Sam Fell

All right, good morning.

Good morning.

Good morning, devs.

Woo.

Good morning, ops.

Good morning, DevOps.

Yeah. Right on. Okay. So everybody have a good day yesterday? You all came back, so that's good. Breakfast was good. Gene, good morning.

Good morning, Sam.

Good day yesterday?

It was great, thanks.

Fantastic. Okay. Actually, how was yesterday?

Yeah.

Very good. Outstanding program. More coming today. So we have a few housekeeping items I'd like to go through, and then Gene is going to deliver some information I think you're going to find very, very interesting.

That's us. All right, so good morning. We've done that.

Some people have been asking for slides and videos. Anybody out there interested in seeing any of the videos from yesterday that you missed? Any of the slides that you missed? So we talked about this yesterday. We're practicing continuous delivery with the slides. We actually have the videos coming later this afternoon, so we're working as hard--

Actually, the first plenary keynotes from yesterday are up online.

They're already up online?

Yeah.

Amazing, all right? And no deployment problems. No rollbacks on those videos, which is fantastic. So go ahead and download those slides. Please don't download them using the Wi-Fi here, because people need it for other stuff.

I want to remind you about the code of conduct that we went through yesterday. It's very important to us that this conference feels very welcoming, very open for everybody. So please make sure that you're respecting that. If you have any issues, email help@itrev, and they'll be able to help you. You guys also know where their booth is. You can stop by there and ask for help also.

How many of you went to the DevOps workshops yesterday? Raise your hands. Right on, okay. There was a little bit of applause back there. So a lot of hands went up. We'd like to see more hands go up today. The DevOps workshops were absolutely fantastic. Wonderful opportunity for you to interact with people who've done this, who've been there, who can help you through some of these issues.

Choosing what topics you'd like to cover, same sort of flow as yesterday. Vote once, go and put your dot on the topic that you care about. But there were some empty seats yesterday, so if you felt, "Oh, there's no way I'm ever going to be able to get a spot at one of those tables," make sure you go down there. Make sure you find yourself a spot. There's a place for everybody here at the conference. Make sure you're there.

Gene Kim

Yeah. In fact, Dominica mentioned this, that this is run in the Lean Coffee format. It's just a phenomenal opportunity for you to connect with your peers and colleagues. And so if you see an open table, grab it right now. We'll find you a facilitator. And so if you see an open table, we will find a facilitator for you. So please join us.

Sam Fell

Fantastic. This is your conference, and so we want to make sure that it works for you guys.

Those workshops, the technical practices DevOps workshop, are happening today, 1:40 to 2:40 in Imperial A.

And the expo hall hours. Who had fun last night at the VMware party with all the book signings? Right on. Okay. Thank you to VMware and for all the book signing sponsors for putting that together.

The Grand Ballroom is open today for expo hall, so please go visit those guys. There's a passport game that you guys should all be playing. Make sure that you put your stuff in tomorrow. Marguerite Kim is going to be announcing the winner of the passport game in the expo hall at, I think it's 1:30 in the afternoon. So if you want to win, make sure you get your passport in, visit all the different booths, and get your passport in, and come by tomorrow, 1:30, and you can win.

Lightning talks tonight, another fantastic program. F5 is sponsoring this one. Damon and John have put together a fantastic program for you. Lightning talks. Come and listen to those. Each presenter gets 20 slides, which is automatically going to advance every 15 seconds. And for the very last session, one of you guys, one volunteer from the audience, will be chosen for special DevOps karaoke. So I know all of you want it to be you. And so that's really exciting.

And with that, I'm going to hand it off to Gene. He's going to talk a little bit about the program yesterday and some about deployment--

Gene Kim

Yeah. Sounds good.

Sam Fell

Yeah.

Gene Kim

Thank you, Sam.

Sam Fell

Right on. Thanks. Thanks, everybody.

Gene Kim

So yesterday, I had made a claim that the majority of the economic value around DevOps was going to be created not by the FAANGs, the Facebook, Apple, Amazon, Netflix, and Googles, but it is really the organizations represented in this room. So I just want to take a couple minutes and maybe substantiate that claim I had made.

So yesterday, we saw a talk from CSG, from Scott and Erica, from the folks at KeyBank, Stephanie Gillespie and John Rez, as we call him, from Cottonelle and Kimberly-Clark. And then in the afternoon, I had the pleasure of watching Alice Rea from Kaiser Permanente talk, and the incredible talk given by Kurt Hockade from the Joint Warfare Analysis Center.

And so one thing that should stand out to you is that these were not organizations funded by venture capitalists. They were not formed in the last 10 years. And the other thing that you might notice is that these are organizations that span every industry vertical; in some cases, the largest, most well-known brands in the industry vertical they compete in.

So it's 2011, and I'm hanging outside of DevOps Days 2011 in London with Chris Little. He's now at Gartner. And he said something that I found very startling. He said, "We are at the tip of the iceberg in terms of the value that's created." He said, "We are going to enter a 20- to 30-year period of unprecedented economic prosperity." And he said it with such confidence that my next question was, "Why do you believe that to be the case?"

And that's when he introduced me to a book by Dr. Carlota Perez. The book was called Technological Revolutions and Financial Capital, about the dynamics of bubbles and golden ages. And I just want to take a couple minutes to share with you what this book posits, and what makes it so startling, and yet why I find it so plausible.

So what Dr. Carlota Perez did is made the observation that, as many had, that there are these macroeconomic waves, 50 to 70 years. But her novel contribution as part of her doctoral work was to posit what the causal factors are that many have looked at and said, "Holy cow, there's a tremendous amount of... It's very believable."

So what she posits, what she observes is that there's been four economic cycles. So the first was the Industrial Revolution in the late 1700s. The second, that she called the Age of Steam and Railways in the early 1800s. The Age of Steel and Heavy Engineering in the late 1800s. And then the Age of Oil, Autos, and Mass Production in the early 1900s.

And she posits that we are now in the fifth cycle, and she calls it the ICT Revolution, the Information, Communication, and Technology Revolution. And so what she noted was that there's an eerie similarity in each one of these cycles. That in the beginning, it was always caused by some factor of production becoming incredibly cheap. And then there is this whole new class of infrastructure that's built. And then there's been a period of incredible innovation that leads to a bubble. This is when all the hot money comes in, leads to a boom, a bubble.

And then what happens is the inevitable bust. The dot-com bomb would be an example of that in our recent history. And then she says there's a period of consolidation and widespread gains in the productivity from using this new technology.

And in my mind, I think that you can rewind the tape not so far and say, "Hey, this is a similar narrative to what's happening now." And so specifically, what she said is really two periods.

Before the boom years, she called the Installation Period. And that's primarily driven by financial capital. So that would be venture capital, Wall Street, speculation, and so forth. But after the bust comes regulation, and then it becomes using not financial capital, but production capital. They're using capital from internal operations, and it's coming from within the organization. And she calls this the Deployment Period, the Deployment Age.

And so this is really what her observation is, is this is where the real value is created. So, and I think we see signs of what is happening right now. The whole notion of digital disruption, I think, is very, very real.

I love this graph. It was in this book called Disrupt or Die, and it shows just how retailers have fared as we go through this period of digital disruption. You have Sears that has 4% of the market cap they used to over 10 years, where Amazon is now 200 times higher than they were. So I think that's very difficult to dispute.

But I think a more startling view of this is this graph that came from Goldman Sachs, and it shows that Amazon is as disruptive as Walmart was. So on the Y-axis is the percentage of all retail transactions that the organization captured, and on the X-axis is the number of years since their IPO. And you can see that Amazon is following a very, very similar curve to what Walmart did many years ago. So history doesn't necessarily repeat itself, but it certainly rhymes.

And so it's not just disruptive to the retailing sector. It is affecting the manufacturers who sell through the retail channel. Scott Nacella pointed me to the Nike 10-K, where they actually made a statement that they are going to be selling their products in Amazon Marketplace, and they're projecting $300 to $500 million of net new revenue to come through that channel. And so that's going to be a brand effort, but that's also a software effort. And I think this shows how, I think this is one leading example of how organizations are dealing with digital disruption.

And I think the stories that you're hearing at this conference, yesterday, today, and tomorrow, are all as Dr. Perez predicts. Capital One will be presenting later today. Nike. Yesterday we had CSG. They didn't go raise venture capital money to do this. This came from their own production capital, and they're using it to win in the marketplace and certainly to survive and thrive in the marketplace, as Dr. Maynard described yesterday.

I think the other thing that is so interesting to me is that I think the productivity gains will be so enormous that it will finally solve the 30-plus-year mystery of the information productivity paradox. Researchers always looked, where is the real value that computing will create? And it's now, I think through this mechanism, where it will make itself known, because we've seen this in the State of DevOps Reports for four years.

And so I think I now believe my friend, Chris Little, who said, "I think we really are at the tip of the iceberg in terms of the age of prosperity is coming, and I think DevOps is a critical part of that."

So I just wanted to share that, because I think it sets a frame and a backdrop of why I believe DevOps is so urgent and important from a business perspective.

So with that, my next job is to introduce the next speaker. By the way, was that interesting?

So the next up is Tope Abodipe, I should say Dr. Tope Abodipe at Capital One, and presenting with his colleague, Jennifer Brady, Director of Technology Governance.

So Tope Abodipe has spoken now for four years in a row at this conference. I first met him at the IBM Innovate conference in 2013, and when I learned about what he was doing inside of Capital One, I just couldn't learn enough. He was the first technical fellow at Capital One. So this actually required the creation of an entirely new individual contributor career track so that there was a career ladder for individual contributors that matched the managerial career track. This is something that you only see usually in engineering companies.

But in the words of Richard Fairbank, the CEO of Capital One, he said, "In order for us to win in the marketplace, we have to have a world-class engineering organization." I think the technical fellow role that was created is just one example of their commitment to that. And now Tope is one of about 45 technical fellows at Capital One.

One of the things that Tope has been obviously very passionate about for the last many years is the notion of DevSecOps. In other words, integrating all the information security objectives into everybody's daily work. And he's been tireless in terms of trying to show that you can not only be more secure, but convince internal auditors, external auditors, compliance professionals, regulators, and even lawyers.

So, I'm so delighted that he'll be presenting today with Jennifer Brady. So his is one of the three talks that really span the business and technology divide. Jennifer was a former director of internal audit. And it is not an exaggeration when I say I love auditors. Some of my best friends literally are auditors. And as I mentioned yesterday, Bill was a card-carrying, duping member of the Institute of Internal Auditors for almost 10 years.

So they're going to be presenting the story of DevOps at Capital One. So without further ado, Tope and Jennifer.