The Battle for the New Stackor, What’s up with DevOps & Cloud?

(for corpdev types)

@cote | 1 May 2015 | cote.io

Conclusions

• Becoming a software defined business is the goal

• DevOps describes the process and the how, cloud is the technology

that enables DevOps

• Defining, then owning the “cloud platform” is the current battle – it’s a

winner take all game

• Sizing this market is difficult, base it off existing application

development and infrastructure markets plus the aaSes

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You should know…

• While this isn’t an official Pivotal presentation (it’s just from

me!), I’m biased to the Pivotal world view, obviously

• While I used to play a strategist on TV, I don’t corpdev

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Why “go cloud” & “DevOps”Becoming a software defined business

4

Becoming a software defined business

5Source: “Creative destruction in the S&P500 index,” Jan 2014; "Uber Expands Funding Round as Revenue Growth Acceleratesm," Wall Street Journal, Feb 2015. See more discussion in “The Three Horsemen of the Digital Apocalypse Considered.”

$108m

$400m

$2bn est.

2013 2014 2015

Uber's rumored net revenue

…to thisMoving from this…

Why do cloud?41%

36%

35%

31%

31%

30%

24%

14%

8%

7%

6%

5%

5%

Cost Savings

Time to Market

Hardware Savings

Less to Manage Internally

Staff Savings

Improved Availability/Uptime

Scalability/For Peak Demand

Software Licensing Savings

Geographic Location

Create New/Additional Revenue for Org

Hybrid Cloud Interoperability

Improved Security

Other

Notes: n=717. Q. What were the key factors in building the business case for cloud-computing investments at your organization? Please select your top three.Source: "Voice of the Enterprise: Cloud Computing Q4 2014," 451 Research.

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Focus on product development, not COTS

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Failure to change the operational model

31%

Doing too little19%

Failure to change the funding model

13%

Defending I&O and doing too much

11%

Focusing on the wrong benefits

10%

Using the wrong technologies

6%

Nothing is wrong - It's great!

5%

Something else5%

"What is going wrong with your private cloud?"

Sources: “Problems Encountered by 95% of Private Clouds,” Gartner, Feb 2015. See also 451 commentary on cloud for net-new applications and survey data on cloud pain points.

DevOpsHow you deliver & operate software as competitive advantage

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DevOps == continuous delivery (More or less)

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Build Test/VerifyPackage

repositoryVersionControl

InfrastructurePlatform

(IaaS, PaaS, VMs)

ProductionConcerns

(monitoring, scaling, etc.)

Feedback Loop

Specify Code

Development CI/CD Ops

Goals that lead to DevOps

1. Delivering software that runs on the Internet (mobile, web, etc.)

2. The pipeline is the factory, from concept, to code, to production

3. Faster turns, while maintaining quality, uptime, performance

• Lean approach to entire process

• Shorten time to customer value

• Keep the site up, resilience vs. failure

4. Requires Development & Operations to combine

10Sources: see The Practice of Cloud System Administration, chapter 8 for an in-depth definition and discussion. Also, see Damon Edward's 2012 piece "Use DevOps to Turn IT into a Strategic Weapon.” Also, The Phoenix Project for a story of DevOps in the style of The Goal.

11Sources: “Getting Your Arms Around DevOps – DevOps Patterns and Practices,” Cameron Haight, Gartner, Oct 2014.

Containers & Cloud PlatformsIt’s what everyone is talking about and is experiencing innovation churn

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The battle for the new stack*

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App Dev“Monolithic”

Systems Management 1

VMwareMicrosoft

Linux

Hardware

App Dev“Cloud-native”

Systems Management 2

OpenStackCloud Foundry

AWSetc.

Hardware

Systems Management 3

DockerCloud Foundry

MesosCoreOS

Kubernetesetc.

Hardware

Plain old virtualization Cloud, public and private

App layer changes for cloud

Management tools always(?) change

What runs everything, most of attention is here

Hardware no longer eating the world -cheaper, faster

Shift from web, to web + mobile

* Obviously, most all vendors (VMware, IBM, Microsoft, etc.) want to be in the new stack and are participating there in varying degrees. Public cloud companies like Salesforce and Google figure in as well.

12 ops needs for the new stack

• 1. Role-based access to resources

• 2. Run specified code on demand

• 3. Coordinate cross service

configurations

• 4. Securely and reliably connect to the

public Internet

• 5. Read and write persistent data

• 6. Add and remove resources

• 7. Record internal and external events

• 8. Isolate failures to recover from failures

• 9. Monitor and measure performance

and health

• 10. Detect and determine failure

• 11. Running a cloud business

• 12. Resilience to work tomorrow

14Source: adapted from “You are Going to Need a Platform, Operational Concerns of the Third Platform,” April 2015.

Pivotal Cloud Foundry as an example

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(Open Source) BusinessHow are vendors making money?

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No one “sells” open source, they sell closed source or support – “open core”

• Docker, e.g., registry, closed source “enterprise” tools

• GitHub, e.g., private repos in cloud, on-premises software

• Cloud Foundry, e.g., closed source & support

• *aaS, e.g., running and managing, metered usage (e.g., storage)

• If a company does not have a product/service they sell, they haven’t

figured it out yet – someone should figure it out!

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SizingFocus on traditional markets that are being consumed by the new stack

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Source: "Riding the Cloud Computing Wave; RHT down to Sell," Goldman, 13 Jan 2015. See also Gartner’s Application Infrastructure and Middleware market-sizing: $428.6bn in 2014.

Cloud = 4% Cloud = 11%“Market share”

Goldman’s estimate of IT that could “go cloud”

Don’t make an aaS of yourself: look to traditional developer related spend for TAM

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Gartner predicts 25% G2000 DevOpspenetration by 2016

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Total:$1.9bn

Total:$2.3bn

Sources: “Market Trends: DevOps — Not a Market, but a Tool-Centric Philosophy That Supports a Continuous Delivery Value Chain,” Gartner, Feb 2015; "Gartner Says By 2016, DevOps Will Evolve From a Niche to a Mainstream Strategy Employed by 25 Percent of Global 2000 Organizations,” Gartner, March 2015;

Thanks!@cote | cote.io

Slides: http://cote.io/devopsforcorpdev

21Credits: laptop and tablet icons in battle for the new stack from Hans Gerhard Meier