itil fundamental training
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Case Study:Effective Strategies in Managing SLA Costs
Dr.Thanachart NumnondaBusiness Development Director
Sun Microsystems (Thailand)
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Agenda● Introduction to Sun Microsystems● ITIL● Sun Approach on SLA● Managed Services
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Guided by a Singular Vision:“The Network
is the Computer”
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1995 2000 2005 2010
TIME
Our Vision: The Network Is the Computer
Internet Users
• 1 billion+ people on the Net today• 390 gigabytes of data created every second• 50% new data growth
1.5 Billion
Everyone and everything participates on the network
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Innovation, Choice, Greater Value
Software Sั�ystems
StorageServices
Network.com
Providing the Ultimate in Flexibility and Choice
IT Service Management
IT Service Management = ITSM
ITSM is the use of best practices to manage services that meet customer requirements.
ITSM objectives are :• align IT services with business needs• Improve quality of service• Reduce service costs
ITIL History
19891990
19911992
19931994
19951996
19971998
19992000
20012002
20032004
1989 – publication of first ITIL elements
Early 1990’s – maturity and growth in Europe
Mid 1994’s – ITIL first introduced into SEA
Late 1997’s – ITIL revised and updated
Early 2000’s – Growth and acceptance in SEA
What is ITIL?
• ITIL = IT Infrastructure Library• A best practices framework used to
develop IT processes• Based on the experience of industry
experts worldwide• Consists of a series of books for
delivering quality IT services• Is the de facto standard for IT
service management
What ITIL is not?
• ITIL is not a step-by-step out of the box set of procedures
• ITIL is not intended for use as a single product or standard
• ITIL is not etched in stone! it is evolving
ITIL Mission
“to provide a comprehensive, consistent and coherent set of best practices for IT Service Management processes – promoting a quality approach to achieving business effectiveness and efficiency in the use of information systems”
ITIL Business Perspective
• Evaluate IT costs in business terms
• Map end user requirements to specific service level targets
• Balance service levels with true costs
• Manage problems based on business priority
• Improve communications between IT and business
ITIL Publication
Planning to Implement Service ManagementPlanning to Implement Service Management
The Business The Business PerspectivePerspective
Service Service supportsupport
ServiceServicedeliverydelivery
ICT ICT InfrastructureInfrastructureManagementManagement
Application ManagementApplication Management
SecuritySecurityManagementManagement
Service SupportService Support(Enable IT services(Enable IT services
to be providedto be providedto End Users by theto End Users by the
IT Service Organization)IT Service Organization)
Provideservices
to
Service DeskService Desk(Provide a single point of contact between customers, end users and the IT service provider)
End userEnd user
AvailabilityAvailabilityManagementManagement
(Ensure the (Ensure the Availability,Availability,Reliability,Reliability,Security)Security)
IT Service IT Service ContinuityContinuity
(Minimum service(Minimum serviceprovisionprovision
during disaster)during disaster)
Service Level ManagementService Level Management(Define, negotiate, coordinate, monitor and manage Service Levels)(Define, negotiate, coordinate, monitor and manage Service Levels)
FinancialFinancialManagementManagement
(Accounting,(Accounting,Budgeting,Budgeting,Charging)Charging)
CapacityCapacityManagementManagement
(Ensure IT (Ensure IT resources are resources are available as available as
needed)needed)
Service DeliveryService Delivery(Ensure that IT services are(Ensure that IT services are provided as agreed upon provided as agreed uponbetween the Business andbetween the Business and
the IT Service Organization)the IT Service Organization)
Onbehalf
of BusinessBusiness
Configuration ManagementConfiguration Management(DB of IT components & relationships)(DB of IT components & relationships)
Release ManagementRelease Management(Version control, grouping changes, plan & test to protect live environment)(Version control, grouping changes, plan & test to protect live environment)
Change ManagementChange Management(Ensure IT service component changes meet business needs)(Ensure IT service component changes meet business needs)
Problem ManagementProblem Management(Determine the root cause of disruptions)(Determine the root cause of disruptions)
Incident ManagementIncident Management(Ensure IT services are restored as quickly as possible)(Ensure IT services are restored as quickly as possible)
Process - Service Delivery
AvailabilityAvailabilityManagementManagement
CapacityCapacityManagementManagement
IT Service ContinuityIT Service ContinuityManagementManagement
Service LevelService Level ManagementManagement
Financial Financial Management Management
Ongoing Quality Improvement
Quality heavenQuality heaven
Quality ImprovementQuality Improvement
PlanPlan
DoDo
CheckCheck
ActAct
Documentation StandardDocumentation Standard
Deming CycleDeming Cycle
Service Level Management
Goal
• To maintain and gradually improve business aligned IT service quality through a constant cycle of agreeing, monitoring, reporting and reviewing IT service achievements
Definition
Negotiationprocess
Service LevelRequirement(SLR)
ServiceCatalogue
ServiceLevelAgreements(SLA)
Customer Service LevelManager
Definition
Operational LevelAgreement (OLA)
UnderpinningContracts (UC)
ServiceLevelAgreements(SLA)
Customer
Internal Service Provider External Service Provider
Service Level Management
Level of Expectation
OutstandingOutstandingExceptionalExceptional
ExpectedExpectedGenericGeneric
level of servicelevel of service
Customer expectationCustomer expectation
SLASLA
Activities
• Planning• Implementation• Ongoing Management• Reporting
Activities
• Planning› Scope, objective and Mission statement› Awareness Campaign› Plan monitoring capabilities› Establish initial perceptions› Review or implement UCs and OLAs
Activities
• Implementation› Produce the Service Catalogue› Manage expectations› Pilot (in an easy area)› Establish monitoring capabilities› Review UCs and OLAs› Define reporting and review periods› Publicise the existence of the SLAs› Establish SLA, draft SLA› Choose words carefully (independent QA)› Seek agreement (with the right person!)
Activities
• Ongoing management› Monitoring and reporting (e.g. RAG charts)› Service review meetings› Service Improvement Program (SIP)› Maintain SLA, OLA, and UC
• Reporting
SLM Process
Contract/Contract/NegotiationNegotiation(draft, amend,(draft, amend,conclude)conclude)
DevelopmentDevelopment DeliveryDelivery
identifyidentify
Customer demandCustomer demand
definedefine monitormonitor
reportreport
reviewreview
Service levelService levelAchievementAchievement
Service levelService levelReportReport
Service ImprovementService Improvementprogramprogram
Service levelService levelRequirementRequirement
ServiceServiceCatalogCatalog
SLASLA
OLAOLA
UCUC
SpecSpecSheetSheet
ServiceServiceQuality planQuality plan
Service Level RequirementEmailEmail CalendarCalendar OfficeOffice
Service HoursService Hours 7 x 247 x 24 7 x 247 x 24 7 x 247 x 24
Availability / reliabilityAvailability / reliability Can afford downtime of Can afford downtime of • Half a day Half a day • 2hrs for credit 2hrs for credit
controlcontrol
Can afford downtime Can afford downtime of of •A dayA day
Can afford downtime Can afford downtime of of •A dayA day
Support HoursSupport Hours 7 x 247 x 24
2 hours resolution2 hours resolution7 x 247 x 24
2 hours resolution2 hours resolution7 x 247 x 24
2 hours resolution2 hours resolution
Throughput / Transaction Throughput / Transaction response timeresponse time
Send & receive within 2 Send & receive within 2 minsmins
Don’t careDon’t care Don’t careDon’t care
SecuritySecurity Mail data should be Mail data should be securesecure
ChargingCharging Fix Cost for 5MB per userFix Cost for 5MB per user
All mails should be backup weekly and archive All mails should be backup weekly and archive for 5 year durationfor 5 year duration
Service Reporting and Service Reporting and ReviewingReviewing
Volumes of emailVolumes of email
EmailEmail CalendarCalendar OfficeOffice
Sun Managed Service
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Do You Want to Be Free to Take Your Business to a Remarkable Place?
• Address IT challenges while stayingfocused on strategic initiatives?
• Maintain control of business-criticalsystems with flexible services thatfit your requirements?
• Improve business service levels?
• Extend staff capabilities withouthiring extra staff?
• Reduce IT operating costs?
Would You Like to...
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Understanding and Serving Our CustomersSun Offers Flexible, Yet Holistic Solutions for Your IT Sourcing Needs
• Use predictive management techniques • Ebay: “They (Sun Managed Services) keep the
infrastructure running smoothly so we can be thinking about the next big thing.”
• 24x7 continuous management ofyour operations all year round
• Minimize outages & reduce the threat of financial loss
• Vodafone España: Achieve 99.9% system availability• Choose selective sourcing rather than outsourcing• Hire Sun to manage only what you want managed• National Grid Wireless: Built trust and confidence
with senior management
Retain Control ofIT InfrastructureTo support heterogeneous environment
Maintain ITService ContinuityTo maximize system availability
OptimizeIT InfrastructureTo stay focused on strategic initiatives
Business Drivers Benefits of Sun Managed Services
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Understanding and Serving Our CustomersAdditional Business Drivers that Sun Addresses . . .
Business Drivers Benefits of Sun Managed Services• Meet regulatory and compliance requirements • Protect entire IT environment from security breaches
and leaks using Sun’s ITIL-compliant framework • Chicago Public Schools: Improved security and
firewall protection
• Extend staff and fill gaps with skilled Sun resources • Shorten learning curves with knowledge transfer
from Sun when bringing operations back in-house• Coventry Building Society: Saved 100 staff hours
• Reduce annual operating costs by hundreds of thousands of dollars
• Lower engineering and integration costs• Callidus Software: Passed 50% cost savings to
customers through subscription services
Manage IT Infrastructure CostsTo reduce operating expenses
Address Staff ShortfallsTo extend capabilities without hiring extra staff
ReduceSecurity RisksTo minimize business impacts
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Selectively Sourcing: An Alternative Way to Outsource
• Extend your IT staff with Sun talent
• Maintain a single point of accountability
• Cover heterogeneous, end-to-endoperations of your IT infrastructure
• Minimize business risks withISO 27001 Org Security Certification(2008) combined with ITIL-basedStaff Certification
• Gain efficiencies and reduce costsby leveraging Sun Managed Servicesresources and delivery solutions
You Maintain Flexibility and Control,While Using Sun's Deep Pool of Cross-Functional Talent
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What Can Sun Do for Your Business?
Example Efficiency Gains• 75% server utilization and 99.96% availability for increased efficiency
and availability
• 100 hour per year reduction in staff time
• 77% expansion in available IT service hours
Example Cost Reductions• $1.3 million dollar savings in five years
• 70% reduction in technical support for platform monitoring and management
• $1 million per year savings from new optical networkCustomer Snapshots: http://www.sun.com/customers/index.xml?t=service
Customer Testimonials: http//www.sun.com/customers/testimonials/services.jsp
The Value to Customers of Selectively Sourcing with Sun
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The Overall Sun Services PortfolioInfrastructure Services for the Customer Life Cycle
Build
Support
Transform
Connected and
Integrated
ProfessionalServices
LearningServices
ManagedServices
SupportServices
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Sun MANAGED Services At a Glance
Sun Operations Management
• Sun Onsite Operations Management
• Sun Remote Operations Management
• Combined Onsite & Remote Options
Sun Transformational Services
• Help enable your IT services to:
> Support the business in respondingquickly to competitive changes
> Rapidly deploy new technologies
> Better utilize resources
Adaptable IT Sourcing Approaches
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Rem
ote
Del
iver
yO
nsite
Del
iver
y
Break/Fix Support as Needed Day-to-Day Management Specialized Engagements
Sun Managed Services - A Closer LookUnderstanding the Fundamentals of Our Offering
SupportServices
ProfessionalServices
Processes Tailored toCustomer's Solution
Sun StandardProcesses
MANAGED SERVICES
Sun Remote Operations
Management
Sun OnsiteOperations
Management
SunTransformational
Services
Both Onsite & Remote
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Sun Onsite Operations Management
• Targeting potential areas for improvedservice levels
• Faster time-to-business benefit whenadopting new technology
• Bridge skill gaps and transferknowledge of management of newtechnologies to your IT staff
• Helps operate, manage, and transformwithout adding long-term, fixed coststo the IT budget
• Sets the basis for other cost-effectiveoperational management choices
Customized, Onsite Services to Mitigate Business Risks
Sun’s onsite operations management
services enable efficient, predictable IT services and operations by combining
innovative technology, skilled resources
and proven methodologies
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Onsite Phases and DeliverablesDeliverables• Service Initiation Documents: Project Plan,
Infrastructure Plan, Staff Plan
Phase
1. Service Initiation
2. Assessment
3. Service Definitionand Planning
4. Operations
5. Transition
6. Service Closure
• Assessment Report: Documents customer requirementsand positions client on a service model maturity matrix
• Service Catalog Entries, Service Improvement Plan,Measurement Plan, Transition Plan, Operational Process Plan, Operations Process Manual, Standard Edition iRunBooks
• Summary Reports, On-site Service Management• Re-Assessment Report, On-site TOI Sessions
• Detailed Completion Report, Service Completion Form
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Sun Remote Operations Management
Remote operations managementservices deliver predictive,
adaptable,cost-effective solutions to improve
operational efficiency in heterogeneousIT environments
Remote 24x365 Monitoring and Management of Any Platform
• Adaptable solutions customizedfor your business requirements
• Services extend to all areas of IT,such as the Operating System, Servers, Storage, Network, Database, Applications, and much more
• ITIL-based best practices
• Assigned account managers and engineers
• Operational efficiency ensures fast implementation and response time
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Remote Implementation Phases
Implementation Time Frame is Dependent onScope and Customer
Initiation Phase Build Phase Test andValidation Phase
Operations andSupport Phase
Sun Remote Operations
Solution Goes LiveBuild Validationand Customer
TrainingPhysical Setupof SolutionHandover to
ImplementationTeam
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Comprehensive ExpertiseITIL Framework with a Predictive Approach to Service
HETEROGENEOUS
CAPABILITIES
24x7MONITORING
ENHANCED SERVICES
Networks
Security
Storage
Databases
Applications
Web Servers
Operating Systems
REGULAR REPORTING
WEB ACCESS
AR
EAS
OF
EXPE
RTI
SE Process Disciplines• Incident Mgmt.• Change Mgmt.• Inventory Mgmt.• Problem Mgmt.
Proactive Services• Administrative Mgmt.• Patch Mgmt.• Code Release
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Monitoring Capabilities: Baseline ServiceOur People Make the Difference
Incident Ticketing and Tracking
Event Qualification(Filtering and Classification)
Event Receipt
Event Detection
Incident Notification(15-minute SLA)
Severity 1: immediate action requiredSeverity 2: preventative action required
There’s always someone on the other end of that alert waiting to prevent technical problems before they impact business
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Monitoring Capabilities: The Sun Advantage
PLEASE NOTE: Data points provided reflect average daily totals based on system information from July-August, 2008.
SUPPRESSION METHODDAILY EVENT TOTALS
~6500 Alarms to ControlCenter Reduction of 99.99% from Raw Events~4,500 ControlCenter
De-Duplication/Discards
~197,000 Informational
~5,100 Maintenance Alarms
3.8M NetworkManagement
System
127M EventsSuppressed by
Appliances4M Events (+ 70M Reporting)Data Points to Systems Core (CTS)
131M Raw EventsInbound to Appliances
~209,000 Events Analyzed
~2000 Ticketed Events (of which ~670 are correlated to existing incidents)
Ticketed Events represent ~30% of Actionable Alarms
Sun’s Method of Filtering and Prioritizing Events Reduces “the Noise” by 99%
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Management Capabilities: Robust OptionsFrees up IT Staff to Focus on More Strategic Tasks
Problem Management / Resolution of Incidents
Planning and Support for Change Controls
Proactive and Administrative TasksTrack Inventory of IT Systems
Management of Third-party VendorsPerformance and Availability Reporting
Specialized Areas of Expertise
A Wide-Range of Management Services
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Sun's Global ReachWhen we say anytime, anywhere . . . we really mean it.
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Sun Operations Management
• Flexible payment structures withno up front capital costs
• Improved operational efficiencyof existing infrastructure
• Ability to include secure off-site hostingfor full infrastructure options
• Sun as your single point of accountability
• Focus on core business initiatives whileSun takes care of your day-to-dayoperational needs
Right Mix of Onsite and Remote Management Services
*Innovative leasing options available on request
Sun provides the options to enable our
customers to plan and deliver on their
multi-sourcing strategies with improved
operational efficiencies and increased
service levels
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• Establish efficient, predictableIT services and operations
• Combining expertise, technologiesand proven methodologies
• Help enable your IT services to:
> Support the business in respondingquickly to competitive changes
> Rapidly deploy new technologies
> Better utilize resources
> Ensure predictable and measurableservice levels, with consistent andglobal processes
> Extend your IT staff with expert resources
Sun Transformational Services Turn Your IT into a Strategic Business Advantage
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For Example:• Consolidating your resources
> Reduce IT costs, while deliveringhigher levels of services
• Migrating to virtualization
> Drive cost and complexity out of yourdata center to meet today’s needsand prepare for tomorrow
• Adopting new technologies rapidly
> Maintain IT service continuity withminimal disruption to your business
• Relocating data center
> One-stop solution for relocationand migration needs
Sun Transformational Services Expertise to Help Maintain Flexibility and Control During Change
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Delivery Now and Ready for the Future
LAMPSAMP
Java EnterpriseSystem (JES)
VirtualizedSystems
OpenSource
VolumeServers
IdentityManagement
x64
10Containers
Thinking Ahead for Our Customers’ Challenges
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Why CustomersChoose Sun
ManagedServices
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Callidus On-Demand Chooses Sun
“ The combination of Sun technology and Sun Managed Services has been invaluable. The Sun technology is a very solid base for our business, and the services team has worked as a fully invested partner since the beginning, helping us launch in five months and responding quickly as we innovate and grow. ” — Jeff Saling, Vice President of Callidus OnDemand, Callidus Software
• Focus internal resources on developing software
• Deploy a reliable technology platform to add value and reduce costs
• Eliminate the need to re-architect the solution for use in a subscription environment
Challenge
• Callidus relied on Sun services and technologies to successfully bring a subscription software solution to market.
Solution
• Achieved 99.97 percent solution availability and 75 percent server utilization
• Launched new subscription business in five months
• Grew from 0 to 25,000 subscribers in 18 months
• Passed 50 percent cost savings to customers through subscription services
Results
Industry:Software
Sun Products and Services:Sun Managed Operations
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Vodafone Espana Chooses Sun
“Sun Managed Services not only provide us with high quality service, but they have also enabled us to optimize system performance and increase the return on our investment in technology. ”
— Miguel Angel Vázquez, Director of Systems Management and Implementation, Vodafone España
• Deliver reliable, high-quality mobile services
• Assure availability of critical applications and data
• Reduce operating costs
• Maximize IT productivity
Challenge
• Vodafone España engaged Sun Managed Services for remote monitoring and management of more than 400 critical application and database servers
Solution
• 99.8% average system availability
• 51% reduction in incidents reported
• 36% reduction in Operational Risk Index (ORI)
• 70% reduction in IT staff hours for platform monitoring and management
Results
Industry:Communications
Sun Products and Services:Sun Managed Services, Sun Learning Services, Sun Professional Services
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Coventry Building Society Chooses Sun
• Keep Internet, Core Banking and Automatic Teller Machine (ATM) services available 24x7
• Address technical issues rapidly to minimize downtime
• Identify root causes of technical problems
Challenge
• Management and monitoring of critical systems supporting Coventry’s core business, rapid technical issue remediation, root cause analysis 24x7
Solution
• Saved 100 staff hours for out-of-hours patching of critical servers
• Reduced downtime related to system failures
• Proactively prevented system failures through root-cause analysis of performance issues
Results
“Sun Managed Operations Services provides us with the round-the-clock alerts and technical support expertise we needto put our members first and deliver exceptional service. The out-of-hours patching service provided bySun Managed Operations saves us 100 staff hours per year.”
- Karen Humphrey, Technical Support Team Lead, Coventry Building Society
Industry:Financial Services
Sun Products and Services:Sun Managed Operations
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Sun Remote Operations Management
Did You Know Sun Supports 400+ Technologies?AREAS OF SUN EXPERTISE SAMPLE SUPPORTED TECHNOLOGIES
Operating SystemsNetworking
Security
Storage
Databases
Applications
Web ServersOrg Certifications
- ISO 27001 Security Certified in Americas, Europe, & Asia - ITIL Certified Staff
TCP/IP
VPN
PIX
LDAP
IIS
Content Switching
WAN
LAN
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When IT and Business Goals Are in Balance, Remarkable Things Happen ...
• Free-up IT staff so you can focus on strategicbusiness initiatives
• Gain control over your processes using an ITIL-based approach to gain better efficiencies
• Create a flexible operating infrastructure – one that adapts readily to new technologies
• Accomplish day-to-day IT tasks securely and more effectively to ensure that crucial data is protectedand available
• Achieve a balanced ecosystem where IT capabilities and business strategies are aligned and working as one
Thank you
Dr.Thanachart [email protected]