Operations is a Strategic Weapon (PuppetConf)

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Presentation by Damon Edwards and John Willis at PuppetConf 2011 in Portland, OR.

Published in: Technology, Business

Operations is a Strategic Weapon (PuppetConf)

  1. 1. Operations is aStrategic Weapon
  2. 2. Spock Scotty Little bit weird Pulls levers & turns knobsSits closer to the boss Easily excited Thinks too hard Yells a lot in emergencies John Allspaw and Paul Hammond, Velocity 2009 http://www.youtube.com/watch?v=LdOe18KhtT4
  3. 3. DTO Solutions
  4. 4. When did they call?
  5. 5. When did they call?A. First signs of issues brewingB. Initial negative impact felt by someC. Heads are on fire
  6. 6. When did they call?10% A. First signs of issues brewing30% B. Initial negative impact felt by some65% C. Heads are on fire
  7. 7. Why did they wait?#1 Answer:
  8. 8. Why did they wait?#1 Answer: “Couldn’t get budget approval or business support”
  9. 9. Operations has a perception problem
  10. 10. Operations has a perception problem Business View Necessary Cost
  11. 11. Operations has a perception problem Business View Ops View vs Necessary Cost Strategic
  12. 12. What doesthis have todo with you?
  13. 13. First Law of Business Spending Things that Things thatcost you money make you money
  14. 14. Change Biz’s Perception of Ops vsNecessary Cost Strategic
  15. 15. Textbook definition of operations: “Operations is all of the activities that a firmconducts in order to deliver value to its customers. Its the set of processes that transforms eithermaterials or information into a product or service.” -David Upton Chair of Operations Management Oxford University
  16. 16. ResultAh-ha! Transformation Value Creation
  17. 17. Dev QA Sec Ops ResultAh-ha!
  18. 18. Ah-ha! Ka-ching!
  19. 19. Ah-ha!
  20. 20. Velocity of Innovation... Ah-ha! Ka-ching! cycle time Day 0 Day n
  21. 21. Companies were able toachieve somewhat defensiblepositions based ontechnology...
  22. 22. Companies were able toachieve somewhat defensiblepositions based ontechnology... then came theweb
  23. 23. How do we compete now?
  24. 24. How do we compete now? 1. Scale
  25. 25. How do we compete now? 1. Scale 2. Innovate Quicker
  26. 26. How do we compete now? 1. Scale 2. Innovate Quicker 3. Lower Costs
  27. 27. How do we compete now? 1. Scale 2. Innovate Quicker 3. Lower Costs
  28. 28. Innovation is really a numbers game... Ah-ha! Ka-ching! Ah-ha!
  29. 29. Innovation is really a numbers game... 4%* Ah-ha! Ka-ching! 94%* Ah-ha! *Study by Doblin Innovation Consultants
  30. 30. Innovation is really a numbers game... 4%* Ah-ha! Ka-ching! 94%* Ah-ha! *Study by Doblin Innovation Consultants
  31. 31. How to win a numbers game...Company A ResultAh-ha!Company B Result Result Result ResultAh-ha! Ah-ha! Ah-ha! Ah-ha!
  32. 32. How to win a numbers game...Company A ResultAh-ha!Company B Result Result Result ResultAh-ha! Ah-ha! Ah-ha! Ah-ha!
  33. 33. 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 outagehttp://news.ycombinator.com/item?id=2971521
  34. 34. Business is already thinking about this... Customer Development Model
  35. 35. How do we compete now? 1. Scale 2. Innovate Quicker 3. Lower Costs
  36. 36. Operations becomes a strategic weapon
  37. 37. Operations becomes a strategic weaponWhen you are continuously...
  38. 38. Operations becomes a strategic weaponWhen you are continuously... 1. Increasing velocity of innovation
  39. 39. Operations becomes a strategic weaponWhen you are continuously... 1. Increasing velocity of innovation 2. Improving return on investment
  40. 40. Let’s Talk....@damonedwards damon@dtosolutions.com
  41. 41. Let’s Talk....@damonedwards dev2ops.org damon@dtosolutions.com
  42. 42. Operations is aStrategic Weapon (Part Deux)
  43. 43. Are you an ...aaS
  44. 44. Are you an ...aaS
  45. 45. Are you an ...aaS
  46. 46. Are you an ...aaS
  47. 47. Are you an ...aaS
  48. 48. Are you an ...aaS
  49. 49. Are you an ...aaS
  50. 50. Are you an ...aaS
  51. 51. Green vs Red Widgits1 Million 1 Million2 Million No TD10 Million Profit 10 Million Profit10 - 3 = 7/3 10 - 1 = 9/1233% ROR 900% ROR
  52. 52. It Gets Worse...Technical Vicious Toxic Terminal Debt Cycle Operations
  53. 53. Tale of Two Startups
  54. 54. The Meat to Math Ratio http://radar.oreilly.com/2011/08/meat-to-math-ratio.html
  55. 55. Clouds Gone Wild Busine ss Dev AWSbusiness s3put s3 ssh ideas ! apache/php Rightscale memcached mysql
  56. 56. apache/php p arty, 3rd s3 memcached & are AWS mysql w m iddle Rightscale yum Businessapache/php puppet memcached mysql apache/php s3 AWS s3 memcached AWS mysql Rightscale Rightscale s3put s3put ssh ssh Business2 Business3
  57. 57. “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 eng
  58. 58. Tec hnic al
  59. 59. Infrastructure Deveopment Life CycleEverything 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 RELEASE
  60. 60. Meet your competition
  61. 61. •Betting on better experience•Attacking / chased by the majors•Real money at stake
  62. 62. •Betting on better experience•Attacking / chased by the majors•Real money at stake
  63. 63. go read: http://eng.wealthfront.com
  64. 64. go read: http://codeascraft.etsy.com
  65. 65. 95% 5%Necessary Liability Strategic Weapon
  66. 66. DevOps Cafe subscribe in iTunes
  67. 67. CAMS
  68. 68. CultureAutomationMeasurementSharing
  69. 69. Let’s Talk....@botchagalupe john@dtosolutions.com
  70. 70. Let’s Talk....@botchagalupe dev2ops.org john@dtosolutions.com

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