EMEA44660719 The Journey to Enterprise-Scale DevOps · 2019-04-02 · Overall, more than 60% of...

The Journey to Enterprise‐Scale DevOps:

Becoming DevOps Determined

DevOps: The State of Play in Europe

Organizations of every size and in every industry must adapt to new technologies, new players, new ecosystems, and new ways of doing business. IDC predicts that by 2021, at least 50% of global GDP will be digitized, with growth in every industry driven by digitally enhanced offerings, operations, and relationships. Today, survival of the fittest is linked not to size or strength but to the ability to change — to move quickly, adapt, seize opportunities, and be agile.

Digital transformation begins with applications that are built to deliver a truly digital-native experience. The digital economy's requirement to deliver high-quality applications at the speed of the business — or better still at the speed of the consumer — is the driving force to more rapidly develop, deploy, and update applications and services. Traditional application architectures, operations, and pace of development are completely inadequate in the digitized economy. One thing is for sure: lengthy, cumbersome, and restrictive software development and testing cycles are no longer acceptable.

With the current emphasis on speed to innovation and the delivery of superior customer experiences, agile and DevOps tools and approaches become the default for all enterprises. It's no longer about if organizations should adopt DevOps, it is now about getting DevOps right and scaling it across the enterprise. This entails taking the learnings from a more collaborative style of working and pushing this through into the wider organization.

DevOps represents the integration of application development, test, and IT operations at many levels, including culture, process workflows, and infrastructure management, as well as application creation, deployment, and delivery. DevOps is not a tool or a technology; it is the intersection of people, processes, and technology that aligns with business leadership, culture, and strategy. Importantly, DevOps is a methodology that joins together cross-functional teams across the business and IT (Dev, QA, Ops) to continuously deliver business solutions.

IDC's recent European DevOps and developer survey across 420 large European organizations demonstrates that DevOps delivers both business and technology benefits. These benefits extend beyond faster deployments and higher quality software; European enterprises now cite increased business agility, enhanced customer experience, and more effective business innovation as a direct result of the pivot to DevOps.

IDC Technology Spotlight

Sponsored by: Micro Focus

Author: Jennifer Thomson

March 2019

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THE JOURNEY TO ENTERPRISE‐SCALE DEVOPS: BECOMING DEVOPS DETERMINED

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So Where Are We in Terms of DevOps Adoption in the European Market?

Overall, more than 60% of European organizations now utilize DevOps, and a further 29% are planning to adopt such practices in the coming 12 months. Without doubt DevOps is mainstream. However, this said, the journey to enterprise-scale DevOps is only just beginning. Today, on average just under a third of enterprise applications (31%) are developed and deployed in this way. Even organizations that may report high levels of DevOps maturity are likely to be maintaining the bulk of mission-critical applications using traditional development and operations approaches. Aspirations to scale DevOps are high; organizations anticipate that an average of 43% of the application estate will be developed and deployed in this way by 2021.

Are DevOps Ambitions Realistic? What Needs to Change to Make This

Happen?

For some organizations this goal appears to be attainable, and we see several organizations start to excel on the journey to enterprise-scale DevOps. However, many organizations appear to be stuck in DevOps experimentation mode, where pockets of DevOps activity have spun up across the organization, but teams remain isolated and geographically dispersed, operate in traditional and hybrid IT environments (with demands for security, innovation, and availability), and deliver minimal business impact. To help set the right path to enterprise-scale DevOps, IDC classifies organizations into two distinct groups: DevOps Determined and DevOps Distracted.

The first group are the protagonists of DevOps, and these organizations have over 30% of the application estate that is developed and deployed using a DevOps methodology; the current average for this group is at just under 50%. The second group are those that are struggling to scale DevOps and to a certain extent can be described as DevOps Distracted; these organizations have 30% or less of the application estate developed and deployed in this way, with an average of just 16% today. This latter group represents approximately 60% of large European organizations.

What is clear is that the performance gap between these two groups of organizations is widening. IDC observes that European organizations that have fully embraced DevOps methodologies (and the resulting tools and technologies) are able to accelerate their ability to push out innovation at 50 to 100 times (or more) the frequency of traditional approaches. For instance, these organizations see code development and deployment volumes increase by over 50%, and lead times reduce by 95%. This underlines that to compete and thrive in a digitized economy requires organizations to turn the dial up toward becoming DevOps Determined.

The Transition to DevOps Determined

At IDC we have started to look at what sets the DevOps Determined apart, so that we can really understand what being DevOps Determined means (see Figure 1).

European organizations

that fully embrace DevOps

can accelerate the ability to

push out innovation at 50 to

100 times the frequency of

traditional approaches.

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Figure 1

Dimensions to DevOps Determined

Source: IDC, 2018

To be DevOps Determined requires more than determination; it requires a blueprint that consists of the following five elements:

1. Confidence to make the required organizational and cultural changes. The DevOps Determined have an overall organizational structure that embeds a DevOps approach, and are six times more likely to have cross-functional DevOps teams that take visible ownership of the development, testing, deployment, and maintenance of applications.

2. A phased approach to modern application architectures. Phased modernization of legacy applications to cloud-native architectures gains momentum with the DevOps Determined as they look to accelerate and scale IT transformation programs to adapt the business for greater agility.

3. Understanding and optimizing the flow of value. DevOps Determined organizations are more likely to understand where value is being added in the delivery pipeline and encourage teams to optimize the process that they control. This enables organizations to understand how fast they are moving, how much value is generated, and whether they are doing the right things. The DevOps Determined are three times more likely to have achieved continuous integration with automated build and release management.

4. Shifting to unified, scalable, and intelligent automation. DevOps Determined organizations are twice as likely to have an "automate everything" attitude and use automation tools across development and operations teams, with agile adoption for continuous iterations. The most mature are using multicloud technologies for integrated process automation, combined with predictive analytics.

5. Strong business leadership. DevOps Determined organizations have strong business leadership teams that are focused on optimizing the budgeting process. Executive leadership across business and IT act and communicate as one entity.

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Setting the Path to Enterprise‐Scale DevOps

Scaling DevOps requires an approach that adopts new KPIs spanning the cultural, business, process, technology, and talent/staffing changes required for any digital business transformation that utilizes DevOps. Essentially DevOps in digital requires:

Collaborative, agile teams

The shift to modern application architectures

Continuous integration and delivery models

The use and expansion of automated processes

Strong business leadership teams that optimize the budgeting process for technologies that drive products and innovation

By addressing each of these dimensions an organization can begin to assess its current state and readiness to leverage DevOps metrics supporting digital transformation. IDC has started to assess DevOps Determined and DevOps Distracted organizations in each of these dimensions. This allows us to draw reference from learnings and put a plan or blueprint in place to help organizations accelerate their journey to enterprise-scale DevOps.

1. Organization: Culture and Collaboration

Development culture is where both sets of organizations have made most progress. 45% of the DevOps Determined have highly collaborative and agile teams working to an MVP (minimum viable product) ethic with continuous customer feedback loops in place. This is only just in front of the DevOps Distracted with 38% (see Figure 2). Larger differences start to emerge when we explore the overall approach to collaboration across the organization. Currently, only a fraction of the DevOps Distracted have established and achieved shared ownership and accountability for delivering outcomes across DevOps teams. It is critical to create shared accountability, so that everyone is on the same page and measured equally. This also helps establish trusting relationships and empathy across teams to improve employee satisfaction. Figure 2

Organization Dashboard: Development Culture

Source: IDC, 2018

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2. Hyper‐Agile: Modern Application Architectures

We are experiencing a revolution in what applications are and how they are built, deployed, and updated. IDC refers to these new kinds of apps as "hyper-agile apps" that are highly modular, distributed, continuously updated, and leverage cloud-native technologies such as containers and serverless computing. We are starting to see an increasing percentage of apps developed using these technologies and methods, built on microservices architectures. In this context, IDC sees a coming application explosion. We estimate that in the region of 500 million 1st Platform (mainframe) applications have been built in the past 40 years (this number refers to installed instances and not unique apps). However, with the acceleration to cloud and microservices architectures, IDC estimates that in the next four years approximately 500 million new "logical" applications will be built worldwide — including around 100 million in EMEA.

It is important to note that this "new world of apps" will not remain isolated from enterprises' legacy core applications — it will increasingly absorb them. While IDC predicts almost unanimous use of hyper-agile app approaches for net-new development by 2022, it is important to note that phased modernization of legacy applications to cloud-native architectures gains momentum as enterprises look to accelerate and scale IT transformation programs. This is particularly the case for DevOps Determined organizations in contrast to a more radical attitude to application modernization from the DevOps Distracted that prefer to heavily leverage cloud-native technologies (see Figure 3). This suggests an impulsive, leapfrog approach by these organizations as they play catchup.

Figure 3

Application Modernization Approach

Source: IDC, 2018

To support future development and deployment needs European organizations are opting for a best-fit cloud strategy. When examining the approach that the DevOps Determined are taking we find that 55% of organizations prefer to rely on a multicloud strategy to support future DevOps needs. Consequently, we see these

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organizations shift gears in terms of multicloud automation and orchestration capabilities (see Figure 4).

The focus is on standardization of container orchestration, automated infrastructure provisioning, and provision of developer self-service platforms. This is in stark contrast to the DevOps Distracted, where for a third of organizations individual teams rely on limited provisioning capabilities. In this situation, many processes are manual; there tends to be poor integration between dev and ops; a lack of self-service causes longer lead times; and lack of operational visibility more often than not leads to poor decision making.

Figure 4

Hyper‐Agile Dashboard: Multicloud Automation and Orchestration Capabilities

Source: IDC, 2018

3. Continuous Delivery: Optimizing the Flow of Value

From project initiation through automating the deployment pipeline and testing, change management and continuous delivery serve as critical foundational elements for DevOps. The continuous delivery pipeline represents the workflows, activities, and automation needed to guide a new piece of functionality all the way from ideation to the release of value to the end user. With the coming app explosion the ability to speed up time to market while improving quality is critical.

Research suggests that the DevOps Distracted are far behind their peers in optimizing the delivery pipeline and therein the flow of value. Close to half of DevOps Distracted organizations do not have an automated deployment process in place, and only a fraction have achieved continuous integration with automated build and release management. This is in comparison to one in five DevOps Determined organizations (see Figure 5). For releases to become more reliable, DevOps teams should be able to release software at any moment; investment in automated deployment equates to fewer surprises when deploying to production.

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Figure 5

Continuous Delivery Dashboard: Approach to Continuous Integration

Source: IDC, 2018

4. Automation: Smart, Measurable, and Scalable

Automation strategies go hand in hand with the journey to continuous delivery. Automation of manual steps is essential to overcome issues related to increasing number of defects, latency, and rework. Automation of everything from compiling and building a code change, to deploying and configuring software, to testing the software is increasingly essential.

DevOps Determined organizations have a laser focus on getting past islands of automation that have spun up across various pockets of the organization toward — in an ideal world — a "pipeline of pipelines" scenario.

Of course, there is no organization that has one single uniform enterprise delivery pipeline in place; in an ideal world we could think of something that is perfectly optimized, integrated, automated, and agile, with security and analytics embedded (see Figure 6). The bottom line is that organizations must get past islands of automation that have spun up (across dev, test, deploy, configuration, monitoring, and so on) if they are to set themselves up for multicloud readiness and provide the base for business agility.

Figure 6

Beyond Islands of Automation

Source: IDC, 2018

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Accelerating automation becomes a clear focus, as this provides the potential to combine quality and business value with speed. Asks from automation are no longer about just driving down costs and delivering ROI. Instead, success factors now account for customer experience, product reliability, and speed. The key to success is the ability to measure automation across the application life cycle.

The DevOps Determined focus on delivering business value and superior customer experience through unified and measurable automation that integrates and connects all activities across the delivery pipeline. Over a quarter of the DevOps Determined have an attitude of "automate everything" and automation tools are used across both development and operations; this compares with just 9% of the DevOps Distracted (see Figure 7).

Figure 7

Automation Dashboard: Approach to Automation

Source: IDC, 2018

Research demonstrates that DevOps cannot happen in isolation. Scaling DevOps requires progress across multiple segments of the software delivery pipeline: planning, governance, developing, testing, delivering, deploying, securing, operating, and managing. It is important to understand that DevOps is a journey, and every organization's journey will be different. There is no fixed endpoint to enterprise-scale DevOps, as organizational needs and requirements will constantly change — the important point here is that through DevOps, organizations will be able to establish working practices that sustain continuous improvement.

The Micro Focus Approach

Micro Focus positions itself to help customers run and transform their businesses and innovate faster with lower risk as they pivot to digital transformation. There are three core principles that underpin this strategy:

1. Bridging the old and the new enabling mission-critical applications and data to continue to be leveraged across the organization so that customers can increase longevity and maximize ROI.

2. Building innovative features and capabilities that are enterprise-grade and scalable into its core products so that customers do not have to switch and can evolve their IT landscape.

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3. Providing customers with choice in deployment and commercial models so that they can select what works for their enterprise and budget.

These principles are embedded in four focus areas that guide how Micro Focus aims to solve customer problems and go to market — Enterprise DevOps; Hybrid IT Management; Security, Risk, and Governance; and Predictive Analytics.

Enterprise DevOps

Micro Focus' executive management team has placed a significant amount of investment and focus on fine tuning and shaping its Enterprise DevOps solution portfolio. The Enterprise DevOps value proposition pivots around the ability to build and deliver better software faster, focusing on how organizations can benefit from utilizing DevOps across hybrid IT landscapes. This fits well with current market trends outlined in the previous section of this paper and draws on Micro Focus' heritage and expertise. Micro Focus has taken the opportunity to evaluate what DevOps transformations need, how its experience can match to that need, and how to deliver integrated solutions. Enterprise DevOps pulls on the strength and heritage of the existing Micro Focus portfolio (see Figure 8).

Figure 8

Enterprise DevOps

Source: Micro Focus, 2018

Overall, Micro Focus aims to help customers scale DevOps practices across hybrid IT, automate and orchestrate continuous delivery pipelines from mainframe to mobile, and provide actionable insight with the use of analytics to securely deliver high-quality software and services faster. In a bid to ensure that enterprise DevOps transformation is a success, Micro Focus supports organizations in four ways:

1. Build on what works

2. Reduce operational friction

3. Boost business confidence

4. Deliver better business outcomes

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1. Tool Chain Automation and Integration: Build on What Already Works

As we have seen and continue to witness, the speed of the digital economy is forcing all organizations to innovate quickly by embracing new technologies and business models. However, it is important to remember the significant investments that have already been made to provide an enterprise infrastructure that is secure, compliant, and lowers risk. Yes, organizations should pivot toward the "new" but as IDC research demonstrates scaling DevOps does not mean ripping and replacing current tools or infrastructure. It is more pragmatic to take a phased modernization approach that leverages past investments, with a focus on integration and measurable automation.

The Micro Focus strategy supports the notion of building new capabilities on what already works by bridging core investments with new technologies and practices.

For instance, World Wide Technology (WWT), a U.S.-based technology solution provider, was faced with rapid expansion, which started to seriously challenge its speed to market.

"If you look at our IT department, 50% of the people weren't even there three years ago, so the only way that we can scale is through technologies, which is why we've gone aggressively into agile and DevOps methodology. We need tools that all

the different people on the team can use so, for example, you no longer have QA people just using a QA tool."

Quality assurance manager, WWT

WWT opted for ALM Octane, Micro Focus' application life-cycle management platform, as it easily integrated with all its other tools. Speed and improved time to market were WWT's instant advantages of using ALM Octane. The company has been able to take some of its development groups from one month to production down to one week and the company believes it will get that down to one hour.

Micro Focus is helping organizations automate the DevOps toolchain while reducing time to value, risk, and cost. The message here is: why rip and replace what already works, when you can scale DevOps practices across proven IT assets? Micro Focus has several solutions (spanning from those focused on accelerating application delivery, to those that tackle mainframe modernization) that interoperate with third-party and open source products, allowing organizations to scale DevOps faster to optimize existing deployment pipelines.

2. Value Stream Optimization: Reduce Operational Friction

Delivering value to customers at the "speed of business" requires aligning business needs with the software delivery process. This includes removing constraints, automating manual work, and increasing stakeholder visibility across all enterprise value streams. Micro Focus recognizes this, and its Enterprise DevOps solutions focus on supporting organizations with the optimization of the entire value stream, accelerating value flow, and providing real-time visibility to enable organizations to make fast and informed decisions.

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For many organizations measuring value is difficult due to the disconnect between the tools and teams that plan, build, deliver, and operate products. Accelerating value flow is a real challenge for Orange Labs, the R&D division of Orange SA. Due to competitive pressures, delivering applications rapidly is the most important aspect of the software development process in the telecommunications industry.

"We're producing releases faster. We've automated testing and we've introduced continuous integration and continuous delivery into every project. Furthermore, all projects employ a

single ALM platform making for easier management and providing dev and test teams with access to the same levels of

agility." Orange Labs

Orange Labs is now clearly heading toward a full DevOps environment. When it conducts a product build, it now generates releases several times a day; its goal is to move everything from its previous ALM solution to ALM Octane.

Micro Focus helps organizations make sense of the data overload from islands of tools to align demand streams with business strategy (as in the case of Orange Labs). Tools such as Project and Portfolio Management (PPM) and ALM Octane help organizations to map and visualize critical aspects of the software delivery life cycle, from planning to financials, people, and capacity. This helps organizations uncover bottlenecks, provide governance, and ensure stakeholder alignment.

Governance issues and visibility is something that many companies struggle with, particularly when embracing more collaborative business models. A good example here is ICBC Turkey Bank AŞ, a subsidiary of ICBC Group. Turkey's banks are regulated by the Banking Regulation and Supervision Agency (BRSA), which conducts process audits and COBIT IT audits every two years. One of the most critical elements of BRSA audits concerns code integrity, the security of the code during its life cycle from development to production. ICBC's challenge was that the development process and the demand life cycle did not communicate with each other so were not synchronized and this could lead to code being changed and compromised. ICBC worked with its local technology partner to build a solution that was a mix of Micro Focus tools (PPM, ALM, Service Manager) and DevOps practices.

"We can now see all the life-cycle links and relationships between demand and what is happening in the application and system sites. We never lose track of what happens with

the code and the application." ICBC

3. Quality and Security by Design: Boost Business Confidence

To remain competitive, organizations need both speed and quality; this means shifting to a culture where quality and security are engineered into everything. As new capabilities are developed to support the digital transformation of a business, companies must ensure that quality and security are embedded into the process from the very start — in IDC's words, achieving quality/security by design.

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Engineering quality and security into every application is the Micro Focus mantra to boost business confidence and plays to the strength and heritage of a number of Micro Focus solutions. Micro Focus positions its solutions to enable organizations to shift "quality and security" left to prevent potential bottlenecks and problems before they occur. Solutions span functional testing for continuous testing and integration, intelligent test automation, performance testing, and security testing.

Customers report several benefits from leveraging these solutions, such as the ability to reduce the time fixing defects by up to 50% and achieve up to a 30% reduction in production issues with ALM Octane, reduce application defects by up to 75% with LeanFT, and eliminate performance issues to confidently deploy new services with LoadRunner.

Benefits, of course, vary by customer use case. One customer example is Tokio Marine North America Services (TMNAS), which supports its Quality Center of Excellence with Micro Focus solutions. TMNAS has realized the following benefits:

"With Micro Focus solutions, we have built a foundation to introduce a continuous integration testing and deployment cycle in the near future. Aspects of this are in place and we

have already shortened the time it takes to release applications and have reduced our test execution time by an

incredible 80%." TMNAS

4. Enable Insight: Deliver Better Outcomes

An important piece in the DevOps puzzle for Micro Focus is the ability to allow organizations to deliver better outcomes, and this requires insight, visibility, and feedback. Within its Enterprise DevOps portfolio Micro Focus provides solutions that enable continuous feedback and actionable insight across the entire continuous delivery pipeline. For Micro Focus, measuring a DevOps journey just on productivity and outputs is not an effective strategy. The aim with its solutions is to improve cycle times, maintain peak application performance and availability, and ensure better business outcomes.

IDC research demonstrates customers increasingly demand a high-touch experience, and this requires instant interaction and iteration built into development and operational cycles, enhanced visibility with better embedded controls, and the ability to ingest customer feedback. The required collaboration and transparency required for DevOps often means that legacy tools don't provide the necessary integrations, visibility, or dashboards.

Micro Focus helps its clients achieve visibility through the implementation of a system that provides continuous feedback harnessing real-time data and key performance indicators (KPIs) across the DevOps toolchain. The aim is to help organizations shift to continuous operations where speed and reliability become one. Solutions include Service Manager, Service Management Automation (SMA), and Operations Bridge, a containerized IT operations monitoring solution. The latter solution addresses scale and complexity, and provides integration with public clouds, IoT devices, and containerized applications, providing organizations with

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multicloud management for large-scale modern environments. SMA is a machine-learning-based service desk that can be delivered on-premise or in the cloud, providing a digital self-service experience for IT and non-IT services. Several customers are opting for SMA as they look to accelerate response times.

Sberbank, the biggest bank in Russia, is a good example of a customer that chose Service Manager to meet new business-driven demands. The bank was tasked with going beyond standard banking services and accelerating the speed of change, to respond to market disruption from new competitors such as Google and Apple Pay. As a result, the bank implemented DevOps practices to meet increasing demands from customers for new features and changes to be delivered every two weeks. Sberbank-Technology has now cut feature release cycles from 2.5 months to two weeks and has seen a 30% increase in staff productivity. Service Manager has been implemented and is being used by all IT groups as well as the business back office. It has an end-user portal for all requests and uses Universal CMDB at Sberbank's datacenter — the largest in Russia. Service Manager's Agile and DevOps-enabled automation is ensuring fast and error-free 24 x 7 availability, with complex service request times cut from 2 weeks to 1 to 2 days.

Essential Guidance

DevOps Determined organizations take a critical and pragmatic focus on changing their culture, people, technologies, processes, and business strategy to increase both their competitive position and revenue. To turn the dial up to become DevOps Determined, organizations should:

Create and build an inclusive and collaborative culture with a convergence in both KPIs and strategy across IT and the business.

Work on a phased modernization approach to hyper-agile application architectures. A "big bang" approach can be risky and, in IDC's experience, has not brought the expected results.

Focus on unified automation. Automation and shared tooling are essential ingredients for successful DevOps. Moving forward, integration of AI and automation will be critical to DevOps processes; organizations must focus on the ability to measure automation across the application life cycle.

Build cohesion across the business and IT. This requires that executive leadership in both the business and IT act and communicate as one entity.

Focus on visualization and dashboards to drive communications and measure progress with metrics.

Ensure that customer feedback mechanisms are built across the software delivery pipeline to drive innovative new product development.

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EMEA44660719 The Journey to Enterprise-Scale DevOps · 2019-04-02 · Overall, more than 60% of...

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