TBM Taxonomy v 2 Transition Ed Hayman TBM

TBM Taxonomy v 2 Transition Ed Hayman TBM Architect November 2016

ATUM: A Standards-Based Cost Model for IT What to Gather How to Organize How to Measure What to Track Data Taxonomy Model Metrics Standard costing rules to map and apportion GL costs to IT categories Standard metrics and KPIs to measure, review and manage IT cost and value Source data elements, formats, and relationships needed by Model Standard Management categories for IT TBM Unified Model (ATUM ) TM 1 © 2016 Apptio, All rights reserved (v 2. 5) TM

TBM Taxonomy: Evolving the Standard Role-specific Metrics Services Taxonomy Including cloud Working Standard May 2015 Endorsed November 2016 Cost Pools & IT Towers Endorsed May 2014 Public Cloud Services Taxonomy SAAS 2 © 2016 Apptio, All rights reserved (v 2. 5) IAAS/PAAS MSPs OUTSOURCERS

TBM Taxonomy v 2: Summary of Changes from V 1 Services (New) Defined Hierarchy: Service Type, Service Category and Service Name defined by the standard; with representative Service Offerings Compute: consolidation of Windows & Linux; moved Database, Middleware to Applications End User Services: enable the company’s workforce Storage: simplification of storage sub-towers away from “tiers” Business Application Services: enable business capabilities and internal operations Communication and Network: consolidation and simplification Public Cloud: eliminated the Cloud sub-towers across towers Delivery Services: innovate, design, build, deploy, support & operate IT & business-facing services Platform Services: data and application services Infrastructure Services: data center, network, compute & storage services IT Towers Emerging Technologies: capture new, impactful trends 3 © 2016 Apptio, All rights reserved (v 2. 5) Cost Pools Internal Services: introduced new Cost Pool, Internal Services, to capture internal cross charges Alignment: changed select “sub-pools” names for consistence Capital: added a Capital sub-pool to categorize the sub-pool for capital expenditures

TBM Taxonomy v 2. 0 Evolve 1. 0 to adapt to new trends & customer feedback Define services including cloud services 4 © 2016 Apptio, All rights reserved (v 2. 5)

BUSINESS CAPABILITIES SERVICES IT TOWERS COST POOLS Cost Pool Hierarchy Example 1. Cost Pool Ø 2. Cost Sub-Pool 5 © 2016 Apptio, All rights reserved (v 2. 5) Hardware Ø Depreciation Standards Committee Apptio defined standard, TBM Council endorsed

BUSINESS CAPABILITIES SERVICES IT TOWERS COST POOLS (v 1) Standards Committee INTERNAL LABOR EXTERNAL LABOR HARDWARE SOFTWARE OUTSIDE SERVICES FACILITIES & POWER TELECOM OTHER Internal Labor External Labor Depreciation Consulting Depreciation Telecom Other Lease Managed Service Provider Lease Expense Cloud Service Provider Expense Maintenance & Support 6 © 2016 Apptio, All rights reserved (v 2. 5) Maintenance & Support

BUSINESS CAPABILITIES SERVICES IT TOWERS COST POOLS (v 2) INTERNAL LABOR EXTERNAL LABOR OUTSIDE SERVICES HARDWARE SOFTWARE FACILITIES & POWER TELECOM OTHER Expense Consulting Expense Other Managed Service Provider Lease Subscription Lease Cloud Service Provider Maintenance & Support Depreciation & Amortization Capital Operating Expenditures Cap. Ex Standards Committee Capital 7 © 2016 Apptio, All rights reserved (v 2. 5) Capital Key: Rename New / Changed Scope INTERNAL SERVICES by Shared Service*

Cost Pool Changes (v 1 to v 2) Cost Pool V 1 Cost Sub-Pool V 1 Cost Pool V 2 Cost Sub-Pool V 2 Reason Internal Labor Expense Consistency across cost sub-pools External Labor Expense Consistency across cost sub-pools Hardware Software Facilities & Power Depreciation & Amortization Changed name to clarify that amortization (e. g. “intangible assets”) is included Software Lease Software Subscription Companies license or subscribe to software; they do not lease it Telecom Expense Lease Maintenance & Support Depreciation & Amortization Broke out into all categories for customers that have their own telecommunication infrastructure (e. g. fixed wireless infrastructure) Internal Services Shared Services New Cost Pool and Cost Sub-Pool to account for shared service cross-charges within the company Internal Labor External Labor Outside Services Hardware Software Facilities & Power Telecom Capital New Cost Sub-Pool for capital expenditures; does not apply to operational expenditures Telecom 8 © 2016 Apptio, All rights reserved (v 2. 5)

BUSINESS CAPABILITIES SERVICES IT TOWERS (v 1) IT Towers Hierarchy Example 1. IT Tower Ø 2. IT Sub-Tower Compute Ø Servers COST POOLS 9 © 2016 Apptio, All rights reserved (v 2. 5) Standards Committee Apptio defined standard, TBM Council endorsed

BUSINESS CAPABILITIES SERVICES IT TOWERS (v 1) DATA CENTER COMPUTE STORAGE NETWORK COMMUNICATION Standards Committee OUTPUT END USER APPLICATION DELIVERY SECURITY & COMPLIANCE IT MGMT Enterprise Data Center Windows Database Tier 1 LAN Circuits Central Print Workspace App Dev Ops Center Security IT Mgmt. & Strategic Planning Other Facilities Linux Middleware Tier 2 WAN Usage Post Processing Mobile Devices App Support & Ops Project Mgmt Compliance Enterprise Architecture Unix Mainframe Database Tier 3 Voice Service Desk Lo. B Software Client Mgmt Disaster Recovery IT Finance Mainframe Middleware Tier 4 Other Network Field Support Cloud Apps Cloud Ops Cloud DR IT Vendor Mgmt Converged Infrastructure Cloud Platform Cloud Storage Cloud Network Cloud Desktop Cloud Compute Windows Cloud Archive Cloud Compute Linux COST POOLS 10 © 2016 Apptio, All rights reserved (v 2. 5) Key: Public Cloud

BUSINESS CAPABILITIES SERVICES IT TOWERS (v 2) IT Towers Hierarchy Example 1. IT Tower Ø 2. IT Sub-Tower 3. IT Sub-Tower Element Compute Ø Servers Ø Ø Windows Linux Added an “optional” third tier to enable granularity if desired COST POOLS 11 © 2016 Apptio, All rights reserved (v 2. 5) Standards Committee Apptio defined standard, TBM Council endorsed Optional for more granular fidelity

BUSINESS CAPABILITIES SERVICES IT TOWERS (v 2) DATA CENTER Enterprise Data Center Other Facilities Standards Committee SECURITY & COMPLIANCE IT MANAGEMENT IT Service Management Security IT Management & Strategic Planning Application Support & Operations Center Compliance Enterprise Architecture End User Software Business Software Project Management Disaster Recovery IT Finance Network Printers Database Client Management Conferencing & AV Middleware IT Help Desk Mainframe Database Deskside Support Mainframe Middleware COMPUTE STORAGE NETWORK OUTPUT END USER APPLICATION DELIVERY (Windows, Linux) Servers Online Storage LAN/WAN Central Print Workspace Application Development Unix Offline Storage Voice Mobile Devices Midrange Mainframe Online Storage Transport Converged Infrastructure Mainframe Offline Storage Mainframe COST POOLS 12 © 2016 Apptio, All rights reserved (v 2. 5) Key: Rename Moved New / Changed Scope IT Vendor Management

BUSINESS CAPABILITIES SERVICES IT TOWERS (v 2) DATA CENTER Enterprise Data Center Other Facilities Standards Committee SECURITY & COMPLIANCE IT MANAGEMENT IT Service Management Security IT Management & Strategic Planning Application Support & Operations Center Compliance Enterprise Architecture End User Software Business Software Project Management Disaster Recovery IT Finance Network Printers Database Client Management Conferencing & AV Middleware IT Help Desk Mainframe Database Deskside Support Mainframe Middleware COMPUTE STORAGE NETWORK OUTPUT END USER APPLICATION DELIVERY (Windows, Linux) Servers Online Storage LAN/WAN Central Print Workspace Application Development Unix Offline Storage Voice Mobile Devices Midrange Mainframe Online Storage Transport Converged Infrastructure Mainframe Offline Storage Mainframe COST POOLS 13 © 2016 Apptio, All rights reserved (v 2. 5) Key: Rename Moved New / Changed Scope Infra Benchmark IT Vendor Management

IT Tower Changes (v 1 to v 2) Compute IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Reason Windows Linux Cloud Compute Windows Cloud Compute Linux Consolidated, less need to differentiate, difficult to identify at this level. Optional L 3 for those that want to keep detail Windows Linux Compute Servers Unix Compute Unix No change Mainframe Compute Mainframe No change Converged Infrastructure Compute Converged Infrastructure No change Database Middleware Application Database Middleware Mainframe Database Mainframe Middleware Application Mainframe Database Mainframe Middleware Cloud Compute Windows Cloud Compute Linux Cloud Platform <new> 14 © 2016 Apptio, All rights reserved (v 2. 5) Public Cloud Platform Moved out of “infrastructure” to applications Moved from Compute to Application tower Removed cloud at the sub-tower layer; incorporate as a Sub-Tower Element Compute Midrange New sub-tower

IT Tower Changes (cont’d) Storage IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Reason Tier 1 Tier 2 Tier 3 Storage Online Storage Mainframe Online Storage Cloud Storage Eliminated “service level” concept at the Tower level; too difficult to map costs Tier 4 Storage Offline Storage Mainframe Offline Storage Cloud Archive Eliminated “service level” concept at the Tower level; too difficult to map costs Cloud Storage Cloud Archive 15 © 2016 Apptio, All rights reserved (v 2. 5) Removed cloud at the sub-tower layer; incorporate as a Sub-Tower Element

IT Tower Changes (cont’d) Network IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Reason LAN WAN Network LAN/WAN Cloud Network Voice No change Other Network n/a Eliminated from taxonomy; if necessary use extensibility for unique network function (e. g. SCADA) Cloud Network n/a Removed cloud at the sub-tower layer; incorporate as a Sub-Tower Element IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Reason Circuits Usage Network Transport Voice Data Eliminated the Communications tower; collapsed Circuits and Usage into a single Transport sub-tower Communications 16 © 2016 Apptio, All rights reserved (v 2. 5)

IT Tower Changes (cont’d) Output IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Reason Central Print Post Processing Output Central Print IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Reason Workspace End User Workspace Cloud Desktop No change Mobile Devices End User Mobile Devices No change Service Desk End User IT Help Desk Changed name; removed ITSM from scope Field Support End User Deskside Support Changed name only Cloud Desktop n/a Removed cloud at the sub-tower layer; incorporate as a Sub-Tower Element End User Software New sub-tower End User Network Printers New sub-tower End User Conferencing & AV New sub-tower Collapsed Post Processing into Central Print End User 17 © 2016 Apptio, All rights reserved (v 2. 5)

IT Tower Changes (cont’d) Application IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 App Dev Application Development Name change only; eliminate abbreviations App Support & Ops Application Support & Operations Name change only; eliminate abbreviations Lo. B Software Application Business Software Cloud Apps n/a Removed cloud at the sub-tower layer; incorporate as a Sub-Tower Element Application Database Middleware Mainframe Database Mainframe Middleware Moved from Compute to Application tower 18 © 2016 Apptio, All rights reserved (v 2. 5) Sub-Tower Element Cloud Apps Reason Name change only; replace acronym

IT Tower Changes (cont’d) Delivery IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Reason Ops Center Delivery Operations Center Cloud Ops Name change only; eliminate abbreviations Project Mgmt Delivery Project Management Name change only; eliminate abbreviations Client Mgmt Delivery Client Management Name change only; eliminate abbreviations Cloud Ops n/a Removed cloud at the sub-tower layer; incorporate as a Sub-Tower Element Delivery IT Service Management New category; pulled ITSM scope from End User > Service Desk in V 1 19 © 2016 Apptio, All rights reserved (v 2. 5)

IT Tower Changes (cont’d) Security & Compliance IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 Sub-Tower Element Security Delivery Security No change Compliance Delivery Compliance No change Disaster Recovery Delivery Disaster Recovery Cloud DR n/a Removed cloud at the sub-tower layer; incorporate as a Sub-Tower Element Delivery IT Service Management New category; pulled ITSM scope from End User > Service Desk in V 1 Cloud DR Reason No change IT Mgmt IT Sub-Tower V 1 IT Tower V 2 IT Sub-Tower V 2 IT Mgmt & Strategic Planning IT Management & Strategic Planning Name change only; eliminate abbreviations Enterprise Architecture IT Management Enterprise Architecture No change IT Finance IT Management IT Finance No change IT Vendor Mgmt IT Management IT Vendor Management Name change only; eliminate abbreviations 20 © 2016 Apptio, All rights reserved (v 2. 5) Sub-Tower Element Reason