In the second webinar of this multi-part series, Building DevOps in the Enterprise, Jonah Kowall, VP of Market Development and Insights at AppDynamics, will present his thoughts and opinions on the current and future state of DevOps. Join Jonah as he explores best practices, concepts, and ideas to enable your enterprise DevOps. You’ll also learn about team management areas that are key for success, like developing ownership, trust, accountability, and how that culture is managed at scale while preserving team autonomy. Key takeaways: Organizational patterns: How to manage teams and foster culture to scale Legacy problems enterprises face: How to work faster despite legacy applications Microservices — Peak Hype: Examine the cycle on this hot trend, balanced with a reality check and raised expectations The Struggle of Bimodal IT: Which apps work best in a lower, yet more predictable and stable mode versus those which need fast iteration and experimentation API-Driven Architectures and Microservices: Learn to solve common DevOps challenges​

1. Building DevOps in the enterprise: Transforming
challenges into organizational opportunities
Jonah Kowall, VP Market Development and Insights
@jkowall

2. APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 2
Notice
The information and materials included in this presentation (collectively,
the “Materials”) are the confidential and proprietary information of
AppDynamics, Inc. (the “Company”). No part of the Materials may be
reproduced, distributed, communicated or displayed in any form or by any
means, or used to make any derivative work, without prior written
permission from the Company. © 2017 AppDynamics, Inc. All rights
reserved.
All third party trademarks, including names, logos and brands, referenced
by the Company in this presentation are property of their respective
owners. All references to third party trademarks are for identification
purposes only and shall be considered nominative fair use under
trademark law.

3. APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 3
Jonah Kowall
• 20+ years in IT
• 15+ years working with Infrastructure &
Operations enterprises and startups
• Security - CISSP, CISA, PCI
• Co-founded one of the first content filtering companies
• Head of global monitoring at Thomson Reuters
• Head of IT Operations at MFG.com – Bezos Expeditions
• Former Gartner Research VP
• Strategy AppDynamics 2 years, acquired by Cisco in March 2017

4. Organizational and software
structure

5. APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 5
Conway’s Law
“Any organization that designs a
system (defined more broadly here
than just information systems) will
inevitably produce a design whose
structure is a copy of the organization’s
communication structure.”
– Melvin Conway, 1967

6. Tightly-coupled vs loosely-coupled teams
Exploring the Duality between Product and Organizational Architectures: A Test of the “Mirroring” Hypothesis (MacCormack, Rusnak,
Baldwin: Harvard Business School (2011)
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 6
Tightly-coupled Loosely-coupled
Goals Shared, Explicit Diverse, Implicit
Membership Closed, Contracted Open, Voluntary
Authority Formal, Hierarchy Informal, Meritocracy
Location Centralized, Collocated Decentralized, Distributed
Behavior Planned, Coordinated Emergent, Independent

7. Software analyzed
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 7
Exploring the Duality between Product and Organizational Architectures: A Test of the “Mirroring” Hypothesis (MacCormack, Rusnak, Baldwin: Harvard Business School (2011)
Propagation cost measures for each matched pair
Product Type
Loosely-
coupled
Tightly-
coupled
1. Financial Mgmt 7.74% 47.14%
2. Word Processing 8.25% 41.77%
3. Spreadsheet 23.62% 54.31%
4a. Operating System 7.18% 22.59%
4b. Operating System 7.21% 24.83%
5. Database 11.30% 43.23%
Product Type Loosely-coupled11 Tightly-coupled
1. Financial Mgmt GnuCash 1.8.4
138 Contributors
76 Organizations
27 Countries
MyBooks
2. Word Processing Abiword 0.9.1
160 Contributors
68 Organizations
27 Countries
StarWriter
3. Spreadsheet Gnumeric 1.4.2
19 Contributors
9 Organizations
7 Countries
StarCalc
4a. Operating System Linux 2.1.32
228 Contributors
64 Organizations
42 Countries
Solaris
4b. Operating System Linux 2.6.8
515 Contributors
201 Organizations
54 Countries
XNU
5. Database
MySQL
3.20.32a12
60 Contributors
N/A Organizations
25 Countries
Berkeley DB

8. Bimodal IT

9. Certainty vs uncertainty
38%
of organizations today adopt
a bimodal approach
Mode 1
Traditional business and
operations which are predictable
Mode 2:
Experimental and fast iteration

10. Time (t)
Revenue
Mode 1
Analog Business
Mode 2
Digital Business
Total Revenue
(Analog + Digital)

11. *Iterative Incremental Development
Bimodal = Samurai + Ninja
Two distinct but coherent approaches, deeply different, both essential
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 11
Mode 1 (Samurai) Mode 2 (Ninja)
Reliability Goal Agility
Price for performance Value
Revenue, brand, customer
experience
Linear, waterfall, high-ceremony IID*
& agile AD
Approach
Iterative, low-ceremony, nonlinear,
lean startup, Kanban, agile AD
Plan-driven, approval-based Governance
Empirical, continuous implicit in the
approach
Enterprise suppliers, long-term deals Sourcing
Small, new vendors, short-term
deals
Good at conventional process &
projects
Talent
Good at new approaches & dealing
with uncertainty
IT-centric, arms-length from
customer
Culture
Business-centric, close to
customer
Long (months) Cycle Short (days, weeks)

12. Small teams are part of the big
picture in the enterprise

13. Traditional enterprise organization
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 13
CIO
VP Dev VP Ops
App
Support
Network Server Storage SupportDev Test DBA PMO
Siloed teams, empire building, political
…

14. Product oriented development
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 14
App
Support
Network Server Storage SupportProduct 1 Product 2 Product 3
Dev is cross functional, business aligned
…
CIO
VP Dev VP Ops

15. Tightly coupled enterprise application
• Teams for each layer of application
and infrastructure
• Centralized control of systems
and data
• Lack of autonomy for each team
• Each team has tools, which roll into a
centralized console or analytics engine
New mobile app
Shared DB
App 1
App 2

16. Software evolution
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 16
Decreasing Granularity
Macroservice Miniservice Microservice
Application Capability Domain Feature
E-commerce Order service Shopping cart Shipping options
© 2017 Gartner, Inc.

17. BiModal (option)
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 17
CIO
VP Dev VP Ops
Network Server Storage Support
Product 1 Product 2 Product 3
DevOps product aligned, dually reports to VP Dev and VP Ops
DevOps Teams / Product
Engineering Teams
…

18. DevOps
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 18
CIO
VP Dev VP Shared Services
Product 1 Product 2 Product 3
DevOps Teams / Product
Engineering Teams
…
SRE Platform Support

19. Software architecture

20. Software design goals
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 20
Macroservices
Large-grained (capacity)
Monolithic deployments
Shared data
Enable access, composition and
integration by encapsulating
capabilities and publishing APIs
1
Increase agility by refactoring
domain-level functionality into
independently deployable services
2
Enable Access
Monolithic /
Three-tier
For web-scale performance and agility,
reduce service granularity to single-
responsibility features
3
Microservices
Fine-grained (feature)
Independently deployable
Owns the data
Support Web Scale
Miniservices
Coarse-grained (dormain)
Independently deployable
May own the data
Increase Agility
SOA is the foundation of modern architectures
© 2017 Gartner, Inc.

21. Mode 1 vs Mode 2: System design
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 21
Mode 1 Mode 2
Predictable Experimental
Well-defined standards Team choice for tooling and processes
Well-defined processes with people
centric workflows and handoffs
Automation is key for efficiency
Public cloud last, if any Public cloud first
Tightly coupled systems, use of
services to integrate
Decoupled Systems (Microservices /
Miniservices)
Synchronous Asynchronous

22. Titles: IT Ops? DevOps? SRE?
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 22
IT Operations DevOps** SRE
Data Center App focused (typically) App Automation (70%)
ITIL Agile Agile
Uses a PC Uses a Mac Runs Linux

23. Tools of the trade(s)

24. Mobile/Web App Middleware Database Server Network Storage
Today’s enterprise tools exist within silos
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 24

25. DevOps tooling
• Each team chooses what they want to use
• Creates highly fragmented and differing levels of visibility
• Need to maintain each tool
• Silos begin to exist between teams
• Sharing and working off data is key, what data is correct?
If you have legacy and modern systems or bimodal
it’s even worse
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 25

26. Monitoring tooling proliferation
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 26

27. The tool or technology huggers
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 27

28. Difficult to connect the dots without context
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 28
Mobile/Web App Middleware Database Server Network Storage
CheckoutTransaction
“Network 97%”“Slow SQL query”“JVM perf issues”“Checkout is slow”
?

29. No end-to-end perspective No situational awareness
Long time to troubleshoot and resolve issues
Escalate
Escalate
Time
Resolution
War Room
L2 Troubleshoot
L1
Troubleshoot
“Checkout is Slow”
Reactive problem identification
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 29

30. Next steps
Tactical Steps:
• Work with your business counterparts to understand their goals and
how you can iterate more quickly with them to accomplish them
• If you haven’t begun your journey select a single product to
experiment with or find a team which is doing this, and coach them
• Start to understand and document your current and future tooling
and toolchain strategy
Keep in Mind:
• Hire agile coaches or those who have built these teams before
• Hire technologists with development backgrounds who may have
operations experience
• Begin considering a shift in your organization to match your goals
for business agility
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 30

31. Next webinar topics
APPDYNAMICS CONFIDENTIAL AND PROPRIETARY 31
1. Microservices and the implications it
has on DevOps within the Enterprise
2. When undergoing a DevOps
transformation, what should be built
as a shared or centralized team versus
a decentralized team
3. How to gather and share KPIs and metrics
within DevOps practices

32. Thank you