Engineering and “the business” don’t always speak the same language. That’s why in this blog post and webinar, we want to show you how to bridge the gap using the language “the business” understands: cold hard cash.
When talking to the business value, here are four areas that DevOps provide value for your organization with associated calculators so you can get an exact value to share with your organization.
1.) Avoiding downtime
Avoiding downtime is vital, but how do you calculate the value? A different way to think about it is how much value uptime provides. In many organizations, if engineering is down, sales, marketing, etc. also cannot do their jobs. So if we look at Annual Revenue/Minutes in a year = $$/minute, we see the value of mere minutes of downtime. Enter your own numbers here:
Yes, this is a simple calculation, and some may say it is an overestimate. But consider that this could actually be an underestimation because this does not factor in the perceived lack of reliability customers experience during this downtown and therefore, the future ramifications it could have on your business.
2.) Deliver Faster
If you want to improve your uptime, you should also improve your code release time.
Every software change has a value associated with it and every line of code an engineer writes delivers business value. But that code has to be delivered. If it is sitting and waiting to be deployed, it is rapidly decreasing the value of that change.
For example, if there is a code change that is going to save the business $100M, and you deliver the code 3 days faster than planned, you made the business an extra $822K.
Estimating all the business value you have in a year like we have done above can be challenging. To get a rough estimate, take the total cost of your engineering salaries *8 (this was calculated from a sample set of organizations; if you are at a higher-performance organization this multiplier would be higher.)
Use the calculator below to do your own calculation:
3.) Saving Engineering Time
Engineers teams are usually one of the most expensive parts of a business. Their time is valuable, so if you can cut just 5 min off build times, you can save a large amount of money.
Enter your estimates into the live calculator below and see for yourself:
4.) Reducing Infrastructure Overhead
30% of infrastructure budgets are spent on idle machines, so moving to Cloud-Native technologies can help you reduce your overhead cost and in the process, you can reduce downtime and time to delivery. More ways to save:
- Spot Instances: Can reduce cloud costs 90%, requires great architecture and failover
- Auto-scaling: Add nodes as needed, toss when done
- Tighter Packing: Packing smaller microservices is more efficient than horizontally scaled monoliths
Build vs. Buy
A CI/CD platform like Codefresh can help you reduce your lead time to deploy and in turn save you money. In fact, we have built our entire platform for this purpose with features like built-in caching, shared volumes, live debugging, and numerous other features to help you deploy faster. Use this Build vs Buy calculator to see how much you could save.
Open your FREE Codefresh account today with UNLIMITED builds at Codefresh.io.