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  1. 1. Integrating Business Services Networks and the Internet of Things: A New Framework for Mobile Software as a Service (mSaaS) Stéphane Gagnon, Ph.D. Associate Professor Université du Québec Gatineau, QC, Canada [email_address] Kemal Cakici, Ph.D. Risk Management Officer International Finance Corporation Washington, DC, USA [email_address] itAIS 2008 V Conference of the Italian Chapter of AIS Paris, December 13-14, 2008
  2. 2. Outline <ul><li>Introduction </li></ul><ul><li>Integrating Converging Technologies </li></ul><ul><ul><li>Service Oriented Architecture (SOA) </li></ul></ul><ul><ul><li>Software as a Service (SaaS) </li></ul></ul><ul><ul><li>Business Services Networks (BSN) </li></ul></ul><ul><ul><li>Internet of Things (IoT) </li></ul></ul><ul><li>Assessment Framework </li></ul><ul><ul><li>Supplier Issues </li></ul></ul><ul><ul><li>Market Issues </li></ul></ul><ul><ul><li>Adopter Issues </li></ul></ul><ul><ul><li>Delivery Issues </li></ul></ul><ul><ul><li>Extension of the Framework </li></ul></ul><ul><li>Conclusion </li></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  3. 3. 1. Introduction <ul><li>Software as a Service (SaaS) offers one of the most cost-effective approaches to implementing a Service Oriented Architecture (SOA) </li></ul><ul><li>Mobility is becoming a key feature of SOA </li></ul><ul><ul><li>Emerging platforms to seamlessly integrate SaaS components </li></ul></ul><ul><ul><li>Emerging infrastructure to enable mobile SaaS (mSaaS) </li></ul></ul><ul><li>Propose an integrated assessment framework </li></ul><ul><ul><li>Evaluate business models to commercialize mSaaS </li></ul></ul><ul><ul><li>Identify 4 integration perspectives: Supplier, Market, Adopter, and Delivery issues </li></ul></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  4. 4. 2. Integrating Converging Technologies 2008-12-13 Copyright © 2008 Gagnon & Cakici <ul><li>Services Computing </li></ul><ul><ul><li>Service Oriented Architecture (SOA) has become a key approach to developing and modernizing enterprise applications </li></ul></ul><ul><ul><li>Web Services , and related XML WS-* standards in development, allow for the implementation of composite services using workflow standards such as the Business Process Execution Language (BPEL) </li></ul></ul><ul><ul><li>Software as a Service (SaaS) realizes the commercial potential of Services Computing </li></ul></ul><ul><ul><li>Business Services Networks (BSN) allow SOA solutions with Pay-Per-Use web services </li></ul></ul><ul><li>Pervasive Computing </li></ul><ul><ul><li>Ubiquitous connectivity, broadband adoption, mobile Internet access and mobile devices </li></ul></ul><ul><ul><li>Radio Frequency Identification (RFID), sensors networks, wearable/embedded computers </li></ul></ul><ul><li>Emergence of Web 2.0 </li></ul><ul><ul><li>Socially-enhanced creativity </li></ul></ul><ul><ul><li>Seamless communications </li></ul></ul><ul><ul><li>Secure information sharing </li></ul></ul><ul><ul><li>Collaborative/interactive services </li></ul></ul><ul><ul><li>Intelligent content management </li></ul></ul><ul><li>Evolution Toward Web 3.0 </li></ul><ul><ul><li>Network computing, web services interoperability, grid/cloud computing </li></ul></ul><ul><ul><li>Open identity, open reputation, roaming portable identity/personal data </li></ul></ul><ul><ul><li>Semantic web, natural language processing, autonomous intelligent agents, mobile machine learning </li></ul></ul>
  5. 5. 2.1. Service Oriented Architecture (SOA) <ul><li>Definition </li></ul><ul><ul><li>Application development perspective where systems integrate functionality around business processes reusing interoperable services </li></ul></ul><ul><ul><li>SOA separates functions into distinct units, or services, which developers make accessible over a network in order that users can combine and reuse them in the production of business applications </li></ul></ul><ul><li>SOA Principles </li></ul><ul><li>Formal contract </li></ul><ul><li>Loose coupling </li></ul><ul><li>Abstraction </li></ul><ul><li>Reusability </li></ul><ul><li>Autonomy </li></ul><ul><li>Statelessness </li></ul><ul><li>Discoverability </li></ul><ul><li>Composability </li></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici Source: Figure by Angela Martin, available on Wikipedia, and based on the book: Michael Bell, (2008), Service-Oriented Modeling: Analysis, Design, and Architecture , Wiley
  6. 6. 2.2. Software as a Service (SaaS) <ul><li>Definition </li></ul><ul><ul><li>A business model for hosted software components exposed through Web Service interfaces integrated in applications based on SOA </li></ul></ul><ul><ul><li>Can be an atomic XML Web Service or a complete BPEL process </li></ul></ul><ul><ul><li>e.g. Web 2.0 Mash-up, Credit Rating WS, Outsourcing to Payroll BPEL </li></ul></ul><ul><li>Business Models </li></ul><ul><ul><li>Provisioning Web Services with a utility computing, pay-per-use, metered, or on demand business model </li></ul></ul><ul><ul><li>Merging the components of several vendors into a WS-enabled Application Service Provider (ASP) </li></ul></ul><ul><ul><li>Developing high-performance WS-enabled business processes (e.g., using BPEL) to provide end-to-end and on demand Business Process Outsourcing (BPO) </li></ul></ul><ul><li>SaaS vs. other On Demand Solutions </li></ul><ul><ul><li>On Demand is the aggregate category of business models including ASP, SaaS, Utility, in quantity/time as per enterprise demand/needs </li></ul></ul><ul><ul><li>Utility Computing refers to providing infrastructure services (e.g. grid-based processing power) on pay-per-use or temporary subscription </li></ul></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  7. 7. SaaS vs. On Demand Solutions WS-Enabled ASP 2008-12-13 Copyright © 2008 Gagnon & Cakici Focus On Demand Infrastructure Applications & Infrastructure Remote Utility Computing Web Services Integrated & Remote Managed Service Provider (MSP) Application Service Provider (ASP) Synonym: Solution Outsourcing Synonym: Software as a Service (SaaS)
  8. 8. 2.3. Business Services Networks (BSN) <ul><li>Definition </li></ul><ul><ul><li>IT infrastructure allowing a group of organizations to provision and consume their respective software components as services </li></ul></ul><ul><li>BSN as a Service Intermediary </li></ul><ul><ul><li>Operated by a third-party IT service firm </li></ul></ul><ul><ul><li>Focused around a service governance lifecycle for seamless SOA </li></ul></ul><ul><ul><li>Provides secure public repository for services and identities </li></ul></ul><ul><ul><li>Offers flexible pay-per-use or subscription business models for SaaS </li></ul></ul><ul><ul><li>Ensures compliance with industry Quality of Service (QoS)/regulations </li></ul></ul><ul><li>BSN & SaaS Ecosystem </li></ul><ul><ul><li>BSN is at core of market between SaaS vendors and adopters </li></ul></ul><ul><ul><li>Dependence on open infrastructure and identity management </li></ul></ul><ul><ul><li>Support for service certification, audit, compliance </li></ul></ul><ul><ul><li>Dynamism through community of developers & integrators </li></ul></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  9. 9. BSN & SaaS Ecosystem Product Certification Consultant Audit & Compliance Insurance & Legal Major Vendors Integrator or Reseller Standards Org. Infrastructure, Hosting & Caching Identities, Accounts & Subscriptions SaaS Vendor BSN Operator SaaS Consumer Marketing Affiliate Sys. Integrator Outsourcer Developer Assembler Tester Partner Community Support Open Source Projects Market Tech. QoS 1 2 3 4 5 6 2008-12-13 Copyright © 2008 Gagnon & Cakici
  10. 10. 2.4. Internet of Things (IoT) <ul><li>Definition </li></ul><ul><ul><li>New paradigm for wireless and pervasive computing to seamlessly integrate various objects to the internet </li></ul></ul><ul><li>Core Technology – Radio Frequency Identification (RFID) </li></ul><ul><ul><li>Automatic identification method, relying on storing and remotely retrieving data using RFID tags or transponders </li></ul></ul><ul><ul><li>Components: </li></ul></ul><ul><ul><ul><li>Integrated circuit for storing and processing information, modulating and demodulating a radio-frequency (RF) signal, and other specialized functions </li></ul></ul></ul><ul><ul><ul><li>An antenna for receiving and transmitting the signal </li></ul></ul></ul><ul><ul><ul><li>Two types of RFID tags, active (with battery) and passive (without battery) </li></ul></ul></ul><ul><li>Integration Opportunities </li></ul><ul><ul><li>Static entities: supplies, products, and equipments </li></ul></ul><ul><ul><li>Dynamic entities: people, animals, and vehicles </li></ul></ul><ul><li>High Value-Added Applications </li></ul><ul><ul><li>Supply Chain Management, Industrial Production, Retail & Services </li></ul></ul><ul><ul><li>Healthcare, Intelligent Home, Agriculture, Public Security, Military </li></ul></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  11. 11. Radio Frequency Identification (RFID) 2008-12-13 Copyright © 2008 Gagnon & Cakici Source: Roy Want, (2006) &quot;An Introduction to RFID Technology&quot; IEEE Pervasive Computing , January-March, pp.25-33 (Fig.5, page 29)
  12. 12. Internet of Things: Integrate RFID & Devices 2008-12-13 Copyright © 2008 Gagnon & Cakici Source: CASAGRAS, (2008) &quot;Interim Report: Coordination and Support Action for Global RFID-related Standardisation Activities, A Project of the EU 7th Framework Programme&quot; London, UK, September, Fig.2, page 14
  13. 13. Linking RFID to Enterprise Applications 2008-12-13 Copyright © 2008 Gagnon & Cakici Source: Quan Z. Sheng, Xue Li, Sherali Zeadally, (2008) &quot;Enabling Next-Generation RFID Applications: Solutions and Challenges&quot; IEEE Computer , September, pp.21-28 (Fig.1, page 23)
  14. 14. RFID Platform for Internet of Things 2008-12-13 Copyright © 2008 Gagnon & Cakici Source: Wen Zhao, Xinpeng Li, Dianxing Liu,Yu Huang, Shikun Zhang, (2008) &quot;SaaS mode based Region RFID Public Service Platform&quot; Third 2008 International Conference on Convergence and Hybrid Information Technology , IEEE Proceedings Series, November, pp.1147-1154 (Fig.1, page 1148)
  15. 15. 3. Assessment Framework <ul><li>Assessment of mSaaS Business Models </li></ul><ul><ul><li>mSaaS commercialization depends on complex integration of business and technology factors </li></ul></ul><ul><ul><li>BSN are at the core of SaaS commercial success </li></ul></ul><ul><ul><li>IoT integrated to BSN creates opportunity for mSaaS </li></ul></ul><ul><ul><li>Need a business-oriented assessment framework </li></ul></ul><ul><ul><li>Best to adopt a transactional view of the relationships in SaaS commercialization and adoption </li></ul></ul><ul><li>Identify stakeholder perspectives/viewpoints: </li></ul><ul><ul><li>Supplier : Independent Software Vendors (ISV) </li></ul></ul><ul><ul><li>Market : Competition among various ISV’s and Services </li></ul></ul><ul><ul><li>Adopter : Enterprises, SME’s, End-Users, … </li></ul></ul><ul><ul><li>Delivery : Ensuring QoS, security, compliance, … </li></ul></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  16. 16. Key Issues for BSN & SaaS Stakeholders 2008-12-13 Copyright © 2008 Gagnon & Cakici 1. Inventory 2. Re-Factoring 3. Mining 4. Composition 5. Development 6. Publishing 7. Pricing 8. Marketing 9. Discovery 10. Testing 11. Benchmarking 12. Evaluation 13. Contracting 14. Payment 15. Integration 16. Delivery 17. Security 18. Balancing 19. Monitoring 20. Compliance Supplier Issues Market Issues Adopter Issues Delivery Issues Supplier 1 Adopter 1 Developer BSN Adopter 2 Web Developer Supplier 2 Supplier 3 1 2 3 4 5 6 16 11 7 8 9 10 12 13 14 15 17 18 19 20
  17. 17. 3.1. Supplier Issues <ul><li>Inventory : What software component, full applications, and automated processes are valuable to other companies and users, and marketable through SaaS-enabled grids? </li></ul><ul><li>Re-Factoring : How can the code and process be re-factored and SaaS-enabled so it can be commercially exposed on the market? </li></ul><ul><li>Mining : How can we identify in the company’s inventory those components and processes that meet stringent commercial and operational requirements for dynamically exposed end-points? </li></ul><ul><li>Composition : What SaaS standards and development tools are needed to build commercial-grade services, applications, and processes? </li></ul><ul><li>Development : How should we adjust development methods in order to blend application, software, market, and venture development methods? </li></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  18. 18. 3.2. Market Issues <ul><li>Publishing : What new standards should be developed for the Semantic Grid to properly describe and publish the commercial features of new services, applications, and processes? </li></ul><ul><li>Pricing : How much should new offerings be priced, and what pricing mechanisms would ensure stability in provisioning these offerings? </li></ul><ul><li>Marketing : How should offerings be bundled, market segmented, and the sales process automated? </li></ul><ul><li>Discovery : What new standards should be developed to automate the discovery of commercial offerings, and their possible combination with non-commercial ones? </li></ul><ul><li>Testing : What framework could be used to allow the automated testing and validation of SaaS-enabled offerings by both suppliers and buyers? </li></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  19. 19. 3.3. Adopter Issues <ul><li>Benchmarking : How can a company benchmark its applications and identify the need for adopting externally-delivered SaaS-enabled components, applications, or processes? </li></ul><ul><li>Evaluation : What economic and decision models should be used to evaluate the offerings of various SaaS vendors and determine which one meets business and operational requirements? </li></ul><ul><li>Contracting : How can service, application, and process adoption be facilitated through automated negotiation, contracting, licensing, authorization, and configuration? </li></ul><ul><li>Payment : How should the delivery of SaaS-enabled solutions be charged to buyers, and what new business and financing models could supplier devise to ensure a strong and stable market for SaaS vendors? </li></ul><ul><li>Integration : How should adopting companies prepare their internal applications for the risky phase of integrating and deploying new SaaS-enabled solutions supplied by SaaS vendors? </li></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  20. 20. 3.4. Delivery Issues <ul><li>Delivery : What new standards should be developed on top of existing grid computing infrastructure to ensure the flexible and rapid development of networks for the commercialization of SaaS-enabled solutions? </li></ul><ul><li>Security : How should SaaS-related security standards be adjusted to take into account the business transaction features of commercialized SaaS-enabled solutions? </li></ul><ul><li>Balancing : How will commercially-exposed SaaS-enabled solutions perform along with their traditional workload, and to what extent can there be a market for excess capacity to balance market workloads? </li></ul><ul><li>Monitoring : How should enterprise application management methods and tools be adjusted to take into account the monitoring of both operations and commercial issues in the transacting and delivery of SaaS-enabled solutions? </li></ul><ul><li>Compliance : How should real-time monitoring be adjusted to allow more efficient and effective regulatory compliance, as well as reduce the risks associated with the commercialization of SaaS-enabled solutions? </li></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  21. 21. 3.5. Extension of the Framework <ul><li>Dynamics Among BSN Stakeholders/Viewpoints </li></ul><ul><ul><li>Various BSN perspectives compete with one another </li></ul></ul><ul><ul><li>Similar dynamics as in traditional stakeholders of third-party IT networks such as EDI, e-marketplaces, B2B integration hubs </li></ul></ul><ul><li>Strategic Priorities </li></ul><ul><ul><li>BSN security </li></ul></ul><ul><ul><li>IoT systems interoperability </li></ul></ul><ul><ul><li>Automatic discovery </li></ul></ul><ul><ul><li>Legal frameworks </li></ul></ul><ul><ul><li>Performance metrics </li></ul></ul><ul><li>Research on BSN and SaaS Ecosystem </li></ul><ul><ul><li>Extend beyond initial market players (ISVs, adopters, BSN) </li></ul></ul><ul><ul><li>Focus on Support, Community, and Partner entities </li></ul></ul><ul><ul><li>Identify critical success factors for SaaS commercialization </li></ul></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  22. 22. Research Program on BSN & SaaS Ecosystem 2009 2010 2013 2011 2012 2008-12-13 Copyright © 2008 Gagnon & Cakici BSN & SaaS Assessment Framework Cases of BSN Operators Cases of SaaS Vendors Survey of Industry Ecosystem Players Cases of SaaS Adoption Survey of SaaS Adopters & Vendors Action Research on BSN Operators Action Research on Support Entities Survey of SaaS Risk Models Action Research on SaaS NPD Survey of Industry Consoli-dation Frameworkof SaaS Product Lifecycle 01 02 03 10 08 09 05 04 06 07 11 12
  23. 23. 4. Conclusion: Future of Mobile SaaS <ul><li>Mobile SaaS </li></ul><ul><ul><li>Integrating RFID, mobile telecommunications services, and wireless internet infrastructure </li></ul></ul><ul><ul><li>Developing BSN services provisioned and controlled through mobile infrastructure </li></ul></ul><ul><ul><li>Ensuring the mSaaS market emerges as a fully enabled environment, yet properly integrated to traditional fixed platforms </li></ul></ul><ul><li>Intelligent Functionality </li></ul><ul><ul><li>More flexibility in composing SaaS-enabled processes in real-time, as RFID functionalities trigger mobile services and processes </li></ul></ul><ul><ul><li>SaaS-bearing devices and entities could activate their collective intelligence to autonomously compose new processes </li></ul></ul><ul><ul><li>Compiling performance data and identifying operational patterns allow new services to independently optimize processes through learning-enabled IT infrastructure that provisions and monitors service networks </li></ul></ul>2008-12-13 Copyright © 2008 Gagnon & Cakici
  24. 24. Thank You! Questions or Comments? Stéphane Gagnon, Ph.D. Associate Professor Université du Québec Gatineau, QC, Canada [email_address] Kemal Cakici, Ph.D. Risk Management Officer International Finance Corporation Washington, DC, USA [email_address] 2008-12-13 Copyright © 2008 Gagnon & Cakici