Soa Recession Conference 0309

Is SOA a means for Leveraging Business development in Recession? Avi Rosenthal Blog: http :// avirosenthal . blogspot . com / Business Analysts Conference 23 March 2009 Kfar Hamakabia Ramat-Gan Israel

Presentation Goals
Analyzing Current SOA status
Understanding factors influencing SOA roleout during Recession

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

Presentation Agenda
SOA Current Status
SOA Value in Nutshell
IT Trends in Recession periods
SOA directions in Recession periods
Summary

SOA is Dead Anne Thomas Manes
Long Live Services

ebizQ SOA Market Pulse 2008 Source: ebizQ

ebizQ SOA Market Pulse 2008: number of SOA based efforts Source: ebizQ

ebizQ SOA Market Pulse 2008: SOA Scope Source: ebizQ

ebizQ SOA Market Pulse 2008: SOA penetration Source: ebizQ

ebizQ SOA Market Pulse 2008: Precent of IT budget 2008 Source: ebizQ

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

Current Status - Summary
More than 50% start their SOA initiatives
No clear indication of stage of SOA initiative
Different SOA definitions
If Web Services are defined as SOA then survey results shows deeper penetration
Multiple SOA initiatives in an enterprise
SMBs and Large Enterprises differences
Only few enterprises are in final stages of implementation
Less penetration in Israel

Presentation Agenda
SOA Current Status
Summary

SOA Value Proposition
Business and IT alignment
Reuse
Flexibility, Adaptability, Agility
Improved Processes
Reduced maintenance &development costs
Two types of SOA Value propositions: Profitability Value drives, Flexibility value Drives

Justification
Business (70%-80%) IT (20%-30%)
Cascading effects
Reuse
Agility
Productivity
Postponing the SOA initiative could negatively influence the company’s competetive position

Presentation Agenda
SOA Current Status
Summary

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

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

IT in Recession - Considerations
Lost skills
Recovery after Recession
Positioning after Recession
How to increase effciency without harming the Business and the IT department?
Merging and acquisitions
Recession catalyzing merges and acquisitions
New regulations
Recession catalyzing new regulations

IT in Recession - Coping
Form a Cost Cutting team ASAP
Auditing by non-IT expert
Goals:
Enterprise wide savings (not IT only savings)
Visibility
Short reporting cycle

IT in Recession - Savings
Check contarcts with Vendors & Integrators
Minimize Hardware and Software redundencies
Cancel unnecessary services
Reduce Operational Costs
Purchasing only what you must
Storage, Analytical BI, Virtualization,
Security (Data, End Points), Cloud Computing

IT in Recession – How much to cut off? Companies should tighten their belts, not take their pants off. Andrew Reichman, senior analyst, Forrester Research

Presentation Agenda
SOA Current Status
Summary

60 Seconds on how not to implement SOA
No IT & Business alignment
No adequate Governance
VDA
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

Enterprise Architecture (EA)
A means for saving
Leveraging current assets for better future operatrions
Savings by elimination of redundancies
Savings by corelation between strategy and applications inventory
Investing in Architecture is an opportunity for SOA implementation
SOA is a type of an Enterprise Architecture

SOA adoption Stages Setup Experiencing expansion Exploitation Enterprise SOA Non-programmatic Preparations Pilot Integration. BPM Management Dynamic Fabric

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.

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

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

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

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

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

Q&A For additional information http :// avirosenthal . blogspot . com /

Soa Recession Conference 0309

by Avi Rosenthal

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