does sfo 2016 - ross clanton and chivas nambiar - devops at verizon

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

DevOps @ VerizonRoss Clanton, Fellow, DevOpsChivas Nambiar, Director, DevOps and Public Cloud Platform Engineering


“Safe Harbor” Statement

NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subjectto risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained inthe Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause thoseresults to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and internationaleconomies; competition in our markets; material adverse changes in labor matters, including labor negotiations, and any resultingfinancial and/or operational impact; material changes in available technology; any disruption of our key suppliers’ provisioning ofproducts or services; significant increases in benefit plan costs or lower investment returns on plan assets; breaches of network orinformation technology security, natural disasters or terrorist attacks or existing or future litigation and any resulting financial impact notcovered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accreditedratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability offinancing; any changes in the regulatory environments in which we operate, including any increase in restrictions on our ability tooperate our networks; the timing, scope and financial impact of our deployment of broadband technology; changes in our accountingassumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or theirapplication, which could result in an impact on earnings; our ability to complete acquisitions and dispositions; and the inability toimplement our business strategies.

Throughout this presentation, financial information shown excludes, where noted, non-operational or one-time items. As required bySEC rules, we have provided a reconciliation of the non-GAAP financial measures included in this presentation to the most directlycomparable GAAP measures in materials on our website at www.verizon.com/investor.

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 3

• Serving 99% of the Fortune 500 • Serving 2,700 cities in 150+ countries

INTERACTIVE ENTERTAINMENT

INTERNET SERVICES

• Largest 4G LTE network• 113.7M retail connections

INTERNETOF THINGS

• Nation’s largest all-fiber network• 4.7M video and 5.6M Internet customers

DIGITAL MEDIA

Fortune 500 rank: #13

2015 capital investment: $17.8B

2015 revenues: $131.6B

GLOBALBROADBAND NETWORK

Who we are: Delivering the promise of the digital world


Evolving customer profile … and expectations

Digital – on any device and across devices.

Instant – all devices always aware anywhere.

Simple – intuitive to buy, integrate and consume.

Reliable – works all the time.

Personal – everything is predictive and for me.


Key Demand Drivers

4K TV (UHD)Exponential

Virtual & Augmented RealityExponential

WIRELINE USAGE

PUBLIC

GLOBAL IP USAGE

55%Y/Y G% 49%

WIRELESS USAGE

67%Y/Y G % 61% 45%Y/Y G% 41%

Customer Behavior Driving Usage

Dec 13 Dec 14 Dec 15 Dec 13 Dec 14 Dec 15 Dec 13 Dec 14 Dec 15

Video StreamingIncremental

Multiple DevicesIncremental


Retooling the Consumer Business

6

Reduce business process complexity• Rationalize the product set

• Business Process Re-Engineering

• Simplify Customer Experience Simple Personal Customer

Experience

Single Profile

Single Catalog

Single Order

Single Biller

Plan for the future• Roadmap for 7-10 years

• Next Generation OSS/BSS systems


Unified Customer Experience

COA

.COM RETAIN

SX

NSOP NPD SOP

BQTSDMP

NYNE SOP

NOCV

SSP

SEFS CRISNBBE

V5 –SCM

RIBS

2014COA

.COM NSOPNOCV

SSP

SEFS CRISNBBE

VISION RIBS

• Improved common customer experience

• Foundation for IPTV platform• Eliminate systems to improve quote to bill

accuracy • Consolidate profiles across 9 systems to

improve response times and cross-channel consistency

COA

.COM

SSP VISION

• Shutdown 140 systems to create national billing platform• Enable seamless customer cross-regional moves

• Improved speed to market across all CMB products• Simplified customer experience with single account ID

2015

2013üEliminated vendor

costs


Phase 1 – Systems Consolidation

8

Simplify customer experience• Single view of the customer

• Context driven call-in experience

• Simplified billing experience

System wide Re-architecture• Consolidation of data

• API gateway layers

• Simplified single user interface

• Common Analytics platform

Systems Consolidation696 ➡ 229 (2011 – 2016)


Phase 1 – Infrastructure Consolidation

9

Virtualization and Cloud• 1000s of Physical servers eliminated

• 60%+ servers virtualized

Mainframe Consolidations• Sites: 6 ➡ 4

• Mainframes: 39 ➡ 17

Consolidating Data Center Footprint• Data Centers: 14 ➡ 7 (2011 – 2016)

20% 30% 40%60%

85%

2011 2012 2013 2014 2015

Virtual Servers

Standalone Æ Virtualization Æ Cloud

0

5

10

2011 2012 2013 2014 2015 2016

Datacenters

Data Center Consolidation


Phase 2 – DevOps as Acceleration Strategy

Our DevOps AspirationConsistently create and deploy reliable software onto scalable infrastructure enablingimmediate business and customer benefits

10


The Value Creation Loop – Desired Outcomes

11

Start with an idea

Build minimum viable product

Deploy and scale

Get Customer feedback

• Enable smart experiments

• Unleash developer creativity

• Build and scale seamlessly

• Code to customer ownership



12

Start with an idea


Deploy and scale







Phase 2 – Enable and unleashStandard Best in Class SDLC Platform

• Single Code Repository

• Single, open by default agile tracker

• Automated testing infrastructure

• Embedded Code quality and security scanning

Optimize for Enthusiasm Adoption• Grassroots driven

• Business benefit success story showcases

• Six Sigma driven metrics validation


Widespread Enterprise Adoption

Proven Ongoing Benefits

Continuing Platform Enhancements 767/1087 Directional Applications On-boarded

ü Increased % of Functional test cases automated and executed

ü Increased % of Application functions and deployments performance tested

ü 30%+ Reduction in production IRs

ü 30%+ Y/Y reduction in production outages

ü # of Continuous Integration builds (Build/Test/Deploy) on platform

ü % No touch deployments

ü Multiple daily & weekly deployments enabled vs monthly changes

Quality

Velocity

Platform Adoption

CMB, 138

CAO, 30

DWP, 15

VES, 184

WLNO, 11CFO, 66

ITCPS, 33

PDMO, 9

VZW, 95

VZW-N, 79

ITSP, 8

NTS, 99



15

Start with an idea


Deploy and scale







Build and Scale

Retool the private cloud infrastructure• Self-service automation as core concept

• API driven infrastructure using Openstack + Cloudfoundry

• Bring brown-field infrastructure along

Enable public cloud usage• Started with non-production workloads

• Retraining teams for infra-as-code

• Security and Compliance embedded

16

EZ


Migration Journey

Lift & Shift

Cloud Native

17

Lift & Reinstall• Build technical capability with cloud toolset

• Drive automation

• 30% infrastructure efficiency expected

Cloud Native Transition• Refactor directional applications

• Enable innovation via scalable infrastructure

• multiple production versions, A/B experiments)

• Drive additional 40% efficiency


VZW.com• Primary online customer destination

• Increasingly larger revenue growth source

• Business and market drives constant change

Benefits:• Code ➡ Deploy multiple times a day

• E2E environments in minutes vs weeks

• 70+% test case automation

CoFEE Anywhere(Customer care system)• One stop shop for care

• Supports 40k+ agents and technicians

• Critical to customer experience

Benefits:• Releases from monthly ➡ 2x/week

• Elastic horizontal scaling

• Cost of infrastructure reduced by 30%

• In transition to micro-service drvenarchitecture

18

Phase 2 – What success looks like for Systems


• Engineering Culture

• Open Source adoption and adaptation

• Enterprise wide backlog

• Demo driven transformation

• Gamification as enabler

• DevOps Cups driving adoption

• Cash for success

• Agile transformation across multiple lines of business

• Open backlogs

• Knowledge and skills sharing

19

Phase 2 – What success looks like for teams & culture

• Optimize for enthusiasm

• One size does not fit all

• Constant improvement becomes second nature

• Take the first step!


Value Creation Enablers – Where we are today

20

ü Best in Class Agile SDLC

• Scalable Cloud Infrastructure

• Great Developer Experience

• DevSecOps enabled organization


The Easy Part was done…

So for Phase 3 we brought in: Ross Clanton!

21

DevOps

Been there, done that, and I have a T-Shirt to prove it

-Ross Clanton, 2016


Where next?

Accelerating Innovation!

22

DevOps

Scaling Engineering Culture & Practices

23Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Our goal is to grow and scale our Engineering capabilities, with deeper competencies in Agile, DevOps, Cloud Native architecture, and security by design.

How We Accelerate: Optimize for Agility


How We Scale


Embed• Dedicated Coaching• Co-creation

Enable• Immersive Experiences (i.e. Dojos)• Workshops

Establish• Patterns, Practices, & Frameworks• Code Examples / Reference Apps• Self-Service Tooling & Training• Communities of Practice

Base

Ser

vice

Prem

ium

Se

rvic

eW

hite

-Glo

ve

Serv

ice

Build Dojo LocationsDojos are trending in the industry as an effective way to transform skills, incubate innovation, and foster engineering culture


Open Innovation Labs“Target rebuilds it’s Engineering Culture, Moves to DevOps”

“CompoZed Labs aims to allow parts of Allstate acting more like a

startup”

“Utilizing distributed dojo’s to transform our workforce”

Vendor Labs ModelInternal Dojos

Engineering Practices

Operationalizing Dojos


Roles

Optimize Dojo LocationsEstablish Engineering Practices Organization

Dojo Manager

Dojo Ops

DevOps Coach

Cloud Coach

App Sec Coach

Operations Strategy

• Dojo locations established at key technology locations

• Regional approach provides hubs to travel to• 40-50 seats per Dojo• Staffing per location• Scale space and coaches per demand

Community Engagement Mgr

Agile Engineering

DevOps

Cloud Native

Public Cloud

API / ServicesApplication Security

How We’ll Know We’re Successful: Measuring Progress


Are we getting better? (Capability Measures)

+

Are we seeing results? (Outcome Measures)

Community Challenge: Build a widget in Hygieia to integrate DORA results

Where do we need help


How to move to a more customer aligned product and service based organization…..


Thank you.

30

does sfo 2016 - ross clanton and chivas nambiar - devops at verizon

Technology