CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf

7/27/2019 CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf

1/18

VMware IT Benchmarking

for Fact Based ITTransformation

Mahipal Lunia Lunia, VMware, Inc.

Steven Gall, VMware, Inc.

Matthew Stegall, VMware, Inc.

OPS-CIM2034

#vmworldops


2/18

2

Disclaimer

This session may contain product features that are

currently under development.

This session/overview of the new technology represents

no commitment from VMware to deliver these features in

any generally available product.

Features are subject to change, and must not be included in

contracts, purchase orders, or sales agreements of any kind.

Technical feasibi lity and market demand will affect final delivery.

Pricing and packaging for any new technologies or features

discussed or presented have not been determined.


3/18

3

Transparency Planning& Control Optimization& Alignment

VMware ITBM Fact-Based Approach to Run IT Like a Business

Services What services do I offer?

Costs What is the cost of providing those services?

QualityWhat does the business get and how do Imanage tradeoffs?


4/18

4

Broker of IT Services

InternalIT

The New Role of ITBroker of IT Services, Business Partner

IT Broker Decisions

What services at what cost?

Where can costs come out?

Insource or outsource?

Service level tiers or not?

Standard and/or

composite services?

What quality?

Incentives or penalties?

CIO and IT role expanding

From managing technology todelivering internally and externallyprovisioned business services

Providing the right service at the rightprice for competitive advantage

PrivateCloud

ExternalVendors

PublicCloud

Service Leveland Quality

ServicePortfolio

Demand, Costsand Incentives


5/18

5

Visualization

Service Levels

Vendor Accountabili ty

Service

Quality

Management

VMware IT Business Management Domains & CapabilitiesFact-Based Approach to Run IT Like a Business

PPM/PSA Storage IT Monitoring Service Desk CMDB SharePoint, Internal Cost Models,

Apps, Vendor Inv oicesGL, COA &

Expenses

Private

CloudPublicCloud

IT Financial

Management

Costs

Services Planning

IT

Benchmarking

Objective Evidence

Functional Peers Services

Portfolio

Data Collection & Validation

Security

3rd Party Connectors

Data Import/Export

Observation Engine

Scalability

Automat ion Platform

IT Cost Modeling

Analytics


6/18

6

VMware IT Benchmarking Overview

About Triggers

RepeatableCost EffectiveTimelyAutomatedBaseline

Future State

IT TransformationCost OptimizationEfficiencyRightsizingOutsourcing

RestructuringBusiness AlignmentM&A

Results Benefits

ActionableGranularIT DNA PeersLaser FocusApples-to-

apples

UnbiasedTrue CostTrue PerformanceCritical InsightsPotential Savings

Outsource ValueQuality of ITIT InvestmentsBusiness AlignmentGapsStandardizedRepeatableHigh-Value Focus


7/18

7

IT Benchmark Service Comparison

Traditional Benchmarking Process VMware IT Benchmarking Process

ServiceSelection

SubjectiveLacks Apples-to-Apples Comparisons

StandardizedObjectiveApples-to-Apples

DataValidation

Time ConsumingPotentially BiasedManual

EfficientStandardizedAutomated

Data Analysis LaboriousAnalyst-Driven / SubjectivePeers Selected Subjectively by AnalystLack Transparency

EfficientAutomated / ObjectiveScientific Peer Selection on IT DNATransparency Through Granularity

Repeatable Project by Project ProcessCost ProhibitiveResource IntensiveGut Feel Deliverables

Standardized / Repeatable ProcessCost EffectiveAutomatedScientific / Facts Based

CostsConsulting Engagement

Automated often less than 1/3 oftraditional costs

MetricsHigh-LevelLimited NumberLimited Use

GranularOver 3,500 Across 12 TowersActionable

Compare Traditional Analyst-driven IT Benchmark Service

to the VMware IT Online Benchmark Service


8/18

8

VMware IT Benchmark Products*

VMware IT Benchmark Tower

16 Cost towers and 2 Quality towers

Purchased a la carte or in 10 packs

250-400 metrics per Tower

VMware IT Benchmark Starter Kit

30 metrics across 3 cost towers

10 metrics from each tower

VMware IT Benchmark Basic

For SI/Sos

10 Cost towers

100 key high level metrics

All include standard (visual) and extract (.xls) reports

*acquired from iTHC in April 2012


9/18

9

Benchmarking Peer Comparisons

Industry benchmarking

Companies sharing the same industry, irrespective

of technology footprint

Provides insight into competition-driven

prioritization/urgency of potential IT cost-remediation

efforts

Functional benchmarking

Companies sharing a similar technology foot-print

and usage profile, irrespective of industry

Identifies where, how and relative magnitude of cost

saving opportunities

Industry and Functional Benchmarking areBoth Essential Tools In Supporting IT Cost

Rationalization Efforts

Combined, they provide the most complete and

actionable data for IT Cost Reduction Analysis

Distributed Computing

Help Desk

Midrange Server

Wide Area Data

Mainframe

Wireline

Wireless

PBX/VoIP

App lic ation Development

App lic ation Support

Business Unit

End User

Quantitative Towers

Quantitative Towers

Organizational Impacts

Quantitative/Org

Workload,

Complexity,Hardware

,

Software,S

taffing,

SourcingCost

s

Alignment,Satis

faction,

IndirectCo

sts

SCOPE OF SERVICES


10/18

10

95% NA 4.5% EMEA

.5% Other

VMware IT Benchmark Database

> 3500 Data Points/Metrics

Hundreds of unique peers

Percentiles and trendsIndustryand functional peers

Fresh data < 18 months rule

4 Geographies

N. America and EMEA strongest

MNC coverage of Asia and ANZ

21 Industries Banking Conglomerate Consumer Goods/Retail Education Electronics Financial Services GovernmentDoD GovernmentFed

GovernmentState/Local Healthcare Insurance ManufacturingAuto ManufacturingConsumables Manufacturingelectronics ManufacturingEquipment ManufacturingGeneral Oil, Gas, Petro Professional Services Telecommunications Utilities Print/Media


11/18

11

Benchmarking Metrics

PrimaryMetric

Top Level Metrics

Granular / ActionableMetrics

Primary indicator of overallcost performance

High level indicators, by category,of cost and efficiency

Ground level metrics providingclear understanding ofopportunities for improvementand where the enterprisestrengths lie.

Drive

Decisions

Virtualization

Cloud Computing

Outsourcing

Cost Reduction

IT Transformation

Rationalization

Consolidation

Investment

Strategies

Delivers Actionable, Repeatable, Resul ts

IT Becomes Consistent, Transparent, and Strategic !


12/18

12

Benchmark ContentMetrics Sampling

Easy-to-use interface for data collection

Rapidly verifies data integrity, results displayed in minutes

Data can be loaded into ITBM solutions


13/18

13

Why IT Benchmarking

Gain critical insights to help drive ITinvestment strategies

Compare your spend to peers

Discover potential cost savings

Complexity and its impact

Understand trade-offs across costs,

performance, and quality of service

Identi fy strengths, problems,

opportunities

Identi fy strategic alignment gaps

Verify perceived issues

13


14/18

14

VMware IT Benchmark Differentiation

Standard metrics vs. custom metrics

Data covers both Industry and functional peers

Data available on-demand without consult ing project

Data under 18 months old ensuring relevance

Integrated with VMware IT Business Management solut ions

Compare Benchmarks to your metrics in the same dashboard

Run what if analysis and forecasting to see impact

Track execution and savings within ITBM


15/18

15

VMware IT Business Management

Start with transparency of where you are

Measure and demonstrate

Fact based planning and comparison

Actionable strategy with periodic review

Your only solution for a complete

Evidence based approach

Industry and Peer comparisons

Automation of entire ITBM process

Cost, Quality and Risk

Top down and bottoms up validation


16/18

16

Thank You


17/18

FILL OUT

A SURVEY

EVERY COMPLETE SURVEY

IS ENTERED INTO

DRAWING FOR A

$25 VMWARE COMPANY

STORE GIFT CERTIFICATE


18/18

VMware IT Benchmarking

for Fact Based ITTransformation

Mahipal Lunia Lunia, VMware, Inc.

Steven Gall, VMware, Inc.

Matthew Stegall, VMware, Inc.

OPS-CIM2034

#vmworldops

CIM2034-VMware IT Benchmarking for Fact Based IT Transformation_Final_US.pdf

Documents