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Paul Reese, Enterprise Transformation [email protected] (678) 596-0805 Silicon Valley Disruptors and the Path to Enterprise Transformation

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Page 1: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

1 © 2015 Pivotal Software, Inc. All rights reserved.

Paul Reese, Enterprise Transformation [email protected] (678) 596-0805

Silicon Valley Disruptors and the Path to Enterprise Transformation

Page 2: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

2 © 2015 Pivotal Software, Inc. All rights reserved.

•  Market Disruptors

•  The Advent of Enterprise Transformation

•  Business Domain Expertise vs. Software Domain Expertise – Rise of the Developer

•  Building a Disruptive Growth Model

•  Enterprises in Transformation

•  Successful Stories and Business Impacts

Page 3: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

3 © 2015 Pivotal Software, Inc. All rights reserved.

“It’s our belief that every company, in the coming age, is going to have to be a software and analytics company.” Jeff Immelt, GE Chairman and CEO

Shot Heard Around The World

“Software is Eating the World” –August 2011, Wall Street Journal – Marc Andreeseen (Founder of Netscape, Board of Facebook, eBay, and HP)

November, 2012

Marc Andreessen and Jeff Immelt, November 2012 https://www.youtube.com/watch?v=TAQJ3GJIW5c

Page 4: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

4 © 2015 Pivotal Software, Inc. All rights reserved.

November, 2012

The world’s largest taxi company owns no vehicles. The world’s most popular media company creates no content. The world’s most valuable retail company has no inventory. The world’s largest accommodation provider owns no real estate.

Page 5: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

5 © 2015 Pivotal Software, Inc. All rights reserved.

Modeling the Disruptors:

•  Cutting Edge App Dev (Agile Extreme)

•  Continuous Deployment (3rd

Platform) •  Intelligent Feedback Loop (Data

Science and Analytics)

Page 6: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

6 © 2015 Pivotal Software, Inc. All rights reserved.

Disruptors Created an Upward Spiral of Speed

Page 7: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

7 © 2015 Pivotal Software, Inc. All rights reserved.

Creating a Disruptive Growth Engine for Enterprises

AGILE EXTREME

•  Rob Mee, Pivotal CEO •  Paul Maritz, Chairman • 

DATA SCIENCE

•  Kaushik Das •  35 Data Scientists,

many of them PhD

CLOUD NATIVE PLATFORM

•  James Watters •  Andrew Clay Shafer

Page 8: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

8 © 2015 Pivotal Software, Inc. All rights reserved.

Enterprise Model for Disruptive Growth

AGILE EXTREME DEVELOPMENT

Extreme Agile practices and culture transformation

•  Microservices Architecture

•  Test Driven Development

•  Paired Programming

•  Continuous Delivery Model • 

DATA SCIENCE – PIVOTAL BIG DATA SUITE

Building the digital brain on an open source data lake

•  Problem Formulation

•  Data Identification and Sourcing

•  Model Construction

•  Operationalizing the Findings

PLATFORM – PIVOTAL CLOUD FOUNDRY

•  Push-button App Deployment

•  Enterprise-grade Open Source Platform

•  Record-breaking Enterprise adoption

Page 9: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

9 © 2015 Pivotal Software, Inc. All rights reserved.

About Pivotal Labs pivotal.io

© 2015 Pivotal Software, Inc. All rights reserved

When We Started with GE… April, 2013

Page 10: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

10 © 2015 Pivotal Software, Inc. All rights reserved.

About Pivotal Labs pivotal.io

© 2015 Pivotal Software, Inc. All rights reserved

Forbes, April 2013: “We think Pivotal will be an important partner,” said Bill Ruh at GE. “This is the platform for us to do these next-generation, data driven applications.”

Bill Ruh, 18 months later: October 2014, “$1B + in revenues”

June 2015: “$5B + in revenues”, and expect that to grow by an order of magnitude

Now GE Commercials on CNBC are GE Software Commercials

https://www.youtube.com/watch?v=OgO4I3_B0Js https://www.youtube.com/watch?v=2ZPxM8jBU9o https://www.youtube.com/watch?v=hxBTHFf54bE

http://fortune.com/2015/08/05/ge-preps-industrial-cloud/

Creating a Multi-Billion Dollar Industry with Pivotal

Page 11: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

11 © 2015 Pivotal Software, Inc. All rights reserved.

See these and over 50 other customer testimonials and cast studies at https://pivotal.io/customers#alls

Bringing Silicon Valley to the Enterprise

Page 12: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

12 © 2015 Pivotal Software, Inc. All rights reserved.

Relative Business Value Over Two Years

Continuous Delivery (Silicon Valley Disruptive Growth Model, 2% per week)

Traditional Enterprise (upgrades every 3 to 9 months, 25% improvement)

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

1 6 11

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21

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36

41

46

51

56

61

66

71

76

81

86

91

96

101

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

1 6 11

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21

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61

66

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81

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96

101

Beating Competitors and Defending Market Share

Page 13: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

13 © 2015 Pivotal Software, Inc. All rights reserved.

2,000+ employees and growing world wide, 350% Software Subscription Growth Rate YOY

“We now have 16 Pivotal office locations from San Francisco to London to Tokyo, all evangelizing the value proposition that Silicon Valley is no longer a geography, but a state of mind. It can be anywhere.”

Rob Mee, CEO Pivotal

Page 14: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

14 © 2015 Pivotal Software, Inc. All rights reserved.

(1) Select a New Project or a High-Value Refactor (2) Visit Labs, and learn: •  Our Values •  Day in the Life •  Tour •  Company Transformation – It doesn't stop at development •  Best Practices for Engagement •  Using the Platform (Pivotal Cloud Foundry): Speed, Automation, Compliance •  Using Data Science (Pivotal Big Data Suite): Continuous Improvement •  Project Scoping Session Requirements: Getting Started

“All At Once” Is Not Necessary, Nor Recommended

Page 15: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

15 © 2015 Pivotal Software, Inc. All rights reserved.

•  Train your Product Managers > Think lean, MVP, small iterations •  Train your Designers > User-centered design, drive revenue •  Train your Developers > Microservices, TDD, Pairing, Extreme •  Train your Stakeholders > Continuous delivery, frequent releases,

take new risks (because now, risk is small), re-focus on core IT •  Deliver the platform and data science tools •  Our Goal = Another Transformed Enterprise; Market Leader

Message – It is no longer about On Time, Within Scope, and On Budget – it’s about beating competitors and the business results of the product.

Think Product Success, Not Project Success

Page 16: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

16 © 2015 Pivotal Software, Inc. All rights reserved.

Microservices and Cloud Native Architecture = What

Continuous Delivery = Why

Method, DevOps, Platform and Data Science = How

“It is not necessary to change. Survival is not mandatory.” -W Edwards Deming

What, Why and How of Cloud Native Architecture

Page 17: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

17 © 2015 Pivotal Software, Inc. All rights reserved.

With Pivotal we have minimized our innovation cycles and can now respond to changing market demands faster than ever before, both of which allowed us to develop a profound software culture in our transformational journey into a digital company. Our collaboration with Pivotal will define a new digital driving culture with state-of-the-art information technologies, online communication systems and automotive services.”

Christoph Hartnung, Head of Connected Cars, Mercedes-Benz

Automobiles Aren’t Just About Cars Anymore

Page 18: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

18 © 2015 Pivotal Software, Inc. All rights reserved.

Created a Silicon Valley App Shop – In Kentucky Humana CEO Blake Broussard in WSJ (April 2015): “Humana’s Digital Experience Center brings Silicon Valley to Louisville. The DEC has a special connection with our members because the DEC is working on parts of the health plan people can use every day. This is a really neat space – I’d work here”. http://www.wsj.com/articles/can-you-build-palo-alto-culture-in-a-kentucky-insurance-company-1430264506

“We hired the same people you hired, we just got out of their way.” Adrian Cockcroft of Netflix, talking to a group of F100 customers at a keynote speech.

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19 © 2015 Pivotal Software, Inc. All rights reserved.

“Pivotal is taking projects that previously had been estimated to take longer than a year with twice as many software engineers and reduced that to a 3 to 6 month window with half as many software engineers involved. We launched three entirely new products in just the first year.” Richard Leurig, SVP Innovation at CoreLogic http://pivotal.io/platform-as-a-service/case-study/corelogic-transformation

Make Good Tech Companies Great

Page 20: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

20 © 2015 Pivotal Software, Inc. All rights reserved.

“What took 100 business days to go live, we can now do in minutes… We can now not only change the insurance industry, but enter new industries as the opportunities arise.” Andy Zitney, SVP IT Allstate

https://www.youtube.com/watch?v=04QFKBt6LCI - watch the 18 minute presentation

Allstate – From 100 Business Days to Minutes

Page 21: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

21 © 2015 Pivotal Software, Inc. All rights reserved.

•  App Dev group already sophisticated

when we began

•  Dev cycle was 6 months for new apps

•  Now their new app cycle is 6 weeks

•  Warner Brothers calculates their hard

dollar cost savings at $1.1M per app

•  Savings do not include their ability to

deliver speed to the business and

beating competitors to market

$1.1M Hard-Dollar Cost Savings Per App Developed

Page 22: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

22 © 2015 Pivotal Software, Inc. All rights reserved.

Started with Pivotal for Mobile Apps and PaaS trial, now moving to use Pivotal Cloud Foundry as their chosen platform for all their own IOT / M2M offerings. Primary drivers: speed, elasticity, and automation of DevOps environments for developers.

Verizon Chooses Cloud Foundry for Global Platform

https://www.youtube.com/watch?v=nlfY-OG5b9E

Page 23: Silicon Valley Disruptors and the Path to Enterprise ...files.meetup.com/1619682/Pivotal - Paul Reese - Disruptive Tech... · Silicon Valley Disruptors and the Path to Enterprise

23 © 2015 Pivotal Software, Inc. All rights reserved.

Ford and Others Autos Flock to Pivotal

“As we grow to become both an automaker and a mobility company, having leading software development expertise is critical to delivering at the speed consumers expect,” said Marcy Klevorn, Ford CIO

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24 © 2015 Pivotal Software, Inc. All rights reserved.

“Wall Street Journal, 9/30/2015 – It’s a good time to be a chief information officer at General Electric Co. CIOs at GE have evolved from essentially being software purchasers to writing apps and being productivity and revenue growth leaders at the company, said GE CEO Jeff Immelt at a conference here Tuesday. “This has gone from being really an outsourced and cost center function to being basically the centerpiece of all our productivity,” Mr. Immelt said at GE’s Minds + Machines conference. “ http://blogs.wsj.com/cio/2015/09/30/ges-move-to-the-industrial-internet-gives-cios-a-more-strategic-role/?mod=djemCIO_h

Fundamentally Changing the Role of IT and the CIO

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25 © 2015 Pivotal Software, Inc. All rights reserved.

Questions?

Paul Reese, Enterprise Transformation [email protected] (678) 596-0805

See over 50 customer videos, testimonials, and use cases at http://pivotal.io/customers