New Articles

The Pandemic’s Impact on the Shift to Reduce Operational Costs and Improve IT Ops Productivity

costs

The Pandemic’s Impact on the Shift to Reduce Operational Costs and Improve IT Ops Productivity

The COVID-19 pandemic caused an upheaval in IT operations worldwide and forced businesses to reevaluate ways to cut down expenses, the most significant being operational costs. Leaders were challenged with having to operate with skeletal staff and remote teams, while also needing to keep enterprises running 24×7 with virtually no downtime. Let’s look at how the pandemic impacted IT operations and what needs to be done to ensure that enterprises can continue to operate cost-effectively.

Leaner Team Structures to Scale Down Non-Discretionary Costs

The first step organizations took in 2020 was to downsize the contractual resources and variable talent pool deployed in network operations centers to cut back on non-discretionary costs. Leaner teams were expected to perform a similar quantum of work, which in turn emphasized the need to move to greater automation in IT operations management (ITOM).

Going forward, the challenge will be to attract the right talent, do more with less, and introduce automation in business processes to make do with smaller teams. To help reduce the operations workforce, there is growing interest in intelligent tools for notification and escalation, artificial intelligence and machine learning (AI/ML) solutions that minimize alert fatigue and automation of ticketing workflows via IT service management (ITSM) integrations. Further, some amount of in-house work can be shifted to consultants and contractors on an as-needed basis, so the resource is no longer on the payroll after the project completes.

Remote Management and the Rise of DaaS
With COVID-19 forcing businesses to give up leased and rented office spaces to reduce capital expenditure, skeletal staff were deployed onsite with others moving to a work-from-home mode of operation abruptly. This heightened the need for greater security, availability of the right talent with the required software and hardware resources and the need for collaboration among geographically dispersed teams.

Desktop-as-a-service (DaaS) was one of the largest areas of the cloud to experience an increase in demand because of this shift. DaaS is an inexpensive option for organizations looking to support their workers by providing secure access to enterprise applications remotely. Tool integrations for notifications like Slack as well as remote collaboration tools and meeting solutions like Teams, Trello and Zoom also rose to prominence.

The Rise of DevOps and Agile Practices for Deployment Automation

Organizations needed mechanisms for remote and automated deployments due to staff shortages and the absence of a centrally located workforce. This necessitated agile practices for breaking down organizational silos between software developers and IT operations personnel. In 2021, we expect to see increased adoption and continued use of DevOps and agile practices as well as automation in the application deployment and maintenance process.

Data center automation replaces labor costs with software and configuration costs. Dedicated automation architects can ensure that DevOps and agile practices are implemented across the enterprise, thereby reducing the need for manual configuration, monitoring and maintenance tasks.

Revamping Application Infrastructure and Moving to IaaS for Intelligent Scaling

Organizations chose to review their expenditure on dedicated hardware and software solutions to see if a switch to cloud and open source was possible. Virtualization i.e., moving to cloud (microservice and container-based architectures) emerged as a solution to the conundrum, since it reduces the number of physical servers required in the enterprise and the cost of maintaining applications can be significantly brought down.

Cost savings in cloud services have a real, immediate and perceptible cash impact, as moving to the cloud reduces capital expenditures for servers and related network equipment, transforming one-time capital costs to monthly operating expenses. The deployment of virtual management systems enables faster adoption of cloud platforms. Co-sourcing environment management functions provides the added advantage of having the right talent managing the environment with technical know-how and service guarantees in place.

Cloud providers can also provision additional resources like disk space, CPU, memory and communication lines faster and cheaper than on-premise servers and infrastructure. Intelligent workload trend-based capacity forecasting can help deliver resources accurately and avoid unnecessary expenditure.

Software licenses for new and existing tools can be re-examined to ensure that the cost of onboarding and integration with the existing toolset does not include hidden expenses or jeopardize existing investments in the ITOM infrastructure in any way. Eliminating unnecessary tools will also reduce the annual maintenance bills and staff time required to keep systems up and running.

Preventive Healing and Automation for Maximum Uptime

As businesses moved to more digital transactions and saw a marked increase in online traffic due to storefronts being shut, the primary challenge was to provide close to 24x7x365 uptime with reduced IT operations personnel, something made possible by automation. Enterprises adopted artificial intelligence for IT operations (AIOps) solutions providing proactive incident detection and autonomous resolution capabilities coupled with ITSM integrations, so the entire ticketing process was completely automated without the need for human intervention.

Traditional AIOps solutions suffer from certain shortcomings, including the inability to predict issues before they occur and initiate preemptive measures to avert outages. However, preventive healing solutions use patented techniques providing predictive detection of issues and allowing for remedial steps to be put in place so the issue can be averted. Some modes of preventive healing include dynamically optimizing or shaping the workload so the underlying system behavior remains unaffected, provisioning additional resources in cloud environments so the system can handle workload surges or projecting resource requirements based on a what-if analysis of future workload trends so businesses can perform app-aware scaling. Automation of ticketing workflows can be achieved by integrating notification and ITSM platforms.

Despite predictive alerting, some issues may still occur due to sudden network or storage outages, hardware glitches or third-party dependencies being unavailable. In such cases, accelerated root cause analysis with event correlations and suggestions on where the error originated can significantly reduce mean time to repair (MTTR). In the hands of a skilled IT operations analyst, time-synchronized contextual data comprising logs, diagnostic data, business error codes and code-level traces prove invaluable in establishing the chain of causation and closing the incident with minimal time and effort spent, thus leading to a more cost- and resource-efficient data center.

________________________________________________________________

ABOUT THE AUTHOR: Girish Muckai is the chief sales and marketing officer at Heal Software Inc., the innovator of the game-changing preventive healing software for enterprises known as HEAL, which fixes problems before they happen. To learn more, visit http://www.healsoftware.ai/.

supply chains

Biden Issues Executive Order to Review Critical Supply Chains

President Biden issued an “Executive Order on America’s Supply Chains” (the “EO”) on February 24, 2021, ordering 100-day and 1-year reviews of certain critical supply chains.

The initial 100-day review aims to assess risks posed to the following critical supply chains:

-Semiconductor manufacturing and advanced packaging

-High-capacity batteries, including electric vehicle batteries

-Critical minerals, including rare earth elements

-Pharmaceuticals and active pharmaceutical ingredients

The EO also orders supply chain reviews of six (6) sectors with reports due within one year. The sectoral assessments will cover:

-Defense

-Public health and biological preparedness

-Information and communication technology

-Energy

-Transportation

-Agriculture

The EO leaves open the possibility that other industrial bases may be assessed as part of the one-year review and that digital networks, services, assets, and data (“digital products”), goods, services, and materials not otherwise described in the EO that span more than one sector may be assessed.

The EO directs that both the 100-day and 1-year reports shall review “critical goods and materials,” “other essential goods and materials,” manufacturing and production capabilities of such critical or essential goods and materials, supply chains’ resiliency, and all the major risks to the supply chains. The EO imagines the term “risks” broadly. Risks include physical threats such as climate and other natural events, as well as geopolitical dynamics. Risks also comprise digital products’ inclusion in supply chains and the possibility that such digital products could be exploited. Additionally, the EO directs that the risk of human-rights or forced-labor abuses along the supply chains be described.

The EO arrives as shortages or anticipated shortages of semiconductors are widely reported, especially in the automobile industry. A general policy goal of the Biden Administration is to increase domestic manufacturing capability and economic growth, particularly in communities of color and economically distressed areas. The EO could be the first step in a significant reimagining of how the U.S. incorporates civilian and defense supply chains into its national and economic security and foreign policy strategies. At this time, however, the Administration has only ordered reviews. Interested companies should anticipate and consult the relevant Secretaries’ 100-day and 1-year reports for forthcoming policy suggestions.

__________________________________________________________

Tony Busch is an attorney in Husch Blackwell LLP’s Washington, D.C. office.

Cortney O’Toole Morgan is a Washington D.C.-based partner with the law firm Husch Blackwell LLP. She leads the firm’s International Trade & Supply Chain group.

Camron Greer is an Assistant Trade Analyst in Husch Blackwell LLP’s Washington D.C. office.