Is ‘DevOps’ the way forward?

There has been much written recently about the term ‘DevOps’, a software development approach that advocates a hybrid role between that of the established developer and operations staff. My question whenever I hear these terms is always the same: is it another buzzword or will it drive forward tangible change within the traditional asset management industry?

While development methods (such as agile software development), encourage collaboration among the analysis, design, development, and QA functions, in traditional organisations there is rarely cross-departmental integration of these functions with IT operations. DevOps acknowledges the interdependence of software development, quality assurance (QA), and IT operations. The aim is to help an organisation rapidly produce and deploy software systems to improve operational performance.

From the perspective of the business (which should always be the driving force behind any technological development), DevOps sounds like a dream come true for asset managers. Rather than jockeying for position (and IT budget) along with all the other parts of the business in the development of a single IT infrastructure that may take years to complete, distinct parts of the business (e.g. OTC clearing) can lobby for rapidly developed niche software as part of the business as usual (BAU) budget. DevOps staff can therefore rapidly turn an opportunity for competitive advantage into a reality.

Of course, the question of whom the DevOps staff report to arises. Is it the CTO? The COO? The IT Director? Fiefdoms still prevail within asset management firms, often to the detriment of the business. The rise of the CDO role (Chief Data Officer) has been hampered by the same political chicanery.

Agile approaches such as DevOps should be the goal of all asset management firms. The jury is still out on whether asset managers will embrace this change when it demands a cultural shift within the firm.