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Adding Value to Your e-business with IBM Tivoli Performance & Availability Solutions Manage Your Adding Value to Your e-business with IBM Tivoli Performance & Availability Solutions Manage Your Technology — Master Your Business Customer Name Speaker Name

Agenda n Introductions n Today’s Business Environment n The Tivoli Approach to adding value: Agenda n Introductions n Today’s Business Environment n The Tivoli Approach to adding value: – Monitoring, – Event Correlation, – Business Impact Management; n Measuring the Value the P&A Solution Brings n Questions & Answers 2 | *

e-business Initiatives n Achieve business goals - revenue and profit n Protect and enhance e-business Initiatives n Achieve business goals - revenue and profit n Protect and enhance the company’s brand image n Attract and keep customers n Effectively transact business with trading partners n Meet service level commitments n Grow the e-business n Manage Costs 3 | *

The Performance and Availability Challenges n IT visibility at executive level n Line-of-Business driven The Performance and Availability Challenges n IT visibility at executive level n Line-of-Business driven initiatives n The cost of downtime n Increasing complexity n New applications and middleware 4 | *

Address the Challenge with Tivoli simplifies Performance & Availability management using a three layer Address the Challenge with Tivoli simplifies Performance & Availability management using a three layer approach that maximizes e-business infrastructure return-on-investment Business Impact Management Line of business views, workflow, business process integration cross discipline analysis, predict, optimize, provision, analyze, account, report Master Your Business n Contract, measure, report, and manage committed service levels n Understand the impact of IT performance on the business Event Correlation and Automation Cross system and domain root cause analysis Manage Your Technology n Reduce the cost of downtime Monitoring Discover, collect metrics, probe (e. g. , user experience), perform local analysis, filter, concentrate, determine root cause, take automated action 5 | * n Gain operational efficiency through automation

Managing e-business Resources Host Databases n Host Systems IDENTIFY problems at the resource level Managing e-business Resources Host Databases n Host Systems IDENTIFY problems at the resource level Terminals Distributed Databases n NOTIFY operations that there is a problem Servers n Take action to CURE problems when possible Application Servers 6 Clients | * Web/Edge Servers Browsers

What Do You Need From a Solution What the experts say. . . n What Do You Need From a Solution What the experts say. . . n Business impact measurement n Link user experience with infrastructure performance n IT activity prioritization n Quick implementation Must have strategy to deliver all of these to be successful 7 | *

Tivoli Performance & Availability Value n Reduce Costs – Provides flexibility to manage emerging Tivoli Performance & Availability Value n Reduce Costs – Provides flexibility to manage emerging e-business applications without changing management infrastructure – Use fewer resources to detect and repair n Protect and Improve Revenue – Reduces downtime via proactive management – Reduces problem resolution time by quickly identifying the problem – Produces satisfied customers – Automatic problem resolution n Rapid Time to Value –Fast Implementation –Real-time information in minutes, not weeks –Modular Integration 8 | *

Monitoring e-business Resources n Combined monitoring of: – Hardware/OS Dumb Terminals – Network Connections Monitoring e-business Resources n Combined monitoring of: – Hardware/OS Dumb Terminals – Network Connections – Web Servers – Middleware Host Databases – Applications Host Systems n Local correlation and diagnosis at the resource level n Take action to cure problems when possible Clients Distributed Databases n Notify other systems or Servers administrators Application Servers 9 | * Browsers Web/Edge Servers

Tivoli Proactive Monitoring Offerings Broad Support for Middleware IBM Tivoli Monitoring for … n Tivoli Proactive Monitoring Offerings Broad Support for Middleware IBM Tivoli Monitoring for … n Databases n Applications n Messaging & Collaboration n Business Integration Proactive Analysis Components Service Level Advisor n Web Infrastructure n Content & Personalization Web Server Analyzer n Security & Edge Services Tivoli Data Warehouse IBM Tivoli Monitoring Problem Signatures Work. Bench DM Engine Resource Models 10 | * XYZ X+Y+Z = action n Monitoring Engine Supports Proactive Analysis Components

Event Correlation Focuses on Multiple Resources n n Host Systems Collect and correlate events Event Correlation Focuses on Multiple Resources n n Host Systems Collect and correlate events from multiple resources Problem signatures are used to determine root cause n Automate corrective actions n Host Databases Terminals Notify other systems or administrators when necessary Distributed Databases Servers Application Servers Console 11 | * Web/Edge Servers Clients Browsers

Tivoli Event Correlation and Automation Offerings Broad Support for Events IBM Tivoli Event Correlation Tivoli Event Correlation and Automation Offerings Broad Support for Events IBM Tivoli Event Correlation and Automation for… n n n Distributed Systems OS/390, z/OS SNA Networks TCP/IP Networks Applications Middleware TEC Service Level Advisor Tivoli Data Warehouse Net. View IBM Tivoli Monitoring DM Engine 12 | * Non Tivoli Monitoring Leverage existing management infrastructure Web Server Analyzer

Business Impact Management Takes a LOB View n n Proactively determine the impact of Business Impact Management Takes a LOB View n n Proactively determine the impact of events on the business Host Databases Host Systems View how business processes span the physical environment n Verify end user service levels n Dumb Terminals Analyze historical data and predict future service levels Distributed Databases Clients Servers Application Servers 13 | * Web/Edge Servers Browsers

Tivoli Proactive Business Impact Management Offerings Historical Analysis for Predictive Management Daily Operations Tivoli Tivoli Proactive Business Impact Management Offerings Historical Analysis for Predictive Management Daily Operations Tivoli Business System Manager Online banking user response time is slow Service Level Advisor Online banking service level agreement is at risk WEB Tivoli Data Warehouse Leverage existing management infrastructure Tivoli Enterprise Counsel/ Distribution Monitoring 14 | * n Tivoli n 3 rd Party n In-house

What Do You Need From a Solution n Business impact measurement – Tivoli Business What Do You Need From a Solution n Business impact measurement – Tivoli Business Impact Management n Link user experience with infrastructure performance – Tivoli Monitoring Solutions n IT activity prioritization – Tivoli Event Correlation and Automation Solutions n Quick implementation – Tivoli solutions deliver rapid time to value and ROI 15 | *

BEFORE Tivoli Performance & Availability Management Operations Center Server cowgirl 4 down ! Component BEFORE Tivoli Performance & Availability Management Operations Center Server cowgirl 4 down ! Component Approach BEA 16 | * Lotus Microsoft SAP Siebel Web. Sphere

WITH Tivoli Performance & Availability Management Operations Center Net. View TEC Service Level Advisor WITH Tivoli Performance & Availability Management Operations Center Net. View TEC Service Level Advisor Tivoli Monitoring BEA 17 | * Lotus Business System Manager Microsoft SAP Siebel Web. Sphere Tivoli Data Warehouse

Tivoli Helps to Reduce Costs n Improve IT Staff Scalability – Grow business faster Tivoli Helps to Reduce Costs n Improve IT Staff Scalability – Grow business faster than IT staffing n Improve IT Staff Productivity – Decrease time needed for management process n n 18 Match skills to appropriate problems and tasks Reduce impact of staff turnover | *

Tivoli Helps Protect and Improve Revenue n Improve service delivery and business system availability Tivoli Helps Protect and Improve Revenue n Improve service delivery and business system availability – Reduce downtime via proactive monitoring – Reduce problem resolution time n Produce satisfied customers – Deliver and measure service… – …from the customer’s perspective 19 | *

Tivoli Provides Rapid Time to Value n Rapid deployment n Real-time information in minutes, Tivoli Provides Rapid Time to Value n Rapid deployment n Real-time information in minutes, not weeks n Designed for modular integration – Each solution can be installed separately – When you need to tie it all together, you can do so easily 20 | *

Superior ROI with a Complete, Integrated Solution CONTRACT, MEASURE, AND REPORT Service Levels IBM Superior ROI with a Complete, Integrated Solution CONTRACT, MEASURE, AND REPORT Service Levels IBM Tivoli Service Level Advisor IBM Tivoli Web Site Analyzer MANAGE Service Levels IBM Tivoli Business Systems Manager IBM Tivoli Net. View Reporting and Business Intelligence Integration IBM Tivoli Enterprise Console Tivoli Enterprise Data Warehouse IBM Tivoli Monitoring for Transaction Performance “Tops down” 21 | * IBM Tivoli Monitoring for… “Bottoms up”

Example n According to an IDC study of 30 large companies conducted in 2001. Example n According to an IDC study of 30 large companies conducted in 2001. . – Average company size 10, 000 employees – Average number of IT staff 53 – Average cost saving from improvement in IT productivity about $500, 000 per year ($50 per employee) – Average downtime reduced from 12. 6 hours/month to 4 hours/month (68%) – Estimated total savings in first year from IT management productivity and reduced downtime was about $6, 000 ($600 per employee) Source: IDC, 2001 22 | *

Advantage…IBM Tivoli software n Technological innovation n Unsurpassed Research & Development n Reliable, proven Advantage…IBM Tivoli software n Technological innovation n Unsurpassed Research & Development n Reliable, proven products n Speed to market n Global reach n World class support n Ecosystem of partners 23 | *

Alternatives Business Value is the Difference Your Choices: n Do nothing (Status Quo) n Alternatives Business Value is the Difference Your Choices: n Do nothing (Status Quo) n Choose a competitor n Choose IBM Tivoli n Make the strategic business decision… IBM Tivoli software 24 | *

Tactical Business Decision Return on Investment (Target vs. Typical) 5 Cost in 000, 000 Tactical Business Decision Return on Investment (Target vs. Typical) 5 Cost in 000, 000 4 3 2 1 0 Initial Year 1 Year 2 Year 3 Year Cumulative Implementation. Cost Cumulative Savings and Benefits 25 | *

Strategic Business Decision Return on Investment (Target vs. Typical) 5 Cost in 000, 000 Strategic Business Decision Return on Investment (Target vs. Typical) 5 Cost in 000, 000 4 3 2 1 0 Initial Year 1 Year 2 Year 3 Year Cumulative Implementation. Cost Cumulative Savings and Benefits 26 | *

Where are you now ? What are your potential benefits ? World Class Medium Where are you now ? What are your potential benefits ? World Class Medium Advanced Medium Basic 27 | *

Cost / Benefit Analysis n Now that we all agree that IBM Tivoli solutions Cost / Benefit Analysis n Now that we all agree that IBM Tivoli solutions and methods could be of benefit to you, we can help you to convince senior management – Develop a vision of how this would work in your environment – Develop an estimate of the potential Costs and Benefits in your environment n We can help build the Cost/Benefit Analysis (CBA) study 28 | *

Customer Commitments for a Cost Benefit Analysis n Embark on a joint project n Customer Commitments for a Cost Benefit Analysis n Embark on a joint project n Senior management and executive sponsorship is critical to success – Commitment to conduct study – Commitment to attend a presentation of results when our efforts are complete – Attend a presentation of results when the project is complete. 29 | *

How Do We Estimate Financial Value? 1. Understand your business and IT environment and How Do We Estimate Financial Value? 1. Understand your business and IT environment and needs 2. Understand the cost of downtime 3. Estimate benefits of improved performance and availability 4. Talk to the business units 5. Identify other benefits by industry and environment 30 | *

Understand the Business and IT Environment and Needs n How many servers/desktops/… ? n Understand the Business and IT Environment and Needs n How many servers/desktops/… ? n Current tools and maturity of support processes n IT support staff numbers by role, activities, skill levels n Key business applications n New initiatives n What’s the current availability of critical services ? n What are the major problems: process/people/tool ? n What services does your company rely on you most for? 31 | *

Understand the Business and IT Environment and Needs n How do you manage things Understand the Business and IT Environment and Needs n How do you manage things now ? n How could you manage them better ? n Where are the opportunities to create business value ? – creating a more streamlined IT organization – reducing IT support costs – reducing unplanned outages / improving services provided 32 | *

Understand the Cost of Downtime n Indirect cost of downtime – Number employees/customers dependent Understand the Cost of Downtime n Indirect cost of downtime – Number employees/customers dependent on availability n Direct cost of downtime – Revenue, penalties, value of money 33 | *

Estimate Benefits n Infrastructure system management staff n Availability – Direct savings – Indirect Estimate Benefits n Infrastructure system management staff n Availability – Direct savings – Indirect savings n Talk to the business units n Identify other benefits by industry and environment – Mergers and consolidations – Outsourcing 34 | *

Action Plan n Get executive sponsorship and commitment n Data collection – Put the Action Plan n Get executive sponsorship and commitment n Data collection – Put the required data into the tool – Any estimated data must be confirmed n Generate results n Review the results with the sponsor n Present the study 35 | *

Thank You Thank You