Meeting the Challenge of Enterprise Cloud Development: 7 Best Practices for Hybrid Cloud

Meeting the Challenge of Enterprise Cloud Development:

7 Best Practices for Hybrid Cloud

June 2012

TABLE OF CONTENTS

About Saugatuck Technology

Saugatuck Technology, Inc., provides subscription research and management con-sulting services focused on the key market trends and disruptive technologies driv-ing change in enterprise IT, includdriv-ing Software-as-a-Service (SaaS), Cloud Infra-structure, Social Computing, Mobility and Advanced Analytics, among others. Founded in 1999, Saugatuck is headquartered in Westport, CT, with offices in Fal-mouth, MA, Santa Clara, CA and in Frankfurt, Germany. For more information,

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About this Report

This report is based on independent research developed and conducted by Sauga-tuck Technology Inc., who is solely responsible for the analysis, conclusions and recommendations presented in this report. The publication of this report was funded by CollabNet.

Introduction 1

The Hybrid Cloud 1

The Development Challenge 2

Managing Complexity at Deutsche Post DHL 4

The Seven Best Practices 4

Meeting the Challenge 6

Figure 1: Business Software Deployment Preferences 2012 - 2016 2 Figure 2: Enterprise Cloud Development Triad 3 TABLE OF FIGURES

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At Saugatuck, we’ve been watching the Cloud evolve for the past eight years from a fringe, early-adopter resource to where it is today, a mainstream option for most business solutions. Today we are witnessing a declining interest in purchasing on-premises software. Venture capitalists no longer invest in traditional software ap-plications and have not done so for the past several years. Cloud solutions are now flourishing in every solution category and, though still maturing in ERP and other core financial categories, the time is near when the Cloud can meet every applica-tion software need.

Not only have the Software-as-a-Service Cloud solutions mushroomed, we have also witnessed the accelerating growth of infrastructure offerings and platforms for software development, integration, collaboration, mobility, social networking and data analytics. Moreover, an emerging and disruptive master architecture is now forming to enable the Boundary-free Enterprise™ that Saugatuck first foresaw in 2008.

Every ten to fifteen years a new master architecture emerges that provides busi-nesses and individuals the ability to get their work done in a new computing para-digm. Usually the computing paradigm is based on a technology platform such as mainframe or client / server or the Cloud. However, now we are witnessing the emergence of a new master architecture that is not based on a single computing-platform paradigm as in the past. Rather, it is based on multiple technologies and platforms that build synergies among themselves through loosely-coupled and op-portunistic exchanges of value.

The Boundary-free Enterprise™ will not be constrained by organizational bounda-ries and firewalls, but can enable a new model of work and facilitate new business relationships that are not bound by time or place. In fact, today’s businesses and individuals are already less encumbered by constraints of time and place, doing their work through a new Cloud-based array of time- and location-independent computing capabilities – collaboration, mobile, social and data analytics plus inte-gration – that make the Boundary-free Enterprise™ possible. Inteinte-gration is the necessary glue that links these various platform capabilities together and joins them up with on-premises data assets in data centers where mission-critical money sys-tems will continue to operate behind highly-secure firewalls.

As business enterprises evolve their understanding of the capabilities of this emerg-ing master architecture, each one must find its own way of createmerg-ing an anytime / anyplace hybrid-computing network that will realize its competitive aims. While the challenges of navigating this journey are significant, the benefits of the Bound-ary-free Enterprise™ are transformative. And it is the challenge of Enterprise Cloud Development to transform today’s enterprise into one that is essentially boundary-free, virtually integrated with its suppliers, buyers and distributors world-wide and with its customers and potential customers.

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The evolving hybrid Cloud is built on the synergy of Cloud and on-premises assets. As the Boundary-free Enterprise evolves to express the operational strategies of any given line of business, the IT organization has a new and challenging mission. Ac-quiring Cloud assets and implementing them, integrating them with other assets in the systems portfolio to exploit their synergies, IT has a more proactive role because

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of this transformation – to assemble acquired assets, integrate where possible and develop other assets as needed to fill in the gaps

It is more than clear that business and IT executives envision this evolving hybrid Cloud. In the 2012 Saugatuck Cloud Survey, we asked enterprise executive buyers from business units and from IT to express their preference for deploying new business software in three timeframes. Survey respondents were asked to indicate whether they would prefer on-premises software, hybrid-Cloud or pure-play Cloud deployment for their newly-acquired business solutions. They were asked to ex-press these preferences as if buying today in 2012, in two years in 2014 and in four years in 2016. As Figure 1 below indicates, buyers expressed different preferences for each of the three timeframes (See Figure 1- Business Software Deployment Preferences 2012-2016).

Figure 1: Business Software Deployment Preferences 2012-2016

In 2012, the preference for acquiring on-premises software is still at 50 percent, but this declines rapidly to 18 percent in 2014 and to 13 percent in 2016 (See the blue bars in Figure 1). Meanwhile, the Cloud-based pure-play software preference rises from 10 percent in 2012 to 19 percent in 2014 and to 39 percent in 2016 (See the green bars). What is most striking, however, is the shape of the red bars in Figure 1 above. Rising from 40 percent in 2012 to 63 percent in 2014 and then falling off to 47 percent in 2016, the red bars indicate a transitional emphasis on buying espe-cially for the hybrid architecture, joining Cloud software to on-premises assets, as an interim or transitional stage in the evolution of the Boundary-free Enterprise™.

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Developing for the hybrid Cloud will be the primary activity of enterprise develop-ers over the next three-to-five years, and maintaining these Cloud solutions, inte-grations and workflows will be the mainstay of IT for a decade or more to come.

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Though the transitional spike in hybrid-Cloud procurement declines after 2014, the next wave to come is the pure-play Cloud, where an equal challenge awaits enterprise developers and their IT organizations. If any lesson can be drawn from the past, it is that architectural transitions, though gradual, are permanent, as the business IT assets that are created seldom, if ever, go away. It is estimated that not only are there a 100 million lines of COBOL still in production, but another 100,000 lines are added every month. Much of what the Cloud era ushers in will be built on the back of mainframe and client/server IT assets. Even new Cloud business applications will integrate with those legacy assets. Thus, what enterprises need most are forward-looking strategies for managing the business IT portfolio through this transition to the Cloud and to the Boundary-free Enterprise™ (See Figure 2 below).

Figure 2: Enterprise Cloud Development Triad

In order to manage the Cloud transition, our review of best practices tells us, enter-prises will need an architecture that serves, flexibly, not only current business needs, but the evolving needs of the emerging Boundary-free Enterprise™ that can exploit synergies among platforms for collaboration, mobility, social networking and data analytics. To instantiate that architecture, and evolve it dynamically, en-terprises will need a coherent toolset, designed for the task of Enterprise Cloud Development, that can enable the creation, integration, and ongoing extension of Cloud and hybrid-Cloud assets. And, to complete the triad, enterprises will need a consistent approach to ALM/Process management that makes use of current tech-niques in Agile Development and DevOps, in order to create Cloud assets and en-sure their efficiency and effectiveness in production.

Clearly there are both risks and rewards associated with meeting the development challenge. A disciplined approach to Enterprise Cloud Development embraces a target architecture based on synergy and integration, a coherent Cloud toolset as-sembled and maintained for that purpose and a consistent approach to lifecycle management, utilizing Agile and DevOps is the price of admission, table stakes, if you will. The benefits of Enterprise Cloud Development include a dynamic, flexi-ble, and synergistic solutions portfolio that is poised to compete and meet competi-tive challenges, meet regulatory requirements and return measurable financial benefits.

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The downside associated with not doing this well, or doing it partially or only in some departments and not in others, is significant: higher costs, inefficiency, vul-nerability to attack, continuous repairs, inability to respond to business needs quickly, and production failures, to cite a few examples. Building applications in the Cloud requires a disciplined approach in order to control costs, manage risks, and ensure governance and security of the enterprise.

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DHL

Deutsche Post DHL is a global mail and logistic services company with 470,000 employees in more than 220 countries and territories and revenues of $65 billion. Rapid growth paired with a strong push into online services accelerated the busi-ness demand for new software applications, and, currently, there are more than 300 active, concurrent software projects in development and maintenance going on in the mail division alone (about one-third of DeutschePost employees), most of them critical to the core business.

More than 2,000 project members have been working on those projects in cross-functional teams, spanning geographies and organizational boundaries based mostly in Germany, but also from Brazil, Russia and India. Suppliers, contractors, and professionals from over 100 providers also deliver essential services including development and testing, maintenance and IT operations services. To coordinate this complex development environment, Deutsche Post identified the need to drive efficiencies through better governance and oversight, and by automating and stan-dardizing application delivery.

Saugatuck has assessed the Deutsche Post approach and has identified key best practices that we believe will lead to successful Enterprise Cloud Development. It is likely that many, in fact most, organizations will not be challenged with the complexity, geographic reach or inter-organizational breadth that faced Deutsche Post in managing its rapid growth. Nevertheless, these best practices are ideally suited to the complex challenges of developing across multiple platforms – col-laboration, mobility, social networking and data analytics among them – that all must be managed in assembling hybrid Clouds of the new master architecture to enable the Boundary-free Enterprise™.

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1. Make use of Cloud-based developer toolsets and lifecycle management envi-ronments whenever possible and appropriate

Saugatuck Insight: The use of Cloud resources, for example a

development-Platform-as-a-Service (dPaaS) offering, is not only convenient, when operating across geographies and when collaborating with external services providers, but also helps avoid making expensive capital investments by shifting CAPEX to OPEX.

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2. Manage central provisioning of all necessary and updated information regard-ing an IT system for all participants along the lifecycle

Saugatuck Insight: Information is the lifeblood of a smoothly-operating

develop-ment organization, especially one that can support multiple teams in different or-ganizations with differing responsibilities – and also diverse external resources – spread across the globe.

3. Provide simplification and standardization of project setups

Saugatuck Insight: Disparate agile tools and cloud services provide isolated

work-group quality and time improvements, at the expense of enterprise integration, cost escalation, governance, and visibility. Gain both workgroup agility and enterprise governance by standardizing on a cloud development platform that supports con-sistent agile processes that meet the needs of both your teams and executives. In addition to the improved productivity that standardization of project setups brings, there are several other quantifiable rewards to be realized: reuse, consistency, de-pendency management, scalability and lower overall maintenance costs.

4. Reduce costs by eliminating redundancy, managing a cohesive architecture across all cloud and IT systems with focus on enabling access to reusable soft-ware components and IP assets including open source

Saugatuck Insight: While the use of open source alone can yield clear financial

benefits and ensure higher-quality systems assets, managing a repository of soft-ware assets and metadata can speed the development process by eliminating costly rework and by avoiding reinventing the wheel.

5. Implement Agile ALM and DevOps with 3 key elements for control:

 Process control over entire lifecycle

 Ensure development controls for quality and efficiency

 Centralized platform with operations-centric controls across the

appli-cations lifecycle

Saugatuck Insight: Control over the lifecycle process, embracing the rapid

devel-opment approach of Agile and the collaboration between developers and operations of DevOps, ensures not only that development will be quick and responsive, but also that when transitioned into production, system assets will operate as effi-ciently and effectively as designed.

6. Develop and manage fully-automated handover process leveraging test and production infrastructure from choice of public and private clouds

Saugatuck Insight: Similar in benefits to standardization of project setups,

fully-automated handovers enable improved productivity, consistency and transform the test and production transitions from an art into a science that can be measured, im-proved and managed.

7. Assure efficient provider management in a multi-sourced environment, for ex-ample, an instance of CollabNet’s TeamForge hosted at a T-Systems private Cloud, integrated to Amazon for elastic build-and-test resources

Saugatuck Insight: When multiple external resources are brought together across

private and public Clouds, successful development depends upon proactive man-agement of solution providers, their service levels and resources for support.

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Managing the hybrid Cloud through ongoing, continuous delivery of development assets, the integration of Cloud solutions, both developed and subscribed – and managing their ongoing change – is a truly complex challenge. Enterprise Cloud developers can meet that challenge, while boosting productivity and quality and reducing capital investment, all at the same time. Ultimately, Enterprise Cloud de-velopers need a coherent platform which includes capabilities to develop, test, manage and maintain applications in the Cloud, a comprehensive lifecycle man-agement methodology to ensure consistency and transparency, and a common tar-get architecture that can be built up, brick by brick, from multiple ongoing project efforts. Putting these three key strategies in place has enabled companies of all sizes – whether a large and complex business enterprise, or an emerging Cloud startup, or an international systems integrator coordinating dozens of Enterprise Cloud Development projects – to build and implement new categories of Cloud-based applications, including collaboration, mobile, social and analytics, yet with-out the upfront capital costs normally associated with tooling up a new IT develop-ment capability.

Enterprise Cloud Development is in its early stages. Looking out across the next several years, as we witness the rise of the hybrid Cloud, and the later shift to the pure-play Cloud, one thing is very clear. A major transformation is now underway, as what has historically operated behind firewalls is migrating to the public Cloud, to private Clouds and internal private Clouds. Across these Clouds, business solu-tions must interoperate, share data and deliver value to customers, suppliers and other business partners. Not only across Clouds, but across geographies, organiza-tions and work environments, the emerging Boundary-free Enterprise™ will inte-grate and interoperate through collaborative, mobile, social, and analytics capabili-ties and applications with no single platform, but rather an exchange of value across these multiple platforms.

The maturing of Enterprise Cloud Development is inevitable. Yet already we can see the guidelines necessary to success in the hybrid Cloud and beyond. The seven best practices itemized in this thought leadership paper, are seven proven ways to realize success in developing for the Cloud. The risks and rewards of Enterprise Cloud Development may seem, on the one hand, daunting, and on the other, diffi-cult to attain. Meeting the challenge is really just a matter of following these proven practices, measuring the results, making improvements where possible and managing the toolsets, the lifecycle methods, and the target architecture, as the Boundary-free Enterprise™ continues evolving in the Cloud.

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Over the last decade, CollabNet successfully pioneered collaborative and distributed agile software develop-ment in the cloud for many of the world’s largest organizations. We see Enterprise Cloud Developdevelop-ment as the evolution of basic cloud development that enables enterprises to embrace the cloud in a hybrid way at their own pace. The CollabNet Blueprint for Enterprise Cloud Development maps a path that enables organizations to leverage the benefits of the hybrid cloud in five steps. At each step, we offer a combination of tools and ser-vices that deliver incremental value and collaboration, and positions you for the next stage in the process. The CollabNet 5-step blueprint lines

up quite well to the Saugatuck “7 Best Practices for the Hybrid Cloud”. The Saugatuck Best prac-tices 1 and 2 line up well with Col-labNet step 1, practices 3 and 4 with step 2, practices 5 and 6 with steps 3 and 4, and practice 7 with step 5. CollabNet’s Enterprise Cloud De-velopment approach speeds cycle times and controls costs, while im-proving enterprise visibility and maintaining compliance standards. We’ve seen customers achieve any-where from 60 to 80%

improve-ments in cost savings, productivity, and time-to-market acceleration through the adoption of Enterprise Cloud Development.

To implement Enterprise Cloud Development, CollabNet has helped thousands of organizations establish private shared cloud development platforms, running on their own infrastructure or on infrastructure hosted and managed by CollabNet. This platform is built around TeamForge, the leading solution for end-to-end application lifecycle management. The TeamForge open architecture lets you recoup existing investments in your corporate tools, including Subversion, founded by CollabNet. It also provides easy plug-in to a wide choice of third party tools and build, test, and deployment clouds, both on-premise as well as public. CollabNet helps enterprises leverage public compute assets, including those provided by CollabNet itself. Our hosted, public cloud development platform, dPaaS, enables organizations to Develop and Deploy in seconds, using a wide range if tools, application frameworks, or run clouds. You can deploy code to your public and private cloud, or to your favorite IaaS and PaaS cloud providers.

CollabNet also provides hybrid cloud services that connect CollabNet's on premise products to our Cloud-Forge dPaaS Platform. Our currently available hybrid cloud service, CloudBackup, provides seamless data archiving, redundancy, and migration capabilities for any on premise user of TeamForge or Subversion Edge, without leaving their own desktop environment.

CollabNet’s implementation, consulting and training services are based on a decade of practical experience in getting workgroups on boarded quickly and then guiding organizations to a coherent Enterprise Cloud Devel-opment strategy to accelerate their enterprise application develDevel-opment and delivery.

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