reducing keep the lights on cost: one project at a time
DESCRIPTION
Do you sense the weight of your created apps? That's the Keep The Lights On Cost, and every application in your portfolio has one. This presentation illustrates how to deal with your applications before they become legacy nightmares.TRANSCRIPT
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Reducing "Keep The Lights On" cost One Project At A Time
Fábio Silva
May 8, 2013
http://bit.ly/reducingktlo
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Who am I and why should listen to me?
My name is Fábio Silva, 37 years old. 24 years experience in IT
Currently: IT Manager at OutSystems… Managing KTLO
Past:
• IT Director at a Financial Institution… Worried with KTLO for 5 years
• IT Manager at a Microelectronics Company… Worried with KTLO for 10
years
• Just a baby at age 14 developing applications and playing with networks
for 9 years
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What Exactly is KTLO
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Refresh – Pace Layered Framework
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Tale of Two Applications
• Real Time Data Aggregator and Distributor
• Trade Limit Management System
They have about the same complexity
(in terms of Function Points)
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Case #1 – Real-Time Data Aggregator
Real Time Data Feed
Retail Department B2B Channel Internet
Channel
-Windows 2003 Server
-SQL Server 2000
-TIBCO BW 5.3
-Sun Solaris 2.6
Real Time Data Aggregator
and Distributor
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Case #1 – Lifecycle and Budget
IT Spending Policy
55%
20%
KTLO
NEW
100%
230k€
Year 0
30%
69k€
Year 1 Year 2
24,8%
57k€
25,2%
58k€
Year 3
91%
210k€
Migration
-Windows 2003 Server
-SQL Server 2005
-TIBCO BW 5.8
-Sun Solaris 10
Year KTLO (% of IT Budget)
Year 1 69k€+70k€=139k€= 60%
Year 2 57k€+70k€=127k€= 55%
Year 3 58k€+70k€=128k€= 56%
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Case #2 – Trade Limit Management
Company Internal
Rating System
B2B Channel Procurement Department
-Windows 2003 Server
-SQL Server 2005
-TIBCO BW 5.6
-Outsystems Platform 4.2
Credit Rating
Provider
Company
Catalog
(SaaS)
Trade Limit Management
System
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Case #2 – Lifecycle and Budget
IT Spending Policy
55%
45%
KTLO
NEW 100%
60k€
Year 0
5%
3k€
Year 1 Year 2
3,3%
2k€
5%
3k€
Year 3
10%
6k€ Migration
-Windows 2008 R2 Server
-SQL Server 2008
-TIBCO BW 5.7
-Outsystems Platform 5.1
Year KTLO (% of IT Budget)
Year 1 3k€+2k€=6k€= 10%
Year 2 2k€+2k€=4k€= 6,6%
Year 3 3k€+2k€=6k€= 10%
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What did we learn with these two stories
Case #1
100%
230k€
Year 0
30%
69k€
Year 1 Year 2
24,8%
57k€
25,2%
58k€
Year 3
91%
210k€
Migration
100%
60k€
Year 0
5%
3k€
Year 1 Year 2
3,3%
2k€
5%
3k€
Year 3
10%
6k€
Migration
Case #2
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Takeaways from the case study
1. Systems of Differentiation outlive the infrastructure.
2. Beware of fast-changing businesses or departments. Build to Change
3. Watch for Non-Functional Requirements.
4. Keep the whole Application Lifecycle in mind.
5. Look forward with care. Choose underlying technologies carefully.
6. Keep KTLO on top of your mind.
7. Find the balance between in-house knowledge and outsourcing models.
Think about your change management
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Remember KTLO? – What can we do?
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Tips to lower your KTLO costs
1. Choose Build to Change Technologies.
2. Be Aggressive. If possible, don’t Migrate. Cut Legacy.
3. Be friends with your Shadow IT’s. Do it Sooner than Later
4. Attack the Edges first.
5. Leave the Systems of Record alone.
6. Accept Technology Standards. No Wars please. Work with CIO’s with Facts.
7. IT is a Business Partner. Be sure to understand the Processes.
8. “Do Less, Do it Really Well”
Pre-Requisite: Do you have an IT Application Map?
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Thank you Happy KTLO reducing!
Fábio Silva
May 8, 2013
http://bit.ly/reducingktlo