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5 Ways Cloud Automation Drives Greater Cost and Operational Transparency

By Kevin Lees

Kevin_cropThere has always been tension between IT teams and their end customers — not the good kind of tension, but rather the contentious kind that rarely ends well.

It breaks down like this: IT never believes it has enough time, resources, or money; and the line of business (LOB) really doesn’t understand what they want. On the other side, the LOB is rarely happy with IT because response times aren’t fast enough or IT is missing the mark with its capabilities.

This tension leads to inefficient use of resources, both equipment and people. Shadow IT happens when those outside of IT take matters into their own hands and shirk IT policies and procedures. This can mean inefficiencies in the allocation of capital because finance is challenged to track exactly what it costs for IT to deliver. This becomes especially difficult in a shared resource environment, and it will only get more challenging as we move to a fully virtualized stack as defined by the software-defined data center (SDDC).

This can lead to all sorts of problems, fostering mistrust, lost profits, and lost opportunities. You get the idea.

In this post, we’ll explore key ways that cloud automation is critical to fulfilling the promise of cloud and how automation provides opportunities to practice cost and operational transparency as a way to help drive business alignment.

The Promise of Cloud Management
Cloud holds great promise and great responsibility. It provides many advantages to both IT and its stakeholders, but without effective cloud management and automation, the true value will never be realized.

This is true regardless of the type of cloud, whether private enterprise cloud, an external cloud provider, or a hybrid cloud.

As the figure below shows, there are five areas to focus on that not only provide opportunities to drive business alignment, but also provide opportunities to practice the cost and/or operational transparency needed to gain the business stakeholder’s trust:

5 Ways Automation-Lees

  1. Service quality: The business has to know it can count on the service it’s consuming.
  2. Predictability: Of course, the service has to be predictable. Outages are unacceptable.
  3. Agility: The business needs to quickly react to changing business conditions or proactively get to market before the competition, so IT needs to keep up.
  4. Smart economics: It also has to be cost effective. If it’s not, shadow IT rears its ugly head, and any degree of governance as well as economy of scale efficiencies dissipate into the cloud, outside of IT’s control.
  5. Clear communication: Business stakeholders have to truly understand what they’re getting and how much flexibility of choice is available to them.

That said, IT cannot deploy and run an effective and successful cloud in a vacuum. A truly successful cloud, one that adds real business value, requires alignment among IT, LOB, and finance. It requires a lot of interaction, listening, discussing, and agreeing. Yes, there will be trial and error.

Fortunately, one of the big benefits of cloud when done right (namely agility) is the ability to fail fast, fail often, and try something else.

With alignment and the clear communication required to achieve it:

  • IT can provide solutions and services that add value to the business by meeting its needs, because business is involved in the service definition.
  • LOB stakeholders will have a much better idea of what they’re getting and know it will meet their needs.
  • Finance will understand service costs within a business context to make more informed decisions about how to maximize the budgets and ensure a degree of cost predictability.

If all goes well, the end result is trust and business alignment between the parties.

One final note for IT: you desperately need to take a course in Marketing 101. IT needs to get better at advertising its services and demonstrating its value add so everyone knows what an asset the group is. At VMware, this is something we address explicitly when we help IT customers set up their processes for defining, costing, and offering cloud-based services to their LOB market. Taking a technical service to LOB market is no different than the business taking a service to market. Would they do that without proactive marketing? I don’t think so.

If you found this post helpful, stay tuned for future posts on this topic. Next time, I’ll offer my thoughts on ways to turn IT’s “trust debt” into true business alignment through greater transparency, agility, and technical alignment.

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Kevin Lees is Global Principal Architect, Operations Transformation Practice. Follow @VMwareCloudOps on Twitter for future updates, and join the conversation by using the #CloudOps and #SDDC hashtags on Twitter.