Learn about critical IT Service Management challenges and engage with featured Gartner Analyst, Jarod Greene, and FrontRange Director of Product Marketing, Craig Ledo. Walk away with actionable advice that will enable you to maximize efficiencies with reduced cost and complexity. This webinar takes an in-depth look at the evolution of IT Service Management (ITSM), current trends and where the technology is going. Hear how flexible deployment options (on-premise, cloud or hybrid - combining on-premise and cloud) and the need for a single solution that meets your needs at every level of ITSM maturity is critical to helping your organization maximize operational efficiencies, reduce IT Costs and improve service quality and compliance. Watch the full webinar: http://www.brighttalk.com/webcast/8533/57723

1. Hybrid ITSM—Because having only one
option isn’t an option
Jarod Greene, Sr. Research Analyst, Gartner
Craig Ledo, Sr. Director Product Marketing, FrontRange Solutions
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 1

2. Hybrid IT Service Management –
Because Having Only One Option
Isn’t An Option
Jarod Greene
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

3. The Need for New Tools
• IT infrastructure and operations
management organizations
typically replace tools every
5 years.
• In the last 5 years, the total
software revenue for IT
operations management tools
was $70 billion.
• In the next 5 years, IT
organizations will spend a
forecast estimate of $100 billion.

4. Evaluate Minisuites of Tools
IT Operations Management Tools
Network Fault Monitoring, Network Performance Mgmt., ECA,
Availability & Performance
Virtualization and Cloud Management
BLE, APM, Service-Level Reporting, Capacity Planning, BSM
SDM, CMDB, Server Provisioning, Network Configuration,
Configuration & Provisioning Configuration Auditing
Workstation Virtualization, HVD, Mobile Device Mgmt.,
End-User Mgmt. PC App. Streaming, PCCLM, Application Virtualization
ITPA Tools, Jobs Scheduling, App. Release Automation,
IT Process Automation (ITPA) Workload Automation Broker
IT Service Desk, Release Governance, Service Request, ITAM,
IT Service Support Mgmt. Self-Service Portal, Change Management
IT Service Portfolio, IT Service Catalog, IT Financial Mgmt.,
Service Portfolio Mgmt. Service Billing, Service Request Management
Backup/Restore, SAN Fabric, Storage Array, Storage Perform.
Storage Mgmt. and Provisioning, Business Continuity, Data Archiving

5. IT Service Management Challenges
Mobility Social Networking Information Cloud Computing
•BYOD •Mass Collaboration •Big Data •Flexibility in Sourcing
•Always On •Feedback Mechanism •Advanced Analytics •Expanded Business
•24/7 Support Required? •Collective Intelligence •Context Aware Functionality
•Expertise Identification
IT service support has to modernize to account for changes in complexity
of IT services and in business expectations.
5

6. IT Service Support Management Tools
Introducing IT Service Support Management Tools!
• More focused on IT service support – Tier 1 and Tier 2.
• Tighter integration of functions that correlate with the
activities of the broader IT support organization.
• Leverage a business view of the IT services.
• Improves root cause isolation, issue resolution, and
escalation accuracy.
• Enhanced emphasis on mobility, social collaboration, and
information analytics.
6

7. IT Service Desk Tool Evolution
IT Service Support
Management Tools
•Industry Best Practices in
Place
IT Service Desk •Day to Day Processes
Mature
•Looking at Industry
Best Practices •Service SLA’s
Basic Ticketing •Formal Processes •Process Automation
•Reactive Culture •Tiered Support •Systems Management Tool
•Ad-Hoc Processes Integration
•Consolidation/
•Low Customer Sat. Standardization •Trusted Service Provider
7

8. IT Service Desk Tool Evolution
IT Service Support
Management Tools
•Incident, Problem, Change,
Release
IT Service Desk •IT Asset Management
•Incident, Problem, •Service View CMDB
Basic Ticketing Change Management
•Service Catalog
•Issue Management •IT Self Service
•IT/Business Value Analytics
•Asset Repository •SLA Management
•Mobility
•Reporting •Service Request
Management •Social Collaboration
•Knowledge DB
8

9. Market Segmentation: I&O Maturity
With nearly 500 complete self-assessments (and 500 on at least
one dimension), average I&O maturity is 2.25 on a scale of 5
60
Level 3 (proactive) is the
50 minimum acceptable goal;
otherwise, costs are too
40
high and quality and agility
30 are too low.
20
10
0
0-Survival 1-Awareness 2-Committed 3-Proactive 4-Service-Aligned 5-Business
Partner
People Process Technology Business Mgmt. Overall I&O Maturity
9

10. Time and Effort Greater at 2, 3, and 4
Critical Success Factors:
• Senior management commitment 5
• Persistence and patience Business
• Culture of continuous improvement 4 Partnership
Resources and Effort
• Staffing perform while transforming Service-
Aligned
• Funding
• New metrics
3
Proactive
2
1 Committed
0
Awareness
Survival 10 Time

11. ITSSM Tool Value Depends on Maturity
1 2 3 4 5
Service- Business
Awareness Committed Proactive Aligned Partnership
SaaS License Cost Remains Steady
Unused Tool
Unused Tool
Unused Tool
Unused Tool
Service
Service
Portfolio
Portfolio
Service Service
Catalog Catalog
Release
Release Release
ITOM Breadth
Asset
Asset Asset
Configuration Configuration Configuration Configuration
Management Management Management Management
Change Change Change Change
SLA SLA SLA SLA
Management Management Management Management
Problem Problem Problem Problem Problem
Service Service Service Service Service
Request Request Request Request Request
Incident Incident Incident Incident Incident
Time to Maturity

12. Calculate the Total Cost of New Software
• Software Licenses • IT Administration and
Maintenance Integrations
• Additional Software Costs
• Upgrades
- Connectors, Admin Licenses,
Staging/Testing environments - Think major hardware and software
upgrades every 2-3 years.
• Hardware
• People Training
- Servers, Backup, DR, Networking
• Process Re-engineering
• Implementation Costs
- The cost of implementation to the
• Opportunity Costs
cost of software is between .5:1 to • Replacement or Exit Costs
2:1.
- Calculate how soon before this
• Cost of Shelfware product needs to be replaced.
• Vendor Support and • Vendor Management
Maintenance - IT and procurement costs
- 18% to 22% of the discounted
price.

13. Don't Just Assume SaaS Is Cheaper
SaaS model tools can be 1/4 to 1/2 the cost of a comparable perpetual
tool in the first year. However, in subsequent years, the cost of SaaS
may actually surpass the perpetual model.
Software Costs Implementation Costs
• Potential SaaS charges for sandbox and • SaaS implementations will save 2-8
testing environments, storage and weeks of implementation costs.
reporting. • SaaS tools have to be configured at a
• Support and maintenance fees. cost comparable to on-premises tools.
• Potential SaaS licensing increases. Administration Resources
Vendor Management • Ongoing administration of SaaS and on-
• Additional resources will be needed to premises tools are comparable.
manage SaaS vendors. • Include administration of infrastructure.
Upgrade Costs Infrastructure Costs
• SaaS tool upgrades still require planning • Include cost for servers, databases,
and testing resources. storage, networking, DR, staging, etc.
• Incorporate the cost of upgrading the on- • Calculate the cost of upgrading this
premises tool every 2-3 years. infrastructure hardware.

14. Break Even Point for Software Licenses
14

15. SaaS Accelerates Useful Lifecycle
What is the expected useful life timeline for the
new service desk tool suite?
Perpetual License Model Software as a Service Model
Capital Budget Operational Budget
High Initial Outlay Low Costs in First Few Years
Additional ITSM Tools Available Additional ITSM Tools Included
Pay Maintenance & Support Ongoing Maintenance & Support Included
Customer Responsible for Vendor Primarily Responsible for
Infrastructure HW and SW Upgrades Infrastructure HW and SW Upgrades
Average 5-Year Useful Life Cycle Average 3-Year Contract Term
Work to understand YOUR specific costs of the various
models over the life cycle of the tool
15

16. Recommendations
• Determine your IT I&O Maturity Level
• Develop a systematic, prioritized road map for
continual and long term IT I&O improvement
• Make a coordinated ITSD or ITSSM tool decision
that relates to your IT I&O Maturity Level.
• Weigh the advantages and disadvantages of
perpetual vs. SaaS when choosing a new tool.
• Build a 5 Year TCO analysis of perpetual vs.
SaaS licensing models.
16

17. An Overview of FrontRange
Craig Ledo
Senior Director, Product Marketing

18. FrontRange At A Glance
• Global leader in Hybrid IT Service Management (ITSM) solutions
Company • 20+ years of technology leadership
• Only ITSM provider that delivers Service Management solutions
Product with fully integrated Voice Automation and Client Management
capabilities on-premise and in the cloud
• HEAT manages millions of service interactions a day for more
Customers than 15,000 leading organizations of all sizes around the world
• Based in Silicon Valley, CA
Headquarters • Offices and partners in 45+ countries worldwide
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 18

19. Sample Customers
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 19

20. HEAT Service Management
Platform
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 20

21. HEAT Integrated ITSM Solution
Service Management: Client Management:
• Incident Management • Software Deployment
• Request Management • Software Packaging
• Problem Management • Process Automation
• Change Management • Compliance Enforcement
• Release Management • OS Deployment & Migration
• Service Level Management • Patch Management
• Configuration Management • Software Updates & Re-visioning
• Knowledge Management • IT Audit & Inventory Management
• Self Service • Mobile Device Management
• Mobile Field Service • Server Management
• Inventory Discovery • License Management
• Visualization Mapping • Remote Control
• Workflow & Voice Automation • Virtualization Management
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 21

22. HEAT ITSM Process Lifecycle
HEAT Cloud
Hybrid
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 22

23. HEAT Solutions for Each Stage of
ITSM Maturity
LEVEL 3 - 5: Advanced
Integrated Service & Client Management
solutions including: Workflow based
platform, Voice Automation, and Desktop
and Server Management
LEVEL 2: Intermediate
VALUE
Service & Client Management solutions
including: Self Service & Service Catalog,
Discovery and Infrastructure Control
LEVEL 1: Basic
Help Desk & Ticket Management
solutions built for cloud or on-premise
TIME
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 23

24. The HEAT ITSM Solution Difference
• Standardize on single service management solution with ―fit-
for-purpose‖ cloud and on-premise deployment models
FLEXIBLE
• Allows for the use of both operating and capital expense
budgets (including a hybrid option that leverages both)
• Most advanced ITSM solution in the world with fully
integrated voice-enabled capabilities
ADVANCED
• Enhances efficiency and reduces service resolution costs by
up to 70%
• End-to-end, integrated client management capabilities
COMPLETE enables the standardization of business processes
• Improves the mean time to repair (MTTR) by up to 75%
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 24

25. Business Value
Maximizes Operational Improves Service Quality
Reduces IT Costs
Efficiencies and Compliance
95 %
85
80 % 80 %
%
75 %
70 %
Reduced
Reduced downtime Reduced Reduced
time spent due to total cost number
Reduced on unplanned of of status Reduced
service application or ownership calls trouble-
desk call deployment unapproved (TCO) received shooting
volume by by up to changes by costs by up by up to efforts by
up to 80% 95% up to 75% to 70% 80% up to 85%
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 25

26. Summary
• Next generation solutions must allow for:
• Cloud and on-premise deployment models
• Provide for every stage of ITSM maturity
• Bridge the service / client management divide
• Allow for deployment outside of traditional IT
• Why HEAT from FrontRange?
• Global leader in Hybrid ITSM solutions for enterprises of all
sizes
• Only ITSM provider that delivers Service Management with
fully integrated Voice Automation and Client Management
• HEAT is the most flexible, advanced and complete ITSM
solution that fits every phase of the ITSM Maturity Model
• HEAT manages millions of service interactions a day for
more than 15,000 leading organizations around the world
• Our customers deliver world-class service while maximizing
operational efficiencies with reduced cost and complexity
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 26

27. An Overview of FrontRange
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 27

28. For more information: Visit Us at: www.frontrange.com.
©2012 FrontRange. All rights reserved. Proprietary & Confidential. 28