Archive for the ‘enterprise architecture’ Category

Is the time right for Progress Software to be bought?

In the course of my ongoing analysis of software infrastructure vendors I was intrigued by the recent earnings release from Progress Software…

…and it caused me to dig a bit deeper. Basically, Progress is holding its revenue stream although not growing it, and I guess in today’s environment that is OK. But when the performance of the company over the last few years is considered, a different picture starts to build up.

Basically, Progress made a lot of money from its OpenEdge database product, and this business is still providing a rich ‘cash-cow’ revenue stream. However, not only has this stagnated but it is starting to decay, with Q109 showing a sharp drop. Admittedly this is probably in part due to currency movements, but the trend is clear – this is not a growing business ans the writing is on the wall, at least in the longer term. Progress knows this, and so over the past few years it has been on the acquisition trail, trying desperately to find a new business that can grow sufficiently to become the new OpenEdge. It has tried the area of Data, with its DataDirect division growing through acquisition, but this business has reached a steady state with little or no growth. It tried the area of messaging, being the company that brought the term ESB (Enterprise Service Bus) to the world through its SONIC line of business, but having got a great mindshare and market position it lost focus and this business is now fatally damaged, with others such as IBM, Oracle andMicrosoft taking up the mantle. Recently it acquired the APAMA complex event processing business, Actional (SOA management) and IONA (a datedintegration business based in Ireland). It has since found some success with the excellent APAMA offering in the heartland of financial market data processing, but has struggled to replicate this success in other industries and use cases. Actional has also had some success but it is immutably tied to the SOA star which is having its own problems. And IONA, similarly to Progress, has a nice legacy integration business based around Orbix but has failed utterly over the years to create anything else worthwhile.

The result is that although the IONA purchase has increased revenues in the Progress ‘integration infrastructure’ business unit, this is likely to be a one-off improvement and once again Progress is going to be stuck with an aging cash-cow and no clear rising star to take over responsibility for driving growth.

This might seem a recipe for Progress itself to be acquired. Up to now, this has been unattractive due to the share price, but in thecurrent climate the acquisition looks a lot more interesting. My view is that there are probably two strong candidate acquirers for Progress:

  • Companies looking for attractive maintenance businesses where profit can be maximized by cutting expenses and taking the money until the product line sunsets
  • Companies not currently in the integration space but wanting to get into this lucrative area and looking for a ready-made product set (perhaps to underpin a professional services business)

Who knows what will happen in the current turmoil? I may be way off the mark, but if I was a company fitting either of these two categories, and I had the money, I think now would be a good time to strike. After so many false dawns, I suspect the Progress management team might not resist too hard….

Steve

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    What use is technology without flexibility?

    I was reading a post today from mainframe integration vendor GT Software…

    …about its support of IBM’s mainframe speciality engines, and I was suddenly hit by the realization that in order to really add value for users, technology almost always has to be accompanied by flexibility. The two need to go hand in hand if returns are to be maximized and business risk minimized.

    The specific example discussed relates to an IBM mainframe invention called a speciality engine. For the uninitiated, think of a logical processing box within the overall mainframe environment where processing is much cheaper, with different boxes being aligned to specific activities such as running LINUX operations, data access or Java-type activities. What this basically means is that if part of your workload is doing something that is supported by one of the speciality engine types, then you can choose to run it more cheaply by moving it into this engine, and in fact this can often improve performance too.

    This is neat technology, offering the opportunity to reduce costs and improve effectiveness, and various mainframe software suppliers have jumped on the opportunity this offers by moving eligible workloads onto these specaility engines. However, as with any new technology development, things are not quite as simple as they seem. In the IT industry there is a terrible tendency to jump for a new technology and push everything onto it, without appreciating the implications. But, in this example, as pointed out in the referenced post,

    There are many use cases where it is much more efficient to NOT shift workload to a specialty engine. Why — because, there is overhead associated with moving workload

    This is typical with just about any new technology. It is great in SOME circumstances, but loses out in others. iPODs are great for listening to pop music, sounding little different to CDs and being very much more convenient, but try them on classical symphonies and you will wonder what has happened to the color and magic of the piece. The key is to use new technology for WHAT MAKES SENSE, as opposed to what is possible. There is another angle to this flexibility too. IT vendors often ignore the fact that users are not starting from a clean sheet of paper; they have existing investments and technologies that cannot just be written off. Therefore, it is important to have the flexibility to operate with whatever is in place rather than demand a specific new technology component. This is not a static need, but a dynamic one – it may be that a company might change its approach further down the line, and a rigid, inflexible technology implementation can cause terrible future headaches.

    While new technology may promise a lot, it is only when coupled with flexibility over which technologies to use, for what, and when that technology can REALLY deliver its full value.

    Steve

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    Don’t be afraid to ask for SOA help

    While the number of SOA success stories grow, there are a lot of companies that are finding SOA a struggle.

    As often happens when something gets heavily hyped, managers are almost embarrassed to admit that they are having trouble. But the truth is that for many, getting outside help may be the best way forward and end up giving great returns.

    There seem to be three common SOA ‘failure’ scenarios.

    • This SOA-based project is blowing its schedule/budget/SLAs
    • We are diligently implementing SOA, but we just aren’t getting the returns we expected
    • Everybody agreed SOA was a great idea, but now nothing is actually happening

    It is easy to feel that these scenarios must reflect badly on management or technical efforts, since other companies seem to have succeeded with no problems. But in fact, it is perfectly natural to find SOA difficult. In essence, SOA is REALLY different – it is a different way of working, the tools are different, programming is different, design is different…..and so on. However, an important corollary of the success of SOA in other companies is that there is a growing pool of knowledge around SOA procedures and best practices. Already, there are some professional services organizations that have embraced all this accumulated knowledge and developed service offerings specifically designed to unblock the SOA logjam – getting projects moving again, finding why the SOA strategy is not delivering, and clearing up any organizational or procedural blockages.

    Companies should not feel bad about asking for help. It really can be worth it, even if there is an initial investment hit. And fortunately, once IT and business professionals get the hang of SOA, they wont need the outside help, so the cost hit does not have to be an ongoing one. The key is to make sure companies choose the right partner. This is a subject that is discussed more in a recent Lustratus Report, “A little help goes a long way”, that can be downloaded for free from the Lustratus web store.

    Steve

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    Message-driven SOA – what goes around?

    Starting from when I was running IBM’s MQSeries business, in the 1990s, I learnt a big lesson about seeing things from the user point of view.

    We had a great messaging product, and it started the EAI (Enterprise Application Integration) market rolling. Soon, vendors were pitching the wonders of business integration through an all-encompassing EAI framework….and users started moaning about it being complicated and too hard. Vendors brushed off these concerns and just shouted louder, and I was an evangelist in this….and then I started actually listening to users. I remember pitching for all I was worth on the strategic value of EAI, and then a user saying to me, “Steve, we believe you. But we can’t get there in one jump – at the moment, what we really need is to hook this application up with that one, that’s all”.

    For a moment my strategic eye was offended. How could you take this wonderful, clever, strategic software and then just hook two applications together? What a waste! But of course, I then learnt the practicalities of life, and the imperative to focus on the business need. If the business needs Application A to talk to Application B, then that is what it will fund, and that is what it wants to achieve. Sweeping frameworks are all very well, but for most companies practical considerations come first.

    Now I am having deja vu, all over again. I believe in SOA – I am an evangelist. I can see the huge benefits it promises as a strategic platform for business agility, business visibility and cost-efficiency. And yet, talking to users it has finally sunk in that while some of the more lucky companies have the funding and resources to go the whole hog with SOA, there are a large number of users who ‘just want to link A to B’, but want to do so in a way that is consistent with a goal of enterprise-wide SOA some time in the future.

    The new Lustratus report, free from the Lustratus web store, discusses a more tactical approach to SOA – “message-driven SOA”. It points out that even for those companies who are terrified by the prospect of having to work out their process implementations and flows, change the way they work and deal with business transformation issues, there is a way to leverage SOA ideas in a tactical, simple way that is at least a step on the road to overall SOA adoption. Message-driven SOA is almost a reprise of the tactical use of messaging in the 1990s, but with an SOA spin on it. So, message-based flows loosely couple applications and programs together, delivering the benefits of business integration without necessarily having to get tangled up in full-scale process re-engineering and modelling. And yet, the reuse concept of SOA is also leveraged, together with the ability to expose these message-based integrations as SOA services.

    Message-driven SOA may not be the answer to every problem. As a rule of thumb, it will be most attractive for integrations that are primarily of the application-to-application kind, where human interaction is limited and tasks are of short duration. But it is well worth a look to see if this simpler approach to getting tactical SOA benefits might be useful.

    Steve

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    Will Intel’s attack on appliances work?

    At the recent Gartner SOA show in London, I was surprised to see a stand from Intel.

    Turns out Intel are striking back at the burgeoning SOA Appliances market. The Intel claim is that its ’software appliance’ performs at least as well as Appliances, and is therefore a better option.

    The Intel argument is based on the fact that when you buy an appliance, you are locked in to the platform eg the box. So, as time passes, your appliance misses out on latest hardware or chip developments since it is hard-wired. In contrast, if the same performance can be obtained in pure software, then this has the advantage that it can be moved onto a platform with more power if needed, or as platforms are upgraded it can benefit. And Intel claims that its sexy software can match or exceed appliance speeds because it is so highly optimized.This optimization is apparently all around the XML parser. This makes sense in the SOA Appliance space because most SOA Appliances are seployed to deal with high volumes of XML conversions. The Intel claim is that it has a super-slick parser and that is how it can beat the Appliance.

    This certainly throws up a new consideration when looking at the case for appliances, but of course it should be remembered that performance is not the only reason people buy them. Off-loading from the production platforms is another reason, and not having to worry about the platform management is another (install, config, etc). However, the Intel argument is a good one. Perhaps the biggest worry I have, however, is that whatever one company has done in software, someone else can do too, and unless it is patent protected, there would be nothing to stop an appliance maker coming up with a super-fast parser, and then putting it into microcode. It seems to me that in the end hardware will always be faster than software.

    Steve

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    IBM events make an impact on SOA

    IBM certainly seems to see SOA as a key initiative, if its annual SOA show is anything to go by.

    The IBM Impact 2008 even in Las Vegas attracted more than 6000 attendees, and they can’t all have gone just for the weather! But the most salient aspect of the event as far as I was concerned was the ‘event’ support – not the army of people ensuring the party ran smoothly, of course, but the addition of the WebSphere Business Events product.

    Event handling has always been possible with WebSphere, but it was messy. Triggers could be set on different queues, and conditions could be detected in various ways, but the whole thing was pretty technical and complex. However, IBM’s new product, based around its acquisition of AptSoft technology, delivers exactly what business users are looking for; the ability to write business rules in their own language that can control operations.

    One of the key characteristics of SOA is that it breaks monolithic application stacks into individual services, each executing a discrete piece of business functionality such as ‘Get Customer Details’ or ‘Book Delivery Date’. In addition, information flowing in and out of these services is cleanly architected in a standards-based fashion, and is therefore easily accessible. But this opens up a magnificent opportunity to deliver business control over operations through the use of business rules that implement corporate policy by changing execution and flow.

    For example, if a bank wants to offer students the opportunity to make payments from their accounts with no charge, a business rule could be written that says ‘If account holder is a student, then skip the charge calculation step’. This is a simple example, but with the addition of a correlation capability IBM has ensured that much more complex rules can be put in place. Consider the type of rules needed to mitigate the risk of fraud, for instance, where multiple conditions from a range of different systems would need to be assessed to detect suspicious activity patterns.

    The key is that these things can be achieved with the use of business rules that the business analyst can understand. This makes change quicker, and reduces the risk of misunderstandings between the analyst and IT technical staff.

    With the addition of WebSphere Business Events support, IBM SOA has finally grown up. I guess the next step could now be a comprehensive BAM solution……we can but hope.

    Steve

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    Secure mainframe SOA-in-a-box

    I was reading the announcement from Layer7 about its ‘SOA-in-a-box’ for IBM mainframe users, and a number of things struck me.

    First, I am SO PLEASED to see someone remembering that CICS is not the only mainframe transaction processing environment in use today. A significant number of large enterprises, particularly in the finance industry, use IBM’s IMS transaction processing system instead. With the strength and penetration of CICS in mainframe enterprises, it sometimes seems like these users have become the forgotten tribe, but investments in IMS are still huge in anyone’s numbers and it is a smart move to cater to them. I am sure that the fact that this solution serves IMS as well as CICS users will be a big plus.

    The other point that struck me was that I have felt for some time that, with the security/intrusion detection/firewall/identity management market seeing such a shift to security appliances, it was time vendors thought of piggy-backing functionality onto these platforms. Of course, one reason for having an appliance is to provide a dedicated environment to address issues such as security, but in truth these appliances are rarely used to anywhere near capacity. Therefore it makes a lot of sense to optimize the use of the available processing power rather than slavishly locking it away where it can;t help anyone.

    Finally, I have to admit my first reaction to this announcement was to worry about how good connectivity would be to the mainframe. Dealing with mainframes is an arcane area, and I was not aware that Layer7 had any special expertise or credentials here, but I see that GT Software is apparently providing the mainframe integration piece. This makes me a lot happier, since this company has been dealing with mainframes for 20 years. In fact, Lustratus did a review recently on GT Software’s Ivory mainframe SOA tool, which is apparently what is included in the Layer7 box.

    Anyway, on behalf of all those IMS users out there, thanks Layer7!

    Steve

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    Is ‘Stealth SOA’ the only choice?

    Some of our recent research at Lustratus has given me the opportunity to talk to a lot of end user companies trying to get going with SOA, and a range of different roles within these users spanning all the way from the programmers to business people.

    As a result, I am beginning to wonder whether the only option for SOA implementation is the Stealth model.

    Leaving aside those visionary companies who are able to write off large investments on the latest new idea, or on a belief, most companies are forced to take a pragmatic view. As outlined in the Lustratus 2008 forecasts, there is a definite fracturing of SOA-related decision making between the archtiect bodies that see the value clearly, and the business-driven projects that own the budgets but do not see the need to include SOA costs in their business cases. When you think about it, this attitude from the business side of the house is not unreasonable – after all, what does SOA mean to a business unit? The discussions often go like this.

    You will get get business agility and flexibility – the ability to respond faster to market changes.

    - Oh yeah? When? How much do I have to invest before this happens? When do we reach critical mass? How long do I have to wait? Prove it!

    The P&L will improve because we will reduce redundant code and wont write so much new stuff.

    - When? What is the payback time? Why have you guys been building duplicate programs anyway? And how does that increase my project budget now, to cover the extra costs you want me to include?

    But it is all for the best – honest!

    - Do I HAVE to use SOA? Can I do what my project needs without? All I care about is this project, its allocated budget and the returns.

    The problem is that SOA actually asks the business user for a lot of faith, just like other major infrastructure changes fo the past. One way around this impasse that many users have started to employ is the ‘SOA by Stealth’ approach. The first step is to get the SOA infrastructure assembled – ESB, Registry etc. These components can sometimes be slipped into projects without arousing suspicion, usually by claiming that the particular project needs it. Breaking the infrastructure up this way avoids the problems caused by a sudden large investment. Then, as each project is done programmers try to gradually turn pieces of functionality into SOA services – as many as can be done without drawing too much attention and impacting the budget too much.

    The idea is that eventually it will become possible for IT to assemble the evidence that SOA is actually delivering benefits, at which point it becomes much easier to convince project budget holders to allocate some investment to it. In other words, the hope is that once the boulder starts rolling it

    Steve

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    SOA Communism vs Corporate Capitalism

    During a nice break for the Holidays, I got to thinking about SOA and its similarities to communism, and on my return I have been chatting to a number of SOA users and have confirmed my suspicions. SOA is just a communist plot!

    Seriously though, there is a real issue here that is starting to affect companies as SOA penetration increases. Once upon a time, IT investment was funded primarily through a central IT budget with all business units having to share the burden, but over the years this became unacceptable to many who wanted a more capitalist view where funds came from the people generating the business and were justified based on returns. So nowadays IT budgets typically fall into two pieces; a central component for the IT ‘infrastructure’ that everyone shares, and project-based funding attached to specific business initiatives.

    Then along comes SOA. In its simplest terms, SOA is about two things – packaging functionality in business services, and encouraging the sharing of these services across different business needs. But who owns these services / is responsible for funding them? Are they infrastructure? Well, not really because they are business-driven. So are they funded by a project? But in that case the project is now having to fund something being done ‘for the good of the whole’.

    This problem can be seen more clearly if we look forward. Imagine a company where SOA has become a way of life, and all applications are now made up of shared SOA services linked in different ways. Does that mean everything is now infrastructure and should be centrally funded? Then that takes us back to the centralized funding days, losing the link between business need/return and targeted investment. In reality, this introduces the principles of communism, where everyone owns everything, and the problem for companies is that this model stifles business performance and progress. Perhaps one way around the problem is for monitoring and management software to keep pace with the changes, so a clear picture can be built of which business operations drive which services. At least this would provide some more granular level of investment/return linkage.

    However, my personal view is the problem will sort itself out – once the initial funding hurdle of SOA has been overcome, project funding to achieve a particular business end will be happy to build the required functionality in ‘SOA mode’ because it will be just as cheap as not doing this, and this will have the convenient by-product of helping other projects. In other words, the kick-back against SOA by projects today is based on being forced to increase investment ‘for the good of others’. If SOA works out right, the future should see projects tomorrow investing less but also seeing others benefit, a much more palatable situation.

    Steve

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    Can SOA be bad for your health?

    Recently I featured in a podcast and wrote an article on the 5 SOA Security traps, and one particularly sticks in my mind.

    The issue is about flexibility – a good thing, most people agree, but in security / governance terms it can be a two-edged sword, and so it proves to be in the case of SOA.

    The problem comes down to security domains. IT implementations can be thought of as a group of structures with varying levels of security – all the way from a community village where anyone can wander in anywhere, up to castles with moats, drawbridges and even boiling oil! Imagine for example a company with a particular silo application which is highly sensitive and must be absolutely secure. This could be implemented on a high-availability cluster with hardware encryption, and even have physical access controlled by putting it in a room with locks on the door and a guard! Well, OK, this might a little over the top, but the point is the company can take whatever measures it sees fit to implement a high level security domain – think castle.

    Now along comes SOA, with its philosophy of flexibility and shared, reusable services. Instead of running silos, applications become a linked set of services and logic, and the wonderful flexibility of SOA means these services could be running anywhere across the enterprise, on any platform and in any technology environment. So supposing there is a shared ‘create customer’ service, and the high-security application switches to using this service instead of its own redundant create customer code. Now, since the security is only as good as the weakest link, the security domain is broken. Someone just drilled a hole in the castle wall.

    Of course, companies can take measures to ensure this disaster does not befall their critical apps. Procedures can be put in place to protect the integrity of the security domains, restricting changes to these applications and blocking them from SOA-based distribution. But many people are unaware of the exposure, and sometimes programmers, with the best intentions, might accidentally end up compromising operations. In the end, it is up to management to put in place any education programs, working practices and policies and then to enforce them. But at least forewarned is forearmed.

    Steve

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