🗂 Link: IT departments spend millions tackling performance issues in complex IT

The vast majority of CIOs expect to deploy new technology stacks in the next 12 months. Most CIOs said they are already using or are planning to deploy microservices (88%), containers (86%), serverless computing (85%), PaaS (89%), SaaS (94%), IaaS (91%) and private cloud (95%) in the next 12 months.

CIO responses captured in the 2019 research indicate that lost revenue (49%) and reputational damage (52%) are among the biggest concerns as businesses transform into software businesses and move to the cloud.

Source: IT departments spend millions tackling performance issues in complex IT

Notes on the 2019 DevOps Report

Some quick notes and callouts from this year’s 2019 DevOps Report:

  • Four key metrics: lead time, deployment frequency, mean time to restore (MTTR) and change fail percentage.
    • Med, High, and Elite all have a change fail rate of 0-15%. So, expect 15% change fail as benchmark worst case to shoot for…?
  • Demographics: 30% are devs, 26% “DevOps or SRE” – [so, lots of ICs self-evaluating]. 16% “managers,” and then it goes down from there…
  • Top industries are Technology at 38% and FinServe at 12%. Retail is 9%.
  • Mostly North American (50%)and Europe (29%)
  • Org. size: 100-499 (21%), 500-1,999 (15%), and 10,000+ (26%)
  • “A key goal in digital transformation is optimizing software delivery performance: leveraging technology to deliver value to customers and stakeholders.”
  • [I’m not sure if age of company, and, thus, an indication of governance and tech debt, is tracked. With 38% being tech companies, it’d be good know how young they are. But, most FinServ companies are large and old (unless it was mostly FinServ startups!).
  • Very prescriptive this year, a maturity model to put a strategy in place, etc.
  • A lot on paying down tech debt:
    • Bounded contexts, APIs, SOA and microservices. Using and testing out of team services without having to work with that team (sort of like mocking for runtime).
    • Also: “Teams that manage code maintainability well have systems and tools that make it easy for developers to change code maintained by other teams, find examples in the codebase, reuse other people’s code, as well as add, upgrade, and migrate to new versions of dependencies without breaking their code”
  • Very little prod chaos monkey stuff: less than 10% across the board.
  • CABs still bad: those that have them are 2.6x more likely to be low performers.
    • Instead, do peer reviews and automate governance: “peer review-based approval during the development process. In addition to peer review, automation can be leveraged to detect, prevent, and correct bad changes much earlier in the delivery lifecycle. Techniques such as continuous testing, continuous integration, and comprehensive monitoring and observability provide early and automated detection, visibility, and fast feedback. In this way, errors can be corrected sooner than would be possible if waiting for a formal review.”
    • CABs should instead focus on process and practices change: ” the CAB should focus instead on helping teams with process- improvement work to increase the performance of software delivery. This can take the form of helping teams implement the capabilities that drive performance by providing guidance and resources. CABs can also weigh in on important business decisions that require a trade-off and sign-off at higher levels of the business, such as the decision between time-to- market and business risk.”
    • [I’m pretty sure that was the original point, esp. when you look at RUP and ITIL stuff: setting the process to be used. Tooling to automate governance wasn’t really available. Policing it those prescriptive processes took over as it always does. And I’m not sure there are industry standard frameworks to use there yet either. There must be lots of hand-crafting.]
    • “Survey respondents with a clear change process were 1.8 times more likely to be in elite performers.” – [as ever, garbage in, garbage out.]
    • The people who work on governance are not the ones who can actually do the coding to automate it: “only our technical practitioners have the power to build and automate the change management solutions we design, making them fast, reliable, repeatable, and auditable…. Leaders at every level should move away from a formal approval process where external boards act as gatekeepers approving changes, and instead move to a governance and capability development role. After all, only managers have the power to influence and change certain levels of organizational policy. We have seen exponential improvements in performance— throughput, stability, and availability—in just months as a result of technical practitioners and organizational leaders working together.”
  • This is a different measure of “productivity”: “Productivity is the ability to get complex, time-consuming tasks completed with minimal distractions and interruptions.”
    • It doesn’t track amount of work done, but the environment people are working in…?
  • Tools use is all across the board: DIY stuff, COTs, open source, etc. [This sort of excludes the IaaS and other runtime layers, focusing on just CI/CD and test automation]
  • “Multi-tasking” across roles and projects might be OK: “we cannot conclude that how well teams develop and deliver software affects the number of roles and projects that respondents juggle.”
  • Being able to find things and ask questions [and, presumably, getting answers!], having search, is important.
  • From my read (slide 74), the methods of transforming orgs are all across the board with Big Bang and Training Center as the only low ranked ones. Communities of practice are high, part of the Spotify model.
  • Pg. 75 tries to derive some advice nonetheless: mostly that separate education and training groups don’t work well/widely, that grassroots is used a lot, and that communities of practice are good, as well as PoCs that get cloned.
  • [This is an instance where the high level of individual contributors in the answers might have an effect. They see the positive change in their own team, but don’t have the big picture view to see if the practices scale up to 1,000’s of people. On the other hand, they might follow the “my congressperson is perfect, all the other ones are corrupt and terrible” pattern. Also, those 5,000+ people orgs struggle.]
  • [We still don’t know how to change an engine in flight.]

🗂 Link: IDC Survey Finds Artificial Intelligence to be a Priority for Organizations But Few Have Implemented an Enterprise-Wide Strategy

An IDC “survey of global organizations that are already using artificial intelligence (AI) solutions found only 25% have developed an enterprise-wide AI strategy.”

But:

“More than 60% of organizations reported changes in their business model in association with their AI adoption.”

Source: IDC Survey Finds Artificial Intelligence to be a Priority for Organizations But Few Have Implemented an Enterprise-Wide Strategy

Link: Digital is helping Millennials shop around for auto coverage

That’s according to TransUnion’s “Auto Insurance Shopping Index,” which found that 21.7% of consumers shopped for personal auto insurance in 2018, versus 20% in 2017. With 44% of their cohorts shopping, Millennials and Generation Z consumers shopped for auto insurance than other ages.

The reason? Digital distribution and marketing seem to be huge drivers to increase shopping for Millennials. According to David Drotos, VP of insurance solutions at TransUnion, “Technology is fueling the experimentation and development of new business models for insurance that cater to the Millennial lifestyle.”

Source: Digital is helping Millennials shop around for auto coverage

Link: Big three Dutch banks trail rankings, cost and service and issue

While 94% of the 14,000 people in the survey said they used internet banking and 66% used mobile banking apps, ING customers were unhappy about the decision to phase out the use of ‘tan’ codes for approving payments and require mobile approvals instead.

Read more at DutchNews.nl:

Source: Thousands of rejected migrants unable to return to their home countries
Big three Dutch banks trail rankings, cost and service and issue

Link: It’s Time To Transform Insurance Claims

Protecting customers in times of duress is the basic purpose of insurance, and yet only 57% of US online adults feel confident that their insurance company will treat them fairly when they have a claim.[1] Poor claims experiences have immediate business effect. In the UK, 71% of property & casualty insurance customers would consider switching providers if they had a bad claims experience.[2]

Source: It’s Time To Transform Insurance Claims

Containers are mostly just for large enterprises

Here, you see a shift in intentions to use containers, a pretty large one: less people are planning to use them. To me, containers are mostly useful for custom written software, not business application workloads.

So, several years ago, containers seemed like a cheaper VMware strategy where you just generically throw your apps in and reduce costs.

But, that doesn’t really work. Apps have to be container friendly, plus, you know, you have to manage your new container orchestration thing – figure out kubernetes. Even that has only been a thing (an option a generic IT team would know about and find viable enough to consider) for about the past year.

(I mean, maybe, if you soften the idea that kubernetes is a platform for building platforms and just think of it as a platform for running apps, that is, a platform. I don’t know what the fuck is going on in that definitional-wrangling space.)

These companies, I’d theorize, then, had the wrong assumptions, investigated container usage, and realized it wasn’t what they were expecting.

Containers are for running custom written software. If you don’t want to do that, they’re probably not useful to you.

As an important side-note, let’s assume use here means penetration, which is to say, respondents use at least one, or as few as, container. That means overall usage could be a tiny percentage of their total workloads – or big. We have no way of know how many containers they use. Not a big deal if you’re interested, as here, in y/y trends, that is, growth. That’s what investors want to see.

Equally important and enlightening here, as always, is to look at the demographics:

I don’t know what the the n is, the total number of respondents. There’s a good chunk that of what I’d fall “enterprise”: 10,000+ employees, and lots from finance. Let’s say around half? Spending wise, education usually doesn’t spend much (or write that much custom software?), and “Technology” typically less. Tech companies usually don’t buy shit and DIY it choosing to spend on their own people instead of vendors – they are, after all, technology companies, they think.

Also, it’s worth weighting this all by how few insurance and retail companies are in the respondent base: they have tons of custom written software, the stuff you’d put in containers.

So, you’ve really got two very different surveys and conclusions going on here, split by two different markets: those who write and run their own software (mostly large organizations) and those who don’t (mostly smaller organizations).

You see the general conclusion in the footnote: 10,000+ people companies (who have a good chance of writing and running their own software) already use containers and plan on using more.

Anyhow, half of respondents are small and mid-sized companies, plus those tech companies that don’t spend. So, spending wise, selling containers is probably mostly a large enterprise play cause that’s where they get used and paid for. They rest of the companies, likely, want SaaS and security.

Check out the rest of the report. It covers much, much more that the container neck of the woods.

Link: Facebook’s local news project frustrated – by lack of local newspapers

The definition of not enough:

The company deems a community unsuitable for Today In if it cannot find a single day in a month with at least five news items available to share.

And:

Some 1,800 newspapers have closed in the US over the last 15 years, according to the University of North Carolina. Newsroom employment has declined by 45% as the industry struggles with a broken business model partly caused by the success of companies on the internet – including Facebook.

Link: Barely a third of outsourcing deals are now safe: Window-dressing legacy engagements is over – Enterprise Irregulars

People want to change the nature of outsourcing:

As this year’s State of Operations and Outsourcing study of 381 enterprise operations leaders across the Global 2000 reveals, only 30% of these relationships will continue to operate in the old model, while a similar number will stick with their service provider if they can have a shift towards business outcome pricing and a degree of automation applied. 27% have already given up on shifting the model with their current provider and have declared their attention to switch, while 17% want to end the misery and focus on bringing the work back inhouse, and look to simply automate it.
Original source: Barely a third of outsourcing deals are now safe: Window-dressing legacy engagements is over – Enterprise Irregulars

Link: “Gartner also found that there was a greater reliance on third-party developers in governments than other sectors, with more than half saying they used them. This is in contrast to 41 per cent over all the six industries surveyed, which comprised financ

Just over half of government IT work relies on outsourcing, 10% higher than private sector average: “Gartner also found that there was a greater reliance on third-party developers in governments than other sectors, with more than half saying they used them…. This is in contrast to 41 per cent over all the six industries surveyed, which comprised financial services, government, manufacturing, retail, healthcare and education.”

The y/y for the last five years would be interesting to see.
Original source: “Gartner also found that there was a greater reliance on third-party developers in governments than other sectors, with more than half saying they used them. This is in contrast to 41 per cent over all the six industries surveyed, which comprised financ

Link: New Common Sense Media survey finds more positives than negatives in teen use of social media

‘“Overall, Common Sense said teens are more likely to view social media as a good thing in their emotional lives. For example, 16 percent said using social media makes them feel less depressed and 25 percent said they feel less lonely, compared to 3 percent who said social media use made them feel more depressed or lonely. The report states that even though teen social media use has skyrocketed in six years, “teens are no more likely to report having a negative reaction to social media on any of these (emotional well-being) measures today than they were in 2012.”’
Original source: New Common Sense Media survey finds more positives than negatives in teen use of social media

Link: Google sets Kubernetes free with $9m in its pocket for expenses

“CNCF has reason to be magnanimous beyond the Chocolate Factory prize money – cloud-oriented enterprise software is all the rage. According to CNCF stats published on Wednesday, production usage of CNCF projects has increased more than 200 per cent on average since December 2017 and evaluation – companies testing said code – has risen 372 per cent…. Among CNCF survey respondents – 2,400 IT-types mostly from the US and Europe – 40 per cent of those from enterprise companies (5,000+ employees) report running Kubernetes in production. Over the whole set of people answering the survey, 58 per cent said they are using Kubernetes in production, with 42 per cent considering it for future deployment.”
Original source: Google sets Kubernetes free with $9m in its pocket for expenses

Link: Here are five hidden trends in corporate America’s travel and expenses as online services take over

Spending in the $1.4 trillion business travel market, of the non-travel type:

“Starbucks is clearly not just for coffee, according to corporate expense receipts. On average, employees spent $13.21 per visit to Starbucks in 2017, up nearly 40 percent since 2013. That means people are buying more than just coffee, which costs about $4, depending on your order. Certify CEO Bob Neveu credits spending on Starbucks’ increasing variety of food options, in addition to rising prices, for the increase.”
Original source: Here are five hidden trends in corporate America’s travel and expenses as online services take over

Link: Containers and serverless functions – a modern architecture needs both and more

“While it’s unclear whether cost savings are the primary motivation for PaaS adoption, 62 percent of IT leaders (presumably a subset that omits developers and operations people) cite saving at least $100,000 by using PaaS instead of traditional development techniques.”

Also, summary of latest CFF survey and few other vendor sponsored surveys on PaaS, containers, and serverless.
Original source: Containers and serverless functions – a modern architecture needs both and more

Link: Gartner Says Employees in Germany Report Lower Discretionary Effort than Global Average

“German employees’ discretionary effort fell below the global industry average, according to the latest worldwide research by Gartner. High employee discretionary effort, which is the willingness to go above and beyond in one’s job, was reported by 12.6 percent of employees in Germany in 1Q18, a nearly four percentage point drop from the previous quarter and below the global average of 15.2 percent.”

Sort of a weird survey, over 22,000 people globally.

Hot take: I’m sure employees would be very willing to go “above and beyond” if employers compensation also went “above and beyond.”
Original source: Gartner Says Employees in Germany Report Lower Discretionary Effort than Global Average

Link: CIOs planning to snub Oracle for other cloudy vendors – analyst

“Murphy has told clients that a survey of 154 CIOs revealed negative spending intentions towards Oracle, with CNBC reporting that his note said just 2 per cent of respondents said Oracle was their most integral vendor for cloud computing. In contrast, 27 per cent chose Microsoft and 12 per cent opted for Oracle CTO Larry Ellison’s cloudy nemesis Amazon. The analyst’s note added that CIOs have told the analysts they are migrating off Big Red and onto Microsoft SQL Server, Amazon databases and PostgreSQL.”
Original source: CIOs planning to snub Oracle for other cloudy vendors – analyst

Link: Enterprises taking path of greatest resistance to cloud, survey shows

Still a lot of stuff on-premises, and people want to move it to public cloud:

‘More than 80 percent of respondents have more than 100 applications under their purview, and a solid majority have a good deal still managed on-premises. The survey finds 74 percent stating at least half of these applications are on-premises. Another 71 percent of respondents see many of their on-premises applications as mission-critical to their business.’

How they’re moving apps:

‘Yet, the report’s authors state, “enterprises are choosing the path of most resistance, unintentionally creating a self-induced cloud skills gap.” That consists of cloud migration strategies that require the highest degree of IT skills — 49 percent cited refactoring or rewriting applications as their primary modernization strategy.

‘One in five, 20 percent, say they are rewriting core applications from scratch using cloud-native PaaS services. Another 28 percent are refactoring applications for the cloud using cloud-natuive and traditional applications. Another 20 percent are outright replacing applications with SaaS-based applications. About 12 percent are taking a “lift-and-shift” approach to simply move entire applications to hosted services.’

Survey of 450 “executive,” by 451 Research.
Original source: Enterprises taking path of greatest resistance to cloud, survey shows

Link: Enterprises taking path of greatest resistance to cloud, survey shows

Still a lot of stuff on-premises, and people want to move it to public cloud:

‘More than 80 percent of respondents have more than 100 applications under their purview, and a solid majority have a good deal still managed on-premises. The survey finds 74 percent stating at least half of these applications are on-premises. Another 71 percent of respondents see many of their on-premises applications as mission-critical to their business.’

How they’re moving apps:

‘Yet, the report’s authors state, “enterprises are choosing the path of most resistance, unintentionally creating a self-induced cloud skills gap.” That consists of cloud migration strategies that require the highest degree of IT skills — 49 percent cited refactoring or rewriting applications as their primary modernization strategy.

‘One in five, 20 percent, say they are rewriting core applications from scratch using cloud-native PaaS services. Another 28 percent are refactoring applications for the cloud using cloud-natuive and traditional applications. Another 20 percent are outright replacing applications with SaaS-based applications. About 12 percent are taking a “lift-and-shift” approach to simply move entire applications to hosted services.’

Survey of 450 “executive,” by 451 Research.
Original source: Enterprises taking path of greatest resistance to cloud, survey shows

Link: Enterprises taking path of greatest resistance to cloud, survey shows

Still a lot of stuff on-premises, and people want to move it to public cloud:

‘More than 80 percent of respondents have more than 100 applications under their purview, and a solid majority have a good deal still managed on-premises. The survey finds 74 percent stating at least half of these applications are on-premises. Another 71 percent of respondents see many of their on-premises applications as mission-critical to their business.’

How they’re moving apps:

‘Yet, the report’s authors state, “enterprises are choosing the path of most resistance, unintentionally creating a self-induced cloud skills gap.” That consists of cloud migration strategies that require the highest degree of IT skills — 49 percent cited refactoring or rewriting applications as their primary modernization strategy.

‘One in five, 20 percent, say they are rewriting core applications from scratch using cloud-native PaaS services. Another 28 percent are refactoring applications for the cloud using cloud-natuive and traditional applications. Another 20 percent are outright replacing applications with SaaS-based applications. About 12 percent are taking a “lift-and-shift” approach to simply move entire applications to hosted services.’

Survey of 450 “executive,” by 451 Research.
Original source: Enterprises taking path of greatest resistance to cloud, survey shows

Link: The State Of The Kubernetes Ecosystem

Overview of the (vendor) players.

Also:

  • “According to predictions from 451 Research, the market is set to grow from $762 million in 2016 to $2.7 billion by 2020.”

  • “A Forrester study found that 66% of organizations who adopted containers experienced accelerated developers efficiency, while 75% of companies achieved a moderate to significant increase in application deployment speed.”
    Original source: The State Of The Kubernetes Ecosystem

Link: The State Of The Kubernetes Ecosystem

Overview of the (vendor) players.

Also:

  • “According to predictions from 451 Research, the market is set to grow from $762 million in 2016 to $2.7 billion by 2020.”

  • “A Forrester study found that 66% of organizations who adopted containers experienced accelerated developers efficiency, while 75% of companies achieved a moderate to significant increase in application deployment speed.”
    Original source: The State Of The Kubernetes Ecosystem

Link: Does Your Company Have an AI Strategy, Really?

“A global survey of more than 3,000 executives by the Boston Consulting Group and MIT’s Sloan Management Review found that 84 percent of respondents believe AI will enable them to obtain or sustain a competitive advantage, 83 percent feel AI is a strategic priority for their businesses today, and 75 percent are counting on AI to open opportunities for new businesses and ventures.”

Also, a generalized set of questions for thinking through what AI stuff to do and strategize about in the enterprise.
Original source: Does Your Company Have an AI Strategy, Really?