Presentation prepared for the 2014 IAITAM European ACE, Budapest.

1. Building Organizational Success
Bridging the Gap
Fixing the problem of ITSM
and ITAM alignment

2. Building Organizational Success 2
Agenda
• The evolution of ITAM and ITSM
• ITAM’s inconsistent position in IT organisations
• The current evolution of corporate IT
• Challenges with lack of alignment
• How ITAM can engage with today’s ITSM
• Case study

3. Building Organizational Success
How did we get here?
IT Asset Management
• Developed regionally in the
1980s and 1990s
• Frequently driven by regulatory
or tax obligations (e.g. In
France)
• Key sponsor frequently
Finance department.
• Built around procurement
and/or request fulfilment teams
• Asset-niche focused toolset
vendors:
Peregrine, StaffAndLine, etc
IT Service Management
• ITIL emerged from the UK Civil
Service through early-mid
1990s.
• ITSM platorms proliferated in
enterprise, e.g. Remedy
• Maturity path built around
CMDB, with little focus on
asset financials and lifecycle
3

4. Building Organizational Success 4
ITAM’s Business Position
Within IT Service
Management
Other
Within
Finance
Direct report
to CIO/CXO
Source: The ITAM Review survey: “Where Does ITAM Sit In The Business?, Nov 2011
http://www.itassetmanagement.net/2011/11/25/itam-integrated-itsm/

5. Building Organizational Success 5
Where are we today?
• Limited engagement between practitioner
communities
• Separate conferences, trade
groups, publication
• IT under increased demands to show business
benefit and cost effectiveness
• Rapidly evolving IT technology landscape

6. Building Organizational Success 6
Evolving corporate IT
Consumerize
the front-end
Industrialize
the back end
Manage Services

7. Building Organizational Success 7
Key IT Trends Shaping ITAM
1980s to mid 2000s...
• The PC revolution
• Physical devices
• Install-based
licensing
Mid 2000s to
present...
• Virtualization
• Capacity-based
licensing
• Outsourcing
2014...
• Cloud infrastructure
and applications
• Mass mobility &
BYOD
• Usage-based
licensing
• Multi-sourced IT
?
2015-2020
• Hybrid Cloud
• The Internet of Things
• Consumerisation
• IT as a dynamic Service Broker

8. Building Organizational Success 8
The rising cost of IT
$0
$50
$100
$150
$200
$250
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
SERVER
SPENDING
POWER +
COOLING
SERVER
MANAGEMENT
(PHYSICAL)
SERVER
MANAGEMENT
(VIRTUAL)
Source: U.S. and Worldwide Service Shipments and Installed Base, 1996-2011, Dec, 2012, IDC

9. Building Organizational Success 9
Alignment is vital for effective IT
management
• ITSM can’t fully understand the cost of
providing a service without understanding the
assets on which the service depends.
• Asset Management can’t optimise spending
without understanding what services the assets
underpin.

10. Building Organizational Success 10
ITIL version 2 – “Asset”
“Literally, a valuable person or
thing that is ‘owned’”
Assets will often appear on a balance
sheet as items to be set against an
organization’s liabilities.

11. Building Organizational Success 11
ITIL version 3 – “Service Asset”
“Any Capability or Resource of a Service Provider”
The ability of an
Organization, person, Process, A
pplication, Configuration Item
or IT Service to carry out an
Activity. Capabilities are
intangible Assets of an
Organization
A generic term that includes IT
Infrastructure, people, money
or anything else that might help
to deliver an IT Service.
Resources are considered to be
Assets of an Organization

12. Building Organizational Success 12
Aligning with the IT service
blueprint
Service
Options
Infrastructure
Models
Application
Model
Offering

13. Building Organizational Success 13
Aligning with the IT service
blueprint
• Asset information is a
fundamental building block of the
service
Level Assets Cost type Cost
Application Server Bronze Single Amazon Cloud
VM
Opex $25 per
month
Silver 4 private cloud VMs,
8 vCPUs, 16GB RAM
Opex $200 per
month
Gold 4 dedicated servers, 8
CPUs, 24GB RAM
Capex $8000 per
unit

14. Building Organizational Success 14
Without ITAM, the service is not
fully understood
• Purchase or instantiation costs
• Associated contracts
• Software license implications
• Geographical resilience

15. Building Organizational Success 15
Supplier Assets in the
infrastructure
• Many supplier assets may need to come under
Asset Management
– Assets deployed on company site, particularly in
mixed environments
– Supplier assets allocated to business users
– Supplier assets running licensed company software
• At end of contract, need up-to-date view of on-
site supplier assets and their impact.

16. Building Organizational Success
Aligning multi-sourced IT service
provision with Asset data
Line of Business,
partners, customers
CUSTOMERVIEW
Customer
IT, HR, Facilities
Catalog Solution
SUPPLIERVIEW
Service Org Internal Provider
+ + +ITSM Platform
New Assets
instantiated
Existing Assets
allocated
External ITSM Platform
External Provider
+ + ++
Supplier provided Assets
Private
supplier
assets

17. Building Organizational Success 17
Critical to align ITSM and ITAM for full
supplier-service understanding
Detailed, holistic
view of
costs, performance,
trends.
Strategic /
Top-Down
IT Asset
Management
Operational /
Bottom-Up
• Supplier assets
• Software licenses
• Asset contracts
• Warranties, support and
maintenance agreements
• Service costs
Supplier
Management
• Enterprise licenses
• Supply and lease contracts
• Master maintenance and service
agreements
• Customer and vendor obligations
Strategic /
Top-Down
• Mean time between failure
• End user-satisfaction
• SLA performance
IT Service
Management

18. Building Organizational Success 18
“The age of the customer”
• IT is striving to be increasingly customer centric
– a key objective cited by CIOs for 2014
• Customers expect more choice and autonomy
• Cloud services make independent adoption of
IT services much easier
• “Bring your own” culture seen as a significant
productivity driver

19. Building Organizational Success 19
Cloud service sprawl
• Average of 545 cloud
services per company in
large enterprises.
• Does your business have
more cloud services than it
needs?
• 70% feel that a fifth or more
could be consolidated
48%34%
2010 2013
YES
Skyhigh Networks: Cloud Adoption and Risk Report, Q3 2013

20. Building Organizational Success 20
Challenges of Managing Cloud
Services
• Visibility – may need to use unorthodox
discovery techniques such as web log capture
• “Shadow purchasing” outside IT
• Multiple applications doing same tasks
• Business expectations
• The Asset Management function is best
positioned to effect better control

21. Building Organizational Success 21
Case study – the power of
aligning ITAM with ITSM
• The organisation is a large medical research
charity in the UK
• They are directly involved in frontline scientific
research
• Medical research has significant and specialist
IT requirements
• The IT organisation needs to provide excellent
capabilities in a cost-pressured environment

22. Building Organizational Success 22
Case study – the power of
aligning ITAM with ITSM
• A key requirement is Big Data
• This requires specialist equipment
• External cloud is not an option, primarily due to
the volume of data transfer
“The problem we’d have for active data is the
access speed: A single genome is 100Gb.
Imagine downloading that from Google!”

23. Building Organizational Success 23
Case study – the power of
aligning ITAM with ITSM
• They need specialist data storage and retrieval
equipment.
• Data growth is rapid.
• A frequent refresh cycle is expected.
“We buy kit that’ll fit our needs, front-loaded
with three years support costs. After that
time, you’re invariably needing
bigger, better, faster”

24. Building Organizational Success 24
Case study – the power of
aligning ITAM with ITSM
• The organisation spotted an opportunity to
repurpose, rather than dispose of, the specialist
hardware.
“We used the old system for second tier data:
desktop backups, old data”

25. Building Organizational Success 25
Case study – the power of
aligning ITAM with ITSM
• This required good understanding of upcoming
requirements of two very different user groups
• A much cheaper support supplier was found for
the older equipment: Backup does not need
“gold-standard” support.
• Significant savings were made in not purchasing
new equipment for PC backups.

26. Building Organizational Success 26
Case study – the power of
aligning ITAM with ITSM
The result:

27. Building Organizational Success 27
Summary
• IT is increasingly expected to demonstrate cost
effectiveness and value to the business
• There is wide adoption of service orientation
and multi-sourcing
• The range of assets in the organisation is
rapidly broadening
• Without effective alignment of ITSM and
ITAM, it is not possible to give the CIO a
complete picture.

28. Building Organizational Success 28
Asset can align its internal
maturity evolution with ITSM
What is owned?
Where is it?
Who is it assigned to?
How much did we spend on
it?
IT
Focused
Business
Focused
Equipment
Focused
ITAM Maturity
What does it support?
How can we control changes?
How can we discover more?
What is its role in our key
services?
How can we optimize its
use?

29. Building Organizational Success 29
Summary
• IT is increasingly expected to demonstrate cost
effectiveness and value to the business
• There is wide adoption of service orientation
and multi-sourcing
• The range of assets in the organisation is
rapidly broadening
• Without effective alignment of ITSM and
ITAM, it is not possible to give the CIO a
complete picture.

30. Building Organizational Success 30
The Asset Manager is ideally
placed…
• …to understand how the infrastructure supports the
business of IT.
• …to work with Service owners and designers, to
understand how IT assets underpin IT services
• ...to work cross-functionally with ITSM teams, to
identify opportunities that might otherwise be missed
• ...to provide expert consultancy on the commercial and
compliance impact of service design decisions
• …to be a key trusted source of information to the CIO

31. Building Organizational Success 31
Any Questions?
@JonHall_