OPS-CIM2034

VMware IT Benchmarking for Fact Based IT Transformation

Mahipal Lunia Lunia, VMware, Inc. Steven Gall, VMware, Inc. Matthew Stegall, VMware, Inc.

#vmworldops

Disclaimer

This session may contain product features that are

currently under development.

This session/overview of the new technology represents

no commitment from VMware to deliver these features in any generally available product.

Features are subject to change, and must not be included in

contracts, purchase orders, or sales agreements of any kind.

Technical feasibility and market demand will affect final delivery. Pricing and packaging for any new technologies or features
discussed or presented have not been determined.

VMware ITBM Fact-Based Approach to Run IT Like a Business

Transparency

Planning & Control

Optimization & Alignment

Services

What services do I offer?

Costs

What is the cost of providing those services?

Quality

What does the business get and how do I manage tradeoffs?

The New Role of ITBroker of IT Services, Business Partner

IT Broker Decisions
What services at what cost? Where can costs come out? Insource or outsource? Service level tiers or not? Standard and/or
composite services?

Internal IT

Private Cloud

Public Cloud

External Vendors

What quality? Incentives or penalties?

CIO and IT role expanding

From managing technology to
delivering internally and externally provisioned business services Service Portfolio
Broker of IT Services

Providing the right service at the right

price for competitive advantage
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Service Level and Quality

Demand, Costs and Incentives

VMware IT Business Management Domains & Capabilities

Fact-Based Approach to Run IT Like a Business

Visualization

IT Financial Management
Costs Services Planning

IT Benchmarking
Objective Evidence Functional Peers

Service Quality Management

Services Portfolio Automation Platform

Service Levels Vendor Accountability

Data Collection & Validation Security

3rd Party Connectors Data Import/Export

IT Cost Modeling Analytics

Public Cloud

Observation Engine Scalability

Private Cloud

PPM/PSA

Storage

IT Monitoring

Service Desk

CMDB

GL, COA & Expenses

SharePoint, Internal Cost Models, Apps, Vendor Invoices

VMware IT Benchmarking Overview

About Repeatable Cost Effective Timely Automated Baseline Future State Triggers IT Transformation Cost Optimization Efficiency Rightsizing Outsourcing Restructuring Business Alignment M&A Results Actionable Granular IT DNA Peers Laser Focus Apples-toapples Benefits Unbiased True Cost True Performance Critical Insights Potential Savings Outsource Value Quality of IT IT Investments Business Alignment Gaps Standardized Repeatable High-Value Focus

Compare Traditional Analyst-driven IT Benchmark Service to the VMware IT Online Benchmark Service
IT Benchmark Service Comparison Traditional Benchmarking Process Service Selection Data Validation Subjective Lacks Apples-to-Apples Comparisons Time Consuming Potentially Biased Manual VMware IT Benchmarking Process Standardized Objective Apples-to-Apples Efficient Standardized Automated Efficient Automated / Objective Scientific Peer Selection on IT DNA Transparency Through Granularity Standardized / Repeatable Process Cost Effective Automated Scientific / Facts Based Automated often less than 1/3 of traditional costs Granular Over 3,500 Across 12 Towers Actionable

Data Analysis Laborious Analyst-Driven / Subjective Peers Selected Subjectively by Analyst Lack Transparency Repeatable Project by Project Process Cost Prohibitive Resource Intensive Gut Feel Deliverables Consulting Engagement High-Level Limited Number Limited Use

Costs

Metrics

VMware IT Benchmark Products*

VMware IT Benchmark Tower

16 Cost towers and 2 Quality towers Purchased a la carte or in 10 packs 250-400 metrics per Tower

VMware IT Benchmark Starter Kit

30 metrics across 3 cost towers 10 metrics from each tower

VMware IT Benchmark Basic

For SI/Sos 10 Cost towers 100 key high level metrics

All include standard (visual) and extract (.xls) reports *acquired from iTHC in April 2012
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Benchmarking Peer Comparisons

Industry benchmarking
Companies sharing the same industry, irrespective
of technology footprint
SCOPE OF SERVICES
Quantitative Towers Workload, Complexity, Hardware, Software, Staffing, Sourcing Costs Alignment, Satisfaction, Indirect Costs
Distributed Computing Help Desk

Provides insight into competition-driven

prioritization/urgency of potential IT cost-remediation efforts

Midrange Server Wide Area Data Mainframe Application Development Application Support Wireline Wireless PBX/VoIP

Functional benchmarking
Companies sharing a similar technology foot-print
and usage profile, irrespective of industry

Identifies where, how and relative magnitude of cost

saving opportunities

Industry and Functional Benchmarking are

Both Essential Tools In Supporting IT Cost Rationalization Efforts

Quantitative Towers
Business Unit End User

Quantitative/Org
Organizational Impacts

Combined, they provide the most complete and

actionable data for IT Cost Reduction Analysis
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VMware IT Benchmark Database

> 3500 Data Points/Metrics

Hundreds of unique peers Percentiles and trendsIndustry
and functional peers Fresh data < 18 months rule

21 Industries

Banking Conglomerate Consumer Goods/Retail Education Electronics Financial Services GovernmentDoD GovernmentFed GovernmentState/Local Healthcare Insurance ManufacturingAuto ManufacturingConsumables Manufacturingelectronics ManufacturingEquipment ManufacturingGeneral Oil, Gas, Petro Professional Services Telecommunications Utilities Print/Media

4 Geographies
N. America and EMEA strongest MNC coverage of Asia and ANZ

95% NA

4.5% EMEA .5% Other

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Benchmarking Metrics

Primary indicator of overall cost performance

Virtualization Primary Metric

Drive

Cloud Computing Outsourcing Cost Reduction IT Transformation Rationalization Consolidation

High level indicators, by category, of cost and efficiency

Top Level Metrics

Decisions

Ground level metrics providing clear understanding of opportunities for improvement and where the enterprise strengths lie.

Granular / Actionable Metrics

Investment Strategies

Delivers Actionable, Repeatable, Results IT Becomes Consistent, Transparent, and Strategic!

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Benchmark ContentMetrics Sampling

Easy-to-use interface for data collection Rapidly verifies data integrity, results displayed in minutes Data can be loaded into ITBM solutions
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Why IT Benchmarking

Gain critical insights to help drive IT investment strategies Compare your spend to peers Discover potential cost savings Complexity and its impact Understand trade-offs across costs,
performance, and quality of service

Identify strengths, problems,

opportunities

Identify strategic alignment gaps Verify perceived issues

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VMware IT Benchmark Differentiation

Standard metrics vs. custom metrics Data covers both Industry and functional peers Data available on-demand without consulting project Data under 18 months old ensuring relevance Integrated with VMware IT Business Management solutions Compare Benchmarks to your metrics in the same dashboard Run what if analysis and forecasting to see impact Track execution and savings within ITBM

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VMware IT Business Management

Start with transparency of where you are Measure and demonstrate Fact based planning and comparison Actionable strategy with periodic review Your only solution for a complete Evidence based approach Industry and Peer comparisons Automation of entire ITBM process
Cost, Quality and Risk

Top down and bottoms up validation

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Thank You

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FILL OUT A SURVEY

EVERY COMPLETE SURVEY IS ENTERED INTO DRAWING FOR A $25 VMWARE COMPANY STORE GIFT CERTIFICATE

OPS-CIM2034

VMware IT Benchmarking for Fact Based IT Transformation

Mahipal Lunia Lunia, VMware, Inc. Steven Gall, VMware, Inc. Matthew Stegall, VMware, Inc.

#vmworldops