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ITIL 4 Acquiring Managing Cloud Services Certification Course: Explore - Value: Outcomes, Costs and Risks (VOCR)

VOCR

  • Value
  • Outcomes
  • Costs
  • Risks

Assess VOCR when:

  • Defining digital strategy
  • Assessing cloud services
  • Defining requirements
  • Evaluating CSP proposals

1. Outcome

Typical outcomes:

  • Cost savings
  • New markets
  • New products
  • Greater agility

Undesirable outcomes:

  • Increased costs
  • Uncontrolled resource use
  • Poor governance
  • Poorly-coordinated cloud
  • Inappropriate migrations

2. Costs

Understand costs go gauge ROI

Assess costs before engaging CSP

Multiple information sources available

CSPs make costs public

Use CSP cost management tools

Five cost types:

  • Exploring cloud services
  • Onboarding and offboarding
  • Co-creation
  • Under and over-utilization
  • Outages

2.1 Exploring cloud services

Analysis and strategic assessment:

  • Analyze business model and infrastructure
  • Identify cloud options
  • Evaluate opportunities

Organizational change:

  • Assess costs of organizational change
  • Objective greater agility
  • Cloud costs included in larger change strategy

2.2 Onboarding and offboarding

Cost of implementing new or migrating services

Costs incurred by:

  • Service provider
  • Service consumer

Onboarding costs:

  • Organization and people
    • Expanding IT department to cloud service broker
    • Vendor management office
    • CSP coordination
    • Training
  • Information and technology
    • Cloud migration costs
    • API creation
    • Application and data migration
    • Targets and testing
    • Equipment and license disposal
 itil 4
  • Partners and suppliers
    • Contract termination
    • Establishing new provider
  • Value streams and processes
    • Process re-engineering
    • Replacement and decommissioning costs

2.3 Co-creation

Costs of ongoing cloud usage

Incurred over years

Costs sources:

  • CapEx/OpEx
  • PaaS and SaaS applications
  • In-house equipment
  • APIs
  • Cloud management office
  • Upgrades
  • Operational management
  • Disaster recovery, service continuity and security
  • Staffing and consulting
  • Governance
  • Start-up costs
  • Onboarding

Cloud shifts expenditure from CapEx to OpEx due to pay-per-use

End-user accounting

Finance department oversight

Fixed prices not common due to dynamic market pricing

Consumer must monitor costs

CSP budgeting tools and alerts

2.4 Under and over-utilization

Contracts may specify certain usage

Under and over-utilization penalties

Advanced notice

Utilization rate forecasts

2.5 Outages

Who is responsible for what aspect of outage ?

Service agreement terms

Loss protection and service continuity

Service outage penalties

Compare outage costs and high-availability architecture

Review outage history

Select reliable CPS

Go back to ITIL 4 Acquiring Managing Cloud Services Certification Course: Explore to finish this chapter or to the main page ITIL 4 Acquiring Managing Cloud Services Certification Course.

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