Understanding the Value of Agility in the Cloud

•August 2015

•PANAYA WEBINAR

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Today’s Speakers

Ofira ShafirYour ModeratorPanaya

David S. LinthicumSVPCloud Technology Partners

PANAYA WEBINAR

How Real is All This?

The Traditional View of Cloud ROI

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Why cloud?The existing trajectory is not good

$

Capability

© 2006 The Linthicum Group. All Rights Reserved.Reproduction without prior written permission is strictly prohibited.

•UNDERSTANDING THE ROI

© 2006 The Linthicum Group. All Rights Reserved.Reproduction without prior written permission is strictly prohibited.

$500,000

$1,000,000

On-Premises

© 2006 The Linthicum Group. All Rights Reserved.Reproduction without prior written permission is strictly prohibited.

Cloud Delivered

The New View of Cloud ROI

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The Value Proposition of Cloud Computing: Agility

• We implement Cloud Computing for two major reasons. – First is the ability to save development dollars through

reuse of services (public or private).– Second is the ability to change the IT infrastructure

faster to adapt to changing needs of the business, or agility.

– Enhance, not replace, existing IT.

Reuse…Yes Again

• Under the concept of cloud (private and public) service reuse, we have a few things we need to determine to better define the value. These include:– The number of services that are reusable.

Complexity of the services. The degree of reuse from system to system.

• The number of reusable services is the actual number of new services created, or, existing services abstracted, that are potentially reusable from system to system.

• The complexity of the services is the number of functions or object points that make up the service.

• Finally, the degree of reuse from system to system is the number of times you actually reuse the services. We look at this number as a percentage.

So, What do you Do?• In order to determine their value we must first determine

the Number of Services that are available for Reuse (NSR), the Degree of Reuse (DR) from system to system, as well as the Complexity (C) of each service.

• The formula to determine value looks much like this:

Value = (NSR*DR) * C

Cloud Computing=Agility

• Agility is a strategic advantage that is difficult to measure in hard dollars, but not impossible. We first need to determine a few things about the business, including:

• The degree of change over time is really the number of times over a particular period that the business reinvents itself to adapt to a market.

• The ability to adapt to change is a number that states the company’s ability to react to the need for change over time.

• Finally, the relative value of change is the amount of money made as a direct result of changing the business.

What Does this All Mean?

• The ROI of cloud computing is problem domain dependent.– Your mileage will vary.– There are few best practices.

• The concept of agility typically provides more value than “traditional” cloud computing ROI metrics.– Hard to measure, but worth trying.

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Clouds are a fit when:1. Processes, applications, and

data are largely independent

2. Points of integration are well defined

3. Lower level of security is fine

4. Core internal enterprise architecture is healthy

5. Web is the desired platform

6. Cost is an issue

7. Applications are new

Path to the clouds Path to clouds: start

with the architecture

Understand:• Mission drivers• Information under

management• Existing services under

management• Core business

processes

Stepping to the Clouds

Final Words of Advice

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ERP systems attuned to best practices and market needs

Fast and simple changes

Agile ERP for new services

ERP ‘catch-up’ process is risky, cumbersome and expensive

Complex, error prone changes

Changes measured in months not weeks

Delivering on the ERP Promise (?...)

The ERPPromise

The ERPReality

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Listen to What the Man Said

“Eighty to ninety percent of our potential problems were taken care of by Panaya” Mercedes-Benz

“Aibel has standardized on Panaya CloudQuality Suite™” Aibel

“Panaya took Eaton from manual testing to the achievable reality of attended automated testing” Eaton

“Thanks to Panaya, we all of a sudden have the visibility of what we need to test” Embry-Riddle Aeronautical University

•PANAYA

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•Change Analytics and Test Accelerators

•Change AnalyticsWhat will break

How to fix it

What to test

•Test Accelerators – “Attended Automated Testing”Real-time snapshot of testing process

Automatic recording and running of test scenarios

Pass the baton between testers to reduce idle time

Where Panaya Comes In

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