1. www.idc.com Service Oriented Architecture: the context behind SOA Rob Hailstone Director, European Software Infrastructure Research rhailstone@idc.com

2. 2 Copyright IDC 2005 Topics What’s wrong with IT today?  What annoys the business world about IT  What would the business world really like? IT innovations addressing the requirements  Dynamic business needs Dynamic IT  The role of SOA in Dynamic IT A short introduction to SOA  The primary focus of SOA  Technologies for the SOA environment Market readiness

3. 3 Copyright IDC 2005 The problem with IT today …. I can’t reconcile my IT costs with the business value I’m delivering I have systems with spare capacity and systems that need more resources, but I can’t shift the work from one to another All the information I need is here somewhere, but it’s hidden, fragmented & inconsistent What the business sees as a minor change always turns into a significant development project Complex requirements take so long to implement that IT gets further out of step with the business I can’t justify the resources for running occasional compute- intensive modelling & analysis work I spend so much effort tackling IT issues I lose focus on the business I’m meeting all my IT SLAs, but users still complain of poor performance The more IT resources I accumulate, the less I can do with them

4. 4 Copyright IDC 2005 This is another fine mess you’ve gotten me into

5. 5 Copyright IDC 2005 Evolution outpaces replacement Tape-to-tape Batch OLTP Client/Server Web Apps Web Services 2005

6. 6 Copyright IDC 2005 The legacy - physical fragmentation by platform IMS VSAM DB2 IDMS RDB VMS Oracle Unix Ingres SQL Server WNT S390 VM OS/2 Browser Novell W2K Mac WWW Linux

7. 7 Copyright IDC 2005 The legacy - logical fragmentation by system

8. 8 Copyright IDC 2005 European CEO Business Priorities 8,0% 16,2% 16,4% 16,5% 21,9% 26,7% 26,1% 31,5% 41,3% 57,7% 0%10%20%30%40%50%60%70% Mobile workforce Improve Supply Chain Regulatory compliance Improve IT response/efficiency Improve HR Mgt. Product enhancement Marketing Sales performance Business perf. monitoring Customer care Source: IDC European Business Manager Survey Q3 2004

9. 9 Copyright IDC 2005 Translated to IT Priorities 50.7% 44.6% 31.5% 27.5% 23.0% 20.5% 14.2% 0%10%20%30%40%50%60% Lower application costs Faster application development Improved availability Improved security Realtime business perf. monitor Improved information integration Fit applications to business needs Source: IDC European Business Manager Survey Q3 2004

10. 10 Copyright IDC 2005 W.E. 2004 software survey – consistent trends 43.7% 49.5% 49.7% 50.6% 53.8% 56.8% 58.8% 0%20%40%60% Replace oudated systems Integrate processes or systems with external parties Increase revenue Cost reduction Manage customer relations or improve customer-facing processes Comply with government regulations Streamline core business processes within the company Provide better visibility and control across different locations Based on 526 responses

11. 11 Copyright IDC 2005 Topics What’s wrong with IT today?  What annoys the business world about IT  What would the business world really like? IT innovations addressing the requirements  Dynamic business needs Dynamic IT  The role of SOA in Dynamic IT A short introduction to SOA  The primary focus of SOA  Technologies for the SOA environment Market readiness

12. 12 Copyright IDC 2005 Successful business models are changing Business interests adapting  From introspective - internal efficiency  To outgoing - interactions at the company boundaries  Enhancing the experience for customers  Building better relationships with suppliers  Creating higher value partnership chains  Responding to change more effectively  Exploit “first to market” potential Optimising end-to-end processes – rather than individual activities

13. 13 Copyright IDC 2005 Two personalities of IT – conflicting desires Business Strategy Automation & Execution Responsiveness to Market IT Operations Automation & Management Operational Efficiency End-to-End, Dynamic Management Agility Vs. Stability

14. 14 Copyright IDC 2005 Service Oriented Architecture New initiatives for new expectations of IT Virtual Platform: Exploiting available physical resources to best meet the needs of a variable workload On-Demand: Providing IT as a consumable commodity, at commodity prices SOA: Delivering IT functionality as reusable, interoperable, location independent services Autonomic: self-managing, self-healing, self-tuning, self- securing Dynamic IT: giving users all the resources they need at the time they are needed, at a cost that is related to the business value delivered Virtual Platform/ Grid On-Demand Computing Autonomic Computing Dynamic IT: enabling deployment of concurrent initiatives

15. 15 Copyright IDC 2005 Application Server Integration Server Process Manager Workflow Manager Integration Coordination Complexity Component Logic Complexity Compilation Assembly Link, etc… Business Process Management Enterprise Application Integration WorkflowDatabase Replication Database Mng.System Integration & development – becoming one Application Component Process Step Human Activity Application Program Data Item Tightly bound Loosely coupled Web services

16. 16 Copyright IDC 2005 Web services & Service Oriented Architecture Web services  Defines a means of interoperability between heterogeneous systems that is based on standards and requires no knowledge by one system of the specific technologies & methods used to build any other  Technology integration focused – bottom up approach to design Service Oriented Architecture  An architecture that exploits (but is not restricted to) the interoperability provided by Web services to deliver business agility through rapidly constructing and adapting business processes and composite applications  Business focused – top-down focus on requirements

17. 17 Copyright IDC 2005 IDC’s taxonomy definition of SOA  Service Oriented Architecture (SOA) is a technology architecture based on disaggregation. It promotes the utilization of autonomous application and system "services" abstracted from one another, independent of implementation. Ideally, an SOA should be modular, with separate layers of functional code, data, workflow, and presentation interfaces.  Each service should be self-describing with a published interface, accessible to other elements of the system, most commonly over a network. In an SOA, services are designed to be dynamically invoked. Danger of definition fixation, but:

18. 18 Copyright IDC 2005 More importantly – why? What is SOA good for?  Accomodating rapid changes to the business  Permitting more complex applications to be created  Building IT processes that directly map to business processes  Extending applications and processes beyond organisational boundaries  Re-using existing IT investments  Prolonging the useful life of previous expenditure  Accomodating future technology innovations

19. 19 Copyright IDC 2005 Topics What’s wrong with IT today?  What annoys the business world about IT  What would the business world really like? IT innovations addressing the requirements  Dynamic business needs Dynamic IT  The role of SOA in Dynamic IT A short introduction to SOA  The primary focus of SOA  Technologies for the SOA environment Market readiness

20. 20 Copyright IDC 2005 The longest gestation period ever? SOA – hardly a new concept  CORBA  DCOMJava  Enterprise Java Beans Limitations due to:  Each use their own method of invocation  Restricted interoperability  Location-sensitive  Interface-sensitive SOA expectations now include:  Technology transparent – invoked by messages (not APIs)  Location transparent, dynamic use  Description & usage information (interface contract) stored in a repository of service definitions

21. 21 Copyright IDC 2005 Business agility & Service Oriented Architecture Legacy Application PortfolioNew Application ComponentsProcesses Aligned with Business Business Activities Business Process Orchestration Composite Applications Straight-Through Processes User Interface Applications Registry - Portfolio of ServicesWeb Services Standards

22. 22 Copyright IDC 2005 Technologies enabling the architecture User PortalExternal Events Management Initiators & Endpoints Business Rules Engine Process Orchestration Engine Process Coordination Security & Identity Mgt. System & Service Mgt. Supporting Infrastruct. Business to Service Mapping Model/ConstructBusiness Activity Mon. Services Metadata Registry Application Adapters Message Broker (MOM) Message Transformation Messaging Framework Data Adapters Database ServerApplication Server Application Infrastructure

23. 23 Copyright IDC 2005 Topics What’s wrong with IT today?  What annoys the business world about IT  What would the business world really like? IT innovations addressing the requirements  Dynamic business needs Dynamic IT  The role of SOA in Dynamic IT A short introduction to SOA  The primary focus of SOA  Technologies for the SOA environment Market readiness

24. 24 Copyright IDC 2005 0%20%40%60%80%100% Web services XML messaging SOA Composite Apps BPA Don't knowNo PlansBeing consideredPilot project Limited live useSome live useSignificant live use Stage of adoption of SOA & related initiatives All respondents (625)

25. 25 Copyright IDC 2005 0%20%40%60%80%100% Web services XML messaging SOA Composite Apps BPA Don't knowNo PlansBeing consideredPilot project Limited live useSome live useSignificant live use Stage of adoption of SOA & related initiatives Organisations > 1,000 employees (350)

26. 26 Copyright IDC 2005 0%20%40%60%80%100% Web services XML messaging SOA Composite Apps BPA Don't knowNo PlansBeing consideredPilot project Limited live useSome live useSignificant live use Stage of adoption of SOA & related initiatives Organisations > 2,500 employees (260)

27. 27 Copyright IDC 2005 0%10%20%30%40%50%60%70%80%90%100% Business Svc Financial Svc Healthcare Local/Central Gov Manufacturing Other Telco Transport Don’t knowNo plansBeing consideredPilot project Limited live deploymentSome live deploymentSignificant live use Web services – by industry Organisations > 1,000 employees (350)

28. 28 Copyright IDC 2005 0%10%20%30%40%50%60%70%80%90%100% Business Svc Financial Svc Healthcare Local/Central Gov Manufacturing Other Telco Transport Don’t knowNo plansBeing consideredPilot project Limited live deploymentSome live deploymentSignificant live use XML messaging – by industry Organisations > 1,000 employees (350)

29. 29 Copyright IDC 2005 0%10%20%30%40%50%60%70%80%90%100% Business Svc Financial Svc Healthcare Local/Central Gov Manufacturing Other Telco Transport Don’t knowNo plansBeing consideredPilot project Limited live deploymentSome live deploymentSignificant live use SOA – by industry Organisations > 1,000 employees (350)

30. 30 Copyright IDC 2005 0%10%20%30%40%50%60%70%80%90%100% Business Svc Financial Svc Healthcare Local/Central Gov Manufacturing Other Telco Transport Don’t knowNo plansBeing consideredPilot project Limited live deploymentSome live deploymentSignificant live use Composite Applications – by industry Organisations > 1,000 employees (350)

31. 31 Copyright IDC 2005 0%10%20%30%40%50%60%70%80%90%100% Business Svc Financial Svc Healthcare Local/Central Gov Manufacturing Other Telco Transport Don’t knowNo plansBeing consideredPilot project Limited live deploymentSome live deploymentSignificant live use Business Process Automation – by industry Organisations > 1,000 employees (350)

32. 32 Copyright IDC 2005 Topics What’s wrong with IT today?  How did we get into this mess?  What does business really need? Integration – beyond proprietary  XML, Web services & the place of standards  Enterprise Service Bus – standards-based integration So what does this let us do?  Business Process Automation  A single view of information Market readiness

33. 33 Copyright IDC 2005 Finally - how stable is the new architecture? No need to abandon existing applications or platforms Standards well defined & well adopted for “inside the firewall” use Adequate security features available for interoperability with known external partners High levels of ROI possible with SOA-enabled Business Process Automation Service Oriented Management technology available, with growing experience of usage Dynamic search - low demand - still “bleeding edge” Standards will continue to evolve for many years

34. www.idc.com Service Oriented Architecture: the context behind SOA Rob Hailstone Director, European Software Infrastructure Research rhailstone@idc.com