True business transformation cannot be accomplished without significant shifts in people and process. These two tenants create the blueprint for the organizational structure and for the certification and education required at the different stages of Cloud maturity. Within VMware IT, we have an articulation and approach that has fueled our success in driving the journey to Cloud.

With the ability to focus less on infrastructure and more on applications, people in IT are changing how they work within their organizations and with business users. The days of taking 90-180 days to develop an application are over. Today, applications and development are working as a single team, using agile or Scrum methodologies to rapidly deliver functionality in a short timeframe and iterate quickly in order to incrementally build out an application. The new mantra is to get something out there, see how it meets the business need, and refine and iterate quickly to mature and adapt to the business user's requirements.

Managing IT Costs in the Cloud

Trends:

  • IT is assuming the role of “service broker.”
  • IT and business users are teaming up for evaluation, selection and contract negotiation with Cloud Service Providers.
  • IT-as-a-Service facilitates user self-provisioning and service catalogs.
  • Cloud cost management tools deliver deep insight into the fully loaded cost of applications running in production.
  • Pay-per-service shifts cost models, as users pay over time.

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IT Financial Management with VMware IT Business Management Suite (Digital Fuel)

Digital Fuel ITFM Delivers Financial IT Metrics for the Cloud

Summary

The IT organization needed to see the full cost of managing applications at production in the cloud. While the cost of provisioning and implementing new IT services has been relatively easy to quantify, it has been more difficult to understand the true ongoing cost of IT service delivery. VMware sought to bring sophisticated finance functions, such as how to break down costs from multiple standpoints or how to analyze the cost of changing a variable in the service mix, to its own enterprise.

Business Need:

  • In-depth financial metrics for applications management
  • Greater insight into costs, as demanded by Cloud service deliver
  • Better IT understanding of production costs
  • Better engagement with line of business stakeholders supported by clear IT metrics

Solution:

  • A financial system that provided a unified view into the cost of all resources—server, storage, network, software, computers, applications and human capital
  • Multiple views into IT costs — to know per-unit costs for any variable on which metrics were desired
  • Deep cost knowledge for business decisions
  • Opportunity to realize full gains of Cloud with deep insight into cost of service delivery

Benefits:

  • Improved decision support for IT
  • Understanding of fully loaded cost of deploying an application and running it at production
  • Ability to factor in labor costs
  • Understanding of per-user or per-unit costs where needed
  • Ability to employ cost modeling and “what-if” scenarios to see financial impact of IT initiatives, such as performing an upgrade or reconfiguring a business process

Complete Case Study
Related Presentation

IT Architecture Governance for the Cloud

Trends:

  • IT is leveraging the Cloud for “burst” capacity.
  • There is a closer partnerships with business users.
  • Applications are increasingly delivered as SaaS.
  • Service catalogs enable self-service and self-provisioning.
  • IT shifts the emphasis to governance, integration, security and to ensuring business continuity.
  • Vendor relationships are restructuring to work closely with Cloud Service Providers and SaaS.

Effective Architecture Boards:

  • Have a clear set of architectural principles.
  • Ensure broad representation across all stakeholder organizations.
  • Enable representatives to have decision-making authority.
  • Operate with transparency.
  • Work toward federated processes.

Complete Case Study
Related Presentation

Managing the Service Lifecycle in the Cloud

Trends:

  • There is a shift toward an integrated Service Delivery Lifecycle.
  • Management processes for Incidents, Problems, Changes and Releases becomes more seamless.
  • Agile and DevOps approaches accelerate cycles and bridge cultures between applications and operations teams.
  • The role of IT Service Administrator shifts to incorporate SLAs into protocols and decisions.
  • Users become self-sufficient— there is self-provisioning through Service Catalogs.
  • There are federated practices across organizations.
  • IT increases its role as business process consultants with deep domain expertise.

Complete Case Study

Project Management in the Cloud

Trends:

  • IT portfolio to be balanced through oversight of all projects in process.
  • IT guidelines developed and delivered to govern vendor selection, engagement with Cloud Service Providers and software development in the cloud.
  • Internal releases coordinated with those in external clouds to ensure business continuity.
  • Project management methodology developed and delivered to ensure tight coordination between architecture, security and data management teams and standards.
  • Program and portfolio oversight to be provided in support of coherent and secure enterprise application footprint.
  • Time tracking and exit reviews carried out on launched projects.

Complete Case Study
Related Presentation

Vendor Management in the Cloud

Trends:

  • The cloud is changing the strategic sourcing process for business-critical applications.
  • IT governance in strategic sourcing, including SaaS applications, is critical.
  • Negotiating and writing a contract for SaaS services is different than one for on-premise relationships structured around software license agreements.
  • Purchasing services vs. products requires a different set of questions.

Complete Case Study