MANAGED SERVICES
Rajiv Perera 01.08.2010 VCU.FTEMS
MANAGED SERVICES? ‣ Using a vendor provided service and/or process ‣ Outsourcing technology and processes to a 3rd
party/vendor ‣ Services traditionally provided by internal I.T.,
now done by an external vendor ‣ Nothing new! Companies such as IBM and EDS
have provided managed services for the years
ADOPTION ‣
Application support
Late 1990s
‣
Application development
Early 2000s
‣
Infrastructure
Mid 2000s
‣
Security
Late 2000s
‣
Management/Strategy
Late 2000s
Can ALL services and I.T. fũnctions be oũtsoũrced? ...YES
WHAT CAN BE MANAGED? Desktops/Laptops Management
patch mgmt., s/w distro, backup, etc
Server Management
patch mgmt., monitoring, backup, etc.
Help Desk
issue resolution, triage
eMail (& eMail continuity)
externally hosted, Google Apps, etc
Printers & Print Services
proactive support, management, issue resolution
Data Center
co-location, cloud services
Telephones/Telephony
externally hosted and/or supported
Networks (WAN, LAN)
externally managed, monitored, & supported
WAN Acceleration (Dedup/Backup)
externally managed, monitored, & supported
Imaging / Document Management
externally hosted, managed
Virtual Servers & Disk Space
cloud (externally hosted, managed)
Security
externally monitored & supported
Application Development
Outsourced
Core Apps (CRM, ERP, etc)
externally hosted, SaaS
Application integration
externally hosted, cloud
ACCELERATORS ‣
Growth of the internet (remote workers)
‣
Reduction in Bandwidth costs
‣
Technology advancements (virtualization, cloud, etc.)
‣
New, value added service offerings by vendors (value-chain)
VALUE CHAIN 4. Management 3. Integration/Value-added services 2. Support 1. Core product Vendors are moving up the value-chain
CASE STUDY - ISSUE ‣
4,500 FTE, supported by 100 I.T. (45:1)
‣
90% of I.T./Tech in Infrastructure (50:1)
‣
I.T. Role: Enabler (run the shop)
‣
I.T. Value: Minimum impact to revenue generation
CASE STUDY - GOAL ‣
4,500 FTE, supported by 25 I.T. (180:1)
‣
20% of I.T./Techs in Infrastructure (900:1)
‣
I.T. Role: Partner
‣
I.T. Value: Greater impact to bottom-line (revenue growth & productivity) - Increase Productivity per I.T./Tech
REALIGNING I.T. 10%
80%
Grow the buﾌピiness
App. Support Infrastructure
90%
Product Dev. Productivity R&D, BD
Ruﾌハ the shop 20%
CASE STUDY - DESKTOP MGMT. Supported by 14 techs (57:1) Approx. 2,200 labor hrs. per month Time to Answer: Ave. 1 hour Time to Resolve: Ave. 2 days
‣ ‣ ‣ ‣
Supported by 3 techs (266:1) Managed Service: 50 hrs. per month Time to Answer: Ave. less than 30 Sec. Time to resolve: 92% on first call
$350k Annũal cost saving
Managed
‣ ‣ ‣ ‣
Traditional
800 FTE, 14 Locations 2,200 hrs.
480 hrs. 50 hrs. 530 hrs.
DEMAND
THE SCALE CHALLENGE INTERNAL I.T.
People Applications Processing power Resources/Space Risk
?
Move from Fixed Costs to “Predictive” Variable Costs
MANAGING DEMAND ‣
Transition from managing SUPPLY to managing DEMAND - Business creates demand - I.T. is the supplier (limited scale) - I.T. Manages demand & supply - Business creates demand - Vendor is the supplier (scale) - I.T. Manages demand
IMPLEMENTING MGD SERVICES ‣
What is the strategy? (scale, transparency, value)
‣
Define the “end state”
‣
What are the targets/goals (SLA, Costs)
‣
Identify/prioritize the projects
‣
Find a balance
SERVICE LEVELS ‣
Availability?
99.99%
‣
Speed to respond?
Within 30 Sec.
‣
Time to resolve?
95% First Call
‣
Other? Higher SLA, Higher Cost$
COSTS MODELS ‣
Decline in cost of services
‣
Low switching cost (of services)
‣
Pay-as-you-go
‣
Short-term contracts
Life is short! (Perishable goods)
FIND THE BALANCE
‣
What is your core business?
‣
What is your core value?
‣
Why does I.T. matter?
ACCOUNTABILITY ‣
Role of I.T.
‣
Who is accountable?
‣
“Skin In The Game”
‣
The value of good Contracts and Service Level Agreements
BARRIERS ‣
Inability to CHANGE
‣
Attitude towards Outsourcing
‣
Perceived value of I.T.
‣
Security?
WHAT'’S NEXT?
‣
As an I.T. Professional?
‣
As a I.T. Vendor/Service provider?
‣
As I.T. Management?
PROVIDING VALUE “If you are selling I.T. Services to your business, will they use you?” “Stop looking at IT projects as technology installations and start looking at them as periods of organizational change that (you) have a responsibility to manage!” - Andrew McAfee (Harvard Business Review Nov 2006)