Will ITIL V5 still have Capacity Management as a process? Or is it replaced by Cloud Management?

This was the discussion I had with Rob England (IT Skeptic) and Eric Lauzon (CIO – Asia for Nortel) during the networking cocktail party on Monday.

That morning Eric had explained how Nortel transitioned their IT strategy. This was needed partially due to the way the world is changing and turning towards hyperconnectivity. Examples of hyperconnectivity he gave are the 4-fold increase of Internet commerce transactions, the amount of new facebook registrations each day and the NIKE wifi shoes.  Eric also discussed how Nortel implemented a unified communications strategy where the desktop is completely integrated with telephony (voip) and other cool things.

In the afternoon there was a panel to discuss the balance between capacity, resource and cost.

Anyway – those were the triggers for the discussion. 

So with our rapidly changing industry and the fact that this change is not just the change in technology, but also the change in customer demands and expectations – are we really going to need Capacity Management in the future?
Clients want access to an IT service and they want it NOW – this is what they are used to in the consumer technology market… and with the options of , SaaS, virtualization and other web-based services we can pretty much deliver everything our clients want…. within their expectations for timeframew… so why bother with capacity management?

Well – because you still need to have an idea of where the company is going; what are the corporate objectives, what is important to the bottom line of the company, what type of service are they going to need in the future? So you will probably always need to do Capacity Management (the future looking part of the process).

The nitty gritty part of the process – the routine activities of monitoring, measuring and analysing utilization and performance of individual components will probably not be as important anymore in the future. All that stuff is dealt with at the supplier side.  The ‘cloud’ … you don’t control those components so you don’t need to perfomance manage them.

The internal IT shop will need to manage the performance of the web-based services –> the outcomes of that service, that is! So a much closer link to Service Level Management than we currently have. And probably closely linked to supplier and vendor management as we currently know it in outsourcing situations.

So I don’t think the process will be eliminated or deleted from the framework, but the activities to be performed will change. You can’t stop the control activities but you can eliminate a lot of the operational activities.

Interesting times coming our way!