DevOps and the Case for ROI to Executives

© IBM Corporation
DevOps: Transforming software delivery for enterprise innovation and real business outcomes
DevOps and the Case for ROI to Executives
Peter Spung
Integration Executive, DevOps Deploy and UrbanCode, IBM Cloud
Valerie Scott
Manager of the Shared Services Division at HM Health Solutions
April 23, 2015

© IBM Corporation
Agenda
 Introductions
 Motivation:
– Delivering software is hard, downtime is costly. DevOps is hot, is a way forward, is real, and delivers real
business outcomes
 Some investment required!
– DevOps key technical practices, and org change leadership.
 A case study and dialog with Val, a change agent who has embraced DevOps
– Key practices adopted in her org’s DevOps journey at HM Health Solutions
– Leaders’ role in selling the stakeholders on ROI, embracing the practices, and leading org change
 Q&A
2
Joe Wochna Valerie Scott Peter Spung

© IBM Corporation
Delivering software is hard, required, and the execution gap is large
3
Closer look at the Outperformers…
• 63% of them use collaboration between Dev and Ops to
more effectively deliver software and improve outcomes
• 10 times (yes, 10x, an order of magnitude) more likely to
apply Agile and DevOps Continuous Delivery than Average
performers or Underperformers
We’ve all faced similar problems. However,
software delivery doesn’t have to be like this…
even higher in Financial
Services (76%), Retail
(65%), Telecom (64%),
Travel & Transport (64%)

© IBM Corporation
Google Trends
4

© IBM Corporation
Google Trends: Agile Development and DevOps
5

7
December, 2014
Download your copy here:
https://ibm.biz/costofdowntime

© IBM Corporation
The Returns are real. And Investment required in Key Practices!
Key DevOps Technical Practices
– Continuous Integration, ala Duvall et al
– Continuous Delivery, ala Humble et al
– Shift Left Testing, Test Automation and Test
Driven Development
– Automated Environment Provisioning
…and a growing list of best practices…
…that are assessed to fit critical pain points in
your software and enterprise IT org…
Org Leadership Practices
 (establish the DevOps Technical Practices and skills)
– The Three Ways and The Phoenix Project DevOps
approach, ala Gene Kim et al
– Establish an actionable governance feedback loop on:
 Technical Practice proficiency, and growing org adoption
• Org exec sponsorship, org change leadership, and DevOps
adoption among app teams.
• Quick Win Pilot projects to prove out:
 Key DevOps Technical Practices
– ROI and value to managers and executives
• Due to success , manage a growing backlog of demand
8
Real Returns for Real Clients, a few examples among many:
– Fidelity Worldwide Investments reduced deployment times from 3 days to 2 hours, achieved an approved
compliance and audit posture, and saved $2 million in the first year alone over manual deployments
– Amica Insurance reduced non-code related build failures from 20% to less than 1%, reduced web service
deployment from several days to 2 hours, and reduced dev setup wait time from 1.5 days to 25 minutes
– Silverpop, a SaaS digital marketing firm, reduced deployment from 12-18 people for 8 hours executing
400 manual steps to 5 minute automated deploys with 0 down time, saving over $1 million per year
– Nationwide Insurance implemented a DevOps approach and improved quality 50%, reduced downtime
70%, improved teams’ productivity into the top quartile, and achieved a CMMI Level 3 rating
…including those returns realized, and practices adopted, by Val and HM Health Solutions, as she’ll describe…

Case study and Q&A with a change agent and
DevOps org leader: Val Scott
9
Please note:
This portion of the video/audio file and the contents herein are owned by HM Health Solution Inc. or its affiliates
(HMHS). This presentation was developed by HMHS for the private use of persons who are authorized to view
its contents. Any copying or distribution of these materials is prohibited without HMHS’s express written consent.
HMHS is providing this video/audio presentation as an informational service only. This presentation is provided in
an “as is” format without warranties of any kind, expressed or implied, including but not limited to warranties of
title, non-infringement or implied warranties of merchantability or fitness for a particular purpose.
HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved.

10 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved.
Case Study: HM Health Solutions Approach to Enterprise DevOps ROI
Shifting left in application development offers a faster
return on investment by allowing developers to catch
errors earlier in the software development lifecycle.
•Benefits:
 Improves Software Quality
 Cuts Time Between Releases
• Industry statistics have suggested that:
58% of defects originated in earlier lifecycle
activities.
70% of all IT projects are not successful.
30-40% of all IT work is re-work.
Shift Left Approach provides Quality Improvements and Lower Development Costs:
• Reviews and checks take place as early as possible in the project delivery.
• This ensures the trapping of defects on the left hand side of a typical project lifecycle.
Shift Left philosophy is defect prevention rather than defect detection in the delivery lifecycle of a project
or program of work and contributes to lower costs of software delivery.
Strategy of Shift Left

Test-driven
developmen
t
▪ IBM UrbanCode Ubuild
and UDeploy – Automated
Unit and Integration Testing
is performed with
immediate feedback on
failure
Show
failed tests
Specify required
improvements in code
▪ Test cases developed along requirements
▪ Unit/module testing concurrent with
desktop development
▪ Teams review code to
ensure integrity
▪ IBM UrbanCode UBuild
code is integrated into
main version continuously,
with build automation
processes in place
▪ Automated regression tests in pre-
production, along with final
QA/UAT
▪ IBM UrbanCode UDeploy allows
for Push-button ability to
deploy into production
Show code conflicts
Show build errors
Automated Build and
Test Activities and
Quality Standard
Checks
Put code in
review queue
Automated Build with
Code Commit and
Dependency
management
Show errors from pre-production
Automated
Deploy Packages
to pre-production
1
Automated
testing
2
Streamlined
code review
3
Automated
deployment
5
Continuous
integration
4
Leveraging DevOps and IBM UrbanCode Suite of Tools

26%
47%
Defect Count
Withdrawn
Testing
Production
27%
100%
2014 YTD Defect %
Calculating the Average Hours to Repair Defects in Test and Production
Baseline number of hours to repair defect:
• On average it takes ~ 30 hours to resolve a
single test defect
• On average it takes ~ 120 hours to resolve a
single production defect
Establish a baseline for measurement:
1. Determine how to measure the current
environment and defect costs.
2. Understand contributing costs to the
amount of time spent in repairing defects.
3. Establish the average hour spent in
repairing defects in the environments.
Your mileage may vary !

HM Health Solutions Relative Savings and Efficiency Gains
30
120
-75%
Relative Hours to Repair
Programmer Defects
Per Environment
Production
Test
55
10
-82%
Automation Efficiency
Gains in Minutes
New Process
Old Process
3
1
-67%
Release Process
Resource Demands
Old Process
New Process
Your mileage may vary !

2014 2015
Q3 Q4 Q1 Q2 Q3 Q4Activity
1/13/2015
Wave 5: Workflow Vendor
Wave 4: Message Broker
Wave 3: Mainframe
Wave 2: Mainframe Proof of Concept
Wave 1: WebSphere
DevOps Pilots
Wave 6: Client Desktop
6 Java Apps
238 WebSphere Apps
107 Mainframe Apps
43 Message Broker Apps
26 Workflow Vendor
26 Client Desktop
Mainframe POC & Pilots
HM Health Solutions Roadmap 2014-2015

• Assess your current environment to find the largest constraint
• Determine the scope of your maturity level goal
• Develop Business Case and seek management approval
• Proof of Concepts
• Identify savings opportunities and determine measurement
• Prioritize the target environment
• Pilots
• Roadmap
• Onboard, track, and compare before and after picture
• Defect and Testing practices
• Development and Release process
• Resource allocations
• Ring fence
• Track savings and real efficiency gains during rollout
• Track ROI on monthly basis
Tips on Getting Started with Enterprise DevOps and Rollout

• Develop Business Case and seek management approval
• Proof of Concepts
• Lessons Learned:
• Test cases should include reports on metrics
• Inventory and prioritize the target environment
• Roadmap
• Develop a structured process for tracking and measuring, along with a glossary of automation
terms.
• Onboard, track and compare before and after picture
• Defect and Testing Practices
• Use the Pareto principle (80-20) for the baseline defect measurement. (What is a programmer
error?)
• Ring fence
• Track savings and efficiency gains during rollout
• Methodically step through the savings with the onboarding team on efficiency gains. Quickly
report the gains when found.
• Track ROI on monthly basis
• Don’t be afraid to roll up your sleeves and dig into the data. There is a gold mine out there.
Lessons Learned In Calculating and Managing the DevOps ROI

Leveraging (3) Key Industry Components for Enterprise DevOps ROI
• DevOps
 Continuous feedback integration and delivery.
 Quality software development practices that manages the software packages during the
development process.
 Increases our ability to shorten our delivery times.
• Shift Left Approach
 Shifting software testing sooner in the software delivery lifecycle, allowing developers to
catch defects sooner.
 Fastest way to realize one’s return on investment based on relative cost or repair in
production.
• Automation
 Leveraging the automation gains from IBM Urbancode Suite.
 Achieve a Managed Environment maturity level or higher with:
 Scheduled, standard and automated processes
 Allows for an increase in the delivery cycle.

© IBM Corporation
Links to more information
 IDC reports on DevOps and the Cost of
Downtime, and DevOps maturity and adoption
 Dibbe Edward’s blog on enterprise DevOps best
practices for executives
 Peter Spung’s blog – ditto for managers
 More on Knight Capital and their App Deployment
related trading losses
 IBM IBV Software Edge study: software innovation
equals business success
 IBM DevOps web site
 DevOps for Dummies eBook
 DevOps Deploy web site: application release &
deployment automation web site
 Application Release & Deployment for Dummies
eBook
 Whitepaper on ROI: The Value of Deployment
Automation
 ROI Calculator: calculate the benefits and return
of deployment automation using IBM UrbanCode
Deploy
 Results and ROI from client case studies:
– Fidelity Worldwide Investments
– Amica Insurance
– Silverpop
– Nationwide Insurance
– IBM Global Technology Services
– Numerous client case studies, quotes, testimonials
and facts about IBM UrbanCode app release and
deploy solutions, and IBM DevOps solutions from
TechValidate’s independent research
 Blogs with more resources on ROI:
– Summaries of client payoffs here and here.
– How to calculate the returns, which are often large
enough to make the case
– The investments in know-how required, and how to
go about acquiring and learning it
19

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www.ibm.com/devops

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