In my previous post, I described the changes that Jez Humble believes an organization needs to go through to enable DevOps. In this post, I’ll describe why Jez is encouraging organizations to align around products instead of projects.
On average 29% of an IT budget is spent on new system development while 71% is spent on maintaining existing systems and adding capacity to those systems. This is because organizations do not retire applications. A lot of money is being spent on maintaining mission critical applications. Some of these applications are even running on software no longer supported by the vendor. More money is being spent on applications that have part or all of their source code missing. This is mainly because once a product is delivered to production, the project team that built it is disbanded and team members move onto different projects.
Organizations have no way to rationally decide what to retire. Everything is rolled up into one budget and there is no clear way of deciding what systems are generating value and which are not.
Amazon applies the motto “You build it, you run it”. This means the team that develops the product is responsible for maintaining it in production for its entire life-cycle. All products are services managed by the teams that built them. The team is dedicated to each product throughout its lifecycle and the organization is built around product management instead of project management.
Using this approach, teams can measure cost and value delivered per product team.
Teams can rationally determine what to prioritize in their product backlog and teams can self-manage using a lean startup methodology.
The architecture groups becomes responsible for regulating and monitoring system-level attributes
while the PMO regulates and measures to prevent “market failure” and external factor. Some Ops team members will move to work with the product teams while other Ops team members are no longer responsible for supporting the application but instead manage the infrastructure that applications run on. It is kind of like an in house infrastructure as a service with Service-Level-Agreements for the product teams.
Using a product management approach, the organization now has budgets for product teams instead of new development or maintenance. Budgets are no longer lumped together, but are instead dedicated to specific product lines. Each product team needs to make the case why their product needs funding based on the business value that it generates compared to total life-cycle cost. Using this approach, organization can now make business decisions as to which products to innovate on and which to cut or retire.
Adapted from Enterprise DevOps: Breaking Down the Barriers between Development and IT Operations @ADP East 2011