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Real World SOA | David Linthicum » SOA Spending Up, So Where is the Value?

February 28, 2008 | Comments: (0)

SOA Spending Up, So Where is the Value?

Saw this post by Galen Gruman.

"The number of companies investing in service-oriented architecture (SOA) has doubled over the past year in every part of the world, with a typical annual spend of nearly $1.4 million, according to a new research report from the analyst firm AMR Research that surveyed 405 companies in the U.S., Germany, and China."

You know, when you read something like this a letdown is coming.

"Now the bad news: 'Hundreds of millions of dollars will be invested pursuing these markets in 2008, much of it wasted,' said AMR analyst Ian Finley. The AMR survey found that most companies don't really know why they are investing in SOA, which Finley said makes long-term commitment iffy."

He goes on to site some of things you've heard from me before, namely that…

" Another danger seen from the SOA survey is that the main benefit that the vendors sell around SOA (code reuse) is not the real benefit that early SOA adopters have gotten. Often the code from project A is irrelevant to project B, he noted. That focus on reuse can cause organizations to dismiss SOA's benefits because they're looking at the wrong metric."

Of course, I've already been down this road, several times in fact. The core issue is that reuse, as a notion, is not core to the value of SOA…never has, never will. Not that you won't achieve reuse, and that there is benefit, but that the value of agility, or creating an architecture that's changeable around the needs of the business is far more valuable than any services you can share.

To the point of this post, people chase SOA understanding that reuse is the core value. Thus, when it's not they consider SOA a failure. To the point of the author "they are looking at the wrong metric." We need to stop selling reuse as a core benefit of SOA.

 

Posted by Dave Linthicum on February 28, 2008 11:06 AM


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David, I've heard you shoot down the reuse value statement many times. Aren't you forgetting the value that companies get from reusing assets that exist in their IT Infrastructure? Isn't the whole point about agility delivering value without building completely new systems from scratch and leveraging what works? Consequently, it's hard to separate reuse from agility.

Posted by: Rob Coventry at February 28, 2008 08:13 PM

Maybe the issue isn't reuse, but reusability. (If hair-splitting were an Olympic event, that statement might qualify for a gold medal.)

Isn't it reusability that gives SOA its agility, the idea that the various chunks can be easily plugged together and rearranged to meet evolving requirements?

(Continued on my blog)

Posted by: Bob Rhubart at February 29, 2008 02:13 PM

Just to clarify a bit, when I wrote about wasted money, I was talking about the ill-concieved marketing and sales efforts of some SOA software vendors and SIs. I don't think companies are wavering in their committment to SOA, but I do agree that vendors rely too much on IT cost savings from code reuse in their marketing of SOA.

IT cost savings are a red herring. Companies can save 100% of IT costs by not using computers at all. The real benefit of a new technology like SOA is how much more money it saves, or makes for the rest of the business.

Posted by: Ian Finley at March 1, 2008 02:32 PM

Agreeing with the last sentence in Ian's post, I believe the ultimate value of investing in SOA will be best measured in business terms. By creating an IT organzition that is more responsive to the business, the business will be able to deliver something before their competitor, consolidate key business processes from an acquisition or merger faster, respond to a new compliance requirement faster, deliver better customer service, etc. This responsiveness may be achieved through service re-use, faster adjustment to service changes, faster integration of new capability, or other aspects. I think the big demand from customers should be, and is becoming, show me the benefits of SOA in business terms. This forces IT and business to have to align, which is a good thing. We should shift the focus from what is the right technical benefit to market and focus on business benefits. This is how, in my opinion, we can accelerate support for SOA inside an enterprise.

Posted by: kelly emo at March 3, 2008 04:08 PM

I do agree with Dave's notion regarding the Reuse issue, but blame the reason for it being second place as a drive to SOA in the lack of tools in the SOA world enabling easy reuse of the current IT assets. No automatic tool for classifying IT components by Business Context - allowing the reuse by business needs.
Most of the vendors do ignore the legacy issue, trying to sell you new products for "new world".

Posted by: Ronen Yochpaz at March 5, 2008 12:24 AM

One way of getting re-use may be through new technology at an SOA endpoint that supports greater business-IT agility.

Our work illustrates one approach to this. We work on a kind of Wiki and SOA endpoint for applications written as business rules in open, executable English.

From the rules, the system can generate and run complex SQL, and can explain the results in English, at the business level.

The system is online at wwww.reengineeringllc.com, and shared use is free.

Posted by: Adrian Walker at March 9, 2008 05:18 PM

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