Hybrid ITSMBecause having only one option isnt an option

Jarod Greene, Sr. Research Analyst, Gartner Craig Ledo, Sr. Director Product Marketing, FrontRange Solutions

2012 FrontRange. All rights reserved. Proprietary & Confidential.

Hybrid IT Service Management Because Having Only One Option Isnt An Option
Jarod Greene

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

The Need for New Tools

IT infrastructure and operations management organizations typically replace tools every 5 years. In the last 5 years, the total software revenue for IT operations management tools was $70 billion.

In the next 5 years, IT organizations will spend a forecast estimate of $100 billion.

Evaluate Minisuites of Tools

IT Operations Management Tools
Virtualization and Cloud Management Availability & Performance
Network Fault Monitoring, Network Performance Mgmt., ECA, BLE, APM, Service-Level Reporting, Capacity Planning, BSM SDM, CMDB, Server Provisioning, Network Configuration, Configuration Auditing Workstation Virtualization, HVD, Mobile Device Mgmt., PC App. Streaming, PCCLM, Application Virtualization

Configuration & Provisioning

End-User Mgmt. IT Process Automation (ITPA) IT Service Support Mgmt. Service Portfolio Mgmt. Storage Mgmt.

ITPA Tools, Jobs Scheduling, App. Release Automation, Workload Automation Broker
IT Service Desk, Release Governance, Service Request, ITAM, Self-Service Portal, Change Management IT Service Portfolio, IT Service Catalog, IT Financial Mgmt., Service Billing, Service Request Management Backup/Restore, SAN Fabric, Storage Array, Storage Perform. and Provisioning, Business Continuity, Data Archiving

IT Service Management Challenges

Mobility
BYOD
Always On 24/7 Support Required?

Social Networking
Mass Collaboration Feedback Mechanism Collective Intelligence Expertise Identification

Information
Big Data
Advanced Analytics Context Aware

Cloud Computing
Flexibility in Sourcing Expanded Business Functionality

IT service support has to modernize to account for changes in complexity of IT services and in business expectations.
5

IT Service Support Management Tools

Introducing IT Service Support Management Tools! More focused on IT service support Tier 1 and Tier 2. Tighter integration of functions that correlate with the activities of the broader IT support organization. Leverage a business view of the IT services. Improves root cause isolation, issue resolution, and escalation accuracy. Enhanced emphasis on mobility, social collaboration, and information analytics.

IT Service Desk Tool Evolution

IT Service Support Management Tools Industry Best Practices in Place

IT Service Desk
Looking at Industry Best Practices Basic Ticketing Reactive Culture Formal Processes Tiered Support Consolidation/ Standardization

Day to Day Processes Mature Service SLAs Process Automation Systems Management Tool Integration Trusted Service Provider

Ad-Hoc Processes
Low Customer Sat.

IT Service Desk Tool Evolution

IT Service Support Management Tools Incident, Problem, Change, Release

IT Service Desk
Basic Ticketing Issue Management Asset Repository Incident, Problem, Change Management IT Self Service SLA Management Service Request Management

IT Asset Management

Service View CMDB

Service Catalog IT/Business Value Analytics Mobility Social Collaboration

Reporting
Knowledge DB

Market Segmentation: I&O Maturity

With nearly 500 complete self-assessments (and 500 on at least one dimension), average I&O maturity is 2.25 on a scale of 5
60 50 40

30
20

Level 3 (proactive) is the minimum acceptable goal; otherwise, costs are too high and quality and agility are too low.

10
0
0-Survival 1-Awareness 2-Committed 3-Proactive 4-Service-Aligned 5-Business Partner

People

Process

Technology

Business Mgmt.

Overall I&O Maturity

Time and Effort Greater at 2, 3, and 4

Critical Success Factors: Senior management commitment Persistence and patience Culture of continuous improvement
4 ServiceAligned 5

Business Partnership

Resources and Effort

Staffing perform while transforming

Funding New metrics
3 Proactive

2 1 0 Survival Awareness
10

Committed

Time

ITSSM Tool Value Depends on Maturity

1 Awareness 2 Committed 3 Proactive 4 5

ServiceAligned

Business Partnership

SaaS License Cost Remains Steady

Unused Tool

Unused Tool

Unused Tool

Unused Tool

Service Portfolio Service Catalog Release Asset Configuration Management Change SLA Management Problem Service Request Incident

Service Portfolio Service Catalog Release

Release Asset Configuration Management Change SLA Management Problem Service Request Incident Problem Service Request Incident Configuration Management Change SLA Management Problem Service Request

ITOM Breadth

Asset Configuration Management Change SLA Management Problem Service Request Incident

Incident

Time to Maturity

Calculate the Total Cost of New Software

Software Licenses Additional Software Costs
- Connectors, Admin Licenses, Staging/Testing environments

IT Administration and Maintenance Integrations Upgrades

- Think major hardware and software upgrades every 2-3 years.

Hardware
- Servers, Backup, DR, Networking

People Training Process Re-engineering

Implementation Costs
- The cost of implementation to the cost of software is between .5:1 to 2:1.

Opportunity Costs
Replacement or Exit Costs
- Calculate how soon before this product needs to be replaced.

Cost of Shelfware
Vendor Support and Maintenance
- 18% to 22% of the discounted price.

Vendor Management
- IT and procurement costs

Don't Just Assume SaaS Is Cheaper

SaaS model tools can be 1/4 to 1/2 the cost of a comparable perpetual tool in the first year. However, in subsequent years, the cost of SaaS may actually surpass the perpetual model.
Software Costs
Potential SaaS charges for sandbox and testing environments, storage and reporting. Support and maintenance fees. Potential SaaS licensing increases.

Implementation Costs
SaaS implementations will save 2-8 weeks of implementation costs. SaaS tools have to be configured at a cost comparable to on-premises tools.

Administration Resources
Ongoing administration of SaaS and onpremises tools are comparable. Include administration of infrastructure.

Vendor Management
Additional resources will be needed to manage SaaS vendors.

Upgrade Costs
SaaS tool upgrades still require planning and testing resources. Incorporate the cost of upgrading the onpremises tool every 2-3 years.

Infrastructure Costs
Include cost for servers, databases, storage, networking, DR, staging, etc. Calculate the cost of upgrading this infrastructure hardware.

Break Even Point for Software Licenses

14

SaaS Accelerates Useful Lifecycle

What is the expected useful life timeline for the new service desk tool suite?
Perpetual License Model Capital Budget High Initial Outlay Additional ITSM Tools Available Pay Maintenance & Support Ongoing Customer Responsible for Infrastructure HW and SW Upgrades Average 5-Year Useful Life Cycle Software as a Service Model Operational Budget Low Costs in First Few Years Additional ITSM Tools Included Maintenance & Support Included Vendor Primarily Responsible for Infrastructure HW and SW Upgrades Average 3-Year Contract Term

Work to understand YOUR specific costs of the various models over the life cycle of the tool
15

Recommendations
Determine your IT I&O Maturity Level

Develop a systematic, prioritized road map for continual and long term IT I&O improvement
Make a coordinated ITSD or ITSSM tool decision that relates to your IT I&O Maturity Level. Weigh the advantages and disadvantages of perpetual vs. SaaS when choosing a new tool. Build a 5 Year TCO analysis of perpetual vs. SaaS licensing models.

16

An Overview of FrontRange
Craig Ledo Senior Director, Product Marketing

FrontRange At A Glance
Global leader in Hybrid IT Service Management (ITSM) solutions 20+ years of technology leadership

Company

Product

Only ITSM provider that delivers Service Management solutions with fully integrated Voice Automation and Client Management capabilities on-premise and in the cloud

Customers

HEAT manages millions of service interactions a day for more than 15,000 leading organizations of all sizes around the world

Headquarters

Based in Silicon Valley, CA Offices and partners in 45+ countries worldwide

2012 FrontRange. All rights reserved. Proprietary & Confidential.

18

Sample Customers

2012 FrontRange. All rights reserved. Proprietary & Confidential.

19

HEAT Service Management Platform

2012 FrontRange. All rights reserved. Proprietary & Confidential.

20

HEAT Integrated ITSM Solution

Service Management: Incident Management Request Management Problem Management Change Management Release Management Service Level Management

Client Management:
Software Deployment Software Packaging Process Automation

Compliance Enforcement
OS Deployment & Migration Patch Management Software Updates & Re-visioning IT Audit & Inventory Management Mobile Device Management Server Management License Management Remote Control Virtualization Management

Configuration Management
Knowledge Management Self Service Mobile Field Service

Inventory Discovery
Visualization Mapping Workflow & Voice Automation

2012 FrontRange. All rights reserved. Proprietary & Confidential.

21

HEAT ITSM Process Lifecycle

HEAT Cloud Hybrid

2012 FrontRange. All rights reserved. Proprietary & Confidential.

22

HEAT Solutions for Each Stage of ITSM Maturity

LEVEL 3 - 5: Advanced
Integrated Service & Client Management solutions including: Workflow based platform, Voice Automation, and Desktop and Server Management

VALUE

LEVEL 2: Intermediate
Service & Client Management solutions including: Self Service & Service Catalog, Discovery and Infrastructure Control

LEVEL 1: Basic
Help Desk & Ticket Management solutions built for cloud or on-premise

TIME
2012 FrontRange. All rights reserved. Proprietary & Confidential. 23

The HEAT ITSM Solution Difference

Standardize on single service management solution with fitfor-purpose cloud and on-premise deployment models
Allows for the use of both operating and capital expense budgets (including a hybrid option that leverages both)

FLEXIBLE

ADVANCED

Most advanced ITSM solution in the world with fully integrated voice-enabled capabilities Enhances efficiency and reduces service resolution costs by up to 70%

COMPLETE

End-to-end, integrated client management capabilities enables the standardization of business processes Improves the mean time to repair (MTTR) by up to 75%

2012 FrontRange. All rights reserved. Proprietary & Confidential.

24

Business Value
Maximizes Operational Efficiencies Improves Service Quality and Compliance

Reduces IT Costs

80

95
%

75

80
%

85

70

Reduced service desk call volume by up to 80%

Reduced time spent on application deployment by up to 95%

Reduced downtime due to unplanned or unapproved changes by up to 75%

Reduced total cost of ownership (TCO) costs by up to 70%

Reduced number of status calls received by up to 80%

Reduced troubleshooting efforts by up to 85%

2012 FrontRange. All rights reserved. Proprietary & Confidential.

25

Summary
Next generation solutions must allow for:
Cloud and on-premise deployment models Provide for every stage of ITSM maturity

Bridge the service / client management divide

Allow for deployment outside of traditional IT

Why HEAT from FrontRange?

Global leader in Hybrid ITSM solutions for enterprises of all sizes Only ITSM provider that delivers Service Management with fully integrated Voice Automation and Client Management HEAT is the most flexible, advanced and complete ITSM solution that fits every phase of the ITSM Maturity Model HEAT manages millions of service interactions a day for more than 15,000 leading organizations around the world Our customers deliver world-class service while maximizing operational efficiencies with reduced cost and complexity
2012 FrontRange. All rights reserved. Proprietary & Confidential. 26

An Overview of FrontRange

2012 FrontRange. All rights reserved. Proprietary & Confidential.

27

For more information: Visit Us at: www.frontragne.com.

2012 FrontRange. All rights reserved. Proprietary & Confidential.

28