IT Service Management and Cloud Computing White Paper
IT Service Management and Cloud Computing White Paper
IT Service Management and Cloud Computing White Paper
cloud computing
AXELOS.com
White Paper
September
2014
Contents
1
Overview 3
2 What is ITIL? 3
3 What is cloud computing?
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10 Summary 13
References 13
About the author 14
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About AXELOS 14
Reviewers 15
Acknowledgements 15
Trade marks and statements 15
1 Overview
This white paper sets out to describe at a high level what cloud computing is, how cloud computing is a
disruptive innovation and what this means to IT organizations across the globe. Under examination will
be the effect of cloud computing on existing IT management practices, including IT service management
(ITSM) and ITIL best practices.
The paper contains a number of real-life examples where current approaches require some adaption to
cater for cloud computing. The summary concludes with an approach on how an IT organization can
retain its current ITIL best practices in an environment using and adopting cloud computing and cloud
based services.
What is ITIL?
ITIL is the most recognized framework for IT service management in the world. Delivering a cohesive
set of best practice guidance drawn from public and private sectors internationally, ITIL helps service
providers with best practice guidance on the provision of quality IT services and the processes, functions
and other capabilities needed to support them.
ITIL provides a systematic and professional approach to the management of IT services. Adopting its
guidance offers users, customers and service providers a huge range of benefits. These include:
Improved value creation
Improved IT services through the use of proven best practice processes
Improved customer satisfaction through a more professional approach to service delivery
Alignment with business needs, including the development of a business perspective
Improved productivity and reduced costs
High-quality IT services that benefit the business customer
A balanced and flexible approach to service provision
Well-designed services which meet customers needs now and in the future
Ability to adopt and adapt to reflect business needs and maturity.
Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks, servers, storage, applications, and services) that can
be rapidly provisioned and released with minimal management effort or service provider interaction.
According to the NIST definition, the cloud computing model is composed of five essential
characteristics, four deployment models and three service models. In addition, cloud based services
refers to situations where cloud computing is used to provide some element of an overall service.
A service is a means of delivering value to customers by facilitating outcomes customers want to achieve
without the ownership of specific costs and risks.
The premise of cloud computing is it allows services to be provided with greater economies of
scale, quicker, faster and cheaper and without the need for a service provider to own the entire IT
infrastructure. Peaks in demand for IT, business and customer services can be automatically provisioned
for, leading to a pay-per-use model. A pay-per-use model can, in certain circumstances, lower the full
cost of service delivery without full ownership of back-end IT infrastructure.
Cloud computing enables organizations realize benefits which are included in the following table.
Benefit (contd.)
Details (contd.)
Reduces IT overcapacity
Note: Reducing capital expenditure will lead to increases in operational expenditure (OPEX). Organizations should understand the impact of this and
how to accommodate the increased operations expenditure within their budgetary processes. In addition, some organizations will prefer to spend the
CAPEX they have raised for IT projects. Therefore it is important to identify the organizations strategy around how they intend to pay for IT services,
systems and applications. In general terms, organizations are likely to adopt a hybrid approach to capital and operations expenses, using both
traditional IT and cloud computing.
Considerations
Question (contd.)
Considerations (contd.)
Question (contd.)
Considerations (contd.)
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Area
Benefit
Challenge
Reduces IT ownership
Traditional IT
Cloud computing
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The IT organization fails to provide services which are publicly available, fails to be flexible and is not
delivering customer requirements
Viable alternative SaaS are readily available with attractive price points.
Key areas of focus for the IT organization to mitigate against service disintermediation are included in
the following table, with corresponding ITIL reference points.
ITIL best practices can help alleviate service disintermediation by focusing on designing and delivering
services which end-users and service consumers require. This guidance is provided throughout the five
core ITIL best practice lifecycle stages.
In essence, such adoptions are the forerunner of cloud service management, which can be seen as an
extension of the management of IT services. Cloud service management is concerned with introducing
good practices for the management of cloud computing and cloud based services.
10 Summary
There are a number of key messages to take away, which are listed below.
Cloud computing is disruptive, yielding both benefits and constraints. Each organization has to look at
the value they can receive from the disruptive nature of cloud computing.
Cloud computing is gaining market share and popularity. This is partly due to innovative cloud offerings
now available, hype, marketing, the cost benefit equation and scalability etc.
Cloud computing can yield significant savings and benefits to an organization under the right
circumstances.
Cloud computing requires the IT organization to adapt their existing practices, policies, processes and
procedures in order to successfully utilize cloud computing to the fullest.
ITIL continues to be a valid framework to be used in IT organizations where they have adopted, or are
likely to adopt, cloud computing and can give reassurance that the cloud service provider is using best
practice.
IT organizations using ITIL and other frameworks and standards, will be required to adapt certain
elements of their operations to cater for the disruptive nature and benefits of cloud computing.
For those organizations using ITIL best practice and other frameworks and standards the message is
clear: there is no need to undo the current IT organization and how it operates. Use ITIL and existing
frameworks and standards as before, but identify the areas that need to be updated, changed or
modified to cater for the changes required by cloud computing to realize the value that cloud computing
can bring to the organization as well as to the customers and consumers.
References
www.cloudcredential.org/certifications/pcsm
www.axelos.com/IT-Service-Management-ITIL
Cabinet Office (2011). ITIL Continual Service Improvement. The Stationery Office, London.
Cabinet Office (2011). ITIL Service Design. The Stationery Office, London.
Cabinet Office (2011). ITIL Service Operation. The Stationery Office, London.
Cabinet Office (2011). ITIL Service Strategy. The Stationery Office, London.
Cabinet Office (2011). ITIL Service Transition. The Stationery Office, London.
Please note that guidance authored and published by the Cabinet Office is now owned
by AXELOS Limited.
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About AXELOS
AXELOS are a joint venture company, created by the Cabinet Office on behalf of Her Majestys
Government in the United Kingdom and Capita plc to run the global best practice portfolio, including the
ITIL and PRINCE2 professional standards.
The goals of AXELOS are many and varied, each one aimed at helping businesses and individuals reach
success, empowering them to truly stand out in a competitive market:
We continually promote and advocate quality training.
We strive to encourage growth, development and progress.
We always look for innovative new solutions to improve best practice standards and
processes across the board.
The result is improved skills that are relevant to the industry as a whole and enhanced employability
for all, benefiting the global economy. The benefit to you and your business in particular: better trained
employees, streamlined operations, and the peace of mind of knowing that you are working with an
industry-leading organization, which provides products and services with a long-standing reputation for
setting the industry benchmark.
Reviewers
AXELOS would like to thank the following for reviewing this white paper:
Marcel Heilijgers is the Executive Director of the Cloud Credential Council. Prior to joining the Cloud
Credential Council, he drove Marketing Strategy towards the adoption of Microsoft's open cloud solutions
across Central and Eastern Europe.
Patricia Fridman is a PM & IT Consultant and a freelance EXIN Accredited trainer ITIL.
Jayson Kurisinkal is Lead Consultant at Infosys Ltd.
Zenith Law is CEO of Zenospace Ltd.
Acknowledgements
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