Measuring Four dimensions of value

To justify cloud-based dev/test environmentsAndy Wright | Skytap Value AssessmentPresented June 25, 2014

Drag picture to placeholder or click icon to addAndy WrightSW Engineer turned MBAMarketing HeadMeasuring value @ Skytap

AGENDA

Why do we need to measure value

Top reasons why cloud is adopted for dev/test

How to measure and quantify value

Summary, Q&A

Most IT investments require a business case and ROI for anything > $50K

Best Practice – measure & justify anything you want to continue using• Mitigate risk at contract renewal time• Defend against cheap replacements• Apples to apples comparison against other alternatives• Sensitivity analysis: know what really matters

5Top

Reasons

① Stop waiting for access② Focus on development and test③ Ability to experiment and innovate④ Stop the sprawl⑤ Eliminate “works for me” collaboration

Four dimensions of valueThat you can measure today

Infrastructure Cost

Labor Efficiency

Quality

Productivity

1

2

3

4

Eliminate sprawl, reduce future capital and operating expense

Automate manual environment provisioning, configuration, preparation, maintenance

Quality in consistency – rework and production quality costs

Reduce overhead, adopt parallel release development & spark innovation

Dev/Test Infrastructure Costs

Infrastructure Cost Considerations

IT ManagementOpEx

Power & CoolingOpEx

Software LicensesCapEx

Servers & NetworksCapEx

IT ManagementOpEx

Service FeeOpEx $

Infrastructure is hard dollarDon’t let it be the only deciding factor

Automation is the larger value

• Transitioning infrastructure is not a means to an end• If self-service is allowed, cost controls need to be in place• Focus on the real benefits for dev/test teams

Labor EfficiencyValue of Automation and Self Service

• Repeatability• Consistency

• Fewer people Involved in the process• Innovation on-demand

% TimeReproducing

Defects

% TimeMaintaining

Environments

% TimeProvisioning

& Configuring

QualityCost of Rework

Defect Distribution

CodeUnit

System + Regression

Integ. UAT / RCRelease/

Production

19%

51%

9%

21%

$ $$ $$$ $$$$ $$$$$+

Measuring defect cost• Who is involved at

each stage?

• What is their time invested?

• What is the value of their time?

• All defect found in any phase must go through all previous phases

What % of defects were due to environment parity issues?

QualityProduction Quality Costs

Generally well knownDiffers between applications

• Revenue Impact• SLA Fees• Employee Productivity / Downtime

Production Quality Costs Formula for production defect reduction

# defects in production % of those considered major / critical % of those due to environment parity

Value = Defect Reduction * Avg. Cost per Defect

ProductivityGetting more with less

Look to the PMO to identify how output is measured today (TTM, Quality, Technical Debt)

Measure the value of on-demand, identical environments.• Parallel Development• Environments for current and future releases• Exploratory coding & refactoring• Upgrade testing

4 Dimensions Summary

Efficiency Quality

Infrastructure Cost Productivity

• Justify to protect investment

• Use defendable metrics

• Infrastructure is a small %• Dev/QA Efficiency• Software Quality• Productivity/Innovation

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