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%)

https://ibm.biz/SoftwareEdge-ibv

© IBM Corporation


Google Trends

4

© IBM Corporation


Google Trends: Agile Development and DevOps

5

6

December, 2014

7

December, 2014

Download your copy here: https://ibm.biz/costofdowntime

https://ibm.biz/costofdowntime

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…

https://ibm.biz/devops-ard-mgr6

http://www.amazon.com/gp/product/0321336380

http://www.amazon.com/dp/0321601912/

https://developer.ibm.com/urbancode/docs/environment-bottlenecks-schedule-provision-virtualize/

http://www.surveygizmo.com/s3/1659087/IBM-DevOps-Self-Assessment


http://itrevolution.com/the-three-ways-principles-underpinning-devops/

http://www.amazon.com/dp/0988262509/

http://ibm.biz/devops-ard-mgr3

https://ibm.biz/devops-ard-Amica-case




https://www.youtube.com/watch?v=IvAje0ReQCM

https://ibm.biz/devops-Nationwide-case

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 Q4 Activity

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 • Lessons Learned:

• 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

http://www.idc.com/getdoc.jsp?containerId=253155

http://www.idc.com/getdoc.jsp?containerId=253155

http://www.idc.com/getdoc.jsp?containerId=prUS25355414

https://www.ibm.com/developerworks/community/blogs/invisiblethread/entry/enabling_devops_success_with_shift_left_continuous_testing?lang=en

https://www.ibm.com/developerworks/community/blogs/invisiblethread/entry/enabling_devops_success_with_shift_left_continuous_testing?lang=en

http://ibm.biz/BizTechAlign

https://developer.ibm.com/urbancode/2013/10/28/

https://developer.ibm.com/urbancode/2013/10/28/

https://ibm.biz/SoftwareEdge-ibv

http://ibm.com/devops

http://www.ibm.com/software/rational/dummiesbooks/devops/

http://www.ibm.com/ibm/devops/us/en/deploy/

http://ibm.co/ARDfordummies

http://ibm.co/ARDfordummies

http://www.ibm.com/services/forms/signup.do?source=swg-rtl-sd-wp&S_PKG=ov17463&S_CMP=devops

https://www14.software.ibm.com/webapp/iwm/web/signup.do?source=swg-rtl-sd-calc&S_PKG=ov26141&S_TACT=C25600PW&CT=ISM0056

http://ibm.biz/devops-ard-Fidelity-wwi-case

http://ibm.biz/devops-ard-Amica-case

https://www.youtube.com/watch?v=IvAje0ReQCM&list=UUZjEZfm-WCJlQvWQ5y3nGkQ

https://ibm.biz/devops-Nationwide-case

https://www.youtube.com/watch?v=HuJiaEATkmw&list=UUZjEZfm-WCJlQvWQ5y3nGkQ

http://www.techvalidate.com/portals/urbancode-release-and-deploy?collection=release-deploy-charts-and-facts

http://www.techvalidate.com/portals/urbancode-release-and-deploy?collection=release-deploy-charts-and-facts

http://www.techvalidate.com/product-research/ibm-rational/case-studies







© IBM Corporation


Except were otherwise noted, © Copyright IBM Corporation 2015. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.

www.ibm.com/devops

http://www.ibm.com/software/rational