IBM Software Group
Introduction to SOA
SOA
Jansen Nurjaya
WebSphere Technical Profession Leader
SOA on your terms and our expertise
IBM Software Group
The market has no doubts about SOA importance & growth
“A strategic inflection point is a time in the life of a business SOA Driven Software Revenue
when its fundamentals are about to change. That change can
mean an opportunity to rise to new heights… …A strategic
$7.0
inflection point can be deadly when unattended”
- Andy Grove – Only the paranoids survive. $6.0
$5.0
“One such Strategic Inflection Points that has gotten IT's
Billions $
$4.0
attention lately is Service Oriented Architecture (SOA).
Gartner predicts that by 2009, more than 60% of $3.0
enterprises will use SOA as a "guiding principle" when
$2.0
creating mission-critical applications and processes.”
- SOA: IT's Strategic Inflection Point? 09/13/2006 By Rajeshwer Subramanian, $1.0
Manager, Integration Competency Center, Ohio Bureau of Workers Compensation
$0
2005 2006 2007 2008
“With research firm Aberdeen Group predicting that Global
2000 companies implementing service oriented architectures Applications, collaborative and groupware
Data, content and information access
will collectively accrue savings of $53 billion by 2010, it is Development and deployment
hardly surprising that the potential for SOA has been Security
gaining a lot of interest” Systems management and other infrastructure
Source: IDC – Dec. 2005
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IBM Software Group
Lets cover some basics…
What is service oriented An IT architectural style that supports
architecture (SOA)? integrating your business as linked services
What is a Service? A repeatable business task – e.g., check
customer credit; open new account
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Innovation that matters to CEOs and CIOs
Top Innovation priorities for CEOs:
Extend the ability to collaborate inside &
outside
Innovate business models & processes 87% of CEOs believe
fundamental change is
Leverage information for business insight required in next two-years
Yet: Only 1 in 10 CEOs believe their to drive innovation
Source: 2006 IBM Global CEO Survey
organization has the ability to be very
responsive to changing market conditions
Ability to innovate
Ability to allocate the best talent
CIOs and CTOs
Ability to manage a global organization
Recognize Innovation
as the Most Important
Ability to allocate capital
Capability for Growth
Ability to manage increasing regulation costs
0 30 60
Source: March 2005 McKinsey Quarterly survey of 9,345 global executives
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The Vertical Silo Problem
Division “A” Division “B” Division “C” Division “D” Division “E”
Why do you think organizations cannot be
responsive to changing market
conditions?
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Flexible business requires flexible IT
Full Business view
Process to optimize
Case Study: Payments Processing
Creating IT flexibility
IBM SOA Foundation
Software
Skills &
Support
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SOA Delivers Business Value … Today
Flexibility, growth, reuse, decreased cost
Revenue,
Flexibility Costs
97% of customers justified their SOA project
on cost
100% saw increased business flexibility
71% reduced risk
51% saw revenue growth
Source: The Business Value of SOA, 2006
Institute for Business Value Study
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“If I Knew Then What I Know Now…”
Early 1990s:
Bank Insurance Shopping Auto Sales E-mail
Now:
Bank Insurance Shopping Auto Sales E-mail
What if your company had a Service Oriented Architecture as
these changes occurred?
Would this have been a competitive advantage?
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Reinventing ways of doing business - Today
Industry Traditional business model On Demand Business
Insurance Auto insurance rates were based on Auto insurance rates based on
fixed premiums driving and usage patterns
Airlines Passengers waited in line at airport Passengers can print their own
to get boarding pass boarding passes at home
Automotive Lack of collaboration between OEMs, Collaboration across entire
suppliers and dealers slowed supply chain accelerates root
processing of warranty claims cause analysis, resolving
warranty claims 5 days faster.
Financial Launch of new credit product taking Horizontal integration of
Services up to 7 months processes taking product
launch down to 8 weeks
Government It took customs agencies hours to Customs agencies know exact
determine the location, origin and location, origin and contents of
contents of containers arriving at containers in a matter of
their ports seconds
Retail Stores offered same promotions Instant, in-store promotions are
across all stores, based on a based on real-time view of
predetermined schedule customer buying behaviors and
inventory levels
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Sudden Impact
"We live in a moment of history where change is so speeded up that we begin to
see the present only when it is already disappearing." -- R. D. Laing
Public Sector: Hurricane Katrina
Some people affected by hurricane are evacuated to Texas
Needed Government support services (food, shelter, etc.)
Texas system required an address!!!
Texas Government had implemented SOA, were able to change system
quickly and provide support
Distribution / Travel and Transportation:
Airline passengers cannot carry liquids in carry-on bags
Increase in checked luggage
Increase in costs for baggage handling, can system handle increase in
quantity?
Lost revenue - More space required for checked luggage, cannot use
space to ship cargo
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The basics: What is SOA?
… service orientation … a service
A way of integrating A repeatable
your business as business task – e.g.,
linked services check customer credit;
and the outcomes that open new account
they bring
… service oriented architecture (SOA)
An IT architectural style that supports
integrating your business as linked services
"Anything that changes can do that much better if the
system is architected in SOA.”
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IBM Software Group
Older Architectures Do Not Support Flexibility
Required by Current Business Environments
Pricing
Web Sales Orders
Orders & Supply
Chain
Monolithic Business Applications – built historically
Must periodically synchronize on inventory information
Pricing information into each inserted differently based on application structure
No common customer database, inventory or flexibility in business processes
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IBM Software Group
Component-based Architecture is Not Enough
Customers
Pricing
Web Orders
Inventory
Shipments Sales
Orders
Services defined as units of business logic, but…
Flow of control – bound into service logic
Transformation of data formats bound into service logic
Tight coupling between services makes them fragile
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IBM Software Group
Service Oriented Architecture
Moves IT Logic Out of Services
Customers
Pricing
Web Orders
Inventory
Shipments Sales
Orders
Services defined as units of business logic separated from…
Flow of control and routing
Data transformation and protocol transformation
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IBM Software Group
Why SOA Now?
“SOA is the next-wave architecture to drive the evolution of IT.”
Alex Cullen
Principal Analyst for IT Management, Forrester Research
XForms
Web Services &
Web Service
Interoperability
Web 2.0
innovations
Service Component Service Data
Architecture (SCA) Objects (SDO)
Open standards are fundamental for SOA
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Business Centric SOA Starts with Your Most Critical
And SOA Lifecycle Is The Key to Successful Projects
Business Pain and Enables You to Build for Flexibility
Enable human and process
interaction with consistent
levels of service
Deliver trusted information
in business context to
Discover
enable innovation
Construct & Test
Compose
Achieve greater efficiency
Integrate people
and effectiveness with
Integrate processes
business model
Gather requirements innovation
Integrate information
Model & Simulate
Design
Manage IT resources
Manage services
Sharing and reuseprocesses
“Pick business of services with pain points that the business clearly recognizes — processes
for which the business Monitor business metrics
Establish decision rights most clearly needs end-to-end visibility, control, insight, and flexibility”
Policies, measurement and
control for SOA oversight
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Align Business and IT with SOA Governance
What is governance?
Establishing chains of
responsibility, authority and
communication to empower
Business Decision rights.
Establishing measurement,
policy and control mechanisms
to enable people to carry out
their roles and responsibilities
What is SOA governance?
Extension of IT governance
focused on the lifecycle of
services to ensure the
business value of SOA
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An Agile Business has Lower IT Costs
Companies that focus on Agile businesses, which are
cost spend 15% more than most easily created by a
the industry average. SOA, have reduced IT costs.
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There is a Smarter Way!
Aligning Service Oriented Approaches
Extend Adapt
Foundational End-to-End Transform Dynamically
A set of guiding principles to extend business value of deployment
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Defining the capabilities for your SOA environment
Template for designing at a service-level
Business Services
Supports enterprise business process and
goals through businesses functional service
Interaction Services Process Services Information Services
Enables collaboration Manages diverse data and
Development between people, processes &
Orchestrate and automate
content in a unified
Management
Services business processes Services
information manner
Integrated
environment Manage and
for design and secure
creation of Enterprise Service Bus services,
solution assets applications &
resources
Info Assets
Partner Services Business App Services Access Services
Apps &
Build on a robust, Facilitate interactions with
Connect with trading
scaleable, and secure existing information and
partners
services environment application assets
Infrastructure Services
Optimizes throughput, availability and utilization
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SOA Solution Layering
Leveraging the SOA Reference Architecture
Channel B2B Customer
Service Consumer
Consumers
QoS Layer (Security, Management &
Integration (Enterprise Service Bus)
Monitoring Infrastructure Services)
Data Architecture (meta-data) &
Business Process
Business Intelligence
Composition; choreography;
business state machines
Governance
Services
atomic and composite
Service Provider
Service Components
Packaged Custom OO
Application
Operational Systems Application Application
Atomic Service Composite Service Registry
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SOA Leadership
#1 SOA Market Share #1 in SOA Deployments
53% Share, According to WinterGreen Research 5,700+ Customers
2006 Market Share
Q. Which
Other 20% of the following services/technology vendors do you perceive as being major innovators in
providing SOA-related services?
Oracle 3%
SOA Service Innovator Rankings
IBM 65%
SAP 3%
Microsoft 48%
Sybase 2% 53%
webMethods 3% HP 41%
BEA Aqua Logic 2%
Tibco 3% Oracle 39%
Sun / SeeBeyond Egate 3% Source: WinterGreen Research, April 2007
SOA Engines and Components only
Microsoft 8% Sun 39%
Dell 36%
Leader in SOA Category
Accenture #1 SOA Business Partner Community
31%
Clean Sweep in Gartner
SAP MQ Leadership 25% 4,500 SOA Business Partners
0% 10% 20% 30% 40% 50% 60% 70%
Application Infrastructure
Application Infrastructure for New
Service-Oriented Business!"Application
# $ % & & '())*
Projects
Application Infrastructure for Web/SOA Infrastructure and
Composite-Application Projects Integration Software
Application Infrastructure for Back-End #1 Company of the Year
Application Integration Projects #1 Support and Loyalty
Business Process Analysis Tools
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Next Steps
Establish a Strategic Vision at the appropriate level
Identify a pilot project
People
Process
Information
Reuse
Connectivity
Assess and address capability gaps:
Skills
Processes
Architecture
Infrastructure
Application
Execute the project
Approach adoption incrementally
Introduce infrastructure, processes as needed – SOA is not about infrastructure and
processes, it’s about enabling organizations to be agile in solving business problems
IBM is here to help
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IBM Software Group
Thank you!
More information: www.ibm.com/soa
SOA on your terms and our expertise
