Are you looking to improve and update the way you calculate ROI? Do you want to learn how to calculate ROI from DevOpsDevOps DevOps is a set of practices that combines software development (Dev) and IT operations (Ops). It aims to shorten the systems development life cycle and provide continuous delivery with high software quality. DevOps is complementary with Agile software development; several DevOps aspects came from Agile methodology.? Well, you found the right page to help you out with calculating ROI from DevOps.
In the guide on ROI below, we’ll discuss the steps to measure ROI from DevOps. Keep reading to learn how and why you need to calculate ROI from DevOps. We’ve also included some tips on how to use an ROI percentage calculator.
Why Should You Calculate ROI From DevOps?
Almost all businesses today run off software and digital tools. DevOps, or the combination of practices and tools, is one more thing that improves a business. Without a DevOps team or expert, you risk inefficiency and mistakes.
Because of the opportunities for improvement DevOps offers, most companies invest in it. As of 2018, only 3% of companies lacked DevOps or had no plans to invest in it. A company can still survive without DevOps, but it’ll take twice the company’s resources to operate well.
Now, let’s say your company already transitioned to DevOps. The first thing you want to know is how successful the new transition is. Measuring and tracking ROI from DevOps is the best way to learn if it’s working well for you.
Knowing your DevOps ROI will also let you know if you’re using DevOps right. It can help you shift your focus on things you may need to give more attention to. In many ways, it acts as a guide for your business and a counter-checker of your strategies.
Calculating ROI From DevOps: An Overview
Before we start, let’s talk about how you calculate your ROI or Return on Investment. Calculating for the basic ROI is simple. You only need to subtract the cost of investment from the current value of an investment.
If you want to get the percentage of your ROI, you multiply the difference by 100. The basic formula for ROI is as follows:
(Current Value of Investment – Cost of Investment) x 100 = ROI percentage
Calculating ROI from DevOps is more complex. You need to take extra steps. The formula includes:
- Calculating software development costs
- Calculating process initiation costs
- Calculating time savings
You’ll need the values of the above-mentioned to complete the formula.
Now, let’s look at how you calculate the values we mentioned above. Read on to learn how to calculate software development, process initiation costs, time savings, and profits.
How to Calculate ROI: Computing Values
Let’s begin with the first step, which is to compute the software development costs. Knowing your software development costs will help you learn how much you’re saving. To compute this, you need to find the cost of software development per hour.
You can use software development cost calculators. You can also use a simpler method, especially if the DevOps team gave you their hourly rates. The cost is equal to the total development time multiplied by the hourly rate.
Some DevOps services may charge more for their quality control. You also have to take into account other expenses, especially if you have an in-house DevOps team. In-house DevOps teams cost more because you must provide the office and DevOps tools:
Calculating Process Initiation Costs
The next step is to calculate the costs for the entire process. This includes items like data security, CI/CD pipeline, and others. Here, you must know that you also need to improve your automation tools.
Understand the best approaches to marketing automation. Add these to the original cost of the tools. In the long run, they’ll help you in ways you didn’t expect.
Computing Time Savings
As we mentioned, DevOps can help you reduce the time it takes to do certain business processes. If DevOps tools got implemented well across the business, you’d have more in time savings.
Remember, your time savings computation must be precise. This way, you’ll know the actual financial benefits of the application of DevOps to the business.
Once you have these values, you can now calculate your DevOps profits.
The final step is to learn the financial benefits of a successful DevOps application. You compute this by comparing the time savings and the cost of introducing the process. This number will show you how much you can save when you implement DevOps.
To compute the DevOps ROI percentage, you multiply the total savings per hour by the cost per hour. From the product, subtract the cost of the process.
In other words, the formula is:
[(Total Savings per hour x Cost per hour) – Cost of Process] x 100 = DevOps ROI Profits (%)
To get the DevOps ROI percentage, multiply the difference by 100.
Is There a Faster Way to Calculate ROI?
What if you don’t have time to sit down and calculate all these values by yourself? Like how you’ve transitioned to using modern technology or DevOps to automate, you can do the same with this.
All you need to do is to find a marketing ROI calculator. Or look for an ROI percentage calculator if you want to get the DevOps ROI percentage. Don’t let your DevOps ROI calculations get left behind.
It’s great if you don’t have extra time in the day to do the manual computations. Using this new tech is also more accurate because you remove the risk of human error. 57% of consumers agree businesses that use modern technology are more competitive in the market.
Learn to Calculate Your DevOps ROI Today
Going digital and modern makes processes easier and paperless. DevOps offers a lot of great benefits for your business. Your business operations are faster and automated.
As we mentioned, however, not all DevOps operations go right the first time you apply them. You need to measure, countercheck, and analyze your numbers, too. Finding out your ROI can help you learn if you need to change your DevOps approach or plans.
That ends our guide on calculating ROI from the DevOps operations in your business. If you have questions about DevOps and related matters, let us know. Visit our contact page and shoot us your question through there.