Survive and Thrive in the Application Economy

August 2014

2 © 2014 CA. ALL RIGHTS RESERVED.

The biggest challenge for our customers today:

The Application Economy

3 © 2014 CA. ALL RIGHTS RESERVED.

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”*

3 © 2014 CA. ALL RIGHTS RESERVED.

- Marc Andreeson - Forrester Research, Inc.

4 © 2014 CA. ALL RIGHTS RESERVED.

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

5 © 2014 CA. ALL RIGHTS RESERVED.

Applications are turning into competitive advantage

5 © 2014 CA. ALL RIGHTS RESERVED.

6 © 2014 CA. ALL RIGHTS RESERVED.

Applications are driving new buying decisions

6 © 2014 CA. ALL RIGHTS RESERVED.

7 © 2014 CA. ALL RIGHTS RESERVED.

Applications are streamlining partner communication

7 © 2014 CA. ALL RIGHTS RESERVED.

8 © 2014 CA. ALL RIGHTS RESERVED.

Applications are ensuring better customer experience

8 © 2014 CA. ALL RIGHTS RESERVED.

9 © 2014 CA. ALL RIGHTS RESERVED.

Applications are tapping into new ways to reach customers

9 © 2014 CA. ALL RIGHTS RESERVED.

10 © 2014 CA. ALL RIGHTS RESERVED.

“ .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.

11 © 2014 CA. ALL RIGHTS RESERVED.

Applications are changing the world of business

12 © 2014 CA. ALL RIGHTS RESERVED.

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

13 © 2014 CA. ALL RIGHTS RESERVED.

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

14 © 2014 CA. ALL RIGHTS RESERVED.

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

15 © 2014 CA. ALL RIGHTS RESERVED.

What is CA Technologies Focused On?

INNOVATION EXECUTION SPEED

16 © 2014 CA. ALL RIGHTS RESERVED.

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

17 © 2014 CA. ALL RIGHTS RESERVED.

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

18 © 2014 CA. ALL RIGHTS RESERVED.

Pace-Layered Application Development Approach

Systems of Innovation

Systems of Differentiation

Systems of Record +

Governance

+

-

Chan

ge

Source: Gartner

19 © 2014 CA. ALL RIGHTS RESERVED.

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

20 © 2014 CA. ALL RIGHTS RESERVED.

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

21 © 2014 CA. ALL RIGHTS RESERVED.

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

22 © 2014 CA. ALL RIGHTS RESERVED.

And just the tip of the iceberg....the Internet of Things