Teleconference Eleven Entry Points To SOA: How To Prepare For Upcoming Enterprise Application Trends And A World Of SOA

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Enterprises are still undecided on vendors of choice رام هه ا سس مت حتف | ا لل ا سس موه امیس ملس لكا fe Cee kee ee ee 

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Teleconference Eleven Entry Points To SOA: How To Prepare For Upcoming Enterprise Application Trends And A World Of SOA R “Ray” Wang Senior Analyst Forrester Research April 20, 2006. Call in at 12:55 p.m. Eastern Time Theme SOA and Web services are the tools that enable IT to accommodate business requests for flexibility while optimizing enterprise application investments. Entire contents © 2006 2 Forrester Research, Inc. All rights reserved. Agenda • Enterprise application trends • The business and IT case for SOA • Eleven entry points to SOA • Early adopter deployment trends • Recommendations • Questions and answers Entire contents © 2006 3 Forrester Research, Inc. All rights reserved. Enterprise apps vendor and market trends • Vendor consolidation continues » Growing set of $1B vendors promotes stability. • Fewer large new license deals » Most sales are to existing customers. • Focus on midmarket and industries • SOA gains importance in technology buying decisions. • Transition to recurring and variable revenue models. » Maintenance is driving industry growth. Entire contents © 2006 4 Forrester Research, Inc. All rights reserved. Trends in ERP deployment • Use a single ERP vendor versus multiple vendors. • Run fewer instances or single instance. • Customize less and reduce over time. • Delay upgrades as long as possible. • Add ERP modules to replace one-off systems. • Use hosting, outsourced support, and SaaS. • Integrate using Web services. Entire contents © 2006 5 Forrester Research, Inc. All rights reserved. Applications drive 2006 IT spending priorities for enterprises . . . “Which of the following initiatives are likely to be one of your IT organization’s major IT themes for 2006?” Critical rpiority 40% 21% Upgrade disaster recovery capabilities 35% 19% Consolidate IT infrastructure Support changes in corporate governance (e.g., Sarbanes-Oxley) 34% 16% 34% 18% Replace or upgrade existing application systems 31% 13% Internet/eCommerce initiatives Deploy portfolio management for IT/business alignment Priority 23% Significantly upgrade security environment Redesign/redeploy IT’s architecture (e.g., service-oriented architecture) Rank10 2006 2005* 31% 9% 10% 6% 25% 19% 1 4 2 2 3 5 4 3 5 N/A 6 N/A 7 N/A 8 N/A Base: 868 decision-makers at North American enterprises *Source: Forrester’s Business Technographics® November 2004 North American And European Benchmark Study Source: February 3, 2006, Data Overview “North America's 2006 Enterprise IT Spending Outlook” Entire contents © 2006 6 Forrester Research, Inc. All rights reserved. … And midsize businesses “Which of the following initiatives are likely to be one of your IT organization’s major IT themes for 2006?” 4 = It's a critical priority Improve the efficiency of IT by delivering more with less 19% Implementing major software app 19% Internet/eCommerce initiatives 17% Replacing/upgrading existing apps 16% 3 2 1 = Not on our agenda 44% 34% 34% 34% 29% 8% 28% 20% 32% 17% 41% 10% Significantly upgrading your security environment 14% 35% 41% 11% Significantly upgrading disaster recovery capabilities 14% 35% 39% 11% Support changes in corporate governance 12% Implement or expand IT outsourcing 6% 16% 20% 32% 40% 33% Base: 133 executives at North American midsize businesses Source: Business Technographics ® December 2005 North American And European SMB IT Budgets And Spending Survey Entire contents © 2006 7 Forrester Research, Inc. All rights reserved. 41% Major initiatives in 2006 can be addressed through projects that incorporate a path to SOA “Which of the following are likely to be one of your IT organization’s major initiatives for 2006?” (4 [it’s a rcitical p riority]to 1 [not on our agenda]) 4 3 2 1 36% Reduce software costs in any way Significantly upgrade the security environment 28% Improve integration between applications in the company 28% Move software implementations to standards-based technology Reduce the number of major applications vendors that we work with Reduce the number of software infrastructure vendors that we work with Implement application portfolio management 14% 19% 10% 20% 32% 4% Base: 603 software and services decision-makers at North American enterprises (percentages may not total 100 because of rounding) Source: March 8, 2006, Data Overview “Software And Services In Large Enterprises” Entire contents © 2006 8 Forrester Research, Inc. All rights reserved. 25% 11% 28% 26% 19% 8% 26% 11% 36% 18% 16% Adopt SaaS 35% 34% 11% 9% 37% 24% 44% 32% 38% 35% 38% 49% Agenda • Enterprise application trends • The business and IT case for SOA • Eleven entry points to SOA • Early adopter deployment trends • Recommendations • Questions and answers Entire contents © 2006 9 Forrester Research, Inc. All rights reserved. The future of enterprise apps: Nextgeneration architecture strategies — the road to SOA Serviceoriented architectures On-line midrange Client/ server Web client Batch 1970s Entire contents © 2006 10 1980s 1990s Forrester Research, Inc. All rights reserved. 2000s 2010s Forrester’s definition of SOA Crafting an SOA platform to fulfill a vision of continuous business improvement requires a sufficiently robust definition of SOA. Forrester defines SOA as: • A style of design, deployment, and management of both applications and software infrastructure in which: » Applications are organized into business units of work (business services) that are (typically) network accessible. » Service interface definitions are first-class development artifacts receiving the same degree of design attention (and more) as databases and applications. Source: December 22, 2005, Topic Overview “Topic Overview: Service-Oriented Architecture” Entire contents © 2006 11 Forrester Research, Inc. All rights reserved. Forrester’s definition of SOA (cont.) » Quality of service (QoS) characteristics (security, transactions, performance, style of service interaction, etc.) are explicitly identified and specified for each service. » Software infrastructure takes active responsibility for managing service access, execution, and QoS. » Services and their metadata are cataloged in a repository and discoverable by development tools and management tools. » Protocols and structures within the architecture are predominantly but not exclusively based on industry standards (such as the emerging stack of standards around SOAP). Source: December 22, 2005, Topic Overview “Topic Overview: Service-Oriented Architecture” Entire contents © 2006 12 Forrester Research, Inc. All rights reserved. Business IT context for SOA • SOA speeds business change. • SOA facilitates business connections. • SOA enhances business control. Entire contents © 2006 13 Forrester Research, Inc. All rights reserved. Smaller components add more flexibility CN GL AP AR Human Human resources Resources Customer relationship management Process integration Component arbitration Service-based integration Component arbitration Process integration Product life-cycle management Entire contents © 2006 14 Supply chain management Forrester Research, Inc. All rights reserved. Business Business Analytics analytics Why move your packaged apps to SOA? Business drivers Technology drivers • Adapt system to processes, not vice versa. • Reduce custom coding through configuration. • Improve usability. • Adopt open standards to reduce integration costs. • Deliver relevant analytics. • Connect to external data and services. • Leverage best practices and industry knowledge. Entire contents © 2006 15 Forrester Research, Inc. All rights reserved. • Enable end users’ selfsufficiency. • Provide more flexibility to use best-of-breed and composite apps. Customer challenges with the SOA direction • Expensive and disruptive upgrades • Lock-in to middleware platforms; fewer apps vendor choices • Unproven benefits • Vendors are over-promising and under-delivering » Marketing hype moving farther from reality. Entire contents © 2006 16 Forrester Research, Inc. All rights reserved. The Final Four: major middleware ecosystems IBM WebSphere “Blue Stack” Vendor Microsoft “.NET” SAP Oracle The Sage Group MBS Lawson-Intentia SSA Global Infor Unit 4 Agresso IBS Epicor IFS (open source: JBoss) Exact Source: Forrester Research Entire contents © 2006 17 Forrester Research, Inc. All rights reserved. Oracle “Fusion Middleware” SAP “NetWeaver” Agenda • Enterprise application trends • The business and IT case for SOA • Eleven entry points to SOA • Early adopter deployment trends • Recommendations • Questions and answers Entire contents © 2006 18 Forrester Research, Inc. All rights reserved. Eleven entry points on the road to SOA Business Drivers Sample Technology Solution • Single sign-on Security, LDAP, user management, portals • Internal self-service Portals, security, Web services, EAI • External self-service Portals, security, Web services, PRM, SRM • Operational dashboards BI, portals, reporting tools, analytic frameworks • Business insight BI, analytics, cubes, reporting tools, warehouses • Forecasting and planning What ifs, forecasting, scenario planners • Regulatory compliance • Business process improvement Auditing, EAI, security, instance consolidation Web services repositories, BPEL tools, BPM • Shared services • Knowledge mgmt./collaboration • Master data mgmt. Entire contents © 2006 19 Instance consolidation, BPM tools, service repos Document management, collaboration tools Data hubs, DQM, EAI, ETL Forrester Research, Inc. All rights reserved. Projects need to be evaluated on business need and change complexity Essential but hard Requires commitment data • Master management • Business process improvement High Commitment to change • Knowledge management • Regulatory Shared services compliance• • Forecasting and • External self- • Internal self- planning service service • Operation al Low sign-on • Single (SSO) Low-hanging fruit dashboar ds Impacting Operational Business need Entire contents © 2006 20 • Busine ss Forrester Research, Inc. All rights reserved. Strategic insight Leverage common building blocks Low-hanging fruit Technology Solution Identity LDAP Security Auditing and tracking Portals EAI EII ETL Information warehouses Document management Collaboration tools BPM tools Web service repository BPEL tools BPEL library Business intelligence Activity monitoring Analytics Reporting Scenario generators Forecasting Customer data integration Product information Management Data hubs Data quality management Development tools Single sign-on X X X X X O Internal Selfservice X X X X X O O O External Selfservice X X X X X X X O O O O O O O O O O O O Impacting Operational dashboards Business insight O X X X X O X X X X O O O O X X X X O O O Essential but hard Forecasting and planning O O X X X X O O O O O Forrester Research, Inc. All rights reserved. X O O X X X X X X X X O O X X X X X = Majority Entire contents © 2006 21 Regulatory compliance X X X X Business process improvement O O = Optional O Requires commitment Shared services X X X X O O O O O O O X O O O O O O O Knowledge management/ collaboration X X X X O O O O X X Master data management X X X X O X O O O O X X X O O Agenda • Enterprise application trends • The business and IT case for SOA • Eleven entry points to SOA • Early adopter deployment trends • Recommendations • Questions and answers Entire contents © 2006 22 Forrester Research, Inc. All rights reserved. Organizations show preference for lowhanging fruit “Of the 11 ‘SOA-related’ projects, how many are complete?” 35 Single sign-on 23 Internal self-service 16 External self-service Operational dashboards 6 21 Business insight 9 Forecasting and planning Impacting 17 Regulatory compliance Business process improvement 5 Master data management Essential but hard 13 Shared services Knowledge management/collaboration Low-hanging fruit 6 5 Requires commitment Source: Ongoing surveys of 53 enterprises from September 2005 to April 2006 from inquiries, client one-on-ones, vendor events, and customer references Entire contents © 2006 23 Forrester Research, Inc. All rights reserved. Organizations ease their way into SOArelated projects “Please rank your top three ‘SOA-related’ projects for 2006 to 2008.” Low-hanging fruit 10 Single sign-on 25 Internal self-service 29 External self-service 7 Operational dashboards 11 Business insight 8 Forecasting and planning Impacting 33 Regulatory compliance 8 Business process improvement 9 Shared services Knowledge management/collaboration Master data management Essential but hard 5 13 Requires commitment Source: Ongoing surveys of 53 enterprises from September 2005 to April 2006 from inquiries, client one-on-ones, vendor events, and customer references Entire contents © 2006 24 Forrester Research, Inc. All rights reserved. Enterprises are still undecided on vendors of choice “Which three vendors will you most likely turn to for an SOA application/middleware platform?” 28 IBM 24 SAP Oracle 21 12 Microsoft 11 SSA Global Lawson-Intentia 9 45 Don't Know Source: Ongoing surveys of 53 enterprises from September 2005 to April 2006 from inquiries, client one-on-ones, vendor events, and customer references Entire contents © 2006 25 Forrester Research, Inc. All rights reserved. New SOA survey: Participate now and receive first-hand survey results • How many employees are in your organization? » 6-99, 100-499, 500-999, 1000-4999, 5000-19,999, 20,000+ • Choose an industry that best describes your organization. » Manufacturing, Retail and Wholesale Trade, Utilities and Telecommunication, Business Services, Media/Entertainment/Leisure, Finance and Insurance, Public Sector • Of the 11 “SOA-related” projects identified, how many are complete? » Single sign-on, internal self-service, external self-service, operational dashboards, business insight, forecasting and planning, regulatory compliance, business process improvement, shared services, knowledge management/collaboration, master data management Entire contents © 2006 26 Forrester Research, Inc. All rights reserved. New SOA survey: Participate now and receive first-hand survey results (cont.) • Please rank your top three “SOA-related” projects for 2006 to 2008. » Single sign-on, internal self-service, external self-service, operational dashboards, business insight, forecasting and planning, regulatory compliance, business process improvement, shared services, knowledge management/collaboration, master data management • Which three vendors will you most likely turn to for an SOA application/middleware platform? » IBM, Lawson-Intentia, Microsoft, Oracle, SAP, SSA Global Entire contents © 2006 27 Forrester Research, Inc. All rights reserved. Agenda • Enterprise application trends • The business and IT case for SOA • Eleven entry points to SOA • Early adopter deployment trends • Recommendations • Questions and answers Entire contents © 2006 28 Forrester Research, Inc. All rights reserved. Recommendations • Stay current on releases to keep migration options open. • Consolidate disparate enterprise applications. • Identify technical solutions that meet business needs and are designed with SOA in mind. • Support one or two middleware platforms to achieve SOA design. • Define process and services upfront. • Ease into SOA and Web services through entry points on the road to SOA. • Implement with significant change management and training. Entire contents © 2006 29 Forrester Research, Inc. All rights reserved. Selected bibliography • Planned: April 18, 2006, Tech Choices “The Forrester Wave™: Order Hubs, Q2 2006” • March 31, 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of Architectures Begin!” • March 6, 2006, Trends “Trends 2006: Master Data Management” • February 7, 2006, Trends “Trends 2006: ERP Applications For SMBs” • February 6, 2006, Best Practices “A Tale of Two Models of Instance Consolidation” • • August 9, 2005, Quick Take “Rebuilding The JD Edwards Brand” • July 26, 2005, Quick Take “Demystifying The Confusion On Project Fusion” • July 26, 2005, Tech Choices “Enterprise Software Licensing Strategies” • July 14, 2005, Teleconference “The Future Of ERP Applications” • June 9, 2005, Market Overview “ERP Applications – The Technology And Industry Battle Heats Up” February 6, 2006, Trends “Trends 2006: The Order Management Cycle” • June 3, 2005, Quick Take “A Merger Of Equals: Lawson And Intentia” • January 6, 2006, Trends “Trends 2006: Enterprise Software Licensing” • • November 10, 2005, Tech Choices “The Forrester Wave™: Enterprise Applications Software Licensing, Q4 2005” May 16, 2005, Quick Take “Lawson Unveils Monumental Technology Direction” • November 3, 2005, Best Practices “Designing the Order Management Cycle” April 19, 2005, Tech Choices “To Be Or Not To Be Single-Instance ERP” • April 7, 2005, Market Overview “Midsize ERP Vendors Fend Off Newcomers” • April 6, 2005, Tech Choices “Oracle-PeopleSoft Part 2: Moving Toward Fusion” • March 15, 2005, Tech Choices “Oracle-PeopleSoft Part I: NearTerm Focus On Organization And Product Delivery” • February 24, 2005, Tech Choices “Beyond Order-To-Cash” • • October, 31, 2005, Trends “In the Oracle-Siebel Acquisition CDI and Component Assembly Bring Unexpected Benefits” • October 25, 2005, Quick Take “Memo to Microsoft: Why Not Buy Siebel?” • August 15, 2005, Quick Take “SSA Global Makes Bold Front-Office Play” Entire contents © 2006 30 Forrester Research, Inc. All rights reserved. Thank you R “Ray” Wang +1 650/581.3808 rwang@forrester.com www.forrester.com Entire contents © 2006 31 Forrester Research, Inc. All rights reserved. Forrester Vendor Selection Boot Camp • Who: CIOs, IT decision makers, vendor selection committees, business unit leaders, IT team leaders, procurement staff, internal consulting team members • What: SmartSelect Vendor Selection Methodology • When: August 23rd, 2006 • Where: Forrester HQ, Cambridge, MA • Why: Gain leverage in vendor selection and upgrades – Gain confidence in the vendor selection process – Develop skills in future state process mapping – Learn instance consolidation strategies – Identify vendor short listing techniques – Understand licensing and pricing strategies • Contact: For more information, please call +1 617/613-5905 or email events@forrester.com Entire contents © 2006 32 Forrester Research, Inc. All rights reserved. Forrester Boot Camp SOA: Management Strategies For Success • Forrester Vice President Randy Heffner and Principal Analyst Ken Vollmer teach attendees the organizational tools and methods they need to begin SOA implementation efforts within their enterprise. • Date: Thursday, May 25, 2006 • For more information, please call +1 617/613-5905 or email events@forrester.com. Entire contents © 2006 33 Forrester Research, Inc. All rights reserved. Questions and Answers • Now: Follow the Teleconference instructions • Privately: Set up a 30 minute inquiry with us or set up a 1hour advisory session • In Person: Set up a 1:1 at Forrester’s IT Forum EMEA 2006: GigaWorld in Lisbon, Portugal Entire contents © 2006 34 Forrester Research, Inc. All rights reserved.