Every company's IT stakeholders set different priorities for realizing value from software delivery. In this webinar, Skytap helps frame this discussion around four key dimensions of value that customers can realize through the use of dev/test clouds.

1. Measuring Four
dimensions of value
To justify cloud-based dev/test
environments
Andy Wright | Skytap Value Assessment
Presented June 25, 2014

2. Andy Wright
SW Engineer turned MBA
Marketing Head
Measuring value @ Skytap

3. AGENDA
Why do we need to measure value
Top reasons why cloud is adopted for
dev/test
How to measure and quantify value
Summary, Q&A

5. Most IT investments require a business case and
ROI for anything > $50K
Best Practice – measure & justify anything you want to continue using
• Mitigate risk at contract renewal time
• Defend against cheap replacements
• Apples to apples comparison against other alternatives
• Sensitivity analysis: know what really matters

6. Top
Reasons
① Stop waiting for access
② Focus on development and test
③ Ability to experiment and innovate
④ Stop the sprawl
⑤ Eliminate “works for me” collaboration

7. Four dimensions of value
That you can measure today
Infrastructure Cost
Labor Efficiency
Quality
Productivity
1
2
3
4
Eliminate sprawl, reduce future capital and operating expense
Automate manual environment provisioning, configuration, preparation, maintenance
Quality in consistency – rework and production quality costs
Reduce overhead, adopt parallel release development & spark innovation

8. Dev/Test Infrastructure Costs
Infrastructure Cost Considerations
IT Management
OpEx
Power & Cooling
OpEx
Software Licenses
CapEx
Servers & Networks
CapEx
IT Management
OpEx
Service Fee
OpEx $

9. Infrastructure is hard dollar
Don’t let it be the only deciding factor
Automation is the larger value
• Transitioning infrastructure is not a means to an end
• If self-service is allowed, cost controls need to be in place
• Focus on the real benefits for dev/test teams

10. Labor Efficiency
Value of Automation and Self Service
• Repeatability
• Consistency
• Fewer people Involved in the process
• Innovation on-demand
% Time
Reproducing
Defects
% Time
Maintaining
Environments
% Time
Provisioning
& Configuring

11. Quality
Cost of Rework
Defect Distribution
Code
Unit
System +
Regression
Integ. UAT / RC
Release/Pro
duction
19%
51%
9%
21%
$ $$ $$$ $$$$ $$$$$+
Measuring defect cost
• Who is involved at
each stage?
• What is their time
invested?
• What is the value of
their time?
• All defect found in
any phase must go
through all previous
phases
What % of defects were due to environment parity issues?

12. Quality
Production Quality Costs
Generally well known
Differs between applications
• Revenue Impact
• SLA Fees
• Employee Productivity / Downtime
Production Quality Costs
Formula for production defect reduction
# defects in production
% of those considered major / critical
% of those due to environment parity
Value = Defect Reduction * Avg. Cost per Defect

13. Productivity
Getting more with less
Look to the PMO to identify how output is measured today (TTM, Quality,
Technical Debt)
Measure the value of on-demand, identical environments.
• Parallel Development
• Environments for current and future releases
• Exploratory coding & refactoring
• Upgrade testing

14. 4 Dimensions Summary
Efficiency Quality
Infrastructure
Cost
Productivity
• Justify to protect investment
• Use defendable metrics
• Infrastructure is a small %
• Dev/QA Efficiency
• Software Quality
• Productivity/Innovation

15. Full On-Demand Webinar
Click Here: http://bit.ly/cloud-
value