Welcome!

@CloudExpo Authors: Elizabeth White, Zakia Bouachraoui, Liz McMillan, Pat Romanski, Roger Strukhoff

Related Topics: @CloudExpo

@CloudExpo: Article

The Enterprise IT Economic Model Blueprint for the Cloud

Standardizes 5 key components of an organization’s operational model into a pipe and filter process

The Economic Model for Enterprise IT can be thought of as the Business & IT linkage of demand and supply. In particular, it is the interactive dynamics of consumption of IT resources by the business and the fulfillment behavior of processing by IT.

An economic model blueprint for Enterprise IT must orientate service delivery (people, process and technology) as a digital supply chain. This supply chain must adhere and be managed against the IT economic model.

The blueprint for an enterprise IT economic model - standardizes 5 key components of an organization’s operational model into a pipe and filter process that creates a continuous loop system that generates an objective and agile mechanism to drive change. The 5 key components are:

Demand Management – the continuous identification, documentation, tracking and measuring of day in the life of the business, what they expect, where there are problems today, and understand sensitivities to cost, bottlenecks, and timing constraints. In particular, service contracts defined in natural language that identify users, entitlement, expectations, geography, critical time windows, special business calendar events, and performance defined in terms of user experience.

Supply Management – the continuous identification, documentation and tracking through instrumentation to capture “objective” factual data of which users, using what applications, consume what app, server, network bandwidth, network QoS and storage resources for how long. Ensure you trend this over a period of time to accurately identify peaks, valleys and nominal growth.

Fit for Purpose Policies – It is essential that organizations trying to build a real time infrastructure or at least a more responsive IT platform and operation, incorporate an operating level of policy management of how the IT platform matches supply and demand at runtime. This should include factors of wall clock, trends, and service contract requirements matched optimally against runtime supply management trends. It is this operating level discipline that can radically reduce waste, unnecessary costs, lower capital investment WHILE improving service levels. It is here that most organizations fail to implement, execute or adopt such a granular discipline, instead firms standardize infrastructure from bottom up, use rule of thumb sizing and define service levels in terms of recovery time objectives or availability only.

Role of ITIL/ITSMF – ITIL 3.0 and the IT Service Management Framework are excellent guides for creating consistent end to end processes related to delivery IT as a service. They are not in themselves the sole answer to resolving IT service problems or quality of delivery. Firms must still resolve issues of alignment and strategy, define sound architectures, implement dynamic infrastructures BEFORE ITIL can have its ultimate impact on end to end process delivery.

Sustaining Transparency - Many IT organizations miss the mark when it comes to meeting and exceeding business expectations due to lack of transparency. The key components outlined above can contribute significantly to creating transparency with the business related to IT delivery of service on their behalf.

It is critical that IT organizations institute a discipline of tooling, data capture, reporting procedures and intelligent blueprinting that consistently and accurately communicate to the business a complete transparent view of what, how, who related to the consumption of IT by the business and the delivery of service by IT.

It can’t be emphasized enough how important it is that this kind of playbook must be instituted by the CIO’s office and executed by the leaders of the IT organization – if they want to enhance the collaboration with the business and become a more strategic and integral part of building the business.

More Stories By Tony Bishop

Blueprint4IT is authored by a longtime IT and Datacenter Technologist. Author of Next Generation Datacenters in Financial Services – Driving Extreme Efficiency and Effective Cost Savings. A former technology executive for both Morgan Stanley and Wachovia Securities.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


CloudEXPO Stories
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected path for IoT innovators to scale globally, and the smartest path to cross-device synergy in an instrumented, connected world.
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
ScaleMP is presenting at CloudEXPO 2019, held June 24-26 in Santa Clara, and we’d love to see you there. At the conference, we’ll demonstrate how ScaleMP is solving one of the most vexing challenges for cloud — memory cost and limit of scale — and how our innovative vSMP MemoryONE solution provides affordable larger server memory for the private and public cloud. Please visit us at Booth No. 519 to connect with our experts and learn more about vSMP MemoryONE and how it is already serving some of the world’s largest data centers. Click here to schedule a meeting with our experts and executives.
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understanding as the environment changes.
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the modern business digitalization solutions. Achieve up to 50% early-stage technological process development cost cutdown with science and R&D-driven investment strategy with Codete's support.