ITIL Capacity Management: Much More Than Charts Over Coffee

ITIL Capacity Management: ITIL Capacity Management: Much More Than Charts Over CoffeeMuch More Than Charts Over Coffee

Rich Fronheiser

Metron-Athene, Inc.

Speaker BackgroundSpeaker Background

BS, Mathematics, Juniata College (PA)BS, Mathematics, Juniata College (PA) MBA, University of Wisconsin-Whitewater MBA, University of Wisconsin-Whitewater

(December 2006)(December 2006) ITIL Foundations Certified (2004) and Service ITIL Foundations Certified (2004) and Service

Manager trained (April 2006)Manager trained (April 2006) Capacity Planner/Performance Analyst in Capacity Planner/Performance Analyst in

Utilities, Transportation, and Insurance FieldsUtilities, Transportation, and Insurance Fields Two stints in “vendor-land”, including the last Two stints in “vendor-land”, including the last

3 years with Metron3 years with Metron

Why the Title?Why the Title?

A decade ago, there were few serversA decade ago, there were few servers

Main part of job was to look at charts and find Main part of job was to look at charts and find anomalies in data – very resource, not service anomalies in data – very resource, not service or business focusedor business focused

The day started early, hence lots of coffee was The day started early, hence lots of coffee was involvedinvolved

Agenda…Agenda…

A Brief Introduction to ITIL and ITIL Capacity A Brief Introduction to ITIL and ITIL Capacity ManagementManagement

Discussion of Capacity Management in Discussion of Capacity Management in PracticePractice

Implementing ITIL Capacity ManagementImplementing ITIL Capacity Management• Interfaces to other ITSM processes

ReviewReview

A Brief Introduction to ITILA Brief Introduction to ITILand ITIL Capacity Managementand ITIL Capacity Management

ITIL isITIL is

The IT Infrastructure Library - books & definitionsThe IT Infrastructure Library - books & definitions• Service Support & Service Delivery

• Business Perspective, Infrastructure, Development, Service Management

Good practice for managing ITGood practice for managing IT Basis of BS15000 and moving towards ISO20000Basis of BS15000 and moving towards ISO20000 Developed by UK’s OGC in the 90’sDeveloped by UK’s OGC in the 90’s itSMFitSMF

• The IT Service Management Forum for ITIL users

• Promotes exchange of info & experience

• Europe, North America, Australia, Asia, Africa

ServiceManagement

OGC & ITIL frameworkOGC & ITIL framework

How to Manage Successful Programs

How to Manage Change

Risk Management

PRINCE2and other OGC

books

Planning to Implement Service Management

Applications Management

The Business

Perspective

ICT InfrastructureManagement

Service Delivery

Service Support

Security Management

People

Processes

ProductsP

ract

ice

BusinessInfrastructure

ServiceApplication

ITIL overviewITIL overview

Business ObjectivesBusiness Objectives

IT StrategyIT Strategy

Tactical IT ProcessesTactical IT ProcessesService DeliveryService Delivery

SLM, Management of:SLM, Management of: Finance, Capacity,Finance, Capacity,

Availability, ContinuityAvailability, Continuity

Operational IT ProcessesOperational IT ProcessesService SupportService Support

Service Desk functionService Desk functionIncidents, Problems, Changes,Incidents, Problems, Changes,

Releases, ConfigurationReleases, Configuration

Capacity Management BalanceCapacity Management Balance

Cost Against CapacityCost Against Capacity• Ensuring that processing capacity is cost-justified and also making

the most efficient use of those resources

Supply Against DemandSupply Against Demand• Ensuring the available supply of processing power matches the

demands made by the business, both now and in the future

Service Level AgreementsService Level Agreements

ITIL Capacity Management objectivesITIL Capacity Management objectives

Ensure the right level of IT investmentEnsure the right level of IT investment Identify and resolve bottlenecksIdentify and resolve bottlenecks Evaluate tuning strategiesEvaluate tuning strategies Improve and report/publish performanceImprove and report/publish performance ““Right-size” or “consolidate”Right-size” or “consolidate” Ensure accurate and timely procurementsEnsure accurate and timely procurements Ensure effective service level managementEnsure effective service level management Plan for workload growth, new apps / sitesPlan for workload growth, new apps / sites Avoid performance disastersAvoid performance disasters

ITIL Capacity Management LevelsITIL Capacity Management Levels

Business CMBusiness CMBusiness CMBusiness CM

Service CMService CMService CMService CM

Resource CMResource CMResource CMResource CM

Capacity Capacity PlanPlan

Capacity Capacity PlanPlan

Capacity Capacity ManagementManagement DatabaseDatabase

Capacity Capacity ManagementManagement DatabaseDatabase

IterativeIterative

Activities:Activities:

MonitoringMonitoring

AnalysisAnalysis

TuningTuning

ImplementImplement

IterativeIterative

Activities:Activities:

MonitoringMonitoring

AnalysisAnalysis

TuningTuning

ImplementImplement

DemandDemand

ManagementManagement

DemandDemand

ManagementManagement

ModelingModelingModelingModeling ApplicationApplication

SizingSizing

ApplicationApplication

SizingSizing

Capacity Management sub-processesCapacity Management sub-processes

Business Capacity ManagementBusiness Capacity Management• Ensuring future business requirements for IT services are planned,

and current service provision is business aligned

Service Capacity ManagementService Capacity Management• Management of the performance of live, operational IT application

services

Resource Capacity ManagementResource Capacity Management• Management of the individual components of the IT infrastructure

Capacity Management at the Resource levelCapacity Management at the Resource level

Identify and understand the Capacity and utilization of Identify and understand the Capacity and utilization of each component part of the IT infrastructureeach component part of the IT infrastructure

Recommend optimization of hardware and softwareRecommend optimization of hardware and software Measure and store resource usage at a process levelMeasure and store resource usage at a process level Identify bottlenecks and potential future problemsIdentify bottlenecks and potential future problems Characterize workloads and business driversCharacterize workloads and business drivers Evaluate alternative upgrades to meet workloadsEvaluate alternative upgrades to meet workloads Proactive rather than reactiveProactive rather than reactive No surprises in performance or IT budgets No surprises in performance or IT budgets

Capacity Management at the Service levelCapacity Management at the Service level

Identify and understand the IT servicesIdentify and understand the IT services Assess their use of resourcesAssess their use of resources Identify their working patterns, peaks & troughsIdentify their working patterns, peaks & troughs Ensure that SLA targets are viableEnsure that SLA targets are viable Monitor performance to identify violationsMonitor performance to identify violations Resource data aggregated by applicationResource data aggregated by application Pre-empt difficulties wherever possiblePre-empt difficulties wherever possible Proactive rather than reactiveProactive rather than reactive

Capacity Management at the Business levelCapacity Management at the Business level

Published corporate performance objectivesPublished corporate performance objectives Standard local metrics defining contributionStandard local metrics defining contribution

• Unification of analytical information• Improved managers’ business insight• Greater local accountability via KPIs• Resource data aggregated by application and then weighted

Enterprise framework for measurementEnterprise framework for measurement• Published Reports and exception reports• Automated alarms and interpretation• Interactive Dashboard for alert/drill down• Predicted outcomes across framework

Business agility to adjust as necessaryBusiness agility to adjust as necessary• Strategic modeling to view scenarios• Ensured focus and drive to growth• Effective liaison between IT & Management

Capacity Management ActivitiesCapacity Management Activities

Iterative ActivitiesIterative Activities• Monitoring

• Analysis

• Tuning

• Implementation

Demand ManagementDemand Management ModelingModeling Application SizingApplication Sizing Storage of Capacity Management DataStorage of Capacity Management Data Production of the Capacity PlanProduction of the Capacity Plan

ITIL Capacity Management Inputs and OutputsITIL Capacity Management Inputs and Outputs

InputsInputsInputsInputs OutputsOutputsOutputsOutputs

Sub-ProcessSub-ProcessSub-ProcessSub-Process

Business Capacity Business Capacity ManagementManagement

Business Capacity Business Capacity ManagementManagement

Service Capacity Service Capacity ManagementManagement

Service Capacity Service Capacity ManagementManagement

Resource Capacity Resource Capacity ManagementManagement

Resource Capacity Resource Capacity ManagementManagement

TechnologyTechnology

SLAsSLAs

Business PlansBusiness Plans

OperationsOperations

Budgets…Budgets…

TechnologyTechnology

SLAsSLAs

Business PlansBusiness Plans

OperationsOperations

Budgets…Budgets…

Capacity PlanCapacity Plan

SLA guidelinesSLA guidelines

ThresholdsThresholds

ChargingCharging

Audits…Audits…

Capacity PlanCapacity Plan

SLA guidelinesSLA guidelines

ThresholdsThresholds

ChargingCharging

Audits…Audits…

Capacity Management InputsCapacity Management Inputs

TechnologyTechnology SLAs, SLRs, and Service CatalogueSLAs, SLRs, and Service Catalogue IT Plans and StrategyIT Plans and Strategy Business Requirements and VolumesBusiness Requirements and Volumes Operational SchedulesOperational Schedules Deployment and Development PlansDeployment and Development Plans Forward Schedule of Changes (Change Management)Forward Schedule of Changes (Change Management) Incidents and Problems (Incident Management and Change Management)Incidents and Problems (Incident Management and Change Management) Service ReviewsService Reviews SLA BreachesSLA Breaches Financial PlansFinancial Plans BudgetsBudgets

Capacity Management OutputsCapacity Management Outputs

Capacity PlanCapacity Plan Capacity Management DatabaseCapacity Management Database Baselines and ProfilesBaselines and Profiles Thresholds and AlarmsThresholds and Alarms Capacity Reports (regular, ad-hoc, exception)Capacity Reports (regular, ad-hoc, exception) SLA and SLR recommendationsSLA and SLR recommendations Costing and charging recommendationsCosting and charging recommendations Proactive changes and service improvementsProactive changes and service improvements Revised operational scheduleRevised operational schedule Effectiveness reviewsEffectiveness reviews AuditsAudits

Capacity Management in Practice:Capacity Management in Practice:Utility Company, mid-1990sUtility Company, mid-1990s

Looking Back, A Simpler TimeLooking Back, A Simpler Time

Few distributed servers, even fewer critical apps running on themFew distributed servers, even fewer critical apps running on them• No web-based applications or e-commerce• Most complex work still on mainframe

Many analysts, few systemsMany analysts, few systems• Only dozens of systems, not hundreds or thousands• Many analysts hired to carefully study data from those systems

Capacity planning was Resource-oriented, not Business/Service Capacity planning was Resource-oriented, not Business/Service orientedoriented

Decisions were made based on resource numbers and trending to Decisions were made based on resource numbers and trending to specific utilization figuresspecific utilization figures

Charts over Coffee…Charts over Coffee…

Early morning look at performance graphs with Early morning look at performance graphs with lots of coffeelots of coffee

8AM operations meeting – help-desk tickets 8AM operations meeting – help-desk tickets covered with expected input from capacity covered with expected input from capacity management – purely reactivemanagement – purely reactive

Much of the workday revolved around looking at Much of the workday revolved around looking at charts, drinking coffee, and being purely reactivecharts, drinking coffee, and being purely reactive

Consequences…Consequences…

Decisions to upgrade or purchase hardware were frequently made Decisions to upgrade or purchase hardware were frequently made late, after performance problems started happening late, after performance problems started happening

Little coordination and planning with businessLittle coordination and planning with business

Lack of well-designed iterative processes and tools to support Lack of well-designed iterative processes and tools to support those processes limited the amount of informationthose processes limited the amount of information

Little CM involvement in application sizing yielded poorly sized Little CM involvement in application sizing yielded poorly sized applicationsapplications

Data Center vs. Business UnitsData Center vs. Business Units

Business managers have little knowledge of performance analysis Business managers have little knowledge of performance analysis and capacity planning and capacity planning

Business users understand and relate to data related to the Business users understand and relate to data related to the businessbusiness

• If this application gets busier than 127 orders/minute, we will need to consider server and network upgrades

Performance analysts and capacity planners are more effective Performance analysts and capacity planners are more effective and can get more recommendations accepted if they try to use and can get more recommendations accepted if they try to use business terms whenever possiblebusiness terms whenever possible

Data Center vs. Business UnitsData Center vs. Business Units

Analysts provide highly technical reports using resource Analysts provide highly technical reports using resource consumption numbers and other metrics virtually meaningless to consumption numbers and other metrics virtually meaningless to business unit managementbusiness unit management

• Example: The CPU is 94% busy and we’re doing 200 I/O operations per second!

Rather than challenge cryptic reports, business units would Rather than challenge cryptic reports, business units would frequently let questions go unansweredfrequently let questions go unanswered

Focus was (and still is in many places) on resources, not on Focus was (and still is in many places) on resources, not on services or the business, and certainly not the customer or end-services or the business, and certainly not the customer or end-user experienceuser experience

Capacity Management in Practice:Capacity Management in Practice:Insurance Company, early 2000sInsurance Company, early 2000s

Fast Forward…Fast Forward…

2003 – Over a thousand Unix, Linux, and Windows servers, with 2003 – Over a thousand Unix, Linux, and Windows servers, with about 75% delivering production services, many of those e-about 75% delivering production services, many of those e-Commerce and other web-based servicesCommerce and other web-based services

Many services are distributed across multiple tiers, including the Many services are distributed across multiple tiers, including the mainframe, and many of the applications are complex, web-based mainframe, and many of the applications are complex, web-based applications that require a lot of specialized knowledge to manageapplications that require a lot of specialized knowledge to manage

Number of performance analysts hadn’t really changed – 5 people Number of performance analysts hadn’t really changed – 5 people managing 50 servers in 1997 had to manage 000s in 2003.managing 50 servers in 1997 had to manage 000s in 2003.

How was it done?How was it done?

Automation of as many processes as possible:Automation of as many processes as possible:• Data capture and collection• Processing of data into the CDB• Reporting• Monitoring/Alerting• Workload Characterization• Trending

Business focus and involvementBusiness focus and involvement

Modeling, application sizing, demand managementModeling, application sizing, demand management

Regular capacity plans – Business, Service, and ResourceRegular capacity plans – Business, Service, and Resource

Much of ITIL Capacity Management in placeMuch of ITIL Capacity Management in place

# CMMI

5 Optimised

4 Measured

3 Proactive

2 Reactive

1 Ad hoc

0 Inert

ITSM

bITa

ITSM

Service center

Trouble tickets

Random calls

Nil

ITSM CMMIITSM CMMI

ITILITSM

# CMMI ITSM CapMan Task %

5 Optimized bITa Business level Dashboard 2%CPM

4 Measured ITSM Service level SLAM, Cap Plans 10%

Service Catalogue

3 Proactive Center Resource level CDB, Trends 30%

Web reporting

2 Reactive Tickets Analysis Utilization, uptime 55%

Some event monitoring

1 Ad hoc Help calls Monitor Ad hoc alerts 3%

Ad hoc investigations

ITSM CMMI per app per site per stageITSM CMMI per app per site per stage

Implementing ITIL Capacity ManagementImplementing ITIL Capacity Management

It’s a project….It’s a project….

Identify sponsorIdentify sponsor Identify project teamIdentify project team Identify process ownerIdentify process owner Ensure proper funding availableEnsure proper funding available Determine scope of projectDetermine scope of project Develop mission and visionDevelop mission and vision Determine SMART objectivesDetermine SMART objectives Communication and awareness campaignCommunication and awareness campaign

Gap AnalysisGap Analysis

Necessary to implement ITIL CMNecessary to implement ITIL CM Where are we today?Where are we today?

• People – current responsibility for Capacity Management• Process• Tools – already in use• Current budget• Current requirements by other ITSM processes

Where do we want to be?Where do we want to be?• Improvements that need to be made• Benefits identified• How improvements can be implemented• Project plan – timescales, staffing, costs, activities, outputs

Design the process…Design the process…

Structure of Capacity ManagementStructure of Capacity Management• Centralized vs. distributed

• Resource CM – platform oriented?

• Service CM and Business CM – end to end?

• Tools – in use and needs identified by gap analysis

• Monitors – in use and needs identified by gap analysis

• Capacity Database (CDB)- Centralized, distributed, or hybrid approach?

- Business data, service data, resource data, financial data

• Capacity Plan

• Integration and interface with other ITSM processes

Tools, tools, tools…Tools, tools, tools…

Evaluate, Select, ImplementEvaluate, Select, Implement

• Capacity Database (CDB)

• Modeling tools

• Analysis tools

• Reporting tools

• Statistical packages

• Etc.

Implement the Process…Implement the Process…

Establishing monitoring and the CDBEstablishing monitoring and the CDB Train staffTrain staff

• Install, setup, use monitors

• Analyze information

• Make and implement tuning recommendations

Business Capacity ManagementBusiness Capacity Management• Link resource and service data to SLAs and SLRs

• Plan and produce the capacity plan

Service/Resource Capacity ManagementService/Resource Capacity Management• Tune service/resource performance if necessary

• Implement demand management, if necessary

Design the process…interfaces?Design the process…interfaces?

ITIL Capacity Management should NOT be ITIL Capacity Management should NOT be designed in isolationdesigned in isolation

Consider the other Service Support and Service Consider the other Service Support and Service Delivery processesDelivery processes

What will be providing information to ITIL CM?What will be providing information to ITIL CM? What processes will benefit from ITIL CM?What processes will benefit from ITIL CM?

Close interface with Service Close interface with Service Delivery processes…Delivery processes…

Vital element of planning processVital element of planning process• Financial Management (budgeting, accounting, charging)

• Availability Management (metrics, input to capacity plan)

• IT Service Continuity Management (model ITSCM scenarios)

• Service Level Management (police SLAs, help set SLAs)

Close work with other processes improve all Close work with other processes improve all processes, including Capacity Managementprocesses, including Capacity Management

Close interface with Service Close interface with Service Support, too…Support, too…

ITIL Capacity Management provides support for ITIL Capacity Management provides support for all operational performance and capacity issuesall operational performance and capacity issues

The more the service support processes rely on The more the service support processes rely on capacity management, the better those processes capacity management, the better those processes will be, as wellwill be, as well

Interfaces between ITILInterfaces between ITIL Capacity Capacity Management and Service SupportManagement and Service Support

Incident ManagementIncident Management• PROVIDES – Information regarding incidents regarding capacity and

performance

• RECEIVES – Diagnostic tools to assist with Incident Management

Capacity management keeps Incident Capacity management keeps Incident Management (and Problem Management) Management (and Problem Management) informed via automatic alerts and recording informed via automatic alerts and recording known errorsknown errors

Interfaces between ITILInterfaces between ITIL Capacity Capacity Management and Service SupportManagement and Service Support

Release ManagementRelease Management• Capacity Management can help with release strategy (network

bandwidth considered for a network distribution, for example)

• Capacity audits can be used to delay releases if there is insufficient capacity

Configuration ManagementConfiguration Management• Capacity Database is a subset of the CMDB

• CMDB provides technical, service, utilization, financial, and business data – without this data, Capacity Management cannot function effectively

Interfaces between ITILInterfaces between ITIL Capacity Capacity Management and Service SupportManagement and Service Support

Problem ManagementProblem Management• Specialist support to identify, diagnose, resolve capacity-related

problems

• Supports proactive Problem Management through analysis and identification of trends

Change ManagementChange Management• Represented on Change Advisory Board (CAB) to assess the impact

of changes on capacity

• Additional capacity requirements and recommendations are requests for change (RFCs)

Review…Review…

MetricsMetrics• Utilization of resources and services recorded in CDB?

• Right level of data being captured and recorded?

• SLAs policed and SLM notified of breaches?

• Reports produced at right level and on time?

• Capacity Plan produced and accepted by management?

Critical Success FactorsCritical Success Factors• Accurate forecasts

• Understanding of current and future technology

• Demonstrating cost-effectiveness

• Knowledge of business plans and the ability to incorporate in the Capacity Plan

In summary…In summary…

Many companies are doing a pretty good job of Many companies are doing a pretty good job of ITIL Capacity Management without realizing itITIL Capacity Management without realizing it

A gap analysis will help best align a company’s A gap analysis will help best align a company’s Capacity Management process to ITILCapacity Management process to ITIL

Capacity Management is not done in isolation – Capacity Management is not done in isolation – Capacity Management relies upon other ITSM Capacity Management relies upon other ITSM processes and also is relied upon by those same processes and also is relied upon by those same ITSM processesITSM processes

Ongoing improvement of Capacity Management Ongoing improvement of Capacity Management not only makes CM better, but all of IT and ITSM not only makes CM better, but all of IT and ITSM and the business as welland the business as well