Systems vs Services Example ADP Payroll Processing Internal Payroll System Employee Database Characteristics Functional Focus Economies of Scale Common Business Practices Standardized Data SaaS – Software as a Service Services Data Systems
On Demand Services
Complete Business Systems
Available On Demand
Web Browser Interface
Web Services - standard interfaces
Any Internet Connectable Device
Web-based hosted ERP
Shared dynamic services
Easy to Use Web Interface
Market Proven Solutions
Complete Trusted System Environment
Predictable costs (lower TCO)
Predictable service levels
Common Consumer Examples
Microsoft – Hotmail
Volumes exceed all but the largest internal IT systems –Google exceeds even the largest internal systems.
Enterprise On Demand Services
Siebel on Demand
Microsoft Sharepoint / Dynamics
Interpersonal communication centric – Human interaction vs. System interaction
On Demand Evolutionary Tree Mainframe PC Client/Server Web 1.0 Groupware ASP Email Personal Databases Timeshare Managed Networks Googleplex Hosted Web Sites Packaged ERP Open Source SQL Standards Virtual Machines Web 2.0 Multi-Tenant SaaS Iphone Von Neumann Computer
Is this Web 2.0?
Tim O’Rielly’s take on Web 2.0
The Web as Platform
You control your own data
Services, not packaged software
Architecture of participation
Remixable data source and data transformations
Software above the level of a single device
Harnessing collective intelligence
PaaS Quadrants for all Multi-Tenant Hosted Services Development Deployment Data Legacy Extension IBM SAP SOA Consumer Web Google Amazon S3 Market Extension MS Dynamics (Outlook) New Platforms Salesforce.com NetSuite Open Source Too Complex Too Limited Too Simple Too Early
Current Market Pricing
Free – advertising / transaction fees
Almost free – advertising / annual rental
Enterprise (CRM On Demand)
Per User per Month $50 - $150
Comparable to in-house fully loaded support costs for groupware
Metered usage pricing
Unlike software – on demand services have a direct cost component.
IT Time of Transition
IT used to be feared – automation of human functions.
IT became ubiquitous – record keeping, transaction processing, data mining, communication processing.
IT became personal, email, spreadsheets, word processing, digital photography, iTunes.
IT is now a user tool – entertainment, blogging, Wiki’s, etc. The computing fabric is completely divorced from the user interaction.
Consumer experiences now set expectations for all IT.
Mobile phones are the most widely available computing platform
Ease of use is essential – no manual and no training
User personalization and user functional utility paramount
Shared experiences rule
From end user control to serving the customer
Enterprise Architecture Implications
External factors driving requirements
New vendors and new decision makers
Business cycle time
Rapid development and delivery platforms
Increased value of data management
Importance of data quality
Traditional IT Architectures Application User Interface Network Database Application Network User Interface Integrated n-Tier Application User Interface Network Database
Evolving IT Architectures Application User Interface Database Application Network User Interface Database Network Disintegrated Virtual Device Interfaces Virtual Servers Virtual Databases
Radical Shift – 3rd Dimension Application User Interface Database Application Network User Interface Database Network Internet Application User Interface Database Application Network User Interface Database Network
From Internal to External Focus
Questions have changed
No longer - What do we offer our customers?
Now – How do our customers want us to interact with them?
No longer – What is our enterprise architecture?
Now – What services do we need to provide to our partners?
Sales f orce .com Demo Enterprise On Demand Market Leader
Enterprise Data Size Perspectives Database Data Hierarchy Reference Data – Master Data Management Database Operational Data – ODS / Application Databases Database Database Database Historical Data – Data Warehouses Archival Data – Compliance Databases External Data – Data Mining
Enterprise Data Issues
Shifting boundaries – organization acquisition and restructuring
ERP Packages define data models
Infrastructure barriers – data centers / security models / geography
Overhead of data management tools and staff
Size and scope boundaries
Is Service Oriented Architecture (SOA) the answer?
Service Oriented Architecture
SOA has generally been seen as:
A way to improve internal systems integration
A design that supports more flexible web deployment of enterprise services
Emerging Cloud Computing players will reverse the equation
No longer - How do I integrate Siebel with my CIF?
Now – How can I advertise my services on Google?
Emerging Global Market
Oracle On Demand
Consumer driven interfaces Global Innovation Mass Customization Web Economies of Scale Forces
New PaaS platforms leverage enterprise design principles
Easy to use interfaces
Integrated relational databases
Customizable data and process models
Open standards for integration
Built in security
Any time, any where, any number of users / transactions / records
And leverage the consumer Web
Global Best Practices
Fundamentally designed for inter-organizational communication
Evolutionary service design
Constant improvement model
And support data management
Meta data API / Tools
Multiple integration options
Public Web Services (Mash Ups)
Data import / export / synchronization
Styles of On Demand Applications Vendor / Shared ownership Enterprise Business owned Enterprise IT owned Business owned Customer need Business Value Cost of Ownership Functional Focus Google Ad Words Wealth Management Administrative Applications Case Management Multi-Org Integrated Platform Packaged Today Tomorrow
Impact on businesses
Vendor centric design patterns
Integration of information
External integration challenges
Data Management call to action
Data management is important to the effective development of On Demand services
Data issues will be explored and exploited much more quickly than in the past
Data management needs to participate in the introduction of On Demand services
Data Models and Implementations Traditional Systems On Demand Services Shared Black Box DBMS Storage Administrative Configuration Tools Dictionary Tools XML (WSDL) + Meta-Data API Conceptual Logical Physical Entity Relationship Diagram