ITSM Options AnalysisComparison/Analysis/Recommendation

AGENDA Purpose01

Analysis and Recommendation02

Appendix03

2

3

INTRODUCTION

THE PURPOSE This executive summary provides the results of our high-level comparative analysis of potential ITSM options

• We developed a detailed briefing that captures all of our analysis. Those are available now or could be adjusted based on customer feedback. The detail includes:

o In-depth information and data to evaluate ITSM options for modernization

o Approximate costs/risks of either staying on the current platform or rebuilding functionality with a new ITSM tool

4

ANALYSIS

• We looked at 5 potential systems to consider based on industry trends:

• We researched both leading industry ratings from Gartner and Forrester as well as crowd source ratings G2 and Peer Insights

• We independently scored each option across a set of 15 people/process/technology criteria which were determined to be the most relevant and important to complete this analysis

SMAXService Manager

Org Impact/Change Cost/TCO Integration

Capabilities

Risk of Failure

VendorStability/Financials

Training Requirements

Ease of Administration

Cloud Capabilities

Vendor Lock-In

FunctionalityPlatform & Data Security

508 Compliance

Ease of Use

Federal Past Performance

Ease of Upgrades

EVALUATIONCRITERIA

6

ITSM Solutions

SMAXService Manager

Micro Focus’ Service Manager is the first software solution for IT Service Management and Enter- prise Service

Management built on machine learning and analytics. It is a proven service desk solu- tion with support for thousands of users, easy-to-use self-service, and

powerful extensibility, which makes it the perfect fit for large-scale enterprises.

Micro Focus’ Service Management Automation X (SMAX) is the first software solution for IT and Enterprise Service Management and IT Asset Management built from the

ground up to include machine learning and analytics. Out of the box integrations include the market leading

UCMDB and Discovery. It can be deployed on premise or in the cloud—or moved from one to the other as business

conditions change—with equally flexible licensing options.

A single cloud platform and a single source of data. This is different from the other tools in the space that are a suite of distributed tools, which are tied together. It is a platform that

provides the tools and integrations to expand support to groups outside of

IT including HR, facilities, finance, etc.

Cherwell is an IT-focused service management tool, in which new functionality and capabilities are continually being added to the

platform. However, it has historically been focused on the small to mid-size

customers. More enterprise customers are needed before it can be considered mature enough for

large organizations. It also does not easily provide support for non-IT

groups.

BMC Helix Platform is a cloud-native, micro-services-based platform that helps companies enhance, extend,

customize, and integrate new capabilities through REST APIs. Many

federal and enterprise users use Remedy, but there are few BMC Helix

Platform users. The BMC suite is behind ServiceNow in functionality

and overall ITSM strategy. Upgrade issues are a concern and might be

limited benefits to upgrading to BMC Helix from MicroFocus Service

Manager.

7

INDUSTRY ANALYSIS

ServiceNow. Consistently high ranked. Leader by Gartner & Forrester, positive crowd reviews. Broad functionality, powerful platform. Increasing costs, suited for larger, high maturity organizations. The leader in the Federal and large enterprise space.

Micro Focus – Service Manager (Current KISAM). Gartner: “Niche player”, containers offer deployment choice, customer uncertainty on product direction. Crowd: good on-premise solution for large implementations, highly customizable, complex upgrades.

BMC Remedy. Gartner: Leader, targeted at high maturity organizations, strong ITSM capabilities and broad ITOM portfolio. Perception of legacy products. Bundles/pricing expensive to get advanced capabilities. Forrester: Strong Performer, strong platform and market presence. New versions have low/no-code features. Low scores on strategy, innovation, execution and involves difficult upgrades. Crowd: Most reviews are on Remedy, few on Helix. High license costs, good integrations, upgrade issues

Gartner Magic QuadrantCrowdsource

Verified reviews from the IT community

Cherwell. Gartner: Challenger, high customer satisfaction, targeted to medium maturity organizations. Forrester: Leader, most capable low/no-code platform, strongest new player. Crowd: flexible beyond IT service management, rapid deployment, needs improvement in web client and analytics.

Micro Focus – SMAX (New Product). Forrester: Leader, high ratings for innovation, analytics, discovery, pricing. Product rapidly improving. Containers require higher skills, limited business capabilities. No crowd reviews and limited large deployments to date.

8

INDUSTRY ANALYSTSProvides reviews rigorously vetted by Gartner — real voices of enterprise users. Offers Alternatives and lessons learned at every stage of the buying process through in-depth reviews and ratings of tools.

Magic Quadrant (MQ) is a series of market research reports published by Gartner that rate vendors upon two criteria: completeness of vision and ability to execute.§ Leaders - A vendor in the Leaders quadrant demonstrate a clear understanding of market

needs, they are innovators and thought leaders, and they have well-articulated plans that customers and prospects can use when designing their infrastructures and strategies. In addition, they have a presence in the five major geographical regions, consistent financial performance, and broad platform support.

§ Challengers - A vendor in the Challengers quadrant has strong products, as well as sufficiently credible market position and resources to sustain continued growth. Financial viability is not an issue, but lacks the size and influence of vendors in the Leaders quadrant.

§ Visionaries - A vendor in the Visionaries quadrant delivers innovative products that address operationally or financially important end-user problems at a broad scale, but has not yet demonstrated the ability to capture market share or sustainable profitability.

§ Niche Players - Vendors in the Niche Players quadrant are often narrowly focused on specific market or vertical segments. This quadrant may also include vendors that are adapting their existing products to enter the market under consideration, or larger vendors having difficulty developing and executing on their vision.

9

INDUSTRY ANALYSTS

The Forrester Wave is a guide for buyers considering their purchasing options in a technology marketplace. To offer an equitable process for all participants, Forrester follows a publicly available methodology, which is applied consistently across all participating vendors. The Forrester Wave offers two major benefits to clients: detailed analysis of vendors’ products and services, based on transparent criteria, and an Excel spreadsheet that allows clients to easily compare products and develop custom shortlists according to their own requirements

G2 offers crowdsourced real-time and unbiased user reviews to help customers:

§ Get unfiltered reviews from peers who use similar solutions.§ Avoid hidden risks and get an accurate picture of the likelihood of success.§ Start the vendor selection process with product rankings aggregated from peer reviews and

social data.§ Find relevant references and expertise on their own, rather than relying only on vendor-

supplied references.§ Contribute to the community and become recognized as an expert.

10

TOTAL COST OF OWNERSHIP

Initial Capital Cost $1,098,951 $3,500,000 $2,000,000 $2,000,000

Year 1 Cost $4,000,000 $6,700,000 $9,500,000 $6,000,000Year 2 Cost $4,000,000 $4,200,000 $7,500,000 $4,000,000

Year 3 Cost $4,000,000 $4,200,000 $7,500,000 $4,000,000

Total 3 Year Cost $12,000,00 $15,100,000 $24,500,000 $14,000,000

SMAXService Manager

11

ANALYSIS

SMAXService Manager

Cost

Organizational Impact

Innovation

Risk

Shared Responsibility

Federal Experience

Low Medium High High

Low Medium High High

SMAXService Manager

ü Low/no impact to the organizationü No cost related to software licensing or

ongoing subscriptionsü Uninterrupted existing enhancement

efforts

⨯ Support for the platform will be focused on stability, not new functionality going forward

⨯ Longer term risk - may be forced to replatform in the future if/when the product is retired

⨯ No current offering for delivery via FedRAMP approved cloud computing infrastructure

ü Minimizing organizational change or keeping the near and midterm cost of ITSM low are the primary drivers

⨯ If having leading edge functionality or shifting the responsibility of owning and managing infrastructure to a vendor via cloud based offerings is a priority .

ü Cloud native architecture provided locally or via a cloud service provider

ü Focus on "Next Generation" functionality (i.e. Data Analytics, Automation, AI)

ü Related to current SM software and has vendor provided integrations

⨯ Large impact on the organization (People, Process and Technology)

⨯ New product with very limited install base in Fed

⨯ No current FedRamp options for consuming via a service provider

⨯ The migration from the current system has to be delivered as a new implementation

ü Cost is a major constraint and there is high tolerance for product "growing pains"

⨯ If a mature product with a broad install base across similar environments is a primary driver

⨯ If there is not a tolerance for a large scale change across the agency.

⨯ If there is a desire to shift the responsibility of owning and managing infrastructure to partners via cloud based offerings.

ü Software provides as a service via a FedRAMP approved cloud environment

ü Platform is built on an extensible base and can be used beyond IT Service Management functions*

⨯ Large impact on the organization (People, Process and Technology)

⨯ Increased cost of software on a yearly basis (yearly subscription vs. owning the licenses)

⨯ With third party providers there is a risk of getting so engrained in the providers environment that you become in effect "locked in", as the effort and cost to change providers or approaches becomes prohibitive.

ü Having leading edge functionality and a platform to build on that expands beyond IT Service Management is a priority.

ü Shift the responsibility of owning and managing infrastructure partners via cloud based offerings.

⨯ If there is not tolerance for increased cost or the level of effort needed to make such a large scale change across the organization.

ü Cloud native architecture provided locally or via a cloud service provider

ü Architecture built for simpler Maintenance and support (codeless enhancements)

ü An "up and coming" contender in the industry that is innovating

⨯ Large impact on the organization (People, Process and Technology)

⨯ Well established in the midsize enterprise, but doesn't have many large customers.

⨯ There are currently no FedRamp delivery options

⨯ Will cost more than options 1 and 2 (but less than option 3)

ü Simplifying the ongoing support and enhancements of the tools are a priority

⨯ If having existing customers with the size and experience of large organizations is a prime consideration

⨯ If there is no tolerance for increased cost or the level of effort needed to make such a large scale change across the organization.

PRO

SC

ON

SB

EST

IFN

OT

BES

T IF

SM P

latfo

rm O

ptio

ns

13

SMAX

Functionality

Platform & Data

Security508 Compliance

Ease of Upgrades

Org Change

Cost/TCO

Integration

Capabilities

Ease of Use

Risk of Failure

Vendor Stability/

FinancialsTraining

Requirements

Federal Past

Performance

Vendor Lock-In

Cloud

Capabilities

Ease of

Administration

Service Manager

Intact analyzed the four ITSM tools on each of these sixteen criteria, which were determined to be the most relevant and important to complete this analysis. The non-weighted scores below are based on information provided by the vendors, Intact’s experiences, and institutional knowledge and research.

Analyst Ratings

NON-WEIGHTED ANALYSIS

0 1 2 3 4 5

Cloud Capability

Platform and Data Security

Cost/TCO

Functionality

Ease of Use

Ease of Administration

Vendor Stability

Analyst Ratings

Organizational…

Risk of Failure

Vendor Lock-in

508 Compliance

Training Requirements

Integrations Capabilities

Federal Past Performance

Ease of Upgrades

Service Manager

14

WEIGHTED ANALYSIS

0 1 2 3 4 5

Cloud Capability

Platform and Data Security

Cost/TCO

Functionality

Ease of Use

Ease of Administration

Vendor Stability

Analyst Ratings

Organizational…

Risk of Failure

Vendor Lock-in

508 Compliance

Training Requirements

Integrations Capabilities

Federal Past Performance

Ease of Upgrades

SMAX

15

WEIGHTED ANALYSIS

0 1 2 3 4 5

Cloud Capability

Platform and Data Security

Cost/TCO

Functionality

Ease of Use

Ease of Administration

Vendor Stability

Analyst Ratings

Organizational…

Risk of Failure

Vendor Lock-in

508 Compliance

Training Requirements

Integrations Capabilities

Federal Past Performance

Ease of Upgrades

16

WEIGHTED ANALYSIS

0 1 2 3 4 5

Cloud Capability

Platform and Data Security

Cost/TCO

Functionality

Ease of Use

Ease of Administration

Vendor Stability

Analyst Ratings

Organizational…

Risk of Failure

Vendor Lock-in

508 Compliance

Training Requirements

Integrations Capabilities

Federal Past Performance

Ease of Upgrades

17

WEIGHTED ANALYSIS

EVALUATIONCRITERIADEFINED

What is the security of the platform, applications, and data?(1=poor security, 5=great security)

What is the Total Cost of Ownership of the product? Purchase, infrastructure, maintenance, staff, etc.(1=high TCO, 5=low TCO)

Is the product user-friendly, easy to use, have modern appearance and features? Combined for end users and IT staff.(1=poor ease of use, 5=high ease of use)

What is the impact on IRS organization and users to adopt the platform?(1=high impact, 5=low impact)

What is the product's compliance with Section 508?(1=low compliance, 5=high compliance)

What are the integration capabilities of the product?(1=low integration abilities, 5=high integration abilities)

What is the effort, time, and cost to upgrade the product?(1=high upgrade effort, 5=low upgrade effort)

What functionality is provided? How is it differentiated from the others?(1=low functionality rating, 5=high functionality rating)Functionality

Platform & Data Security

508 Compliance*

Ease of Upgrades

Organizational Change

Cost/TCO

Integration Capabilities

Ease of Use

18

EVALUATIONCRITERIADEFINED

What are the capabilities of the product for cloud?(1-On Premise Only, 2-Cloud Capable, 3-Multiple onprem/saas options, 4-Cloud only, 5-Cloud native)

Is administration, configuration, integration of the product easy?(1=poor ease of administration, 5=high ease of administration)

What is the risk of failure/impact of issues from deploying a new product?(1=high risk, 5=low risk)

What is the impact of a product becoming entrenched in the environment, and the difficulty to move to another product in the future?(1=hard to change, 5=easy to change)

What training is required for users and IT staff to adopt and be successful with the product?(1=high training requirements, 5=low training requirements)

What is the product's previous performance and qualifications at IRS or similar federal agencies?(1=low qualification, 5=high qualification)

What is state of the vendor's stability and financials?(1=poor stability, 5=high stability)

Risk of Failure

Vendor Stability/Financials

Training Requirements

Federal Past Performance

Vendor Lock-In

Cloud Capabilities

Ease of Administration

19

ACRONYMSDEFINED

Internal IRS name of MicroFocus Service Manager (SM), Knowledge, Incident/Problem, and Service Asset Management tool.

Information Technology Service Management: the activities performed by an organization to design, plan, deliver, operate and control information technology services offered to customers.

Total Cost of Ownership: defines the financial impact of a product over its lifecycle. Costs may include hardware and software, licenses or subscriptions, staffing, migrations, infrastructure, utilities, training, management, replacement, upgrades.

MicroFocus Service Management Automation-X (officially named SMAX) by MicroFocus.

KISAM

SMAX

ITSM

TCO

20