Road to DevOps ROI


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DevOps, the fusing of software development (Dev) with IT operations (Ops) is growing in popularity. 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. It solves a basic problem that arises with agile methodology, namely that quickly producing new code is of little use if it cannot be deployed on reliable infrastructure.

We nvestigate the ways that DevOps can generate a return on investment (ROI) for an organization that makes DevOps part of its IT strategy. DevOps certainly has great potential for business impact, with beneficial effects reaching far beyond the IT department. The ability to release high quality code efficiently confers benefits on both the income and expense sides of a business, measurable in hard dollars as well as intangible advantages such as increased brand equity.
Getting DevOps to pay off is far from a push-button process, however. CloudMunch offers a number of suggested practices based on its experience in DevOps with large enterprises. Business success with DevOps involves choreographing between people, organizational culture and the DevOps platform and tools. The paper explores practices related to setting up DevOps so that everyone on both Dev and Ops teams can get early, instant feedback on project work. In addition, it looks at practices to ensure that DevOps tools and processes can access the entire application lifecycle, which is critical to DevOps work.

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Road to DevOps ROI

  1. 1.  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.* * Source: 2013 State of DevOps Report – IT Revolution Press (Surveyed of more than 4,000 developers surveyed in 90 countries) 2
  2. 2. Develop Test Integrate Production  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-todeployment 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. 3
  3. 3.  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. Monitor, assess , recommend improvements Agile Development Continuous, Continuous, aut omated QA Automated deployment Continuous Integration 4
  4. 4. DevOps Traditional Ops Change Deploying Changes Automating Repetitive Tasks 4 5.3 4.5 4.6 -13% 13% Infrastructure Management Infrastructure Improvements 3.5 4.8 3.8 3.6 -9% 25% Support Communication Firefighting Self-Improvement Overhead 2.4 5.1 3.8 3.1 2.8 3.8 7.2 4.8 2.7 2.4 -58% -41% -26% 13% 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 nonimplementers.*  Time spent deploying changes dropped 13% **  Communication time fell a remarkable 41% ** * 2013 State of DevOps Report – IT Revolution Press (Surveyed of more than 4,000 developers surveyed in 90 countries) ** 5
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  6. 6. DevOps Team Size Fully burdened labor rate Weeks/year Change Annual Savings/Year Team Hours Difference -13% (250) $ (16,250) 13% 350 $ 22,750 50 Hours/Year 2,000 Total Annual Spend $ 1,300,000 Total Savings Savings as a percent of total $ (84,500) -7% Deploying Changes Automating Repetitive Tasks Infrastructure Management Infrastructure Improvements Support 4 5.3 4.5 4.6 3.5 3.8 -9% (150) $ (9,750) 4.8 3.6 25% 600 $ 39,000 2.4 3.8 -58% (700) $ (45,500) Communication Firefighting 5.1 3.8 7.2 4.8 -41% -26% 1,050) (500) $ $ (68,250) (32,500) Self-Improvement Overhead Total Savings $ 10 65 Traditional IT Ops 3.1 2.8 2.7 2.4 13% 14% 200 200 $ $ $ 13,000 13,000 (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. 7
  7. 7. For the best practices you need to eke the best ROI out of DevOps Additional models, spreadsheets and tools
  8. 8.  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). 9
  9. 9. The Overall Market Starting Market Size (Dollars/Quarter) $ 10,000,000 Market Growth Rate (Quarterly)  Software release cycles can affect revenue. 2% The Company Baseline Market Share 10% Sales bump from new release 5% Sales hit from no new release -3%  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. 10
  10. 10.  With no code released, revenue drops from $1 million per quarter to $807,000, with market share falling from 10% to 7%. $14,000,000 19% 17% 16% $12,000,000 15% 14% $10,000,000 Revenue  Over 8 quarters, the overall market for the product growing from $10 million to $11.4 million. $8,000,000 $6,000,000 13% 11% 10% 12% 9% 9% $4,000,000 8% 8% 8% 7% 7% $2,000,000 $0 1 2 3 4 5 6 7 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Market Share Total Market Size Revenue - 0 Rel/Q Revenue - 1 Rel/Q Revenue - 2 Rel/Q Market Share - 2 Rel/Q Market Share - 0 Rel/Q 8 Quarter  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%. 11
  11. 11.  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 12
  12. 12.  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. 13
  13. 13. For the best practices you need to eke the best ROI out of DevOps Additional models, spreadsheets and tools
  14. 14.  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. 15
  15. 15.  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. 16
  16. 16.  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. 17
  17. 17.  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. 18
  18. 18. For the best practices you need to eke the best ROI out of DevOps Additional models, spreadsheets and tools
  19. 19. CloudMunch 10900 NE 8th Street, Suite 1000 Bellevue WA 98004 (425) 677-5767 Copyright © 2013 by CloudMunch, Inc. 20