Along with Stuart and Simon, I attended the annual IT Service management Forum in Birmingham on 9th and 10th of November. This is the event of the year for service management where 80 + suppliers exhibit their products including Service Desk tools, Monitoring tools, ITIL training and consultancy. Everyone serious about Service Management is there along with the all the governing bodies and sponsors.

The theme this year was ‘optimising IT services for business success’. Along with a few celebs, some I’d even heard of, there were 57 presentations spread across the 2 days on various subjects. Some of these are from consultants and vendors and these tend to be covert sales pitches and sometimes rather academic or theoretical  in that they are too good to be true or sound slightly removed from reality. The sessions given by employees of companies, govt depts, universities etc tend to much more real world and they share some of the problems and challenges as well as the benefits.

Of the sessions I went to one was entertaining but didn’t actually tell me anything, it was titled “can I have cheese with my burger please” which made me curious. I then spent an entertaining hour watching a presentation given by a good speaker with some great anecdotes and pictures but virtually devoid of anything useful. To give him credit, he made one good point which was that a Service Catalogue should not list every service on offer, it should just list the services available to the role of the user. The obvious benefit is to make it quicker to find the service you need but the other angle is staff morale. The example he gave was that the call centre user who needs a new PC could get a bit de-motivated if they see an option for the executives to book the company jet. Therefore Service Catalogues should be linked to active directories.

Two other sessions I went to were better but for different reasons, one was slightly alarming, the other very useful and relevant.

The alarming presentation was given by The University of Teeside and Northumbrian Water and was titled “Service management and the Youth of today”. The alarming thing about it was that Teeside is the only university in the UK (maybe even the world) where Service Management is included as a mandatory part of a computer science degree. They include ITIL foundation and about 50 hours of tuition + course work on the subject. Presumably other universities think that IT systems are created put live and then just look after themselves! Another alarming thing was that the students who are forced to do service management complain that it is diluting their IT skills. I don’t necessarily disagree with this but it’s alarming that they even think of this and explains why we sometimes struggle to attract the right people into service management. Maybe the answer is to stop calling it development and service management and have one name for the entire IT systems lifecycle. On the plus side the professor giving the lecture reported that most students felt quite positive about service management once they had completed it and obviously having an industry recognised qualification looks good on their CV.

The other interesting session was given by Co-operative Financial Services and as they are one of our customers I went along and was very glad I did. The title was “end to end service management – a low cost approach”. The focus of the presentation was on service reporting. A lot of  IT services companies are very poor at reporting, others like us put a lot of effort into producing very comprehensive and accurate reports with lots of graphs and metrics. CFS view from conducting surveys with their users is that users (and presumably customers) don’t want masses of detail and often don’t understand, or don’t have time to understand some of the metrics we produce such as availability figures. A report stating 100% availability would be reported as green and we’d think we’re doing a great job but the user may have had several hours of slow performance to put up with. If this was reported as one incident and as the system wasn’t down it was classified as a medium priority in line with the SLA then it probably didn’t even breach a service level. Other examples are where a recurring problem is fixed quickly every time, so again no breach of service level and a nice green service report but a frustrated user. The message here is that big fat reports are a lot of effort, often don’t get read and can even annoy the reader.

Their solution was to ask the user what they wanted – a novel approach!  What they came up with was a one page report with a single performance indicator and a calendar with trouble free days as green, other days were amber or red depending on the severity of problems occurring on those days. Behind the single performance indicator can be a variety of simple or complex metrics and measures based on the users view of an impact of a problem and the speed of resolution; these do not  necessarily need to be in line with the contract and can differ between depts for the same service. The user does not need to remember exactly how the performance indicator is made up but knows that they have agreed with the measures and what an acceptable figure is and can see the trends over time. The one page report also had a couple of other trends and free text but essentially it was a very simple and understandable view and probably less effort than the reports we produce. They also managed all this without the need of expensive monitoring and reporting tools.

cloud and seaDo the service level agreements (SLAs) offered by public cloud providers hold water? Or are they useless to a customer -and not worth the cyberspace they are written on? We decided to pick the cloud fraternity poster child – Amazon EC2 – review their current SLA offering (which is defined here), and then compare it with ‘traditional’ hosting vendors offerings.

First let’s review the Amazon EC2 SLA. We’re not offering a legal perspective here, but several things strike us as interesting about this:

  • The SLA does provide for some punitive damages in the sense that should the service availability be between 90% and 99.95%, Amazon would still have to pay out 10% of your payments to them.
  • If EC2 was only available 60% of the time, their liability would be limited to 10%.
  • In no way are the damages that Amazon pay out linked to your potential losses. If Amazon had a major outage that could cost you millions, they might only pay out a few thousand in compensation.
  • The definition of ‘unavailable’ that they use here could potentially allow you to claim service credits even when your application is functioning perfectly well if we’re reading the SLA correctly, because ‘region unavailable’ appears to mean that one (not all) of the availability zones within a region is down. For example, if there are two availability zones within your region – your application could be running in both of these zones, such that it fails over between them. You’d get credit if a zone went down even in the event of the application failing over to the backup zone – even though your app is still ‘up.
  • Availability is measured in 5 minute blocks, which implies that they exclude all 4 minute downtimes. 4 minutes is a long time for a critical system to be down.
  • The other angle on this is that the advantage of using EC2 is that it gives you much easier ways to recover from any outage that does occur (provided it doesn’t bring down the whole region, when things get a little trickier).

Having said all of that, how different is this arrangement from what traditional hosting providers offer?

The view from our Head of Service Management is that it looks fairly standard – the hosting providers we work with have similar offerings. One of them offers up to 50% off the monthly fee for poor availability which sounds great but when you read the small print it’s measured in quarterly periods so they can get away with a bad month so long as they have two good months in the same quarter. Amazon’s small print doesn’t look too pleasant from an admin point of view as you must claim within 30 days of the last outage, and have to provide evidence of the outage etc.

Service credits are things that procurement and legal departments like but IT departments can’t be bothered with them, as they cause too much hassle to claim back a small sum that doesn’t really hurt the supplier and doesn’t compensate the customer for the real loss. We have come across some companies who offer a service whereby they take 100% of the service fee if they meet service levels i.e. you don’t have to prove it or claim it, which is obviously more attractive.

Our conclusion is that Amazon have paid lip service to service credits, and have probably done enough to satisfy procurement/legal requirements but nothing to shout about.

Thanks are due to my colleagues Paul Russell and Andy Budd for their input on this material…

Further reading on this subject…

Along with Karen, Zoe and Stuart, I attended the IDC Service Management Outsourcing seminar in London on 25th June. http://www.idc.com/getdoc.jsp?containerId=IDC_P18536 

Over 100 delegates attended from a wide range of companies, a few of them are existing customers such as BP and Morrisons. I gave a 30 minute presentation on the common pitfalls of outsourcing software along with some solutions to these problems with the aim of the presentation being that an equitable partnership between customer and supplier is the only sustainable arrangement in the long term.

This customer/supplier – win/win relationship message was echoed by a number of other suppliers who gave presentations. Other suppliers included Capita, Verizon, Google (and one of their customers), Wyless, Xerox, Cognizant and MEDZ. Presentations focussed mainly around traditional outsourcing and off shoring, some were incredibly dull; hopefully mine wasn’t!! 

Google’s presentation was related to their SaaS cloud offering and was definately food for thought for me. Very straightforward cost model and very competitive pricing for mail, calendar, office type tools, document sharing, anti virus, anti spam filtering and more.

One thing that struck me as pointless was how much time the large companies devote to talking about their own organisations. Some of the presentations wasted half of their slot on slides about how many employees they have, how many countries they’re in, how many offices… They could just say “we’re massive” and skip the whole intro. Conversely my presentation said very little about Smart421 which is a lesson for me next time.

Marketing and Sales will be following up the leads that we gathered during the day and also following up with the full list of attendees that IDC will send us.

 It was a very successful and well organised event and I am hopeful that some of the leads will be converted to real business in due course.

Thanks to Joseph for getting there early and organising and packing away our stand, collateral, champers etc.

ok gloveI often think that we don’t sing our own praises enough at Smart421, and this was reinforced to me the other day when I received April’s customer survey results for the Service Management part of our business. It made me proud to be a Smartie! It’s part of the payback for all the hard work that goes into activities like being early adopters of ITIL all those years ago etc…

Here’s are just some of the quotes, each from a different customer in the survey:

  • “absolutely pleased with their knowledge and confidence of the system”
  • “dependability and thoroughness of execution, transparency of reporting and communication allow low overheads in maintaining the relationship – when compared across other suppliers”
  • “the team have delivered consistently on or in advance of agreed timeframes”
  • “Commercial propositions are responded to quickly, that’s a great help with our customer being so dynamic”
  • “Reports/feedback from [the team has] always been detailed, constructive and informative. Far beyond what I would have expected based on the experience I’ve had with other support teams”
  • “…continue to provide excellent support, as do the whole team”
  • “Response time is excellent. Very good in taking ownership and resolving issues.”
  • “[The team] have maintained their excellent level of service”
  • “All of this individuals who I have worked with have gone above and beyond the call of duty for what has been

    asked of them. It’s a pleasure to work with you all.”

  • “Very responsive and alert to the needs of our customer’s business. An excellent partner to work alongside, as they feel like part of the project team and can be relied upon like a colleague.”

The full details of the survey results are available – just ping us an email. Forgive me the sales pitch :)