The SOA Eco-system Keynote at IEEE ICWS/SCC, 2005

1. The SOA Eco-systemKeynote at IEEE ICWS/SCC, 2005 George GalambosIBM Fellow

2. Acknowledgements • Ali Arsanjani, Luba Cherbakov, Kerrie Holley, Ray Harishankar • Emily Plachy, Maurice Perks • Michael Zisman | 17 June 2005 |

3. The story line • Web Services  Service Oriented Architecture Services Ecosystem Maturity and capabilities • Componentized Enterprise • Service Oriented Enterprise • The state of the business/IT gap • New design is old design or is it? • What is left? | 17 June 2005 |

4. SOA provides a value proposition for a set of distinct business challenges Regulatory compliance Increase revenue create new routes to market, create new value from existing systems Provide a flexible business model react to market changes more quickly Each represents a SOA value proposition Integrate across the enterprise integrate historically separate systems, facilitate mergers and acquisitions of enterprises Reduce cycle times and cost for external business partners move from manual to automated transactions, facilitate flexible dealings with business partners Rationalization and cost reduction Focus investment Propagate best practices within the enterprise build once and leverage, improve time to market Reduce risk and exposure improve visibility into business operations | 17 June 2005 |

5. How may an enterprise arrive at SOA? • Top down • business process representation and transformation • desirable • Bottom up • Integration • Abstraction of common capabilities - multi-channel, reuse • Most likely | 17 June 2005 |

6. Internet Standards(XML, SOAP, UDDI,Web Services) Plug-CompatibleSoftwareComponents Vertical IndustryStandards Business ProcessModeling and Integration Horizontal Interoperation Business-LevelFunctionality Industry SpecificInterfaces ProcessIntegration Towards Flexible Enterprise Solution Assembly Companies are beginning to offer and draw benefits from a new standards based, service-oriented solution assembly approach Partners Software Service OutsourcedFunction New Function Service Providers Legacy EnterpriseApplication PartnerProcesses NewFunction Web Serviceinterfaces Enterprise Flexible Solution Assembly | 17 June 2005 |

7. SOA today – New insight on business/IT gap • What is in the gap? • Cognitive, language, motivational, etc. differences. • New: direct representation of business processes supported by • Componentized representation of the business • Business Process Modeling • Business Process management technologies. • Business Process Monitoring to enable direct business intervention | 17 June 2005 |

8. Best Practice: Align business architecture and IT architecture • Break down your business into components • Decide what is strategically important, and what is just operations in the value chain domains • Analyze the different KPIs attached to these components • Prioritize and scope your transformation projects Business Architecture • Define a Service Model • Identify your services based on your business components • Specify the services and components accordingly • Make SOA realization decisions based on architecturaldecisions Service Modeling • Implement a Service Model • Develop a service-oriented architecture to support the Componentized Business • Implement service based scoping policy for projects • Implement appropriate governance mechanism SOA Realization Business-Aligned IT Architecture | 17 June 2005 |

9. The Services oriented enterprise and the case for services ecosystem • Services oriented enterprise: • Recognized competencies • Componentized • Capabilities as services • Notional new organization (consumers/providers) • Flexible, dynamic business processes SOE | 17 June 2005 |

10. BPO The Emerging Business Services Ecosystem New business models are emerging for software and business services offerings Software as a Service Integrators Bus. Service Providers • Provide software functionality on a subscription basis • Provide value-add services to enable integration of process components • Business service providers are domain experts that can run a component process for you (e.g. HR, payments, logistics…) Web Conferencing Hosting Services UMI SOA and Web Services Technologies | 17 June 2005 |

11. Design | 17 June 2005 |

12. Organizations participating in a service eco-system need additional capabilities, including architecture, SOA method and patterns Service Provider Service Broker Service Consumer Service Oriented Modeling and Architecture Method Architectural View Helps build <<Pattern>>Service strategy What services do I need to expose, to consume and to compose? Patterns that guarantee Flexibility and dynamic reconfiguration | 17 June 2005 |

13. An architectural view for SOA – The SOA Solution Stack | 17 June 2005 |

14. SOA Development/Design in the services ecosystem • Scope: • Internal only (abstraction, integration, business process transformation) • External: with partners or the ecosystem • New: discovery, trust, dynamic re-composition • Approach: • Opportunistic (integration, abstraction) • Top down modeled: business process transformation • Cooperating services from 2 categories of service providers • Services to expedite participation in a supply chain • Focus on product/material supply, SOA based links are providing speed and accuracy • Dedicated function suppliers (no downstream product) (salesforce.com, VISA, Hewitt) • Focus is on the service itself (service is the product) | 17 June 2005 |

15. SOA Development/Design in the services ecosystem • Enabling fractal composition • Applications composed from multiple service providers, themselves plausibly consumers of services. • Business processes are made up of services, and themselves are exposed as services | 17 June 2005 |

16. SOA Development/Design in the services ecosystem • Imperatives • Common protocols, standards, etc. (e.g., enabled through web services) enable an eco-system • Necessary WS standards (coordination, business activity, trust) • Vertical industry standards – for process interoperability, shared semantics • Providers in an eco-system must provide and guarantee functionality and quality of service declarations | 17 June 2005 |

17. Design problems | 17 June 2005 |

18. Unique design problems in the ecosystem – many to be solved • Response time reliability: the provider and consumer’s views and roles, • Capacity planning for the provider’s (exposed) systems • Service availability: consumer and provider’s views (see next chart) • Metadata integration (for corporate data outside of corporate technical control – to get to analytics) • Data availability and integrity • Security for cascading services • Trust • Cross-enterprise compensation (WS – coordination) • (Business aligned) monitoring and intervention • Provider’s and consumer’s Key Performance Indicators | 17 June 2005 |

19. Context-aware Services Enable Dynamic Reconfiguration in the Service Eco-system CAS1 SC should implement Service Strategy in the consumer layer: “If Google is down go to yahoo search services” Ok? SC no yes WS2 WS1 SP’s should have failover and redundancy to ensure Enterprise components provide QoS SP2 SP1 | 17 June 2005 |

20. Other open topics • SOE and ecosystem in the software packages dominated world • Need for open standards based contracts to enable dynamics in the ecosystem | 17 June 2005 |

21. Conclusion • SOA is being adopted • The adoption often starts within the enterprise and evolves to the boundaries, through business partner interactions across value chains • There are some imperatives, both in business and technology, in order to step out into the service eco-system and interacting with peers: • SOA Methods, SOA Reference Model, Governance, Service-Oriented Enterprise, etc. • There are still many “challenges” of SOA and in the SOA eco-system to be solved • …BUT get ready for participating in the eco-system! | 17 June 2005 |