Creating DevOps ROI

Fusing of software development (Dev) with IT operations (Ops)

A maturing of the agile software development methodology

DevOps unites developers and IT operations to release high quality code into solidly performing environments more rapidly than is possible with traditional developer-to-ops handoffs.

Solves a basic problem with agile methodology: Producing new code is of little use if it cannot be deployed on reliable infrastructure.

Growing in popularity: 63% of developers have implemented DevOps.*

Faster code: High-performing DevOps organizations can ship code 30 times faster with 50% fewer failures.*

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What is DevOps?

* Source: 2013 State of DevOps Report – IT Revolution Press (Surveyed of more than 4,000 developers surveyed in 90 countries)

What Came Before (And Still Exists)

A division between: Developers, who write the code, and Operations personnel, who are responsible for making sure the code is running

acceptably for end users.

The groups can be quite distant from one another.

Other stakeholders, such as line-of-business managers, compliance staffers, InfoSec, and others, are also involved but generally removed from the software development-to-deployment loop.

The process tends to be sequential: Integration of new code into existing applications is done one release at a time. Operations methodically places newly integrated code into production.

Develop Test Integrate Production

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The “Slow, Sequential” Problem DevOps is a solution to the slow,

sequential approach: Unifies development with the

release process . Pulls all the participants into a closer

loop of collaboration and cooperation.

The pace of software releasing can pick up significantly.

The key concept of DevOps is “continuous”.

Integration, QA and deployment go on continuously, perhaps even several times a day.

Agile Development

Continuous, automated QA

Continuous Integration

Continuous,Automated deployment

Monitor, assess,

recommend improvements

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DevOps Delivers ResultsDevOps Traditional Ops Change

Deploying Changes 4 4.5 -13%Automating Repetitive Tasks 5.3 4.6 13%

Infrastructure Management 3.5 3.8 -9%Infrastructure Improvements 4.8 3.6 25%

Support 2.4 3.8 -58%Communication 5.1 7.2 -41%Firefighting 3.8 4.8 -26%Self-Improvement 3.1 2.7 13%Overhead 2.8 2.4 14%

27% of organizations using DevOps for 1 year+ can deploy new code “on demand” versus just 8% for organizations that have not implemented DevOps. *

Those same organizations have a change lead time of less than one hour, compared to 7% for non-implementers.*

Time spent deploying changes dropped 13% **

Communication time fell a remarkable 41% **

5* 2013 State of DevOps Report – IT Revolution Press (Surveyed of more than 4,000 developers surveyed in 90 countries)** http://radar.oreilly.com/2012/06/what-is-devops.html

Calculating DevOps ROI ROI for DevOps is tricky

“Investment” is continuous. Developer and IT staff size may stay the same after DevOps is introduced or even

go up. “R” has a lot to do with the value of increased productivity. The “I” has two-parts:

Initial investment in getting DevOps going, which includes tooling and training Ongoing re-investment in the newly formed DevOps team

Most ROI formulas assume the investing of an initial sum of money in a specific project, such as new server hardware. Then, there are “returns” in the form of savings, revenue increases or both. As in: R(eturn) = + intangible benefits

Instead, DevOps ROI = + intangible benefits + strategic

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Hard Dollar ROI from DevOpsDevOps Traditional

IT OpsChange Annual

Team Hours Difference

Savings/Year

Team Size 10 Deploying Changes 4 4.5 -13% (250) $ (16,250)Fully burdened labor rate

$ 65 Automating Repetitive Tasks

5.3 4.6 13% 350 $ 22,750

Weeks/year 50 Infrastructure Management

3.5 3.8 -9% (150) $ (9,750)

Hours/Year 2,000 Infrastructure Improvements

4.8 3.6 25% 600 $ 39,000

Total Annual Spend $ 1,300,000 Support 2.4 3.8 -58% (700) $ (45,500)

Total Savings $ (84,500) Communication 5.1 7.2 -41% 1,050) $ (68,250)Savings as a percent of total

-7% Firefighting 3.8 4.8 -26% (500) $ (32,500)

Self-Improvement 3.1 2.7 13% 200 $ 13,000 Overhead 2.8 2.4 14% 200 $ 13,000 Total Savings $ (84,500)

Hypothetical 10 person development and ops team Assuming a 2,000 hour work year and a fully burdened labor rate of $65 per hour,

the results are striking: Some weekly activities go up in hours spent (often for the good). But, time savings result in savings of $84,500 a year. Savings = 7% of the team’s $1.3 million annual budget.

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Download this Whitepaper: The Road to DevOps ROI

For the best practices you need to eke the best ROI out of DevOps

http://www.cloudmunch.com/devopsROI

Additional models, spreadsheets and tools

Saving Time and Money with DevOps

Deploying Changes – With continuous change built into the cycle, DevOps helps save time spent on application and database configuration and infrastructure updates.

Infrastructure Management – DevOps reduces the handoffs between developers and infrastructure managers, in turn cutting the amount of time devoted to managing infrastructure in response to software changes.

Support – With support people continuously looped into the development cycle, DevOps

makes it possible for problems to be identified and solved before they can make trouble. Communication – The DevOps approach, assuming the right platform is in use, builds efficient

communication amongst all stakeholders right into the development and deployment process. Firefighting – With support and infrastructure on the same page as developers, the DevOps

approach reduces the number and intensity of situations where mission-critical apps go down – as well as the ensuing scramble to recover a system within recovery time objectives (RTOs).

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DevOps and Revenue GrowthThe Overall Market

Starting Market Size (Dollars/Quarter) $ 10,000,000

Market Growth Rate (Quarterly) 2%

The Company

Baseline Market Share 10%

Sales bump from new release 5%

Sales hit from no new release -3%

Software release cycles can affect revenue.

Imagine that a company has a 10% market share in a $10 million market for a software-based product or service.

The market is growing at 2% a quarter.

For each new release of code, the company will realize a revenue increase of 5%.

However, if there is no new release in a quarter, sales will drop 3%.

Why? The answer is simple. Competitors steal market share from laggards.

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Code Releases Affect Revenue Over 8 quarters, the

overall market for the product growing from $10 million to $11.4 million.

With no code released, revenue drops from $1 million per quarter to $807,000, with market share falling from 10% to 7%.

The opportunity cost of failing to release software over two years is $216,257.

However, with 2 code releases per quarter, market share goes from 10% to 19%.

1 2 3 4 5 6 7 8$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

0%2%4%6%8%10%12%14%16%18%20%

11%12%

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10% 9% 9% 8% 8% 8% 7% 7%

Total Market SizeRevenue - 0 Rel/QRevenue - 1 Rel/QRevenue - 2 Rel/QMarket Share - 2 Rel/QMarket Share - 0 Rel/Q

Quarter

Reve

nue

Market Share

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Intangible DevOps ROI Factors Infrastructure Improvements –DevOps enables team members to spend more time

on improvements to the infrastructure that supports the business: Testing processes and recovery plans Reducing the number of application failures while also tightening recovery time

Self-Improvement – DevOps frees more staff time for training, reading and continuing education.

Brainstorming and “doing nothing” Some of the best technology innovations come from just this kind of downtime. DevOps reduces stress, system failures and fire drills, enabling team members to think.

Thinking pays off for the business. Source: ZeroTurnaround 2013 Study

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The Choreography of Platform and Culture

DevOps involves collaboration between developers and operations teams: Not an intuitive combination Each group has a distinct culture, a different set of incentives, as well as differing background

and training in most cases. Getting DevOps to work is as much an exercise in cultural change management as anything

else.

Tooling helps. The right DevOps platform, used the right way, can make a big difference in the ROI outcomes: Choreography between the people, the tools and the culture Shared goals and metrics amongst DevOps team members Benefits of DevOps become noticeable when team members do the work and make it a

reality. Everyone becomes more productive and agile. When a developer, tester, product manager and system engineer all see improvement in the

qualities of work lives, delivering great results, this way of working becomes the norm or the work culture.

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Download this Whitepaper: The Road to DevOps ROI

For the best practices you need to eke the best ROI out of DevOps

http://www.cloudmunch.com/devopsROI

Additional models, spreadsheets and tools

Early, Instant Feedback for All Roles The only way to ensure that every developer, tester, system engineer is a high performer is to make sure

they get early and instant feedback: When a developer pushes code into code repo, he or she gets immediate feedback on the code. For a product manager, it means ability to create a sandbox to show the new feature to business on

day one for their feedback. System engineers can simulate a new feature in production environment while it is still in

development.

There are three aspects to this: Ongoing intelligence of code in development - This requires the use of development and operational

tools that are instrumented to generate metrics. Operational intelligence ensures that all DevOps team members get all this feedback across all

functions and roles in a single dashboard. Everyone can see it and act upon it as needed. Analytics and an automated dashboard provide real-time insight to the entire team across roles so

that they can get early and instant feedback for high performance.

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One-click Access to the Entire Application Lifecycle

With DevOps, collaboration has to be seamless across both Dev and Ops teams and the entire application delivery value chain: Set up automated processes and systems for Integrated Configuration Management, Continuous Integration,

Automated Testing, Deployment Planning, Infrastructure Provisioning, Continuous Deployment, Integrated Change Management and Monitoring.

Integrate these tools to create a full stack DevOps platform Common tooling so team members don’t need to hand off artifacts between teams and risk creating

gaps Testing and deploying application code and infrastructure code in the same pipeline

The problem arises when developers patch fix the DevOps tool chain: Things can work well at first with a patch-built tool chain, but as scale and complexity grows, this starts

breaking. Scale and complexity typically trend up with the success of the Continuous Delivery model. Multiple deployments every day are not uncommon as new features are released.

As DevOps flourishes, the business gets used to more innovation from IT and the cycle grows more intense. This is known as having a rapid innovation culture. It arises when DevOps best practices and the tool chain

are one. Having a fully integrated DevOps tool chain with one-click access to the entire application lifecycle has

proven to help teams scale effortlessly.

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Develop and Run Seamlessly Applications have to morph with business needs:

An application might start out running in a public cloud but very soon needs to move behind the firewall or have the back end moved to a big data platform.

When DevOps teams start developing applications, there has to be target environment in mind, but it is very important that the team be able to have flexibility with dev and run environments to morph as needed.

E.g., An app may use a public PaaS but tomorrow it may need to use an internal private cloud. E.g., A mobile app front end id connected to a big data platform back end.

It is essential to have the flexibility to develop/test/run in any environment seamlessly: Teams can provision infrastructure and tool chain anywhere and carry applications stack

across these environments. Elastic provisioning of systems for Contiguous Integration, automated testing, deployment

and production environments Projects and profiles can be tracked and versioned so that previously configured systems

can be recreated with a single click to test new code easily, revert to previous configurations, and compare system versions.

A fully searchable repository is available to facilitate standardization and reuse.

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Conclusion DevOps has tremendous potential to drive financial returns and strategic advantage:

By combining developers and IT operations in coherent, closely coordinating teams, DevOps speeds up the delivery of high quality software.

From an ROI perspective, this acceleration of software can either cut IT costs or enable a greater, more business-friendly productivity in IT.

At the same time, rapid releasing of good code can unlock market value and raise revenue – beating back competitors who are swarming after the same customers.

Getting to ROI with DevOps is not simple, however. It takes a combination of the right tooling and a commitment to organizational cultural change.

Both factors must be in action for DevOps to flourish and deliver financial benefit to the business.

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Download this Whitepaper: The Road to DevOps ROI

For the best practices you need to eke the best ROI out of DevOps

http://www.cloudmunch.com/devopsROI

Additional models, spreadsheets and tools

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