Click here to close now.


Open Source Cloud Authors: Liz McMillan, Elizabeth White, Victoria Livschitz, Mike Kavis, Lori MacVittie

Blog Feed Post

Why BSM Fails to Provide Timely Business Insight


Business Service Management (BSM) projects have always had a reputation for over promising and under delivering. Most people know BSM as the alleged “manager of managers,” or “single source of truth.” According to the latest ITIL definition, BSM is described as:  ”The management of business services delivered to business customers.” Like much of ITIL this description is rather ambiguous.

Wikipedia however, currently describes BSM’s purpose as facilitating a “cultural change from one which is very technology-focused to a position which understands and focuses on business objectives and benefits.” Nearly every organization I talk to highlights being technology-focussed as one of their biggest challenges, as well as having a desire for greater alignment to business goals. BSM should therefore be the answer everyone is looking for… it’s just a shame BSM has always been such a challenge to deliver.

Some years ago I worked as a consultant for a small startup which provided BSM software and services. I got to work with many large organizations who all had one common goal: “to make sense of how well IT was supporting their business.” It was a tremendous learning experience for me where I frequently witnessed just how little most organizations really understand the impact major IT events had on their business. For example, I remember working with a major European telco who would have an exec review meeting on the 15th calendar day in the month, to review the previous months’ IT performance. The meeting was held on this date because it was taking 4 people 2 weeks to collate all the information and crunch them into a “mega-spreadsheet.” That’s 40 man days effort to report on the previous 30 day period!

As organizations continue to collect an increasing amount of data from a growing list of data sources, more and more organizations I talk to are looking for solutions to manage this type of “information-fogginess,” but are skeptical about undertaking large scale BSM projects due to the implementation timescale and overall cost.

Implementing BSM:

I’m sure the person who first coined the term “scope creep” must have been involved in implementing BSM, as most BSM projects have a nasty habit of growing arms and legs during the implementation phase. I dread to think how many BSM projects have actually provided a return on their substantial investments.

BSM has always been a heavily services-led undertaking as it is attempting to uniquely model and report on an organization. No two organisations are structured in quite the same way; each having its own unique IT architecture, operating model, tools, challenges and business goals. This is why BSM projects almost always begin with a team of consultants conducting lots of interviews.

Let’s look at cost of implementation for a typical deployment such as the European Telco example I described earlier. This type of project could easily expect 100 – 200 man days of professional services in order to deliver. Factoring in software license costs, training, support & maintenance costs, the project needs to deliver a pretty substantial return in order to justify the spend:

Cost of BSM implementation:

Professional services

(100-200 days @ $1800 per day)

$180,000 – $360,000

Software license

$200,000 -$500,000

Annual support and maintenance

$40,000  - $100,000




$445k – $985k

Now if we compare to the pre-existing cost of manually producing the monthly analysis:

Existing manual process costs:

Days per month creating reports


Number of people


Total man days effort per year

480 days

Average annual salary


Total working days per year


Annual cost to generate reports


Even with our most conservative estimates it would take almost 5 years before this organization would see a return on their investment by which time things will probably have changed sufficiently to require a bunch of additional service days in order to update the BSM implementation. This high cost of implementation is one reason why there is such a reluctance to take the leap of faith needed to implement such technologies.

The most successful BSM implementations I am aware of have typically been the smaller projects, which are primarily focused around data visualization; but with powerful open-source reporting tools such as graphite, graphiti or plotly available for free, I wonder if BSM still has a place even with these small projects today?

What does success look like?

Fundamentally, BSM is about mapping business services to their supporting IT components. However, modern IT environments have become highly distributed, with SOA architectures that have data dispersed across numerous cloud environments and it is just not feasible to map basic 1:1 relationships between business and IT functions any more. This growing complexity can only increase the amount of time and money it takes to complete a traditional BSM implementation. A simplified, more achievable approach is needed in order to fulfil the need to provide meaningful business insight from today’s complex IT environments.

In 2011 Netscape founder Mark Andreessen famously described how today’s businesses depend so heavily on applications when he wrote “software is eating the world”. These applications are built with the purpose of supporting whatever the individual business goals are. It seems logical then that organizations should look into the heart of these applications to get a true understanding of how well the business is functioning.

In a previous post I described how this can be achieved using AppDynamics Real-time Business Metrics (RtBM) to enable multiple parts of an IT organisations to access business metrics from within these applications. By instrumenting the key information points within your application code and gathering business metrics in real time such as the number of orders being placed, the amount of revenue per transaction, and more, AppDynamics can enable everyone in your organization to focus on the success or failure of the most important business metrics.

These are very similar goals to those of a traditional BSM project, however in stark contrast to every BSM project I have ever heard of; AppDynamics can be deployed in under an hour, without the need for any costly services as detailed in a previous blog post introducing Real-time Business Metrics.

Instead of interviewing dozens of people, architecting and building complex dependency models, gathering data and analyzing it all to make sense of what is happening, AppDynamics Real time Business Metrics focuses on the key metrics which matter to your business, providing focus and a common measurement for success across IT and The Business.

So before you embark on a long and costly BSM project to understand what is happening in your business, why not download a free trial of AppDynamics and see for yourself; there is an easier way!

The post Why BSM Fails to Provide Timely Business Insight written by Tom Levey appeared first on Application Performance Monitoring Blog from AppDynamics.

Read the original blog entry...

More Stories By AppDynamics Blog

In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally.

DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.

@ThingsExpo Stories
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context w...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, will discuss the impact of technology on identity. Should we federate, or not? How should identity be secured? Who owns the identity? How is identity ...
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new data-driven world, marketplaces reign supreme while interoperability, APIs and applications deliver un...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Electric power utilities face relentless pressure on their financial performance, and reducing distribution grid losses is one of the last untapped opportunities to meet their business goals. Combining IoT-enabled sensors and cloud-based data analytics, utilities now are able to find, quantify and reduce losses faster – and with a smaller IT footprint. Solutions exist using Internet-enabled sensors deployed temporarily at strategic locations within the distribution grid to measure actual line loads.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, will explore the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Today’s connected world is moving from devices towards things, what this means is that by using increasingly low cost sensors embedded in devices we can create many new use cases. These span across use cases in cities, vehicles, home, offices, factories, retail environments, worksites, health, logistics, and health. These use cases rely on ubiquitous connectivity and generate massive amounts of data at scale. These technologies enable new business opportunities, ways to optimize and automate, along with new ways to engage with users.
The IoT is upon us, but today’s databases, built on 30-year-old math, require multiple platforms to create a single solution. Data demands of the IoT require Big Data systems that can handle ingest, transactions and analytics concurrently adapting to varied situations as they occur, with speed at scale. In his session at @ThingsExpo, Chad Jones, chief strategy officer at Deep Information Sciences, will look differently at IoT data so enterprises can fully leverage their IoT potential. He’ll share tips on how to speed up business initiatives, harness Big Data and remain one step ahead by apply...
There will be 20 billion IoT devices connected to the Internet soon. What if we could control these devices with our voice, mind, or gestures? What if we could teach these devices how to talk to each other? What if these devices could learn how to interact with us (and each other) to make our lives better? What if Jarvis was real? How can I gain these super powers? In his session at 17th Cloud Expo, Chris Matthieu, co-founder and CTO of Octoblu, will show you!
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
SYS-CON Events announced today that Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, will keynote at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target - this makes the integration of these separate pipelines and the coordination of software upd...
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.