voke Research Service Virtualization

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1 Market Snapshot Report: Service Virtualization By Theresa Lanowitz, Lisa Dronzek voke Research Complimentary Report This report reprint is courtesy of CA Technologies for individual, non-commercial use only. Reproduction and distribution are prohibited. Contact for additional information. Moving markets beyond the status quo!

2 Market Snapshot Report: Service Virtualization By Theresa Lanowitz, Lisa Dronzek voke Research ~ ~ SUMMARY To keep pace with customer and business demands of the 21st century, new solutions for development, QA, and operations teams are emerging. One of the most innovative and valuable solutions is service virtualization. It is a behind-the-scenes technology that decreases time-to-market, decreases the number of defects entering production, reduces overall software cycle times, and increases test coverage. Service virtualization reduces constraints impacting cost, quality, and schedule. This Market Snapshot Report focuses on the need, use, benefits, challenges, and ROI of service virtualization, as well as its promise to deliver more predictable, effective, and efficient business outcomes. ~ ~ Table of Contents Executive Overview 2 Market Overview 3 Assumptions 4 Market Forces and Trends 4 Vendor Overview 6 Survey Methodology 6 Survey Objectives 7 Participant Demographics 7 Market Snapshot 9 The Need for Service Virtualization 9 Use of Service Virtualization 13 Benefits and Challenges 16 Service Virtualization ROI 18 Assess Your Organization 21 Net/Net 22 Appendix: Related Research voke media, llc. All rights reserved. voke and vokestream are trademarks of voke media, llc. and are registered in the U.S. All other trademarks are the property of their respective companies. Reproduction or distribution of this document except as expressly provided in writing by voke is strictly prohibited. Opinions reflect judgment at the time and are subject to change without notice. voke disclaims all warranties as to the accuracy, completeness or adequacy of information and shall have no liability for errors, omissions or inadequacies in the information contained or for interpretations thereof. Contact for additional information.

3 2 Market Snapshot Report: Service Virtualization Executive Overview From June 2012 through October 2012, voke conducted an independent survey of 192 participants from both technology and non-technology companies of varying sizes to explore their use of service virtualization and the results they experienced. This Market Snapshot Report identifies the data we gathered and provides our analysis of the participants responses about how service virtualization is used, why it is adopted, general perceptions, challenges, and benefits. In the 21st century every company, regardless of its vertical market or size, is a software company. Software must work when, where, and how users expect and demand. As a result, global and mobile customers will not accept an inferior software experience. To provide software customers with an elegant experience, software developers, QA professionals, and operations specialists must ensure an appropriate time to market with a high degree of quality and stay within planned budgets. To keep pace with customer and business demands of the 21st century, new solutions for development, QA, and operations teams are emerging. One of the most innovative and valuable solutions is service virtualization. Service virtualization is defined as enabling development and test teams to simulate and model their dependencies of unavailable or limited services that cannot be easily virtualized by conventional server or hardware virtualization means. Service virtualization removes constraints and wait times frequently experienced by development and test teams needing to access components, architectures, databases, mainframes, and so on. Modern software applications and products are complex, highly distributed, heterogeneous, and interdependent. Service virtualization removes the constraints associated with components connected to an application under test that may be: Incomplete or undergoing changes Controlled by a partner or third-party Unavailable at the time required by either the development or testing team Inaccessible for the full duration of time required to test, especially for performance and load testing Difficult to provision or configure in a test environment Needed concurrently by multiple teams with different test data Service virtualization reduces the risks and costs associated with the software lifecycle. Service virtualization will: Deliver the necessary environment or service for development or testing Enhance testing through more code coverage and platforms

4 Market Snapshot Report: Service Virtualization 3 Reduce the use of a high-cost infrastructure for testing Remove the constraint of waiting for services or components to test Improve time-to-market Service virtualization fosters true development and test team productivity and reduces constraints impacting cost, quality, and schedule. Market Overview In November 2011, voke published a seminal research report on lifecycle virtualization. (See voke Category Snapshot Report: Lifecycle Virtualization November 7, 2011.) In this research, voke defined lifecycle virtualization 1 and identified service virtualization as part of the broader category. Since the category of lifecycle virtualization emerged, service virtualization has become a staple of modern and innovative organizations. Service virtualization is a proven technology that helps organizations of all types and sizes to deliver quality software, on time, and on budget. Services, components, and devices are virtualized and always available for developers or testers. Service virtualization solutions are the hub of the modern lifecycle. Organizations that use service virtualization are shattering silos across development, QA, and operations organizations. Previously unbreakable bottlenecks are now eradicated thanks to service virtualization solutions and the elimination of wait time experienced by both development and testing teams. Organizations that embrace service virtualization are better positioned to: Manage and control complexity by eliminating defects prior to production Decrease the amount of manual testing tasks and related expenses by enabling automated regression suites to work with frequently changing systems Increase access by removing constraints associated with a physical environment or cloud platform Handle change by validating the behavior and quality of each component to enable component reuse Today s business runs on software, workers are mobile and customers are global. By embracing and exploiting new, innovative, and proven technologies, such as service virtualization, companies are able to solve classic computing problems. 1 Lifecycle virtualization is defined as the use of technologies, such as virtual lab management, service virtualization, defect virtualization, device virtualization, virtualized cloud platforms, etc., to enhance the application or product lifecycle by reducing defects, lowering costs, speeding time-tomarket, and increasing customer satisfaction.

5 Market Snapshot Report: Service Virtualization 4 ~ ~ Assumptions voke holds the following assumptions about service virtualization: Organizations of all types need and will benefit from service virtualization solutions; however, we assume low market penetration and awareness of these solutions. Service virtualization requires increased market awareness to attain a critical mass adoption level and demonstrate the power of virtualization as applied to the software lifecycle. The pervasiveness of mobile computing and the cloud will drive adoption of service virtualization. Service virtualization reduces constraints impacting the classic triangle of cost, quality, and schedule. Service virtualization, as part of the broader lifecycle virtualization category, will be the hub of the modern software lifecycle and will shatter the traditional silos of development, QA, and operations. Service virtualization solutions are innovative, proven, and continue to evolve. And higher adoption rates of service virtualization will only further enhance products in the market. ~ ~ Market Forces and Trends As the market shifts and places extraordinary demands on quality, budget, and time to market, the need for service virtualization grows even stronger. Service virtualization is an innovative and behind-the-scenes technology that when used by software development and testing teams will reap dividends throughout the lifecycle. Service virtualization solutions will enable the delivery of greater business value from software. Software that is delivered on schedule, on budget, and with a high level of quality achieves the ultimate in business satisfaction. Service virtualization benefits are visible, and the return on investment is quick. As organizations continue to drive competitive differentiation and value through software, service virtualization will be central in enhancing developer and test team productivity. As such, it is a key technology that addresses the following market forces: Composite applications Most organizations are heavily invested in composite or service-based applications. Composite applications utilize individual components or systems that are brought together in combination at runtime to create complete functionality. As new composite application functionality is developed, it is crucial to have all of the pieces ready and available with data aligned for testing. Service virtualization allows for the simulation of any components or system dependencies to ensure a complete and accurate test of the composite application. Composite

6 5 Market Snapshot Report: Service Virtualization applications may use any architecture; however, a service-oriented architecture (SOA) is frequently used and often associated with composite applications. Consumerization of IT Employees are demanding that business software be as intuitive, easy to use, and as high quality as their consumer apps driving non-business focused activities. Service virtualization empowers development and test teams to deliver higher quality software across multiple platforms. Demand for quality Software is a core business function that must work. It runs the business and is a competitive differentiator. Software is also directly related to the brand, and a software failure is a brand failure. Moreover, quality software is expected and demanded by all organizations. Service virtualization helps ensure a higher degree of quality by increasing code coverage and reducing the number of defects released to production. Mobility and the cloud The proliferation of mobile devices and the explosion of the cloud mean that users are expecting a quality experience in an even greater number of delivery platforms. That quality experience means that software works functionally and performs to meet expectations and demands. Service virtualization enables performance and load testing by virtualizing platforms and making them available to test for performance and scalability. Software reuse Reusing software components across multiple applications or products is critical to keep up with the demand for innovation. Software reuse implies that the quality of the component has been validated before being reused. Service virtualization allows for components to be tested for use in isolation or in composite applications. Reusable components are always available for test. Integration of supply chains and partnerships Organizations do not build software alone. Today s software is a complex system with various contributors throughout the supply chain. It is critical to understand how software developed by multiple partners or members of the supply chain will work together. Service virtualization makes it practical to share assets and virtualize an entire system of software from any member of the supply chain. Development testing By allowing component-level developers to prevent defects from leaving the development phase, software becomes more predictable, traceable, visible, and transparent throughout the lifecycle. Service virtualization provides a way for teams across the lifecycle to collaborate and deliver higher quality software. Infrastructure testing Testing the infrastructure ensures that a bottleneck or anything added to the infrastructure does not negatively affect the network or other connected elements. Testing both the infrastructure and the software running on it helps drive end-to-end quality. Service virtualization supports infrastructure testing

7 6 Market Snapshot Report: Service Virtualization and eliminates the need to replicate expensive environments. (See voke Category Snapshot TM Report: Infrastructure Testing Optimization January 12, 2012.) By addressing these market forces, service virtualization is enabling a new generation of software that will be at the core of modern business. ~ ~ Vendor Overview While service virtualization is relatively nascent, the vendor landscape is established. Here is a list of vendors, in alphabetical order, offering service virtualization solutions. Organizations are strongly encouraged to evaluate and implement a commercially available service virtualization solution. Vendor Name Product Name Background CA Technologies CA LISA CA acquired ITKO in August ITKO introduced service virtualization in its ITKO LISA product in HP HP Service Virtualization HP introduced its HP Service Virtualization product in July IBM IBM Rational Test Virtualization Server IBM acquired Green Hat in January Green Hat introduced its Virtual Integration Environment (VIE) product in Parasoft Parasoft Virtualize Parasoft introduced its Parasoft Virtualize product in 2011, which was previously part of Parasoft SOAtest. Survey Methodology The voke survey was conducted from June 2012 through October 2012 using online interviews and in-person telephone interviews with 192 participants from diverse organizations, market segments, geographies, and roles. All survey participation is anonymous and responses are confidential. Participant responses are given in the aggregate without company or individual names identified. We asked a variety of question types in the survey, such as multiple choice, check all that apply, and open-ended questions. Please note that data in the tables does not add up to 100% when a check all that apply type of question is asked.

8 Market Snapshot Report: Service Virtualization 7 ~ ~ Survey Objectives The primary goal of this survey is to determine the need, use, benefits, challenges, and ROI of service virtualization technology. Overall, the research focuses on service virtualization and its benefit to deliver more predictable, effective, and efficient business outcomes. ~ ~ Participant Demographics The demographic questions in the survey characterize the participants in terms of their company sizes, geographic locations, and roles. The following tables and charts, beginning with market segments, summarize the demographic data about survey participants. Technology-based organizations represent 60% of the survey participants, and 40% of the participants were in a variety of segments of non-technology industries. Vertical Segment Participant Percentages TECH: Software 31.4% TECH: Service Provider/Professional Services 13.5% TECH: Telecommunications 12.0% TECH: E-commerce/Internet 1.6% TECH: Wholesale/Retail/Distributor 1.0% NONTECH: Finance/Banking/Accounting 17.2% NONTECH: Insurance/Real Estate/Legal 6.3% NONTECH: Healthcare/Medical/Pharmaceutical/Biotech 3.1% NONTECH: Media 3.1% NONTECH: Retail/Wholesale/Distributor (noncomputer) 2.6% NONTECH: Advertising/Marketing 2.1% NONTECH: Travel/Hospitality/Entertainment/ 2.1% Recreation NONTECH: Government/Military 1.0% NONTECH: Transportation/Utilities 1.0% NONTECH: Aerospace/Defense Contractor 0.5% NONTECH: Agricultural/Forestry/Fisheries 0.5% NONTECH: Education 0.5% NONTECH: Mining/Oil/Gas 0.5%

9 Market Snapshot Report: Service Virtualization 8 Survey participants were also geographically dispersed, with 51% working in the United States and 49% working in other geographies. Geography Company Headquarters Primary Work Location United States 62% 51% Europe (including UK) 12.5% 16.7% India 12% 17.2% Canada 6.3% 4.7% Australia/New Zealand 4.7% 4.7% South/Central America 1% 2% China 1% 1.6% Japan 0.5% 0.5% Rest of Asia (excluding China, Japan, India) 0% 1.6% Survey participants worked at a diverse range of company sizes, with 24% from smaller organizations under 500 employees, 27% ranging from more than 500 up to 10,000 employees, and 49% from larger organizations with over 10,000 employees. Company Size (Number of Employees) Above 50,000 24% Under % % 501 1,000 5% 1,001 5,000 9% 10,001 50,000 25% 5,001 10,000 13% Additionally, participants identified the following organizational classifications: Fortune % Fortune %

10 9 Market Snapshot Report: Service Virtualization Privately held 17% Fortune % Global % Small business 9% Government 3% Survey participants spanned a broad range of roles, from C-level (CIO, CEO, CTO) executives to practitioners across the software lifecycle. A majority, 53%, of survey participants were individual contributors, 28% were managers, and 19% were director level and above. We found survey participants across all functional areas of the organization with the majority of participants reporting to QA. Functional Area Participant Percentages QA 56% Line of Business 15% Architecture 13% Development 12% Operations 4% Market Snapshot With these demographically diverse participants, the research examined the need, use, benefits, challenges, and ROI of service virtualization technology. ~ ~ The Need for Service Virtualization Survey participants provided their input about the impact of various challenges faced by organizations during the software lifecycle. Test Cycle Delays We asked survey participants if their testing cycle experiences delays because a test engineer is waiting for a service, environment, device, or component to be available.

11 10 Market Snapshot Report: Service Virtualization Frequency of Delays Participant Percentages Never (0% of time) 5% Rarely (1-10% of time) 9% Occasionally (11-30% of time) 30% Regularly (31-69% of time) 39% Frequently (70-89% of time) 12% Constantly (90-99% of time) 3% Always (100% of time) 2% The majority of survey participants, 51%, identified regular or frequent delays of testing cycles due to unavailable dependencies. Likewise, professional services organizations reported witnessing these widespread delays across their client base. Additionally, survey participants reported: Lack of availability of back-end systems for end-to-end testing Lack of environments for performance testing Data setup delays Lack of stable environments and test data issues Lack of comprehensive test environments Another challenge identified by participants is that the end-to-end testing cycle is blocked if any application in the stack has just one functional defect. Access to Required Systems We asked survey participants about their testing or development dependencies on systems or applications, such as mainframe, services, third-party applications, partner software, and more. On average, organizations required access to 33 systems for development or testing; however, they only had unrestricted access to 18 systems. The majority of participants, 67%, report access to 50% or less of the required systems needed to do their jobs. We see that 15% report the power of service virtualization providing access to all required systems or access to more systems than currently required.

12 Market Snapshot Report: Service Virtualization 11 Required System Access Participant Percentages No access to required systems 12% Access to 20% or less 14% Access to 21-40% 21% Access to 41-50% 20% Access to 51-80% 15% Access Are to you 81-99% Are you Are you 3% required to required to required to Answer Response Response Access Options to 100% Percent of systems Count 12% Yes 58% 84 Greater Nothan 100% 34% access 50 to systems 3% Not Comments sure 8% 11 : 5 5 Think about the productivity impact if your development or testing teams have limited or no answered question access skipped to question the systems 47 required 47 to do their jobs. Access to Lab Environments Must be Scheduled Not sure 8% Yes 58% No 34% We find that 58% of survey participants are required to schedule access to their lab environments for development and testing. Organizations using virtualized lab environments for on-demand access to lab environments report they are still required to schedule access for non-virtualized environments such as pre-production or staging environments. Anecdotally participants also noted that: Mainframe and third-party services testing requires scheduled access Access must be scheduled for performance test environments Test planning is a major activity

13 Market Snapshot Report: Service Virtualization 12 Lab Access Only 4% of participants report immediate, on-demand access to lab environments for development and testing. The majority of participants wait days to weeks to gain access to lab environments. This long wait time to access labs is completely unnecessary and is indicative of the low adoption and market penetration of virtual lab management (VLM) solutions. (See voke Market Snapshot Report: Virtual Lab Management March 22, 2010.) Service virtualization coupled with VLM solutions should be at the forefront of a modern software lifecycle solution. Wait Time to Access Lab Participant Percentages None immediate access 4% 1 hour or less 7% 2-4 hours 14% 5-8 hours 11% 2-4 days 38% 1 week 11% 2-4 weeks 14% 10 weeks 1% We see that 96% of survey participants wait for access to the environments they need for development and testing. Upon receiving access to lab equipment, 37% of participants may only use the environment for 7 hours or less. A majority has limited access for 2 days or less, and only 31% report unlimited access to lab equipment once scheduled or setup. Lab Access Restrictions Participant Percentages 4 hours or less 31% 5-7 hours 6% 1-2 days 22% 1 week 6% 4-6 weeks 4% No restrictions 31% We asked survey participants to categorize the nature of resource availability on a typical project in their organizations. We inquired whether development or testing work is delayed or stopped if critical services or components are not ready at the time needed to meet the project schedule. Only 9% of survey participants report having no dependencies of this nature. Participants using service virtualization are not delayed by these types of dependencies.

14 13 Market Snapshot Report: Service Virtualization We find 44% report unavailable dependencies that stop or delay development progress, and 68% report unavailable dependencies stopping or delaying testing progress. Impact of Unavailable Resources Participant Percentages Testing progress delayed or stopped 68% Development progress delayed or stopped 44% ~ ~ Use of Service Virtualization We asked participants about the status of adoption of service virtualization technology in their organizations. Most participants are up and running with service virtualization and a number are on their way to implementation. Some participants, while they are using service virtualization, are exploring new tools. Status of Adoption Participant Percentages Evaluating solution(s) 22% Completed evaluation and preparing to implement 18% Currently using solution(s) 44% Currently using solution(s), but evaluating other 12% options Currently using solution(s), but in the process of 3% implementing another solution(s) Not currently using solution(s) and not planning to use 1% a solution at this time The majority of participants, 55%, have used service virtualization for less than 2 years, and we find 24% are currently investigating the use of service virtualization. Length of Use Participant Percentages Under investigation 24% Less than 1 year 30% 1 to 2 years 25% 2 to 3 years 11% 3 to 4 years 4% 4 to 5 years 2% Greater than 5 years 4% Rationale for Adoption Participants cited access restrictions, scheduling constraints, and parallel development as the primary rationale for adopting service virtualization.

15 14 Market Snapshot Report: Service Virtualization Rationale for Adoption Restricted access to dependent services, components, or systems Participant Percentages 72% Scheduling constraints 62% Parallel development 59% More realistic performance testing 33% Other 7% Furthermore, participants reported these additional reasons for adoption of service virtualization: Replicating a hardware or software environment that does not yet exist Isolation of applications under test Reducing and managing the cost to scale an environment with third-party components Reducing the cost of staging environments Transitioning from physical hardware to virtual environments Removing physical hardware constraints related to footprint Needing effective computing resource utilization Replacement of internally developed service virtualization solution with a commercial product The majority of participants report using service virtualization for applications and thirdparty needs, as listed below. Types of Virtualized Assets Participant Percentages Applications 65% Third-party services 56% Third-party applications 53% Mainframe 37% Partner software 34% Architecture 22% Other 4% Additionally, participants report virtualizing: Platforms Integration middleware and web services Databases

16 Market Snapshot Report: Service Virtualization 15 Mobile applications, architectures, and environments Devices Business Case for Service Virtualization We asked survey participants to provide their justification, business case, or rationale used to obtain management approval to purchase a service virtualization solution. The responses to this question fit into one of three broader themes of cost, quality, or schedule. The following table represents the responses reported to build a business case and justify the adoption of service virtualization. Cost Reduction Rationale Higher Quality Rationale Scheduling Improvement Rationale Allow for unrestricted access to third-party applications and services to support integrations Reduce CAPEX (capital expenditures) and OPEX (operational expenditures) of infrastructure and maintenance costs of lab environments Manage the demand for complex testing infrastructures, solutions, and scenarios Reduce costs and meet time-to-market pressures with parallel development Eliminate the expense of building and maintaining internally developed stub and mock solutions Provide a virtual alternative to physical labs and optimize server resource utilization Allow for unrestricted access to realistic environments to incentivize more testing earlier in the lifecycle Improve development and test labor productivity through automation Improve the quality of testing time through higher availability of testing resources throughout the software lifecycle Provide automated lab environments with less human error Model APIs prior to availability of productionready assets Meet load and performance testing requirements Allow for unrestricted access to constrained applications to reduce scheduling conflicts among teams Improve nimbleness, allowing development and test teams to decouple and work faster in parallel Minimize schedule postponements and missed deadlines due to late access to test environments or delays in configuring complex environments Implement self-service, ondemand environments for development and testing Meet project timelines through reusable assets Reduce or eliminate bottlenecks associated with internal and external partners and resources

17 Market Snapshot Report: Service Virtualization 16 Additionally, participants reported a requirement to use service virtualization on government projects involving SOA. ~ ~ Benefits and Challenges We asked survey participants to describe the benefits and challenges of their service virtualization solution. Participants took the time to describe 60 unique benefits and 35 challenges. This is a positive overall reflection of service virtualization technology. In contrast, in our survey about the realities of Agile, those survey participants reported more than twice as many challenges as benefits. (See voke Market Snapshot Report: Agile Realities July 11, 2012.) The following table represents the primary vendors, in alphabetical order, their products in the service virtualization market along with the most frequently mentioned comments about these products. Vendor Product Name Most Frequent Comments CA Technologies CA LISA Quick and easy deployment Extensive support for interfaces and protocols HP HP Service Virtualization New to the market Less feature rich than competitive products Widely available to existing HP customers IBM IBM Rational Test Virtualization Server (previously Green Hat VIE) Widely available to existing IBM customers Integrates with Rational Build Forge More complicated to use than competitive alternatives Parasoft Parasoft Virtualize Ease of use Ability to model APIs Similarly, here are the overall benefits of service virtualization as reported by survey participants: Access to third-party applications and systems when needed and on-demand to meet deadlines

18 17 Market Snapshot Report: Service Virtualization Begin testing earlier in the process Eliminate testing environment constraints Cost savings from time wasted configuring physical environments Eliminate delays Meet target release cycles and reduce the cost of third-party web services testing Remove constraints involved with testing to reduce test cycles Reduce the risk of application failures in production Ability to scale environments needed for performance testing Enable parallel development with less dependencies Quick instantiations of environments with appropriate test data scenarios for continuous integration Reduce the footprint of physical servers and optimize resource utilization Reduce mainframe dependencies and increase uptime for performance testing Challenges Twenty-eight percent (28%) of survey participants explicitly stated that there were no challenges with service virtualization. However, the remaining group of participants cited the following challenges with service virtualization solutions: Cost of product licenses Initial hardware set-up cost Company culture getting organizational buy-in to use the newly purchased tool Getting internal sponsorship to expand the usage of the solution to additional projects Additional skilled resources required to reap the benefits Learning curve Absorbing ongoing maintenance and software upgrades of the solution Support for multiple technology and protocols, multiple endpoints such as mainframe, applications, and database Setting up and maintaining test data Setting up the environment to record the service to virtualize Augmenting the captured data request/responses with additional generated data Deployment of virtualized assets

19 18 Market Snapshot Report: Service Virtualization ~ ~ Service Virtualization ROI We asked survey participants to share their metrics and ROI data resulting from the use of service virtualization in their organizations. Reduced Wait Times Reduction in Time to Access Services 10-20% decrease 4 18% 25-45% decrease 4 18% 50-75% decrease 7 32% % decrease 7 32% A majority of participants (64%) reported a 50% to 100% reduction in the amount of time % wasted waiting to access services needed for development and testing. Participants also reported a reduction of two weeks per test cycle. Reduced Wait Times to Access Services 10-20% decrease 18% % decrease 32% 25-45% decrease 18% 50-75% decrease 32% Greater Availability of Services Additionally, participants reported an increase in the overall availability of services needed. We found that 75% experienced a 50% or more increase in the availability of services due to the use of service virtualization.

20 Increased availability of services needed 10-20% increase 2 10% 25-45% increase 3 15% 50-75% increase 8 40% % increase 7 35% 20 Market Snapshot Report: Service Virtualization 19 Greater Availability of Services for Development and Testing 10-20% increase 10% 25-45% increase 15% % increase 35% 50-75% increase 40% Overall Software Cycle Reduction Decreased Software 5-10% decreasecycles 15-24% decrease % 30% Participants also 25-30% reported decrease an overall reduction 8 of their 40% total software cycles due to the use 35-50% decrease 3 15% of service virtualization. We found that 55% of participants experienced a reduction in their software cycle by 25% to 50%. Decreased Software Cycles 35-50% decrease 15% 5-10% decrease 15% 15-24% decrease 30% 25-30% decrease 40% On average, organizations experienced a 23% reduction in their total software cycles.

21 Market Snapshot Report: Service Virtualization 20 Increased Test Coverage Test coverage increase 20-30% increase 6 27% Service virtualization 40-45% increase allows for organizations 3 to increase 14% the scope of their test coverage. A majority of participants, 50% increase 59%, experienced 9 an increase 41% of test coverage ranging from 60-90% increase 4 18% 50% to 90% % increase 18% Increased Test Coverage 20-30% increase 27% 40-45% increase 14% 50% increase 41% On average, participants reported a 45% increase in their test coverage from the use of service virtualization. Shorter Test Cycle Times Participants experienced a significant increase in test cycle productivity through the use of service virtualization. Most organizations took advantage of the decrease in test cycle times; however, 22% maintained or increased their test cycles to do more thorough testing powered by service virtualization. On average, participants reported a 58% decrease in the length of their overall test cycles.

22 21 Test Cycle Time Decrease More testing in same cycle 5 22% 10-20% decrease 20% 4 17% 25-30% decrease 30% 9 39% 60-80% decrease 80% 3 13% Market Snapshot 200% decrease Report: 200% Service 2Virtualization 9% % decrease 9% 60-80% decrease 13% Shorter Test Cycle Times More testing in same cycle 22% 10-20% decrease 17% 25-30% decrease 39% Faster Time to Market Participants reported a faster time to market, ranging from 10% to 50% faster, through the use of service virtualization. On average, participants experienced a 24% faster time to market. Fewer Production Defects Participants reported a reduction in production defects, ranging from 5% to 75%, due to the use of service virtualization. On average, participants experienced a 22% reduction in production defects. To learn more about the cost impact of production defects or to estimate an ROI model based on eliminating production defects, consult our report on the cost of rework models. (See voke Strategic Brief: Cost of Rework Models for Agile and Non-Agile Projects July 11, 2012.) Assess Your Organization Service virtualization offers a quick return on investment and assists with the management of the classic triangle of cost, quality, and schedule. Before embarking on any change, assess your organization to understand its strengths, weaknesses, and software engineering skills. Furthermore, you may also want to ask the following assessment questions. Are your internal skills sufficient to incorporate service virtualization technology, or does it make sense to engage a professional services organization to assist with initial usage?

23 22 Market Snapshot Report: Service Virtualization Is service virtualization being driven by one organization, such as QA, or is it valued more broadly as a critical technology that enhances cross-functional teamwork and IT productivity to meet business requirements? What is the impact to your development and testing productivity because of limited or no access to required systems? Are your development or testing teams seeking to reduce CAPEX by reducing the amount of capital planned to be spent on new hardware? Are your development or testing teams seeking to reduce OPEX by reducing the budget allocated for manual operations associated with development and test labs? Are your development or testing teams seeking to deliver more value through the allocation of resources when and where necessary? Is your development or testing team seeking to deliver more value through as much automation as possible to eliminate manual, tedious, and error prone tasks? Is your development or testing team seeking to deliver software-enabled business functionality to get to market faster and with a higher degree of quality? Is your development or testing team seeking to reduce defects appearing near or in production? Is your development or testing team seeking to reduce or eliminate the wait time associated with accessing all necessary services? Most organizations will benefit greatly from the adoption of service virtualization in its software lifecycle. Plan to investigate, evaluate, and implement service virtualization as a critical new technology for the modern software lifecycle. Net/Net Service virtualization enables development and testing teams to build software for the 21st century with 21st century technology. Service virtualization is the hub of the modern lifecycle and allows teams to meet budget, schedule, and quality pressures. The technology is effective and proven. Challenges are minimal and benefits extensive, measurable, and readily noticed. In fact, service virtualization ROI numbers show: Reduced wait times to access necessary services Reduced overall software cycle times Increased availability of services needed for development and testing, including thirdparty services Increased test coverage Decreased test cycle times with less defects entering production

24 Market Snapshot Report: Service Virtualization 23 To remain competitive, organizations of all sizes and in all vertical markets should evaluate, investigate, and adopt a service virtualization solution. Service virtualization is a transformational technology that helps solve classic computing problems. Organizations using service virtualization will reduce CAPEX and OPEX and, ultimately, deliver greater value to the business.

25 Market Snapshot Report: Service Virtualization 24 Appendix: Related Research You may find it helpful to consult the following voke reports for more information about service virtualization and related topics. voke Category Snapshot Report: Lifecycle Virtualization November 7, 2011 voke Category Snapshot Report: Infrastructure Testing Optimization January, voke Market Snapshot Report: Agile Realities July, voke Strategic Brief: Cost of Rework Models for Agile and Non-Agile Projects July 11, 2012 voke Solution Snapshot Report: Parasoft Virtualize November 1, 2011 voke Market Snapshot Report: Virtual Lab Management March 22, 2010

26 Contact Information Corporate Headquarters voke, inc Meridian Boulevard Suite H Minden, NV USA Phone: Web: Blog: ~ ~ About Voke voke, founded in 2006, is a modern independent technology analyst firm focused on the edge of innovation. voke s primary coverage area is the application lifecycle and its global transformation, including virtualization, cloud computing, embedded systems, mobile and device software. voke provides data and analysis for the economy of innovation. Companies of all sizes, financial firms, and venture capital organizations turn to voke to harness strategic advice, independent and impartial market observations and analysis to move markets beyond the status quo. Please visit to become a research client. Moving markets beyond the status quo!