A Guide to Monetizing This Transformational Market Trend

Transcription

1 A Guide to Monetizing This Transformational Market Trend DECEMBER 7, 2016 Alex Brown CEO

2 ABOUT 10 th MAGNITUDE Industry-leading cloud services firm 100% Azure Born in the cloud Microsoft Gold Cloud Platform Competency Chef Certified Partner Physically in Chicago and Dallas; our clients are located around the globe 2

3 AGENDA What is DevOps? Identifying DevOps opportunities DevOps engagement types and structures Organizing for DevOps Finding DevOps partners 3

4 WHAT IS DEVOPS? DevOps is all about adjusting: 1. Software development and deployment processes 2. Organizational interactions so that software and infrastructure can be changed, delivered and deployed quickly and easily. 4

5 THE DEVOPS MARKET OPPORTUNITY According to Gartner, organizations spent $2.3 billion on DevOps tools in 2015 We can estimate that the services market opportunity is in the billions of dollars as well 5

6 THE ROI OF DEVOPS For Solution Providers Access to billion-dollar market opportunity Average engagement size potential >$40,000 Ability to deliver transformational benefits to customer Door opener for additional IT services engagements For Customers Increased software delivery speed Improved customer response time Reduced infrastructure management errors Reduced organizational friction 6

7 THE THREE PILLARS OF DEVOPS Infrastructure Automation Continuous Integration/ Continuous Delivery Monitoring & Auto-Remediation Use automation tools like Chef to treat infrastructure as code Create stored, incrementally versioned, repeatable environments Write constant, small software changes and deliver frequent iterations Replace expensive, inflexible, high-risk monolithic versions Change Management Ensure applications and servers perform properly, scale on demand and adjust automatically Free up IT resource time to focus on higher-value projects 7

8 IDENTIFYING DEVOPS OPPORTUNITIES How automated is customer s IT organization currently? Low automation indicates opportunity for Infrastructure Automation and/or CI/CD How long does it take customer to deliver a software change? If it takes weeks or months, that s an opportunity for CI/CD How long does it take customer to make an IT infrastructure change? If it takes weeks or months, that s an opportunity for Infrastructure Automation How long does it take to find a problem in customer s application(s)? If the answer is more than a week or only when my user tells me, that s an opportunity for Monitoring & Auto-Remediation Is customer s IT department more of a cost center or revenue driver? If it s a cost center, that s an opportunity for all three DevOps pillars 8

9 DEVOPS ENGAGEMENT EXAMPLE #1 STRATEGIC CONSULTING Client: Leading provider of workflow automation software First contacted 10 th Magnitude through our website based on our mutual Microsoft partnership CI/CD Gap Analysis Evaluate the client s existing deployment model, build process and testing mechanisms to determine a recommended strategy to enhance these functions moving forward Staffing: Sr. Architect: 130 hours Executive Technical Oversight: 8 hours Solution Delivery Manager: 24 hours Total Engagement Size: $40K Deliverables: Recommendations and best practices guidance for each target work stream Architecture and pipeline recommendations Implementation roadmap Executive briefing Assessment Process 3 Weeks 9

10 DEVOPS ENGAGEMENT EXAMPLE #2 TOOL IMPLEMENTATION, TRAINING & SOLUTION DESIGN Client: One of the fastest growing electricity and natural gas providers in the United States Found 10 th Magnitude through our marketing around Chef expertise and partnership Initial Engagement: Chef Training and POC Assisted the client with Chef adoption Delivered Chef training for the client team and then conducted a Chef proof of concept (POC) Staffing: Sr. Chef Consultant: 180 hours Project Manager: 52 hours Total Engagement Size: $44K Deliverables: Training workshop Base Chef cookbook for a new LOB application Successful DevOps engagement created strong relationship with client s IT team, leading to follow-on work in Microsoft Azure SQL and Disaster Recovery implementation throughout 2015/2016 Current Engagement: CI/CD Implementation Assist the client with CI/CD adoption, including technical implementation Staffing: CI/CD Architect: 135 hours Executive Oversight: 12 hours Delivery Management: 18 hours Total Engagement Size: $47K Deliverables: CI/CD Pipeline Design & Implementation Best Practices Recommendations Training Workshop 10

11 DEVOPS ENGAGEMENT EXAMPLE #3 TOOL IMPLEMENTATION Client: Software as a service (SaaS) provider that offers a health management platform for consumers Found 10 th Magnitude through local tech community connections Chef Discovery July 2015 Assess the client s current environment and develop a timeline and implementation plan for Chef Staffing: Sr. Chef Consultant: 40 hours Project Manager: 40 hours Total Engagement Size: $15K Deliverables: Documentation of current existing and desired future states Planning document with detailed path for Chef implementation Chef Implementation Aug. Sept Provide guidance, direction, implementation and support for a proof-of-concept deployment of Chef Staffing: Two (2) Sr. Chef Consultants: 352 hours Two (2) Chef Consultants: 504 hours Project Manager: 128 hours Total Engagement Size: $150K Deliverables: Proof-of-concept Chef cookbooks DevOps Staff Augmentation Oct Jan Provide an experienced DevOps resource to work under the direction of client s IT team Staffing: Infrastructure Engineer: 560 hours Total Engagement Size: $104K Deliverables: No specified deliverables tasks were performed based on day-to-day direction provided by client s IT management 11

12 ORGANIZING FOR DEVOPS Delivering DevOps solutions requires resources across multiple disciplines: IT Infrastructu re Application Development Strategy & Organizatio n Remove barriers across these disciplines and encourage employees to work together It s not just about having tool-based skill sets; it s about understanding larger concepts and strategies Look for people who are eager to learn and get involved in the DevOps community 12

13 THE DEVOPS COMMUNITY Getting involved in the DevOps community is critical for business development, recruiting and employee engagement DevOps Days DevOps Meetups Vendor Conferences Community-organized, techfocused conferences held in cities around the world Most cities already have userorganized DevOps Meetups. If yours doesn t, take the opportunity to start one! Top vendor conferences include ChefConf, PuppetConf and Jenkins World. These conferences go beyond tech training sessions and vendor expos to focus on building user communities. 13

14 DEVOPS PARTNERS There is no one vendor or category of tools that encompasses all of DevOps Look for partners that have a vision for how they fit into the larger DevOps opportunity Leading DevOps vendors to evaluate include: Infrastructure Automation Public Cloud Platforms CI/CD Tools App Dev Tools Collaboration Tools Monitoring and Remediation Chef Puppet Ansible HashiCorp (Terraform) Azure AWS Google Atlassian (JIRA) Jenkins Git Visual Studio Xamarin Slack HipChat New Relic Splunk Stackify 14

15 RECOMMENDATIONS Choose a DevOps pillar to focus on: Infrastructure Automation CI/CD Monitoring & Auto-Remediation Decide on the delivery model you will use to monetize that focus: Strategic Consulting Implementation & Tool-Based Services Managed Services Build a cross-functional organization of engaged learners to staff the chosen delivery model 15