#0800DEVOPS - The Value Of DevOps Transformations
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I had an interesting conversation recently whether development aimed for a cloud-native platform would be cheaper or more expensive than traditional one aimed for deployments on traditional application servers in VMs.
As much as we were all aware that we were comparing oranges and apples, we explored this topic deeper just to see where the conversation would get us. Recognizing costs and benefits was easy. But quantifying anything other than platform licenses proved very difficult. Even quantifying licenses was mind-blowing when considering the public cloud.
As luck would have it, a couple of weeks later, I stumbled upon a paper by Dr. Nicole Forsgren, Jez Humble, and Gene Kim that explores forecasting the value of DevOps transformations. In this paper, authors of popular State Of DevOps Report use insights and metrics from the report to model ROI calculation of DevOps transformation, taking into account value-generating and cost-saving components.
More specifically, authors suggest that value gained from the transformation can be broken down to Value of Work Avoided (time recovered through automation and process optimizations), Value of New Features (new revenue streams created in time recovered) and Cost of Avoided Downtime (downtimes avoided by improving system resilience).
This value can be stacked up against transformation costs such as acquiring technology, training, decreased productivity while embracing new technology, consulting services, etc…
What is great about this paper is the fine-grained breakdown of gained value, as well as sample calculations based on realistic numbers from the industry. Although your mileage may vary, this paper is a great start for C-level discussions when considering DevOps transformation.
This article is written
by Ivan Krnic
https://twitter.com/ikrnic
