Impact and Changes of Cloud Computing on IT Service Management Tutorial

5.2 Impact and Changes of Cloud Computing on IT Service Management

Hello and welcome to Module No. 5 of Cloud Computing course offered by Simplilearn. In the previous module we discussed the steps to successful adoption of cloud. In this module we will cover the impact of cloud computing on IT service management and the changes that occur due to the adoption of the new technology. The next slide will give us an overview of the agenda of this module.

5.3 Agenda

In today’s module, we are going to define IT Service Management and discuss the impact and changes of cloud computing on IT service management in a typical organization. In other words, we will look at the changes that have to be implemented on service management due to the introduction of cloud in terms of service strategy, service design, service operation, and service transition. In addition to this, the module will also discuss how a structured approach, based on ITIL, is used to explore the potential impact of cloud computing in an organization. The next slide introduces us to the concept of IT service management.

5.4 Definition of IT Service Management

Service management is nothing but a set of organizational capabilities providing value to the customers by means of service. IT service management (ITSM) is also a set of processes that is employed to manage the IT technology systems efficiently. ITSM makes sure that an organization’s IT functions are carried out efficiently and they are in alignment with its business needs. In every company there is some level of process management but ITSM basically formalizes this process instead of keeping it ad-hoc. There are frameworks that have been used and tested by large enterprises and they are ITIL and MOF. The important thing to keep in mind here is that when the organization makes a move to cloud it creates a huge impact on ITSM. Cloud brings with it the attributes that change the processes in ITSM. For example, virtualization changed the traditional idea of large physical data centers into virtual centers where servers can be provisioned with ease. The next slide contains a diagrammatic representation of the impact of cloud computing on service management process with respect to ITIL framework.

5.5 Impact on Service Management Process ITIL

Now, let us look at the two IT service frameworks that were mentioned before: ITIL and MOF. Here we will deal with ITIL and its various processes, whereas MOF will be discussed in the subsequent slide. ITIL stands for Information Technology Infrastructure Library. This is basically, a library of IT service process which has been developed, tested, and upgraded over the years by many large enterprises. In the core of the diagram, we can see that service strategy is followed by an outer layer consisting of service design, service transition, and service operation. These are all processes that are part of the framework. Additionally, each of these processes, in turn, has another list of processes. For example, service design consists of supplier management, service level management, service catalog management, and availability management. So, by using this framework, we can break down all IT functions into a set of processes or strategies and then, each of these processes can be made more efficient. Similarly, the processes like service operation and service transition have been categorized into a list of sub processes as shown in the slide. So when we use ITSM, we are able to define the processes clearly and this comes in handy when we adapt to a new technology such as Virtualization. We can map the changes that happen and identify how they happen. All along, we can find a continuous process improvement. In the next slide there is a diagrammatic representation that shows how cloud computing affects Microsoft Office Framework or MOF.

5.6 Impact on Service Management Process MOF

Before we get into the details of ITIL, let’s have a quick look at MOF or Microsoft Office Framework. MOF is another framework for ITSM that has been used extensively by various organizations. The fundamental idea of MOF is planning, delivering, and operating continually. This is exactly what IT does: to plan, deliver, and operate the IT service in a company. Now, the blue circle indicated as “manage” in the diagram, represents managing all these processes. As in ITIL, there are various sub-processes under each of these processes in MOF. We have portfolio management in planning. It consists of building, stabilizing, and deployment. Under deliver we have policies and controls. And then, under operate service monitoring, customer service and problem management. Besides, there is operational health and service alignment which come under both planning and operation. MOF, as it has been mentioned, is a great ITSM framework solution but in this module our focus will be only on ITIL. In the next slide, we will take a look at the sub-processes of service strategy.

5.7 Service Strategy

Service strategy lies in the core of ITIL framework. It has several sub-processes such as IT portfolio management, management of the demands of IT services portfolio, managing all the business relationships in an IT portfolio, managing the different strategies employed by the IT services, and lastly, financial management which involves costing, budgeting, and cost incurred by the company for these services. In the next slide we will discuss the sub-process under service design.

5.8 Service Design

As we saw in the framework, service design is the next layer after service strategy. Here we can define service catalog, i.e., the different services IT can offer; risk management policies; and provide compliance. We will also define the service levels for the several IT services which the company offers. Next, we need to ensure that this design is in coordination with the supplier. We should also understand capacity, availability, IT continuity or disaster recovery, security, etc. At the same time we need a clear idea about managing all this in alignment with the overall architecture of IT, i.e., that hardware and software that an organization offers. In the next slide we will discuss service transition.

5.9 Service Transition

Once the service design is in place, it is time to move on to service transition. During this phase, there is utilization of various processes, functions, and systems in order to build, stabilize, and deploy services. Service transition encompasses change management to change control. Change control is nothing but controlling the changes directly on the cloud as opposed to change management where you manage them locally. Consequently, once the new cloud service is implemented, it adheres to the specific standards of the company. The change management process basically takes care of standard revisions that are applied to new or updated cloud services. Under service asset and configuration managements we can store all information about IT services and resources. We know that cloud providers make both scheduled and unscheduled releases from time to time. It is important that new updates also reflect on the user interface or UI and functionality, which in turn, should benefit the customers. The knowledge management process ensures that each service provider provides the right level of support to an organization’s users to facilitate informed decisions. In cloud, it is important that cloud vendors update information online for their services. Service transition also includes change evolution, project management, release and deployment management, application development, service validation and testing, service asset and configuration management, knowledge management, etc. In the next slide, we will discuss service operation.

5.10 Service Operation

We have already covered designing and transitioning of services. Now, we need to discuss the operation of these services. It is in this phase that all services are made available to customers. There are process and functions that are necessary for services to be provided at agreed-upon service level. It includes event management, incident management, request fulfillmentmanagement, access management, problem management, facilities management, IT operations control, application management, and technical management. When the service is in operation in cloud environment, it has to be carefully monitored to meet the agreed levels of service. Usually, a service desk is used to accomplish this task and achieve a high incident resolution rate. Cloud always emphasizes on identifying the core issues that cause any incident and eliminating them using problem management. The next slide shows us how ITIL applies to cloud computing.

5.11 How ITIL Applies to Cloud Computing

Moving to cloud computing is very important for an organization. An organization’s transition to cloud involves several factors. It not only affects the IT department but also encounters a lot of operational changes. In such a situation, if an organization does not have a framework in place, the migration will only lead to further confusion. Having processes to manage the IT services is very crucial. Instead of an ad hoc in-house process, a standardized framework is essential for ITSM. ITIL is very useful in this regard and it helps a great deal during transitioning of a company to cloud environment. Therefore, ITSM frameworks such as ITIL ensures that both the needs of your IT and business are taken into consideration while considering moving to the cloud. The next slide recapitulates all the concepts that we have covered till now.

5.12 Summary

Let’s summarize what we have learnt in this module. We discussed what ITSM is and covered the impact and changes of cloud on ITSM in terms of its processes, such as, service strategy, service design, service operation, and transition. We also looked at how having a framework such as ITIL will be helpful for an organization while migrating to cloud computing. This brings us to the end of this module. Let us now take some time and answer the questions in the following slides. In the next module, we will identify the risks and consequences of cloud computing.

  • Disclaimer
  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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