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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
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
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
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.
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)
6 © 2015 Pivotal Software, Inc. All rights reserved.
Disruptors Created an Upward Spiral of Speed
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
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
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
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
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
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)
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Beating Competitors and Defending Market Share
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
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
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
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
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
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.
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
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
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
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
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
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
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