager | Cloud Service Strategy


Example of a Cloud Adoption Strategy

Policy, Process and Procedure Fundamentals ● Policy Statement of intent or position

● Process Defi nes what will be done

● Procedure Defi nes how it will be done

KEY DRIVERS FOR ADOPTION

Key Drivers of Cloud Computing and Cloud Based Services include:

Key Driver Details

Support Top line Growth

● IT strategies, services, and technologies that support top line growth i.e. business revenue

● Encourages entrepreneurial thinking

Improve Operational Effi ciencies

● Reduces duplication of IT technology and practices

● Provides access to modern technology

Value for Money ● Reduce costs especially large CAPEX requirement

● Reduce energy requirements – green agenda

● Leverage economies of scale

● Increased savings opportunities

● Improved asset utilisation

● Lowered maintenance costs

Flexibility ● Caters for increase and decrease in demand

● Easy to add or remove services

● Elastic & rapid provision of compute power

Reliability ● Cloud providers (should) provide superior reliability

Focus on Core Business

● Reduce in-house requirement to manage and maintain IT

● Outsource of non-core activities

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Stakeholder management is very important regarding the adoption of cloud computing and cloud services.

Business Stakeholders ● Have a clear and defi ned interest in the outcome of a business venture.

● Sponsors the business initiative. Finds and acquires the required funds

Project Stakeholders ● Have a clear and defi ned interest in the successful completion of a project

● Exert infl uence over the project, involved in project governance

IT Stakeholders ● Have a clear and defi ned interest in the outcome of IT projects and initiatives

● Exert infl uence over the project which can depend on the infl uence IT has within the organization

● Provides technical oversight, architecture, design skills, and resources

Customer stakeholders ● Have a clear and defi ned interest in the outcome of the business venture and subsequent projects.

● Represents the customer aspect, needs and requirements of the business venture and subsequent projects

● Can be the business stakeholders whose organization will benefi t the outcome of the business venture or the customers of the organization

Key drivers are generally seen from the business perspective as it is the business that gains most from adopting cloud services. However, the IT organization can be seen to be cutting costs and adding fl exibility by adopting cloud based services, which in turn helps the IT department lower costs.

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RISK MANAGEMENT OVERVIEW

Risks and Concerns Using Cloud Computing

Risk / Concern Details

Lack of standards ● Lack of standardization for cloud services

Security ● Security breaches

● Unauthorized access to data

● Loss of data & confi dential information

Vendor Lock-in ● Is this just another form of vendor lock-in?

Return on Investment

● Will using cloud computing and cloud based services provide a better ROI than traditional in-house IT?

● Are there reliable and vendor neutral ROI case studies, references, and realistic calculators available?

Availability ● Will the cloud based services be available when needed?

● How will a cloud service provider guarantee availability

● Why do cloud service providers provide a lower availability service level target that the internal IT organization?

Connectivity ● Latency and bandwidth issues affecting cloud provider, carrier and consumer.

● Accessing cloud based services remotely.

Strategy ● Will cloud computing and cloud based services help achieve corporate strategy?

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Risk Mitigation Activities

Activity Details

Risk management governance

● Use the organization’s risk management governance processes

● If one does not exist, agree parameters for carrying out risk activities.

Risk assessment ● Identify risks

● Many risks related to cloud computing are already known

● Formally document risks and identify remediation

Understand risks ● Rate the risks

Likelihood: Unlikely, Likely, Certain

Impact: Negligible, Moderate, Critical

Engage stakeholders

● Engage stakeholder early and often

● Engage the various stakeholders

● Remember it is a two way conversation

Decisions ● Stakeholders to make strategic decisions about adopting cloud computing and cloud based services

● Takes the risks identifi ed into account

● Inputs into a cloud policy position and cloud policy document

Get expert help ● Get external advice from experts

● Seek vendor and non-vendor advice to give a balanced picture

High Level Sample of a Cloud Strategy Statement

Defi nitionCompany1 accepts the defi nitions of cloud computing and its service and deployment models provided by the US Government’s National Institute of Standards and Technology (NIST). (Company 1 is a fi ctitious name).

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PrinciplesCompany 1 accepts that cloud computing is a major shift in the provision of ICT infrastructure, systems and services. Cloud Computing has the potential to fundamentally change the nature of ICT delivery over time, and to provide benefi ts in terms of effi ciencies, cost effectiveness, speed to market, the leveraging of new opportunities, and improving mobility.

Therefore it is anticipated that cloud computing will be a key part of the strategic future of Company 1 in the public service, eventually becoming the default and primary delivery mode.

Public CloudPublic cloud usage will be reviewed on a case by case bases by the CIO Council. Public cloud offerings that can be used by Company will be published in Company 1’s cloud store. Only cloud services published and made available through Company 1’s Cloud Store are authorized for use.

Private CloudPrivate cloud is best suited to Company 1 and should be used where possible. Company 1 will invest in the development, deployment, and operation of a private cloud infrastructure.

Community CloudCompany 1’s business is not involved in activities or business ventures that can capitalize on using community clouds. Therefore company 1 will not currently be engaging with, adopting and/or using community clouds.

Hybrid CloudCompany 1 recognises that there may be a need to adopt and implement hybrid clouds. The use of hybrid clouds will be reviewed on a case-by-case basis.

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MODULE SUMMARY

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Module 5Cloud Service Design, Deployment, and

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OVERVIEW OF THE MODULEModule 5 explores the service management and end-to-end service design aspects of cloud computing and cloud based services as opposed to the technical design. Options for dealing with legacy systems in a hybrid cloud environment are provided. Diffi culties in benchmarking are highlighted through a number of worked activities. For detailed information on technical aspects of cloud service design, deployment and migration, participants can refer the following courses offered by the Cloud Credential Council:

● Professional Cloud Solutions Architecture (PCSA)

● Professional Cloud Developer (PCD)

This module is concluded with the relevant role of cloud store in selling and consuming the cloud based services


● Discuss important aspects of cloud service design.

● Apply cloud service design techniques.

● Analyze the impact of demand and how to right-size cloud services at the design stage.

● Summarize the key components required to deploy cloud services.

● Select appropriate cloud deployment methods.

● Outline the main stages of on-boarding cloud services.

● Discuss the importance of transition planning before deployment of cloud services.

● List the benefi ts of cloud market place.

● Differentiate between the consumer and provider perspective of a cloud market place.


● Basics of Cloud Service Design

● Dealing with Legacy Systems, Services, and Applications

● Benchmarking of Cloud Services

● Cloud Service Capacity Planning

● Cloud Service Deployment and Onboarding

● The Cloud Marketplace

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Course Book | Professional Cloud Service Manager | Cloud Service Design, Deployment, and Migration


BASICS OF CLOUD SERVICE DESIGN

Basic Service Design Considerations

Key Service Design AreasPortability Data Portability, Application Portability, Platform Portability

Interoperability Application Interoperability, Platform Interoperability, Management Interoperability

Scalability Ability to scale up and down quickly

Security Security concerns, ISO/IEC: 27001, legal requirements, compliance

Confi dentiality Legal requirements, compliance, consumer rights

Continuity Maintaining services to agreed, needed, expected levels, auto-failover, auto-scaling to meet demand

Capacity Having enough capacity at the right time, auto-scaling IT, auto-scaling procurement to meet capacity needs

Availability Having enough availability at the right time, auto-scaling IT, auto-scaling procurement to meet availability needs

Compliance Compliance with international standards, legislation, industry standards

Performance Delivering services as agreed, to agreed service levels, providing service reassurance economically

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Cloud services can be deployed in a number of different scenarios:

● Single Cloud System Scenarios

● Multiple Cloud System Scenarios

● Hybrid IT Scenario

Dealing with Legacy Systems, Services, and Applications Barriers for Cloud Adoption Regarding Legacy Systems

The following barriers are likely to inhibit organizations in adopting cloud based services over their legacy systems, applications and services e.g. Mainframes.

Barriers Details

Complexity Legacy systems are complex.

Proprietary systems need specialist skills.

Compatibility Mainframe considered incompatible with cloud.

X86 systems should be more compatible.

Reverse Engineering Issues in reverse engineering current system confi gurations especially hard coded information e.g. text based confi guration fi les.

Licensing Current legacy licensing models may not reduce costs. Adopting cloud on top of legacy systems may increase licensing costs.

Skills Having the skills to deal with the issues above and what is required to integrate cloud computing and cloud based services with legacy applications, systems and services.

Costs Costs of writing off previous IT expenditure and investments.

Costs of integrating with legacy systems, applications and services.

Political Ownership of the legacy or mainframe by individual organizations not willing to give up their ownership or control to an outsourced or IT-managed alternative.

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Options for dealing with Legacy SystemsOptions for dealing with legacy systems include:

Replace Replacement may not be a likeable options due to the cost involved in writing off the investment in IT or the cost of the alternative.

Interface Many organizations have had to expand the capability and usage of their legacy systems, applications and mainframes. They typically “bolt-on” or interface with other applications and IT services using intermediaries or middleware.

Leave Over the years many organizations have kept their legacy backend and mainframes or have upgraded to enterprise applications (e.g. ERP systems) that suffer similar issues as legacy applications. Replacing these will be seen as expensive and diffi cult.

BENCHMARKING OF CLOUD SERVICES

Benchmark Defi nitionSomething that can be used in a way to judge the quality or level of other, similar things.

Benchmarking cloud services can present the following challenges: ● Finding appropriate vendor neutral benchmarks

● Benchmarks may not exist - cloud service providers may not be able to benchmark their services

● Benchmarks are specifi c to IaaS, PaaS, and SaaS – may not take a full end-to-end cloud service into consideration

● No single standard for defi ning or measuring cloud service benchmarks

● Diffi cult to benchmark and end-to-end cloud service or service that uses cloud computing

● Vendor benchmarks may be unsubstantiated

● Customer / consumer not understanding the benchmarks

● Customer or consumer not having access to a compatible benchmark

● Vendors are benchmarking the same thing differently e.g. CPU can be measured and benchmarked in different ways

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CLOUD SERVICE CAPACITY PLANNINGSpot cloud computing is an effective method of securing cheap cloud resources to meet peaks in demand. Customer bid for available ‘spot instances’.

CLOUD SERVICE DEPLOYMENT AND MIGRATIONCloud service orchestration refers to the arrangement, coordination, and management of cloud infrastructure to provide the optimizing capabilities of cloud services, as a cost-effective way of managing IT resources, as dictated by strategic business requirements. For example, orchestration reduces the time and effort for deploying multiple instances of a single application. And as the requirement for more resources or a new application is triggered, automated tools perform tasks that before could only be done by multiple administrators operating on their individual pieces of the physical stack.

THE CLOUD MARKETPLACE

Cloud Marketplace Defi nitionA commercial on-line store where cloud providers make their cloud computing and cloud based services available to consumers to purchase.

The Cloud Marketplace: ● Provides consumers a centralized place to browse, select, and purchase cloud based services

● Can provide a mix, or all of, IaaS, PaaS, and SaaS services

● Can also provide managed service offerings

A cloud service provider should consider the cloud marketplace when: ● Designing their cloud service offerings

● Designing their own cloud marketplace

● Looking to have their services listed in a community , or shared, cloud marketplace

The consumer does not purchase hardware or licenses.

The consumer pays for the cloud based services as they are used and consumed.

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MODULE SUMMARY ● Discuss important aspects of cloud service design.

● Apply cloud service design techniques.

● Analyze the impact of demand and how to right-size cloud services at the design stage.

● Summarize key components required to deploy cloud services.

● Select appropriate cloud deployment methods.

● Outline the main stages of on-boarding cloud services.

● Discuss the importance of transition planning before deployment of cloud services.

● Outline what a cloud market place is

● Differentiate between the consumer and provider perspective of a cloud market place

ACTIVITY 1: BASICS OF CLOUD SERVICE DESIGNComplete the picture

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My Notes

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Module 6Cloud Service ManagementSam

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OVERVIEW OF THE MODULEModule 6 takes an in-depth exploration of the operational delivery and management of cloud computing and cloud based services. This information is specifi c to this course and is not currently available in a single central body of knowledge outside this course. This module does not cover generic details or information about ITIL or service management processes or best-practices.

It is to be expected that many organizations have already established some form of IT operational processes. The information within this module and course is designed to plug into existing structures and help organizations understand what they need to adapt within those processes to manage cloud computing and cloud-based services. Attendees wishing to know more about ITIL best-practices may take the appropriate ITIL course.


● Discuss how service management principles apply to the running of cloud services.

● Operate cloud services under various types of service level agreements and contracts.

● Identify how cloud services can reduce unavailability of IT services.

● Analyze effective demand management across cloud based service models.

● Describe the basic concept of DevOps.

● Illustrate the benefi ts, risks, and issues of DevOps within an IT organization.

● Discuss the reasons for and adaptive approach to change and confi guration management.

● Discover an alternative approach to change and confi guration management applicable to cloud-based services.

● Discuss the importance and benefi ts of off-boarding or retiring cloud services.

● Show methods for reducing un-needed cloud services in line with decreased demand.

● Discover how to react to less demand for cloud services.


● Cloud Service Management Perspective

● Cloud Service Level Management & Service Assurance

● DevOp’s in a hybrid IT and Cloud Computing Environment

● Managing Cloud Service Confi gurations

● Change Management for Cloud Computing Environments

● Reacting to Demand for Cloud Services

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Course Book | Professional Cloud Service Manager | Cloud Service Management


CLOUD SERVICE MANAGEMENT PERSPECTIVE

Key Considerations for Cloud Service Management ● Don’t replace current processes and practices for new “cloud” based processes

● Instead adapt current processes and practices to cater for cloud

● Build on the current IT organization and structures

● Prepare to be fl exible.

● Don’t expect current processes and practices to be aligned to supporting and delivering cloud-based services and cloud computing.

● Expect some cloud providers not to use industry “best-practice”

● Expect issues in aligning end-to-end or back-to-back service contracts, service level agreements and service targets

● Expect change and having to implement changes to current working practices

CLOUD SERVICE LEVEL MANAGEMENT AND SERVICE ASSURANCE

Service Level managementService level management is responsible for negotiating achievable service level agreements and ensuring that these are met.

Service Assurance Service assurance focuses on providing quality assurance (QA), quality control (QC) and service level management (SLM).

Service A service is any act or performance that one person can offer to another, that is intangible, produced at the moment of delivery and does not result in transfer of ownership.

End-to-End Service Levels ● It is diffi cult to achieve complete end-to-end service contracts and accountability for IT services.

● This is true for current IT providers and customers, so it is not a new issue.

● Cloud computing introduces many new potential providers, each providing disparate services and offerings. Sam

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Cloud and the Service Catalogue ● Cloud services should be defi ned in an Informational Service Catalogue.

● Cloud services can be made available and sold through Cloud Stores, App Stores, or on-line Market Places

● App and cloud stores are equivalent to a Request Based Actionable Service Catalogue for cloud services.

DevOps IN A CLOUD ENVIRONMENT

DevOpsDevelopment Building products and services

Operation Running services and using products to deliver services

Development + Operations = DevOps

CHANGE MANAGEMENT FOR CLOUD COMPUTING ENVIRONMENTS

Change Management for Cloud Computing ● As cloud computing is an on-demand service model, in some cases change needs to happen

quickly

● Cloud services can require a mix of on-demand and traditional change management practices and processes

● For an organization’s IT to be agile a different approach to change management is required

● Getting change management wrong can result in signifi cant IT and business outages – needs to be right

Combining Change Management ApproachesAn agile and adaptive approach to change management for hybrid IT will require:

1. Traditional change management structures.

2. A fl exible approach for managing smaller changes more often (e.g. DevOps type changes).

3. Integration between traditional IT and DevOps (agile) approaches.

4. Clearly defi ned change management processes and procedures.

5. An agile and adaptive approach to pre-defi ned changes.

6. An appropriate way to benefi t from on-demand cloud computing without impacting services, the organization or customers.

7. Appropriate controls to scale up and down cloud services and cloud-based computing.

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REACTING TO DEMAND FOR CLOUD SERVICES

DemandDemand is driven by users and consumer’s needs and desires to acquire or consume goods, services and products.

Demand QueuingDemand queuing occurs where demand has not been dealt with resulting in a backlog of work.

Demand ShapingDemand shaping is the infl uencing of demand to match planned supply.

Demand CapacityCapacity refers to the resour ces available which enable an organisation, or provider, to meet the needs driven by demand.

IT Capacity and Utilization Modelling ● Too much capacity is a waste of fi nancial resources.

● Too little capacity represents an opportunity loss.

● The objective is to match available capacity with demand.

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Demand and Capacity MatchingMatching demand with capacity is the desired state.

Cloud computing can help match demand to capacity by the allocation of IT resources “on-demand” and to help deal with peaks and troughs.

On-demand matching to capacity happens: ● Very quickly with IaaS

● Quickly with PaaS where automation and orchestration is used

● Moderately with SaaS in some cases e.g. allocating or removing subscriptions or licenses

Demand Considerations and RecommendationsThe IT ‘tap’ can be turned on or off in an instant:

● True for PaaS, IaaS e.g. more CPU compute power

● Less true for BPaaS, SaaS

● Know in advance how cloud provider can react to your changing demands. They may not be as quick as expected.

● Know the costs of using more compute / services

● Identify if the business will pay for their increased IT use that meets their demand

● Understand how to avail of cloud computing as a utility

Retiring Cloud ServicesIncreasing cloud services and cloud computing increases costs, specifi cally OPEX

● Steps to take to reduce cloud services:

○ Reduce Active Cloud Services

○ Turn Off Cloud Services

○ Retire Cloud Services ● Automated workfl ows and orchestration assist in quickly reducing active and no longer used

services

● Change management records and controls can help identify increases in cloud services. Review and see if they are still required

● Confi guration management should track and identify increase in cloud services

Data RemnantsData remnants are the residual pieces of digital data that remains even after attempts have been made to remove or erase the data.

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MODULE SUMMARY

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Module 7Cloud Service EconomicsSam

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OVERVIEW OF THE MODULEModule 7 presents six different static and dynamic pricing models for cloud services. These models were not accessible during pre-Cloud era, where everybody was focused on licensing the solution and charging for maintenance, implementation, and integration services. Each pricing model is defi ned and explained in detail. The challenges faced in the procurement of cloud computing and cloud based services are explored. The module also offers a classroom discussion on how cloud computing and cloud based services are changing the way organizations purchase IT services. Ways for dealing with the shift from CAPEX to OPEX is explained. The module is concluded by looking at cloud service charging and provides a cost model for the following scenarios:

1. Traditional Cost Model

2. Cloud Service Cost Model

3. Hybrid IT Cost Model


● Summarize key factors that contribute to the cost of cloud based services.

● Discuss specifi c fi nancial aspects and considerations applicable to cloud services.

● Outline the various pricing models for cloud services.

● Examine the challenges with purchasing cloud based services.

● Discover how OPEX is replacing CAPEX and how to deal with this paradigm shift.

● Analyze different cloud service charging methods.

● Depict a Hybrid IT cost model through a diagram.


● Pricing Models for Cloud Services

● Procurement of Cloud Based Services

● Cloud Service Charging

● Cloud Cost Model

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Course Book | Professional Cloud Service Manager | Cloud Service Economics


PRICING MODELS FOR THE CLOUD

FreemiumFreemium is a business model by which a proprietary product or service (typically a digital offering such as software, media, games, or web services) is provided free of charge, but money (premium) is charged for advanced features, functionality, or virtual goods.

Pay-per-ReservationPay-per-Reservation is a business model by which a service is paid for from the moment it is provisioned and until it is de-provisioned.

Pay-per-UsePay-per-Use is a business model by which the service is paid for the amount of time the service has been used for.

Subscription-Based ChargingSubscription-Based Charging is a business model by which a fee for services provided is paid for on an agreed regular time period e.g. weekly, monthly, or yearly.

Consumption-Based ChargingConsumption-Based Charging is a business model by which actual consumption of service is measured and charged for.

Per License / Per UserPer License / Per User is a business model by which each user of the service is charged a pre-defi ned fee. Different user profi les may be charged a different fee.

PROCUREMENT OF CLOUD-BASED SERVICESCapital Expenditure (CAPEX) spend will be increasingly replaced with Operational Expenditure (OPEX), leading to the following

● IT budgets will reduce

● Moderate portions of IT budgets will be replaced with OPEX

● Less Capital Expenditure (CAPEX) needed

● IT budget holders may feel threatened with loosing budget

● IT budget holders may not be capable of charging for cloud computing services ‘on-demand’

● The business may not want to pay for ‘on-demand’ cloud services

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● Procurement may prefer traditional fi xed-priced over variable pricing

● Procurement may not understand the benefi ts of cloud computing and variable based pricing

● Management may prefer traditional fi xed-priced over variable pricing

● Management may not understand the benefi ts of cloud computing and variable based pricing

CAPEX spend is replaced with OPEX

An important measure is will the new OPEX spend actually be less than the traditional CAPEX spend?

To know this calculate the total service cost using both a CAPEX and an OPEX model over the known lifetime of the service and see which one provides the best cost case.

For the CAPEX model ALL current and future costs must be calculated. This includes labour costs, IT upgrades, and maintenance etc.

Dealing with the CAPEX to OPEX shift requires management of demand from both supplier and provider sides including procurement.

Improved forecasting and demand management is needed. Procurement needs to understand the potential benefi ts of variable price over fi xed price. Do not increase subscriptions without having appropriate controls to reduce subscriptions when they are no longer needed. Identify if the transition and transformation costs associated with adopting cloud computing and cloud based services outweigh the costs saved and benefi ts gained from migrating to the cloud

Attitudes, behaviour, and cultural changes will be required within the organization.

The purchasing and procurement departments are going to have to be educated in cloud computing and cloud based services in order to understand:

1. The benefi ts in cloud adoption

2. The scenarios where cloud is not a right fi t from a purchasing perspective

3. The fundamental difference in moving from budgets to fl exible budgets based on usage

CLOUD SERVICE CHARGINGFor cloud computing and cloud based services to be really considered analogous to utility computing, cloud computing providers need to be able to bill for services on a pay-per-use basis.

Cloud ProviderCan the cloud provider actually produce a pay-per-use bill for all the IaaS, PaaS and SaaS usage by a consumer?

This is not as easy as it seems especially if external cloud providers cannot produce a breakdown to a pay-per-use level.

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Course Book | Professional Cloud Service Manager | Cloud Service Economics


Cloud ConsumerJust as with a utility bill, a cloud consumer will expect a bill with their usage clearly shown and the costs calculated against their usage. This can get complex when an organization uses a lot of cloud providers and different cloud service models i.e. IaaS, PaaS and SaaS.

Service charging must consider the following: ● Is there an adequate billing system in place?

● Can the billing system charge on a ‘per-unit consumed’ basis?

● Does the billing system cover for hybrid IT and hybrid cloud scenarios?

● Can a cloud provider separate unit-usage and billing information in a multi-tenanted environment?

● Billing and charging in a Hybrid IT model which relies on budgets to control costs

Cloud Service ChargingThere are various IaaS, PaaS, and SaaS price considerations which should be identifi ed and understood.

Diffi culties with Benchmarking PricesIn certain circumstances it can be diffi cult to accurately benchmark and evaluate cloud pricing between different cloud service providers.

For example, the same SaaS offering may be priced differently by SaaS providers.

This can be intentional to stop a “like-for-like” price analysis by customer and consumers.

MODULE SUMMARYIn this module, you learnt to:

● Summarize key factors that contribute to the cost of cloud based services.

● Discuss specifi c fi nancial aspects and considerations applicable to cloud services.

● Outline the various pricing models for cloud services.

● Examine the challenges with purchasing cloud based services.

● Discover how OPEX is replacing CAPEX and how to deal with this paradigm shift.

● Analyze different cloud service charging methods.

● Diagram a Hybrid IT cost model. Sample

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cloud service manager course book

Documents

cloud service design

cloud service strategy

cloud service economics

cloud service governance

cloud service management

service management principal

service architect

field of service management