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Chandra De Keyser EU Business Development Director

Open standards and open source A view on the market trends Open source Applications and Standards Workshop ETSI 16/12/04. Chandra De Keyser EU Business Development Director. Agenda. Software AG, the XML Company Mixed revenue model Services trends Open standards versus Open Source

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Chandra De Keyser EU Business Development Director

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  1. Open standards and open sourceA view on the market trends Open source Applications and Standards WorkshopETSI 16/12/04 Chandra De Keyser EU Business Development Director

  2. Agenda • Software AG, the XML Company • Mixed revenue model • Services trends • Open standards versus Open Source • Testing Open Source

  3. Agenda • Software AG, the XML Company • Mixed revenue model • Services trends • Open Standards versus Open Source • Testing Open Source

  4. 35 Years History of Technological Leadership 1979FirstMainframe 4GL 2000First Mobile Fleet Mgmt System 2002/2003“Company to Watch”Intelligent Enterprise Magazine Q4/2003New strategic focus 1997Firstcompany to port DCOM to Mainframe 2003 CIO 100 - Honoree CIO Magazine 2003 1969Company founded 1985 Established FirstPlatform Independent Language 1998Introduced FirstXML Server 2001/2002Named Global Market Leader for XML Servers, IDC 1971 FirstMainframe Database developed by Peter Schnell 1991Introduced FirstService Broker for Distributed Applications 2001First Database to Utilize IBM’s New 64 bit Virtual Storage Architecture for Mainframe 2003 Winner of 14 Readers Choice Awards in the XML / Web Services Journal 2002SCP AwardOutstanding service award received 6 years in a row 1983TAPS (Trade Analysis & Process System) World’s Largest Clearing House System 1999IPO – Frankfurt Stock Exchange MDAXGermany’s Top 50 Stock

  5. Awards Company • Intelligent Enterprise Magazine 2002/2003 “Company to Watch” • CIO Magazine 2003 - CIO 100: HONOREE Technology Tamino XML Server. • Computerworld – 2002 Innovative Technology • Winner of six XML / Web Services Journal, Readers’ Choice Awards 2003 EntireX • XML / Web Services Journal, Readers’ Choice Awards 2003 • Winner of eight Reader’s Choice Awards

  6. Approx. 39% Approx. 34% Approx. 27% Revenue & regional structure Region North Region South Region Central/Asia

  7. Agenda • Software AG, the XML Company • Mixed revenue model • Services trends • Open Standards versus Open Source • Testing Open Source

  8. More than 3500 Customers across all Industries worldwide Government Finance Media & Telecommunications Transport & Logistics Retail & Manufacturing

  9. Revenue 2003 (in M€) 2003 Product Revenue 295.5 70% License 104.3 25% Maintenance 191.2 45% Services 124.3 30% Other 2.4 TOTAL 422.2

  10. Example of Clients deals L&M: • Delta: all core apps ADABAS/NATURAL • FBI: core apps ADABAS/NATURAL • Lufthansa, Deutsche Bahn, Crédit Lyonnais, Dexia Services: • Spain Taxes: 15 yrs / 750 man years: • NAT/ADA + DB2 + Java + XML + zOS + UNIX • Spain Police: 12 yrs / 100+ man years • NAT/ADA + Informix + Java + XML + zOS • EU OPOCE: 12 yrs – 18 M€ • XML + Java + Jboss + Oracle + Solaris • BE PCF: 20 man years– 2 M€ • XML + Java + python + PostgreSQL + Linux

  11. Agenda • Software AG, the XML Company • Mixed revenue model • Services trends • Open Standards versus Open Source • Testing Open Source

  12. What Our Worldwide Customers Expect “Protect mainframe investments” “Integrate business processes” “Integration for real-time information” “Single Customer View” “Cost savings”

  13. Today’s Customer Requirements Business view: Service Oriented Architecture (SOA) Storage Transformation Indexing Routing Querying Messaging Business Terms Business Terms Users & Roles Service Registry Data Dictionary Customers Suppliers Partners Employees Users Enterprise Communication B2B Communication Enterprise Services Business Process Rules Process Documentation Process Design Process Flow Process Monitoring BPM Process Services Aggregation EII Information Services Filters Metadata Distribution Business Data Business Functions EAI Application Services XML / Web Service Interfaces Legacy Integration Adapters Mainframe Custom Other ERP CRM SCM

  14. Service trend • People do not want a fragmented view of (customers/partners/suppliers) from different heterogeneous systems (ERP, CRM, B2B, B2C, SCM, Call Center…) • People want adaptable solutions to their business needs • People want customization and services to integrate components, commercial and open source (the best mix) • People can’t accept (anymore) to give it all to a sole IT vendor: budgets are tight, cost cutting, strategic independence, negotiating leverage, plus… it does not work with just 1 supplier !

  15. Agenda • Software AG, the XML Company • Mixed revenue model • Services trends • Open standards versus Open Source • Testing Open Source

  16. Open Standards versus Open Source • Distinguishing Open Standards and Open Source • People demand Open standards in order to: • guarantee information perenity • Interoperability • avoid vendor lock in • maintain low costs • Open Standards: Formal bodies, international, industry consensus • W3C, CEN, ETSI, ISO, IETF, IEEE, … • Outcome : royalty – free consensus specifications, prototype demonstration

  17. Open Standards versus Open Source • Open Source: • Informal initiatives. Sometimes solid industry backing. • Main successes: Apache, Linux, Open Office, JBoss, MySQL, Eclipse… • Business model (if any): • Give source, sell service • Joint development saves R&D costs • Generate goodwill/marketing image by contributing

  18. Benefits from Open Source • Overall Benefit to Industry • Open Source complements Open Standards • Network effect from rapid dissemination of new technology • Build consensus on best practices • Commodity infrastructure allows companies to focus on their areas of real expertise and differentiation • Benefits to Software AG (Services) • Build flexible & more competitive solutions • Customers demand • Lower cost of products -> increase sales of services • Benefits to Software AG (R&D) • Benchmark our products vis à vis Open Source products • Contribute -> get support from developers

  19. Software AG involvement • Active Contribution to Open Source Projects • SAXON XSLT/XQuery Processor (Michael Kay) • Jakarta-Slide (4 people) • WEBDAV API • Software AG – Novell: SuSE + Tamino + Novell sw • Industry Standards Committees • W3C XQuery (Walter Waterfeld, Thorsten Fiebig ) • W3C XSLT (Michael Kay) • W3C SOAP and WSDL (Dietmar Gaertner, Mike Champion) • W3C Web Services Architecture (Mike Champion) • JSR 170 Repository API (Juergen Pill) • IETF WebDAV DASL (Martin Wallmer)

  20. Agenda • Software AG, the XML Company • Mixed revenue model • Services trends • Open standards versus Open Source • Testing Open Source

  21. Testing • Testing process, organization. • Standards - compliant products • Not just open source ! • Also commercial products

  22. Questions?Comments? Thank you !chandra.de_keyser@softwareag.com+32 494 632300

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