Survive and Thrive in the Application Economy
August 2014
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The biggest challenge for our customers today:
The Application Economy
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Sources: *Developing Apps In The Age Of The Customer Is More Than Ever About Scaling Agile, Forrester Research, Inc., March 2014Wall Street Journal, Why Software Is Eating The World, August 2011
“Software is eating the world” “In the age of the customer, modern
applications will rule the world”*
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- Marc Andreeson - Forrester Research, Inc.
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From sneaker company to data enabled athletic brand.
From book seller to insight driven delivery service, cloud servicer and entertainment hub.
Today, Every Company is a Software Company.
From UK Grocer to global consumer retailer leveraging data and technology that reframes the shopper experience.
In 2014, CEOs must focus on leading their organizations to think like and become more like “tech” companies, because within a few years, digital business capabilities will dominate every industry. Urgent action is needed because first-mover advantage is common in digital business, and fast followers must be very fast.
Gartner; “CEO Resolutions for 2014—Time to Act on Digital Business”; Mark Raskino; March 5, 2014
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Applications are turning into competitive advantage
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Applications are driving new buying decisions
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Applications are streamlining partner communication
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Applications are ensuring better customer experience
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Applications are tapping into new ways to reach customers
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“ .com generates more than half of its $2.3 billion in revenue through its APIs, not its user interfaces.”
5B 13B
Transactions per day processed through APIs
1T
APIs are the interface to the IoT, the cloud, and more
Source: Forbes.com, Welcome to the API Economy, 2012, Eric Savitz.
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Applications are changing the world of business
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Applications are still delivered across multiple platforms
Desktop only
Mobile
only
Multi-platf
orm
Game co
nsole
e-Reader
Smart
TV
34%
8%
58%
40%
17% 16%
Sources: Comscore, 66 Percent of Digital Media Population in Spain is Now ‘Multi-Platform’, March 2014 Harris Interactive, Cutting Edge Technologies Supplementing – Rather than Displacing – Older Tech, At Least For Now, June 2013
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Applications dominate the mobile web
Source: Flurry Analytics, Apps Solidify Leadership Six Years into the Mobile Revolution, April 2014
2013 20140%
10%20%30%40%50%60%70%80%90%
100%
80% 86%
20% 14%
Mobile WebApps
Percentageof time spent
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The application economy will have long-term impact
Range of estimated potential economic impact of technologies in 2025 ($trillions)
Source: McKinsey Global Institute, Disruptive technologies: Advances that will transform life, business, and the global economy, May 2013
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What is CA Technologies Focused On?
INNOVATION EXECUTION SPEED
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Industry Trends Driving the Need for Transformation
New applications Changes to existing apps Bug fixes
ACCELERATE DELIVERY MANAGE COMPLEXITY
Software is the customer experience
Quality and Performance are critical
Composite services and heterogeneous systems
Reduced budgets Distributed development
teams and IT partners
INCREASE RELIABILITY
INTERNET OF THINGS
MOBILITYCONSUMERIZATION
30 BillionDevices connected to Internet by 2020Gartner Nov. 2013
1.9 BillionMobile Devices WorldwideGartner Sept. 2013
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DevOps VisionEnabling Enterprises (high complexity environments) to Release New Business requirements in a fraction of the time with Flawless Quality
DAYS/HOURS +FLAWLESS QUALITY
WRITE CODE AND BUILD FUNCTIONAL TESTS NON-FUNCTIONAL
TESTS RELEASE
WITH DEVOPS
MONTHS/WEEKS + AVERAGE QUALITYCURRENTPARADIGM
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Pace-Layered Application Development Approach
Systems of Innovation
Systems of Differentiation
Systems of Record +
Governance
+
-
Chan
ge
Source: Gartner
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Developer 1
Developer 2
Developer n
CodeCommit
CodeCommit
CodeCommit
DeveloperBranch SCM
DeveloperBranch SCM
DeveloperBranch SCM
CI Server
CI Server
deploy deploy
Integration Lab
UAT/StagingEnvironment
deploy deploy
Performance Lab
Production
Operations n
Not an Easy Task
LACK OF EARLY TESTING LACK OF AUTOMATED TESTING
LACK OF VISIBILITY INTO PROD. APPS
DIFFICULTY IN MANAGING ENVIRONMENTS ACROSS MULTIPLE CONCURRENT RELEASES
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CONTINUOUSVALIDATION
CA Enterprise DevOps
Developer 1
Developer 2
Developer n
CodeCommit
CodeCommit
CodeCommit
DeveloperBranch SCM
DeveloperBranch SCM
DeveloperBranch SCM
CI Server
CI Server
Integration Lab
UAT/StagingEnvironment
Performance Lab
Production
Operations n
TRUE AGILEDEVELOPMENT
CONTINUOUSDELIVERY
DATAMINING
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Customer ValueUS REGIONAL BANK
Cut 3 ½ Months from Dev. time
Cut 65-85% testing cycle costs
Cut Dev. Env set up time 42 days to 3 days
HEALTHCARE PROVIDER
25% efficiency gain – Shortened cycle by 4
weeks Better Testing found 30
fewer bugs - a $600K saving
GLOBAL TELCO
Reduced major defects per release
Saved at least US$ 280K/yr.
Access to end-to-end environments 90% of the time.
GLOBAL CREDIT CARD
Nearly 100% uptime for Virtual Services
Zero defects in UAT $319K/year net
annual savings estimate
15 month ROI
STATE DMV
Mainframe cost drop 50%-60% expected
Improved product quality and expedited time-to-market
Replaced testing environment
MULTINATIONAL GROCER
Reduced release cycles from 3 days to 20 min.
Updates to international online grocery app.
$420K/month saving
INSURANCE
Reduced regression cycles by 40%-70%
Reduced 4 weeks of first release of new solution
$1.2M efficiency gained in first 2 years after implementation
HEALTHCARE GROUP
ROI in 8 Months 300% increase in weekly
deployments 200% increase in
number of deployed environments
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And just the tip of the iceberg....the Internet of Things