Driving Business Agility with the Use of Open Source Software

Driving Business Agility with the

Use of Open Source Software

2

Speakers

Peter Vescuso

EVP of Marketing & Business Development Black Duck Software

Ed Tilford

Head of Open Source Governance Thomson Reuters

Melinda Ballou

Program Director,

Application Life-Cycle & Executive Strategies

Copyright 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Driving Business Agility

with Open Source Software

Melinda Ballou

Program Director, IDC

Application Life-Cycle Management

& Executive Strategies Service

Industry Highlights:

Disruptive Trends Driving OSS Adoption

 Diverse deployment demands for mobile, cloud, embedded drive corporate need for consistent standards, business dynamism is enabled by OSS leverage

 Organizations re-invest, seeking to do more with fewer resources with financial and staffing constraints; leveraging efficient approaches to restore and sustain high

performing, timely, business-critical software benefits from OSS potentially.

 Complex sourcing/off-shoring plus use of open source need strong teaming, effective code management, testing, and metrics enabled by automation & governance; Services driven environment (SaaS/cloud, Devops emergence) requires management.

 Global economic competition and local compliance across geographies demand quality, change and portfolio management, adaptability and rigor, OSS standards.  Flexible development paradigm with services creation increasingly drive technology

and business collaboration – strong agile emergence also drives & benefits from OSS  Emerging security issues (as driver) and virtualization/cloud (as enabling technology)

for OSS adoption; ad hoc approaches unsustainable – external code use necessitate visibility

 End-user experience and business impact challenges of rich Internet, mobile, embedded, with social media collaboration/community and OSS opportunities

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• Companies must oversee software development yet have little

visibility into origin & policy. Open source software (OSS) provides opportunities for efficient code creation, yet strategies to manage open source remain woefully inadequate

• OSS makes up 30% or more of code at major G2000 organizations and is increasingly looked to as a resource

• Complex sourcing and geographically dispersed teams drive the need to collaborate well & managed dispersed projects

• These disparate sources of software tend to be fractured organizationally and geographically.

• Islands of desktop, mobile, cloud and other platforms aggravate this coordination problem

.

Establishing OSS Management

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Open Source Software Drives Innovation

Prediction and Evidence

Prediction: Open Source Software will move beyond mainstream to

drive software innovation in key areas for 2012/14 with evolving use for applications and emerging platforms in new vertical areas (e.g., automotive, financial) while augmenting development across cloud, mobile, Big Data

Evidence

Corporate sanctioned adoption brings increasing leverage due to competitive use and innovation, low/"no" cost points, strengthened capability and grass roots developer adoption

OSS in 2012 drives innovation for vertical platform and app evolution (e.g., automotive/GENIVI), also mobile, cloud, Big Data

Resource and market volatility will further evolve enterprise acceptance and OSS leverage in embedded environments

Complex sourcing pushes urgent, fresh demand for OSS management, governance and automation as business critical software increasingly relies on OSS in 2012/13

Nov-12 © 2012 IDC

Open Source Software Drives Innovation

Impact and Strategy

Impact:

 As open source drives new and emerging areas with combined projects and standards (like automotive Infotainment platforms and apps), engagement and participation become mandatory for business success

 Developers, ISVs, ALM, SIs & OSS providers have new opportunities  End-user organizations will face new OSS app lifecycle, compliance

pressures, challenges as well as excellent OSS leverage for innovation

Strategy:

 Executives, managers, and development teams must drive coordination and decision making in this complex, dynamic environment.

 ALM tools, mobile, Big Data, cloud providers and vertical manufacturers are and will leverage OSS capabilities and components 2012/14+

 ALM governance and management become key as business innovation relies increasingly on OSS; quality, change management focus needed  End-users should establish and vigorously enforce updated OSS policies  Established commercial tools vendors should make OSS governance,

management and/or partner support available ASAP Source:/Notes:

“Quality Gap”: High Cost of Failure

Poor Quality = Increased Business Risk

Lost Revenue

($$$$$)

Nov-12

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Goals of Effective IT/Business

Alignment

Innovation:

Compliance:

Complexity, Cost & Agility

Drive Adoption

N = 200

Source: Custom Quality Survey, IDC, 1H 2011

QC1. MEAN SUMMARY TABLE – How important to your organization are the following factors as drivers in the adoption of software quality automation.

2.1 2.2 2.3 2.3 2.0 2.3 2.5 2.9 2.3 2.0 2.2 2.3 1.0 2.0 3.0

Business consequences of poor quality code design (impact of production problems)

Increased costs due to constant application failures Improvement in software development decision and

planning process

Lowering of maintenance and performance costs and resource impact (detection and MTTR)

Internal and external customer satisfaction Fit to existing systems and standards Compliance initiatives (SOX, JSOX, Basel II) Offshoring/Outsourcing oversight and management Resource constraints (efficiency, productivity improvement

and resource reallocation to innovation)

Security concerns Business agility/speed of competitive response/compressed delivery cycle Architectural complexity and increased resulting risk

Nov-12 © 2012 IDC

Resource Constraints in the Midst of

Complexity Create Challenges

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N = 200

Source: Custom Quality Survey , IDC, 1H 2011

QC3. Which of the following is the most significant challenge to the quality of your organization’s software development today ?

18.5% 5.5% 8.0% 6.5% 8.5% 19.0% 12.0% 11.5% 2.0% 8.5% 0.0% 0% 5% 10% 15% 20% Complexity Outsourcing Virtualization management Multi-threaded software Internal Staffing/Resources Financial resources/Budget Time to implement/Pace of change Project prioritization Poor architecture None - No hurdle Other (Please specify)

Coordinating across the Life-Cycle

Coordinating requirements, testing, and operational

performance is key across core emerging software sources

Slow response times for key business areas are problematic

Organizations should target quality life-cycle approaches

through requirements, unit test, system integration and

pre-deployment and performance testing and change management

across the supply chain

As business requirements change, a cogent supply chain

life-cycle approach enables adaptive, flexible business responses

Quality necessitates effective code and OSS management and

visible, coherent software supply chain (write and/or acquire;

find, reuse) and policy management

Nov-12 © 2012 IDC 13

Define

SLAs,

Test/

Tune

Monitor Support

DEV

Issues

Result:

Little input into specifications or development

Little leverage between development/ops of

testing/monitoring investments

Testing/tuning LATE in the cycle!

Design

Define

Develop

Support

Deploy &

Monitor

Test &

Tune

•Shared goals

•Shared metrics

•Share tests,

tools and skills

•Shared systems

•Shared software

•OSS usage

•Visibility key

Closing the Loop: Leverage Skills &

Tools for Agile, Iterative Approach

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IDC Calls to Action

• The challenges of increased complexity and high-end

development across diverse platforms increase code

problems, increase costs and drive debilitating consequences resulting from defects pre- and post-deployment

• Companies must become better educated about the business

consequences and labor costs of poor software design since optimism mask the need for change

• Organizations should evaluate OSS automation to supplement

traditional development along with appropriate process and organizational approaches

• Across industries, poorly managed and problematic software

leads to brand perception impact above and beyond individual problems – demand response

IT and Business Challenges:

Silos, Gaps

 Today’s applications are high-visibility, and carry a high

cost-of-failure -- customer self-serve, supplier/channel; key internal business applications

 “Network effect” – failure in one leads to other failures

 The need for OSS as part of quality life-cycle is key since G2000 organizations are split across groups:

– Business/users stakeholders

– Architects, Designers and Developers – QA professionals

– Operational staff

 Must extend the Quality life-cycle across geographies, life cycle phases and groups

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Summary

 Coordinate an OSS approach that targets pragmatic strategies to leverage standards and components to obtain benefits

 Evaluate your organization’s current OSS policies for OSS

application portfolio review, effective processes and automated tools adoption

 Schisms between business, architects, development, security and operations must be addressed -- IT groups and the business must build a common approach, common metrics, and common tools and practices that include OSS

 Drive towards an effective OSS strategy to help cut costs, increase efficiency and business agility, to sustain brand, address competitive challenges

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About Black Duck

Mission:

Help developers build better

software faster by harnessing

the power of open source

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Open

Source

Innovation

Number of OSS Projects

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Open Source Drives Mobile Innovation

 Over 10,000 new OSS

projects in 2011,

doubling each of the last 3 years

 Open source has

redefined the mobile

industry and is spreading far beyond… 0 2000 4000 6000 8000 10000 12000 2005 2006 2007 2008 2009 2010 2011

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Trends: Open Innovation

Then Now

22 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Average Best-in-Class

Value

 IDC: Average Global 2000 company uses 30% open source

Value of Open Source

Best-in-Class OSS Use

30%

80%

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Strategic use of Open Source

“Over 80% of the software in our handsets is open source”

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Governance and Compliance Solutions

Strategy

–

Articulate the business objectives

for use of open source

Policy & Process

–

Open source policy & management

process

Technology

–

Automate governance and

compliance

Automated Governance and Compliance

Code Build Test Plan Application development cycle Release Open source governance

lifecycle Acquire Approve Catalog Audit Monitor

Black Duck

Knowledge Base

OPEN SOURCE GOVERNANCE

AT THOMSON REUTERS

• Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals

• We combine industry expertise and innovative technology to deliver critical information to leading decision makers

• We are the world’s most trusted news organization

• We serve professionals in the financial and risk, legal, tax and accounting, intellectual property and science and

media markets

• We are a global company with operations in over 100 countries, employing approximately 60,000 people

Idea Generation Business Planning Definition Delivery Deployment Support & Measure Obsolescence

Commitment Review

F4L Review

OSS Use Registration Source Scanning

Class 1 Class 2 Class 3 Class 4 Class 1 Class 2 Class 3 Class 4

OSS GOVERNANCE OVERVIEW

OSS not approved

Remediation OSS Approved Review Ready to be Hosted Ready to Ship

• A defined policy on acceptable open source software use

• E-learning based training on open source software and the company policy

• Turn key processes and centrally managed tools

• Steering committee that oversees OSS strategy direction and implementation across technology

• Online support and resources site

• Quarterly compliance progress reporting

• Recognize that there are distinct uses of OSS and corresponding risks; avoid a “one size fits all” policy

• Know your audience

• Craft your strategy, policy, training, etc. recognizing that your audience wants (and needs) to use OSS

• Emphasize where your company stands relative to OSS use

• Continuously work to reduce impact on development velocity

• Use just enough process and automate where possible

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Questions?