Is SOA a means for Leveraging Business development in

Recession?

Avi Rosenthal

Blog: http://avirosenthal.blogspot.com/

Business Analysts Conference

23 March 2009Kfar HamakabiaRamat-GanIsrael

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Presentation Goals

Analyzing Current SOA statusUnderstanding factors influencing SOA

roleout during Recession

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Speaker’s Qualifications

15 Years experience as consultant Technologies and Architectures Consultant for 35+

organizations Participated in Consulting assignments behalf of

Leading Analysts companies 20 years of experience as CTO, Technical Manager

and Technical Expert Moderator of the SOA Forum of The Israeli

Association of Information Processing Assessed software products initiatives behalf of VCs

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Presentation Agenda

SOA Current StatusSOA Value in NutshellIT Trends in Recession periods SOA directions in Recession periods Summary

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Presentation Agenda

SOA Current StatusSOA Value in NutshellIT Trends in Recession periods SOA directions in Recession periods Summary

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SOA is DeadAnne Thomas Manes

Long Live Services

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ebizQ SOA Market Pulse 2008

Source: ebizQ

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ebizQ SOA Market Pulse 2008: number of SOA based efforts

Source: ebizQ

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ebizQ SOA Market Pulse 2008: SOA Scope

Source: ebizQ

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ebizQ SOA Market Pulse 2008: SOA penetration

Source: ebizQ

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ebizQ SOA Market Pulse 2008: Precent of IT budget 2008

Source: ebizQ

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SOA penetration in Israel

IDC Israel, Information Systems Managers survey Q208

Full assimilation 3%

Partial assimilation 14%

Plan to begin SOA initiative this year 10%

Plan to begin SOA initiative in the future 22%

Do not plan to implement SOA 51%

Source: IDC Israel

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Current Status - Summary

More than 50% start their SOA initiativesNo clear indication of stage of SOA initiativeDifferent SOA definitionsIf Web Services are defined as SOA then survey results

shows deeper penetrationMultiple SOA initiatives in an enterpriseSMBs and Large Enterprises differencesOnly few enterprises are in final stages of

implementationLess penetration in Israel

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Presentation Agenda

SOA Current StatusSOA Value in NutshellIT Trends in Recession periods SOA directions in Recession periods Summary

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SOA Value Proposition

Business and IT alignmentReuseFlexibility, Adaptability, AgilityImproved ProcessesReduced maintenance &development costs

Two types of SOA Value propositions:Profitability Value drives, Flexibility value Drives

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Justification

Business (70%-80%) IT (20%-30%) Cascading effects Reuse Agility Productivity

Postponing the SOA initiative could negatively influence the company’s competetive position

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Presentation Agenda

SOA Current StatusSOA Value in NutshellIT Trends in Recession periods SOA directions in Recession periods Summary

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IT Strategy Celent

Get Bigger Increase revenues Get Leaner Reduce costs Get Smarter Improve data and systems usage

Strategy is frequently based on those

3 elements.

Elements mix is changed during Recession

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IT Strategy in Recession

Reduce human resources costs

cut salaries, reduce work hours per employee, dismiss from jobs

Focusing on must to do Reduce Software and Hardware acquisitions Decrease and stop Development Projects

SOA? Less tolerance for SOA failures efficiency

improved processes, improved systems Focus on Short Term ROI

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IT in Recession - Considerations

Lost skillsRecovery after RecessionPositioning after RecessionHow to increase effciency without harming the

Business and the IT department?Merging and acquisitions

Recession catalyzing merges and acquisitions

New regulationsRecession catalyzing new regulations

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IT in Recession - Coping

Form a Cost Cutting team ASAPAuditing by non-IT expert

Goals:Enterprise wide savings (not IT only savings) Visibility

Short reporting cycle

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IT in Recession - Savings

Check contarcts with Vendors & IntegratorsMinimize Hardware and Software redundenciesCancel unnecessary servicesReduce Operational CostsPurchasing only what you must

Storage, Analytical BI, Virtualization,

Security (Data, End Points), Cloud Computing

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IT in Recession – How much to cut off?

Companies should tighten their belts, not take their pants off. Andrew Reichman, senior analyst, Forrester Research

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Presentation Agenda

SOA Current StatusSOA Value in NutshellIT Trends in Recession periods SOA directions in Recession periods Summary

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60 Seconds on how not to implement SOA

No IT & Business alignment No adequate GovernanceVDA Big Bang Ignoring Maturity Without Consulting A Project instead of an

Architecture

SOA principles as described above are destinated for failure and termination especially during Recession

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Enterprise Architecture (EA)

A means for savingLeveraging current assets for better future

operatrionsSavings by elimination of redundanciesSavings by corelation between strategy and

applications inventoryInvesting in Architecture is an opportunity for

SOA implementation

SOA is a type of an Enterprise Architecture

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SOA adoption Stages

Setup Experiencing expansion Exploitation Enterprise SOA

Non-programmatic Preparations Pilot Integration. BPM

ManagementDynamic

Fabric

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SOA in Recession Leverage or decelerate - SOA Stage

Enterprise SOA + Most of the resources were already invested. Reuse

based and other benefits could be realized Exploitation +

large amount of resources investment had been done. Consider defering some investments. Reuse based and other benefits could be realized.

Expansion ?+ Significant investment had been done. Consider

defering some infrastructure investments. Reuse based and other benefits could be realized.

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SOA in Recession Leverage or decelerate - SOA Stage (2)

Experiencing X?

Few resources were already invested. Depends upon Organization positioning. Proof of quick Value required. Should the organization move to next steps?

Pilot X? Stop? Complete Pilot and stop? Error prone

process is unacceptable

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Factors determining leveraging or decelarating SOA

Organizational Maturity Get Smarter Pain Points which could be addressed by SOA

Get Smarter

SOA Initiative Management Get Smarter Merge or Acquisition is expected? Get Bigger

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Factors determining leveraging or decelarating SOA(2)

Long Term planning Get Bigger Innovations Get Smarter Virtual Enterprise Get Smarter, Get Leaner,

Get Bigger Risk Management Get Smarter

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Do Less SOA with More

• Available budget -> Start a SOA implementation

• Oops … error -> Start again• Multiple concurrent SOA projects• Large number of Services

The Result: unsuccessful SOA initiative

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Do More SOA with Less

• A SOA Initiative. No money -> Wait • What to do while waiting -> planning• A focused and planned endevour• Measurable benefits

The result: Successful SOA implementation

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Q&AQ&A

For additional informationhttp://avirosenthal.blogspot.com/