Cloud Management

This is a continuation (well, at least sort of..) to my previous blog text, Cloud Services – the Business perspective.

Like I wrote, Cloud Services have rushed into the markets relatively rapidly and they have been able to fulfill some key expectations, for example in terms of Cost Efficiency, Scalability etc.

But who actually manages Cloud Services? And if Cloud Services are called “Services”, what kind of services are there available and why should anybody care about them?

From IT Services to DIY approach

According to Wikipedia, “Cloud management is the management of cloud computing products and service”.

 

DIY Cloud ManagementFor more than two decades, IT Service Management has been the way where organizations have striven for. Simply because managing the IT Services has not usually been the core business for organizations. IT Service Management is mainstream nowadays and people seem to be quite confident with it. Someone takes care of your problems (Incident Management) and requests (Request Fulfillment) and you can concentrate on doing what you are being paid for.

if Cloud Services are called “Services”, what kind of services are there available

If so, why is it that I keep hearing from several companies offering Cloud Services: “There is this nice&neat User Interface where you can easily start new virtual servers and also ramp them down when you don’t need ’em anymore”.

Self-provisioning, Self-help, Self-this-and-that?

Now that we have finally reached the level where a user does no longer need to solve his/her IT-related problems on his/her own, for some reason Cloud companies are accelerating the pace with providing more and more tools for the user to start/stop virtual servers and handle storage capacity in Cloud environment!

“It’s easy, just like that.. just click this, define this and that and you’re good to go!”

  • Thanks, I’ll give it a try.. but what if
    • I need an L3 connection from my internal network to this cloud environment which lies in a public internet? I’m not even sure what is the correct source IP-address.
    • I’m not quite sure how much more capacity I need for this certain system?
    • There are 2000 users who should be able to access the system in the cloud environment? Who grants accesses for them and takes care of the overall Access Management?
    • I want a comprehensive, formal report in some other form than the one being available. How do I get it?

Doesn’t seem to be so “easy, just like that.. just click this, define this and that and you’re good to go!”

As long as you are using some software you are buying as an SAAS (Software-as-a-Service) model and you don’t need any integration to your other systems, using Cloud is a trivial thing as everything is usually ready-made for you. You only need to start using the Software (as-a-Service). But when it comes down to integrations, it’s totally different story.

Doesn’t seem to be so “easy, just like that.. just click this, define this and that and you’re good to go!”

User-Friendliness?

In my opinion, the problem with lack of User-Friendliness is built into the history of the IT industry: Too often we tend to take a sole technical viewpoint to new things. Yes, we do recognize the pros and benefits behind a new tech, but we often fail to take the end-user’s perspective into account.

The irony is, that for at least some 20-25 years, the IT Industry has been speaking highly for IT Services, and now we are suggesting that for some unknown reason users should start managing the cloud environment more or less themselves?

Too often we tend to take a sole technical viewpoint to new things.

Who needs Cloud Service Management? No, who doesn’t!?

Ok, say, you have a small IT-company with <10 personnel: in your case it might be a good idea to handle the Cloud Computing issues yourselves. For any other company my suggestion is simple: Use your IT Service Provider’s helping hand! Just like TechTargets puts it, A distinguished IT Services provider can use cloud service management and cloud monitoring tools to maximize performance, reduce costs and differentiate their cloud services.

Services

The Cloud Services Management includes a set of services that are already mostly known from traditional IT Service Management:

 

  • Cloud Service Level Agreement
  • Cloud Capacity Management
  • Change Management
  • Configuration Management
  • Incident Management
  • Access Management
  • Reporting (including billing)
  • etc.

 

Quality Service ProvisionIn other words: Cloud Service Management expands the existing ITSM repertoire. It’s not the 7th wonder of the World, but a significant part of the modern IT Services Package. In short: there’s usually no point in provoking customers try managing the Cloud environment themselves. It just doesn’t pay off the effort.

 

 

 

Common Misconceptions of Cloud Services

I was participating the annual Social & Healthcare ICT Conference here in Finland on May this year. There were a large number of phenomenal speeches from heavy-duty ICT Healthcare professionals. But I also happened to hear some basic-level Misconceptions of the Cloud -related issues when speaking with Healthcare professional on the corridors.. To this end I’d like to take the chance to address ’em and provide some corrections. So here we go:

  • Data Centres? We don’t need data centres at all any more because we are using Cloud Services!
  • – Ehm.. what do You think, where’s the actual computing done, and where’s the Storage? Somewhere over the rainbow, in the Stratosphere perhaps?
  • – Seriously speaking, computing, storage services, database operations etc. are still taking place in some physical place and that is a surprise for some people.
  • We are only using Virtual Servers, we don’t need to deal with hardware servers on any level any more.
  • Yeah, right.. At the end of the day also Virtual Servers are running on physical servers and not in an empty space..
  • I can take everything to the Cloud – there’s no need for an on-premise solution whatsoever.
  • Not so fast.. Some of the computing must still happen on-premise. For example Network latency might hinder you from using an autopiloted car and that’s why the AI service must be placed somewhere in the car and not in some Cloud Environment (Data Centre) some ~10000kms away from your car.

I know, it’s so easy to laugh at people’s misunderstandings and misconceptions. Even though I listed those three examples above with a little bit of sarcastic touch on them, I definitely absolutely don’t want to laugh at anyone. Given the way in which Cloud Services are advertised nowadays, it’s not so surprising. Maybe we Service Providers could be more clear in Cloud Services advertising and communications..

 

Pictures are from Pixabay.

Cloud Services – the Business perspective

Cloud Services have rushed into the markets relatively rapidly. It’s only been a little more than 10 years ago when we first learnt about the cloud computing.

Cloud computing – where do we stand today?

Last year
(2016) the Cloud computing revenues jumped 25%, and the year 2016 was the first in which cloud computing started to dominate many IT market segments according to GeekWire’s article. In addition to that, Operator and vendor revenue for six segments of cloud computing reached $148 billion during that period, so it’s safe to say Cloud computing is totally mainstream today.

Operator and vendor revenue for six segments of cloud computing reached $148 billion

We all know the recent history of data centers emerging and customers buying monthly-basis fixed priced data computing volume, in volumes. Some customers even ended up building their own data centers instead of using the IT providers’ data centers.

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 Cloud computing vs. Data Centers

Today there’s an ongoing battle between the Cloud computing vs. Data Centers. I’ve seen many articles addressing the issue, for example Atlantech’s blog has a pretty good, albeit short, comparison between the Private Cloud and Data Center, written by Tom Collins (any relationships between him and the famous cocktail drink are unknown to me! 🙂 )

Cloud Services – the Business perspective

Having said that, I just can’t get over it, that in my opinion most of the above mentioned comparisons seem to lack something. Yes sir/ma’am, you’ve got a number of rows of text explaining the difference between the choices, and features are been unwrapped in tiniest details. But often these comparisons lack the true Business perspective of Cloud computing! Instead of listing the features and differences, one should try to see the world through the customers’, the business’ point of view. And that’s where I’m putting my 20 cents now.

these comparisons lack the true Business perspective of Cloud computing

The business is just so easy: buy low, sell high. Or, produce something (goods, services, whatever) people desperately want or need. The key question is: How can Cloud computing help make me more successful in my business operations?

Business wants answers to the right questions

What the business really needs is for example:

  • Cost efficiency: Business is willing to pay, but only for the time period the business requires, and only the required amount (+ perhaps a little bit more than that, just in case) of services, like computing power, storage, network connections etc.
  • Just in time: Business needs the services right on time! Not two months ahead and most certainly not two weeks, let alone months, too late.
  • Easy buying: transparent pricing, klick-to-buy (limited amount of ready-made choices or _very_ user-friendly configurator tool).
  • Scalability: during the night-time there is might be less usage than during the daytime, and when getting a number of new users to the system, it should be possible scale the platform up very easily.
  • Continual improvement and development: there should be tools available to support the r&d of the system, when necessary.

businessmen-2010021_640

These are only a few key factors that the business is looking after when thinking about Cloud computing. Of course there are other factors as well, like user accessibility, security issues, multi-site data replication and so on.

Oh yes, the recommendations!

Now, I never do this, I have never done that before – but I’m about to do it. Do what? Give recommendation! And guess what? I’m going to recommend the Cloud services of my employer, Fujitsu Ltd! This probably ruins my credibility, but as of today, 2nd of February 2017, I’m confident that Fujitsu’s Enterprise Cloud Service K5 is the best Cloud based solution available in the world! Simple as that.

Hyping up the K5 – seriously

No, I’m not getting paid for advertising my employer’s stuff. I just stand behind my opinion, that the Fujitsu K5 meets all the Business requirements I listed above: thoroughly transparent, hour-based pricing, getting the Cloud computing up’n’ running in a few minutes*, ready-made computing packages that are easy to configure, very good scalability options, supports OpenStack and offers an application execution environment service based on the open source Cloud Foundry.

* Means that if you want to run the K5 Cloud in parallel or as part of your own data center’s internal network, then of course it takes more time than a few minutes, but it’s also up to other actors than the K5 itself.

Imagine what you can do, if you are developing software on open source tools, use PostgreSQL, and would like to pay for only the amount of computing power and storage you really need, for only the time-period you need. In K5 you can find support for your sw development and DevOps, yet there’s support for OpenStack, VMWare and Bare Metal. So it’s fare to say you really got options.

Imagine what you can do

Of course it’s not always possible to do that, as quite many enterprises are using Oracle of Microsoft databases and end up paying for millions of €uros to these bloodsuckers I mean distinguished IT companies yearly. Sometimes it might make sense to start thinking of converting the databases towards more cost efficient db solutions.

It’s about a time to change. Why not?

Personally I have, from time to time, given a thought to why do so many enterprises really pay carriages of money to these distinguished IT companies. I’ve only figured out two reasons:

  • “We have always done that” -> that is of course the most rock solid explanation. Why change anything, ever?
  • “No one has ever got fired for recommending IBM” -> this was the key guideline to all the investment bankers during the ‘70s and ‘80s, and is still occasionally a good emergency fake.

To the end I’d say: take a chance! If not anything else, you might find yourself saving loads of money in terms of licence costs.

Pictures are from Pixabay.

7 ways to improve your Cost Optimization

Why do organizations find Cost Optimization so important right now?

ICT industry is changing rapidly and especially new, small and agile companies are emerging on the market, challenging traditional IT-companies with their new P&S ideas and enthusiasm. Traditional companies have of course been making their own actions but it takes time, for example IBM:

“”The results imply that IBM’s transformation from legacy IT to next-generation, higher-value services is likely to take longer than what consensus has expected,” BI’s Rana wrote in a note.”

That has led to the current situation where traditional IT giants are constantly examining their (ITIL® defined) Service Catalogues for the current offerings but even more their Service Portfolio for new Services and maybe even some Services that have been once already buried.

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Focusing from Cost Cutting to Cost Optimization

While I fully support the idea of going through the Service Catalogue and Service Portfolio, there is always a (moderately big) risk of drowning the child with the bathwater while washing the little toddler so to say. – Meaning that by hunting down the low-value Services one might not be able to spot the pearls and thus part of the future revenue might be gone with the wind for good.

So be careful when doing cost cutting cost optimization.

– Meaning that by hunting down the low-value Services one might not be able to spot the pearls and thus part of the future revenue might be gone with the wind for good.

Like I stated in the beginning, competition on the IT market has tightened a lot in the last, say, 5-7 years. Companies have been cutting their r&d budgets and turning their backs on science. Even though it’s understandable that the costs have to go down if your business goes down, I still want to encourage companies to make cost optimization instead of just single-mindedly cutting costs down. Of course it’s much more easier to instruct departments to cut down costs, say, 20% by the end of the next fiscal year, but by doing this the companies are jeopardizing their future prospects.

I still want to encourage companies to make cost optimization instead of just single-mindedly cutting costs down. 

I know that’s much more easily said than done. So how to approach the issue?

7 ways to improve your Cost Optimization:

  1. Go through your Service Catalogue in-depth to make sure you have a rock solid understanding and information about your current, up-to-date Service Offering.
  1. Go through your Service Portfolio in-depth to make sure you have a rock solid understanding and information about your new Services development.
    • After intense work on examining through the Service Catalogue and Service Portfolio you can take a step forward and carry out the necessary operations with cost optimization: termination of certain (less-than-break even value etc.) Services whenever possible.
    • Bear in mind: while some Services might appear poor on the first sight they might turn out to be essential in order to enable some other Services to run.
  1. Ask new offers from your 3rd party Service Providers and Vendors whenever possible to see if there is something you can save money with.
  1. Pay attention to your fixed costs and seek for saving targets there in the first place.
  1. If you really need to lay off your workforce, do it by all means respectively.
    • Remember that laying off people hurts your reputation as an employer.

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(Don’t do it like this!)

 

  1. Note that it’s the big numbers that count!
    • Don’t use too much energy with chasing costs caused by the pastries your employees have eaten, but focus on stopping the wasting of your raw material. There’s a hilarious story behind this, I’ll write it down here one day.
  1. Even if it was your worst financial situation ever, keep on investing into the future (remember Service Strategy and Service Design) and keep on marketing. Don’t starve yourself to death.
    • If you stop innovating and developing, and stop marketing your Services and Products, you will for sure run your business into bankruptcy. There needs to be certain courage and faith into the future, otherwise you can stop all your activities at once.

But you are actually cutting costs down!?

It’s obvious that also by utilizing the cost optimization approach you may end up lowering your costs – even greatly. But the biggest difference between cost cutting and cost optimization is, that in cost optimization there’s always a reason involved.

I also like to think that when doing cost optimization, you really, truly, optimize your costs. It doesn’t mean you go buy services or products with lowest prices available, but you buy whatever fits best into your business!

the biggest difference between cost cutting and cost optimization is, that in cost optimization there’s always a reason involved.

Watch out for possible pitfalls with the cheapest price

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“Special price! Only for you my Friend!” The sentence might be familiar from Bazaars in the Middle East. There you could be making stellar deals by ending up paying only for 2-3 times as much as the local people do for something very useful.. ..But in general I would be careful when buying Service with the lowest prices – especially if the lowest price is significantly lower than the average price; the Service Provider could be struggling in keeping their head over the SLA-threshold and failing in doing that, so you could get your Service for free – because of the sanctions they pay you. But did you ever really get the Service? Wasn’t there a 48hrs unplanned Service Outage during the weekend two weeks ago?

did you ever really get the Service?

In the worst case you might be out of the business because of your Service Provider’s lower-than-the-low performance. At that point it doesn’t help much to know that you didn’t pay too much for the Service..

My message is: Cost optimization is the word of the day. Make use of it thoroughly. When buying, compare prices carefully and be positive you understand what you are buying and what is included in the fixed price and be wary of falling into possible pitfalls with the cheapest prices. When optimizing costs.. Start with reading the chapter “7 things to improve your Cost Optimization” I wrote for you.

Pictures are from Pixabay.

ITIL® is a Registered Trade Mark of AXELOS Limited.

B2B: Customer satisfaction surveys

B2B: Customer satisfaction surveys

I have been writing about the Customer satisfaction survey regarding the end-user perspective, but how about the ITSM point of view?

Customer satisfactions survey in ITIL®

I like to think Customer satisfaction survey (later on “Css”) as an elementary part of ITIL’s Continual Service Improvement life cycle. Conducting Css’s on a regular basis is considered one of the key activities in Continual Service Improvement (later on “CSI”). Just like any other activity in CSI, also Css’s must be owned by the IT organization. The results of the surveys help IT organization to understand customer satisfaction.

IT Service Management needs all kind of data in order to understand the baseline: where do they stand at the moment? Without information about the current state of the service it’s completely useless to paint the sky with stars pretty much any service level targets or customer satisfaction levels.

One of the most essential things the IT Service Management must carry out is to verify that the customers’ needs are met – and that is where conducting regular Css’s play the key role.

One of the most essential things the IT Service Management must carry out is to verify that the customers’ needs are met – and that is where conducting regular Css’s play the key role.

Customer is always right, right?

Shortly: no. I know saying this is an easy way to stir up emotions, because there are lots of people who tend to think that customer is always right.

 

Customers are ordinary people – regardless who they are and whether the business model is B2B or B2C. Customers are humans and I prefer performing an In-Depth analysis of the Css results instead of just taking a look at the 1-2 key numbers available.

That is also a reason why using Css’s results as measuring the performance of the ITSM department should be carefully considered. In any case, Css’s results must not be the sole indicator when examining the ITSM activities.

That is also a reason why using Css’s results as measuring the performance of the ITSM department should be carefully considered. In any case, Css’s results must not be the sole indicator when examining the ITSM activities.

 

stockvault--businessman-drawing-a-circle-around-people-icons178079I recall a case where certain IT specialist teams were measured by the Css results – and what was even better their monetary bonuses were bound with the result numbers. While other teams performed very well over and over again, there was one team that was always putting in a sub standard performance, thus leading to the situation where they were always left without bonuses. That really seemed unfair from this team’s point of view.

 

Do you know why this one team was always underperforming? Why wasn’t anything done? Why wasn’t the team leader or some specialists changed?

The answer is: Because of the cultural issues.

 

While the other teams were working with people from Western hemisphere, this one “underperforming” team was working with Chinese customers.

 

China Business Review summarizes this:

 

Service 

Chinese buyers have extremely demanding service requirements on issues as diverse as lead time, availability after hours, and technical service. When dealing with Western companies, Chinese businesses feel that they are paying for top quality and expect technical issues to be dealt with quickly and efficiently. Companies that can demonstrate a track record of customer satisfaction in this area will have an advantage.

 

That was especially true in that case: while other teams were getting A’s or B+’s from their customers, this one team only got something like D or C+ at the best. And they never got any bonuses, even though when discussing at the dinner table, Chinese customers seemed to be satisfied with the service after all.

I admit, I haven’t spent my time searching for scientific articles about Chinese cultural behavior in relation to answering to Css’s, but according to my experience and what I’ve seen and heard, Chinese don’t necessarily give you very good Css numbers no matter how good you are. And yes, I’m aware that I’m generalizing now pretty heavily, but like I said, I’m writing from my own experience. Needless to say, this wasn’t written to rail against Chinese, not at all!

I wrote this to demonstrate why one should always take time to look beyond the results and check what really lies there behind the numbers.

I wrote this to demonstrate why one should always take time to look beyond the results and check what really lies there behind the numbers.

Css is everything?

I vaguely remember having read on opinion somewhere on the ITSM boards that one wouldn’t need other metrics than the Css. In my opinion that’s far from truth, because while Css brings valuable data, it’s not so clear-cut a meter:

stockvault-ata-analytics-concept183337Let’s say you run an ITSM team. During the last two years your team’s Css results have been around 3,2 – 3,5 (range 0 to 5). Your customer is moderately happy, but it’s obvious they could be happier. After a steering group meeting with the customer, your CIO sets a new target level in Css: 4,0.

As a number-wise thing to do it’s “easy” to go through the survey results and look beyond the numbers. That’s a start. But what would you answer if I asked for example:

  • How much you can reduce your costs by reaching your new target level 4,0?
  • What’s your estimation; how much more revenue you can achieve from your customer if you reached 4,0 by the end of the beginning fiscal year?
  • etc.

That’s an example of the problematic when dealing with intangible benefits. I suppose almost everybody can agree that higher Css results are better than the low ones, but converting Css results into the revenue numbers on the budget is tricky.

converting Css results into the revenue numbers on the budget is tricky.

What I’m saying is that Css results is one of the absolutely essential KPIs, but don’t get yourself distracted thinking that would suffice. In order to provide world-class ITSM you need other metrics and targets as well.

 

Pictures are from Stockvault web page.

 

ITIL® is a Registered Trade Mark of AXELOS Limited.