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DevOps Journal: Article

DevOps Drives Growth, Profits and Business Performance

DevOps report reveals that enterprises with high-performing IT organizations are twice as likely to exceed profitability goals

Puppet Labs on Wednesday released the Puppet Labs 2014 State of DevOps Report. This year's third annual DevOps report is based on the largest and most comprehensive survey to date, with more than 9,200 IT and software development professionals responding from companies of all types and sizes, from around the world.

This year's findings revealed that companies with high-performing IT organizations are twice as likely to exceed their profitability, market share and productivity goals. The analysis also revealed that for the second consecutive year, DevOps practices are being adopted at accelerated rates and high-performing IT organizations deploy code 30 times more frequently with 50 percent fewer failures.

To produce the survey and report, Puppet Labs partnered with Gene Kim, author of The Phoenix Project: A Novel About IT, DevOps, and Helping Your Business Win; Jez Humble, co-author of Continuous Delivery and Lean Enterprise and Principal at ThoughtWorks; and Dr. Nicole Forsgren Velasquez, a professor at the Huntsman School of Business at Utah State University and an expert on the impacts of IT, knowledge management and user experience.

Analysis of the survey results also showed that IT performance strongly correlates with well-known DevOps practices such as use of version control and continuous delivery. Organizations practicing DevOps benefit from a cycle of continuous learning and improvement that helps them move ahead of the competition.

"This year's survey is the first rigorous study to confirm that DevOps practices and strong IT performance can drive real business value," said Nigel Kersten, CIO of Puppet Labs. "Now we have the data to back up our contention that IT should be treated as a strategic asset to the business, not a cost center. Organizations that get this are going to pull ahead of competitors, getting their products to market faster and responding more quickly to customer feedback."

Other key findings from the Puppet Labs 2014 State of DevOps Report include:

  • Organizational culture and climate for learning: Open information flow, cross-functional collaboration, shared responsibilities, learning from failures and new ideas are at the heart of DevOps, and correlate strongly with high organizational performance.
  • Job satisfaction: A surprising finding was that job satisfaction is the number one predictor of organizational performance and that DevOps practices increase employee satisfaction, leading to better business outcomes.

"The best global organizations employ IT practices that enable agility and reliability, by breaking down silos and actively encouraging collaboration across boundaries. They sustain a level of IT performance that hardly seems possible to the rest of the world," said Gene Kim. "The findings show that DevOps helps businesses win, enabling them to exceed profitability, market share and productivity goals -- all of which are very likely reflected in company stock market performance, as measured by market capitalization growth."

The survey report is available for download at: http://puppetlabs.com/2014-devops-report.

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