Index for my ServiceNow ITSM Blogs

Improving IT Operations 

The Future of IT, ITSM, Service Desk, and ITIL

Thinking Differently And The Need For IT Change

Enterprise Service Management

 Custom Apps

ServiceNow

Social Media

My Forrester Blog Index – The End Of A Blog Roll

As I have posted my last blog to my Forrester blogroll I thought I would update my index of last August …

To view the blogs in chronoloical order please go to: http://blogs.forrester.com/blog/28357

ITSM – ITIL, COBIT etc.

Practical ITSM Advice: Defining Availability For An IT Service

People In IT Love Stats But They Probably Won’t Love These

The Capita ITIL JV Wasn’t “Big News,” So What IS Important To Real-World IT Service Delivery?

So Capita Gets ITIL But Will People Finally “Get” ITIL?

ITSM Goodness: How To Up Your IT Service Management Game In 7 Steps

ITSM And The itSMF In Norway – Different In So Many Ways?

IT Service Management In 2013 – How Far Have We Come Since 2009?

Man Alive, It’s COBIT 5: How Are You Governing And Managing Enterprise IT?

The Cult Of ITIL: It Has More Followers Than You Think

ITSM, ITIL, And Enabling Tools In The Middle East

It’s Time To Realize That “ITIL Is Not The Only Fruit”

ITIL Adoption: 5 Steps That Can Help With Success

“We Need To Talk About ITIL”

ITIL Global Adoption Rates, Well At Least A Good Indication Of Where It Is At

ITIL: What Constitutes Success?

Top 20 (OK, 50) ITIL Adoption Mistakes

The Applicability Of ITIL Outside Of IT

What Next For ITIL?

2011: An ITIL Versioning Odyssey

Getting Started With ITIL – The 30-Minute Version

ITSM – Tools and Vendors

ITSM Tools: Is What You Pay Linked To Value?

The Importance Of Customer “Choice” In ITSM Tool Selection – “Hybrid ITSM”?

12 Tips For Moving From An On-Premises To SaaS ITSM Tool (From A Customer)

The Forrester SaaS ITSM Tool Market Overview: Who Is Where With What

Automation: Is It The Only Way For IT To Really “Do More With Less”?

“BMC You Later” — BMC Pushes The ITSM Tool Envelope With MyIT

More ITSM Tool Bells And Whistles, And Where The Real Focus Of Vendor Attention Should Be

50 Shards Of ITIL – The Bane And Pain Of ITSM Tool Selection

SaaS for ITSM: Getting Past The Hype

ITSM Tool Verification: A Good Or Bad Thing?

ServiceNow Finally Goes Public: Which Way Now?

BMC To Acquire Numara Software: A Few Thoughts From Your Favorite ITSM Analyst

Why Is Buying An ITSM Tool Like Buying A Car?

How Do You Value ITSM Tool Verification Or Certification Schemes?

ServiceNow Knowledge11: ITSM And Social Learning For Us All

Newsflash For The ITSM Community: “SaaS” Is A Red Herring

Sharing The ITSM And ITAM Goodness Of CA World: 20+ Presentations To Download

Are You Happy With Your ITSM Tool?

ITSM – People

Squeezing The Value Out Of ITIL, Or Any Other IT, Training

How Gremlins And Vanilla Ice Can Help Us Deliver Better IT Services

How Not To Make Friends And Influence People: A Personal Story Of Customer Experience At Its Worst . . . And What IT Can Learn

Staffing For IT Service Delivery Success: Think Employee, Think Customer, Then Repeat

Prepare Your People For The Future Of IT Service Delivery

A Killer Disease? IT’s Unhealthy Obsession With Itself

ITSM And ITIL Thinking – Brawn, Brains, Or Heart?

The ABC Of ICT – The Top 10 People Success Factors For ITSM

The ABC Of ICT – The Top 10 People Issues

ITSM – Service Catalog Getting A Service Catalog: So Much More Than Buying A Tool!

ITSM – Strategy & Futures (Cloud, BYOD, Mobility, Social, Automation)

IT? How about I&T?

ITSM in 2013 and Beyond: The Webinar Link And Audience Poll Results

The Top 10 IT Service Management Challenges For 2013 — But What Did You Achieve In 2012?

What’s Your ITSM Strategy (If You Actually Have One)?

ITSM In 2012: In The Words Of Marvin Gaye, “What’s Going On?”

ITSM AND Automation: Now That’s A Double Whammy Of Business-Enabling Goodness

Defining IT Service Management – Or Is That “Service Management”?

Enabling Customer Mobility: Why Current Mobile Device Management Thinking Is Flawed 

Social IT Support: Didn’t We Do This In The 1990s?

Are You Sleepwalking Through Twitter?

My 2011 Blog Of Blogs: Hopefully The “Important” ITSM, ITIL, People, ITAM, SAM, ITFM, Etc. Stuff

Top 10 ITSM Challenges For 2012: More Emphasis On The “Service” And The “Management”

Have You Considered BI for ITSM?

Social? Cloud? What About Mobile?

ITSM – Service Desk

Is Your IT Service Desk Customer Experience Up To Scratch?

What’s The Real Cost Of Poor IT Support And Shoddy Customer Service?

12 Pieces Of Advice For IT Service Desks – From A Customer!

Paging The IT Organization: You Need To Support The People Not The Technology

IT Support: IT Failure Impacts Business People and Business Performance. Comprendez?

How Not To Deal With IT Service Failure

What’s The Problem With Problem Management?

Benchmarking The IT Service Desk – Where Do You Stand?

Where Is All The Incident Classification Best Practice?

ITSM – Metrics

IT Service Management Benchmarks – For You By You

Is Customer Experience Important To Internal IT Organizations? With Free Statistics!

“We Do A Great Job In IT, Our Metrics Dashboard Is A Sea Of Green.” Really?

Where IT Metrics Go Wrong: 13 Issues To Avoid

Why Is IT Operations Like Pizza Delivery?

ITSM Metrics: Advice And 10 Top Tips

ITSM – Back2ITSM

Giving Back To The ITSM Community: We Move, If Slowly, But With Purpose

From The Coal Face: Real World ITSM And ITIL Adoption Sound Bites

ITSM Practitioner Health Check: The ITSM Community Strikes Back

Giving Back To The IT Service Management Community

Support ITSM Tool Vendors That Support The ITSM Community

ITAM

Software Asset Management in 2013: State Of SAM Survey Results

The Rise, Fall, And Rise Of Software Asset Management: It’s More Than Just A “Good Thing To Do”

Cover Your Assets; Use IT Asset Life-Cycle Management To Control IT Costs

Software Asset Management Part Deux – “Try Harder”

ITFM

Warning: Your Journey To “Demonstrating IT-Delivered Value” Passes Through The Quaint Little Town Of “Understanding IT Costs”

Five Steps To Improve Your IT Financial Management Maturity

“Run IT As A Business?” Do You Really Know What This Means?

IT Value, Like Beauty, Is In The Eye Of The Beholder

DevOps Will It Be “DevOps” Or “DevOid” For I&O Professionals?

Supplier Management

5 Tips For Getting Ready For Service Integration

A Late New Year’s Resolution: Be Nice To A Supplier And See What Happens

My Forrester Blog Index: ITSM, ITAM, and ITFM

Last updated 3 September 2012. For more recent blogs please go to: http://blogs.forrester.com/stephen_mann

ITSM – ITIL, COBIT etc.

Man Alive, It’s COBIT 5: How Are You Governing And Managing Enterprise IT?

The Cult Of ITIL: It Has More Followers Than You Think

ITSM, ITIL, And Enabling Tools In The Middle East

It’s Time To Realize That “ITIL Is Not The Only Fruit”

ITIL Adoption: 5 Steps That Can Help With Success

“We Need To Talk About ITIL”

ITIL Global Adoption Rates, Well At Least A Good Indication Of Where It Is At

ITIL: What Constitutes Success?

Top 20 (OK, 50) ITIL Adoption Mistakes

The Applicability Of ITIL Outside Of IT

What Next For ITIL?

2011: An ITIL Versioning Odyssey

Getting Started With ITIL – The 30-Minute Version

ITSM – Tools and Vendors

50 Shards Of ITIL – The Bane And Pain Of ITSM Tool Selection

SaaS for ITSM: Getting Past The Hype

ITSM Tool Verification: A Good Or Bad Thing?

ServiceNow Finally Goes Public: Which Way Now?

BMC To Acquire Numara Software: A Few Thoughts From Your Favorite ITSM Analyst

Why Is Buying An ITSM Tool Like Buying A Car?

How Do You Value ITSM Tool Verification Or Certification Schemes?

ServiceNow Knowledge11: ITSM And Social Learning For Us All

Newsflash For The ITSM Community: “SaaS” Is A Red Herring

Sharing The ITSM And ITAM Goodness Of CA World: 20+ Presentations To Download

Are You Happy With Your ITSM Tool?

ITSM – People

Staffing For IT Service Delivery Success: Think Employee, Think Customer, Then Repeat

Prepare Your People For The Future Of IT Service Delivery

A Killer Disease? IT’s Unhealthy Obsession With Itself

ITSM And ITIL Thinking – Brawn, Brains, Or Heart?

The ABC Of ICT – The Top 10 People Success Factors For ITSM

The ABC Of ICT – The Top 10 People Issues

ITSM – Service Catalog Getting A Service Catalog: So Much More Than Buying A Tool!

ITSM – Strategy & Futures (Cloud, BYOD, Mobility, Social, Automation)

What’s Your ITSM Strategy (If You Actually Have One)?

ITSM In 2012: In The Words Of Marvin Gaye, “What’s Going On?”

ITSM AND Automation: Now That’s A Double Whammy Of Business-Enabling Goodness

Defining IT Service Management – Or Is That “Service Management”?

Enabling Customer Mobility: Why Current Mobile Device Management Thinking Is Flawed 

Social IT Support: Didn’t We Do This In The 1990s?

Are You Sleepwalking Through Twitter?

My 2011 Blog Of Blogs: Hopefully The “Important” ITSM, ITIL, People, ITAM, SAM, ITFM, Etc. Stuff

Top 10 ITSM Challenges For 2012: More Emphasis On The “Service” And The “Management”

Have You Considered BI for ITSM?

Social? Cloud? What About Mobile?

ITSM – Service Desk

12 Pieces Of Advice For IT Service Desks – From A Customer!

Paging The IT Organization: You Need To Support The People Not The Technology

IT Support: IT Failure Impacts Business People and Business Performance. Comprendez?

How Not To Deal With IT Service Failure

What’s The Problem With Problem Management?

Benchmarking The IT Service Desk – Where Do You Stand?

Where Is All The Incident Classification Best Practice?

ITSM – Metrics

Where IT Metrics Go Wrong: 13 Issues To Avoid

Why Is IT Operations Like Pizza Delivery?

ITSM Metrics: Advice And 10 Top Tips

ITSM – Back2ITSM

Giving Back To The ITSM Community: We Move, If Slowly, But With Purpose

From The Coal Face: Real World ITSM And ITIL Adoption Sound Bites

ITSM Practitioner Health Check: The ITSM Community Strikes Back

Giving Back To The IT Service Management Community

Support ITSM Tool Vendors That Support The ITSM Community

ITAM

Cover Your Assets; Use IT Asset Life-Cycle Management To Control IT Costs

Software Asset Management Part Deux – “Try Harder”

ITFM

Warning: Your Journey To “Demonstrating IT-Delivered Value” Passes Through The Quaint Little Town Of “Understanding IT Costs”

Five Steps To Improve Your IT Financial Management Maturity

“Run IT As A Business?” Do You Really Know What This Means?

IT Value, Like Beauty, Is In The Eye Of The Beholder

DevOps Will It Be “DevOps” Or “DevOid” For I&O Professionals?

Supplier Management A Late New Year’s Resolution: Be Nice To A Supplier And See What Happens

There’s a new breed of IT service management vendor in town

Ovum has observed what might be the start of an interesting trend in IT management (ITM) software. Traditionally, there have been IT service management (ITSM) and infrastructure management vendors, plus mega-vendors with operations in both camps. ITSM vendors have already moved into the infrastructure management space with discovery, event monitoring, software distribution, and automation capabilities, but now the reverse is happening – infrastructure management vendors are entering the crowded ITSM space. It’s an interesting move and one that we believe offers a valuable opportunity for organizations.

Why are infrastructure management vendors making this move?

The ITSM software marketplace’s obsession with, and reliance on, ITIL-alignment has made it easy for new vendors to enter the market. It’s simply a case of delivering the capabilities to support the most often adopted ITIL processes within an envelope of professional services. Newer “pure-play” ITSM vendors (both SaaS and on-premise) have already adequately demonstrated this.

For the infrastructure management software vendors, it’s a lucrative opportunity to cross-sell to existing clients, retain clients by offering greater value and capabilities, or gain customers looking for a more complete ITM solution. It will be interesting to see how many more infrastructure management software vendors explore a move into the ITSM space.

How will IT organizations benefit?

Increased competition can be both a good and bad thing for IT organizations. There is greater product choice and potentially more competitive pricing on offer in order to win deals, but the ITSM market is saturated and already difficult to pick a “winner” from. The entry of infrastructure management vendors also increases the possibility of the long-predicted shake up in the ITSM marketplace, with the unavoidable casualties being vendors and their customers. However, the blurring of the lines between infrastructure management and ITSM is good for IT organizations, not only from a cost perspective but also in terms of ease of use.

A good example is Dell KACE’s K1000 systems management offering. It initially introduced its service desk as an optional, separately priced add-on to the K1000, but it is now rolled into the main product in terms of pricing. From an ease of use perspective, being able to seamlessly start diagnosis or resolution from within the incident ticket (called “one-click to resolution” by Dell KACE) is an obvious advantage. While not a new concept (it is a common feature within mega-vendor ITSM offerings), there is a lack of complexity and potential cost when provided from a single, purpose-built solution, rather than from an amalgam of home-grown and acquired point solutions.

In addition, as IT organizations evolve to reflect the changing IT landscape, particularly the introduction of cloud-delivered services, IT will most likely need to become more dependent on IT generalists rather than specialists. These generalists will be heavily reliant on both infrastructure management and ITSM tools, so the use of a single user interface and a common way of working can only benefit them as they endeavor to “deliver more with less”.

Will this increase or slow down ITSM software churn?

There has long been a level of churn in the ITSM software market, with IT organizations changing their tool of choice every five to six years, and this is even more evident now with newer ITSM vendors stating that they offer better ROI and a smoother upgrade path.

The infrastructure management/ITSM hybrid offering will add to this, but it will also provide customers with the opportunity to increase ITSM activity in line with the vendors adding tool functionality. Unlike pure-play ITSM tool vendors, infrastructure management/ITSM hybrid vendors have no pressure to deliver and to compete with 14 ITIL-compliant processes from day one. Alternatively, they can offer a mandatory core of incident, change, and configuration management, and then add to the processes at a speed that encourages customers to grow with them.

Some organizations would benefit from the adoption of an ITSM tool that “grows” with them, rather than opting for one that exceeds their level of ITSM maturity. Such a tool might even turn out to be one that they can grow old with.

Originally published on www.ovum.com/news

Business-IT Dialog?

ITIL has long espoused the need for IT-to-business alignment. However, the levels of IT organization success in achieving this are somewhat patchy. Portfolio management techniques can be used to demonstrate the level of IT congruence with business strategy, but in Ovum’s opinion there is also real value to be gained from an ongoing dialog with key stakeholders within the business – a formalized dialog which is part of the overall IT service management ecosystem.

Within ITIL v2 this was subsumed within monthly or quarterly service level management meetings. ITIL v3 however takes the need for such dialog a step further with the introduction of a business relationship manager role, with the business relationship manager (or managers) tasked with acting as a liaison between IT and the business. A business relationship manager should have significant knowledge in subject matters pertaining to both IT and the business. They should be specifically responsible for understanding the business and its needs, assisting in the prioritization of IT-related projects, and directing IT strategy in support of business strategy. Importantly, the role differs from that of a customer relationship manager in that it should act as an advocate for the business within IT, acting in a way that is not driven by the need to sell more IT product and services.

Business relationship managers should also work closely with the product and service managers responsible for developing and managing services across the service lifecycle, ideally working via service and customer portfolios. At a more granular level, they should work with all levels within the business, from day-to-day operations to strategic planning, to ensure the right services are delivered at the right price to meet business needs. Their primary goal is to build a true partnership between IT and the business (most likely at a business-unit level) providing the business with the opportunity to help shape the IT services delivered.

In Ovum’s experience, the business relationship manager position is still an emerging role within IT organizations. However, whether the role exists or not, an ongoing two-way business dialog (with business unit or functional champions) is a recommended starting point for both ITIL v3 adoption and the ability to demonstrate delivered business value. An IT organization should, in particular, assess and educate key stakeholders in their understanding of what IT does and what IT governance and IT service management means to them, and should establish what is important in terms of demonstrating IT performance, the stewardship of IT resources, and the value that IT delivers to the business.

Originally published on www.ovumkc.com

What’s hot in IT service management?

Analysis of the presentations at the upcoming IT Service Management Forum (itSMF) UK Conference reveals three “hot topics” coming to the fore. Last year’s emphasis on people is continued, while the oft-neglected ITIL v3 disciplines of service design and continual service improvement get significant coverage. All three need greater exposure and attention within IT organizations. Without this, IT functions place themselves at risk of being unable to adapt to tougher business demands and the rapidly changing IT landscape.

Are IT organizations capable of leveraging people talent?

For last year’s itSMF Conference, Ovum offered the opinion that “the people side of IT, while lauded as part of the oft-quoted ITIL mantra (of people, process, and technology), is well due its time in the spotlight.” But while it’s great to see this year’s conference again focus on people, one has to ask what IT organizations have achieved in this area since last November.

Given the fact that IT functions’ struggle with people (or “talent”) management is a long-held area of concern, one has to ask whether they are ever going to get it right. But something’s got to give. With the increasing focus on IT delivered “as-a-service” and the changing technology landscape, more will be demanded of IT people, and especially of their non-technical capabilities. In particular, the advent of cloud computing will change the way that IT organizations look at, and eventually deliver, IT services. While not requiring an immediate technology change, IT organizations need to be addressing cloud-related people issues and opportunities now.

As the adoption of cloud computing services becomes more prevalent, IT organizations will face a variety of new IT service management challenges. Not only will they need to ensure that existing policies, processes, procedures, and supporting technologies are fit for externally delivered IT services; they must also ensure that the IT organization and its people remain a relevant and effective part of the IT service delivery chain. IT organizations will need to evolve to reflect the change in focus caused by the externalization and loss of immediate management of some infrastructure and services, with an even greater need for IT or business resources to manage service delivery using best practice IT service management processes.

Service design and continual service improvement are key to improving IT organization performance

Many IT organizations neglect the ITIL v3 service design processes of IT financial, service portfolio, and demand management. However, IT organizations cannot continue to ignore the need for IT financial management maturity; they need as a minimum to get the IT financial management basics right. Service costing should also be seen as mandatory, and IT funding models will probably need to change in line with the shift in IT delivery models, potentially with a capital-light and service-centric budget model.

We believe that reactive cost management is no longer enough, and that IT financial management needs to go beyond traditional disciplines to add in the dimension of “value.” An example would be for IT organizations to not just look at the cost of an IT service, but also to gain an understanding of how the related expenditure ultimately delivers value to the organization in support of business processes and corporate goals. Portfolio management processes, tools, and techniques can play a key role in this.

Continual service improvement is not just another ITIL v3 process that can be adopted in isolation. It should be applied across all ITIL domains and processes, and is a capability that needs to stem from a culture of improvement. In our opinion, the continual service improvement process will be sub-optimal without a culture that actively seeks improvements from any part of the organization – an organization where innovation is not just the preserve of senior management. The contribution of people to continual service improvement must therefore be treated as an integral part of ITIL v3 adoption.

Originally published on http://www.ovum.com/news/

Should IT service management go back to basics?

Ovum is witnessing what is hopefully the start of an interesting go-to-market trend for IT service management (ITSM) software vendors – a change of product “markitecture”, from ITIL alignment to addressing key IT challenges in better meeting business needs and demonstrating IT-delivered value. While ITIL is still and will continue to be the de facto best-practice framework for ITSM, this change in vendor messaging is just what ITSM needs to solve the growing gap between ITIL theory and its real-world adoption.

ITIL has long driven the ITSM software market – will and should this continue?

In many ways, ITIL is now a technology blueprint for ITSM vendors. There are both pros and cons to this. The alignment with ITIL allows IT organizations to better understand a product’s capabilities and its use once deployed, and there is no doubt that the availability of fit-for-purpose technology has helped with the worldwide adoption of ITIL. On the downside, the parochial vendor and enterprise focus on ITIL has stifled ITSM innovation and limited the thinking of IT organizations.

However, recent briefings from CA Technologies and HP have provided us with food for thought on this. These vendors have crafted ITIL-light messaging that focuses more on business and IT organization need, than on the adoption of the best-practice framework. This is delivered in a markitecture that depicts the most commonly adopted ITIL v2 disciplines (of incident, problem, service level, and change management) with the ITIL v3 service catalog management process, supported by IT financial management, and asset and configuration management. Importantly, each element is targeted at pertinent enterprise pain points rather being elements of ITIL adoption. This is how ITIL was intended – “adopt and adapt” to business needs.

While ITIL will hopefully continue to change the thinking of IT organizations and be a critical part of their management toolkits, Ovum believes that such a focus on business-driven ITSM over “following the gospel according to ITIL” will benefit everyone, including the OGC and itSMF.

IT organizations would also benefit from a back-to-basics approach to ITSM

ITIL adoption has continued to gain a foothold in enterprise IT organizations worldwide, as more than 20,000 people per month gain the ITIL Foundation Certificate. The level of ITIL certification, however, belies the real level of ITSM capabilities within enterprises, with it being too easy for enterprises to overstate their position – stating that they “do” ITIL when in fact they only “do” a limited subset of the ITSM best-practice framework’s processes, mostly around the more reactive ITIL disciplines such as incident management. There is also often too heavy an emphasis on process. But just implementing an ITIL process is missing the point – IT organizations neglect the required change in mindset.

The service desk and incident management practices are a good example of this, as far too many IT organizations fail to understand the importance of service desk people on the business’s perception of IT performance. The service desk is the business’s “window into IT”. Service desk analysts are often the IT people that the business deals with most. Rightly or wrongly, their ability to efficiently and effectively resolve business stoppages caused by IT issues constitutes a large part of end-user opinion on IT as a whole. Consequently, an IT organization should take a second look at its service desk, understand its level of customer focus, and improve its ability to prioritize and solve end-user issues based on business impact – especially outside of the prescriptive following of “how-to” scripts. It should ask some difficult questions, such as:

  • Is our service desk only as good as its people? If so, how good are our people?
  • Where do our analysts sit in our IT hierarchy? How are they paid, educated, and trained?
  • How is their performance reviewed? How are they valued?
  • Do we prioritize the resolution of IT issues based on business impact?

Ultimately, service desk people can and should be the backbone of effective IT service management and IT organizations need to start treating them as such.

Originally published on http://www.ovum.com/news

“Resource-strapped IT managers are fighting back,” says research by Numara Software

Numara Software, a provider of service management and asset management solutions, is about to release the findings of its study into the state of IT funding in the UK, Germany, and France, and the consequences of the lack of IT investment during the last few years. The results of this study, entitled “Rebirth of the IT budget” and based on the responses of 300 senior IT decision-makers (none of which are Numara customers), indicate that IT managers are now fighting back, demanding more funds and resources to support the continued provision of quality IT services.

82% of IT managers have seen IT funding affected in some way during the last two years

The recent corporate focus on IT costs and value was inevitable given the growing total cost of IT provision. However, with such a large proportion of IT spend being on “keeping the lights on” activities, many IT organizations are vulnerable to ever-increasing budget cuts. Not unsurprisingly, 52% of respondents state that the financial value of their IT budget has been affected, whether frozen (18%) or, more commonly, reduced (34%). But the decision-making process has also changed for 52% of companies, with 27% saying that it has slowed and another 25% saying more senior people are involved in the sign-off process.

Looking forward, however, the majority of the senior IT professionals surveyed expect things to improve – 15% in mid-2010, 45% by the end of 2010, and 29% in 2011 or beyond. While this might appear somewhat optimistic, 63% of respondents are concerned that the business has become accustomed to the slashing of IT budgets and that if not challenged the practice will continue for years to come.

In our opinion, much of this is to do with the focus on what IT costs rather than the value that it delivers to the business. While the business continues to see IT purely from a cost perspective, it will remain at risk from progressive corporate budget cuts. To address this, IT organizations need to better understand and communicate how individual IT services deliver value to the business and how decreasing IT expenditure will ultimately affect business services. But before they can do this, they need to understand the IT assets employed and how their usage drives both cost and IT service delivery.

92% of enterprises feel under some sort of pressure in relation to asset tracking

The most common pressure is being able to resolve users’ technical issues in line with agreed SLA targets. This is followed by keeping track of IT assets in an ever-changing IT landscape. While not discounting the importance of the former, the latter point is critical for IT organizations on the back of the ever-increasing focus on what IT costs. In our opinion, there are a variety of opportunities for enterprises to gain a better understanding of the assets employed and then use this information for short-term rationalization exercises of hardware, software, applications, and even IT services before creating a longer-term platform for both application and service portfolio management. Asset tracking and service costing will both be key to this.

61% of IT decision-makers consider software maintenance costs to be a burden on their IT budget

Additionally, 40% describe this burden as significant, with 45% describing software maintenance contracts as a necessary evil. There is no doubt that software costs (both initial purchase and maintenance) are a large part of total IT expenditure these days; in fact many IT organizations do not truly appreciate how great a cost this is. Software asset management is a key activity here – not only understanding the licensing position in respect of the installed software base, but gaining an understanding of how software is used to make better use of agreed licensing terms and identifying opportunities to reclaim unused or underused licenses for use elsewhere. From a software maintenance perspective, SaaS-delivery options can help. In the case of IT service management tools, SaaS vendors will often state that the annual subscription charge for everything involved in delivering IT service management capabilities (including the infrastructure) is not dissimilar to the annual support and maintenance charges levied on traditional on-premise tools.

Originally published at http://www.ovum.com/news/euronews.asp?id=8726

SaaS-delivered IT financial management from Service-now.com

The Spring (June) 2010 Service-now.com release adds much-anticipated IT financial management capabilities to its SaaS-delivered IT service management tool. The release will be applied to customer instances on 4 June, and is considered by Service-now.com to be the most substantial in its relatively short history. It contains six new applications that deliver capabilities for service portfolio management; IT cost management; project and portfolio management; field services; HR management; and facilities management. In our opinion, the additional financially based ITIL v3 service strategy processes of IT financial management and service portfolio management are both key enablers in the preparation required of IT organizations when considering the opportunities in the cloud.

IT organizations have long needed technology to enable IT financial management

For many IT organizations, the art of finance is pretty much a foreign language, with IT people not really understanding finance – in the same way that finance people often don’t understand HR, or HR people don’t understand marketing. Most IT organisations are able to budget and account for IT expenditure, but how many understand IT service costing – getting “under the skin” of IT services to determine the resources they consume and how cost drivers impact the overall cost of service provision?

A common barrier to effective IT financial management has been the lack of understanding of finance as a discipline within IT, because of both the “language” issue and the lack of comprehension of the “detail” of accounting practices. Beyond this though, there has long been a need for fit-for-purpose technology to enable IT financial management, in order to both support and guide the financial disciplines required within corporate IT organizations. This technology needs to help make IT financial management easier.

While many on-premise IT service management vendor tools have had IT financial management capabilities for several years, we believe the addition of these capabilities to Service-now.com’s SaaS for IT service automation offering is a sign of both the ever-growing need for IT financial management and the continuing suitability of SaaS-delivered IT service management for enterprise-level organizations. The addition of IT financial management capabilities (along with the other five applications) further increases the attractiveness of Service-now.com’s offering in the enterprise IT service management space.

IT financial management will be key to cloud migration decision making

Cloud computing is changing the way that IT organizations look at, and will eventually deliver, IT services. However, it is not going to be a total solution for IT service delivery, with most organizations eventually operating a blend of IT services delivered on-premise and via the cloud. Enterprises should apply cloud only to those areas where in-house IT is failing, rather than seeking to apply it (unjustifiably) to areas where in-house IT is already adequate and cost-effective.

In order to figure out which IT assets to keep and manage within a private cloud, which to trust to a traditional IT service provider, and which to source from the various public cloud solutions on offer, IT organizations need to understand what they already have and where they want to go. This is a comprehensive exercise that will need to leverage existing (or quickly assembled) IT service management knowledge and resources.

An IT organization clearly needs to have a good understanding of the IT services it provides (service portfolio management and service catalog management), along with the service-delivery quality levels required and the service-level agreement targets agreed with the business. One area where many IT organizations will struggle is service costing, and an IT organization needs to ensure that like is compared with like financially when making decisions around the cloud. It is necessary to understand what service delivery currently costs, that the price paid per month is not likely to be the total cost of ownership (TCO) for cloud-delivered IT services, and that the removal of some on-premise-delivered IT services might adversely affect the cost of those that remain.

Originally published at http://www.ovum.com/news/euronews.asp?id=8671