Transforming Software Architecture for the 21st Century (September 2009)

Transforming Software Architecture for the 21st Century Focusing the Power of People and Today’s Network on Opportunity Dion Hinchcliffe

Introduction Dion Hinchcliffe • ZDNet’s Enterprise Web 2.0 • http://blogs.zdnet.com/Hinchcliffe • Social Computing Journal – Editor-in-Chief • http://socialcomputingjournal.com • Enterprise 2.0 TV Show • http://e2tvshow.com • •Hinchcliffe & Company http://hinchcliffeandco.com • mailto:dion@hinchcliffeandco.com • Web 2.0 University • http://web20university.com • : dhinchcliffe

A Short History of Software

Software architecture – The definition of the fundamental structure and properties of software systems: Components, resilience, scalability, adaptability, reliability, changeability, maintainability, extensibility, security, technologies, standards, and other key constraints.

The classical ways of describing architecture

Many sophisticated architectural frameworks exist today • 4+1 • Department of Defense Architecture Framework (DODAF) • UK Ministry of Defence Architectural Framework (MODAF) • The Open Group Architecture Framework (TOGAF) • Zachman framework • Federal Enterprise Architecture • Reference Model of Open Distributed Processing (RM-ODP) • Service-Oriented Modeling Framework (SOMF)

Areas where traditional EA models often struggle • Don’t respond to change quickly enough • Aren’t aligned with current business reality • Lack of focus on driving consumption (or network effects) • Too centralized and isolated • Expensive and resource-intensive • Overengineered in the wrong places. Excessively constraining.

“My Web site is bigger than your enterprise”

Today’s Software Architectures Are Also Extremely Sophisticated • Highly distributed and federated • Often have a social architecture • Built from cutting edge ingredients Example: http://clickatell.com • Have to scale globally • Set with expectations that are very high for Integrating with 3rd party functionality and low for the cost to suppliers live on the Web develop/own new solutions as well as being a 3rd party supplier is the name of the • Increasingly created with productivity-oriented game circa-2009 design & development platforms

There’s A Lot To Master Today To Architect Credible Solutions:

• Some of this is around what we call “2.0” • Peer production and crowdsourcing • Owning your classes of data on the network • Using new distribution models to leverage the Web as your platform • Social systems • Open supply chains and 3rd party sourcing (http://programmableweb.com)

The architecture “stack” is bigger now

But existing integration models have been challenged • Most SOA initiatives are delivering low ROI to the business • The reasons are many but boil down to: – Lack of engagement: Focus on technology instead of business problems. – Slow adaptation: Top-down enterprise architecture moves slower than the environment changes. – Low levels of use: Important avenues of SOA consumption and production points are often excluded from participation.

The results of a large new SOA effectiveness study: •“It has become clear to me that SOA is not working in most organizations.” – Anne Thomas Manes, Burton Group

Demand for Breadth Integration • “48 percent of the CIOs we surveyed said that they plan to implement service- oriented architectures for integration with external trading partners this year.” – McKinsey & Co.

And we now have real-world experience with traditional means of connecting to our data • Traditional Web services was a good ﬁrst try but has a long list of challenges for the outcomes we desire today. • The model of the Web has continued to teach us about how to structure information and services.

Strange Attractors: Similarities between Web 2.0 and SOA • Web 2.0 • SOA – Software as a service – Software as services – Interoperability based on – Interoperability based on Web heavyweight standards principles – Applications as platforms – Applications as platforms – Permits unintended uses – Encourages unintended uses – Composite Apps – Mashups – Little user interface guidance – Little prescription of user – Rich user interfaces participation – Architecture of Participation

One Emergent Solution: Web-Oriented Architecture distribution and composition Open APIs identity OpenID and Data Mashups security WOA OAuth Widgets Core SSL HMAC-SHA-1 REST WADL XML URIs data formats BitTorrent ATOM and description protocols and WOA IXMLHTTPRequest interfaces JSON Full

Enabling New Consumption Scenarios • Cut-and-Paste deployment anywhere on the Intranet • Consumption of the SOA in any application that can use a URL • Discovery of data via search • Integration moves out of the spreadsheet

Recent technological innovations coming primarily from the online world • Cloud computing • Utility/grid/Platform-as-a-service • Non-relational databases • S3, CouchDB, GAE Datastore, Drizzle, etc. • New “productivity-oriented” platforms • RIA: Flex/AIR, JavaFX • Stacks: Rails, CakePHP, Grails, GAE, iPhone, etc. • Web-Oriented Architecture

Changes to the processes that create architecture • Increasing move to assembly and integration over development of new code • Perpetual Beta and “extreme” agile • Community-based development and “commercial source” • Product Development 2.0

Emergent Architecture

Tenets of Emergent Architecture • Community-driven architecture • Autonomous stakeholders • Adaptive processes • Resource constraints • Decentralized solutions • Emergent outcomes

Beneﬁts • Dynamic response and adaptation to change • Architecture supported and driven widely by local users • Less waste • More access to opportunity • Better ﬁt to business needs

Open Supply Chains also know n as APIs

vs. : The Platform Overtakes the Web Site

Motivations for Open Supply Chains • Increase reach and head off competition • Tap into innovation • Grow external investment • Cost-effectively scale business relationships • Going from 10s to thousands of integrated partners

Example: Amazon • 1st Gen. Product: E-commerce store – No differentiation – Scaling of a single site – Single site • 2nd Gen. Product: E-commerce platform – 55,000 partners using their e-commerce APIs live – Scaling of the Web • 3rd Gen. Product: A series of Web platforms – Simple Storage Service (S3) – Elastic Compute Cloud (EC2) EC2 S3 – Mechanical Turk (Mturk) – Many others – 300K businesses build on top of what they’ve produced • 2nd and 3rd generation platforms generate large net revenue

Open Platform vs. Closed Platform

The Market Share Opportunity • The vast majority of Internet user activity is elsewhere, on 3rd party Web sites and applications • If firms could reach this traffic, the growth potential is as large as the Web itself • Reaching this traffic before competitors do can result in successful marketshare “lock-out” • Businesses able to cost-effectively integrate with a large number of partners to grow • Access and offer value to existing ecosystems of customers

Opportunity: Going To the Customer and Open Web APIs Tens of Thousands of Dynamic Web Partners Partner Partner Partner Partner Partner Partner Partner New Business Partner Partner Partner Partner Partner Partner Division: Partner Partner Partner Partner Partner Interact Additional Partner Partner Partner Partner Revenue via Usage Fees, Live Web + Advertising, etc. Integration $$$ Open API Monetization Boundary + Consumer or Business Interact Online Business Direct Revenue

Platforms vs. Applications Distribution Models Target Audiences Consumers Native App existing Web Application Small Businesses Medium-Sized Business Open Widgets Power/Web Saavy Users Facebook/Open Social Developers Web API SDK, Developer Community, SLA, Billing Businesses

Platforms vs. Applications Distribution Distribution Models Order of Magnitude Method Native App 10M Users Push Desktop Client API 10M Users Pull Open Widgets 10-20M Users Pull Facebook/Open Social Open Web API SDK, Developer Community, SLA, 100M+ Users Pull Billing

Key API Goals • Leveraging existing investments as much as possible (reduce rework in design and architecture) • Protect intellectual property around proprietary capabilities • Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience • Selecting a discriminating factor (rich vs. reach) • Scope: Graduated capability vs. full initial API

Long-term future usage breakdown w/API Other Apps Embedded Apps • Reach every distribution Web Mobile Apps channel possible Web Widget Apps • Leverage 3rd party customer iPhone Apps bases Open Social Apps • Cut off competitor’s growth OPPORTUNITIES 3rd Party Web Apps • Ride the MAXIMUM POTENTIAL growth curve Facebook Apps (driving consumption) • Harness innovation of Existing Web Site or hundreds and thousands of Application 3rd party developers

Reasons Developers Select APIs Key to initial adoption Key to long-term adoption • Provides access to • Reliable, well-known, scalable functionality not possible provider that is trusted to develop internally • Developers can get answers to • Easy to use and integrate questions, support, and with problems ﬁxed when bugs are • Good documentation and found easy to get started • Strong user base for 3rd party developers to tap

“Platforming” Your Business • Requires opening the server-side to 3rd party developers • Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners • Harnessing the innovation on the network • Generating the greatest potential reach, competitive lock-out, market share, and revenue • Warning: Must maintain control of hard-to-recreate data

Open API Challenges • Foreign business model for traditional companies • Requires full-spectrum support from the business (marketing, sales, customer service, technical support, etc.) • Successful monetization strategies vary greatly • The biggest successes are ﬁrms which create a well-funded dedicated business division

Open Supply Chains: The bottom line • Good repeatability • Can be costly • Unproven in some industries (yet) • Proven ROI (example: $300M+ net revenue) Strategic Industry Play

High Velocity Processes: The Web’s Version of Agile • Shadow Apps for real- time feedback • Customer-Sampling and Live Testing • Granular Versions (constant evolution) • Daily, even hourly, releases

Product Development 2.0

An extremely competitive environment: Our architectures must explicitly focus on building network effects

New Distribution Models

2.0 models are beginning to transform everything • Product Development • Marketing and Advertising • Operations • Customer Service

The network is consistently proving to be the best solution for many classes of problems

So how do we re-imagine our software architecture for the 21st century?

Challenges to Transitioning to New Architectural Modes • Innovator’s Dilemma • “How do we disrupt ourselves before our competition does?” • Not-Invented Here • Overly fearful of failure • Deeply ingrained classical software culture • Low level of 2.0 literacy

What we often see in the marketplace today • Too many copy-cat methods • Failure of imagination and courage • New architectural concepts as an after- thought. Or tacked on as a “checklist” item. • Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes

Key Lesson: We now have a fundamentally new and better set of lenses through which to look at leveraging value on the network:

• Push to pull systems • Web 2.0 design patterns and business models • New modes of software, platforms, and architectures • Productivity-Oriented Platforms • Web-Oriented & Emergent Architecture • New Distribution Models

It’s time to change our DNA • Moving from the 20th century towards 21st century businesses • Deeply understanding the network and its profound potential for creating growth and building value • Putting proven new models into the core of our lines of business and enterprise architecture

Questions Slides: dion@hinchcliffeandco.com

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Transforming Software Architecture for the 21st Century (September 2009)

by Dion Hinchcliffe on Sep 24, 2009

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Transforming Software Architecture for the 21st Century (September 2009) — Presentation Transcript