Part 3 of the Cloud Business Management Series
By Khalid Hakim, Kai Holthaus and Bill Irvine
In our last cloud operations business transformation blog, we talked about the cloud business strategy and its importance in formulating the vision and the plan as to how you want to run your cloud as a business. In today’s blog, the focus begins to shift to executing the strategy and laying out the foundations of a service-oriented and business-driven “operating model”.
There is a saying: you can’t manage what you can’t control, and you can’t control what you can’t define. Imagine that you are planning to open a new business. The first step is to define what services/products you want to offer your consumers and what distinguishes your market value among the others. Similarly, cloud business management starts at this point. IT should identify and define what cloud services would be offered to its consumers in order to truly drive a services-oriented and value-driven organization.
Key Areas of Services Definition
VMware recommends a unique approach for defining cloud services, through which a service owner defines a 360-degree view of how the cloud services would be established, managed and delivered effectively and efficiently to meet or exceed the expected value. To paint this panoramic view, cloud service owners should consider the following areas:
- Service Overview – describe the service in terms of its purpose, goals, consumers, criticality, availability criteria and rhythm of business.
- Virtual Service Team – organize your team members around the services you deliver. Team up as a virtual service team.
- Service Chart – map out the end-to-end cloud service in a graphical representation that is easy to consume. The service chart helps to visually understand the core components of a service and contributes when costing services.
- Service Portfolio and Consumer Management – the service portfolio answers the questions, who are our customers and why should they buy the service from us. It contains all of the service categories and the business units that consume them and aids with making informed “service” and “business” based investment decisions.
- Service Design and Development – provide high level information about how the services will be designed and developed, especially if the service isn’t yet in production. This helps with understanding the customer business need and developing the most valuable solution possible.
- Service Catalog Management – identify service catalog structure parameters and possible blueprints. Also, define what columns or key fields should be included in service catalog entries.
- Service Level Management – define key SLA/OLA targets to ensure provisioning time and quality meets specific business needs.
- Service Desk Management – describe how the service will be supported. Draft a plan for service-desk requirements, skills needed and required knowledge transfer.
- Proactive Operations Management – define the service operation requirements for support and reliability from the event and performance monitoring to availability, demand, capacity, continuity and security management.
- Provisioning and Change Management – define the service provisioning lifecycle and associated change management policies including how the service will be pre-approved and auto-provisioned (for maximum efficiency). New leaner change management workflow needs to defined / refined (i.e. standard changes).
- Service Financial Management – define the service cost and charge back/ show back model along with pricing and connections to the service catalog.
- Service Performance and KPIs – define any applicable service related strategic, tactical and operational performance indicators (KPIs), and the metrics that will be collected to demonstrate that required performance was achieved. Also define how and when the KPIs and metrics will be reported, and to whom.
- Service Reviews – define service-based review meetings to discuss and remediate any operational or consumer related topics. Follow a standard cadence for all services. Discuss potential changes in demand for services. Capture new or enhanced service requirements.
- Service Marketing – define the key applicable service marketing elements for a successful service promotion and value realization within different company cultures.
Now, how long do you think this exercise will take? In most of our engagements, defining a service takes between 1 to 2 weeks. It is never intended to fully document all the areas above immediately, or establish all of the processes, as many organizations don’t have this all of this information available. Think of the Service Definition as a living and breathing document. The service owner should establish a working draft, develop it to the point of release and then maintain in for its life as an active service offering. All undefined services are treated as areas for improvement.
In our next blog, we will take this to the next level as we learn to establish a cloud service-based cost model and cost out cloud services end-to-end. This will enable you to understand the cost of a unit of a cloud and provide the required level of cost transparency internally and to consumers.
Khalid Hakim is an IT Business/Financial Management Lead with the VMware Operations Transformation global practice. You can follow him on Twitter @KhalidHakim47.
Kai Holthaus is a Sr. Transformation Consultant with VMware Operations Transformation Services and is based in Oregon.
Bill Irvine is a Principal Strategist with VMware Accelerate Advisory Services and is based in Colorado.