ITAM 2017-2022

How IT Asset Management is evolving in the Digital Enterprise

+Virtualisation

Virtual machinesNetwork deployable software

Capacity-based licensing

2005-2011

The PC Revolution

Physical machinesPoint installs

Install-based licensing

1985-2005 2015-

+The digital enterprise

Digital ServicesInternet of Things

Hybrid cloudContainerization

2011-2014

+Cloud and mass mobility

Industrial virtualisationMass-mobility and BYOD

Rapid shift to XaaSUsage-based licensing

IT is changing

What is a Digital Service?

IT Service | ti s v s |ʌɪˈ ː ˈ əː ɪnoun

1. A Service provided to one or more Customers by an IT Service Provider. An IT Service is based on the use of Information Technology and supports the Customer's Business Processes. An IT Service is made up from a combination of people, Processes and technology and should be defined in a Service Level Agreement.

Source: ITIL v3 PROVIDER

FOCUSED

"You‘ve got to start with the customer experience and work

back toward the technology - not the other way around.”

Source: Steve JobsCUSTOMER

FOCUSED

“The digital enterprise runs on diverse technologies, from mainframe to mobile, from hybrid cloud to the Internet of Things.

This infrastructure must be open, scalable, stable, agile, cost-effective, and entirely transparent to consumers”

BMC White Paper (2015) - Powering Innovation and Growth with Digital Enterprise Management

Digital Services

New stakeholders

More focus on financials

New devices and components

More shared infrastructure

Some key Asset types underpinning the Digital revolution

Internet of Things Cloud Services & Infrastructure Containerization

https://www.flickr.com/photos/28681973@N00/11140100424/

•

Rise of the Internet of Things

2009 2015 20200

5

10

15

20

25

30

4.9bn

0.9bn

Source: Gartner Predicts 2015: The Internet of Things

25bnNumber of connected things (billion)

Oracle Software Investment Guide

“Oracle’s Forklift”

…is now a reality“Today’s smart forklift includes diagnostics that allow the equipment to signal when it needs to be serviced, speed controls, anti-slip technology that monitors wheel spin and improves traction, collision detection, fork speed optimization,and more…”

Forbes, 16th March 2015

PC basedProprietary componentsHardware differentiated

Mobile basedSmartphone componentsSoftware differentiated

Old vs new

Distinct devices, priced per unit Homogenous devices, priced by feature consumed

Before… Now…

The IoT is a Software revolution

“…to secure additional revenue, manufacturers need to recognize the role that embedded software and applications play in the IoT, and they need to monetize this value”

Gartner - Software Licensing and Entitlement Management Is the Key to Monetizing the Internet of Things (April 2014)

Laurie F.Wurster, Gartner

Software-style licensing comes to hardware

Challenges• Security issues• PCI compliance• HIPAA• Licensing• Software maintenance• Discovery

The Cloud: An IT Asset perspectiveOn-Premise

Servers

Storage

OS

Middleware

Application

IaaS PaaS SaaS

Servers

Storage

OS

Middleware

Application

Servers

Storage

OS

Middleware

Application

Servers

Storage

OS

Middleware

Application

Cloud is usurping traditional datacenters

6am 9am Noon 3pm 6pm

DATABASE SERVER

7am 7pm

REPORTING SERVER

Dedicated instance spun-up for daily reporting job

Additional database capacity at peak customer access time

Evening discovery jobMorning discovery job

Discovery has limitations

The Growth of SaaS

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 20150

200

400

600

800

1000

1200

148 169 211 209 226 259 258 309 313

397457

548 529605

638 665

774841

Consumer Enterprise

Cloud Service Sprawl

Source: SkyHigh Networks

“The groups building the cloud often inadvertently become the asset managers.

People can accidentally take on the role of asset management without intending to”

Anthony Hillier, CTO of CiRBA, in CIO.com, April 2014

+Virtualisation

Virtual machines

2005-2011

The PC Revolution

Physical machines

1985-2005 2015-

+The digital enterprise

Hybrid cloudContainerization

2011-2014

+Cloud and mass mobility

Industrial virtualization

Instance-based licensing

CPU-based licensing

Core-based licensing

“Value unit” licensing

Dynamic capacity licensing ?

Software licensing challenges

APP

APP

APP

APP

APP

APP

APP

APPS APPS APPSAPPS

VIRTUAL MACHINES

HARDWARE HARDWARE

HOST OPERATING SYSTEM HOST OPERATING SYSTEM

CONTAINERS

OS OS OSOS LIBRARIES LIBRARIES

HYPERVISOR DOCKER ENGINE

Containers: the next virtual revolution

Why?

“For one simple reason: You can stick a lot more containers on a single server than you can VMs.

How many more? Try two to three times more!”

Steven J. Vaughan-Nichols,in ZDNet, 2014.

Oracle 11g Enterprise Edition

What’s in that container?

IBM MQ Advanced for Developers

What’s in that container?

MOVE

ADD

DELETE

CHANGE

Instantiate new instance in Private Cloud

Decommission Desktop-as-a-Service instance and cancel

app subscriptions

Purchase more file storage for cloud instance

Relocate server to new Datacenter

Provision and deploy new physical server

Retire user’s PC, and reclaim software licenses

Add bigger hard drive to physical server

Transfer Amazon instance to new Availability Zone

Core ITAM principles still hold

STATIC RAPID

SHAREDCONSUMPTION

INDIVIDUALOWNERSHIP

PUBLIC CLOUD

DEVOPS INSTANCESEND-USER

DEVICES

SAAS SERVICES

PHYSICALSERVERS

VIRTUALSERVERS

IoT COMPONENTS

PRIVATECLOUD

PERIODIC DATA DISCOVERY

SERVICE CONTEXT

PERIODIC DATA DISCOVERY

DEVICE CONTEXT

ACTIVE DATA COLLECTION

SERVICE CONTEXT

ACTIVE DATA COLLECTION

DEVICE CONTEXT

Rapid vs Static, Shared vs Individual

Line of Business,Partners & customers

CU

STOM

ER VIEW

CUSTOMER

IT, HR, Facilities

SERVICEFRONT-END

SUPPLIER

VIEW

+ + + NEWASSETS

EXISTINGASSETS

+ + ++

SUPPLIER PROVIDEDASSETS

PRIVATESUPPLIERASSETS

SERVICE ORG INTERNAL PROVIDER

EXTERNAL PROVIDER

INTERNAL ITSM

PLATFORM

EXTERNAL ITSM

PLATFORM

ITAM at the point of Service Brokerage

Fundamental truth #1

Digital Service Managers can’t fully understand their services without understanding the Assets

on which each service depends.

Fundamental truth #2

IT Asset Managers can’t optimize the organization’s Assets without understanding

the Services they are there to underpin.

Chief Technology Officer• Enable innovative digital

services at the front-line of business.

• Transform the customer experience

• Provide technology basis for innovation and delivery of digital products

• Maximize value of the digital technology stack

Digital Service Owner• Manage the operation and

development of frontline digital services.

• Leverage internal and external asset resources to deliver, run and grow a service.

• Manage the P&L of the digital service.

Chief Marketing Officer• Transform legacy customer

offerings into the digital era.• Drive new digital channels of

income for the business.• Grow revenue and

profitability through digital channels.

Key Executive Roles in the Digitally Transformed Enterprise

ITAM’s key financial perspectiveService Viewpoint (CTO)

Digital Service

Asset cost

Project cost

Service Cost

Labor cost

Etc…

Asset financials

Software Hardware XaaS

Digital Service

Asset cost

Project cost

Service Cost

Labor cost

Etc…

Vendor Management Viewpoint (CFO)Vendor

Spend Trends

Compliance

VendorSpend Trends

Compliance

Asset Viewpoint (ITAM)

What next?• Identify your Digital Services and the business

priorities driving them• Map the Asset landscape, align to services• Differentiate rapid/static, shared/individual…

and manage accordingly.• Make ITAM indispensable