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

2
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

3
Agenda

▪ IntroducHon

▪ Bridging
the
SoGware
Delivery
Divide

▪ Building
a
Compelling
Business
Case
For

ConHnuous
Delivery

▪ Q
&
A

4
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.

5
ConnecHng
the
dots
for

Con2nuous
Delivery

at
enterprise
scale

VISIBILITY

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

6
VISIBILITY

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

7
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

8
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…

9
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

10
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

11
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
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Develop,
Commit & Build
Reduced
manual
effort
Idea
proposed
Understand
Needs &
Invent
Solutions
Deploy
Solution
Release
Decision
20-80% of Production Incidents Are Due to Configuration Errors
Production
TestingDevelopment
Manual environment configuration leads to “drift”.
Drift causes failures.
Standardization
(“infrastructure as code”) +
automation eliminates “drift”.

Idea
proposed
Understand
Needs &
Invent
Solutions
Deploy
Solution
Release
Decision
Benefits of Standardizing Environment Provisioning
Functional
Testing
Production
Support
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Develop,
Commit & Build
Fewer
Production
Incidents
Reduced
manual
effort
Reduced time spent waiting
2
1
3
(benefit based on actual effort reduction)

Functional
Testing
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Develop,
Commit & Build
Reduced
manual
effort
Idea
proposed
Understand
Needs &
Invent
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

Develop,
Commit & Build
Idea
proposed
Understand
Needs &
Invent
Solutions
Release
Decision
Production
Support
Functional
Testing
Load,
Performance,
Security, …
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

Develop,
Commit & Build
Idea
proposed
Understand
Needs &
Invent
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
Load,
Performance,
Security, …
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
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Idea
proposed
Understand
Needs &
Invent
Solutions
Deploy
Solution
Release
Decision
Production
Support
Develop,
Commit & Build
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
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Deploy
Solution
Release
Decision
Production
Support
Idea
proposed
Understand
Needs &
Invent
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
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Deploy
Solution
Release
Decision
Idea
proposed
Understand
Needs &
Invent
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 days7 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
Understand
Needs &
Invent
Solutions
Functional
Testing
Deploy
Solution
Customer
Value
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Release
Decision
Develop,
Commit & Build

Production
Support
Functional
Testing
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Develop,
Commit & Build
Reduced
manual
effort
Idea
proposed
Understand
Needs &
Invent
Solutions
Deploy
Solution
Release
Decision
Composite Applications Make Coordination Challenging,
Delays Likely
Source: Forrester Research, Inc.111102
Social media
and search
Systems of engagement
(mobile, web, rich client)
Cloud-based
systems of record
Traditional
systems of record
In-store point-of-sale
systems
Cloud-based services provided
by third parties

Production
Support
Functional
Testing
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Develop,
Commit & Build
Reduced
manual
effort
Idea
proposed
Understand
Needs &
Invent
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
Load,
Performance,
Security, …
Testing
UAT/
Exploratory
Testing
Develop,
Commit & Build
Reduced
manual
effort
Idea
proposed
Understand
Needs &
Invent
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
kbittner@forrester.com
@ksbittner

32
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

✔

33
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

Building a Compelling Business Case for Continuous Delivery

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