Reducing Keep The Lights On Cost: One Project at a Time

www.outsystems.com

© OutSystems – all rights reserved www.outsystems.com

Reducing "Keep The Lights On" cost One Project At A Time

Fábio Silva

May 8, 2013

http://bit.ly/reducingktlo



www.outsystems.com

© OutSystems – all rights reserved

Who am I and why should listen to me?

My name is Fábio Silva, 37 years old. 24 years experience in IT

Currently: IT Manager at OutSystems… Managing KTLO

Past:

• IT Director at a Financial Institution… Worried with KTLO for 5 years

• IT Manager at a Microelectronics Company… Worried with KTLO for 10

years

• Just a baby at age 14 developing applications and playing with networks

for 9 years

www.outsystems.com


What Exactly is KTLO

www.outsystems.com


Refresh – Pace Layered Framework

www.outsystems.com


Tale of Two Applications

• Real Time Data Aggregator and Distributor

• Trade Limit Management System

They have about the same complexity

(in terms of Function Points)

www.outsystems.com


Case #1 – Real-Time Data Aggregator

Real Time Data Feed

Retail Department B2B Channel Internet

Channel

-Windows 2003 Server

-SQL Server 2000

-TIBCO BW 5.3

-Sun Solaris 2.6

Real Time Data Aggregator

and Distributor

www.outsystems.com


Case #1 – Lifecycle and Budget

IT Spending Policy

55%

20%

KTLO

NEW

100%

230k€

Year 0

30%

69k€

Year 1 Year 2

24,8%

57k€

25,2%

58k€

Year 3

91%

210k€

Migration


-SQL Server 2005

-TIBCO BW 5.8

-Sun Solaris 10

Year KTLO (% of IT Budget)

Year 1 69k€+70k€=139k€= 60%

Year 2 57k€+70k€=127k€= 55%

Year 3 58k€+70k€=128k€= 56%

www.outsystems.com


Case #2 – Trade Limit Management

Company Internal

Rating System

B2B Channel Procurement Department


-SQL Server 2005

-TIBCO BW 5.6

-Outsystems Platform 4.2

Credit Rating

Provider

Company

Catalog

(SaaS)

Trade Limit Management

System

www.outsystems.com


Case #2 – Lifecycle and Budget

IT Spending Policy

55%

45%

KTLO

NEW 100%

60k€

Year 0

5%

3k€

Year 1 Year 2

3,3%

2k€

5%

3k€

Year 3

10%

6k€ Migration

-Windows 2008 R2 Server

-SQL Server 2008

-TIBCO BW 5.7

-Outsystems Platform 5.1

Year KTLO (% of IT Budget)

Year 1 3k€+2k€=6k€= 10%

Year 2 2k€+2k€=4k€= 6,6%

Year 3 3k€+2k€=6k€= 10%

www.outsystems.com


What did we learn with these two stories

Case #1

100%

230k€

Year 0

30%

69k€

Year 1 Year 2

24,8%

57k€

25,2%

58k€

Year 3

91%

210k€

Migration

100%

60k€

Year 0

5%

3k€

Year 1 Year 2

3,3%

2k€

5%

3k€

Year 3

10%

6k€

Migration

Case #2

www.outsystems.com


Takeaways from the case study

1. Systems of Differentiation outlive the infrastructure.

2. Beware of fast-changing businesses or departments. Build to Change

3. Watch for Non-Functional Requirements.

4. Keep the whole Application Lifecycle in mind.

5. Look forward with care. Choose underlying technologies carefully.

6. Keep KTLO on top of your mind.

7. Find the balance between in-house knowledge and outsourcing models.

Think about your change management

www.outsystems.com


Remember KTLO? – What can we do?

www.outsystems.com


Tips to lower your KTLO costs

1. Choose Build to Change Technologies.

2. Be Aggressive. If possible, don’t Migrate. Cut Legacy.

3. Be friends with your Shadow IT’s. Do it Sooner than Later

4. Attack the Edges first.

5. Leave the Systems of Record alone.

6. Accept Technology Standards. No Wars please. Work with CIO’s with Facts.

7. IT is a Business Partner. Be sure to understand the Processes.

8. “Do Less, Do it Really Well”

Pre-Requisite: Do you have an IT Application Map?

Reducing Keep The Lights On Cost: One Project at a Time

Technology

Transcript of Reducing Keep The Lights On Cost: One Project at a Time