IT Asset Management Optimalisere IT Cost Mads Myrvoll

IT Asset Management Optimalisere IT Cost Mads Myrvoll, 30. juni 2016 mdm@soprasteria. com Delivering Transformation. Together.

Asset Management 2

OVERVIEW 1 Strategic importance of IT Cost Transparency / IT Asset Management 2 Introduction to TBM 3 How to start a TBM journey 4 Recommondations 3

Today’s IT Leadership – What We Hear From Customers Digital First Strategy | Market Expansion | Strategic Acquisitions | Business Agility | Talent Acquisition Business Priorities DELIVER MORE INNOVATION SHOW VALUE TO BUSINESS MANAGE COST & PLAN INVESTMENTS MAKE TECHNOLOGY DECISIONS IT Priorities Infrastructure Modernization | Service Delivery | App Rationalization | Cloud Migration | Vendor Consolidation

TBM is How IT Leaders Manage Their Business Finance ERP Sales CRM HR HRM Marketing RPM IT TBM “TBM shifts focus from tech cost to value for continuous improvement. ”

TBM is How IT Leaders Manage Their Business TECHNOLOGY BUSINESS MANAGEMENT Manage the Business of IT with Data, Analytics & Processes Cost Transparency Planning Showback/ Chargeback Benchmarking Cost Basis Feeds Operational Data Feeds Billing Data Feeds ERP/FINANCE SERVICE MANAGEMENT 3 rd PARTY BILLING GENERAL LEDGER PROJECT MANAGEMENT SERVICE MANAGEMENT ASSET MANAGEMENT Manage the Work & Operation of IT 6 @apptio Business Insights OPERATIONS MANAGEMENT AUTOMATION MONITORING BILLS & INVOICES

How IT Gets Value from TBM UNDERSTAND & Communicate IT Value PLAN efficiently and predictably § Know your infra, labor, projects, § Connect your planned dollars to cloud & vendor cost drivers § Use App TCO to identify the cost of redundant or dated apps § Show cost & consumption in a way the business understands § Provide levers and choices to the business § Shift RTB to CTB IT deliverables OPTIMIZE cost & investment § Drive efficiency by exposing cost of unused capacity § Get instant insight into budget, variance and forecasts § Continually align to changing business priorities § Improve budget owner accountability § Correlate asset TCO, age, and support to justify investment § Assess HW, SW, vendor, labor and cloud alternatives § Right size infrastructure to match application needs § Reduce the effort and time § Find outliers among cost trends and peer benchmarks Where Do You Start? TRANSFORM your IT business § Accelerate your transition to shared services or IT services § Drive cloud adoption § Target workloads to migrate to external cloud providers § Make informed strategic sourcing decisions § Broaden accountability for cost and business alignment

Where do You Need Better Cost Transparency? APPLICATIONS § What is driving the costs of our top 10 apps? § What are project vs. run costs for these apps? § What are cost levers for reducing cost of this app? CLOUD § What is driving the total cost of our cloud use? § How much of which services are we consuming? § Is public cloud use affecting cost variability? IT TOWER § What is driving our run costs? § What’s our cost per GB of Tier 1 storage vs. peers? § Are we trending toward greater cost-efficiency? SPEND § Which costs are within our control? § Where are largest sources of plan variance? § What is driving plan variance? 8 BUSINESS UNITS § What is our investment level per BU? § What does it cost to deliver these apps to this BU? § Where do we spend the most per employee? INFRASTRUCTURE DETAIL § How much is storage driving the cost of this app? § What is cost of large VMs with non-critical apps? § Where do we have infra on “retired” apps? LABOR § What is driving labor costs by role, location? § How are we doing against our staffing plan? § Where are we using our staff? BUSINESS IT FINANCE APPS & INFRA SERVICES § What is our TCO for different compute services? § What is driving the cost of our database service? § How do our Iaa. S costs compare to Amazon’s? PROJECTS VENDORS § What types of vendors are we spending most on? § Are we leveraging preferred providers? § How are we doing against spend targets? IT EXECS § How much are we investing for innovation? § How are we performing against project KPIs? § Which projects are exceeding planned resources? 110010 011001 010110 DATA QUALITY § Where are data gaps, duplicates, invalid values? § Where are our cost blind spots? § Which data from what systems don’t line up?

What can YOU DO with Better Cost Transparency? APPLICATIONS § Drive business value-based conversations § Evaluate on-prem cost vs. Saa. S § Rationalize applications CLOUD § Control public cloud sprawl § Manage cloud adoption § Understand how cloud fits your hybrid IT business IT TOWER § Demonstrate efficiency to justify investment § Drive IT behavior change through measurement § Influence app teams’ choice of infra SPEND § Improve forecasting accuracy § Manage spend to budget or forecast § Shift to variable spend to scale with demand 9 BUSINESS UNITS § Drive fact-based tradeoff conversations § Influence business consumption § Collaboratively prioritize investments and resources INFRASTRUCTURE DETAIL § Align storage tier to app type § Align virtual server size to app type § Consolidate servers and storage LABOR § Accelerate staffing decisions § Adjust mix of internal vs. outsource § Manage mix of onshore vs. offshore BUSINESS IT FINANCE APPS & INFRA SERVICES § Manage cost of shared services § Influence demand for different service offerings § Accelerate cloud migration decisions VENDORS § Consolidate vendors § Arm for negotiations § Align vendor spend to portfolio strategy IT EXECS PROJECTS § Reign in runaway projects § Manage spend to budget § Align investment to innovation goals 110010 011001 010110 DATA QUALITY § Identify areas for data, process improvement § Reduce management blind spots § Improve IT business visibility over time

TBM Adopters in Every Industry RETAIL TELCO MANUFACTURING FINANCIAL SERVICES PUBLIC / EDUCATION CONSUMER GOODS HOSPITALITY ENERGY TRANSPORT/LOGISTICS AEROSPACE HIGH TECH INTERNET / MEDIA INSURANCE HEALTH / LIFE SCIENCE

TBM Community TBM Council Board of Directors The TBM Council is a non-profit organization dedicated to advancing the discipline of managing the business of IT Brian Adams Debra Bailey Mike Brady Mike Brown John Bruno Anil Cheriyan CIO Worley. Parsons CIO Nationwide Building Society Global CTO AIG IT Vice President Exxon. Mobil EVP, Ent. Innovation & CIO Aon EVP & CIO Sun. Trust Banks Guillermo Diaz SVP & CIO, IT Cisco Jim Du. Bois CIO Microsoft Christopher Furst Larry Godec Sunny Gupta CIO Univision Communications SVP & CIO First American Financial CEO Apptio James La. Plaine Ralph Loura CIO AOL CTO Rodan + Fields Collaboration | Education | Standards 2, 200+ 45% 40% Members CXOs I&O and Finance Greg Morrison Tom Murphy Michael Neff Jim Scholefield Phuong Tram George Westerman SVP & CIO Cox Enterprises VP, IT & CIO University of Pennsylvania Chief Managing Director & CIO RWE AG CIO Nike CIO Du. Pont Research Scientist MIT Center for Digital Business

Your IT Finance Function How Do You Manage Costs Today? 1. Current state? A IT as a corporate expense B Annual allocation to BU C With showback? Chargeback/cost recovery Consumption-based? 2. At what layers do you report and manage technology costs? Business Capabilities Applications IT IT Products Towers Finance Services Projects Cost Pools General Ledger Order Fulfillment, Risk Management, Global Sales, & Service… Oracle General Ledger… Application Hosting, Messaging, Print Services… Wintel, UNIX, Tier 1 Storage… Servers, Storage, Data Centers, Application Development, Help Desk… Actuals vs. Budget or Estimate Hardware, Software, Labor… Cost Centers & Accounts 3. Where can you improve transparency and efficiency?

Your Operating Model How Are You Structured Today? Tomorrow? IT org focused primarily on availability and performance of technical functional areas IT publishes a service catalog to the business; service owners accountable for cost and quality Payroll Credit Check Service Provider 1 (cloud) Applications Network SAP Financials Service SAP Financials Storage Collaboration Service Email Service Servers Applications Network Storage Servers Support Email Service Applications SERVICE BROKER & MANAGER Applications SERVICE PROVIDER Applications TECHNOLOGY PROVIDER Network C Storage B Servers A Provider 2 (on-prem) Provider 3 (BPO) Provider 4 (hybrid) IT helps the business choose services, including internal, cloud, and outsourced, and manages the mix

Organizational Considerations Who Would Own IT Cost Transparency iniatives ? Who Would Benefit? Owner? Key stakeholders? INFRASTRUCTURE & OPERATIONS OFFICE OF THE CIO § Reduce RUN, defend GROW, increase TRANSFORM § Demonstrate business value, financial stewardship § Drive alignment on performance against strategy BUSINESS RELATIONSHIPS MGMT § Justify investments and optimize for demand § Drive cost accountability to operational leaders § Promote standards for simplicity and agility IT FINANCE § Convey value § Defend IT costs § Change behavior with cost/quality tradeoff STRATEGY & PLANNING § Drive financial accountability § Explain and defend allocations § More analysis, less data manipulation § Optimize portfolios § Focus on unique advantage § Drive accountability to plan Which processes could benefit from faster data consolidation? Better analytics? Month-End Close Monthly Variance Quarterly Forecasts Ops Reviews Vendor Management Capacity Procurement Portfolio Reviews Project Financials Monthly BU Reviews QBRs Annual Plan

Opportunities for Value Where Could You Accelerate Outcomes with Better Analytics? Current Strategic Initiative? § Cost reduction § Application rationalization § Datacenter consolidation § Outsourcing / Insourcing § Shared services transition § Infrastructure modernization § Others? Specific Focus Area? § Accelerate existing process (cost reporting, chargeback, project financials, budgeting) § Manage virtual sprawl, consolidate servers § Reclaim storage, match tier to biz need § Migrate workloads to cloud § Justify technology refresh & investment § Consolidate vendors, negotiate contracts § Adjust internal & contract labor mix Transformational TBM Impact? § Demonstrate business value § Influence business demand § Create a performance-based culture § Improve management data & processes § Budget & procure per expected demand § Align RTB/CTB budget for innovation § Aligned fixed/variable structure for financial agility § Manage rates & recover costs What consolidated/correlated information would accelerate those outcomes? COST UTILIZATION CONSUMPTION DEMAND

Cost Transparency Every Business Expects CUSTOMERS How much are our customers buying? PRODUCTS What is driving the total costs of products we provide? FOUNDATION What is driving the cost of what we do? 16 Biz Functions Vendors Total Spend Labor Projects Contractors

Cost Transparency for the Business of IT IT COST TRANSPARENCY BUSINESS UNITS How much are our customers buying? What is driving the total costs of products we provide? Business Units APPLICATIONS & SERVICES App Total Cost App Portfolio Services FOUNDATION What is driving the cost of what we do? IT Towers Spend 17 Vendors Labor Projects 110010 011001 010110 Data Quality Cloud

© 182015 Apptio, All rights reserved

ATUMTM Cost Categories in Foundation © 192015 Apptio, All rights reserved

ATUMTM Cost Categories in Apps & Services © 202015 Apptio, All rights reserved

Definitions – Services Service Portfolio Used to manage the entire Lifecycle of all Services, and includes three Categories: Service Pipeline (proposed or in Development); Service Catalog (live or available for Deployment); and Retired Services 1 Service Catalog A database or structured document with information about all Live IT Services. The Service Catalog is the only part of the Service Portfolio published to Customers, and is used to support the sale and delivery of IT Services 1 Service Taxonomy Service Library 1. Source: Pink Elephant © 212015 Apptio, All rights reserved An organizing taxonomy or hierarchical list of IT Service Offerings Mmaintains the taxonomy and attributes of services for reporting and analytics

Service Library Hierarchy 22 22 1. Service Type 2. Service Category 3. Service 4. Service Offering ©© 2015 Apptio, All rights reserved 2014 Apptio, Inc. All rights reserved. Example Ø End User Services Ø Client Computing Ø Standard categories Traveling Workspace Ø Ultraportable Laptop Customer specific modifications

BUSINESS CAPABILITIES APPLICATIONS & SERVICES END USER SERVICES Client Computing TECHNOLOGY SERVICES Communication & Collaboration Connectivity • Fixed Workspace • Collaborative Workspace • Network Access • Mobile Workspace • Conferencing • Remote Access • Virtual Workspace • Email & Calendaring • Cop/Print/Fax/Scan • Messaging • Phone & Voicemail IT TOWERS & SUB-TOWERS COST POOLS 23 APPLICATIONS / BUSINESS FACING SERVICES © 2015 Apptio, All rights reserved

Portfolio Service Basic Workspace Connectivity End User Services Client Computing Technical Workspace 24 Copy/Print/Fax/Scan Network Access Remote Access Shared Workspace Traveling Workspace Service Offering Standard Desktop Virtual Desktop Developer / Power User Workstation Virtual Developer Workstation Shared Workspace Standard Laptop Ultraportable Laptop Tablet Standard Smart Phone High-use Smart Phone BYOD Activation Copy/Print/Fax/Scan Wireless (may include with Desktop service) Hotspot Aircard (may include with Laptop service) Svc. Category Portfolio Communication & Collaboration Svc. Category End User Services Service Library – End User Services Service Conferencing Collaborative Workspace Messaging Email Phone & Voicemail Service Offering Desktop Video Audio Conference Live Event Broadcast Telepresence Video Conference Room Social Communities Internal Collaborative Workspace External Collaborative Workspace Public Shared Folder Instant Messaging Unified Messaging Standard Personal Mailbox Premium Personal Mailbox Group Mailbox Application Mailbox Work analog phone and voicemail Work VOIP phone and voicemail Home office phone and voicemail Mobile phone and voicemail Pager

BUSINESS CAPABILITIES APPLICATIONS & SERVICES END USER SERVICES Apps & Integration TECHNOLOGY SERVICES IT Professional Services APPLICATIONS / BUSINESS FACING SERVICES Hosting Services • App Design & Development • Program & Project Mgmt • Application Hosting • Saa. S Integration • Business Process Mgmt • Web Hosting as a Service • System Integration • Enterprise Architecture • Platform as a Service • Application Testing • Service Desk • Database as a Service • Deskside Service • Compute as a Service • Governance, Risk & Compliance • Storage as a Service • Connectivity as a Service IT TOWERS & SUB-TOWERS COST POOLS 25 © 2015 Apptio, All rights reserved

Service Library – Other Services Application Support Quality Assurance Program & Project Mgmt. Business Process Mgmt. Enterprise Architecture Service Desk Deskside Support © 262015 Apptio, All rights reserved Service Offering Original Development Saa. S Integration Application Support Quality Assurance Program & Project Mgmt. Business Process Mgmt. Enterprise Architecture Service Desk- Regular Business Hours Service Desk- After Hours / 7 x 24 Standard Deskside Support Premium Deskside Support Svc. Category Portfolio Hosting Service App. Design & Dev. Hosting Apps. & Integration Portfolio IT Professional Services Apps. & Integration Svc. Category Service Application Hosting Web hosting as a Service Platform as a Service Database as a Service Compute as a Service Storage as a Service Connectivity as a Svc. Service Offering (Generic, includes all supporting infrastructure) Web Service - Physical Web Service - Virtual App Platform - Physical App Platform - Virtual Database Service – Physical Database Service - Virtual Wintel Service - Physical Wintel Service - Virtual Linux Service - Physical Linux Service - Virtual Platinum Storage Gold Storage Silver Storage Bronze Storage Connectivity by Node

Recommondations – next steps Take an “top-down” approach to IT Asset Management – focus on the business language (IT Goverance) Use a IT Cost Transparency initative for a basis for creating a more services oriented delivery model (Service Portfolio Management) Start. PS! It is OK to ask for help. . 27

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Delivering Transformation. Together. 29 Title presentation