Chapter 9 Transforming IT

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Transforming IT

Upon completion of this module, you should be able to:


• Explain the focus areas of transforming IT
• Describe DevOps and agile methodology

• List the attributes of modern infrastructure

• List the tools for managing the cloud infrastructure

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Key elements of IT transformation

• The key elements of IT transformation are:


• People
• Process
• Technology

Process
People

Technology

Key Elements of IT Transformation

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People
This lesson covers the following topics:
• Cross-functional and collaborative teams

• New roles

• Shift in IT staff skills

• Develop training plans

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People transformation

• Cultural change determines the success of digital transformation.


• The existing IT workforce need change in the following areas:
• Identify skill gaps, and upskill the staff. Various training programs must be
provided for IT staff skill enhancement
• Create cross-functional team that work for a common goal
• Collaborate and communicate in effective ways to meet business objectives
People
• Create roles that perform cloud-related tasks

People Transformation

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Cross-functional team

Brings people from different business units with diverse expertise as a team.
• Tasks are assigned to individual members of the cross-functional team.
• Increases the level of creativity

• Fosters a self-directed and multi-tasking environment Finance Stakeholder

Production Operations

Development

Finance Development

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Collaboration and communication
• Collaboration and communication are key for efficient functioning of the diverse teams.
• Tools are required to achieve good collaboration and communication

IT manager
Change management/ Change
ITIL tools tickets

Release
Build, test, deploy, Orchestrate and
manager Collaboration and
provision automation
communication tools deploy

DevOps Planners and Synchronize


team organizers data

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New roles

Service operations
Service manager Service account manager Cloud architect
manager
• Key interface between • Supports service • Creates detailed designs • Streamlines service
clients and IT staff managers in service for the cloud delivery and execution
planning, development, infrastructure
and deployment • Coordinates with
• Understands consumers’
• Provide architectural architecture team to
needs and industry • Communicate service oversight over individual define technology
trends offerings domains roadmaps and ensure
SLOs are met
• Ensures that IT delivers • Participate in service • Create a multiyear
cost-competitive definition roadmap for cloud • Monitor and measure
services platform success of the service

• Manages consumers’
expectations of product
offerings

In addition to the above other roles may be created as required by the cloud service provider

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Shift in IT staff skills

Infrastructure architecture skills

New IT skills focus on next-generation Agile development skills


applications, service requirements, and
collaboration across cloud environment. System administration skills

New IT skills promote involvement in the Finance skills


development, marketing, delivery, and
support of standardized service offerings. Service management skills

Marketing and communication skills

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Develop Training Plans
Roles Training offerings

Introducing Cloud and IT as a Service


Business Leaders IT Transformation Workshop
for Business Transformation

Business Leaders IT Transformation Workshop


Cloud and IT as a Service for
Business Transformation
and Managers

Architects IT as a Service Planning and Virtualized Data Center and Cloud


Design Infrastructure Planning and Design
and
Designers Modern Data Center DevOps: What, Why, and How

All
Cloud Infrastructure and Services Information Storage and
IT Professionals Management

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Process
This lesson covers the following topics:
• Aligning process to technology to meet business objectives

• Automation through the DevOps and Agile methodologies

• Financial transparency

• Chargeback and showback

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Aligning process to meet business objective

• Transform the processes in IT to meet the cloud adoption and IT


transformation

• Automate the process from end-to-end

• Automation reduces the following:


• Service provisioning time
• Improves productivity of developers
• Reduces human errors

• Implement the DevOps methodology for faster and reliable


application or software delivery
Continuous process
• Quality of services and products is improved with adoption of improvement
continuous process improvement

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ITIL framework for service management
Key processes for an initial IT service IT operations
management function

center Supplier management Application management function

Service catalog management Knowledge management Technical management function

Information security management Change evaluation Request fulfillment

Business relationship
IT service continuity management Service validation and testing Event management
management
Strategy management for IT
Capacity management Transition planning and support Access management
Services
Release and deployment
Demand management Availability management Problem management
management
Service asset and
Service portfolio management Service level management Incident management
configuration management
Financial management for IT
Design coordination Change management Service desk function
services

Service strategy Service design Service transition Service operation

Continual service improvement

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DevOps and agile methods
• Agile is an iterative and incremental software
development methods.

• Using DevOps in cloud provides benefits such as:


• Faster application development and delivery DevOps Methodology
• Implement user demands quickly
• Reduced cost for development, development, testing, and
operations

• Software developers respond quickly to business


needs in near real time with DevOps

• Centralized governance and control of the DevOps


process

Agile Methodology

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DevOps and automation

1. Code
• Automate builds
• Automate unit tests

2. Integrate
• Automate integration test

3. Release
• Automate all other tests

4. Deploy
• Automate deployment

5. Operate
• Automate monitoring
• Automate administration

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Financial transparency: Process

Service costing Pricing analysis Metering/invoicing

1 2 3 4 5 6 7 8
Funds
Define Determine Measure Invoice transfer
Allocate all Derive unit Determine
services unit service business from
costs costs Unit prices
categories drivers consumption units LOB
to IT

Choose Include fixed For costs and Divide Prices should For each Create Set up
services and variable prices in service costs reflect service monthly mechanism
that align costs aligned each service by service corporate and map to invoices for each
to industry to specific category unit driver goals appropriate for fund
offerings services service business transfer
unit drivers units for
each service

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Chargeback and showback

Chargeback and Showback are the mechanisms used by IT departments to report and/or bill the
costs associated with each business unit’s (BU) usage.

Chargeback Showback
Customers are charged for services Customers are shown pricing for
they use services they use

Differs from project-by-project charges Helps with planning or cost-awareness

Integrates with financial/accounting Does not require integration with


systems financial/accounting systems

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Chargeback models
Model Benefits Tradeoffs

Factoring resource consumption can be complex.


Pay-as-you-go Can start small with minimal cost
Base cost is bare-bones and added options

Operational cost is amortized across a subscription period Heavy service usage by one LOB over other may not
Subscription by time
and divided between all service consumers incur penalties

Subscription by peak Clear cost justification – shows when consumers exceed base Sparse peaks for one LOB/consumer can incur lower
usage level resources costs regardless of average load

Fixed cost Easier to manage financially with a predetermined, Paying for unused or under utilized resources
Prepay reoccurring billing cycle Can use dedicated or shared resources

Easy to implement – track user authentication Ignores system load – users can have heavy demands
User-based
Clear cost justification on systems without incurring costs

Other chargeback models may also be created and provided by the cloud service provider according to upcoming new requirements.

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Technology
This lesson covers the following topics:
• Technology transformation

• Tools required for building and managing cloud


• Cloud management
• Automation and orchestration
• Monitoring and alerting
• Cost management
• Collaboration

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Technology transformation

Core attributes of modern infrastructure

Reduce costs
Flash
Consistent and predictable performance

Scale as you grow


Scale-out
Manage with fewer resources

Automate provisioning and business agility


Software-defined
Programmable data services

Policy-driven service delivery


Technology transformation Cloud-enabled
Data and application mobility

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Converged and hyper-converged infrastructure

• Converged Infrastructure
• Preintegrated, pre-tested, and pre-validated IT infrastructure package that includes compute,
storage, network, and virtualization components

• Hyper-Converged Infrastructure
• Software-defined infrastructure system that tightly integrates compute, storage, network,
virtualization, and management resources on a single system

Best-of-breed Converged Hyper-converged


infrastructure infrastructure infrastructure

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Tools for building and managing cloud

• Tools facilitate efficient and reliable operation of the cloud services.


• Ensures availability of the cloud infrastructure and applications
• Makes sure the SLAs are met through monitoring, alerting and remediation actions

• Some tools required for managing cloud may be categorized as:


• Cloud management
• Automation and orchestration
• Monitoring and alerting
• Cost management
• Collaboration and communication

• Care must be taken to select the tools in different categories to align with infrastructure,
applications, and operating model suitable for the business.

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Cloud tools

Cloud Automation and Monitoring and Cost


Orchestration Collaboration
Management Alerting Management

• Manages • Automates tasks, • Monitors and • Manages usage • Brings people


resources such IT processes, provide alerts for cost of resources closer in real
as compute, and manages IT resources used • Example time to work on
storage, and environment • Example • Cloudability projects
Network • Example • Amazon • Example
• ParkMyCloud
• Example • Chef CloudWatch • Slack
• VMware
• OpenStack • Puppet • Dynatrace • Asana
vRealize
• RightScale • Ansible • AppDynamics Business for • Github
• VMware • VMware • Rackspace Cloud • Trello
vRealize Suite vRealize Monitoring • CloudCheckr
Automation

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Case study: A Rental Service Company

Challenges
• Aging infrastructure was hampering the company's
ability to grow
• IT was consumed with tweaking infrastructure to
ensure adequate performance and scalability “Getting VxRail up and running in a
couple hours was tremendous. It was
Solution a huge win for us.”
• All-flash Dell EMC VxRail Appliance, VMware
Horizon VDI, VMware NSX, VMware vRealize – Senior Director of Technical Operations
Rental
Service Company
Benefits
• Reduced administrative management overhead
• Cut deployment time from weeks to hours
• Reclaimed storage space, easing pressure on power
and cooling costs

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Customer success story: Columbia sportswear

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Summary
Key points covered in this module:
• Areas of transforming IT
• DevOps and Agile methodology

• Attributes of modern infrastructure

• Tools for managing the cloud infrastructure

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Check your knowledge

What brings in people from different business units having expertise in different areas to work together to
achieve a common goal?

Automation Training

New roles Cross-functional team

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Check your knowledge

When implementing an initial IT service center using ITIL framework. In service strategy stage which
process needs to be considered for automation?

Knowledge management Business relationship management

Information security management Problem management

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Check your knowledge

Which benefit is provided in subscription by peak usage chargeback model?

Easier to manage financially with a


Easy to implement – track user authentication
predetermined, reoccurring billing cycle

Clear cost justification Can start small with minimal cost

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Check your knowledge

Which attribute of modern infrastructure provide the benefit of automated provisioning and business
agility?

Software-defined Scale-up

Scale-out Flash

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