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Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
Operations is a Strategic Weapon
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Operations is a Strategic Weapon

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  • 1. Operations is a Strategic WeaponFriday, October 7, 2011 1
  • 2. DTO SolutionsFriday, October 7, 2011 2We do process improvement and automated infrastructure for companies who build andoperate revenue producing services... e-commerce, financial services, gaming
  • 3. Are you an ... aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 4. Are you an ...[spi] aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 5. Are you an ...[spi] aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 6. Are you an ...[spi] aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 7. Are you an ...[spi] aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 8. Are you an ...[spi] aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 9. Are you an ...[spi] aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 10. Are you an ...[spi] aaSFriday, October 7, 2011 3-Are you an ass?-What kind of ass are you? Golly gee.. really.. who gives a shit...-Ironically all this “cloud” discussions focus around the wrong letter.-----------------------------------------What does amazon and netflix get that barnes and noble and blockbuster doesn’t ?_aaS (circle the "S")-Over the next 45 minutes I am going to try and convince you that companies that fcous on the behind Devops are the bestsolution to address the "S" in your aaS
  • 11. Friday, October 7, 2011 4-How many ppl are familiar with the metaphor used in softw dev called “TD”?-In softw dev you typally have two choices get it done quick and take hit of future issues orspend to time on a cleaner design, but will take longer to put in place.-Quick typically p with a technical debt, which is similar to a financial debt.interest payments,which come in the form of the extra effort that we have to do in future development becauseof the quick and dirty design choice.--Most of you are probably familiar with “Software” TD-I am going to tell you a story about “Infrastructure TD”
  • 12. Friday, October 7, 2011 5-How many ppl know who these guys are?-The dudes who invented Facebook.. rght?-However, this was not there first venture.-Green vs Red Widgits compnay story.-After many arguments the both decide to split up. Cameron to make green widgets and Tylerdecides to make red widgets.-They both go to their father each ask for a 1m dollars and the father asks how much moneyare you going to make. They both say 10 million. -Father calculates the ROR to be 900% and gives em each 1m.10-1 = 9/1 = 900%-However one of them lied.... The red widgets only return 233%10-1-2 = 7/3 = 233%
  • 13. Green vs Red Widgits 1 Million 1 Million 2 Million No TD 10 Million Profit 10 Million Profit 10 - 3 = 7/3 10 - 1 = 9/1 233% ROR 900% RORFriday, October 7, 2011 6
  • 14. It Gets Worse... Technical Vicious Toxic Terminal Debt Cycle OperationsFriday, October 7, 2011 7- It gets even worse. Isreal Ghat of the Cutter Group call the vicious cycle of TD.- You wind up fixing a lot of things that you didn’t fix in the first place..- this pulls more resources from delivery good service and compound effect is that you are spending more and more resources that you should have gotten right the firs time..- but ever worse the effect of customer satisfaction starts loosing more business and the “V” cycle is out of control.- TD->VTD->Toxic operations->Terminal- I call this are you running a business or building a business?- Toxic operations. Amertrade/etrade story
  • 15. Tale of Two StartupsFriday, October 7, 2011 8- Jesse Robbins my ex boss and CEO of Opscode/Chef did a great post on O’rielly rdar a few years ago called the Tale of Two Startups.- The chart looked like this first 4 weeks.- First chart legacy (I call it the non devops startup/project)- Second Chart is the (secret sauce startup ... #devops)- I played around with this using “R” to be cool and I came up with a=140% ROR and 700% ROR
  • 16. The Meat to Math Ratio http://radar.oreilly.com/2011/08/meat-to-math-ratio.htmlFriday, October 7, 2011 9- Alistar Croll has a great post called the meat to math ratio.- Amazon had $12.95B in Q410 revenues and 33,700 employees, revenue per employee of $384,273.- For Barnes & Noble: Barnes & Noble: $1.91B in Q410 revenues, and 35,000 employees, meaning a revenue per employee of $54,571.- Netflix: $444M in Q409 revenues, and 1,000 employees, meaning a revenue-per-employee of $444,000.- Blockbuster: $400M in Q409 revenues. The company peaked at 60,000 employees i- Dropbox: In Q211 Dropbox had $25M in revenues, and 74 employees, for a revenue per employee of $338K.
  • 17. When do they call?Friday, October 7, 2011 10We started asking ourselves some questions about our clients and our work for them
  • 18. When do they call? A. First signs of issues brewing B. Initial negative impact felt by some C. Heads are on fireFriday, October 7, 2011 10We started asking ourselves some questions about our clients and our work for them
  • 19. When do they call? 10% A. First signs of issues brewing 30% B. Initial negative impact felt by some 65% C. Heads are on fireFriday, October 7, 2011 10We started asking ourselves some questions about our clients and our work for them
  • 20. Why did they wait? #1 Answer:Friday, October 7, 2011 11Aside from human nature to procrastinate?translation... “you and or the problem you are telling me about isn’t worth the money”
  • 21. Why did they wait? #1 Answer: “Couldn’t get budget approval or business support”Friday, October 7, 2011 11Aside from human nature to procrastinate?translation... “you and or the problem you are telling me about isn’t worth the money”
  • 22. Operations has a perception problemFriday, October 7, 2011 12
  • 23. Operations has a perception problem Business View Necessary CostFriday, October 7, 2011 12
  • 24. Operations has a perception problem Business View Ops View vs Necessary Cost Strategic WeaponFriday, October 7, 2011 12
  • 25. First Law of Business Spending Things that Things that cost you money make you moneyFriday, October 7, 2011 13Make no mistake about it... someone is spending money on you... and they are askingthemselves... do I cut it, outsource it, or spend more on it.
  • 26. Change the Perception of Ops vs Necessary Cost Strategic WeaponFriday, October 7, 2011 14
  • 27. Operations becomes a strategic weaponFriday, October 7, 2011 15If we are going to make the business case that operations is a strategic weapon... and weneed to do it in language that they understand.Business care about innovation (ideas that resonnate with customers) and getting the bestreturn on their money... Let’s look at the first point... continuously increasing velocity ofinnovation
  • 28. Operations becomes a strategic weapon When you are continuously...Friday, October 7, 2011 15If we are going to make the business case that operations is a strategic weapon... and weneed to do it in language that they understand.Business care about innovation (ideas that resonnate with customers) and getting the bestreturn on their money... Let’s look at the first point... continuously increasing velocity ofinnovation
  • 29. Operations becomes a strategic weapon When you are continuously... 1. Increasing velocity of innovationFriday, October 7, 2011 15If we are going to make the business case that operations is a strategic weapon... and weneed to do it in language that they understand.Business care about innovation (ideas that resonnate with customers) and getting the bestreturn on their money... Let’s look at the first point... continuously increasing velocity ofinnovation
  • 30. Operations becomes a strategic weapon When you are continuously... 1. Increasing velocity of innovation 2. Increasing return on investmentFriday, October 7, 2011 15If we are going to make the business case that operations is a strategic weapon... and weneed to do it in language that they understand.Business care about innovation (ideas that resonnate with customers) and getting the bestreturn on their money... Let’s look at the first point... continuously increasing velocity ofinnovation
  • 31. Result Ah-ha!Friday, October 7, 2011 16Core process of any business
  • 32. Ah-ha! Ka-ching!Friday, October 7, 2011 17Now of course you hope that result is one that resonates with customers
  • 33. Ah-ha!Friday, October 7, 2011 18But for many reasons it more often than not goes the other way
  • 34. Velocity of Innovation... Ah-ha! Ka-ching! Day 0 Day nFriday, October 7, 2011 19That cycle time... getting from idea to result is one of the most critical metrics for both astartup and an established service. And the bulk of this time is spent in the applicationlifecycle across dev, QA, and operations.
  • 35. Companies were able to achieve somewhat defensible positions based on technology...Friday, October 7, 2011 20
  • 36. Companies were able to achieve somewhat defensible positions based on technology... then came the webFriday, October 7, 2011 21Then along came this thing called the web and screwed it all up... now your customers arecoming to you through a standard interface --the browser-- over standard publishedprotocols. You competition is only a few keystrokes away. The even applies in newerdistribution channels like mobile apps and their app stores.
  • 37. How do we compete now?Friday, October 7, 2011 22So how do we compete in this commoditized world?1. Scale... scale of users, scale of data, scale of compute power2. Velocity of innovation... how fast can you react to and execute on new market forces oropportunities.Scaling is the most straight forward problem to solve. It’s a known problem with a lot ofknown solutions to borrow from. Hire smart architects... let them follow best practices...throw a big pile of cash at it and there aren’t many scaling problems you can’t solve.Obviously that’s somewhat of a simplification... but I’ll let someone else’s presentation getinto the details
  • 38. How do we compete now? 1. ScaleFriday, October 7, 2011 22So how do we compete in this commoditized world?1. Scale... scale of users, scale of data, scale of compute power2. Velocity of innovation... how fast can you react to and execute on new market forces oropportunities.Scaling is the most straight forward problem to solve. It’s a known problem with a lot ofknown solutions to borrow from. Hire smart architects... let them follow best practices...throw a big pile of cash at it and there aren’t many scaling problems you can’t solve.Obviously that’s somewhat of a simplification... but I’ll let someone else’s presentation getinto the details
  • 39. How do we compete now? 1. Scale 2. Velocity of InnovationFriday, October 7, 2011 22So how do we compete in this commoditized world?1. Scale... scale of users, scale of data, scale of compute power2. Velocity of innovation... how fast can you react to and execute on new market forces oropportunities.Scaling is the most straight forward problem to solve. It’s a known problem with a lot ofknown solutions to borrow from. Hire smart architects... let them follow best practices...throw a big pile of cash at it and there aren’t many scaling problems you can’t solve.Obviously that’s somewhat of a simplification... but I’ll let someone else’s presentation getinto the details
  • 40. How do we compete now? 1. Scale 2. Velocity of InnovationFriday, October 7, 2011 22So how do we compete in this commoditized world?1. Scale... scale of users, scale of data, scale of compute power2. Velocity of innovation... how fast can you react to and execute on new market forces oropportunities.Scaling is the most straight forward problem to solve. It’s a known problem with a lot ofknown solutions to borrow from. Hire smart architects... let them follow best practices...throw a big pile of cash at it and there aren’t many scaling problems you can’t solve.Obviously that’s somewhat of a simplification... but I’ll let someone else’s presentation getinto the details
  • 41. Innovation is really a numbers game... Ah-ha! Ka-ching! Ah-ha!Friday, October 7, 2011 23The global innovation success rate across all geographies and industries
  • 42. Innovation is really a numbers game... 4%* Ah-ha! Ka-ching! 94%* Ah-ha! *Study by Doblin Innovation ConsultantsFriday, October 7, 2011 23The global innovation success rate across all geographies and industries
  • 43. Innovation is really a numbers game... 4%* Ah-ha! Ka-ching! 94%* Ah-ha! *Study by Doblin Innovation ConsultantsFriday, October 7, 2011 23The global innovation success rate across all geographies and industries
  • 44. How to win a numbers game...Company A ResultAh-ha!Company B Result Result Result ResultAh-ha! Ah-ha! Ah-ha! Ah-ha!Friday, October 7, 2011 24Put it this way... if in the time it takes you to get through one cycle, your competitor can getthrough 4... who do you think will be more competitive??
  • 45. How to win a numbers game...Company A ResultAh-ha!Company B Result Result Result ResultAh-ha! Ah-ha! Ah-ha! Ah-ha!Friday, October 7, 2011 25This is why the notion of a “burn rate” is a meaningless statistic. Say you have enough cash inthe bank to pay for x number of months. That doesn’t tell you anything... do you have 10shots at making customers happy or just 1? Think about it like a carnival game. If you haveten balls to throw at the target and someone else only has 1... who has a better probability ofsuccess?
  • 46. How fast can ops move? • Production deployment every 11.6   seconds (weekday) • 1,079 deployments in one hour (record) • ~0.001% of deployments actually cause an outage http://news.ycombinator.com/item?id=2971521Friday, October 7, 2011 26Jon Jenkins at VelocityOps is amazon’s strategic weapon... their books aren’t better, their storage isn’t better, theirhypervisor isn’t better.Everyone copies them but their just keep rolling out features and lowering costs faster thantheir competitors can do either
  • 47. Business is already thinking about this... Customer Development ModelFriday, October 7, 2011 27But can the biz move fast enough? They already are wanting to do soCustomer Development
  • 48. Operations becomes a strategic weaponFriday, October 7, 2011 28
  • 49. Operations becomes a strategic weapon When you are continuously...Friday, October 7, 2011 28
  • 50. Operations becomes a strategic weapon When you are continuously... 1. Increasing velocity of innovationFriday, October 7, 2011 28
  • 51. Operations becomes a strategic weapon When you are continuously... 1. Increasing velocity of innovation 2. Improving return on investmentFriday, October 7, 2011 28
  • 52. Friday, October 7, 2011 29•I got into a Twttier argument that went like this...• See “Cloud Gone Wrong”
  • 53. Clouds Gone Wild Busine s s Dev AWS business s3put s3 ssh ideas ! apache/php Rightscale memcached mysqlFriday, October 7, 2011 30-So letʼs start the story in the begining... Biz guy got a great idea for a service.-They used a classic web2.0 app architecture: apache/php, memcached & mysql.Development done on a single server-Production ran on EC2 and they used rightscale server templates-Release done by pushing code and assets to s3 buckets and then running a parallel SSHscripts to distribute them-This approach seemed to work... They got up to a few hundred nodes pretty fast.. businesswas cooking
  • 54. apache/php p arty, 3rd s3 memcached & are AWS mysql w mi ddle Rightscale yum Business apache/php puppet memcached mysql apache/php s3 AWS s3 memcached AWS mysql Rightscale Rightscale s3put s3put ssh ssh Business2 Business3Friday, October 7, 2011 31-First service was such a huge success they decided to launch other sevices-So they ”Copy and pasted” the whole architecture and lifecycle to launch the new businesses-Each new group pushed assets to s3, scripted the distribution, and hacked the rightscripts andtemplates-Things were obviously getting more complicated, so they did what they were supposed to doand added centralized tooling like puppet and yum-They thought they were doing things the cloud way and that all would be fine
  • 55. “As-is” operations server templates TAR RPM restarts TAR TAR code, EC2 content pupp deploys et RS app RS deployment devs deployment S3 yum repo Provision-time builds reconfigs TAR EXE TAR AUTO server TOOLS code templates TAR RPM middleware devs platform CONTROL PROVISION RELEASE system engFriday, October 7, 2011 32First we got the team on the whiteboard to map out the “as is” picture. This is a, believe it ornot, a simplified version of that.Some of the highlights...-First youʼll notice that different groups had their own path to production... different methods ofcontrol, provisioning, and release.-Each group and role seemed to have a different way to editing or storing config-There were differing ways of packaging software... sometimes it might be a .tar.gz other timesit might be an RPM.-Shockingly... Some things were even being built directly on production servers.-There was no authoritative source of information is maintained about nodes, applicationtopology, software versions, etc....
  • 56. Tec hnic alFriday, October 7, 2011 33
  • 57. Infrastructure Deveopment Life Cycle Everything starts here SVN hud agent cfg yum pup son repo pet packages active users run packages directory deck commands nag splunk ios resource model sys cfg right instance create scale events new node Node a log data CONTROL PROVISION RELEASEFriday, October 7, 2011 34I wonʼt go into too much detail about the tooling that was put into place to support all of this buthere are some highlights..-took a loosely coupled toolchain approach... using mostly open source tools-This became their standard stack of “operations middleware”. Of course, we are all used tothe notion of application middleware... but to an online service, the management infrastructureis just as much a part of the service as the application itself.-This operations middleware stack is a first class citizen along with application stack and it allgoes through the same SDLC... everything is versioned, built, deployed, and packaged via thesame process-Once in place, this middleware provides a single path for releasing, provisioning, andcontrolling anything that goes into an environment.
  • 58. 95% 5% Necessary Liability Strategic WeaponFriday, October 7, 2011 35
  • 59. DevOps Cafe subscribe in iTunesFriday, October 7, 2011 36I also do a podcast with the famous cloud and IT management guru john willis.Interview based series where we talk to all kinds of movers and shakers across thedevelopment and operation spectrum.Between DTO and doing the devops cafe content I get to talk to a lot of companies and seewhat’s working and what isn’t working.
  • 60. Let’s Talk.... @botchagalupe john@dtosolutions.comFriday, October 7, 2011 37We do this stuff all day long for a lot of large and cutting edge clients... and we love talkingabout DevOps so drop me a line anytime if you want to talk
  • 61. Let’s Talk.... @botchagalupe dev2ops.org john@dtosolutions.comFriday, October 7, 2011 37We do this stuff all day long for a lot of large and cutting edge clients... and we love talkingabout DevOps so drop me a line anytime if you want to talk
  • 62. Extra SlidesFriday, October 7, 2011 38
  • 63. C A M SFriday, October 7, 2011 39First get you mind around what you are looking for... Simple framework for categorizingDevOps problems and solutions.
  • 64. Culture Automation Measurement SharingFriday, October 7, 2011 40

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