Effective Service Management In An Uncertain Economy

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Effective Service Management in anuncertain economyConsolidate Software Management, DataCenter Automation & Asset ManagementDivyesh VaidyaSenior Product Manager, IBM Tivoli Automationdvaidya@us.ibm.com 2009 IBM Corporation

2In this smarter world, we need our infrastructure topropel us forward, not hold us backInfrastructure that is instrumented, interconnected and intelligentInfrastructure that brings together business and IT to create frastructure ProductionInfrastructure TechnologyInfrastructure CommunicationsInfrastructure We need a dynamic infrastructure.Page 2

3Page 3

4Tivoli helps organizations deal with economic uncertaintyTheBusinessImperativeReduce costsand risksConsolidateManagementSoftwareImprove operationalmonitoring and cutsoftware licensecosts Eliminate licenseand maintenancecharges fromunderperformingsoftware Reduce data centermanagement laborcost by up to 10% Avoid capitalexpense by up to10%, by improvingutilization of existingdata centerhardwareOptimize assetutilizationIncrease revenueData CenterAutomationReduce labor costsand Improvefinancial controls Reduce labor costsin IT operations byup to 90%, throughautomation ofmanual tasks andworkflows Get more fromexisting data centerservers and avoidcapital expense forbuying new onesby up to 25% Prioritize revenuegenerating projectsand applicationsAssetManagementManage Capital assetcosts Defer new capitalspend by up to50%, by receivingmore value fromexisting assets andextending assetlifespan. Reduce inventorylevels and carryingcosts by up to 30% Reduce softwarelicense and other ITcost by up to 10%,through bettermeasurement andvisibility of usage.Page 4

5Organizations are concerned with reducing cost and at the same timeimproving efficiency and aligning IT to the businessBusiness priorities causing changes to IT programs and project plansPage 5

6Typical challenges and complexity customers face before consolidationto IBM Tivoli monitoring solutionsIssues & Challenges Windows Linux Complex integration between all the pointproducts Unix No consolidated view of the ITInfrastructure *VirtualApplicationsPerformanceMonitoring MainframeLog filemonitoringBusinessService MgmtServer FaultMonitoring Training reqd on all the point products More manual effort needed formaintenance Difficult to accurately pinpoint performanceissues in a composite transaction –reduced availability and difficulty in meetingstringent itoring Limited functionality for proactive warningsand alerts Additional hardware required to install eachpoint product No flexibility in licensing – cannot switchlicenses between different products toadapt to changesEnd-userTransactionMonitoringNetwork e MonitoringPage 6

7Get your ROI in less than 12 months and reduce costs afterconsolidating on Monitoring solutions from IBM WindowsIBM Advantage Linux A consolidated view of the IT Infrastructure No additional maintenance and hardware reqdas all the agents use the same infrastructure Trace the entire transaction path and accuratelypinpoint performance issues in a compositetransaction Get deeper dive diagnostics where needed Increase availability and meet stringent SLAswith proactive warnings, alerts and predictiveanalytics Flexibility in licensing –switch licenses betweendifferent agents to adapt to changes and fullyutilize the investment in IBM solutionsRead IBM Disclaimer(ITIL/COBIT)BusinessService Mgmt *Virtual No additional training reqd for each agent Log filemonitoringApplicationsPerformanceMonitoring A single solution with a common infrastructure Unixshared by all the agents MainframeIT OperationsManagementProcessServer FaultMonitoringAvailability &Performance Mgmt VisualizationServerPerformanceMonitoring Reporting Cross Domain EventConsolidationEnd-User ActivityMonitoring Filtering & CorrelationEnd-userTransactionMonitoringNetwork eMonitoringReduce costs and increase your ROISingle price point can reduce your cost of licensing by as much as 65% on an average Microsoft environmentReduce hardware costs for operations by 10%*Reduce incidents by 12%* and increase availability by 7%*Reducing network downtime by 98%Reduce the amount of labor needed to manage IT by 10%*,- free up labor for new projectsPage 7

8Realize the Benefits of Consolidation of Management SoftwareChallengeMultiple tools currently in place to manage IT events, alerts andmonitors : Can’t redeploy licenses for new projects Labor cost associated with running multiple tools Additional dedicated infrastructureSolution IBM OMNIbus and single IBM Monitoring for all resources hardware, operating systems, custom and off the shelfapplications Single infrastructure manages all monitoring reduced footprint with agentless monitoring options(requires less future hardware purchase) One integrated tool to manage – less training and laborcost Package pricing allows lower cost, immediateredeployment of licenses Through trending and predictive analysis, OMNIbus proactivelymanages events from all monitoring tools – ibm and non ibm –lowering cost and eventsBenefits of consolidated monitoringAverage annual benefit - 23.5 million whichincludes : Saving on average 9.5 million annually, including 482,162 in operations staff costs through improvedefficiency Increasing revenue by an average of 1.7 million or 0.54per subscriber Saving 0.36 per subscriber Improving mean time to repair (MTTR) a device or systemby 54% Reducing capital expenditure (capex) by an average of 1.3 million Consolidating network operations centers (NOCs) intofewer centers, reducing NOC expenses by 70% andresulting in 293,801 average annual savings Shortening the time to deliver new services to market by37%, leading to increased/earlier revenueOver three years IBM Tivoli Netcool customers have enjoyed a totalof over 54 million in discounted benefit. When this benefit iscompared to a three year discounted investment of 7.5 million, thereturn is 625% with a payback period of 5.9 months - IDC StudySource - Profitability and OSS Support: A Return on Investment Analysis of IBM Tivoli Netcool – IDC WhitepaperPage 8

9A major retail company projects 20,004,900 USD as 3 yearcumulative benefitsIt was projected that implementing the proposed solutions (ITM,TPM, SWDist) resulted in 20,004,900 of 3 year cumulativebenefits. Of these projected benefits, 16,399,478 are directbenefits and 3,605,423 are indirect benefitsRead IBM DisclaimerPage 9

10Tivoli helps organizations deal with economic uncertaintyTheBusinessImperativeReduce costsand risksConsolidateManagementSoftwareImprove operationalmonitoring and cutsoftware licensecosts Data CenterAutomationReduce labor costsand Improvefinancial controls Eliminate licenseand maintenancecharges fromunderperformingsoftware Reduce data centermanagement laborcost by up to 10% Avoid capitalexpense by up to10%, by improvingutilization of existingdata centerhardwareOptimize assetutilizationIncrease revenue Reduce labor costsin IT operations byup to 90%, throughautomation ofmanual tasks andworkflowsGet more fromexisting data centerservers and avoidcapital expense forbuying new onesby up to 25%Prioritize revenuegenerating projectsand applicationsAssetManagementManage Capital assetcosts Defer new capitalspend by up to50%, by receivingmore value fromexisting assets andextending assetlifespan. Reduce inventorylevels and carryingcosts by up to 30% Reduce softwarelicense and other ITcost by up to 10%,through bettermeasurement andvisibility of usage.Page 10

11Organizations are implementing virtualization to reduce costsVirtualization Brings Benefits and New Challenges57%Reduce costsSimplify IT infrastructure andadministration48%Increase server utilization48%Increase scalability of infrastructure29%Enhance resilience and reliability25%16%Improve flexibility to business goalsAccelerate Application developmentand deployment15%Improve application performance11%Automate IT operations11%Single view on the IT environmentManage a heterogeneousserver environment10%Challenges What is in my environment? What has changed? What is the utilization of my environment; how do Ioptimize? How do I demonstrate accountability to my applicationowners?9%Source: IBM Systems Directions, 2006“Virtualization without good management is more dangerous than not using virtualization in the firstplace,” –GartnerSource: http://www.gartner.com/it/page.jsp?id 505040Page 11

Typical challenges and complexity customers face beforeautomation in virtual environments1250%40%Issues & Challenges65% Manual provisioning takes a lot of time, is quitecomplex and error prone Additional manual resources needed to manageworkload distribution in virtual environments10% Workload management is also not dynamic Takes time to distribute and plan for workloadsin virtual environments10% Very difficult to handle sudden and unexpectedworkloads Due to lack of dynamic provisioning andworkload management not able to fully utilizethe resources45% Not able to track the usage of resources andhence not able to do chargeback35%20%Page 12

13Maximize ROI and fully realize the benefits of virtualization withAutomation solutions from IBM Tivoli95%90%IBM Advantage Reduce labor costs in IT Operations through automation ofmanual tasks and workflows85% Increase utilization of servers, plan future hardwarepurchases in a more deliberate manner Conduct Demand-driven provisioning and dynamic workloadallocation Chargeback to departments by leveraging accurate usageinformation including virtual, distributed and mainframeenvironmentsTWSTPM80%80% Prioritize revenue generating projects and applicationsReduce costs and increase your ROI95% Reduce asset install times by up to 70%*Reduce hardware purchases by up to 25%*; cost avoidance of serversoftware purchase – up to 25%* through automated workflows andprovisioningReduce usage accounting costs by up to 40%* by leveraging usageinformation so departments can be accurately charged for the resources theyconsume85%90%Read IBM DisclaimerPage 13

14Tivoli helps organizations deal with economic uncertaintyTheBusinessImperativeReduce costsand risksConsolidateManagementSoftwareImprove operationalmonitoring and cutsoftware licensecosts Data CenterAutomationReduce labor costsand Improvefinancial controls Eliminate licenseand maintenancecharges fromunderperformingsoftware Reduce data centermanagement laborcost by up to 10% Avoid capitalexpense by up to10%, by improvingutilization of existingdata centerhardwareOptimize assetutilizationIncrease revenue Reduce labor costsin IT operations byup to 90%, throughautomation ofmanual tasks andworkflowsGet more fromexisting data centerservers and avoidcapital expense forbuying new onesby up to 25%Prioritize revenuegenerating projectsand applicationsAssetManagementManage Capital assetcosts Defer new capitalspend by up to50%, by receivingmore value fromexisting assets andextending assetlifespan. Reduce inventorylevels and carryingcosts by up to 30% Reduce softwarelicense and other ITcost by up to 10%,through bettermeasurement andvisibility of usage.Page 14

Asset Management Improves ROA & Drives Down IT CostsBusiness BenefitSpecific CustomerExample(s)IBM OfferingIT Cost ManagementExtend Useful Life ofCapital Assets &Reduce IT CostsDefer capital expenditures byextending asset lifespan Reduce labor costs by 20%Reduce inventory levels andcarrying costs by 30% BP: Maximo helpedposition BP for world-classefficiency and safety viawork management, stocklogistics, and procurementprocesses. Manage all asset classes: Production,Facilities, Transportation, and IT on onemodern platform. Reduce software cost and mitigate risk Determine LoB product and serviceprofitabilityGovern your Assets Prevent safety and regulatory risk Pinpoint under utilized software Improve compliance managementReduce software budget by5-10% Visibility15State of Oregon: Receivesmillions of dollars of federalassistance each year, due tosatisfying governmentrequirement of IT fundtracking.Gartner’s View of AssetManagement Impact:Reduce material costs:10–50% Warranty recoveries:Up 10-50% Material costs:Reduced 10–50% Labor utilization: Up 10-20% Asset utilization: Up 3-5% Understand cost of delivering IT servicesLean and connected supply chainInformed and collaborative workforceReal-time insight into all physical assetsIBM DisclaimerPage 15

16Realizing the Benefits of Asset ManagementChallenge Maintain more than 15,000 assets Increase control of buildings, roads, and testequipment across 14 million square feetBusiness BenefitsSample Business Case Results from using IBMMaximo Asset Management Millions of dollars in yearly savings through automationand data integration. Mobile technology for real time updates Reduced procurement costs Reactive vs. proactive maintenance Improved decision making Real-time insight into all physical assets: 100% visibility. Streamlined work order tracking and labor reporting Address problems before operations or maintenancecosts are impacted.Solution IBM Maximo Asset Management Improved decision making to ensure “missionready” status of all assets System helped ready base to support expansion Rapid access to all pertinent maintenanceinformation“The IBM and MCFA Building Operations Command Centerplatform gives us complete visibility and control of ouroperation so we can fix problems before they spin out ofcontrol, run at peak efficiency and effectively support ourmissions. This has contributed to millions of dollars insavings.”Harry Greveris, Director of Public Works, Aberdeen ProvingGroundIBMDisclaimerPage 16

IBM can help reduce costs, drive new revenue and optimizeutilization17Reduce costs and risks:IBM Software can help you reduce costs by automating complex tasks andprocesses, and improving operational efficiency. IBM can also help extendasset life and reduce “downtime” risks by managing your assets moreeffectively. By improving and automating identity assurance and accesscontrol, IBM can also help reduce your security and privacy risksIncrease revenue:IBM can help you create and deploy new revenue generating services faster.By integrating your physical, digital and virtual assets, IBM can help youdeliver differentiation to tap into new revenue streams and improve quality ofservice to retain customers in these uncertain times.Optimize asset utilization:IBM can help get more value from your existing investments to defer capitalspend, by improving asset utilization, dynamically routing workloads toavailable resources to eliminate need to buy additional hardware andsoftwarePage 17

18IBM DisclaimerNOTICETHIS INFORMATION IS PROVIDED TO YOU AS AN EXAMPLE OF POTENTIAL BENEFITSWHICH COULD BE OBTAINED THROUGH THE USE OF IBM PRODUCTS. THEY AREPROVIDED FOR ILLUSTRATIVE PURPOSES ONLY. ACTUAL RESULTS ACHIEVED AREDEPENDENT ON A VARIETY OF FACTORS AND MAY VARY SUBSTANTIALLY FROM THOSEDESCRIBED IN THESE MATERIALS. THIS INFORMATION IS PROVIDED WITHNOREPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. IBMDISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OFMERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IBM DOES NOT WARRANTOR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY ORRELIABILITY OF THE EXAMPLE OR THE RESULTS OF THE USE OF THE STATEMENTS OFCOST SAVINGS. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGES, INCLUDINGTHOSE ARISING AS A RESULT OF IBM’S NEGLIGENCE.WHETHER THOSE DAMAGES AREDIRECT, CONSEQUENTIAL, INCIDENTAL, OR SPECIAL, FLOWING FROM YOUR USE OF ORINABILITY TO USE THE COST SAVINGS EXAMPLES OR INFORMATION PROVIDED HEREWITHOR RESULTS OF THE INFORMATION USE EVEN IF IBM HAS BEEN ADVISED OF THEPOSSIBILITY OF SUCH DAMAGES. THE ULTIMATE RESPONSIBILITY FOR ACHIEVING THECALCULATED RESULTS REMAINS WITH YOUPage 18

19Increasing business productivity through better IT services anddecreasing costs are emerging as top prioritiesGartner forecasts that overall IT growth during 2009 will beworse than during 2001, when the Internet investment bubbleburst. IT spending during 2009 will decline by 3.7%- Gartner, IT spending forecast, 2009“In 2009, IT faces the problem of cuttingcosts without affecting the productivity ofbusiness users. Ideally, enterprises will lookat solutions that increase IT ops’productivity, reduce the time needed tocorrect problems, and eliminate wastedtime: This should favor the latest and mostinnovative IT management softwareproducts”Source: Market Overview: The ITManagement Software Market In 2009 Forrester ResearchNegotiating bigger discounts on software license fees, findingbetter tools to manage the business of IT, improving IT operationefficiency through effective solutions and processimplementations, and, finally, looking closely at the return on anyinvestment that is made will be the main drivers of the ITmanagement software market in 2009As the need to control costs and service quality increasesdramatically, IT management solutions have to evolve to meetthese requirements. In particular, they must accelerate the movefrom IT management to business service management (BSM) ForresterPage 19

Thank YouDivyesh Vaidya // dvaidya@us.ibm.com1.512.619.8903 2009 IBM Corporation

Network Performance Monitoring Log file monitoring Server Performance Monitoring Network Fault Monitoring Database Monitoring End-User Activity Monitoring End-user Transaction . Gartner forecasts that overall IT growth during 2009 will be worse than during 2001, when the Internet investment bubble

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