Reducing Keep The Lights On Cost: One Project at a Time


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Do you sense the weight of your created apps? That's the Keep The Lights On Cost, and every application in your portfolio has one. This presentation illustrates how to deal with your applications before they become legacy nightmares.

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Reducing Keep The Lights On Cost: One Project at a Time

  1. 1. Page 1 © OutSystems – all rights reservedwww.outsystems.comReducing"Keep The Lights On" costOne Project At A TimeFábio SilvaMay 8, 2013
  2. 2. Page 2 © OutSystems – all rights reservedWho am I and why should listen to me?My name is Fábio Silva, 37 years old. 24 years experience in ITCurrently: IT Manager at OutSystems… Managing KTLOPast:• IT Director at a Financial Institution… Worried with KTLO for 5 years• IT Manager at a Microelectronics Company… Worried with KTLO for 10years• Just a baby at age 14 developing applications and playing with networksfor 9 years
  3. 3. Page 3 © OutSystems – all rights reservedWhat Exactly is KTLO
  4. 4. Page 4 © OutSystems – all rights reservedRefresh – Pace Layered Framework
  5. 5. Page 5 © OutSystems – all rights reservedTale of Two Applications• Real Time Data Aggregator and Distributor• Trade Limit Management SystemThey have about the same complexity(in terms of Function Points)
  6. 6. Page 6 © OutSystems – all rights reservedCase #1 – Real-Time Data AggregatorReal Time Data FeedRetail Department B2B Channel InternetChannel-Windows 2003 Server-SQL Server 2000-TIBCO BW 5.3-Sun Solaris 2.6Real Time Data Aggregatorand Distributor
  7. 7. Page 7 © OutSystems – all rights reservedCase #1 – Lifecycle and BudgetIT Spending Policy55%20%KTLONEW100%230k€Year 030%69k€Year 1 Year 224,8%57k€25,2%58k€Year 391%210k€Migration-Windows 2003 Server-SQL Server 2005-TIBCO BW 5.8-Sun Solaris 10Year KTLO (% of IT Budget)Year 1 69k€+70k€=139k€= 60%Year 2 57k€+70k€=127k€= 55%Year 3 58k€+70k€=128k€= 56%
  8. 8. Page 8 © OutSystems – all rights reservedCase #2 – Trade Limit ManagementCompany InternalRating SystemB2B Channel Procurement Department-Windows 2003 Server-SQL Server 2005-TIBCO BW 5.6-Outsystems Platform 4.2Credit RatingProviderCompanyCatalog(SaaS)Trade Limit ManagementSystem
  9. 9. Page 9 © OutSystems – all rights reservedCase #2 – Lifecycle and BudgetIT Spending Policy55%45%KTLONEW 100%60k€Year 05%3k€Year 1 Year 23,3%2k€5%3k€Year 310%6k€Migration-Windows 2008 R2 Server-SQL Server 2008-TIBCO BW 5.7-Outsystems Platform 5.1Year KTLO (% of IT Budget)Year 1 3k€+2k€=6k€= 10%Year 2 2k€+2k€=4k€= 6,6%Year 3 3k€+2k€=6k€= 10%
  10. 10. Page 10 © OutSystems – all rights reservedWhat did we learn with these two storiesCase #1100%230k€Year 030%69k€Year 1 Year 224,8%57k€25,2%58k€Year 391%210k€Migration100%60k€Year 05%3k€Year 1 Year 23,3%2k€5%3k€Year 310%6k€MigrationCase #2
  11. 11. Page 11 © OutSystems – all rights reservedTakeaways from the case study1. Systems of Differentiation outlive the infrastructure.2. Beware of fast-changing businesses or departments. Build to Change3. Watch for Non-Functional Requirements.4. Keep the whole Application Lifecycle in mind.5. Look forward with care. Choose underlying technologies carefully.6. Keep KTLO on top of your mind.7. Find the balance between in-house knowledge and outsourcing models.Think about your change management
  12. 12. Page 12 © OutSystems – all rights reservedRemember KTLO? – What can we do?
  13. 13. Page 13 © OutSystems – all rights reservedTips to lower your KTLO costs1. Choose Build to Change Technologies.2. Be Aggressive. If possible, don’t Migrate. Cut Legacy.3. Be friends with your Shadow IT’s. Do it Sooner than Later4. Attack the Edges first.5. Leave the Systems of Record alone.6. Accept Technology Standards. No Wars please. Work with CIO’s with Facts.7. IT is a Business Partner. Be sure to understand the Processes.8. “Do Less, Do it Really Well”Pre-Requisite: Do you have an IT Application Map?
  14. 14. Page 14 © OutSystems – all rights reservedwww.outsystems.comThank youHappy KTLO reducing!Fábio Silvafabio.silva@outsystems.comMay 8, 2013