It’s well-established that application of ROI measurements to IT investment remains an imperfect science, and the same goes for ongoing adoption of DevOps methodologies.
The fuzzy math of vendor-driven ROI calculators aside, even the most respected industry watchers have long struggled to create concrete parameters for assessment of technology spending. This, in large part, has been related to the fact that the requirement for continued investment has outweighed the value of short-term metrics.
At the same time, it’s hard to put a price on the influence that paradigms including mobility, virtualization and the cloud are having on today’s business world. The scope of the so-called Applications Economy is only truly beginning to be realized.
For in-depth discussion of DevOps ROI, register today for the upcoming webcast “Maturity Metrics – Analyzing the 2016 State of DevOps Report” with noted industry expert Gene Kim.
With DevOps, the challenge of ROI measurement evokes similar characteristics as with these other bellwether movements. The affect that leveraging DevOps to become more agile and respond adeptly to changing customer expectations will have, long-term, ultimately will be realized as much in organizational viability as in any immediate cost-savings or other factors.
That said, the recently published 2016 State of DevOps Report, assembled by the researchers at DevOps Research and Assessment (DORA), goes further down the path toward creating meaningful ROI metrics than any other such previous effort.
For starters, the 2016 report builds on previous year’s conclusions that so-called “high-performing organizations”—those already deeply engaged in DevOps practices—are “decisively outperforming their lower-performing peers in terms of throughput,” and this gap continues to widen.
Moreover, DORA contends that high performers deploy applications code 200 times more frequently than slow performers and achieve 2,555 times faster lead times. Perhaps even more importantly, in particular as it relates to the ability to improve applications performance, the report estimates that leading DevOps practitioners lay claim to 24 times faster recovery times and three times lower change failure rates.
The State of DevOps Survey, completed by roughly 4,600 technology practitioners, also found that high-performing teams spend far less time on so-called “unplanned work and rework”—most often required to address existing problems—allowing them to spend nearly 50 percent more of their time on new work. The latter brand of effort is typically aimed at adding or improving feature functionality—or, in simple terms, innovation.
As increased software velocity and reduction of MTTR represent the most critical differentiators in today’s environment, where an end user may wait only seconds for an app to load before abandoning your brand altogether, these conclusions obviously carry impressive weight.
Finally, based on a framework established by research analysts at IDC which suggests that hourly application downtime costs can range from $1.25 to $2.5 billion for a Fortune 1000 firm, and that the average cost of a critical application failure is $500,000 to $1 million per hour, the State of DevOps Report allows for the conclusion that high-performing organizations save an average of more than $91 million per year.
Much of this advantage is found, the researchers note, in the form of lower applications change failure rates, or those updates to software code that result in subsequent performance issues or outages. While high-performing DevOps practitioners experience an average change failure rate of 7.5 percent, medium-performing organizations see that figure rise dramatically, to a whopping 38 percent.
If the undeniable adage that “time is money” applies in today’s Applications Economy as much—if not more than ever—than these ROI calculations would appear to infer substantial meaning.
Later this month, Gene Kim, one of DORA’s founders and a key contributor to the State of DevOps Report, will host a webcast with CA Technologies expert Aruna Ravichandran to discuss DevOps ROI and many other related topics. Register for that event today.