Posted by: Stephen Burton | November 2, 2009

BTM – the pain relief for CMDB?

I have yet to meet a satisfied customer with a CMDB. It’s not like I go looking everyday but somehow the subject always seems to arise and people tend to get quite touchy on the subject. It wasn’t so long ago I worked for a company who spent a fortune acquiring an application discovery and mapping solution. It promised auto-discovery in real-time and all those wonderful things yet it seemed to die a cold death months after the acquisition closed. I listened to the sales pitches around “When applications go down the first question asked is ‘What changed’?” and the famous “75% of application outages are related to change”. To me that’s like stating the bloody obvious, of course something changed, if nothing changed the application would be still running.

The problem these early discovery & mapping solutions lacked is business context. They were inherently built to track IT interactions from server to server and technology to technology. They’d scan server ports, executables and protocols to try and piece together the relationships between IT assets within a data centre. Or they’d do it by listening to the actual interactions. They’d paint pretty little diagrams like the London Tube Map and then give you all the technology, versions and patch levels these assets were running. Some solutions were priced per cpu which can be highly lucrative when vendors told customers to put an agent on every server in their data centre. Unfortunately the one thing they didn’t discover or understand was the business services that ran across these IT assets. Applications and Business Services these days don’t just relate to 4 apache web servers, 8 weblogic servers and 1 Oracle database. The pervasiveness of SOA and mashups these days means a single IT asset can serve one or more business services. Applications and IT Assets no longer have a 1 to many relationship, an application isn’t simply a collection of segmented IT assets.

I did a search on Wikipedia for CMDB and found the quote “A key success factor in implementing a CMDB is the ability to automatically discover information about the CIs (auto-discovery) and track changes as they happen.”. If a business service is a CI then that’s a pretty tough proposition to auto-discover and track change on. How do you discover business context from IT assets? For starters you can stop looking at the IT assets for answers, you’ll get your versions and patch levels of Linux but you won’t get a description of your business services that flow through them.

I’ll put my head on a lance and state that Business Transaction Management (BTM) can add significant value to any CMDB project. When you start to monitor business transactions you start to acquire lots of key intelligence on how your business runs and maps to IT. You auto-discover transaction flows and the IT assets they interact with, all in real-time. It also gets better, you can store all this data historically so that you can report and compare business services and their CI’s before and after a change. You can even visualise how the business and IT asset dependencies change over time using transaction flow/topology diagrams as key evidence. When a change occurs on an IT asset you can instantly report whether this change had a positive or negative impact on your business services or transactions by reviewing related latency and SLA. I’m not claiming BTM is the answer to all CMDB pain but it solves some of the most basic and common challenges:

  1. Auto-discovers business services and their IT dependencies in real-time
  2. Stores information historically so you can track, report and quantify change when it occurs

Maybe BTM is the pain relief CMDB projects need right now.

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Posted by: Assaf Amit | October 30, 2009

Caveat Emptor

“Buyer beware” — a legal doctrine under which the buyer of goods assumes full risk for the quality of the goods.

When we started working on a BTM solution back in 2003, there was no market yet for business transaction management. The very premise of needing to start managing the business transactions, on top of all the other things that were already being managed by IT, was questioned by many. We worked hard to demonstrate that even with all the existing monitoring tools in place, IT organizations had a huge visibility gap that prevented them from aligning their activities with business needs and resolving problems quickly and efficiently.

A common question that we were asked back then was who our competitors were. Our answer was that no one else was offering something similar to our solution. On one hand, I was proud to be able to offer something that no one else was smart enough to be offering, but on the other hand there was always that lingering doubt – if no one else was in BTM, was it because no one really needed it?

The years went by, and a growing number of customers along with the encouragement of industry analysts made it very clear that the complex transaction flows in large heterogeneous environments demand a new class of management solutions. The need for business transaction management has been officially validated.

As a side-effect of getting market validation for our solution, we’re now facing the opposite phenomena to the one we witnessed in our early days. Many of the large software vendors as well as some smaller ones have jumped on the BTM bandwagon and are claiming to have a solution for end-to-end monitoring of all business transactions in complex IT environments. Few of these vendors actually developed new code. The others have mostly repackaged their existing assets, which are typically able to provide some level of visibility into a platform like a message bus or an application server, and are now claiming that it can provide the holistic end-to-end view of all business transactions. Today, when we present our solution to prospects, they no longer say BTM is a new concept that they need some time to digest – quite often they will say that they’ve heard the same pitch before and want to understand how we are different. No longer having to prove there is a real need for our solution, we now have to differentiate ourselves from a dozen vendors whose marketing slides claim they can deliver on the BTM promise.

Abraham Lincoln once asked how many legs a dog has if you call the tail a leg. The answer, he explained, was four, because calling a tail a leg doesn’t make it a leg. In my six years of being involved in technical BTM sales, if I learned one thing it is that the only way to build a BTM solution is from the ground up. Taking your old Java profiling tool and bundling it with a database plug-in and a network sniffer doesn’t make it a BTM solution and will not be able to deal with the problems that BTM solves in Production environments. You can call it BTM and claim that it can show end-to-end transaction flows 24×7 in Production, but to paraphrase Honest Abe, simply calling it BTM doesn’t make it so.

Dear reader: If you are one of the IT professionals who are evaluating BTM solutions and having a hard time telling them apart, start by checking which solution evolved from a single-tier monitor and which was built for BTM from day one. Compare the platform coverage matrices, and take the time to verify each vendor’s claimed abilities to auto-discover and show complex business flows with many different protocols inside and outside of the data center. One of the nicer aspects of BTM is that you should see its value right away, literally a few hours after you install. If a tool can only show you parts of your topology, or requires you to install several different products and integrate them together, then it is probably not a BTM solution. Buyer, beware! The slides of many vendors may look alike, but only a few have real BTM technology as well as the expertise required to get it implemented in a way that will deliver on the true promise of business transaction management.

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Posted by: Andy Wetzel | October 22, 2009

We still drive wood paneled station wagons

Every summer growing up, my family would take a one week vacation by car.  That car was a long, green, wood paneled station wagon.

1972_Ford_Country_Squire2

Before the trip my Dad would consult maps, plan the route and stops.  The worst feature of the wagon was the frequent overheating.  A dubious trait of its operator was, planning be damned, a penchant for getting lost. The “highlight” of these trips was the often hours spent in stopped traffic due to construction or on the side of the road, radiator spewing.  I have very fond memories of these trips.

Today cars have power everything:  A/C, satellite radio, GPS, Bluetooth, DVD players and TV’s!  How different is a similar summer trip today?  Cars are much more reliable.  GPS navigation shouldn’t replace trip planning, but it certainly lessens the stress of remembering every turn (being a route “expert”) and most importantly can put you back on track quickly when a problem occurs (i.e. detour, missed turn).

So where are we now as computer users or professionals in IT?  Many of us still end up “on the side of the road with the hood up” trying to address a computer problem, transaction problem or system wide outage.  We are still at the point where we are not sure exactly what will happen when “Submit” gets hit.

But just like automotive technology, monitoring and management technology has improved over the years. However, many monitoring suites still have the feel of that same old wood paneled station wagon trying to pass as cutting edge by bolting on after-market modules. At some point, upgrading the next generation solution is the best way to go – a solution that was built from the ground up to include all “standard” enhancements as well as the most recent breakthroughs.

Imagine as an IT professional being able to view each user’s transactions – when they started, how long they took (or are taking), where they went or are going, and if there is a problem, being able to quickly localize the problem and get the transaction back on track. This enables a shift from worrying about whether a transaction will complete or have drastic variations in the time it takes, to managing cost, assuring security and delivering superior user experience. One day all of these capabilities will be delivered “standard.”

Business Transaction Management (BTM) is a big step forward in this area.  BTM allows IT to provide users a better trip and to deliver more value to the business – all this without one having to be one part planner and architect and one part master mechanic.  That doesn’t mean we won’t look back and remember the days of “all hands” calls with nostalgia.

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Posted by: Marie-Pierre Belanger | October 22, 2009

BTM what is it for me?… really

While on my spinning bicycle in class this early morning on a cool New York day, I was cycling and grooving alondiscog on Diana Ross “if there’s a cure for THIS, i don’t want it”….. Being thankful I have time to do things I love. It reminded me of discussion I had with people working in IT multiple times; we IT have it though there is very little time for personal life:

we know our users are complaining, we know we are losing business, we have been trying to identify the issue for days, I am losing credibility, I missed several friends dinner, I work every weekends, I have to leave the office now because I have to jump on a change management conference call while driving with the kids screaming in the back of the car. I have other things on my plate, like launching our new private banking services, budgeting for new servers to address our merger with ABC company, I need to grow my business, we can’t even have a feel on how our services behave nor identifying simple problem such as one out of five times the browser hangs when entering employee badge number. The assumption I made last week on where the problem might have been are now wrong, the change management team applied a patch against that specific application and the problem didn’t go away. I am stress and tired…. I am stress and tired…. I am stress and tired…. I am stress and tired….

IT experts would say: “I have tools several, several, several, several tools, and it is true after triaging all the alerts, the tools were able to isolate issues but I really just care about what impacted my users in company ABC. What is the behavior of my most revenue generating transactions today and what will it be after we merge the two companies’ systems next week, how would I know if it improves or degrades the overall business service?”Familiar with THIS?  What if you would take a peek at introducing Business Transaction Management (BTM) into your IT process?

You would finally see at this moment the IT consumers and IT producers of business transaction information, knowing whom and what is impacted, focusing only on the most important services. What if you knew the exact flow of the information and the behavior of your special revenue generating credit card application transactions? BTM is a source of rich IT information.  It is much more than incident management, you can not only understand the current behavior and plan for growing your business you can see the impact on your services of an unplanned or planned change.

This is the cure to resolve the “THIS”, today, tomorrow, next week, on a constantly changing fluid IT environment. Really who could have predicted that you would transact business via text messages?  With this information on hand feel free to use those specialized tools and apply them appropriately to isolate granular application components issues but change the way you think about managing IT,  It is not always about technical components. Now, I won’t cure all your stress and fatigue as there always be screaming kids, traffic, lines at the coffee shop but one less thing to worry about, getting a little more of your personal life back, one more thing to proudly walk to your management and really feeling good that you know the “THIS” at every moment of the day and I guarantee you will be grooving along a Disco song….

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Posted by: Russell Rothstein | October 12, 2009

What’s Clear About Net Neutrality

The debate going on in Washington and the blogosphere around Net Neutrality is reaching fever pitch. If you haven’t been following the issue (no doubt due to spending too much time following your local gas station on twitter), it boils down to whether ISPs have the right to control what flows over their pipes or whether Internet users have the right to get unencumbered access to anything out on the Net. We’re especially intrigued by the debate going on in the Network World blogs between Johna Till Johnson and the dynamic duo of Sevcik and Wetzel. (Disclaimer: OpTier is a member of the Apdex alliance led by Peter Sevcik.)

Which brings us to our point that we can’t wait until someone buys the assets of Clear Corporate and restores the service. Clear is the company that created the speedy security lanes in the airport for those of us who hate to stand in long lines. Bidding is currently on to buy Clear’s assets from Morgan Stanley who took possession of the company when it went bust. (Note to our CFO: Don’t use money invested by Morgan Stanley in OpTier to make bid for Clear.)

You may be asking what Net Neutrality has to do with Clear. The answer, of course, is prioritization. Prioritization of data flowing over the network. Priority of people in airport security lines (very busy and important businesspeople, mind you). We here at OpTier think a lot about prioritization – prioritization of troubleshooting activities when outages occur, prioritization of infrastructure spending to maintain service levels, prioritization of virtualization deployments, and in general, prioritization of IT management in order to best support the goals of the business.

We believe prioritization is at the heart of the BTM approach and that’s what sets OpTier apart from the traditional APM vendors, even as they start to talk about business transactions in their pitches. While these vendors are cobbling together a group of silo monitoring tools using correlation techniques, we believe that true BTM means complete visibility into how every single business transaction executes from the end-user across all IT components with a complete breakdown of latency, resource consumption and SLA compliance.

Now that’s even worth waiting in line for.

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Posted by: Stephen Burton | October 5, 2009

Another “Less is More” Blog for ITSM and BSM Solutions

I’m jealous and in denial with several of my colleagues at work. It may have the “compare the meerkat” ring tone but my mobile phone was replaced last week with a new model of berry and I have to report I still feel inferior. It’s like I just traded a Porsche Boxster for a Boxster S, sure it’s a nice upgrade but everything is relevant and unfortunately everyone around me is driving a 911 Turbo at the moment in the  form of an iPhone.
Still, I’m not bitter. I think the introduction and innovation of the iPhone was exactly the kick up the ass that the mobile phone market needed. Think different is what Apple did and I think many IT vendors today should be following the same type of attitude for IT service management solutions. If I rewind the clock back just 5 years I owned a Sony Ericsson phone to make calls, a canon 2MegaPixel camera to take photos, an iPod “brick edition” to listen to music and a Dell laptop (also Brick Edition) to surf the web and do email. Today, I can get all that from an iPhone. The good news according to all my smug friends is that this iPhone thing actually works and is also quite sexy or something. The fact the camera, ipod, phone and browser is all integrated into the handset with an intuitive user interface is what is most impressive. If I owned an iPhone I wouldn’t need to buy 4 products from 4 different vendors.
Now try comparing with what I just said against the IT service management landscape today. Customers are buying ten to twenty point products to manage the different functions and components of IT. Most of which were never intended to work with each other from day one and have so many customisations that migrating to new versions is like moving house rather than redecorating the one you already own. Customers buy separate tools to manage end users, networks, servers, JVM’s, CLR’s, databases, storage and that is just a short list. That’s a lot of GUI, in fact that’s a lot of user logins and products to physically deploy, train and support across your IT organisation. And yet so often we hear the words “Less is More” used in conversation and sales pitches despite many vendors being responsible for most of this huge complexity in the first place. The key issue isn’t so much the number of products, it’s the way in which real users can navigate and perform real use cases to exploit the information across multiple products so they can manage IT more effectively. Dashboards in my opinion do not solve this issue, they provide a quick fix and band aid which is often used by a sales  team to try and promote “single pane of glass” views and “OOTB integration” yet in reality dashboards often limit navigation and task orientated use cases where you need to go from high level to low level data using a common context.
We recently announced a new product at OpTier last week which helps customers understand and manage their end user experience. Rather than create a new standalone product we listened to customers right from the start and did what they asked. We built the new product using the same framework we used to build our first product CoreFirst. Customers get all the benefits and features of a new product but they get it without all the drawbacks of buying yet another product to manage their IT services and components. They have a single GUI, a single data repository and a single user login to access both our products. Customers now get visibility of their end user experience with a complete profile of the business transactions that constructed those experiences all in a single click. We hid the technical complexity just like Apple did with the iPhone and on top of the integration we also decided to make the GUI more sexy in the process.
I may not own an iPhone but that doesn’t stop me appreciating what can be learnt from such innovation.

I’m jealous and in denial with several of my colleagues at work. It may have the “compare the meerkat” ring tone but my mobile phone was replaced last week with a new model of berry and I have to report I still feel inferior. It’s like I just traded a Porsche Boxster for a Boxster S, sure it’s a nice upgrade but everything is relative and unfortunately everyone around me is driving a 911 Turbo at the moment in the  form of an iPhone.

Still, I’m not bitter. I think the introduction and innovation of the iPhone was exactly the kick up the ass that the mobile phone market needed. Think different is what Apple did and I think many IT vendors today should be following the same type of attitude for IT service management solutions. If I rewind the clock back just 5 years I owned a Sony Ericsson phone to make calls, a canon 2MegaPixel camera to take photos, an iPod “brick edition” to listen to music and a Dell laptop (also Brick Edition) to surf the web and do email. Today, I can get all that from an iPhone. The good news according to all my smug friends is that this iPhone thing actually works and is also quite sexy or something. The fact the camera, ipod, phone and browser are all integrated into the handset with an intuitive user interface is what is most impressive. If I owned an iPhone I wouldn’t need to buy 4 products from 4 different vendors.

ITSM & BSM - Lots of pieces integrated but not the picture you expected.

ITSM & BSM - Lots of pieces integrated but not the picture you expected.

Now try comparing with what I just said against the IT service management landscape today. Customers are buying ten to twenty point products to manage the different functions and components of IT. Most of which were never intended to work with each other from day one and have so many customisations that migrating to new versions is like moving house rather than redecorating the one you already own. Customers buy separate tools to manage end users, networks, servers, JVM’s, CLR’s, databases, storage and that is just a short list. That’s a lot of GUI, in fact that’s a lot of user logins and products to physically deploy, train and support across your IT organisation. And yet so often we hear the words “Less is More” used in conversation and sales pitches despite many vendors being responsible for most of this huge complexity in the first place. The key issue isn’t so much the number of products, it’s the way in which real users can navigate and perform real use cases to exploit the information across multiple products so they can manage IT more effectively. Dashboards in my opinion do not solve this issue, they provide a quick fix and band aid which is often used by a sales  team to try and promote “single pane of glass” views and “OOTB integration” yet in reality dashboards often limit navigation and task orientated use cases where you need to go from high level to low level data using a common context.

We announced a new product at OpTier last week which helps customers understand and manage their end user experience. Rather than create a new standalone product we listened to customers right from the start and did what they asked. We built the new product using the same framework we used to build our first product CoreFirst. Customers get all the benefits and features of a new product but they get it without all the drawbacks of buying yet another product to manage their IT services and components. They have a single GUI, a single data repository and a single user login to access both our products. Customers now get visibility of their end user experience with a complete profile of the business transactions that constructed those experiences all in a single click. We hid the technical complexity just like Apple did with the iPhone and on top of the integration we also decided to make the GUI more sexy in the process.

I may not own an iPhone but that doesn’t stop me appreciating what can be learnt from such innovation.

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Posted by: Motti Tal | October 1, 2009

Experiencing IT

I’ve been in IT for longer than I care to admit.

This week, as we were putting the final touches on the exciting launch of our new Experience Manger product I had a recollection from the “beginning of time”. It was more than 20 odd years ago, and I was given ownership of the main logistics and maintenance operations management application for the Navy shipyards. No, not an SAP module – this is pre SAP times, and not a interactive application even. It was a batch application and users in the shipyards would feed it with information about planned and on-going production, maintenance and repair work on a daily basis by filling in data cards, to be punched in by “data processing clerks”. Our Main Frame COBOL  programs would do their magic overnight  and issue a set of reports that would be FACed to the yards (No, not FAXed – FACed as in “get them out with the First Available Courier). Nifty things could be done with these reports like identifying critical project paths, forecasted delays and applying workforce optimization. We were very proud of the smart code that produced them.

On my first day in my new role as the application owner I get a call from my chief customer, the guy who runs ops in shipyards. He cordially invites me over to visit, “I want you to come see how your stuff is used in the field”. Next thing I knew, I had a protective helmet and gloves on and was spending a day with the hardened men of the shipyard in the belly of submarines, metal workshops, and on the deck of the patrol ships being quality inspected for battle readiness. Everywhere I looked the input forms for our application and the output report cutouts were hung, and in the ops office planning officers were huddled around the planning charts produced the night before. They talked to me about application changes they need and about being able to update during the work day and to get reports on demand, and they repeatedly reminded me of the time when the reports did not arrive in the morning and work was halted, and when data was missing from the reports because it had not made it into the night run. They gave me a taste for what it feels like to be a customer of our applications and felt it was the very first thing they needed to do to make me a better partner.

Fast forward to today’s reality: the essentials have not changed – the most important thing IT professionals do is still putting business enabling products in the hands of our customers – the business users. And these products still have to work again and again and again for each and every user and continuously improve. A primary concern of IT professionals will always be a true and deep understanding of those users and the ways in which they use business enabling IT services.

20 years after MF batch heydays, we are fortunate to live in an era when understanding how users experience IT services does not require taking a ride to the shipyards or  visiting the online consumer’s home. And as the underlying technology has evolved to be far more complex than those early COBOL days so has the focus on the quality of experience.

On this day of the launch of our Experience Manager product it feels great to take a part in making the IT experience a better one for all involved – the users consuming the services and the IT professionals providing them.

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Posted by: Stephen Burton | September 9, 2009

Business Service Management – well what can I say

The famous red sweater and beard.

I’ll be honest “Business Service Management” as a phrase has never sounded exciting for me. It sounds generic, woolly and uses words that generate flashbacks of my university lectures delivered by people with red jumpers and beards. Needless to say I did some digging recently on the internet and was pleasantly surprised by the wealth of information and vendors who have a story in this space. As you might guess the definition of BSM varies, which is ok until you begin to think “Do I just make up my own definition of BSM or do I work with someone else’s?”.

BSM opinions talk a lot about managing IT from a business perspective. To be honest I haven’t seen an enterprise software pitch that doesn’t talk about aligning the business with IT these days.  For me though, the aligning bit is more of a mindset than a killer enabling technology, process or methodology.  The way an employee approaches things or thinks has a lot to do with how they manage or work. IT exists solely to deliver a competitive edge to the business that funds it. If every person in IT thought “What impact am I having on the business” once or twice a day then its my belief that the business and IT would be closer aligned, more efficient and more successful. I’ve never been a fan of IT outsourcing for this exact reason – do the people working for a 3rd party IT outsourcer ever think or care about the business they are supporting or impacting? A few do but most probably don’t I’d imagine.

Here we are in a gloomy recession where business performance is all that matters. Huge losses and decreased revenue for many businesses  have resulted in cost cutting and a focus on re-prioritizing business functions and services. How much do businesses spend on service X, Y and Z and how much do they make from X,Y and Z. It would be foolish to think that businesses would continue to invest in services that didn’t generate a return. The next bit is then figuring out where all these business services exist within the world of IT. If you’re going to focus on service X, Y and Z and de-commission A, B and C then you absolutely need to understand where X, Y, Z, A, B and C exist and what dependencies they have with each other and the applications/infrastructure that underpins them.

sqlIf businesses are going to start changing people’s mindsets in IT then they need to provide them with the right tools so they can start to learn how the business runs on IT. I bet most DBA’s have no idea which business transactions or services are executing against their schema’s these days. You might be sceptical and say why is this important? Should a DBA tune the top 10 slowest SQL Statements? or should they tune the SQL statements that relate to the top 10 business services? This is where BSM technology like Business Transaction Management (BTM) comes in handy. When you can track all business services and transactions across your entire infrastructure you gain this visibility of how the business runs on IT. With intelligence into business transaction latency, resource consumption and SLA across all tiers you begin to see first hand the real impact IT has on the business. Business services have been running across IT for decades, with BSM and enabling technology like BTM its only now IT is beginning to see the bigger picture.

I know it sounds simple but if you work in IT try thinking once or twice a day what impact will you have on your business. If you don’t know then its worth exploring what BSM and enabling technology like BTM can do for you.

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Posted by: Motti Tal | September 3, 2009

CMDB Dead on Arrival?

You know those weeks when ten different people happen to talk about the very same thing from five different angles? Well last week was CMDB week for me, and this week already started with the same topic on three different calls and five email threads.

Every customer, integrator, vendor and analyst with whom I spoke had a similarly sad story to tell. Projects that start with great expectations, ranging from pre-change impact assessment to post change operational business impact analysis and from business architecture mapping to technical application component dependency insight. Then varying degrees of positive experiences using the automated discovery tools to populate the CIs and their technical dependencies. And then a frustrating disillusionment. It becomes clear that these maps are not going to provide more than marginal value that hardly justifies the effort, and the great leap into real business service mapping must be taken.

Some take a “boil the ocean” approach. They spend the next three months with several people trying to map one business service such as “Online client support” top to bottom down to the granular service as consumed by users. All this time and effort is spent only to discover that the maps are incomplete due to reasons such as “it would take months just to reverse-engineer that old piece of black box we kept from the legacy system”. They are inaccurate due to reliance on “hard data” such as “I think we that for time deposit services we use the TXMP CICS transaction to do interest rate calculations, but not really sure, need to look at the programs…” And the worst of all, even the best maps no longer describe reality three months into the project because the application has already changed twice and the infrastructure setup once!

Others take the “let’s start with some high level maps” approach. Good on paper, and somewhat easier to implement, these approaches end up creating high level maps that are as good as telling you a tornado is impacting the state of Ohio now! Well it’s a pretty big state to go looking for the impacted communities and by the time you start the search based on this “mapping” 911 will already tell you who’s been impacted. The common response from management to status updates on these projects is ”want to tell me we invested all of this effort and money to uncover issues we already knew about?”

Bottom line: People with the best intentions to put CMDBs in the center of their IT alignment initiatives and power effective configuration, and problem change management processes that truly put them on a path to better service quality and improved operation efficiencies, are finding themselves in a tough spot. Projects are being scrapped, put on hold, and alternatives are being desperately sought.

It was gratifying to be able to share with these folks the experiences of organizations that enjoy truly automated business to IT mapping. As described in a previous post “Does change management impact your infrastructure or your business? – BTM adds tremendous value to the mapping of services to CIs. It not only provides these benefits standalone, which is a great approach to justifying CMDB projects if you have not engaged in one yet, but can also salvage failing and stalled CMDB initiatives and resurrect the confidence in their value to the business.
While clinically dead on arrival, a shot of BTM can definitely revive CMDB.

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Posted by: Assaf Amit | August 25, 2009

Putting a Price Tag on BTM

The best things in life are free, but BTM solutions are not among them.  After all, managing complex business transactions requires many talented people to dedicate many months of their valuable time to making it happen.  So how much should it cost?  What is the “sweet spot” that balances the investment in bringing a BTM solution to market with the value that the users are getting out of it?

As a vendor of BTM solutions, we know what our costs are, so that part of the equation is fairly simple to figure out.  Trying to put a dollar amount on the value of BTM is where things get trickier.

The common way of quantifying the value is breaking it down into value points that derive from the different ways customers use BTM.  For example, practically every user who deployed a BTM solution in Production has been using it, among other things, to prevent application outages.  If we can determine the monetary cost of an outage – and we can – and if we can show that BTM has reduced outages by a certain percentage (or eliminated them entirely), we will be able to calculate how much money was saved by deploying BTM for outage avoidance.

And outage avoidance is just one of the many use-case scenarios for BTM.  Virtually everyone who implemented BTM has also discovered how useful it can be for problem isolation and resolution.  Just like with outages, it is possible to measure or estimate the cost of the problem determination and resolution cycle.  If it can then be demonstrated that the Mean Time to Repair (MTTR) for performance issues dropped by 70% since a BTM solution was implemented, we can add this windfall as another component in the total value of BTM.

We can come up with more use-case scenarios for BTM and estimate how much money was saved in each one of them.  BTM can cut costs by improving processes such as application optimization, QA testing, SLA management, capacity planning, activity-based costing, application consolidation, and more.  Each one of these cost savings can contribute nicely to the bottom line value of BTM in an organization, but does this total really represent the value of BTM for the organization?

I hereby propose that it does not.

If we examine all the different scenarios in which BTM is used, we can see one common element and that is that BTM provides a new level of visibility that did not exist beforehand.  BTM allows IT to see things that they could not see before.

Consider this analogy: Nine year-old Jack is a vision-impaired kid who, for the first time in his life, gets a pair of glasses that allows him to see clearly.  How much are the glasses worth to him?  We could point out that with his new glasses on, Jack successfully avoided an incoming car as he was crossing the street and saved himself from being badly injured or worse.  Also, Jack now spends only 30 minutes a day doing homework whereas before it used to take him well over two hours.  Furthermore, Jack’s family can finally move out of their expensive house, which has special amenities for the vision impaired, and into a regular house.  This will cut down their rent by almost 20%.

Each one of these observations can be translated into a dollar amount, but is this getting us any closer to determining the true value of glasses for nine year-old Jack?  What about the fact that for the first time, Jack can see what his parents and sister look like?  His amazement when he found out that his cat actually has one blue eye and one green eye?  His pride at finally being able to read books and watch TV just like the other kids?  Isn’t Jack getting far more value out of these simple discoveries and accomplishments than from having to spend less time doing homework?

BTM is a game-changing technology. Being able to see transactions clearly enables IT to stop “flying blind” and start making informed decisions that take service management to the next level.  Just like Jack with his new glasses, once IT starts using BTM regularly, they can no longer manage without it even for one day.  What, then, is the real value of BTM for an organization?  The question will remain open for now, but I can tell you that much – it goes far, far beyond just being able to avoid outages and fix problems faster.

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