Survive Thrive App Economy

Survive and Thrive in the
Application Economy
August 2014

The biggest challenge for our customers today:
The Application Economy
2 © 2014 CA. ALL RIGHTS RESERVED.

“Software is eating the world”
“In the age of the customer, modern
applications will rule the world”*
- Marc Andreeson - Forrester Research, Inc.
Sources: *Developing Apps In The Age Of The Customer Is More Than Ever About Scaling Agile, Forrester Research, Inc., March 2014
Wall Street Journal, Why Software Is Eating The World, August 2011

Today, Every Company
is a Software Company.
From sneaker company to
data enabled athletic brand.
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
From book seller to insight driven
delivery service, cloud servicer and
entertainment hub.
From UK Grocer to global consumer
retailer leveraging data and technology
that reframes the shopper experience.

Applications are turning into competitive advantage

Applications are driving new buying decisions

Applications are streamlining partner communication

Applications are ensuring better customer experience

Applications are tapping into new ways to reach customers

APIs are the interface to the IoT, the cloud, and more
Transactions per
day processed
through APIs
“ .com
generates more than
half of its $2.3 billion
in revenue through
its APIs, not its user
interfaces.”
5B 13B
1T
Source: Forbes.com, Welcome to the API Economy, 2012, Eric Savitz.

Applications are changing the world of business

Applications are still delivered across multiple
platforms
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

Applications dominate the mobile web
20% 14%
80% 86%
100%
80%
60%
40%
20%
0%
2013 2014
Source: Flurry Analytics, Apps Solidify Leadership Six Years into the Mobile Revolution, April 2014
Mobile Web
Apps
Percentage
of time spent

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

What is CA Technologies Focused On?
INNOVATION EXECUTION SPEED

Industry Trends Driving the Need for Transformation
ACCELERATE DELIVERY MANAGE COMPLEXITY
 New applications
 Changes to existing apps
 Bug fixes
 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
CONSUMERIZATION MOBILITY
30 Billion Devices connected to Internet by 2020
Gartner Nov. 2013
1.9 Billion Mobile Devices Worldwide
Gartner Sept. 2013

DevOps Vision
Enabling Enterprises (high complexity environments) to Release New
Business requirements in a fraction of the time with Flawless Quality
NON-FUNCTIONAL
MONTHS/WEEKS + AVERAGE QUALITY CURRENT
PARADIGM
DAYS/HOURS +
FLAWLESS QUALITY
WRITE CODE
AND BUILD
FUNCTIONAL TESTS
TESTS
RELEASE
WITH DEVOPS

Pace-Layered Application Development Approach
Systems of Innovation
Systems of Differentiation
Systems of Record +
Change
Governance
+
-
Source: Gartner

Developer 1
Developer 2
Developer n
Code
Commit
Developer
Branch SCM
Code
Commit
Developer
Branch SCM
Code
Commit
Developer
Branch SCM
CI Server
CI Server
deploy deploy
Integration Lab
UAT/Staging
Environment
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

Developer
Branch SCM
Developer
Branch SCM
CONTINUOUS
VALIDATION
CA Enterprise DevOps
Developer 1
Developer 2
Developer n
Code
Commit
Code
Commit
Code
Commit
Developer
Branch SCM
CI Server
CI Server
Integration Lab
UAT/Staging
Environment
Performance Lab
Production
Operations n
TRUE AGILE
DEVELOPMENT
CONTINUOUS
DELIVERY
DATA
MINING

Customer Value
US 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

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

Survive Thrive App Economy

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Editor's Notes