What Is COTSOps?

This is the second post in the COTSOps Ecosystem Optimization Strategy series we defined and distinguished COTSOps as compared to DevOps and how it impacts the ability to execute Digital strategy.

And Data strategy, Cloud strategy, and Edge strategy, ..

The COTSOps strategy identifies and optimizes these complex ecosystem interdependency constraints for execution throughput and continuous improvement.

Originally discovered and developed in late 2016 to early 2017, the COTSOps naming was not applied until 2020.

Quick recap.

A significant percentage of global enterprises across most industry verticals are not significant custom software development companies.  

The COTSOps enterprise, the majority (~65-90%) of their global incumbent application portfolio (business, IT, and OT/ICS, Edge) is comprised of 100’s to 1,000’s of 3rd party Commercial-Off-The-Shelf (COTS) software applications created and commercially supported by Independent Software Vendors (ISVs). 

So, how does a COTSOps enterprise modernize 100's to 1,000s of their incumbent (OT/ICS/Edge/IIoT and IT) ISV COTS workloads to better action their data and efficiently consume cloud compute resources when they do not own the software source code to any of these COTS?

They don't.

An issue of permission (access to source code) to modernize their incumbent applications.

If COTS applications are not cloud, why run

Makes you wonder why 1,000's of COTSOps enterprises with 100s to 1,000s of incumbent non-cloud architecture COTS applications/workloads went the fools errand of 'journey to the cloud'.

I'll cover this later, but a great question for every COTSOps enterprise executive for their trusted advisor System Integrators who pitched them non-wisdom of J2C and have embarked in years of inflationary outcomes from 'lift and shift'.

Consider, the plight of the COTSOps enterprise who is utterly dependent upon the bespoke actions of 100s to 1,000s of siloed COTS ISVs to when and if they will modernize their COTS so the COTSOps enterprise can optimize their public cloud consumption.  

I do have to note that market deception of the the industry term 'cloud-native' architecture.

1. At the end of 2017, the global marketplace accepted; bent the knee, to the market reality that Kubernetes won the global cloud architecture orchestration/control plane war. Certainly, cloud vendors existed well before this. Kubernetes disrupted a highly fragmented market of bespoke cloud vendors and ISVs having their, often proprietary, control/orchestration planes cloud platforms and have since been refactoring and modernizing their cloud platforms and services to container/Kubernetes-native architecture.  
2. In 2016, it was well known in the industry that non-cloud-native, Distributed Systems architecture applications running on VMs, were economically disadvantaged on public cloud.
3. Around 2017-18, cloud vendors, GSI’s, and many individuals within COTSOps enterprises, possibly FOMO on attaining cloud skills/experience, bastardized the industry definition cloud-native (i.e.; 12-factor apps, API-First, software decoupled from hardware, cybersecurity shift-left, ruthless automation, everything as a Service, hyper-integration of enterprise systems and data, ..), to instead define the industry term cloud-native as a “primary, secondary, and tertiary preference to consume a cloud vendor’s native services”. In conversations with many COTSOps enterprises, often it was the IT Infrastructure teams, with very little or no input from application architects and software developers, that were responsible for selecting the public cloud vendor(s) for their enterprise. Interestingly some COTSOps enterprises contractually agreed to a primary KPI focused on cloud vendor platform consumption timelines/quotas. Having almost zero cloud/container/Kubernetes-native workloads, the COTSOPS enterprise adoption of public cloud focused on creating destructive Work in Process (WiP), from the Theory of Constraints, by executing ‘lift and shift’ from their data center(s) of non-cloud/container/Kubernetes workloads, which are architecturally and economically disadvantaged, to their public cloud vendors hosting environments. Logically, for those who did lift and shift of vintage architecture ISV COTS workloads running on VMs, by 2019-2021 their public cloud program costs are running >3x higher than initially projected and they've executed <50% of the projected ‘lift and shift' they had planned. Why? Because few of the incumbent COTS ISVs have delivered container/Kubernetes-native applications. In fact, in many COTSOps enterprises, they have 0-3% of their ISV COTS applications that are container/Kubernetes-native.

In previous posts on LinkedIn, I’ve written on digital transformation, which was a market impetus for enterprises leaping into public cloud adoption.

Interestingly, in every single COTSOps enterprise I’ve talked to, they are doing digital initiatives, but no two people in the organization can define digital transformation. Cloud vendors' hyperscaling services can be great, but the obvious is the architecture of the application workloads must first align. Cloud-first became cloud at any cost. Great for the outcomes of whose shareholders?

When executing a transformative strategy, definition not only matters but is critical for leading an organization to where they are going.  

“Digital transformation is organizations' capability to securely wield software and data with agility and velocity, continuously improving change throughput, in order to compete, differentiate, disrupt, and if fortunate innovate.”

I created this ‘north star’ definition for digital transformation in 2016.  Whether one is a Business Analyst, Sales, Marketing, IT, Logistics, Manufacturing, IT Enterprise Architecture, IT Infrastructure, or wherever role inside or outside the organization, it clarifies the focus of what the enterprise is executing and how everyone aligns to achieving the desired state of software and data throughput. It also addresses organizational culture; including alignment to value chains vs. perpetuating silos and fiefdoms. 

Most certainly digital transformation addresses topics like customer intimacy, integrating back, middle, and front office, and supply chain resiliency. These digital initiatives have execution capability illustrated in the above definition. 

Is the COTSOps ecosystem executing a discernible strategy?

The above definition is very different from the on-the-ground reality in many COTSOps enterprises today.

All know they must transform to container/Kubernetes architecture, however, very few have defined their enterprise’s strategy and/or architecture tenets and requirements to provide the guardrails to lead their own organization, partners, and their ISV COTS software supply chain to their desired outcomes.

Once-in-a-generation opportunity

The COTSOps ecosystem is a complex system with dependence upon the mutual successes of one another. This is a once-in-a-generation opportunity where ISVs, COTSOps end customers, and SIs are all going through this transformation at the same time.

Nearly 20-years ago it was enterprises leading their supply chains to EDI. Similarly in this transformation; leadership is required.

What's the probability 100's to 1,000's of bespoke COTS ISVs will align their individual technical interpretations of 'cloud' to your enterprise's requirements if you're enterprise/industry is not leading the software value chain?

Hint, ISV’s are also trying to figure this out.

Today, few, single-digit percentage, of 10,000s of global ISVs have delivered modern container/Kubernetes-native COTS applications. 

That is terrific news! It is not too late; the once-in-a-generation opportunity has not been missed.

What are future outcomes we want to avoid to guide our requirements?

• Some ISV COTS applications often are ‘snowflake’ deployments; adding cost and complexity to the applications lifecycle.
• Generally, treat lower-environments (i.e.; Dev, Test, Q/A, UAT, ..) less than Production.
• Takes weeks to get a VM.
• Data Science (AI/ML) waits weeks for requested environments.
• Infrequent and generally a software change velocity. In the excellent book Accelerate this topic is critical to master; scientifically proven new/primary KPIs for executing modernization.
• Security is often addressed much too late.
• COTS implementors customize ISV COTS applications; going against 2-decades old software industry best practice. Perpetuates snowflake application deployments.
• ITIL process culture works against the necessary primary focus of software change velocity.
• Silos of automation. It seems some enterprises do not comprehend automation delivery in an enterprise is a complex systems challenge. To paraphrase the late Dr. Eli Goldratt, attempting to solve a complex systems challenge with local optima is an oxymoron! As a result, enterprises have dozens of bespoke automation tools, which do not integrate well, and why negligible improvement in service delivery is experienced by customers, and why continuous improvement is not executed at scale. COTSOps enterprises must transform to treating ‘automation as code’ (GitOps).

Maybe you agree, the COTSOps enterprise requires a differentiated strategy and execution approach to digital transformation and cloud/container/Kubernetes modernization to achieve desired outcomes.

Below are links to the next 3 COTSOps Strategy articles as I address ecosystem constraints and COTSOps execution strategy for Win-Win-Win outcomes. As well as strategies and tactics to avoid creating destructive WiP (Work in Progress).

COTSOps - 'May' You Modernize After You Rehost To Cloud?

COTSOps Prepare to Assess

COTSOps Identify Constraint(s)

COTSOps Primary Constraint

Further, I welcome all to join the COTSOps LinkedIn group to foster constructive optimization conversations. Also, if you enjoyed and this made you think please share the article with others and give a 'like' and leave a comment. :)

THANK YOU to the brilliant John Archer (https://www.garudax.id/in/archer/) who spent many hours helping me noodle through the many COTSOps constraints, complexities, and optimization considerations.

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