Gartner G-Cloud Service Definition Consulting for Cloud: Gartner Cloud & ICT Cost Optimisation — Cloud Services Baseline For further information on Gartner support for Cloud initiatives visit: http://www.gartner.com/technology/research/cloud-computing/services.jsp This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorised recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline ■ Service Description Gartner will independently assess the cost or price of a client’s Cloud service provision, where it is provided in-house, or through an external service provider or both. The assessment will ensure that both ICT and business executives have an accurate assessment of their Cloud service position relative to their organisation’s peer group in the Gartner market place databases, with opportunities for improvement through: Final presentation to executive stakeholders (IT or business) and tailored executive summary to suit the audience Key Benefits ■ Using Gartner frameworks and models the project will capture items of internal and external expenditure in an overall summary that facilitates comparisons of staffing, ICT Services hardware, software, networking etc. ■ Providing both an industry (governmental) and service based peer comparison, to ensure that recommendations are relevant to the client; ■ ■ Identifying areas of potential concern (i.e. Cost, Service Level Agreements, Value for Money), both at high level, and per delivery area within scope; Understand pricing and cost from both a governmental (‘market’) perspective, and opportunities for improvements based on the workload and volume of Cloud services being consumed ■ Recommendation of next steps to provide an action plan, and areas for further focus Establishes recommendations for further analysis of each of the identified areas of optimisation including achievability ■ Gartner data sources will be used to provide answers to key questions, for example: Allows client organisation to gain an independent insight into both “basic IT procurement” and Cloud service opportunities ■ Utilising a proven measurement framework based on business and data analytical interactions with many large Government organisations and also Global 500 private sector organisations ■ ■ – Is this a competitive market price for the Cloud and other services being provided? – Where can economies and improvements in the value proposition to our users and stakeholders be made? Key Deliverables Price ■ ■ IT Cost Optimisation (ITCO) report which comprises: ■ Cost and price information used for the test ■ Overall conclusions, market positioning and recommendations ■ High level sizing of opportunities identified (price, cost, service levels) © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 1 Gartner will charge a firm fixed price of £61,025 per service tower (service tower example can be for instance service desk, or end-user computing, or server operations, or mainframe, or storage area networks, or voice networks, or data networks, or applications etc.) excl. VAT, incl. all expenses for this service. Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Full List of Deliverables ■ Project Plan — following Project Initiation, a plan will be prepared to cover roles and responsibilities, business owners , client stakeholder involvement, key milestones and timescales for the review ■ 2 Workshops — to assist client teams with data collection, using client schedules of cost and contracts which detail service pricing for external contracts ■ Summary of Data Collected — Using Gartner templates of cost, price and service level, a summary of the cost breakdown for the client organisation, for agreement and sign off. This will include analysis of cost and price, service levels, high level metrics such as IT spend as a % of organisational spend, and high level maturity via interview or self-assessment. This will be confirmed via: ■ Workshop 3: Data Freeze Confirmation — Based on a facilitated workshop ■ Report 1 — following Gartner analysis of the market positioning, the report will include high level metrics, tuned by client peer comparisons by delivery area, covering key cost/ price per unit and potential opportunities identified ready for the next step © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 2 Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Approach Schedule ■ Using Gartner databases of key metrics, cost, price, service levels and maturity, to compare client against peer organisations ■ Through use of two workshops and interviews to collect data, to achieve an IT baseline within a 4 to 6 week period. Reasons why Others use Gartner ■ To identify gaps to good market practices and opportunities for improvement in cost and price ■ Gartner has a track record of identifying real and material IT cost optimisation opportunities, like SLA adjustment resulting in increased Value for Money or cost optimisation of typically 10% to 20% ■ To understand the current and desired future state of IT Cloud and services, and support client teams in achieving both strategic and tactical change ■ Gartner will field a highly experienced team to ensure maximum leverage of expertise and insight for you as the client ■ To input into client IT strategy and supplement existing planning Project Team ■ Gartner has developed a proven methodology and fact based analysis using the unique Gartner Benchmarking databases to provide a firm foundation to identify real and achievable cost reductions ■ Gartner will provide consultants which are experienced in the area of base-lining of IT and evaluation against market. The project will be led by a Director, or an Associate Director and supported by a team of subject matter experts. ■ Gartner will follow an accelerated process, using proprietary tools, industry experience and focused data collection ■ You will be engaging recognised industry specialists that are: © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 3 – Experts in Benchmarking and IT best practices – Experts in optimising service delivery models – Experts in organisation optimisation Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Assumptions ■ ■ ■ The due diligence (‘as-is’) data are reasonably available via interviews and documentation review. The client will provide timely access to all appropriate personnel to be interviewed. These personnel will have the ability to provide data necessary to complete this project, answer questions, provide existing documentation and attend working sessions. Service pricing assumes that the client will arrange all sessions with the client personnel. ■ All data collection and interviews/workshops will take place via telephone or in person at the client offices. ■ The client will designate a project manager to act as the primary point of contact for this project who will be expected to work closely with the Gartner employees as needed and will: (a) approve project priorities, detailed task plans and schedules; (b) facilitate the scheduling of Gartner interviews with appropriate client personnel; (c) notify Gartner in writing of any project or performance issues; and (d) assist in resolving project issues that may arise. ■ ■ The client is to schedule the client resources for project activities and provide meeting facilities as necessary. ■ The client personnel will be made available per the final project schedule. ■ Any requests for additional information (beyond the details described in the tasks above) that are made by the client will be considered a change in scope for this engagement and will be handled accordingly . ■ All deliverables will be developed using Microsoft products (for example, Project, Excel, Word and PowerPoint). Changes to Scope The work effort described in this service definition assumes that the client personnel are available to assist in the project as defined in this Proposal. In the event that the client personnel are not available, a change of scope may be necessary. The client will review and approve documents within five business days. If no formal approval or rejection is received within that time, the deliverable is considered to be accepted by the client. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. ■ 4 ■ The scope of the engagement is defined herein. All client requests for changes must be set forth and explained in writing. As soon as practicable, Gartner shall advise of the cost/schedule implications of requested changes and any other necessary details to allow both parties to decide whether to proceed with the requested changes. The parties shall agree in writing upon any requested changes prior to Gartner commencing work. ■ As used herein, “changes” are defined as work activities or work products not originally planned for or specifically defined by this service definition. Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Information Assurance Backup Restore and Disaster Recovery ■ Gartner possesses analysts and consultants with various security clearances, or we will acquire those clearances as the client demands. ■ The Gartner service under discussion does not require Gartner to manage or store any critical client data on the client’s behalf. Therefore, as there is no risk to the client and no break in service that will affect the client experience, there is policy required. ■ Gartner associates are bound by very specific rules around client confidentiality and security given that our clients reveal to us their greatest challenges and difficulties in order that we can help and support them most effectively. ■ Gartner’s benchmarks are predicated on the confidentiality of its data sources, with only outline information given as to the nature of the data points contained within its databases (e.g. Government; UK; workload range of X-Y end users, and the like) Service Migration Data Restoration ■ There is no need for a Service Migration plan given the nature of the service under discussion. The client is able to complete and conclude the service without any ongoing process being required for transfer of service or information to an alternative provider or successor. ■ This does not apply: all data retained is anonymised before use with other clients; no client is able to access this data directly and therefore there is no data restoration process related to this service. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 5 Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Onboarding Offboarding ■ Does not apply. Gartner’s process involves guiding the client staff through the baseline activities, either through workshop or through structured interview. ■ Does not apply. Gartner’s process does not rely on any individual’s knowledge of the client IT organisation, cost base. There is some dependency on accessing the correct member of client staff with whom to discuss key areas of data collection. Gartner’s recommendation is that this be handled during the project initiation phase. ■ Gartner retains responsibility for agreeing any data collected with the client sponsor/ project manager ■ Gartner retains responsibility for agreeing any data collected with the client sponsor/ project manager © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 6 Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Pricing Ordering and Invoicing Process ■ This service is provided at a firm fixed price of £61,025 per service tower excl. VAT, incl. all expenses for this service. ■ Gartner will bill for 100% of the professional fees at contract signing. ■ Service towers defined are: service desk, end-user computing, server operations, mainframe, storage area networks, data networks, applications, IT security and day rates. ■ All invoices are payable net 30 days from date of invoice. While Gartner does not itemise billing for professional services, Gartner agrees and will comply with any reasonable requests for records substantiating our invoices. Financial Recompense Model Termination Terms (by Consumer / by the Supplier) ■ In the event that a Service does not meet the specifications set out in the applicable Service Description, the breach will be handled in accordance with the Liability and Termination terms set out in the Call-Off Agreement. ■ Services may be terminated without cause by the Customer on at least thirty (30) Working Days’ notice. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 7 Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Service Management Service Constraints ■ Gartner Advisory is focused on the delivery of high quality and timely advice and guidance to its client base, and has a number of quality gates which it has built into its products: ■ This is not applicable to this service. ■ Gartner’s benchmarking process is UKAS ISO9001 accredited and includes the completion of key project governance artefacts such as a project initiation document, project plan, progress review calls, and Quality Assurance by the relevant Managing Partner for Government ■ Gartner Consulting recommendations are produced independently without the influence, review or approval of outside investors, shareholders or directors. For further information on the independence and integrity of Gartner Research, see “Guiding Principles on Independence and Objectivity” on our Web site, www.gartner.com or contact the Office of the Ombudsman at ombudsman@gartner.com or +1 203 316 3334. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Service Levels ■ This is not applicable to this service. 8 Gartner Service Definition — Cloud & ICT Cost Optimisation – Cloud Services Baseline Training Trial Service ■ This is not applicable to this service. ■ Gartner does not offer a trial service option in relation to this service. Consumer Responsibilities Technical Requirements Data Collection ■ Client may be asked to provide a projector, to assist with the discussion of cost, price, service level and maturity items at the workshops. ■ Client will provide the necessary support to all data collection activities and workshops. ■ No other technical requirements exist. ■ All data collection and interviews/workshops will take place via telephone or in person at client location as agreed to at the project initiation. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 9