Building a Compelling Business Case for Continuous Delivery

Building a Compelling Business Case for Con2nuous Delivery October 6, 2015 Kurt Bi3ner, Forrester Research Andrew Phillips, XebiaLabs

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Housekeeping

▪ This webinar is being recorded

▪ Links to the slides and the recording will be made available aGer the presentaHon

▪ You can post quesHons via the GoToWebinar Control Panel

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Agenda

▪ IntroducHon

▪ Bridging the SoGware Delivery Divide

▪ Building a Compelling Business Case For ConHnuous Delivery

▪ Q & A

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Presenters

Andrew Phillips

@XebiaLabs

▪ Lots of enterprise soGware development on high-‐performance systems

▪ Been on both sides of the “Dev…Ops” fence

▪ Regular presents at meetups, conference etc.

Kurt Bi>ner

@ksbi3ner

▪ Kurt Bi3ner is a Principal Analyst serving ApplicaHon Development and Delivery professionals.

▪ His research focus in on helping organizaHons improve their speed and quality of delivery while reducing cost and improving business performance. He focuses primarily on ConHnuous Delivery and DevOps pracHces.

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ConnecHng the dots for Con2nuous Delivery at enterprise scale

VIS IB I L I TY

AUTOMATION

CONTROL

G l o b a l L e a d e r s D e l i v e r S o G w a r e w i t h X e b i a L a b s

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VIS IB I L I TY

AUTOMATION

CONTROL

XebiaLabs Solu2ons Release

Orchestra2on

Deployment Automa2on

Test Analy2cs

Orchestrate, automate + view release pipelines

Automate deployment of complex applicaHon releases

Analyze test results across mulHple test tools

ConnecHng the dots for ConHnuous Delivery at enterprise scale

G l o b a l L e a d e r s D e l i v e r S o G w a r e w i t h X e b i a L a b s

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Faster 2me-‐to-‐market

83%

Reduc2on in cycle 2me 90%

48% Produc2vity improvements

Organiza(ons with high performing DevOps [teams] were 2.5X more likely to exceed profitability, market share and produc;vity goals … .

Gene Kim, Author of The Phoenix Project

…Con(nuous Delivery…enables Agile to finally deliver on its promise to business leaders: faster delivery of genuine business value”…

Kurt Bi3ner, Senior Analyst, Forrester Research

Companies are seizing the Con2nuous Delivery Opportunity

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OperaHons

Development

Architects

Release Managers

IT professionals are looking to

▪  Standardized, repeatable & automated release processes

▪  Reduce risk (manual errors, compliance + IT governance)

▪  Visibility across the enHre soGware delivery process

Thing

> Legacy Web Mobile Microservice IoT

Cloud On-‐Prem Mainframe

Apps

Environments

Tools

across…

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The SoYware Delivery Divide

Bleeding edge startup / 2ger team

§  Large-‐scale service landscape §  MulHple teams/ organizaHon-‐

wide iniHaHve §  ExisHng complex applicaHons §  Diverse skill levels §  Technical & business scope

Enterprise

➡ Tradi(onal releases ➡ Con(nuous Delivery

▶  Enterprises want to emulate startups + adopt new pa3erns

▶  But recognize that they are a long way away from that today

§  Small projects §  Individual teams §  Greenfield §  Highly skilled §  Technical scope

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Bridging the SoYware Delivery Divide

Bleeding edge startup / 2ger team

§  Large-‐scale service landscape §  MulHple teams/ organizaHon-‐

wide iniHaHve §  ExisHng complex applicaHons §  Diverse skill levels §  Technical & business scope

Enterprise

➡ Con(nuous Delivery at Enterprise Scale

▶  Enterprises want to emulate startups + adopt new pa3erns

▶  But recognize that they are a long way away from that today

§  Small projects §  Individual teams §  Greenfield §  Highly skilled §  Technical scope

Strategy: §  Deliver enterprise-‐scale

funcHonality §  Provide visibility into the

release process §  Ensure easy adopHon/use §  Complement exisHng tools

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From Theory to Prac2ce

▪ The ConHnuous Delivery story and the promised benefits are compelling

▪ Addresses business-‐relevant as well as day-‐to-‐day technical challenges ▪ Convincing the CFO requires more than a compelling story and consensus from the team that this is “a good thing to do”

▪ Challenge: how to present a credible business case to allow you to move from small experiments to enterprise-‐wide ConHnuous Delivery iniHaHves?

© 2015 Forrester Research, Inc. Reproduction Prohibited

Building a Compelling Business Case For Continuous Delivery

Kurt Bittner, Principal Analyst

© 2015 Forrester Research, Inc. Reproduction Prohibited 14

Application Delivery Speed is a Force Multiplier

Costs

Benefits

Application Delivery Speed

Cost Revenue

•  Retooling •  Retraining •  Culture ∆


Estimating Costs and Benefits

Magnitude of Impact

Intangibility

Reduced Labor cost

Improved Goodwill

Reduced Defects Reduced

Operating Cost

Improved Competitiveness

Most business cases focus

here

The biggest benefits are

here

Reduced Scrap & Rework

Reduced Production Incidents

Improved Revenue

Improved Delivery Speed

MTTR


Primary Sources of Application Delivery Cost and Waste

Failed deployments

Idea proposed

Understand Needs & Invent

Solutions

Functional Testing

Deploy Solution

Production Support

Load, Performance, Security, …

Testing

UAT/Exploratory

Testing

Release Decision

Wrong solution Scrap and

rework Too much

manual effort

Develop, Commit & Build

Too much manual effort

Provision Environments

Production Incidents

Too much manual effort

Too many meetings

Time spent waiting


Functional Testing


Testing

UAT/Exploratory

Testing


Provision Environments Reduced manual effort

Idea proposed


Solutions

Deploy Solution

Release Decision

20-80% of Production Incidents Are Due to Configuration Errors

Production


Testing Development

Manual environment configuration leads to “drift”. Drift causes failures.

Standardization (“infrastructure as code”) + automation eliminates “drift”.


Idea proposed


Solutions

Deploy Solution

Release Decision

Benefits of Standardizing Environment Provisioning

Functional Testing

Production Support


Testing

UAT/Exploratory

Testing



Fewer Production Incidents

Reduced manual effort

Reduced time spent waiting

2

1 3

(benefit based on actual effort reduction)


Functional Testing


Testing

UAT/Exploratory

Testing



Idea proposed


Solutions

Deploy Solution

Release Decision

Production Incidents Are VERY expensive

Production Support

Fewer Production Incidents

•  Data center downtime cost across industries: ~$5,600/minute •  The avg incident length is 90 minutes; avg cost/incident: ~$505,500.

http://www.eweek.com/c/a/IT-Infrastructure/Unplanned-IT-Downtime-Can-Cost-5K-Per-Minute-Report-549007

LOST REVENUE*= (GR/TH) x I x H

GR = gross yearly revenue TH = total yearly business hours

I = percentage impact H = number of hours of outage

http://www.evolven.com/blog/downtime-outages-and-failures-understanding-their-true-costs.html

*Most organizations with customer-facing applications have more accurate models for revenue/loss prediction




Idea proposed


Solutions

Release Decision

Production Support

Functional Testing


Testing

UAT/Exploratory

Testing

Deploy Solution

Reducing Costs Caused By Deployment Failures

Failed deployments result in unplanned work: •  Time and effort spent diagnosing problem &

determining remediation steps •  Rolling back failed deployments •  Remediating related production incidents

(don’t forget to include cost of outage)

Business Case impact: based on historical data, determine:

•  average cost per failure •  failure frequency




Idea proposed


Solutions

Deploy Solution

Release Decision

Production Support

Manual Testing Is Also VERY Expensive (and not very effective)

Problems with manual testing: •  Slow •  Too expensive to do for each

build – diseconomies of scale •  Coverage typically not very

high •  Manual errors and

inconsistencies

Functional Testing


Testing

UAT/Exploratory

Testing

Solution: •  Increase the amount of

automated API-based testing by shifting some manual tester resources to “Test Development Engineer”

•  Net cost approximately zero •  Over time, manual testing

costs go down

Business Case impact: •  Increased developer productivity •  Reduced production incidents


Functional Testing


Testing

UAT/Exploratory

Testing


Idea proposed


Solutions

Deploy Solution

Release Decision

Production Support


Manual Build Processes: inconsistent and hard to control

Problems with manual builds: •  Slow •  Inconsistent

Solution: •  Centralized self-service CI service

Business Case impact: •  Increased developer productivity •  Reduced headcount on teams (or more

resources to write app code)


Develop, Commit & Build Functional

Testing


Testing

UAT/Exploratory

Testing


Deploy Solution

Release Decision

Production Support

Idea proposed


Solutions

Feature Bloat Is A Large But Hidden Cost

Some sobering stats: •  1/3 of ideas have no impact on desired outcomes •  1/3 of ideas make outcomes worse •  Only 1/3 of ideas improve outcomes1

Two-thirds of what gets built is waste!


Develop, Commit & Build Functional

Testing


Testing

UAT/Exploratory

Testing


Deploy Solution

Release Decision

Idea proposed


Solutions

Better Analytics, Faster Delivery Cycles Improve Insight

Improve results by: •  Tying stories and features to outcomes •  Defining desired results •  Delivering in smaller releases to get

feedback faster •  Measuring the outcome using application

analytic tools and practices •  Using data to prioritize future work

Production Support

feedback


A one-point improvement in CX score can result in dramatic increases in revenue


Managing The Delivery Pipeline To Increase Velocity

3 days 5 days

15 days

3 days

10 days 7 days 4 days 9 days

cycle time= 57 days

1 day

feedback

July 25, 2014 “Define A Software Delivery Strategy For Business Innovation”

Idea proposed


Solutions

Functional Testing

Deploy Solution

Customer Value


Testing

UAT/Exploratory

Testing

Release Decision



Production Support

Functional Testing


Testing

UAT/Exploratory

Testing



Idea proposed


Solutions

Deploy Solution

Release Decision

Composite Applications Make Coordination Challenging, Delays Likely

Source: Forrester Research, Inc.111102

Figure 2 An Example Modern Application: Composite And Multichannel

Social mediaand search

Systems of engagement(mobile, web, rich client)

Cloud-basedsystems of record

Traditionalsystems of record

In-store point-of-salesystems

Cloud-based services providedby third parties


Production Support

Functional Testing


Testing

UAT/Exploratory

Testing



Idea proposed


Solutions

Deploy Solution

Release Decision

Revenue Acceleration – Like Outages, But In Reverse

Increased REVENUE = (GR/TH) x I x H

GR = gross yearly revenue TH = total yearly business hours

I = cycle time reduction as % percentage of total year H = number of hours reduction in cycle time

http://www.evolven.com/blog/downtime-outages-and-failures-understanding-their-true-costs.html


Production Support

Functional Testing


Testing

UAT/Exploratory

Testing



Idea proposed


Solutions

Deploy Solution

Release Decision

•  The most compelling business outcomes are hard to measure •  Improved customer satisfaction •  Increased revenue •  Increased market share

•  Reducing Production Incidents is the easiest to measure •  Reduced probability of incidents •  Reduced severity •  Improved MTTR

•  Improving productivity and reducing cycle time is always compelling •  Reduced labor cost •  Improved throughput

•  As application modularity increases, speed and complexity increase •  Automation is essential

Summary

Thank you

forrester.com

Kurt Bittner, Principal Analyst [email protected]

@ksbittner

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Key Takeaways

Include intangible benefits

▶  Harder to measure, but can be the biggest benefit ▶  Ensure you make these as visible as possible

Data, Data, Data

Closing the loop

✔

✔

✔

▶  “Black box” automa(on makes it hard to demonstrate value and to iden(fy weak points

▶  Tools must support visibility, automa;on & control

▶  Two-‐thirds of features will s(ll be neutral at best, even with a perfect delivery process

▶  Hypothesize before coding, measure in produc;on

✔

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Helping enterprises move to the next level

“We reduced deployment failure rates by 90%”

“We went from releasing 4 Hmes a year to bi-‐weekly releases

“Understanding what’s broken in our code takes minutes instead of days” … and many more

34 Copyright 2015. ConfidenHal – DistribuHon prohibited without permission

Next Steps

▪ Download the IT Manager’s Guide to Con2nuous Delivery: xebialabs.com/it-‐manager-‐guide

▪ Learn more about XebiaLabs products: h3ps://xebialabs.com/products/

▪ Stay informed:

blog.xebialabs.com

@xebialabs

youtube/xebialabs

Ques2ons?

Thank you!

Building a Compelling Business Case for Continuous Delivery

Software

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