Take Charge of Your Cloud Migrations with Dependency Mapping, Inventory and Usage Insights

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Dennis Nils Drogseth
Vice President of Research
Enterprise management Associates
Optimizing IT Costs
and Value Through
Usage-Driven Insights
Will Degener
Director, Product Management
Scalable Software, Ltd

INDUSTRY ANALYSIS & CONSULTING© 2018 Enterprise Management Associates, Inc.
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Dependency Mapping, Inventory and Usage
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INDUSTRY ANALYSIS & CONSULTING3 © 2018 Enterprise Management Associates
Featured Speakers
Dennis Nils Drogseth, Vice President, EMA
Dennis joined Enterprise Management Associates in 1998 and currently manages the
New Hampshire office. Dennis brings several years of experience in various aspects
of marketing and business planning for service management solutions. He supports
EMA through leadership in IT Service Management (ITSM), CMDB systems, as well
as megatrends like advanced operations analytics, cross-domain automation
systems, IT-to-business alignment, and service-centric financial optimization. Dennis
also works over several practice areas to promote dialogue across critical areas of
technology and market interdependencies.
Will Degener, Director Product Management, Scalable
Software, Ltd
Will joined Scalable Software in January 2014 as a Senior Solutions Consultant and it
quickly became apparent that his background and experience was very suited to
assisting with product direction alongside his normal activities. 2018 brought an
opportunity to spend more time in the product management role. Will brings decades of
experience across various aspects of enterprise software solution delivery specifically in
the ITSM and ITAM space. His roles have included consultancy, product management
and even a little development too. Often acting as the bridge between the business
need and the software developers his skills lie in understanding need and translating
into a provisioned solution.

Logistics
An archived version of the event recording
will be available at
www.enterprisemanagement.com
• Log questions in the chat panel located on
the lower left-hand corner of your screen
• Questions will be addressed during the
Q&A session of the event
QUESTIONS
EVENT RECORDING
A PDF of the speaker slides will be
distributed to all attendees
PDF SLIDES

Agenda
• Demographics
• Organizational alignment for financial optimization—who should be
involved?
• What does ‘usage’ really mean? What is the most critical data?
• What key technology areas benefit from usage insights?
• CMDB/CMS
• Service catalogs
• Endpoint management
• Capacity optimization
• End-user experience management
• Portfolio planning
• Audits and Cloud
• Overall IT-to-business alignment
• Going forward: benefits and process planning

Demographics

Market Based Intelligence:
• “EMA Research Report: Optimizing IT for Financial Performance 2016.”
• “EMA Research Report: Next-Generation IT Service Management:
Changing the Future of IT,” June, 2017.
• “EMA Research Report: Integrating SecOps with Operations,
Development and ITSM in the Age of Cloud and Agile,” 2017.
• ”EMA Research Report User, Customer and Digital Experience
Management: Where Service and Business Performance Come
Together,” February, 2017
• “EMA Research Report: “What is the Future of IT Service
Management?” 2015.
• Best Practices for Optimizing IT with ITAM Big Data,” EMA, July 2015
• EMA IT consulting
7 © 2018 Enterprise Management Associates

Demographics – Companies
• 250 respondents
• 150 North America, 100 Europe
• Size:
• 250-999 employees: 35%
• 1,000-4,999 employees: 39%
• 5,000 and above: 26%
• Forty-three percent (43%) of respondents
represented one of these top five verticals:
• High-tech software
• Finance/insurance
• Retail/wholesale
• Education
• Manufacturing

Organizational Alignment
for Financial Optimization—
Who Should Be Involved?

Who Cares About Managing Costs and Hence
Needs Usage Data: Top Seven IT Affiliations
1. IT executive suite
2. IT operations planning and design
3. IT financial management
4. ITAM
5. Project and program management
6. Operations—network
7. IT Architecture

Usage is Key Across A Wide Variety of Initiatives
Average Stakeholder = 5 Areas of Involvement
46%
46%
44%
42%
39%
38%
38%
37%
35%
32%
29%
28%
25%
23%
1%
0%
0%
IT asset management
IT vendor management (service providers)
Financial planning for IT
IT vendor management (software and SaaS suppliers)
IT vendor management (hardware suppliers)
Software asset management/license management
IT-to-business alignment from a cost/value perspective
Assessing IT processes for opex efficiencies (may include staffing decisions)
Public cloud cost/resource optimization
Capacity planning and optimization for cost and value
Enterprise asset management/optimization and/or Internet of Things (IoT)
Application portfolio rationalization
Endpoint/mobile asset lifecycle management
GRC financial risk management
Other
None of the above
Don't know/refused
WHICH OF THE FOLLOWING AREAS ARE YOU INVOLVED WITH?

Is There a Single Organization
Leading IT Financial Optimization?
•68% claimed a single IT financial planning organization
across all areas.
• Which correlated strongly with success
•23% said that domains (network, systems, applications,
etc.) were managed separately.
•8% claimed that some domains were managed
together, but not all were

The IT Executive Suite is Most Likely to Lead in
Financial Optimization and Usage Planning?
17%
14%
13%
12%
7%
7%
5%
5%
5%
4%
3%
2%
2%
2%
1%
1%
0%
IT executive suite
IT operations
IT service management (ITSM)
IT asset management
Financial planning
Mixed IT and business team for IT financial optimization
Procurement/enterprise and IT
Procurement specifically within IT
Cloud planning/optimization for cost/resource (public/private or hybrid)
Software license management
Vendor cost management (service providers, suppliers, other costs)
GRC - financial risk management
Project Management Office (PMO)
No single organization is coordinating
Enterprise procurement
Endpoint/mobile management
Other
IF THERE IS A SINGLE ORGANIZATION COORDINATINGA STRATEGIC APPROACH TO IT
FINANCIAL OPTIMIZATION, WHICH OF THE FOLLOWING BEST DESCRIBES IT?

What Does ‘Usage’ Really
Mean? What Is the Most
Critical Data?

Understanding Usage
Usage means…
• Knowing where SW and HW come together through
superior inventory and discovery
• Knowing how much applications are being used (and by
whom) resident on end-user computers and mobile
• Knowing how much data-center-delivered applications
are being used (and by whom) across all devices

Understanding Usage -2-
• Usage means…
• Knowing how much cloud-resident (SaaS) applications
are being used (across all devices)
• Knowing the impact of usage on SW license
requirements
• Knowing the impact of usage on HW lifecycle
management
• Knowing the impact of usage for portfolio planning
• Knowing the impact of usage for IT/business
effectiveness

Customer Experiences with Asset Vision®
Five Key Data Points
• Asset Vision customers collect key, versatile data
points
• Who used what
• From where
• For how long
• How intensely
• They typically use this data for identifying
• Unused or Incorrectly used software and hardware
• This asset intelligence across the estate helps:
• IT executives drive down costs
• Empowers IT Operation Teams to facilitate change
• Address security and compliance concerns

Critical Usage Data
• Inventory/ discovery across the
application/infrastructure
• Dependency mapping across the
application/infrastructure
• Insights into public (and private)
cloud interdependencies
• Endpoint discovery and inventory
• Endpoint “ownership” groupings

Critical Usage Data -2-
• SW inventory and identification
• SW license T’s and C’s
• User activity data
• Corresponding cost-related information
• Corresponding performance-related information
• Correlated insights across all of the above

Providing Diverse Range of Intelligence
• Provides confidence in a trusted inventory
• Physical
• Virtual
• On Premise / In Data Centre / In Cloud – AWS / Azure
• Detailed usage intelligence
• How Users Interact with Software
• How Users Use Software on their Devices (Physical or
Virtual)
• Dependency Mapping
• How Machines Interact with One another

What Key Technology Areas
Benefit from Usage Insights?
CMDB/CMS
Service catalogs
Endpoint management
Capacity optimization
End-user experience management
Portfolio planning

Where Usage Can Reflect Back in Value:
Asset Data Priorities for a CMDB/CMS
1. Optimizing assets in cloud or hybrid cloud
environments
2. Inventory or discovery data
3. Lifecycle asset management data
4. Support for introducing new assets
5. Mapping assets to applications
6. Mapping services outside of those in a
service catalog or app store
7. Mapping services to operational owners

Service Catalogs and App Stores
• 35% had a service catalog.
24% had an app store.
23% had both a service catalog and an app store.
16% had neither, and 2% didn’t know.
• 66% included cloud services
• 26% planned to do so within at least 12 months
• 61% had cost and usage insights
• 21% planned to in 12 months
• 67% had some level of pricing
• Cost and usage insights
correlated strongly with success

Some Endpoint Highlights
• 40% had organizations using a balanced
mix of laptops and mobile devices
(phones or tablets)
• 42% still supported laptops only
• 3% supported primarily VDI
• 15% supported primarily mobile
• 73% tracked usage for reharvesting
SW licenses
• 52% would prefer to manage mobile as
an integrated part of endpoint
management
• 39% would target mobile spearately

Success in Financial Optimization and
“Tracking Usage for Desktop Applications”
Strongly Correlate
92%
5%
3%
71%
23%
6%
33%
58%
8%
Yes
No
Don't know
DOES YOUR ORGANIZATION TRACK USAGE FOR DESKTOP APPLICATIONS AND PERFORM
RE-HARVESTING OF UNUSED LICENSES? BY: HOW SUCCESSFUL DO YOU FEEL YOU'VE
BEEN TO DATE IN OPTIMIZING IT FOR FINANCIAL PERFORMANCE?
Extremely successful Very successful/ successful Somewhat successful/ generally unsuccessful

“Extremely Successful” In Optimizing IT for Financial
Performance Focused on More Areas of Capacity
Utilization
35%
35%
30%
30%
29%
27%
27%
27%
27%
5%
0%
Systems utilization
Optimizing infrastructure for virtualization
Network utilization and costs
Optimizing third party resources not including telecom (e.g. hosted
data center)
Telecommunications costs
Application utilization (chargeback, maintenance optimization, etc.)
Op ex-costs associated with developing, provisioning, and
or/managing specific services
SaaS on a per usage basis
Public cloud-specific capacity and utilization
We do not measure capacity in terms of dollars and cents
Other
WHAT AREAS OF CAPACITY AND UTILIZATION DOES YOUR COMPANY CURRENTLY
MEASURE IN TERMS OF DOLLARS-AND-CENTS PLANNING SO THAT IT CAN
CONTRIBUTE TO A BROADER FINANCIAL OPTIMIZATION STRATEGY?

Usage Insights Are Critical to Digital
Experience Management
• What Are Organizations Actively Doing for Digital
Experience Optimization (End-User and Customer)?
• Business impact/business outcomes
• Application/transaction performance
• Usage (understanding usage by application type and user
group to understand relevance and value)
• Change management/ DevOps
• Design (monitoring and optimizing effective design)
• User productivity/user errors

Where Has Digital Experience Management
Become More Important/Relevant?
1. IT Portfolio Planning (37%)
2. Application Performance Management (37%)
3. In Support of Agile Initiatives (34%)
4. In Support of Business Development and
Customer Management ( 30%)
5. In Support of the Move to Cloud (30%)

Provides Insight To Facilitate Portfolio Management
• Inventory with multi-layered usage provides
• Critical migration planning data
• Visibility of true application need
• Facilitates application rationalization
• Provides usage information for critical legacy SW
• Candidates for Virtualization / Containerization
• Identify Cloud Users
• User who could be migrated to low power / web based OS
• Hardware refresh and retirement

Audits and Cloud

Time Lost to Audits
• On average, respondents spent
nearly 30 hours assimilating
inventory data for a major SW
license or compliance audit
• 12% spent less than 10 hours in prep
• 24% spent more than 40 hours in prep
• Large companies are more likely to
spend more time preparing for audits:
32% spend more than 50 hours vs. 13%
of mid-tier and 4% of small
• In addition, the average respondent
nearly the same amount of time (30
hours) collecting asset entitlement
data for a major audit

An Average Respondent Spends more than
30% of the IT Budget on Public and/or Private
Cloud Services
2%
24%
33%
25%
9%
8%
We are not spending on cloud services
1-20% IT Spend
21-40% IT Spend
41-60% IT Spend
61-80% IT Spend
81-100% IT Spend
WHAT PERCENTAGE OF YOUR TOTAL IT SPEND IS ON CLOUD
SERVICES (PUBLIC OR PRIVATE)?

Top Cloud Challenges for Optimizing IT
for Financial Performance Were…
1. Security/compliance issues for audits
2. Security (other)
3. Understanding software and application usage
across lines of business
4. Identifying performance or other quality issues in
cloud-delivered services
5. Optimizing a mixed SaaS and on-premise
application portfolio

Cloud Inventory and Shadow IT
• Power of single view for all assets
• Understand Virtualized Estate
• What are you Paying For versus used?
• Should we be On-Demand?
• What benefit is there to Long Term Reservations?
• Understanding Web App Usage
• Who is using / not using Web Based applications
• Compliance and security is a serious concern
• What is the impact of “Shadow IT”?
• Multiple subscriptions of the same SaaS applications
• Unmanaged or unexpected costs
• Security with services like Dropbox and others

Overall IT-to-Business
Alignment

The Top IT/Business Management
Capabilities Were…
1. IT financial planning analytics
2. Executive dashboards for sharing information across IT
3. IT governance analytics targeting ITSM efficiencies
4. Executive dashboards for sharing information between IT
and business stakeholders
5. Workflow for processes linking IT and the business
6. Social media for improved dialog between IT and the
business

Top Financial Planning Metrics
1. IT CapEx costs
2. The costs of delivering services internally
3. IT OpEx costs
4. Internal and external costs for delivering IT services
5. ROI and TCO
6. Security-related to minimize business risks
7. Cost of delivering IT services externally

Going Forward: Benefits and
Process Planning

Top-Ranked Strategic Priorities for Usage-
Relevant Financial Optimization
16%
14%
10%
10%
8%
7%
7%
7%
6%
6%
5%
5%
0%
Optimizing IT process efficiencies
Improving overall IT to business alignment from a cost/value perspective
Becoming more proactive in dealing with audits (software, GRC, etc.)
Managing and optimizing endpoint/mobile assets
Lifecycle planning of IT application services from a cost/value perspective
Managing and optimizing IT HW and/or SW assets across their full lifecycles
(introduction through retirement)
Managing partners/suppliers as integrated resources
Providing data to help enable the business to participate in IT investment decisions
Lifecycle asset management for the Internet of Things (IoT) (IT or enterprise)
Optimizing the move to public/private cloud
Consolidating silo-based asset management into a more holistic, cross-domain view
Managing vendor/service providers as integrated resources
Other
WHAT IS YOUR COMPANY'S TOP IT FINANCIAL OPTIMIZATION PRIORITY?

Top 10 Challenges for Optimizing IT
1. Operational inefficiencies
2. Incomplete data
3. Fragmented technologies
4. Lack of analytics in optimizing data from IT assets
5. Poor data quality

Top 10 Challenges for Optimizing IT
1. Operational inefficiencies
2. Incomplete data
3. Fragmented technologies
4. Lack of analytics in optimizing data from IT assets
5. Poor data quality
6. Sharing data effectively across IT silos
7. Low or inadequate levels of automation
8. Fragmented/siloed technologies
9. Unable to measure op efficiencies
10.Communication/process issues

Top Seven Targeted Benefits of Usage-
Related Financial Planning Insights
1. Improved OpEx efficiencies overall
2. Improved efficiencies in SW license audits
3. Superior optimization of endpoints from an asset
management perspective
4. Improved capabilities to assimilate public cloud
resources
5. Improved IT-to-business alignment/ improved
visibility of the business contribution of IT
6. More effective IT staffing
7. Improved capacity optimization and planning

IT to Business Alignment
• Improved financial performance with a fast ROI
• Software Harvesting
• Application Rationalization
• CRE Usage Analysis
• Fixes operational inefficiencies
• Using Inventory and Usage to maintain equilibrium
• Keeping the estate lean and healthy
• Ensuring optimal operational expenditures
• Fills the gap of incomplete and poor data quality
• Consolidates fragmented technologies

In Summary
Optimizing IT financial
performance requires usage
insights applied with a
willingness to consider both
the challenges and the
benefits in multiple
dimensions and make
investments accordingly.
Traditional ways of
thinking, and traditionally
siloed IT organizations are
all obstacles to tackling
this broader requirement
head on.

Question and Answer: Log Questions in the
chat panel located on the lower left-hand corner
Request a demonstration of Asset Vision at:
https://www2.scalable.com/lp_demo_request_ws

Take Charge of Your Cloud Migrations with Dependency Mapping, Inventory and Usage Insights

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