Digital Transformation Asset Management

Cloud Computing as a Strategic Asset

By G C Network | April 30, 2009

For some reason, this week seems to have more in it than most. While the steady stream of briefing request seem to be increasing, the post briefing discussions also seem…

Vivek Kundra: “Engage the American People in their Daily Digital Lives”

By G C Network | April 25, 2009

Today I attended a very impressive talk by the Federal CIO, Mr. Vivek Kundra at a Northern Virginia Technology Council Public Policy event. His open and “matter of fact” approach…

McKinsey vs. Booz Allen Hamilton !

By G C Network | April 21, 2009

A community skirmish reminiscent of the recent “manifestogate” has apparently erupted around the McKinsey & Co. report “Clearing the air on cloud computing“. Booz Allen Hamilton Principals Mike Cameron and…

Oracle Buys Sun!!

By G C Network | April 20, 2009

Swooping in from nowhere, Oracle buys Sun for $7.4B!! “This morning, the companies announced that they’d struck a deal worth $7.4 billion or $5.6 billion net of Sun’s cash and…

Aneesh Chopra Nominated For Federal CTO

By G C Network | April 20, 2009

Although Aneesh Chopra is a new name for most, he is well know in Virginia as Governor Tim Kaine’s Secretary of Technology. For the Commonwealth, he was charged with leading…

Could Cloud Computing Cost More?

By G C Network | April 16, 2009

In a recent conference, analyst William Forrest says that large companies could end up paying more than twice as much by using cloud based services. According to a Forbes.com report,…

Cisco’s Cloud Computing Strategy

By G C Network | April 10, 2009

A couple of weeks ago, Krishna Sankar provided a glimpse into Cisco’s cloud computing strategy in a presentation titled “A Hitchhiker’s Guide to the Inter-Cloud” . The presentation outlined the…

NCOIC and Cloud Computing: An Update

By G C Network | April 8, 2009

As the NCOIC gets it’s arms around this new paradigm, the Cloud Computing Working Group has focused on establishing a roadmap for providing value to the industry. Using the established…

SUN-IBM Talks Breakdown

By G C Network | April 6, 2009

As reported in multiple sources today, including Reuters, Sun has apparently rejected a purchase offer by IBM. “Shares of Sun Microsystems Inc tumbled 22.5 percent after it rejected a $7…

Former DoT CIO on Cloud Computing

By G C Network | April 3, 2009

Last month, former Transportation Department CIO Dan Mintz offered his views on cloud computing to Eric Chabrow, Managing Editor of Government Information Security. According to Mr. Mintz, there is currently…

Today’s businesses run in the virtual world. From virtual machines to chatbots to Bitcoin, physical has become last century’s modus operandi.  Dealing with this type of change in business even has its own buzzword – Digital Transformation.  From an information technology operations point of view, this has been manifested by organizations increasingly placing applications, virtual servers, storage platforms, networks, managed services and other assets in multiple cloud environments.  Managing these virtual assets can be much more challenging than it was with traditional physical assets in your data center.  Cost management and control are also vastly different than the physical asset equivalent.  Challenges abound around tracking and evaluating cloud investments, managing their costs and increasing their efficiency.  Managers need to track cloud spending and usage, compare costs with budgets and obtain actionable insights that help set appropriate governance policies.

The cloud computing operational expenditure (OPEX) model demands a holistic management approach capable of monitoring and taking action across a heterogeneous environment.  This situation is bound to contain cloud services from multiple vendors and managed service providers.  Enterprises also need to manage services from a consumption point of view. This viewpoint looks at the service from the particular application down to the specific IT service resources involved, such as storage or a database. Key goals enterprises need to strive for to be successful in this new model include:

 

  • Obtaining ongoing visibility into true-life cloud inventory;
  • Viewing current and projected costs versus industry benchmarks;
  • Establishing and enforcing governance control points using financial and technical policies;
  • Receiving and proactively responding to cloud cost and operational variances and deviations;
  • Gaining operational advantages through advanced analytics and cognitive computing capabilities;
  • Simulating changes to inventory, spend goals and operational priorities before committing;
  • Managing policies through asset tagging across providers and provider services; and
  • Identifying and notifying senior managers about waste and opportunities for cost savings.

Accomplishing these goals across a hybrid IT environment will also require timely, accurate and consistent information delivery to the organizations, CIO, CFO, IT Financial Controller and IT Infrastructure and Operations Managers.  Ideally, this information would be delivered via a “single pane of glass” dashboard.

One path towards gaining these capabilities would be through the use of a cloud services brokerage
platform like IBM® Cloud Brokerage Managed Services – Cost and Asset Management. This “plug and play” service can assist in the management of spending and assets across hybrid clouds by visualizing data that provides focus on asset performance.  Through the use of predictive analytics, it can also provide insight-based recommendations that help in the prioritization of changes according to their expected level of impact.  Analytics enables an ability to recalibrate cost by comparing planned versus actual operational expenditures.  The built-in cloud service provider catalog, pricing, and matching engines can also help organizations find alternative providers more easily.  Using IBM Watson® cognitive capabilities, IBM Cloud Brokerage Managed Services – Cost and Asset Management will also highlight cloud best practices and expected results based on IBM’s rich knowledge base of cross-industry cloud transition experience.

Operating a business from a virtual IT platform is different.  That is why advanced cost and asset management skills, capabilities and tools are needed.  According to Gartner, more than US$1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years. This makes cloud computing one of the most disruptive forces of IT spending since the early days of the digital age.  You and your organization can be ready for these tectonic changes by implementing the straightforward five-step process supported by IBM Cloud Service Brokerage capabilities:

 

  1. Establish governance thresholds and policies for services;
  2. Connect the advanced management platform across all cloud service accounts;
  3. Track the costs of the services, including recurring and usage-based costs;
  4. Enforce compliance on the costs and asset usage using the purpose-built cost analytics engines; and
  5. Simulate and optimize the control and compliance actions and better control your costs.

 

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