After watching this video, you will be able to:
Describe how disruption facing companies today amplifies the need for DevOps.
Since the year 2000, fifty-two percent of the Fortune 500 companies are gone.
Fifty-two percent!
That is almost half of the Fortune 500 companies that existed in the year 2000,
are now gone!
What were they up against?
In a word, disruption.
It is not if you get disrupted, it is when you get disrupted.
Established institutions like banks might think, “Who is going to disrupt me?”
You can talk to banks about the need to deploy fast and use continuous delivery, but they
are not always responsive.
Then the bank down the street comes out with an app that can take a picture of a check
and deposit it.
Meanwhile, if it takes your bank six months to get your app updated to take a picture
of a check and deposit it, your bank is going to lose a lot of customers in those six months.
It is not a matter of if you get disrupted.
It is a matter of when.
If you talk to the customers about being disrupted, a lot of them will say, “Oh, the technology
disrupted me.
I have been disrupted by technology.”
But if you think about it...
The technology that was available to the disruptors is the same technology that is available to
the incumbents because most of it is open source.
The disruptors just had a different business model.
The example lots of people like to give is Uber.
Uber is the big disrupter.
So, let's think about what was the amazing technology that allowed Uber to disrupt the taxi industry?
Well, they had GPS, but GPS has been around for a while.
We’ve had Garmins and TomToms on our dashboards for years, so that's nothing new.
That is fairly old technology.
Then there are electronic payments.
Electronic payments are older than GPS—they have been around for decades.
Then there is "a smartphone in every pocket".
This is pretty commonplace as well.
But Uber put the three of those things together with a new business model.
Instead of waiting for a taxi to drive by or hailing a cab, or making a phone call to
a dispatcher, "what if we allowed people to summon a driver from their smartphone?
Let the driver know where they are, and then the nearest driver comes and gets them, and they
can track where they are when they will be picked up."
Uber had a different business model and people loved it.
It wasn't so much the technology.
It was the new business model that allowed them to disrupt.
In fact, here in New York State where I live, the taxi industry is lobbying Albany, the
state capitol, for legislation to limit Uber.
The taxi industry does not need government legislation.
They need to hire some programmers and get an app!
The genie is out of the bottle.
This is the way people want to do ride-sharing.
You either adapt or you go extinct!
Disruption is everywhere in every industry.
When was the last time you used a travel agent?
You do that on the web now.
What about those little point-and-shoot cameras?
That was a major industry, and everyone was buying them.
Now, not so much... because everyone has a pretty good camera in their pocket on their
smartphone.
People used to say to me, “What's the best camera to use for candid shots?
And I would say, “The camera that you have with you, the one in your pocket.”
That’s the best camera to use.
So, people don't generally need to have these point-and-shoot cameras anymore.
They got disrupted by the smartphone.
Think about Blockbuster Video.
Back in the 80s, we would rent videotapes, VCRs were a big thing.
And would physically go to the Blockbuster store,
and if we brought the tape back late, they would penalize us.
It was like checking in a library book late,
and we accepted it!
Then Netflix came around and Netflix realized DVDs had just come out and that DVDs
were a lot smaller than these big bulky tapes.
They could mail them out so the first business model for Netflix was that they would mail
you a DVD and then you would have a list of DVDs that you wanted.
You wouldn't get the next DVD until you mailed the one you had back.
If you kept it for six months, that didn’t change, they didn't give you a late fee.
They didn't care if you kept it for six months.
You just didn't get another one for six months.
You had to send one back before you could get another one.
Then after a while, Netflix realized they didn't need the DVDs.
Everyone has broadband internet to their homes.
So, Netflix began streaming movies into the customers' homes.
See the problem for Blockbuster was that they thought they were in the video rental business.
But Netflix understood they were in the entertainment business.
They were in a totally different business.
They were entertaining people now, and now they have their own shows on Netflix, produced
shows by Netflix, and Blockbuster went out of business.
If you look at Garmin, they didn't do so badly.
Garmin was able to pivot.
When everybody had a GPS on their phone, they didn't need a Garmin on their dashboard anymore.
But Garmin understood that they were not in the mapping business.
They realized they were in the tracking business.
They started making little wrist trackers.
Garmin made these trackers you use to exercise and stuff.
They pivoted and they are still around.
Some businesses survive and some businesses do not, but the message here is that technology
is the enabler of innovation.
It is not the driver of innovation.
You must have a great business model idea and a great model and then leverage that technology.
Technology alone is not going to drive innovation.
It just enables it.
In this video you learned: That technology is the enabler of innovation
and the importance of having an innovative business model.