Recently, for my column over at FierceDevOps, I opined about doing ROI for DevOps. This topic comes up a lot as I note in my Pivotal post on the topic.
Here’s a summary/excerpt of the three ways of thinking through it:
1.) Bottoms-up ROI: We know everything and have put it in this spreadsheet
…if you have a good handle on the costs during some period of time where you were doing DevOps, and the gain that resulted from that period of time, you could come up with a bottoms-up ROI analysis. I think it’ll be somewhat dicey since it’s so hard to attribute costs and gains directly to DevOps but hey, it’s better than either telling people they’re asking the wrong question or its mute cousin: nothing.
2.) Were the efforts to change worth it? That is, DevOps is all cost
…if you want to run the numbers on something like “they tell me it will take three months and $50,000 in training and consultants to ‘do the DevOps'” this might satisfy your ROI craving. Again, you’ll need to have a pre-existing ROI at hand to simply plug your DevOps costs into.
3.) Pain avoidance and remediation
In the “DevOps is all cost” ROI scenario, we avoided ascribing gain to changing to DevOps. Again, while this is overly simplified, the deliverables of DevOps are to provide a continuous delivery process for your product and ensure that your product has excellent uptime. How could you account for the gain of those two desirables? You could create a way of assigning value to the knowledge you gain from weekly iterations about how to improve your product. You could also calculate the savings from avoided downtime.
Check it out, and tell me how you’ve been answering that question.
Just uploaded 4 new photo(s) on Flickr. http://www.flickr.com/photos/cote/
“Twenty years ago, 61 percent of the Internet’s 35 million users were based in the U.S. Today, the U.S. accounts for less than 10 percent of the 3 billion connected people worldwide. There are now 650 million Internet users in China (compared with 280 million in the U.S.) There will be as many as 550 million connected consumers in India by 2018 (more than double the current number).”
The Need for U.S. Digital Engagement
Once we settle the important topic of lawn management in Texas, we discuss the circus around HP dress codes (and the actual lack of them), HP/Stackato, GitHub and the ALM market, and the odd fate of the GPL in commercial software land.
With Brandon Whichard, Matt Ray, and Coté.
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- If you like video, see this episodes’ video recording.
- Grass in Texas.
- Amazon turns a profit Amazon continues to rip shit up – “Last year, Amazon CEO Jeff Bezos said AWS was on its way to becoming a $5 billion business. With revenue of $3.389 billion in the first six months of 2015, AWS is now on course to becoming more of a $6 billion business — and if sales continue to increase at this pace in the next six month, $7 billion is definitely a possibility.”
- Back of the Envelope Podcast, RIP
- Google’s Sri Lanka balloons
- Big changes at Citrix.
- What’s up with CloudStack? Matt Ray says licensing in it’s past.
- The GPL Paradox.
- HP brings a dress code, but then clarifies that they don’t have one, actually.
- In more serious news, HP buys Stackato. No socks in a professional context.
- GitHub raises $250 million – Kinda obvious quotes and commentary, but that’s a lot of money. “The funding reflects the growing importance of software to all businesses, not just technology companies, and a greater comfort with collaborating on software development and sharing computer code.” Donnie’s 140 char Analyst Note.
- IDC’s 2014 ALM market-sizing – $1.1 billion by 2017. So all developer tools might be like $4-5bn MAX…?
- Twilio raises $130 million – “Fidelity and T. Rowe Price drove the latest funding round.”
- Coté recorded a Kea Company podcast recording, following up on his piece on the industry analyst market. The panel had Phil Fersht from HfS, William Tincup, and Horace. Probably out in a week or so?
BONUS LINKS not covered in show
“With this agreement, ActiveState loses the product it’s best known for. Copeland wrote that ActiveState will continue as a company, focusing on other products including ActivePerl, ActivePython, AvtiveTcl and Komodo IDE. He will stay with ActiveState rather than join HP. ”
Next step in HP’s Helion transformation: Buy Stackato
“The site reports it hosts 25 million source code repositories, and has 10 million registered users and 33 million unique monthly visits.” No word in the article in revenue or enterprise sales.
Git a load of this: GitHub now valued at $2 billion
Across “100 C-Level execs” usage at their company: “When it comes to the actual usage of open source software (OSS) in large enterprises, only 21% of them use it across the enterprise and 25% have deployed it in a business unit. The other 54% are either at the planning phase (21%), or use it for Internet-related programs (13%) or are running a pilot program to evaluate it (20%)”
Open Source Usage in Large Enterprises