Digital enterprises are taking the world by storm, with organizations looking to benefit from rapidly expanding cloud computing services, mobile computing, automation, and Internet of Things (IoT). In a bid to enhance productivity and profitability, meet changing customer needs, deliver better quality products, automate software delivery chain, and increase operational efficiency between teams, organizations have been turning to DevOps solutions. Demand for process automation is poised to create several growth opportunities in the DevOps market.

Traditional software development models are becoming obsolete and are unable to meet evolving needs of customers. Introduction of new technologies and processes such as ITIL (Information Technology Infrastructure Library) and Agile and growth in cloud services have allowed organizations to increase stability and reliability, streamline workflow, and enhance the ability to scale, all of which has radically transformed the practice of information technology. DevOps solutions are gaining momentum and witnessing demand from enterprises of all sizes across various verticals; this is slated to propel the market to expand at a strong CAGR of 18.6% from 2017 to 2025, according to Grand View Research. The market is estimated to reach USD 12.8 billion by 2025.

U.S. DevOps Matrket, By Enterprise, 2014 - 2025 (USD Million)
Source: Grand View Research

Significance of Automation in DevOps

One of the critical aspects of DevOps is automation. Traditional development and deployment have proven to deliver slower and less flexible working environments, resulting in poor quality and buggy software releases. However, organizations find it challenging to adopt DevOps, owing to highly complex and distributed enterprise environments. Automation helps reduce time taken by developers to complete mundane and repetitive tasks, thereby increasing production and reducing friction between critically interrelated functions that are not appropriately orchestrated.

To ensure a successful implementation of DevOps automation, organizations must evaluate their business processes with respect to what to automate, how, and extent of automation across distributed infrastructure. Organizations must consider all divisions, teams, silios, legacy technologies, and processes to strike a balance in automating processes.

Automation of a specific process across an enterprise with limited knowledge of tools can result in siloed automation and use of manual ad hoc processes. With no defined framework for the desired state of automation of activities and processes, organizations can deploy DevOps to enable their own desired state of automation without a structured approach. Multiple vendors are involved in the management of different stages of an application and having their distinct process for development life cycle makes it challenging to develop a standardized procedure.

Hence, standardizing KPI metrics, processes, practices, governance, and enterprise-wide control over DevOps implementation in the absence of a centralized DevOps team becomes exceptionally challenging. Most organizations and their IT teams still lack training in DevOps on tools, processes, practices in continuous integration, testing, deployment, and operations, which hinders industry-wide collaboration to define a standardized DevOps practice. With DevOps implementation being unique for each organization, there isn’t a standardized performance indicator that can accurately measure the ability to develop and deploy with speed and stability.

DevOps as a Cloud Deployment Model

A study conducted by cloud management provider RightScale suggests that in 2017, 87% of enterprises across the globe adopted some aspect of DevOps principles. However, due to lack of technical know-how, complexities of deployment, and lack of standardization, only 30% of enterprises have been able to adopt company-wide DevOps solutions. Most SMBs adopt cloud-based infrastructure and cloud data storage solutions for various production environments, service delivery, and storage of various customer data. This rapid adoption of cloud services and solutions has instigated the growth of DevOps as a cloud deployment model. Increasing penetration and ownership of technologies across consumer bases will lead enterprises to increasingly adopt Social, Mobile, Analytics, and Cloud (SMAC) to digitally support critical infrastructure and business processes across cloud deployments.

North America DevOps Market Revenue, By Application, 2016 (%)
Source: Grand View Research

DevOps has found application in a wide range of industries, from healthcare and manufacturing to IT, telecommunications, and banking, financial services, and insurance (BFSI). The IT industry has been witnessing budget constraints associated with software development and has been looking for innovative solutions to modernize the IT domain and remain competitive in this digital age. For instance, Infosys partnered with McCamish Systems to develop and implement a scalable and flexible BPM solution automating several manual processes and mitigating risk of human errors. It also reduces the average handling time by 80%, potentially saving millions in operational costs.

The BFSI sector has also witnessed a surge in adoption of DevOps solutions and services. For instance, Infosys helped a global bank implement DevOps to improve service quality, enable faster software releases, and ensure cost optimization. Implementing Agile and DevOps solutions from Infosys enabled the financial institution to reduce its software release cycle from 12 weeks down to 3-4 weeks. It also improved reliability by 25% as well as achieved operational cost savings of USD 2 million.

Listed below are some of the ongoing trends in the IT and BFSI industries:

  • The IT industry has been one of the earliest and largest adopters of DevOps tools and solutions
  • These tools help achieve faster deployment of software products, release multiple modules, and achieve higher operational benefits
  • Software development firms are investing in automation solutions for operational processes
  • This helps in management of software development lifecycle, improving software quality, enabling automatic testing, enhancing customer services, and meeting evolving business needs
  • Growing penetration of smartphones and connected devices for banking and other commercial transactions has aided the adoption of DevOps in the BFSI sector
  • Need to rapidly deliver digital services and solutions to improve customer experience and adhere to evolving regulatory mandates will also drive usage of DevOps solutions across banks and financial institutes

One of the most important things that can ensure a successful digital business is being able to adopt and adapt to innovation and change. The IT sector has been a strategic driver of innovation, agility, and digitization, and DevOps has revolutionized software delivery within digital enterprises across industry verticals. It is vital to stay relevant in such a highly competitive business environment and as a result, companies have been making necessary changes to their business processes as well as overall organizational structure. Even though the transition to DevOps can be challenging, it is evident that the advantages outweigh the hurdles.

This article’s author name is Abhishek Bhattacharya. Abhishek currently works as a Research Analyst at Grand View Research in the Information and Communication Technology (ICT) team. He has more than theree years of experience in market research, business intelligence, & consulting industry. He has also had a year’s experience working in the client servicing sector. His primary focus is on assessing new market opportunities, statistical modeling, market sizing and forecasting analysis, and evaluating competitor strategies. He has expertise in various industries that include enterprise software solutions, next-generation technologies, general industrial manufacturing, and ICT technologies.

He holds a bachelor’s degree in Information Technology, from KIIT College, MDU University, and Master’s Degree in Management of Information Technology, from The University of Nottingham, UK.

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