The Five Essential Truths of the Application Economy

The Five Essential Truths of the

Application Economy

Welcome to the Application EconomyWe’re in the midst of a business revolution – one where customers interact with businesses via software.Where apps have become the primary face of the business.

Where JPMorgan Chase has more software developers than Google and more technologists than Microsoft.Source: Anish Bhimani: A Leader in Risk Management at http

://engineering.cmu.edu/alumni/profiles/2013/bhimani_jpmorgan_chase.html

3 © 2014 CA. ALL RIGHTS RESERVED.

Applications dominate the mobile Web

Source: Flurry Analytics, Apps Solidify Leadership Six Years into the Mobile Revolution, April 2014

2013 20140%

10%20%30%40%50%60%70%80%90%

100%

80% 86%

20% 14%

Mobile WebApps

Percentageof time spent

4 © 2014 CA. ALL RIGHTS RESERVED.

But mobile is just part of the application economy

Desktop only

Mobile

only

Multi-platf

orm

Game co

nsole

e-Reader

Smart

TV

34%

8%

58%

40%

17% 16%

Sources: Comscore, 66 Percent of Digital Media Population in Spain is Now ‘Multi-Platform’, March 2014 Harris Interactive, Cutting Edge Technologies Supplementing – Rather than Displacing – Older Tech, At Least For Now, June 2013

Start thinking differently about your software

It’s not just an IT issue. It is a business imperative.

There are five essential truths you need to learn about the Application Economy …

#1. Every business is in the software businessHave you seen a car ad lately? It’s likely to tout applications and connections as much as styling and horsepower.

In some industries, the number of software jobs have doubled over the past five years

Manufacturing Healthcare Financial Services Retail

Software Job Growth 0.31 0.4 0.72 0.98

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Software Job Growth

Source: Burning Glass Technology at http://www.burning-glass.com/research/software-is-everywhere/

If you think your company isn’t in the software business, you’re wrong …

Banks, airlines, athletic shoe companies – you name it – are all using applications to attract and engage customers and gain a competitive advantage.

#2. Your infrastructure is now your greatest competitive advantage

IT infrastructure investment is no longer an IT decision—it’s now a business decision, made by C-level stakeholders looking for the best competitive advantage.

Google won Search with world-beating performanceGoogle built a near-insurmountable competitive edge in Search by delivering an average search time of 0.06 to 0.12 seconds.

BUT performance alone is not enough ...

Source: Google's Infrastructure is its Strategic Advantage at http://gigaom.com/2007/12/04/google-infrastructure/

11 © 2014 CA. ALL RIGHTS RESERVED.

Application quality and user experience are critical

Sources: *Aberdeen Group, Reaching the Top of the Web Performance Mountain, March 2013Digital Trends, Are you a rarity? Only 16 percent of people will try out an app more than twice, March 2013RT.com, NASDAQ longest downtime adds to woes over glitches in electronic trading, Aug 2013

25%of users will abandon a web application after just three seconds of delay*

80-90%of all consumer applications will only be used once

$500Mcost of trading losses during Facebook IPO due to ‘system problems’

also

^

#3. DevOps should be your new best practiceYou need to build and deploy software faster, more reliably, and this means DevOps,where the creation, testing, and deployment of software is a single, integrated process.

DevOps means your Dev and Ops teams can work more collaboratively to deliver the highest quality apps, with the best customer experience, in the fastest time possible, to maximize the value IT delivers.

DevOps pays big benefits

A recent survey of 1300 senior IT leaders revealed that 39% of companies have already adopted a DevOps approach.

Those using DevOps saw a 19% increase in revenue, a 20% reduction in time to market, and a 22% increase in quality.

SOURCE: “What Smart Businesses Know About DevOps”, CA and Vanson Bourne, 2013

DirecTV brought Dev and Ops closer together to:• meet their consumers’ evolving needs• provide increased flexibility around their legacy systems• decrease time-to-market on their offerings

SOURCE: Full Interview: Can a DevOps approach improve your agility and time-to-market? at http://www.ca.com/us/collateral/videos/na/full-interview-can-a-devops-approach-improve-your-agility-and-time-to-market.aspx

#4. Security should enable the business, not just protect it

65% of healthcare professionals think secure text messaging could reduce hospital discharge times by 50 minutes.

This alone could save $3.1 billion in costs across the industry. SOURCE: May 2013 study by the Ponemon Institute titled “The Economic and Productivity Impact of IT Security on Healthcare”. http://www.imprivata.com/ponemon-economic-impact-study

Companies are using digital identities from third parties (BYOID) to strengthen security while creating a better customer experience

Strengthens t

he authentication proce

ss

Enables self-

servi

ce proce

sses

Delivers

a better custo

mer exp

erience

Increase

s the effecti

veness

of marke

ting activiti

es0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

70%

30%

52%

19%

38%

17%

81%76%

Biggest Differences in Perceived Value

IT Business

SOURCE: “The Identity Imperative for the Open Enterprise”, CA and Vanson Bourne, 2014: http://transform.ca.com/428506-WW-Q2-FY15-SEC-Ponemon-Slideshare-2_428506-Landing-Page.html

#5. The mainframe has become the new secret weapon

More than 80% of the IT executives at organizations using a mainframe say it is a strategic part of their current and future IT strategy.58% believe that mainframe is and will be a highly strategic platform in their cloud computing strategy.

SOURCE: “The Mainframe as a Mainstay of the Enterprise 2012” survey conducted by Decipher Research in August 2012

The mainframe is core to the Application Economy• 33% of organizations’ mainframe applications are

accessible on mobile devices. • 35% of current mainframe applications are

accessible via the cloud.

SOURCE: Survey commissioned by Micro Focus and conducted by Vanson Bourne, 2014: http://www.microfocus.com/about/press/pressreleases/2014/pr04032014.aspx

The Five Truths of the Application Economy1. Every business is in the software business.2. Your infrastructure is now your greatest

competitive advantage.3. DevOps should be your new best practice.4. Security should enable the business, not just

protect it.5. The mainframe has become the new secret

weapon.

To learn more about how software enables the Application Economy, download a free

copy of the Forrester report

Software Must Enrich Your Brand