Executive Summary Many organizations today are using on-premise IT service management (ITSM) solutions. But organizations are increasingly moving to ITSM solutions that are hosted in the cloud for greater flexibility and lower costs. As these organizations go through their selection process, they tend to look carefully at features and functionality. But they may not be aware of other factors that are equally important to a successful cloud-based ITSM solution. This whitepaper describes five additional, unexpected factors companies should consider when making their purchase decision. ITSM Moves to the Cloud Organizations are increasingly adopting cloud-based solutions for all manner of business applications. ITSM is no exception. Gartner predicts that by 2016 most new IT spending will be for cloud computing platforms and applications, with nearly half of large enterprises having cloud deployments by the end of 2017. IDC predicts that over the period from 2013-2017, public IT cloud services will see a compound annual growth rate of 23.5 percent, five times that of the IT industry as a whole. This rapid growth shouldn t be surprising. The cloud offers significant benefits over onpremise solutions. These advantages include: 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 1
Time to value Lower upfront costs Cloud solutions can be deployed quickly because all necessary components are already up and running at the cloud service provider s site. You needn t install and test software or provision servers. End users can instantly access software over the web - anytime, anywhere. Businesses no longer buy software or hardware, purchase costly maintenance contracts, or undergo costly deployment projects. They simply pay for the services they use as they go. Easier maintenance and administration Cloud service providers operate, maintain and upgrade the software so IT teams can focus on other critical business needs. Scalability Optimized performance and availability Security Cloud computing allows clients to easily scale their IT resources up or down as necessary to support business requirements without costly changes to existing IT systems. Cloud service providers make substantial investments in their data centers and equipment, maintain redundant servers and backup systems to eliminate downtime, and administer systems around the clock to ensure applications remain available. They ensure system reliability and performance through service level agreements (SLAs). Cloud service providers are responsible for keeping their clients data secure. They implement advanced security features such as Secure Socket Layer (SSL) data encryption, firewalls, and intrusion detection systems. Data centers are periodically audited and certified by industry standards such as SAS 70 or SSAE 16 certification. 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 2
5 Unexpected Factors for Choosing a Cloud-Based ITSM Solution As organizations move to cloud-based ITSM solutions, software features and functionality are, of course, key decision criteria. But other factors are critical for a successful solution. The following are five additional factors to consider when evaluating cloud-based ITSM solutions: Not all cloud solutions are created equal. Many service providers offer hosting services, delivering on-premise software over the Internet using a pay-as-you-go Software as a Service (SaaS) payment model. Generally, these service providers implement a separate instance of the application software and the underlying software (e.g. Windows and the Database) for each client organization (e.g., tenant) using a so-called single-tenant architecture. While this is a SaaS solution, it is not a true cloud solution. A true cloud solution is multi-tenant. Multi-tenancy is an architectural model whereby a single instance of software runs on the cloud service provider s servers and serves multiple tenants. Multi-tenancy is an essential attribute of true cloud computing. When compared with single-tenant SaaS solutions, multi-tenancy offers benefits that include: Velocity of Innovation Because all client organizations use the same platform, the service provider gains in-depth understanding of how clients actually use the software. The service provider can use this knowledge to improve customer service, continually add new innovative capabilities that address real-world challenges in unique ways, and maintain a significant competitive advantage over other service providers. Huge Economies of Scale With a multi-tenant cloud architecture, the service provider has the opportunity to optimize resource usage across the entire stack to improve performance and reduce operating costs. And, resource costs are shared across all client organizations. As a result, costs for multi-tenant solutions can be an order of magnitude lower than for hosted or single-tenant solutions, and service providers pass those savings on to clients. 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 3
Always New Since all clients of multi-tenant cloud systems run on a single instance of the application, service providers can easily and quickly deploy upgrades, which are immediately available to all users. This significantly decreases the maintenance overhead costs and also allows service providers to totally eliminate the notion of software versions and scheduled downtime for maintenance. Instead they are able to adopt a constant, iterative approach so that the single instance is always new for every customer. It s not uncommon for service providers to introduce hundreds of upgrades over the course of a year. Single-tenant SaaS service providers individually update each client, which increases their cost structure, typically requires scheduled downtime, and limits the number of upgrades they can deploy (typically no more than two per year). Scalability Scaling a well-architected multi-tenant cloud platform is often simply a matter of plugging more hardware into the different elements of the technology stack. The added capacity immediately becomes available to all clients. Faster Performance A true cloud service provider can optimize performance because they can precisely assess factors such as utilization, speed and response time across the platform and focus on the performance of a single instance of the application. Better Service Because a true cloud service provider monitors and administers a single platform, it can deliver more efficient and effective service and support, including troubleshooting and problem resolution. When evaluating cloud-based ITSM solutions, maximize your return on investment by ensuring that your chosen solution is a multitenant cloud solution, not just SaaS. Having an integrated service desk and asset management is good, but an all-in-one, unified solution is far better for a number of reasons. A unified solution has a single user interface and a single database, allowing you to bridge the IT communications gap. With a single database, elements that are common across service desk and asset management are not duplicated and therefore there are no synchronization challenges. 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 4
As a single, unified application, there are also no integrations to break - any upgrades to the application will be seamless and you never have to worry about validating integrations after the application has been updated. In addition, a unified solution gives you the ability to quickly visualize the relationships between people, hardware, software, tickets, problems, incidents, and services. Armed with that information you can quickly triangulate and diagnose broader issues and trends occurring in your environment. All of these factors can have a significant impact on efficiency and quality of service. For example, when an IT support team knows which computer and software is assigned to an end user, its exact configuration, upgrades, and maintenance history, it can more easily identify and troubleshoot problems. This information is also helpful to those who oversee IT asset management. Understanding how an asset has been serviced and supported will aid in activities such as software compliance and asset disposition. To identify a truly unified service desk and asset management solution, organizations should look for: An identical user interface for the service desk and for asset management. A shared database to allow the service desk and asset management solutions to access common data, such as user information. A shared database eliminates the need for duplication and thus synchronization challenges. A single, unified application that needs no integration. Because updates apply to the entire solution, you needn t worry about validating integrations after the application is updated. While all SaaS and cloud solutions offer significantly faster time-to-value than onpremise solutions, organizations may think that the time-to-value for all SaaS and cloud solutions is the same. This is not the case. Many SaaS and cloud solutions require considerable configuration before they can go live, as well as additional reconfiguration over time as business conditions change. A SaaS/cloud implementation often takes two to six months - or longer - and requires expensive consulting resources both to deploy and maintain. Yet some solutions are architected in such a way that a client can start using them instantly, and then configure the solution to their particular requirements as they go along. 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 5
For example, the Samanage Service Desk and Asset Management solution allows clients to get up and running within a few hours and have their system fully operational within 14 days. As Lawrence Cullipher, the IT Director at the City of Raleigh Police Department said, The speed with which we were able to get this implemented was key for us. I was very concerned that the time we would have to invest in implementation would severely impact the support of our users. We were very pleasantly surprised that we were fully functional in such a short time. When evaluating time-to-value, Service Desk and Asset Management solutions, organizations should: Evaluate the complexity of configuration and customizations and the level of external support that the solution will require to deploy and maintain. Talk to several of the service providers customers about their deployment expectations vs. actual experience. As you think about your functional needs for an ITSM solution, you should also consider whether the solution s ease-of-use enables you to leverage the application outside of IT. The right cloud-based ITSM solution not only allows organizations to streamline IT service efficiency, it can also improve the efficiency and productivity of departments throughout the organization. Any department can use both service desk and asset management to define and publish an online catalog of its services that standardizes the way those services can be ordered and delivered. It can make the catalog available through a self-service portal that allows end users to submit requests based on industry best practices. It can then channel tickets and requests in an organized fashion that s easier to handle and quicker to resolve. Consider the Human Resources department. This department can use the service catalog to manage employee changes to their 401k plan, benefits, and other services. For organizations that wish to improve IT service efficiency and extend service management functionality throughout the organization, the user interface is critical both for the end user portal and the service management system itself: 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 6
End User Portal The end user portal enables self-service, such as logging a trouble ticket or searching a knowledge base for answers to frequently asked questions. If the end user can t easily use the portal, they ll revert to inefficient processes, such as voicemails, IM, and office visits. Service Management Interface The interfaces that IT and other service managers use to manage the service catalog and respond to tickets must be streamlined and easy to use. This is even more important for organizations wishing to extend the service management application to non-technical departments that are less likely to understand or tolerate complex sequences of commands. Some of the most successful companies in the world grow their brands not through expensive branding campaigns, but by creating products or services that improve people s lives by fulfilling a functional need in a unique and innovative way. Once clients experience the functional benefits, the products themselves inspire clients to forge an emotional connection with the brand that keeps them coming back for more. The right ITSM solution streamlines workflow, increases efficiency, enables end users to self-serve, and elevates the quality of service provided to the user community. In turn, both the value-add and the perceived value-add, or functional brand, of IT is elevated. An ITSM solution that allows the IT service desk to be proactive in addressing issues and in helping solve business problems can create a positive end user experience and elevate the brand of the IT function. You are providing a higher quality of service, and you look good doing it. MediFit is one company that used a cloud-based ITSM solution to change end user perceptions. Prior to implementing the solution, customer satisfaction surveys reported that end users viewed the help desk as consisting of ostriches with their heads in the sand, not caring, and unhelpful. After the company moved to the Samanage Service Desk and Asset Management solution, says Shvonne Williams, Director of IT Services at MediFit s Corporate Services, We were able to transform our IT help desk support team to become faster, more efficient, and more responsive. IT was also able to become a strategic partner and add value to other functional areas such as HR and finance by extending the service desk solution to make it easier for these departments to do their jobs. As a result, we were able to completely re-brand IT and significantly increase the value and ROI of our ITSM solution. 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 7
As you think about the business value a new ITSM solution can bring to the organization, keep in mind how you will capitalize on this investment to elevate the perceived value of IT. Conclusion When choosing a cloud-based ITSM solution, features and functions are important, but they are just the tip of the iceberg. To achieve the greatest value both within the IT support center and throughout the organization, be sure to look for an ITSM solution that: Is based on a true, multi-tenant cloud architecture. Delivers a unified service desk and asset management solution. Provides the fastest time-to-value. Furnishes an intuitive interface that streamlines the IT service desk and makes it easy to extend the solution beyond IT to departments across the organization. Enables IT to proactively address business challenges to create a positive customer experience and enable functional branding. Sources: Gartner Says Cloud Computing Will Become the Bulk of New IT Spend by 2016 http://www.gartner.com/newsroom/id/2613015 IDC Forecasts Worldwide Public IT Cloud Services Spending to Reach Nearly $108 Billion by 2017 as Focus Shifts from Savings to Innovation http://www.idc.com/getdoc.jsp?containerid=prus24298013 Disruptive technologies: Advances that will transform life, business, and the global economy http://www.mckinsey.com/insights/business_technology/disruptive_technologies Five secrets your cloud provider won t tell you about multi-tenancy (and how to overcome them) http://www.computerworlduk.com/business-it-hub/management-briefing/3358580/five-secrets-your-cloudprovider-wont-tell-you-about-multi-tenancy/ Global Cloud-based ITSM Market: 2014-2018 ; http://www.technavio.com/report/global-cloud-based-itsmmarket-2014-2018 North America 117 Edinburgh South Suite 100 Cary NC 27511 (919) 371-2990 1-888-250-8971 EMEA Kluizenaarsbocht 6 2614GT Delft The Netherlands +31-10-8920398 Israel Ha-Melacha 5 Netanya Samanage provides the only true multitenant, unified service desk and asset management cloud solution on the market today. Its revolutionary user interface delivers an unmatched user experience and enables code-free customization, allowing customers to fully deploy a robust IT Service Management (ITSM) solution in less than two weeks. www.samanage.com www.twitter.com/samanage www.samanage.com/blog/ 2014 Samanage 888-250-8971 www.samanage.com www.twitter.com/samanage 8