Tag: applications economy

  • Iterative Indicators: Measuring DevOps ROI

    Iterative Indicators: Measuring DevOps ROI

    It’s well-established that application of ROI measurements to IT investment remains an imperfect science, and the same goes for ongoing adoption of DevOps methodologies.

    The fuzzy math of vendor-driven ROI calculators aside, even the most respected industry watchers have long struggled to create concrete parameters for assessment of technology spending. This, in large part, has been related to the fact that the requirement for continued investment has outweighed the value of short-term metrics.

    At the same time, it’s hard to put a price on the influence that paradigms including mobility, virtualization and the cloud are having on today’s business world. The scope of the so-called Applications Economy is only truly beginning to be realized.

    For in-depth discussion of DevOps ROI, register today for the upcoming webcast “Maturity Metrics – Analyzing the 2016 State of DevOps Report” with noted industry expert Gene Kim.

    With DevOps, the challenge of ROI measurement evokes similar characteristics as with these other bellwether movements. The affect that leveraging DevOps to become more agile and respond adeptly to changing customer expectations will have, long-term, ultimately will be realized as much in organizational viability as in any immediate cost-savings or other factors.

    That said, the recently published 2016 State of DevOps Report, assembled by the researchers at DevOps Research and Assessment (DORA), goes further down the path toward creating meaningful ROI metrics than any other such previous effort.

    For starters, the 2016 report builds on previous year’s conclusions that so-called “high-performing organizations”—those already deeply engaged in DevOps practices—are “decisively outperforming their lower-performing peers in terms of throughput,” and this gap continues to widen.

    Moreover, DORA contends that high performers deploy applications code 200 times more frequently than slow performers and achieve 2,555 times faster lead times. Perhaps even more importantly, in particular as it relates to the ability to improve applications performance, the report estimates that leading DevOps practitioners lay claim to 24 times faster recovery times and three times lower change failure rates.

    The State of DevOps Survey, completed by roughly 4,600 technology practitioners, also found that high-performing teams spend far less time on so-called “unplanned work and rework”—most often required to address existing problems—allowing them to spend nearly 50 percent more of their time on new work. The latter brand of effort is typically aimed at adding or improving feature functionality—or, in simple terms, innovation.

    As increased software velocity and reduction of MTTR represent the most critical differentiators in today’s environment, where an end user may wait only seconds for an app to load before abandoning your brand altogether, these conclusions obviously carry impressive weight.

    Finally, based on a framework established by research analysts at IDC which suggests that hourly application downtime costs can range from $1.25 to $2.5 billion for a Fortune 1000 firm, and that the average cost of a critical application failure is $500,000 to $1 million per hour, the State of DevOps Report allows for the conclusion that high-performing organizations save an average of more than $91 million per year.

    Much of this advantage is found, the researchers note, in the form of lower applications change failure rates, or those updates to software code that result in subsequent performance issues or outages. While high-performing DevOps practitioners experience an average change failure rate of 7.5 percent, medium-performing organizations see that figure rise dramatically, to a whopping 38 percent.

    If the undeniable adage that “time is money” applies in today’s Applications Economy as much—if not more than ever—than these ROI calculations would appear to infer substantial meaning.

    Later this month, Gene Kim, one of DORA’s founders and a key contributor to the State of DevOps Report, will host a webcast with CA Technologies expert Aruna Ravichandran to discuss DevOps ROI and many other related topics. Register for that event today.

  • Digital Disrupters – Building a DevOps Leadership Profile

    Digital Disrupters – Building a DevOps Leadership Profile

    While the advancement of DevOps methodology remains fairly nascent for many organizations, an ever-expanding class of leading practitioners are evolving a wide range of related best practices.

    Beyond the well-worn concept of “unicorns” – the scant few organizations that stand as mythical examples of DevOps nirvana – this broader set of early adopters have begun to pull back the curtain on their efforts, lending further detail to the strategies that have bred this current model for success.

    Last week, industry analysts Freeform Dynamics published valuable research that highlights the ongoing work of such DevOps innovators, dubbed as “Digital Disrupters” for their accomplishments in pursuing larger digital transformation. The report “Exploiting the Software Advantage” – sponsored by CA Technologies, outlines a critical set of initiatives crucial to navigating the DevOps landscape.

    What are the specific hallmarks of those organizations leading the charge? Where are others struggling to catch-up? Many of the Freeform Dynamics survey results, based on 1442 respondents, reaffirm widespread DevOps observations, while other findings serve to shed new light, including:

    • Everyone builds software: Perception is, in fact, reality and to deeply engrain digital transformation, Digital Disruptors are increasingly identifying with this mantra. While 95% of leaders have committed to becoming more app-centric, only 51% of mainstream organizations have adopted this persona. Similarly, 84% of Disruptors directly identify as “software companies”, regardless of industry, compared to 40% among the masses.
    • Transformation is required: This point may seem obvious, but it certainly bears repeating. A whopping 92% of leaders have actively moved to break down traditional silos between Dev and Ops, with 51% of those organizations having already completed this work. By comparison, only 18% of mainstream organizations claim to have done the same, supported by 59% who at least share this more collaborative DevOps vision.
    • Commitment is critical: This may also seem like a no-brainer, but the numbers bear out this requirement. Some 77% of Disruptors have agile development methodologies in place, with 70% having “broadly” implemented DevOps activities. For mainstream organizations, these metrics rate at only 31% and 21%, respectively; leaders are going all-in and appreciating the benefits, and those that follow will need to do the same.
    • Experimentation is omnipresent: To garner the benefits of continuous delivery, embracing trial and error is a must. Among Disruptors, 93% recognized the need to “experiment and fail quickly on the road to success”, compared to only 58% of mainstream organizations. Some 95% of leaders have already shifted from fixed product cycles to continuous innovation, while only 56% of the mainstream have made this leap.
    • APIs are everywhere: Ubiquitous integration, both in-house and in connecting to third parties, has only increased emphasis on the API. Disruptors are resoundingly focused on API management, with 68% using APIs to integrate third party services into their applications, and 66% to offer external access to systems and data. Mainstream peers compare at only 26% and 24%, respectively, denoting a sizable API management gap.

    These are only a handful of the most dramatic and obvious areas where DevOps advocates have clearly re-architected their approach, separating themselves from those organizations that have yet to go all-in; it doesn’t stop there.

    As highlighted in the research, other areas of differentiation and dichotomy include cross-functional alignment, emphasis on digital channels, use of digital to drive core business efficiency, and even funding of digital investments.

    Beyond these key philosophical milestones that litter the pathway to DevOps success, the survey also highlights the vast array of strategic goals that these organizations have sought to accomplish. The results spotlight the massive range of significant business benefits that practitioners believe DevOps can deliver.

    Leading use cases include:

    • Improved customer satisfaction (49%)
    • Better workforce productivity (44%)
    • Improved customer experience (41%)
    • Improved competitive differentiation (38%)
    • Better agility / speed-to-market (37%)
    • Opening up of new markets (35%)
    • Creation of new business models (30%)
    • Creation of new routes to market (26%)

    If one were to take those outcomes out of context, unrelated to the impact of DevOps, it’s fair to say that they read like a generic list of leading business initiatives – further underlining the movement’s overall relevance.

    That’s not to say this is all accomplished easily. Report respondents detail hard won victories that required significant time and investment to achieve all this DevOps-driven advancement. After all, the notion of “disruption” doesn’t exactly evoke images of ease or comfort.

    Click here to read the report for yourself – there’s a lot more to be considered. Namely, how well your organization measures up in affecting digital transformation in its own right, and where it can take steps to move forward.