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A2010-574 - Assess- IBM Tivoli Business Service Manager V6.1 Implementation - Dump Information

Vendor : IBM
Exam Code : A2010-574
Exam Name : Assess- IBM Tivoli Business Service Manager V6.1 Implementation
Questions and Answers : 129 Q & A
Updated On : April 19, 2019
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A2010-574 Assess- IBM Tivoli Business Service Manager V6.1 Implementation

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A2010-574 exam Dumps Source : Assess- IBM Tivoli Business Service Manager V6.1 Implementation

Test Code : A2010-574
Test Name : Assess- IBM Tivoli Business Service Manager V6.1 Implementation
Vendor Name : IBM
Q&A : 129 Real Questions

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IBM Assess- IBM Tivoli Business

private equity Acquires IBM advertising utility company | killexams.com Real Questions and Pass4sure dumps

IBM sells its advertising and commerce utility platforms to Centerbridge companions, a private equity company. IBM CEO Ginni Rometty continues to sell off growing old belongings.

IBM has offered its advertising and commerce application structures to Centerbridge partners, a private equity company. The deal continues IBM CEO Ginni Rometty’s strategy to sell off growing older business strains whereas making an attempt to pivot extra abruptly towards cloud, security, cognitive computing and other growth markets. financial phrases of the deal were no longer disclosed.

The sale includes here IBM advertising and commerce application offerings:

  • crusade Automation
  • advertising and marketing Assistant
  • Media Optimizer
  • client event Analytics
  • content Hub
  • true-Time Personalization
  • personalised Search
  • ordinary conduct trade
  • clever Bidder
  • expense & promotion Optimization
  • funds Gateway
  • The deal, field to regulatory approval, is anticipated to close in mid-2019. At that element, the belongings should be equipped right into a newly branded standalone enterprise led by means of current IBM VP Mark Simpson and different IBM veterans. 

    IBM has been promoting off a lot of slow-increase or contracting belongings in recent quarters. Examples encompass:

    IBM is anticipated to announce its newest quarterly outcomes on April 16, 2019. however the business has made some growth with cloud, AI and quantum computing, critics proceed to ask yourself if the business can really return to a increase company. In its q4 of 2018, profits fell three % to $21.eight billion.

    Return domestic

    Syncsort Debuts Unified IBM i protection Suite | killexams.com Real Questions and Pass4sure dumps

    April 10, 2019 Alex Woodie

    Syncsort rolled out a set of application this week that unifies a couple of of the IBM i security items it has got over past two years. Dubbed guarantee security, the suite is designed to help IBM i shops lock down servers and give protection to them from threats whereas getting a handle on emerging records laws, like the looming California purchaser privacy Act (CCPA).

    The acquisition of vision solutions by way of Syncsort returned in June 2017 closely coincided with the two corporations’ joint pivot into records security. vision, of direction, turned into greatest known as a provider of IBM i high availability options when it introduced its acquisition of Enforcive (formerly BSafe international protection). A day later, Syncsort announced its intent to buy imaginative and prescient solutions.

    Months later, Syncsort followed up with its acquisition of Cilasoft, which introduced a Db2 database safety and monitoring answer to the well-rounded suite of IBM i protection tools that it acquired with Enforcive. finally, in may also of 2018, Syncsort nabbed the IBM i encryption application from Townsend security, leaving that company effortlessly out of the IBM i market.

    Executives with Syncsort stated they deliberate to bring unified product suites for both its safety and HA traces, including an entire rationalization of underlying code-bases (it also obtained trader’s, giving it four disparate IBM i HA items: MIMIX, iTera, quick-EDD, and the legacy ODS/OMS line).

    Syncsort officials pledged closing 12 months that the unification would begin with a standard GUI that works throughout HA and security strains. while we have yet to see a clarification of the HA products, the business is naturally relocating forward with the unification of the safety tools around the assure company.

    Syncsort assure carries 4 modules in the meanwhile, together with Compliance Monitoring, access handle, statistics privacy, and security possibility evaluation. The modules can be purchased and used as a single entity, or purchased and used one after the other, Syncsort says.

  • assure Compliance Monitoring: This product, which is in accordance with the QJRN/400 product in the beginning developed by way of Cilasoft, watches key areas of the IBM i operating equipment and database for indications of pastime. If it detects something is amiss, it'll ship a true-time alert to an administrator, or alternatively ship it to a 3rd-party SIEM solution. apart from monitoring the Db2 for i database, it may block areas of the database from view.
  • assure access manage: This product, which is according to application bought from Cilasoft, is designed to evade unauthorized entry to the IBM i server, including by means of network, conversation ports, database protocols, and the 5250 interface. It additionally offers multi-component authentication (MFA) and integrates with the SecureID expertise from RSA. This product can also be used to quickly give users with expanded authorities for engaging in certain projects.
  • guarantee facts privateness: This product, which is in keeping with Townsend’s Alliance and FTP application, provides a full range of encryption capabilities for IBM i facts, including for data at leisure in the database, and facts in movement over network protocols. The application also gives statistics tokenization and file masking, in addition to cozy file transfer capabilities.
  • guarantee protection risk evaluation: This product, which is in line with expertise at the beginning developed via Enforcive, provides an automatic safety assessment for IBM i servers. The application checks 12 categories of security values, and recommends ways that clients can increase safety.
  • while the safety chance assessment providing consists of utility from Enforcive, the majority of the assure is according to know-how that originated from the Cilasoft and Townsend offers. The enterprise continues to sell the complete Enforcive safety application lineup as an unbiased solution.

    Syncsort used the existing Cilasoft and Alliance items as jumping off facets, and considerably repackaged the know-how and combined it with greenfield utility building. for instance, the brand new commercial enterprise computer screen dashboard communicates elementary counsel related to the guarantee lineup, and it additionally communicates the fame of the MIMIX and brief-EDD HA items, too.

    there is also failover scripting to make certain the guarantee product line continues to display screen and offer protection to IBM i facts in the adventure of an HA failover (provided, of route, that those HA products are managing the failover technique).

    The assure protection suite is designed to bolster the safety postures of IBM i stores, which is a huge situation in the meanwhile. A recent Syncsort survey discovered that forty one p.c of IBM i retail outlets say they've been the sufferer of a cyberattack, with one more 20 % saying they weren’t bound in the event that they had been attacked.

    “Our new guarantee safety product leverages our wealth of IBM i protection know-how and potential to help businesses address their maximum-priority challenges,” states Syncsort Chief Product Officer David Hodgson in a press release. “This contains maintaining towards vulnerabilities brought by means of new, open-source methods of connecting to IBM i techniques, adopting new cloud features and complying with multiplied executive rules.”

    while it became designed to offer protection to residents of the european Union, the regular facts coverage rules (GDPR) also applies to American businesses. Complying with GDPR requires corporations to be certain they aren't mishandling their valued clientele’ information, together with gaining their permission to collect records, and giving users the right to ask their records to be deleted.

    The CCPA that goes into effect on January 1, 2020, is similar in some tips on how to GDPR. however there are key changes that groups doing company with California residents will deserve to be privy to.

    linked reviews

    Syncsort Snags EView for Log information Hooks

    Syncsort Unveils MFA, Bolsters IBM i protection Suites

    Syncsort Talks Rebranding, IBM i Product method

    Syncsort Acquires Townsend’s IBM i Encryption application

    Syncsort Finds safety Key To business Resilience

    Syncsort Bolsters IBM i security Play With Cilasoft buy

    Syncsort CEO Discusses imaginative and prescient Deal, Product Plans

    imaginative and prescient Buys Enforcive, Then gets bought And Merged With Syncsort


    IBM's Tivoli has vast company enchantment | killexams.com Real Questions and Pass4sure dumps

    The IBM Tivoli suite of products is a good looking extensive church. The latitude of functions it will probably control varies from monitoring and discovery of assets to business carrier administration (BSM), which links enterprise capabilities and organisational cost.

    "over the past few years we've got been translating the mannequin from methods management to provider management," says Mark Fieldhouse, strategy supervisor for IBM Tivoli.

    during this appreciate, IBM may be accused of aping BMC's positioning - placing procedure over technology - nevertheless it comprises some superior experience-administration points.

    The challenge it faces is in meeting the demand for IT governance. it is working on a stronger link between a challenge and portfolio management means, a stage of integration which is a simple characteristic of IT governance. this is itself handiest gigantic as a result of IBM has made any such key priority of IT governance, since it allows the business to construct on its product and consultancy choices.

    Witness IBM's statements about its commitment to its governance and chance administration approach. Analysts say they are expecting additional progress within the coming months.

    IBM Tivoli crucial to present better flexibility in the IT workforce. This become a pre-requisite to CIOs to being capable of bring about important benefits for their groups, with the aid of redeploying elements to the greater productive, price-including activities.

    "IBM Tivoli offers a complete product however it's effortless to make use of," says Roy Illsley, senior researcher at analyst The Butler group. "It is properly built-in at the facts layer, no longer just a veneer on top of current administration equipment."

    This degree of integration is fundamental for any business-large tool set, says illsley. "so long as third-birthday party tools can also be integrated at this stage IBM's conventional Agent (UA) provides this means," he says.

    IBM Tivoli has, like many significant companies' items in this market, tried to follow the choicest observe instructions of ITIL. however nevertheless, when IBM is in a more expansive mode, it has created a miles-accomplishing set to equipment. Its integrated suite of products can cowl the total spectrum of ITSM. This enables IBM Tivoli to provide an all-encompassing, single role-based mostly portal method to the consumer interface. The upshot of here is that each one of this counsel may also be made attainable to the entire vital americans.

    The link to BSM is a significant capacity in any systems management device, says Illsley. In certain the configuration of enterprise rules that can drive a totally automatic response.

    It may, as an instance, work on the basis of predictive evaluation of the systems to invoke a protection or backup response. this would absolutely transform the IT assist characteristic from a reactive response unit to a proactive brought-cost unit.

    one of the crucial downsides of this know-how is that these advanced, predictive capabilities are simplest feasible for definite adventure kinds. moreover, they require the aiding know-how for implementation. however, analysts say that as IBM builds on the abilities capabilities of its IBM Tivoli product range, these automatic, predictive responses should be the foundations of an mind-blowing price proposition. corporations may be able to see where they could predict their return on funding, and it won't be intricate to visualise the scale.

    IBM has one important differentiator, say analysts. The IBM Tivoli unified method (ITUP) product is a degree of difference between IBM and its competitors, says Butler's Illsley, because it provides a device that helps managers to outline procedures. This tool and these strategies can be in keeping with any number of average frameworks, from control pursuits for tips and linked expertise (CoBIT), to ITIL, Six Sigma or any others.

    Butler community's Illsley thinks here's in line with what CIOs were telling him. IBM has delivered a suite of products that provide many of the equipment the market wants these days, he says. but there is still scope for growth.

    How does IBM examine to the competition even though? other vendors have developed items along similar lines. youngsters, ameliorations are within the aspect. These depend on the latitude of capabilities provided and these in turn hinge on a seller's ability to integrate them with business strategies. this is where IBM has an abilities, as its provider capabilities have blessed it with the potential to form expertise round company processes, and never the opposite direction round.

    The vendor's skill to enforce the solutions in a modular format, that can then work the third-celebration tools that the end person may additionally have already got invested in, is an important power

    "IBM Tivoli is one of the most appropriate tools on the marketplace for any individual needing finished feature units maintaining handle of a posh IT infrastructure," says Illsley.

    IBM turned into canny in recognising this shift at an early stage. It begun changing its Tivoli product range from the outdated architectural framework against this internet-enabled beginning mechanism. Who would have idea IBM would triumph at a contest to give open techniques?

    If there is a criticism, it's that realizing the particular person product capabilities is not handy. peculiarly if they were optional add-ons. normal, even though, analysts say IBM Tivoli is a brilliant product with features that other competitor items lack.

    a must have records

  • leading items: Tivoli, ITUP
  • most important customers: Coca Cola, Barclays, British Airways
  • Market share: 25%
  • Annual profits: $7.7 bn
  • variety of personnel: 12,000 international
  • Licence fee: no longer disclosed
  • Butler community/Datamonitor financial rating: 9.64

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    Assess- IBM Tivoli Business Service Manager V6.1 Implementation

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    IBM Energy Management News: Toshiba Laptop Integration; Projects with Louvre, Air Force, LA Schools | killexams.com real questions and Pass4sure dumps

    IBM announced an energy-management partnership with Toshiba, and projects to manage resources at the U.S. Air Force, Louvre Museum and Los Angeles Unified School District, at the company’s Pulse 2012 conference in Las Vegas this week.

    Toshiba’s new line of enterprise laptop PCs will integrate IBM Tivoli Endpoint Manager energy management software with Toshiba’s BIOS feature to allow IT managers to apply company’s specific policies for energy controls and security across PCs within an organization. Energy usage data is measured by the PC hardware and sent to IT staff, who can remotely put each group of PCs into specific power-saving modes or make peak-shift management changes as needed.

    Security features include management server authentication, and optional blocks on file writing to external storage. Toshiba plans to sell the new lines of enterprise PCs by mid-2012.

    IBM’s Tririga smarter buildings software will help the U.S. Air Force Office of the Civil Engineer gauge energy efficiency and automate the management of its worldwide physical infrastructure portfolio, including buildings, vehicles, runways and other infrastructure in 170 locations.

    The portfolio covers more than 626 million square feet of real estate, 100 million square yards of airfield pavement and 10 million acres of land.

    USAF said the software will help it remove redundant systems, make better decisions about resource management and predict scenarios before they impact service and safety. Using the software USAF plans to reduce operating costs and energy consumption through integrated workplace management, energy assessment tools, and building condition-based maintenance, IBM said.

    IBM said that it is working with the Louvre Museum in Paris to preserve and protect its facilities and artwork. The 650,000-sq.-ft. museum is home to thousands of objects and artifacts, some dated to prehistory, requiring about 65,000 repairs and maintenance visits with hundreds of vendors per year, the company said.

    IBM said that its Maximo Asset Management software is used by the museum’s staff to control corrective and preventative maintenance processes, as well as oversee the efficiency, real-time operation and management of the museum.

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    IBM also announced a crowdsourcing mobile app project with the Los Angeles Unified School District. Faculty, staff, students or parents can send text messages or photos to report maintenance requests, such as leaky faucets, broken air conditioning units and other resource-wasting issues. Software from IBM business partners CitySourced and Esri then automatically shows staff where the problem is located, IBM said.

    In the first eight months of the program’s implementation, the school district responded to more than 750 maintenance requests.

    The school district is the second-largest in the country, with 700,000 students and more than 14,000 buildings over 710 square miles, and receives more than 300,000 maintenance service requests a year.


    IBM Spends $400 Million on SAN Intiative | killexams.com real questions and Pass4sure dumps

    News

    IBM Spends $400 Million on SAN Intiative
  • By Scott Bekker
  • March 28, 2000
  • IBM Corp. today announced a $400 million initiative to offer products, services and global and regional testing facilities to the storage area network (SAN) market.

    Big Blue claims these solutions and services will help customers manage information and transactions efficiently across increasingly complex, multi-vendor networks.

    "IBM's SAN initiative is about leveraging every division of the company to deliver on the promise of SANs for our customers -- interoperability between vendor systems and true data sharing," said Linda Sanford, general manager, IBM Storage Subsystems Division in a statement.

    As part of the initiative, IBM (www.ibm.com) is establishing more than 50 SAN Solution Centers with its business partners, SAN testing facilities in Montpellier, France as well as in Makuhari, Japan, and a SAN and Storage Services consulting practice within IBM Global Services.

    IBM Global Services is delivering new services to help customers implement SANs and other storage solutions. These include Enterprise Storage Assessment, Planning and Design Services, Implementation Services, and Support Services

    IBM will also offer products as a result of the initiative, including new models of the Shark Enterprise Storage Server, and new fibre channel-based SAN solutions.

    The new models of its Shark Enterprise Storage Server feature IBM’s 64-bit RISC processor, 16 gigabytes of cache, and additional PCI buses, resulting in up to a 100 percent increase in throughput. Existing Shark customers can upgrade to the new processor to gain performance advantages. The enhanced Shark software will support advanced copy services and native fibre channel connectivity as those features become available.

    IBM is also announcing new enhanced, industry-standard, fibre channel-based routers, gateways, switches and managed hubs that enhance SAN connectivity in an enterprise. In addition, IBM Magstar tape products can now connect in a SAN using the IBM SAN Data Gateway, allowing them to support the sharing of tape drives within a SAN.

    On April 4, IBM’s Tivoli Systems Inc. (www.tivoli.com) will announce Tivoli LAN-free SAN management software, enabling information to be shared across different application programs, servers and storage devices.

    IBM also introduced a SAN solution using a cluster of two Netfinity servers with fibre channel connections and Legato Systems Inc. (www.legato.com) mirroring extension software. The cluster can be separated by as much as 10 kilometers (6.2 miles). IBM's SAN Fibre Channel Managed Hub creates high-speed interconnections for such applications as high-availability clustering, storage consolidation, and LAN-free backup.

    Industry analysts estimate that by 2002, SANs will be used by 70 percent of all medium and large companies. – Thomas Sullivan

    About the Author

    Scott Bekker is editor in chief of Redmond Channel Partner magazine.


    Improving IT Charging Based on Services | killexams.com real questions and Pass4sure dumps

    This chapter is from the book 

    IT charging is the process of billing for IT services rendered to internal or external customers. The charging process uses two key sets of information: 1) rates based on accounting information, forecasts of current and future customer demand, and other relevant information; and 2) usage information based on actual measures and estimates. Together, this information is used to create a price, or assessment, for a given service, as shown in Figure 4-5.

    Figure 4-5

    Figure 4-5 Charging process develops rates, captures utilization, and results in a price or assessment.

    Determining Cost Center Charging Methods

    As organizations mature from a reactive IT organization to an IT cost center, they develop a standardized charge or assessment framework using a chargeback (or IT costing) model to define available costs associated with its services. Through the development and population of a chargeback or IT costing model, you will determine your service rates. There are many different definitions of chargeback models, but they combine IT accounting data to determine a service's cost with usage data from capacity management and other processes to develop a price. In an article on CIO.com, titled "Chargeback Demonstrates IT Value in the Enterprise," Mark J. Denne discusses a number of approaches to developing chargeback methods.10 They include subscription, peak level usage, user-based pricing, and ticket-based pricing.

    Regardless of the pricing method you choose, cost centers, by definition, charge an appropriate level of fees for IT products and services to exactly equal the costs incurred by the IT organization to provide these IT products and services, which is considered "break even" from a financial perspective.

    To help you develop your rate and a means for capturing utilization information, we have summarized a general method for developing a chargeback model. This method includes developing a chargeback model to determine the rate; populating the chargeback model with a mix of assumptions, averages, and actual costs; and determining utilization, or quantity of services. Developing measures of utilization is a key link to the demand management process.

    Develop Chargeback Model to Determine Rate for Each Service

    The cost center uses the chargeback rate and utilization method to develop a pricing or assessment method to recover these costs through a charge or assessment. To determine your service (or chargeback) rate, you should start by creating a chargeback template to determine your cost and populate the chargeback template with expense information. This will help you determine the cost of your specific service. Then, based on your pricing decisions and ability to determine service utilization, you can determine the rates you will charge for a given service.

    To determine your chargeback rate, you first need to know your cost. We recommend that you develop a template for collecting information by service that allows you to provide a top-level summary sheet, while also providing significant detail on specific areas in the services inputs and buildup worksheet.

    The top-level summary sheet can then be used as a common language between the business unit and IT unit regarding the cost of a specific service. Table 4-6 shows a simple framework to develop the top-level summary sheet. The top-level summary worksheet highlights the unloaded chargeback rate, applicable overhead rates, and published chargeback rate for your services. The unloaded chargeback rate, also often referred to as all direct costs, is the cost without any overhead applied.

    Table 4-6. Top-Level Summary Sheet

    Published Service

    Unloaded Chargeback Rate

    Administrative Overhead Rate

    Published Rate (Rounded)

    Hosting

    $16,428

    5%

    $17,250

    Batch processing

    $2,857

    5%

    $3,000

    Collaboration service

    $3,809

    5%

    $4,000

    This top-level summary sheet is useful to both the IT organization and the business group because it:

  • Is simple to understand
  • Demonstrates transparency of overhead costs, which can be a contentious issue between business units and IT organizations
  • Provides detail to executives who might be reviewing their rates and budget
  • Next, the organization should develop a summary of key costs for each service, such as the service inputs and buildup worksheet in Table 4-7. These costs include hardware, software staff costs, and other cost types. If an organization has created cost types within its IT accounting practices, these costs should match these types within this sheet. This sheet is critical for transparency of IT costs and establishes a common understanding with the business unit. The business unit and the IT department can review the various inputs to a service to determine whether they are necessary.

    Table 4-7. Services Inputs and Buildup Worksheet

    Published Services

    Hardware Cost (Purchase Price)

    Operating System (One-Time Cost)

    Staff Setup Cost

    Annualized Amount (with 3-year Depreciation)

    HW and SW Maintenance

    Annual Staff Cost

    Annual Cost

    Hosting

    $12,000

    $2,000

    $4,000

    $10,000

    $1,429

    $5,000

    $16,428

    Development of enterprise resource planning (ERP) customized application

    $12,000

    $2,000

    $4,000

    $10,000

    $1,429

    $150,000

    $166,428

    As you will see from Table 4-7, the process can be used for transactional services, such as hosting, or project services, such as application development. These buildup worksheets are effective ways to account for the need to capture differences in types of services, infrastructure, networking, and application development. To provide additional detail, you should develop a service-specific worksheet that includes the detailed support for your service's inputs and buildup worksheet. Several options to develop these service-specific summary sheets follow:

  • Use worksheet from accounting process: If your accounting process has grouped cost type information according to each service, this sheet can provide this role. For example, this accounting sheet can provide the detail you need regarding hardware, software, and personnel costs, which can be linked to the services inputs and buildup worksheet.
  • Create new worksheet that includes accounting data and assumptions: Organizations must often make a number of assumptions related to key costs. You should consider developing a worksheet that includes both accounting data and key assumptions.
  • External contracted (base) costs: The organization should then create a sheet that includes external costs, such as software licenses or vendor cost that are often external to the organization.
  • Internal costs (for example, salary, overhead, and financial information): This sheet generally includes internal costs, such as overhead, staff time, and other inputs that are internal to the organization. These sheets also summarize service-specific assumptions, such as the staff time allocation cost estimates for staff activities discussed in the basic approaches in the earlier section "Basic Approaches to Improve IT Accounting."
  • The structure of these worksheets needs to be tailored to your organization. You should structure them based on the information you have available and the audience that will use this information.

    Populate the Service Chargeback Model with a Mix of Assumptions, Averages, and Actual Costs

    After the finance and IT organization complete the chargeback framework, they should then work together to insert costs into the model. We would like to reinforce our discussion in the accounting section on using estimates, averages, or actual IT expenditures to develop costs. Many cost centers use assumptions and averages, rather than cost accounting data. For example, instead of listing the exact price of a server, the IT organization might list an average rate, sometimes referred to as a blended rate. These blended rates are the average of a number of purchase orders to determine the typical cost. Also, instead of exact FTE estimates for system administrators, the organization might develop a blended rate that reflects the average cost of a system administrator.

    In addition to the discussion of estimates, averages, and actual IT expenditure data in the accounting section, we provide key examples of benefits assumptions if actual data is not available:

  • Estimates or averages provide a baseline set of data to continuously improve your chargeback or IT costing model each year. For example, the first year an organization develops a cost model, a large percentage of the data may be based on the best assumptions that can be made at the time using available source data. However, each year the organization can replace key data with actual data.
  • Developing a mix of estimated and actual data creates a framework for enacting key process improvements. For example, it provides a common framework for the IT and finance departments to share information. This framework can help translate financial and operational information and help both the IT and business teams learn.
  • Determine Charge or Assessment Method through Standardized IT Pricing Framework

    Reactive IT organizations charge their internal or external customers through corporate overhead allocations rather than direct invoicing. This lack of transparency in IT budgeting is often viewed as a tax on business units and creates resentment by the business units. As an IT organization matures to a cost center, it develops a method to estimate the service's cost and the customer's utilization. This standardized IT pricing framework captures a service's cost and utilization (where appropriate). This framework could also service as the customer invoice. A simple customer template could look like Table 4-8.

    Table 4-8. IT Pricing Framework for Business Units

    Published Service

    Service Increment

    Service (or Chargeback) Rate

    Service Utilization

    Total Chargeback Cost (or IT Price)

    Hosting

    Per server

    $12,000

    1

    $12,000

    Batch processing

    CPU second

    $0.3

    10,000

    $3,000

    Collaboration service

    Per site

    $2,000

    2

    $4,000

    Application development

    Per statement of work (SOW)

    $25,000

    1

    $25,000

    Total

    $44,000

    The previous pricing framework highlights the difference between transactional services and services, such as application development, that may be based on a statement of work (SOW). The final item, application development, is an example of a project-based service that employs staff or contracts. Some organizations may take an SOW approach, in which a defined SOW summarizes that payment that will result from a given set of deliverables, such as the completed application or software package. Alternatively, you could develop a per-hour rate for application developers and charge the customer this hourly rate.

    After the IT organization has developed a framework, it should use this as a tool to engage its customers in a discussion of the charging process. These initial discussions will foster acceptance of this framework within the organization. The organization can then develop the inputs to the framework including the service (or chargeback) rate and the service utilization.

    Determine Utilization or Quantity of Services

    Because the IT organization has established its costs, it now needs to work with its existing customers to project out the near term the expected demand for each IT product and service, measured in projected quantity of IT products and services; to establish the projected overall demand, and to develop pricing for each IT product and service offered using project demand as a key assumption.

    To recover costs, you must develop an accurate measure of the quantity of services used by a customer or service. The cost center often uses actual measures and estimates to measure the quantity of resources used by each customer. As with expenditures, you should use automated tools to collect actual costs of service utilization data whenever possible. Following is a summary of three methods to measure utilization:

  • Metered usage: When the utilization can be precisely measured, the organization generally uses metered usage. This method is based on actual utilization, whereby the organization automates the collection of quantity of resources used by each consumer based on the agreed-upon metric. For more service-based estimates, this may include a time tracking system to track the time of application developers.
  • Fixed- or user-cost approach: Many cost centers may also decide to simply divide a service's cost by this forecasted quantity to develop a unit price. This process, referred to in ITIL as fixed or user costs, is one of the most simplistic methods for determining pricing. This fixed price could include a subscription to use a specific quantity of services. The more accurate the demand forecast, the fewer risks the IT organization will incur a budget shortfall. This fixed-cost approach can also be used if an SOW specifies a specific price for a specific output, such as the development of a new ERP system.
  • Tiered utilization: A hybrid approach includes tiered utilization, whereby an organization measures utilization of a specific service and groups customers into tiers. This utilization data may be gathered through either a demand management or capacity management process under ITIL. The use of an automated tool often supports this effort because one method to stratify the pricing of multiple tiers of IT product and service offerings is based on utilization versus resources.

    Developing tiered utilization can be combined with tiered rates, in which the IT organization offers tiers of IT products and services, such as stratifying storage into managed and basic storage. In other cases, the organization will offer premium and standard levels of support. Accurately presenting the tiers of IT products and services will help to clarify the pricing for internal and external IT customers.

  • Improving Your Charging Process to Become a Profit Center or Business Partner

    To improve the charging process as the organization views IT as a positive ROI or a business partner, the IT organization captures more accurate usage and cost information, often using automated tools that track IT resources and link them to their costs. The IT organization also develops linkages with other ITIL processes to considers as it develops rates. For example, it effectively values services and develops pricing in concert with the IT service catalog and aligns its expenditures to the service levels outlined in the service level agreements (SLAs) developed through the service level management process. This process is discussed later in this chapter.

    Many IT organizations also use chargeback models to price selected IT products and services, typically limited to the IT products and services provided in their IT service catalog. The cost analysis supporting the development of a chargeback model also provides operational information that IT organizations can use to manage their resource consumption, resulting in continuous improvement in IT operations.

    Improve Your Service or Chargeback Rate to Improve Service and Lower Costs

    To improve service or chargeback rate, your organization should use only exact costs to develop its IT costing model. The IT accounting process should provide exact costs that can be leveraged in the IT costing model. For example, the service-specific sheets discussed in the previous section should just be outputs of the IT accounting process. This data provides the organization with a true understanding of the provisioning value (or the cost) of each service. As a result, the organization can conduct service provisioning optimization activities to benchmark its costs against competitors.

    As your charging and pricing process becomes more advanced, your organization's price per billable unit recovers your full cost and a surplus amount that is the hurdle rate, which is discussed earlier in the chapter. For example, if your hurdle, or discount rate, was 5 percent, your IT price would be 5 percent above the cost of your service. This pricing method subjects your IT services to the same project standards commonly used in other financial initiatives.

    To improve service, an organization should link charging to the various internal contracts between the IT organization and its customers (SLAs) and internal contracts between organizational units within the IT organization (operation level agreements, OLAs) discussed in Chapter 2. This linkage helps the IT organization to clearly establish the value of its services to its customers. For example, if a customer would like more backups or quicker response time than the organization typically offers, the organization may want to develop a pricing mechanism to recover these costs.

    Implement Automated Tools to Monitor Resources, Costs, and Utilization

    To improve service, the organization should also charge customers for usage, rather than approximate consumption. As an IT organization matures from a cost center to viewing IT as an ROI or business partner, the IT organization often implements an automated solution to identify and monitor IT customers' utilization. These high-performing organizations often move toward resource-based chargeback software. There are a number of automated financial management tools. For example, Figure 4-6 summarizes how the IBM Tivoli IT Usage and Accounting Manager (TUAM) provides an IT organization with the capability to automatically monitor a given IT asset and attribute this asset to a given business unit.

    Figure 4-6

    Figure 4-6 Automated tools can link IT resources, costs, and utilization data.

    Automated tools that link the IT business office with the IT operational assets can be powerful enablers of mature IT financial management practices, providing the IT organization with resource-based charging capabilities. Automated tools provide the IT organization with the potential to know the exact costs of any IT asset, tie this cost with the IT organization's service catalog, and evaluate IT spending based on exact costs.

    However, implementing these tools can be challenging. As with any complex software implementation, the initial and ongoing costs can be substantial. Moreover, even if the IT organization implements these solutions effectively, the difficulty of applying them effectively can be substantial. The culture of the IT organization has to see the ongoing value of mature IT financial management practices and incorporate financial discipline into daily IT operations.



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    IBM A2010-574 Exam (Assess- IBM Tivoli Business Service Manager V6.1 Implementation) Detailed Information



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