DevOps: Disruptive and Changing the Purchase of IT Services

Businesses now demand that IT departments dramatically change the velocity of the cycle time it takes to take ideas from concept to production – often from as long as 12-18 months to only four to six weeks. Organizations can’t achieve a change of this magnitude with just a change in methodology. To do this, they must move to DevOps – a disruptive phenomenon with immense implications for the enterprise IT ecosystem and the service providers that support it.

Put another way, many IT firms batch or create software releases once or twice a year in which they bring out updates to their enterprise platforms. Businesses now demand a cycle time of one to two times a month for updates. What they want and need is a continuous-release construct.

Methodology alone cannot create the conditions in which organizations can form ideas, build requirements, develop code, change a system and do integration testing in the new timeframes. Hence the DevOps revolution.

DevOps is the completion of the Agile methodology. It builds the enabling development tools, integrates test conditions, and integrates the IT stack so that when developers make code changes, they also configure the hardware environment and network environment at the same time.

To do this, an organization must have software-defined data centers and software-defined networks, and all of this must be available to be tested with automated test capabilities. By defining coding changes with network and system changes all at the same time and then testing them in one integrated environment, organizations can understand the implications and allocate work as desired. The net result is the ability to make the kind of cycle time shifts that businesses now demand.

DevOps implications

DevOps enables IT departments to meet the cycle time requirements. But the implications for how organizations buy services and how providers sell services are profound. Basically the old ways don’t work as well because of the new mandate for velocity and time. This causes organizations to rethink the technology, test beds, and service providers; and then manage the environment on a more vertical basis that cuts across development, maintenance, and testing, and allows the full benefit of a software-defined environment.

Let’s examine pricing, for example. Historically, coding and testing are provided on a time-and-materials basis. The productivity unleashed in a DevOps environment enables achieving approximately a 50 percent improvement in efficiency or productivity. Therefore, it is as cannibalistic or as disruptive to the development and maintenance space as cloud is to the infrastructure environment.

Furthermore, organizations can only operate a DevOps environment if they have a software-defined hardware environment – aka a private or cloud environment. This forces production into ensuring they perform all future development in elastic cloud frames.

Enterprises today are reevaluating where they locate their talent. Having technical talent in a remote location with difficult time zone challenges complicates and slows down the process, working against the need for speed.

So DevOps is a truly disruptive phenomenon that will disrupt both the existing vendor ecosystem and also the software coding and tool frames. Testing, for example, has been a growth area for the services industry, but DevOps environment largely automate testing services.

Another disruption is that DevOps takes a vertical view of the IT life cycle. It starts to integrate the different functional layers, creating further disruption in how organizations purchase IT services.

DevOps offerings are a new development among service providers, but the services industry to date has been slow to adopt the movement. DevOps is an internal threat to their existing business and requires providers to rethink how they go to market.