The  Cloud^H^H^H^H^HDevOps  Milieu  circa  March  2014  

@cote  !

h<p://bit.ly/DevOpsMilieu20140306

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• IT  research,  advisory,  professional  services,  datacenter  cer6fica6on,  and  events  

• One  company  with  3  opera6ng  divisions  

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vendors,  service  providers,  and  investment  firms  

• 7,500+  individual  subscribers  • Reach  16,000  end-­‐users  annually

http://451research.com/ - @451research

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Michael  Coté  Research  Director,  Infrastructure  SoNware  @cote  –  hQp://cote.io  –  +1-­‐512-­‐795-­‐4307  cote@451research.com  !

Responsible  for  systems  management,  applica6on  development,  cloud  soNware,  and  misc.  “infrastructure  soNware”  agenda

Worked  Dell  in  corporate  strategy  &  M&A,  as  an  analyst  for  6+  years  at  RedMonk,  soNware  developer  for  10+  years

Source: Google define search, March 4th, 2014.

Source: "Market Monitor: Cloud Computing Overview Report 2013," 451 Research, August 2013.

$2.90&&$4.50&&

$6.20&&$8.20&&

$10.20&&

$1.40&&

$2.20&&

$3.20&&

$4.20&&

$5.30&&

$1.40&&

$1.90&&

$2.50&&

$3.20&&

$3.90&&

$5.70&&

$8.60&&

$11.90&&

$15.60&&

$19.40&&

$0&&

$2&&

$4&&

$6&&

$8&&

$10&&

$12&&

$14&&

$16&&

$18&&

$20&&

2012& 2013& 2014& 2015& 2016&

Infrastructure&Public&Cloud&Forecast&($bn)&

IaaS& PaaS& ISaaS&

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Source: "Market Monitor: Cloud-enabling Technologies Overview Report 2013," 451 Research, August 2013.

$6.97&& $8.48&& $9.97&& $11.41&& $12.76&&

$3.36&&

$4.61&&

$5.97&&

$7.49&&

$9.10&&

$0.28&&

$0.36&&

$0.47&&

$0.62&&

$0.76&&

$10.61&&

$13.45&&

$16.41&&

$19.52&&

$22.62&&

$0.00&&

$5.00&&

$10.00&&

$15.00&&

$20.00&&

$25.00&&

2012& 2013& 2014& 2015& 2016&

Cloud&Enabling&Technologies&($bn)&

Virtualiza6on& Automa6on&&&Management&& Security&

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Source: A total of 1,137 respondents involved in their company's IT buying decisions participated in the January 8-27 survey, including 470 whose company currently use public cloud. ChangeWave Research is a service of 451 Research, from "Corporate Cloud Computing Trends," 451's ChangeWave, Feb 11, 2014.

17%$ 17%$19%$

22%$ 22%$

29%$32%$

34%$

40%$ 40%$ 39%$ 40%$ 41%$

23%$

29%$32%$

29%$ 29%$ 29%$31%$

0%$

5%$

10%$

15%$

20%$

25%$

30%$

35%$

40%$

45%$

Jan.11$ Apr.11$ Jul.11$ Oct.11$ Jan.12$ Apr.12$ Jul.12$ Oct.12$ Jan.13$ Apr.13$ Jul.13$ Oct.13$ Jan.14$

Corporate(Market:(Public(and(Private(Cloud(Usage((Private(not(tracked(un9l(Jul(2012)(

%$using$public$cloud$ %$using$private$cloud$

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Why  are  people  using  cloud?

Source: 451 Research Custom Cloud Study, n=230.

18.7%&

19.6%&

14.8%&

33.9%&

11.3%&

35.7%&

20.9%&

17.8%&

18.3%&

13.9%&

12.6%&

4.3%&

20.4%&

6.1%&

10.4%&

20.4%&

17.0%&

11.3%&

5.7%&

9.6%&

3.5%&

25.2%&

17.8%&

17.4%&

14.3%&

11.3%&

9.1%&

9.1%&

0.0%& 10.0%& 20.0%& 30.0%& 40.0%& 50.0%& 60.0%& 70.0%& 80.0%& 90.0%& 100.0%&

Batch&Compu8ng&Applica8ons&

Collabora8ve&Applica8ons&&

EDbusiness&Hos8ng&&

CustomerDfacing&Enterprise&Applica8ons&

Cloud&Na8ve&Applica8ons&&

BackDoffice&Enterprise&Applica8ons&

Test&and&Development&&

Q.#Where#do#you#currently#host#or#plan#to#host#these#workloads?#

Private&OnDprem& Private&Hosted& Hybrid& Public&

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Sources: @agile_exec, March 5th, 2014. !10

We  believe  that  applica6on  development  is,  indeed,  a  vital  and  valuable  part  of  the  industry:  our  theory  is  that  the  majority  of  cloud  spending  originates  with  

so=ware  developers  as  the  prime  movers.  Applying  the  formula  'IT  -­‐  SaaS  =  what?'  it  increasingly  seems  the  case  that  the  'what?'  is  custom-­‐wri<en  soQware  for  ISVs,  SaaS  and  increasingly  companies  like  Nike  and  Starbucks  that  are  relying  on  in-­‐house  so=ware  development  for  new  products  such  as  the  Fuelband  and  mobile  payments.  Starbucks,  for  example,  is  es6mated  to  have  pulled  in  $1bn  in  sales  from  its  mobile  app.  !

While  developers  are  notoriously  parsimonious  when  it  comes  to  paying  for  tools  and  middleware,  Atlassian's  $149m  in  revenue  is  testament  that  companies  will  pay  for  developer  tools  straight  out.  We  also  note  the  bets  the  venture  community  is  placing  on  developer-­‐oriented  companies  like  those  coming  from  the  post-­‐seed  round,  pre-­‐A  round  firm  Heavybit.    !

-­‐  Me!  “Atlassian  bundles  ALM  components  around  the  popular  git  version  control  system,”  451  Research,  March  4th,  2014

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Business  Drivers  (Where  the  money  comes  from)

Source: “2Q 2014 Corporate IT Spending Trends,“ 451 ChangeWave, n=1,481.

“Looking further ahead to 2nd half 2014, there are also encouraging signs. A total of 17% think their IT budget will be greater than the 1st half of 2014, and 19% believe it will be less – which is an 8-pt improvement from previously.”

Transforma6on  is  afoot

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Legacy…

New…

Not seen here: white-collar toolchains Sources:451 HCTS NA 2013 conference; Chris Dancy.

So…  DevOps,  anyone?

Source:451 DevOps Study, Winter 2014. n=201 DevOps-minded individuals.

Daily&8%&

Weekly&22%&

Monthly&&18%&

Quarterly&12%&Semi8Annually&

4%&

Annually&4%&

On&demand&31%&

Other&1%&

How$o%en$do$you$deploy$to$produc0on?$

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Source:451 DevOps Study, Winter 2014. n=201 DevOps-minded individuals.

59%$

54%$

50%$

46%$

40%$

20%$

12%$

16%$

0%$

17%$

20%$

15%$

14%$

15%$

50%$

14%$

19%$

19%$

14%$

15%$

0%$

23%$

21%$

46%$

0%$ 10%$ 20%$ 30%$ 40%$ 50%$ 60%$ 70%$ 80%$ 90%$ 100%$

Tes0ng$

Performance$Monitoring$and$Log$Mgmt$

Other$

Release$management$

Configura0on$management$&$automa0on$

Topology/Architecture$

What%tools%are%you%using?%

Currently$Use$ Plan$to$use$in$next$6$months$ Plan$to$evaluate$in$next$5$months$ No$plans$to$use$or$evaluate$

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Source:451 DevOps Study, Winter 2014. n=201 DevOps-minded individuals.

Custom'wri+en'build'scripts'38%'

Golden'Images'24%'

Third'party'install'programs'20%'

AutomaAon'tools'16%'

Other'2%'

When%designing%and%wri-ng%your%so1ware,%how%do%you%model%and%specify%how%the%applica-on%should%be%deployed?%

Source:451 DevOps Study, Winter 2014. n=201 DevOps-minded individuals.

22.22%$

25.93%$

18.52%$

38.89%$

28.70%$

Feature$creep$(new$requirements$are$added$inside$each$cycle,$lengthening$the$

Ame$to$release)$

An$inefficient$process:$HandHoff$from$development$to$test,$to$security$etc.$

Lack$of$tools$or$inefficient$tools$for$Release$management,$Log$management,$

etc.$

Human$resource$constraints$(can't$hire$enough$skilled$people$so$we$

boQleneck$on$those$we$have)$

Number$and$complexity$of$environments$–$Cloud,$OnHpremises,$Virtual$and$

Physical$$

What%is%holding%you%back%from%reducing%release%cycles?%

There’s  plenty  of  opportunity  out  there,  and  clearly  room  for  improvement.  

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Good  luck  out  there!

Thanks!  @cote  -­‐  h<p://cote.io  -­‐  cote@451research.com