Tuesday, July 17, 2007

BriefingsDirect SOA Insights Analysts on the Semantic Web, Abode and Open Source Flex, and the Future of UDDI

Edited transcript of weekly BriefingsDirect[TM] SOA Insights Edition podcast, recorded April 27, 2007.

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Dana Gardner: Hello, and welcome to the latest BriefingsDirect, SOA Insights Edition, Vol. 17, a weekly discussion and dissection of Services Oriented Architecture (SOA) related news and events with a panel of industry analysts and guests.

I'm your host and moderator, Dana Gardner, principal analyst at Interarbor Solutions, ZDNet blogger and Redmond Developer News Magazine columnist. Our panel this week, and this is the week of April 23rd, 2007, consists of Joe McKendrick.

Joe McKendrick: Pleasure to be here, Dana.

Gardner: Thank you for joining us, Joe. Joe is a research consultant, a columnist at Database Trends and a blogger at ZDNet and ebizQ.

Also joining us today is Jim Kobielus. He is a principal analyst at Current Analysis. Welcome back Jim.

Jim Kobielus: Thanks a lot Dana. Hi everybody.

Gardner: We are also joined this week by Dave Linthicum. He is the CEO of Linthicum Group. Welcome back, Dave.

Dave Linthicum: Thank you very much, Dana.

Gardner: And last, but not least today, Todd Biske. He is an enterprise architect with MomentumSI, an Austin, Texas consultancy. Thanks for joining us Todd.

Todd Biske: Thanks for having me again, Dana.

Gardner: We’re going to be digging into a few topics today. The first, the Semantic Web. We’ve heard quite a bit about Web 2.0+, perhaps even Web 3.0, the whole notion of a more intelligent web, something that provides things in an automated fashion with some intelligence. Of course, there is going to be more than one definition of Semantic Web, and we are going to dig into that too.

Second, and in a possibly related area, we’re going to discuss Red Hat's acquisition of MetaMatrix. There’s also some other news by Red Hat this week about some bundling and a concentration on SOA and it’s values.

Last, or perhaps third, I saw an interesting post by Joe McKendrick this week, something around IBM dissing UDDI and calling for new standards. We’re going to ask him about that. And also, Dave Linthicum had some posts this week in his blog about a Gartner study and the good news and bad news about SOA. We’re going to ask him to fill out that topic a little bit.

But, let’s dig into the first issue of the day. This was brought up by Jim Kobielus, the whole notion of Semantic Web. It’s been perking up on the radar and showing up in a lot of different places. We wanted to see if there’s anything new going on and if there’s any convergence with what we refer to as Web 2.0 and even Enterprise 2.0. So, let me first go to Jim Kobielus. Jim, why are you interested in the Semantic Web and how would you define it?

Kobielus: Well, Dana, I'm like everybody else on this call. I've got a very reptilian, scaly, analyst skin, and so I'm a bit cynical about the notion of a Semantic Web, as many are, but nonetheless, the topic keeps coming back to the surface. I saw a couple of articles in the past two weeks, in which the topic of the Semantic Web got trucked out again. This time, I saw one article where it was called Web 3.0, and I thought, “Oh, my Lord, we haven’t even decided that we are all in agreement on the notion of Web 2.0.”

So Semantic Web, as a concept, is still in play, and as you are probably all aware, the term was essentially coined or popularized by Sir Tim Berners-Lee, the inventor of the World Wide Web. There is an activity at the World Wide Web Consortium that’s been going on for a few years now to define various underlying standards and specifications, things like OWL and Sparql and the whole RDF and Ontologies, and so forth.

Gardner: On the standards list is also the IP, the Internet Protocol Version 6.0. That’s in that mix as well.

Kobielus: Right. It’s still in play as a concept, and people are still energized to invest it with meaning and substance. So, what is the Semantic Web? Well, to a great degree, it refers to some super-magical metadata description and policy layer that can somehow enable universal interoperability on a machine-to-machine basis, etc. It more or less makes the meanings manifest throughout the Web through some self-description capability.

It’s a "boil the ocean" type of initiative, and it’s been going on for a few years. Of course, when you boil the ocean, you generally get a lot of plankton. So, is there anything useful in this plankton that’s been boiled out of the ocean of Semantic Web? I think there is something, and I am not going to bring in the whole notion of Web 3.0. It’s a distraction, unless you’re going to tie it right back to this week’s news.

As you mentioned, one thing that happened this week was that Red Hat, the open-source company, announced its intention to acquire a company called MetaMatrix. MetaMatrix is in a niche of the data management arena that’s often called either EII (enterprise information integration) or data federation. They're not the only player in this space. There are many others, IBM, Business Objects, Ipedo, Sybase, Composite Software. Many of these have EII products and what they all do is provide a semantic layer that essentially virtualizes and abstracts heterogeneous data resources, mediates data dynamically on the fly, and presents that data in a unified data model or structure to end users.

Gardner: Jim, this is stuff that's being done inside the firewall and primarily on premises and within enterprises, right?

Kobielus: Yeah, primarily it’s being done within enterprises, but to varying degrees it’s being done across B2B environments as well, where you have diverse data on your ERP system. You have your line-of-business apps, transactional databases, web sources, and so on, and you’re not consolidating that data into a data warehouse. Rather, you're leaving all that data in the source repositories and dynamically mapping it to composite, unified views. What I am getting at is that there are a lot of vendors of these EII products that provide a semantic layer. Probably, the most widely used is Business Objects. They call it "Universe" capability. So, to some degree, this sounds like the Semantic Web.

Gardner: Now, hold on. Shouldn’t we again go to that point? Shouldn’t we call it the Semantic Intranet? It’s not really Web. It’s not standard. It’s not taking information off the Web. This is usually data and information that’s within the confines and control of the organization.

Kobielus: The World Wide Web, as a phenomenon, really took off when it was adopted inside companies in their intranets. So, the whole notion of a "semantic Web," to the extent that we can all agree on a definition, won’t really come to the fore, until there is substantial deployment inside of enterprises. I agree with you there.

Conceivably, these EII vendors are providing a core piece of infrastructure that could be used to realize this notion of a Semantic Web, a way of harmonizing and providing a logical unified view of heterogeneous data sources. Red Hat, one of the leading open source players, is very geared to SOA and building an SOA suite. Now, they are acquiring an EII vendor, which itself is very SOA focused. So, you’ve got SOA; you’ve got open source; you’ve got this notion of a semantic layer, and so forth. To me, it’s like, you’ve stirred it all together in the broth here.

That sounds like the beginnings of a Semantic Web that conceivably could be universal or “unversalizable,” because as I said, it’s open source first and foremost. The super-distribution model of open source, a la Red Hat, will conceivably propel some sort of Semantic Web into universality. I think this is an important event. Anyway, I want to hear what everybody else on the panel thinks about this notion.

Gardner: Now, hold on for a second here. You are the pessimist on this topic. So, I can hardly wait to hear the optimists. Furthermore, I just want to remind our readers that in the past on this show we've discussed the importance of a data-services layer. We should perhaps make that a priority even over other SOA activities or oriented activities, so that you can access data regardless of its origins and across different services and business process activities. So, we've been on top of this notion of metadata and a data-services layer as an important element moving towards SOA activities. Now, let’s throw it out to the group. Is anybody else a pessimist on this topic of the Semantic Web and whether that would evolve from SOA and internal enterprise activities, and then percolate beyond?

Linthicum: I'm a little confused about why it has taken us so long to realize this, because it’s been around for such a long time. I was just doing some Web searches, and I wrote some pieces three or four years ago around the Semantic Web and it’s use and play in both integration and SOA. I was kind of taken aback at the time that no one really cared, because I thought it was a very valuable notion. If we build on this, it does solve a lot of key problems. You end up dealing with universal semantics, how that relates to B2B domains, and how that relates to the enterprise domains.

As I'm deploying and building SOAs out there in my client base, semantic mediation ultimately is a key problem we’re looking to solve. This is the point you just made Dana. We have to have a better grasp on the data, how to extract that data into data services, and then apply those data services into our SOAs.

Gardner: Do you think that there is an opportunity for a standardized approach that would, in fact, encompass the World Wide Web, rather than this being done piecemeal, company by company?

Linthicum: I think so, and I think there are a couple of opportunities here. We like to test things out on the Web and then drive it into the enterprise. There are a number of instances of that. Even the AJAX deployments I see today are more enterprise based than Internet delivered based, and the same thing will happen with the Semantic Web. It’s a key, universal standard that lots of people are accepting. People are going to vote through the usage of it, ultimately figure out if it's going to have value on the Web as an inter-company thing or Internet universe thing, and then drive that into the private SOAs that people are building.

Gardner: How about you Todd Biske? You seem to come down on the side that practicality is paramount, and that the people don’t use it, regardless of how elegant and visionary it might be, if it's for naught. Do you have, a particular position on the pessimism meter on this?

Biske: I’m going to take my usual, pragmatic approach with this. First off, I agree with Dave that semantics is a really a critical piece in being successful with SOA. And I challenge the notion that you’re going to run into it whenever you’ve got these data-integration scenarios, whether it’s B2B or completely internal to the company. The issue that we run into is that it's still a very specialized discipline. There are a number of people, and I am not one of them, who really understand the technologies behind it deeply, and are continuing to push forward, but they haven’t yet found a way to really have it make sense to the average developer.

The average developer is still focused on the functionality of the business solution that they're providing. They know that they may have data in two different formats and they view it in a point-to-point fashion. They do what they have to do to make it work, and then go back to focusing on the functionality, not really seeing the broader semantic issues that come up when you take that approach.

It’s no different than just building out an SOA. People are still thinking in terms of their silos, and not thinking outside of the box and how it’s going to impact things in a long-term fashion. So, until we are able to have this hit home to the developer community, and really have them understand how they can take semantics, they can take that metadata, incorporate it into their development processes. It’s still going to be a very slow go.

Gardner: Well, that relates to another recurring theme here on BriefingsDirect SOA Insights Edition, and that is, “Should developers who are in the weeds be the drivers on this, or is this an architectural, strategic-level activity? And, who is in the position of driving that?” What do you think, Joe McKendrick? Should developers be concerned with this in terms of jumpstarting it, or does this have to happen at a higher level, perhaps across industries? Vertical industries of course have a great deal to gain by this if they can create semantics around their particular business issues, and then make more services and resources in automation available to the developers.

McKendrick: It’s going to come from both directions -- from the top of the organization and from the developers within organizations. How’s that for a definitive answer? On the part of corporations, there is always resistance to exposing too much data and exposing too many of their applications to the outside. A little bit of this has been melting away, as we’re seeing the rise of software as a service, and from surveys and anecdotal data.

Information I’ve seen in recent months indicates that there is lot of interest in the whole software-as-a-service model. A colleague of ours over at ZDNet, Dion Hinchcliffe, encapsulated the view of Web 2.0. He calls the Web 2.0 "The Global SOA," meaning that a lot of the standards and services that you see in an SOA behind the firewall these days will be available in a global sense from the Semantic Web or from the Internet at large. And a lot of the services, standards, etc. that we will adopt and see in companies will gradually, more and more come in from the outside -- from the Global SOA, if you want to call it that.

Gardner: That helps us conceptually, if we think of SOA in terms of the reuse, mixing and matching, aggregating, and compositing the free access to services. If we apply that to the larger Web, then think of software as a service and the APIs that are increasingly available from the likes of Google, Salesforce.com, Amazon, eBay, and Microsoft, then we can see SOA principles inside the organization and then Web 2.0 principles outside. But technically, isn’t there still a huge disconnect between what is referred to as EII and master data management (MDM) and what others are referring to as the Semantic Web? Isn’t this really still orthogonally an entirely different kind of technical approach, Jim Kobielus?

Kobielus: Are you asking whether EII and MDM are different approaches? Can you clarify?

Gardner: I'm trying to get at the point that conceptually we have a common thinking and methodology around SOA internally, and then Web 2.0 externally, in terms of mashups and services that are available. But on the data aspect, I still think that there is a pretty large disconnect to try to make these two areas conceptually fit on the technical level in regards to EII and master data management activities internally, across B2B ecologies, or vertical industry ecologies. It’s still very distinct from what we’re talking about on the larger World Wide Web, the things that Tim Berners-Lee and others are getting close to in terms of Semantic Web and Web 3.0.

Kobielus: That’s quite right. Basically, you can look at semantic interoperability as being the global oceanic concern. Wouldn’t be great if every single application, data base, or file that was ever posted by anybody anywhere on the Internet somehow, magically is able to declare its full structure, behavior, and expectations?

That’s the "boil the ocean" aspect of it that everybody keeps focusing on, but then you can look at semantic interoperability in a well-contained way as being specific to a particular application environment within an intranet or within a B2B environment. Many vendors in the master data management or EII space are approaching it from that direction. In other words, they are providing pre-built domain models with standard data definitions, metadata, ETL rules, governance workflow rules, etc., as a standard component of their applications.

These are applications running out like an MDM or an EII substrate that they will sell in to particular niches or segments, such as enabling customer data integration within an organization or enabling a supply chain optimization on a B2B basis, where there is essentially this shrink-wrapped semantic model that’s provided as part of the overall application. That is semantic interoperability, because what’s happening then is that the vendor, and/or its ISV partners, and/or the customers are taking the semantic domain model and modifying it to their particular requirements.

So, that is very much, in a sense, the Semantic Web. It’s semantic interoperability out of the box that doesn’t rely necessarily, or very much, on things like RDF and all of these other specifications that are sitting on the sideline and are represented in today’s EII market.

Gardner: So, to Todd’s point, it’s still point-to-point, and we're not doing this on any automated or holistic basis, but, gee, wouldn’t it be great if we could? Let’s take a look, though, at Google and its effect in the market. While there isn’t a true Semantic Web, there is some added functionality that Google and other large search engines bring to the table by organizing and creating metadata and indexing within their environments. They make it freely available, with the quid-pro-quo, of course, they can create a huge fast-growing contextual advertising business around that. But, are Google and others of its ilk in a position of creating a de-facto Semantic Web? What’s the relationship of that to companies who might start indexing and creating metadata search-type activities within their SOA or services-data-level activities?

Biske: It’s interesting that you bring that up, because last week David Margulius published on InfoWorld an article titled “Corporate librarian replaced by Web app.” He wound up having a link to one Clay Shirky article that talked about removing the shelves. He was comparing it to a library and the whole Dewey Decimal System and saying that what Google did was to pull all the shelves out. That is to say that there is no one way of organizing it, and it's really focused on the relationships. So, even there, I don’t know that Google’s necessarily created a Semantic Web. They have created a relationship index.

Gardner: An index, yes.

Biske: So, you’re still not going to get that semantic information out of it, but it's probably a far more appropriate way of getting at the information, because, as we know, there are so many different ways of slicing and dicing that it’s a challenge. It comes back to why some of the semantic technologies haven't made advances. The challenge within data federation is that we keep trying to find one universal model, when there isn’t one.

Gardner: Right, but perhaps indexes that have something in common by being equally searchable can create a stepping stone, or a good-enough-as-good-enough approach, to some of these requests and demands.

Biske: Where a Google approach can help, and where Semantic Web comes into play is when we know there's a relationship between these two documents, two things are accessible via URI. We need a standard way of getting metadata about that, beyond just the tags, because we found that while the tagging is a step better, you still have a semantic issue with the tags themselves.

Now, if we add in the metadata that provides additional context about the relationship, what is that going to enable? Now we can start to really make semantic connections between these things and start to leverage that metadata in an automated fashion.

Gardner: What do you think Dave? We're seeing a lot more Google appliances percolating up inside organizations, where they're using essentially the same approaches to organize data inside the Firewall as Google uses across the global Web, and across many other types of content. Is there something here in terms of using these indices to get to the semantic level of benefits?

Linthicum: I think so. I’m just going to add what Todd said. One thing that’s going to happen with the influence of something like Google, which is having a ton of a push in the business right now, is that ultimately these guys are exposing API’s services. They just came out with a streaming API last week, and its actually pretty good. But, at the end of the day, it’s a service that you invoke to get a stream out of it. They're coming to the realization that the developers that leverage these APIs need to have a shared semantic understanding out on the Web. Once that starts to emerge, you're going to see a push down on the enterprise, if that becomes the de-facto standard that Google is driving.

In fact, they may be in a unique position to create the first semantic clearing house for all these APIs and applications that are out there, and they are certainly willing to participate in that, as long as they can get the hits, and, therefore, get the advertising revenue that’s driving the model. But, I think the indices and the ability to catalogue not only content, but services and then information around services -- and not only services, but data and information around data, metadata -- is really the next logical step in that area. There is going to be a big push there in the next few years. I don’t necessarily see it as the 2007 opportunity, but it’s clearly a 2008 opportunity.

Gardner: That’s very interesting, and I don’t think I've seen this declared elsewhere -- Google, being in this unique position, perhaps more than the W3C or Oasis or some of these other organizations, could create some sort of an approach for de-facto industry standardization around indices and then, ultimately, Semantic Web types of activities.

Linthicum: If you think about it, Dana, Google right now is probably the number one provider of services out on the Internet, providing the Google maps, API’s and everything else that’s out there today, and they see this as a strategic direction where they can grow. So, they are in the API business and they are in the services business. When you're in for a penny, you're in for a pound, and you get into that world. So, you start providing access to services, and rudimentary on-demand governance systems to account for the services and test for rogue services, and all those sorts of things. Then you ultimately get into semantics, security, and lots of other different areas they probably didn’t anticipate that they'd get into, but will be pushed into, based on the model they are moving into.

Gardner: I didn’t expect to get into quite this discussion today, but at the Web 2.0 Expo I attended last week in San Francisco, one of the underlying discussions that were seemingly going on everywhere was Google. "They are so big. Are they good; are they bad? What should we make of them?" It was this is sort of an ongoing gnashing of teeth and navel-gazing across many of these communities. In one of my conversations, I said that just because they are big and powerful doesn’t mean that they are bad. Why not give them the benefit of the doubt? Without going too far into the "Google good-Google bad" business, given their very powerful and perhaps auspicious position, how do you guys come down on Google as an SOA enabler?

Kobielus: I agree with Dave. Google potentially plays a very important role in catalyzing the spread of something like a Semantic Web, simply because they are the master indexers of the universe. When you look at the EII products and the vendors that are out there, every single one of their semantic layers, at its very core, has an index. It’s a registry of the data and the metadata that exists out in whatever universe or other environment that that particular vendor’s product is managing.

So, to the extent that Google is the default index that everybody goes to first and foremost, and Google crawls and has indexed and documented every visible piece of content in the universe, I think they sit right dead-center of the heart of the Semantic Web, or will, or somebody like them, somebody who plays that role.

Gardner: So, maybe we should add the new tag line to Google: SOA enabler.

Biske: I agree with those comments as well. If we take this inside the enterprise, and the enterprises deploy the Google appliance, they can go and crawl all of those sources of metadata. The enterprise is trying to take on some form of data governance and come up with their canonical models, and they need to take a bottom-up approach to all of the databases that they have got. Why not throw your Google appliance at it and then start throwing in the keywords that the data-governance committee is actually debating on how to describe the data? You’ll instantly have all the relationships between not just what's in your relational databases, but your unstructured content as well.

They really do play a key role, even indirectly, in the SOA space. One of the recommendations I always make to the companies that I’ve worked with, if they are looking at register repository, is to ask the vendors whether their repository can be indexed by a Google appliance. Ultimately, that’s going be how the developers are going to find the services, and they want to use Google to find it.

Kobielus: Here is the thing. For this grand notion of a Semantic Web to be truly universal, all the many indexes and search engines that are out there need to be federated. Semantic interoperability is a huge problem that I can scarcely put my head around. How is that going to happen?

If you think about it, the analogy is a whole federated identity world that’s been percolating since the start of this decade. You have concepts or standards like SAML, the Liberty Alliance Standards like IDFF, and now SAML 2.0, WS Federation, etc. Those guys have not converged on a common, universal federation environment, in which everybody participates. And, that's just in identity management. Think about federating metadata repositories across the known universe. That should be a tough nut.

Gardner: That’s right, if we take the same approach to data and apply it to ID management. Then, we're talking about the single sign-on and the cloud benefit that many people have been asking for. But, that might be a little of a tangent. Let's try to stick to data. One of the things that occurred to me, when we were describing the virtues of a Google search appliance and Web-based indexing is perhaps Google or others need to come into the market with a gateway appliance that would allow for policy, privilege, and governance. This would allow certain information from inside the organization that has been indexed in an appliance, say from Google, to then be accessed outside. Who is going to be in the best position to manage that gateway of content on a finely-grained basis? Google. So, perhaps Google moves again into the gateway appliance business. Any thoughts?

Linthicum: I don’t think that they have gone that far-far down the road.

Gardner: We should charge them for this. Don’t you think?

Linthicum: I think we are giving free strategies to a multi-billion-dollar organization. I don't know if you saw the release this week from salesforce.com. They are in the platform business, so they deliver semantic mediation, app development and integration, and even aspects of SOA on demand now. So, that’s another player in this game, as well, and a much more sophisticated player, when you consider that they give you the coding tools, design tools, the database, and the platform in a virtual operating system. There's going to be a lot of people moving at that platform, and they're building SOAs on that platform and extending them in their enterprise. They could become the platform for semantic mediation as well. That’s their opportunity right now.

Gardner: Not to bash Redmond, but perhaps Microsoft isn’t in a position to move into this federated global approach, and may have missed the boat on this as well. Any thoughts there? No comment? Okay. Never underestimate Microsoft.

Linthicum: I think we are all waiting for checks from Microsoft and they haven’t come yet.

Kobielus: I was thinking that the real platform for semantic mediation are these industry groups that define common data models for those industries. They can form those data models that then are the platforms for semantic interoperability within those environments and within those industries. So, that’s also important. Doesn't OMG under Richard Soley develop, to some degree, those data definitions on a industry-by-industry bases or catalyze their development?

Gardner: I believe they do. They've been aggressive in going into verticals and providing a common consortium-level organizational framework for them to come together and agree on taxonomy, scheme, and terminology.

Kobielus: Because it’s all about taxonomy governance, and governance quite often is industry specific.

Biske: I actually do have a Microsoft comment. The one thing that I will give Microsoft credit for is that of any of the players, they are probably one of the ones most likely to bring metadata into the developer’s world. One of the WS-Star specs that I like a lot, but that you don’t hear too much about, is the WS-Metadata Exchange. Microsoft’s got an implementation of it, and they are strongly trying to leverage that in the advancements they are doing to .NET and Windows Communication Foundation. Because of how developer focused they are, if they continue to push that, they can start to bring some of the Semantic metadata into the developers' context and show them how we can leverage not just in design time but in run time. So, we’ll just have to wait and see what they come up with

Gardner: Could this be yet one other area in which Google and Microsoft will perhaps bump into each other?

Biske: I don’t know that we’ll necessarily see that, because Microsoft's strength is in development tools, whereas Google is more in providing their widgets that can be combined on the Web pages and the whole AJAX feel to these things, as well as the underlying search engine. So, they are little bit orthogonal in their approaches.

Gardner: What about the federated indices based on some sort of a Google indexing standardization that would allow for developers to access metadata vis-à-vis these indices, rather than through other means?

Biske: That will be the challenge, if Google actually tries to come up with a standard for accessing them, and Microsoft wants to push one of their own. But I haven’t heard too much on either side about doing that.

Gardner: Now, we are getting in the real crystal-ball action here -- like 3 to 5 years out. Based on some of the discussion around UDDI and registries, maybe these need to be made accessible to crawler activities and appliances for indexing. Joe, you had a blog about IBM dissing UDDI. Can you explain where that came from and what’s going on there?

McKendrick: Sure. Actually, IBM released its Websphere repository and registry product's latest release the other week.

Gardner: About couple of months ago, wasn’t it, and the analysis now has just come out?

McKendrick: Exactly, and Burton Group's Anne Thomas Manes released a report in which she pointed out that there really isn't strong support for UDDI. The product supports UDDI implementations outside of their own registry, but its more of a proprietary solution, kind of a step backwards. IBM was one of the co-creators of UDDI in the first place 8 to 10 years ago, along with Microsoft and Ariba.

It was originally created as kind of an e-commerce yellow pages. There would be this place where you could go to find out about services, and it would link the services across the Web or Internet. Of course, it didn’t really happen. In fact, these companies maintained public UDDI registries, and they shut them down because it just wasn’t getting them traffic and they couldn’t keep them updated. But UDDI found a new life as the internal registries for SOA governance.

In an accompanying article that responded to Anne Thomas Manes' observations, IBM came out and said "Yes. We are not exactly robustly supporting UDDI any longer. We feel that UDDI does not support the vision of SOA as it exists these days." It supported Web services, the interchange idea of Web services, at an earlier era, but SOA is an internal building block function, and UDDI is not robust enough.

Gardner: What do you think IBM is doing here with this, as you call it, step backward? Perhaps they would view it otherwise? What do you think they are trying to do, add more functionality conceptually into what a registry and repository should do and that UDDI just isn’t designed to handle that?

McKendrick: They say that in its current state, the UDDI standard doesn't support the lifecycle aspect of service development. Again, it’s a more than an exchange and communication vehicle, but it does not have that from design-time-to-run-time support that registries should have.

Gardner: I just did some research with IBM, looking into what they are calling their Jazz Framework. Not all of this has been made available, so I have to be a little bit careful. But, this might be that missing link, if you will, between the design time and the run time, where they are creating an Eclipse-like framework that their products, Rational, Tivoli, and WebSphere will plug into very nicely. But, they are also making it open, so that others can do plug-ins and modules and also have some community-based approach to it.

They're trying to do just that, create a lifecycle approach to services, so that developers who collaborate with one another, perhaps across global distances and multiple organizations, can be in a common mentality around the governance and the use of these services. They can relate to operational governance issues fairly early in development. Has anyone else been made aware of Jazz or looked into that at all?

Speakers: No.

Gardner: Okay, we’ll expect that it is going to be announced at the Rational Developers Conference in Orlando in June. There's already some stuff out on the Web that’s trickled out. So, if you do an "IBM Jazz" search, you will find some of this. Stay tuned on that one. It’s an interesting angle that promotes the notion of SOA lifecycle development, services life cycle, and a community and framework approach.

McKendrick: Well, IBM said that the vendors should go ahead and start working on a new replacement or a new generation of registry, and maybe this is what they are talking about.

Biske: It's unfortunate that the IBM article really was very lacking in specifics. They said UDDI didn’t cut it, but they didn’t give any details on where it didn’t cut it or what advanced features their customers were asking for and needed. It doesn’t surprise me that there are some ramblings around this. One of the things that I have called out a couple of times my blog is whether we're willing to see convergence around all these metadata repository spaces.

I usually point to configuration management databases versus the UDDI and registry repository space. Clearly, it's not a great leap to get into the policy management space, which now hits the heart of governance and the topics around SOA registry repositories. So, there are some clear ties there. If each one of these systems has its own unique way of representing the metadata, as well as accessing the metadata, then perhaps IBM is right that we do need more work on the standardization front to figure out what is the best way for just accessing this universe of metadata, whether its policies for the run-time infrastructure, additional semantic information for design time, or both.

Gardner: Let’s move on to one other subject that just occurred to me, even though I didn’t put it in our lineup early in the show. We had the announcement that Adobe is going to open-source Flex Rich Internet Application (RIA) approach. Any thoughts about that in terms of "Does Adobe have a chance of establishing more of a de-facto industry standard for RIAs as a result of Flex being open source?"

Linthicum: I think that’s a response from Laszlo and a bunch of other folks in the AJAX world who are just counting their toolsets, and they're big enough to buy their way into the market. That's exactly what they're doing.

Gardner: When you say "buy their way into the market," by having an established product and making it open source. Is that what you mean?

Linthicum: Yeah, open source, discounted, and therefore making it much more attractive. They add some value, but in many instances, it's just becoming a gimmick to sell software, and this may be an instance of that.

Gardner: But, even as a gimmick, given their presence and the pretty powerful capabilities of Flex this could give them a big advantage in the market.

Linthicum: Absolutely. I have a lot of experience with Flex, as I built Bridgeworks, a company I was CEO of a year ago, around Flex, and it’s a very good tool, and it does a very good job. I think that they are trying to get it out into the development community to get away from the whole Flash Internet content, Internet sex appeal delivery industry they’re in right now and move into the app development industry. That’s a great way to do it, because people say, "Open source? Okay. I'm going to give it a shot."

Gardner: I had a little fun in my blog with this announcement, saying, "Well, why don’t they do it with Flash as well, if they think so highly of open source?" But, I haven’t heard a response. What do you think? Is that something that makes sense to you -- to have Flash on the entertainment side of this become, at least potentially, some kind of de-facto standard? Could open source help them achieve that, particularly in light of what Microsoft announced with it’s Silverlight capability?

Linthicum: That’s a tough leap for them, because ultimately that’s their bread and butter. They own a lot of that market, and they do so with a very well-thought-of product. They are probably not looking to do anything different, because that’s going so well. The Flex market is completely different. You've got a lot of these folks entering that market with some very nice technology, and I think Adobe is just responding to that competitiveness, versus owning the market. They have to compete in the market, and that’s the way they are going to sell their product. I think it’s a smart move for them.

Gardner: I've heard, and I don’t know if this is substantiated, that there were fewer than 10,000 active Flex developers. So, that must have been a concern to Adobe, but they might be able to create a catalyst to adoption now.

Kobielus: I'm sure that’s their hope, that Flex can catch fire with the development community by being freely available everywhere. That’s the same gamble that Red Hat took with MetaMatrix, when they open sourced that, but it doesn’t mean that they are going to succeed. There are lots of alternatives to MetaMatrix in the EII space, and I am sure that there will more of that coming along. So, it’s definitely a gamble for Adobe to give it away.

Gardner: One more comment from me on the Red Hat thing is that I think this forces IBM's hand a little bit on the EII stuff. Open source can be very powerful in that regard. There are so many instances where modules, connectors, community involvement, and then sharing of those connectors and modules could be very advantageous, especially where you are trying to bring as much data and content into a common view as possible. So, Red Hat is perhaps thumbing its nose at IBM, saying, "Well, now what’s your response?"

Kobielus: That’s right. They're also thumbing their nose at BEA, which has had an EII capability with the AquaLogic platform for a while now and hasn’t really got much traction with it.

Gardner: Last subject, and we've only got a few minutes Dave Linthicum, you quoted a Gartner study in one of your recent blogs. There was a Gartner symposium just this last week in San Francisco -- good news, bad news, and SOA. Can you just tell us quickly what was the take away on that?

Linthicum: The take away on that are things I've been seeing for quite some time. People are actually getting into the project-level of SOA now. I am seeing that happen a lot. I am sure MomentumSI and other folks in the service-delivery area doing that, and they're finding out that it’s hard. It’s tough to do, and it’s a systemic change in the way they think about architecture. There’s a bit of a hangover from the hype that occurred in the last few years. So, people are having a bit of a negative take-back on that. I feel like I'm the designated buzz-kill running around the country, working with my clients, introducing them to the fact this is not something that can be taken lightly. You can’t bolt it on. SOA is something you do, not something you buy.

So that’s the bad news. The good news that Gartner found out is that the concepts are working. People are successful with the technology, and I'm seeing that in my practice as well. It’s a valuable thing, and they can make a lot of money in terms of expense savings and the strategic advantage of agility that goes right to the bottom line.

So it’s a good concept. Conceptually it’s working, people are proving it out in the market. It’s just a bit different from the way in which the vendor hype has been describing it over the last couple of years. It’s more of an evolution of hard things that need to be done. You can’t buy stuff out there. You can't buy SOA.

Gardner: I should also point out that Dave is not just the CEO of the Linthicum Group but he also writes the Real World SOA blog for InfoWorld. He is the host of the SOA Report podcast, and is also a long term SAS blogger for Intelligent Enterprise. So, thank you also. Jim Kobielus, you are a blogger too, what’s your blog address? How do people find your blog?

Kobielus: jkobielus.blogspot.com

Gardner: Can you come up with a brand for that it’s a bit long isn’t it? How about “Jim Says” just "Jim Says?" And, Todd Biske you’re a blogger, tell us about your blog, where is it located?

Biske: I actually started my blog before I joined Momentum so it’s under my personal domain. It’s www.biske.com/blog

Gardner: Well, thank you. This has been an interesting discussion. I appreciate all of your thoughts and inputs.

This is Dana Gardner, principal analyst at Interarbor Solutions. I want to thank Joe McKendrick, Jim Kobielus, Dave Linthicum and Todd Biske for joining in yet another BriefingsDirect SOA Insights edition podcast. Thanks all for listening.

Listen to the podcast here. Produced as a courtesy of Interarbor Solutions: analysis, consulting and rich new-media content production. If any of our listeners are interested in learning more about BriefingsDirect B2B informational podcasts or to become a sponsor of this or other B2B podcasts, please fill free to contact Interarbor Solutions at 603-528-2435.

Transcript of Dana Gardner’s BriefingsDirect SOA Insights Edition, Vol. 17. Copyright Interarbor Solutions, LLC, 2005-2007. All rights reserved.

Tuesday, July 10, 2007

Content Becomes King Once More – This Time of Search Marketing

Edited transcript of BriefingsDirect[TM] podcast with Media Survey's Sam Whitmore, recorded April 24, 2007.

Listen to the podcast here. If you'd like to learn more about BriefingsDirect B2B informational podcasts, or to become a sponsor of this or other B2B podcasts, contact Interarbor Solutions at 603-528-2435.


Dana Gardner: Hi. This is Dana Gardner, principal analyst at Interarbor Solutions, and you're listening to BriefingsDirect. Today, a podcast discussion about the future of marketing -- maybe we can call it Marketing 2.0?

We're going to talk about content creation as a strategic activity, and we're going to talk about what the PR and marketing folks in the field, in the enterprises, in businesses, are making of all of this.

Joining us to sift through it all, we have Sam Whitmore, founder and editor of Sam Whitmore’s Media Survey. Welcome to the show again, Sam.

Sam Whitmore: It’s great to be back, Dana.

Gardner: It’s been two years since we started these conversations. I came to you as a professional providing tools for the media pros, asking, were they making blogs, were they making podcasts, what about RSS? And you weren’t sure. But do we have a new state of the art? Are people into this now? Is it a fad or are we really into something substantial?

Whitmore: It’s as close to substantial as it’s ever been. There are many segments, and we should be careful about generalizing, but in our world are the people that are likely to listen to this podcast. People understand about RSS feeds now. Microsoft Vista, entering the market with Web feeds, moved the marble a little bit -- and it's a very exciting time.

Gardner: I just got back, Sam, from the Web 2.0 Expo in San Francisco and was very impressed with the use of RSS, particularly as a machine-to-machine capability. Folks that are creating content, and then creating distribution networks using these within the mashup interface, the rich-Internet application interfaces. RSS is really a very popular tool for developers, and that’s going to hasten its appreciation for those a little higher up the food chain who are thinking about strategies, marketing, outreach, community development and so forth.

Whitmore: We're now getting people to understand the concept of "You don’t have to browse anymore." They still search, of course, probably more than ever before. But think about the two ways that people get their information now. It's either through RSS syndication, or through search. And it’s almost quaint to think back about, "Yeah, I think I am going to go through my bookmarks and see what I haven’t visited in a while." I don’t know anybody who does that anymore.

Gardner: The thing that’s interesting to me, and what’s changed in my business in the last year or so is this emphasis on search. Search, from what some people tell me, is the "new media." When you want something, you know enough about it to start a search. If you're a little bit diligent, you can find just about anything you want. That includes B2B content that describes products, values, and services that companies want you to know about.

What’s been interesting for me is that as I have created content -- some of it of by my own creation and, and other content that is sponsored -- people want help in creating content. As an analyst, I can moderate a panel or discuss something with users, and then make that available to many people. But that content has now become a very powerful force in search, and I did not intend it that way.

I intended this content to be something that had more of an RSS play value. But what’s happened is that the content is a search-ranking benefit for the topics we cover. I will blog about this content on three blogs, and I share it with distribution partners who are often IT media companies like TechTarget and E-Commerce Times. I also share it with direct subscription-based content deliverers to IT decision buyers, including Books24by7, AnalystPerspectives, Gerson Lehrman Group's News, and Insight24.

There are a number of channels that this audio and text content then finds its way into -- where it's tagged, has a different URL, and is associated with a different Web domain. The search engine crawlers and the algorithms that rank content take a look at this content and say, “Wow, it's going across multiple domains, it's been tagged a lot, it’s been put into bookmarks, and linked to -- so it must be highly relevant." And this content tends to move up swiftly in the search ranks.

So, my question to you, Sam, is: Are you seeing search marketing as I am seeing search marketing -- that it is becoming as important as advertising?

Whitmore: In a word, yes. I'll know a lot more in a couple of weeks, because at the end of the month, out in San Francisco, I will be going to ad:tech and hanging around with that crowd. But, it's been building for a while. The investment in search-engine optimization (SEO) and some of the acquisitions that we have seen, such as big, multi-national marketing companies now snapping up the iProspects, and iCrossings, are doing a great job. So, it’s definitely being built into the mix. That’s what Content 2.0 is. And you’ve really staked a high ground in that, haven’t you?

Gardner: I am trying.

Whitmore: So, you tell me. How are you doing with that? Is it driving your business?

Gardner: It is. About 90 percent of my business is now supported through custom podcast content creation. And I even hesitate to use the word podcast anymore, because for me, podcasting is really a means to creating content -- and not an ends. Just as you and I are having a discussion now on the phone, and I can create a transcript from this in about two or three days, that means this content can be widely distributed through multiple modes or modalities across different distribution networks and partnerships. We can even license it to people to use and create more content.

That’s sort of led me to another concept, which I call the "content pyramid." Interestingly enough, I’ve stumbled onto this in the same fashion that I stumbled onto search as an important element. Because I look at software development and deployment strategies as my main domain area for coverage -- and then I am more of a practitioner of Web 2.0 in terms of how I deliver content -- I’ve noticed over the past five years or so, a more strategic approach to software development.

That is to say, there's a new way, instead of small groups off doing their own thing, creating their applications that run autonomously on a monolithic stack of some kind, that have no real relationship to one another, and that at some point I might have to integrate and/or assimilate the data that they contain and create. The idea is to take a strategic overview and to think about applications from an architectural perspective.

The idea is to think of applications from their lifecycle, not just how we create them -- but how we might want to use them in the future, or even sunset them. Then think what we’re going to do with this pile of data that, in many cases, is about the same customer or the same product, but in a different format in a different application? This one-off approach is just not productive, and it’s expensive.

Companies are spending 70 to 80 percent of their IT dollars just on maintenance of these existing applications, and are not doing innovative new things. There has been a whole host of things that have happened around, "Hey, let’s create components, let’s use standards, and let’s develop around a common framework such as Eclipse." So, there’s more of a strategic approach to software.

Ultimately, the goal is a Service Oriented Architecture (SOA) where you have lots of different business services that you can then package, mash up, and aggregate to create different processes. Then, you can tear them apart and build them up again. It’s more of a use-reuse, common-repository mentality, and not just one-off production.

Whitmore: All right, so let’s see how you pull this off with content.

Gardner: The idea is to start thinking strategically about your content, instead of having thousands of people around your company, each creating their own content without much interaction, without much coordination, but perhaps a lot of overlap and a lack of reuse, adding to redundancy. That goes for everything from mimeographs to RSS feeds, and all in between.

But when you think about content more strategically, and can plan for and create core content that can be reused and extended across different uses -- like marketing literature, the documentation you provide for your services and products, your advertising, as well as your communications with your investors, with analysts, with the press -- you create more of a coordinated core set of messages and documents and content. We'll be seeing more audio and video increasingly in this mix.

If a company can create this content core and allow people to use it and make it accessible -- in the same way as with the development of software tools and components -- you can better control your costs. You can better control your message, because more of your messaging will be in sync, because it's all coming off of the same core. You can create a lot of this core without having to go through a sixth-month review process, and without taking up your experts’ and your company’s time by forcing them to write 80-page papers.

Maybe this whole notion of the conversation that is prominent in social networking and in Web 2.0 -- of having a series of conversations, capturing it as audio, turning it into text, reusing it across different aspects of your communications, and increasingly, capturing it as video as well -- will allow for a much easier way of gathering knowledge from your experts and users, keeping it on message, and then making that available as a set of core content.

Now, it’s a vision. There is always going to be a lot of need for exceptions, but conceptually starting to think about content strategically to me makes a lot of sense now.

Whitmore: Well, I know that Netflix has somebody in the CCO position, Chief Content Officer, and that they have looked into that as a fundamental principle of communicating to their constituencies, their prospects, their customers, their investors, and people like that. So, it is a good idea.

Gardner: It’s really all about content discussion and community. As more companies outsource and offshore elements of their production and distribution, and as more business services become available off the wire, what is it that’s going to define the business of the future? It’s going to be their relationships, and the way that they foster those relationships is through ongoing content-based discussion.

We now have the ability to distribute content far more widely, but, at the same time, in a more granular sense -- that long-tail concept -- more widely, yet more targeted, and more cheaply than ever. So, you can create a 30-minute movie, put it on YouTube, and almost anyone on the planet has access to it. Anyone, by the way, who does a search on the key issues about your value, your products, or your company gets to the content.

More companies will be making some pretty high-quality, interesting, 30-minute, maybe 15-minute movies. We are already seeing this. There was a great one on SOA that IBM did not too long ago. Are you, as a marketer, going to want to have someone else define your messaging for you? Or are you going to start thinking about doing this yourselves?

Again, IBM is a bellwether in this, at least in the IT space. They’re just creating scads of content. And when you go to Google, if you type in "SOA" or "Services Oriented Architecture," which is an important direction and business opportunity for IBM, the left hand side of the search page, that free-content stuff, is littered with IBM content. Discussions with developers, whitepapers, mentions in press – these are the things that get vetted by the search engine algorithms as being relevant.

Any company that has a strategic direction in which they are taking their business should say, “What are the keywords that relate to our future? What is the content we can create that will drive recognition from those keywords of our value, specifically as an individual company? And how can we create an ongoing process by which we’re feeding that algorithm machine over and over again to retain that high ranking?"

That to me is Marketing 2.0.

Whitmore: That model works hand-in-glove in uber-search environments like a Yahoo!, YouTube, or Google. But in the world that I follow, you've got the IT and tech media really trying to drive their brand, because they don’t want you to go to Google and type in “SOA.” That would be a terrible defeat for them.

Gardner: But, you don’t want to limit yourself to one media company’s input. What these media companies should be doing is the same thing their customers are doing. That is to create the very best possible content on the key subjects of interest of the day, and have them appear high up in the general search ranking. So, when I do a Google search on “SOA,” I’d just as well see an article up there by InfoWorld as one that is from IBM. But either way, if it's good and valuable information, that’s what I’m going to look at.

Whitmore: But as you get closer to, “I've got to make a decision on a reseller or a solution provider or vendor," then I think that I am not going to trust IBM. They are not going to be my goal because they are going to be omitting the stuff about BEA and its competitors.

Gardner: Well, we hope that BEA and its competitors are creating content about their value and that it’s also available. Obviously, buyers will be moving from research, into creating a shortlist, into an RFP process, getting into weighty, detailed discussions, and then ultimately buying negotiations. This Marketing 2.0 approach is completely complementary to a traditional sales, research, and then execution process.

Whitmore: It absolutely is. They can work in parallel, and these IT trade titles and these people that are being rapidly disintermediated need to figure out how to get some of their content to rank well in generic search environments. That brings us back to SEO and the fact that you can subscribe to RSS search results. These people really are getting hammered.

Gardner: We're now leveling the playing field. The best content that is vetted through the algorithmic search process is what’s going to be most prominent. We know that when people do searches, they don’t go more than one or two pages in. Therefore, the IT media, those companies covering IT, need to come up with great content, great columnists, podcasts, RSS, video, whatever it might be, that would show what is voted on as best and vetted.

Whitmore: I have an editorial bias, when I hear the word "content." I think about generic, by-the-pound content. Whitepapers have their place, and product documentation too, but as the 20-somethings and 30-somethings take over the world – and that’s happening – they are not going to accept the same blandness and pseudo-authority that a lot of content has for us.

Gardner: I agree. People need to loosen up, and I've written a number of whitepapers. The way you go about a whitepaper is you do research, you get information, and you do interviews – primary research. And what is an interview? It’s a discussion. Why not just create a great discussion with the experts and put that up, instead of putting it into some sort of a turgid-prose, 80-page tome of which people only read the executive summary?

Why not give the long tail its due, put up a series of five key discussions with the experts you would have interviewed anyway for the whitepaper, let people either read the transcript or glance at the executive summary of each individual interview or discussion, and then pick and choose? To me, that’s just a better way to learn. And it's also a lot easier for the experts as well as the authors. So, it really is a discussion.

There are more young people thinking about community and social networking, and so why not combine all of this into a happy discussion that is also substantive and educates at the same time?

Whitmore: It reflects real people with real attitudes, and not created by the lawyers and the PR people and the conservative forces within companies because that’s simply not going to work. One of my last points questions is, when are we going to see an example of a company relying on "content pyramid" philosophy, and could we prove that they were successful doing so? When are we going to see that?

Gardner: We're seeing dribs and drabs of it. The idea is to look at what’s effective in terms of engagement with your communities. If you can engage your community with a whitepaper from the people doing lead generation, and they get 300 or 400 leads, it’s a success. But when you put something up on YouTube, you get 30,000 to perhaps hundreds of thousands of potential downloads and click-throughs and looks.

The scale is much greater and the cost can be comparable or even lower. You are going to start to see what works in the field. When people recognize that if they are number one or assumed to be in the top several media outlets, they are going to have to be there. Vendors will cultivate the search option too through PR and AR and Investor relations and operate among different channels or distributions of content to reach their end-users and communities.

I can see "search relations (SR)" as another possible definition of people’s approach to this.

Whitmore: That’s a very interesting concept, but from a VP of sales perspective, Dana, I don’t want 30,000 leads. I want the 25 that are in an advanced state of consideration for the product that I sell.

Gardner: Then, you just vet them. You take that 30,000 potential community and bring them down into another level of content that will slough off those who are not interested very much. That’s to say, if they’ll click through and look at a five-minute video, that means there’s mild interest. If they click further down and read a transcript of hear a podcast on a similar topic, but more refined, that shows even more self-selecting and interest.

Then, if they listen to the podcast, you get down to the where it’s a lead generation benefit. That’s where you separate the wheat from the chaff and you get real leads. It's also where the content pyramid works. You need the content to walk them down that path of self-selection.

But, I would rather start with a large universe and work it down, creating brand affinity and relationships with those people, and then find the content and the mechanisms that then bring them to the point where they are ready to sign up for the product or service.

The pyramid is, in that case, inverse – you start wide and you go narrow. But the content creation process should start specific and narrow and then go wide. It has to be two-way discussion. Once you engage the people on a discussion, that’s where you have a myriad of opportunities for bringing them into your business.

Whitmore: Are there examples of people that are prospering with this philosophy?

Gardner: The notion of getting people to a sales-and-marketing activity requires community, affinity, and interest, and you have to lure them in there and then get them to click – whether the click is a download or it’s a lead generation form.

I’d look at some companies that are good at that. I'd again bring up IBM, but I have also noticed that BMC has a very good page, where you can go for information. And this page has got a listing of all sorts of content that has to do with specific values about what they bring their customers.

And they're saying, "Here’s the content that we have created. Here’s content that we found out there that others have created. Here are links to blogs and podcasts that we think are relevant to this. Here’s a download of whitepapers in the traditional marketing literature." It's really just a site or a destination around a topic that’s a subset of their business that people can go to, and then they could get an RSS feed from.

In a sense, BMC is doing their community a service through a knowledge triage around a specific topic that then hopefully will engage the community. So, BMC is a good example. They still have to populate this. People who come back, people who have a subscription to RSS, are going to need something new and fresh coming down their pipe every week or two.

But, they're creating this funnel, qualifying people, and then hopefully getting them into an engagement. It therefore requires these companies to become publishers themselves.

Whitmore: But, most companies don’t have the headcount for that.

Gardner: Why not?

Whitmore: Because usually the executives are going to say, “If I had any spare headcount, I'm going to put it in sales and field marketing and they're not going to get into the publishing business.” They might subcontract it out, but I don’t think they're going to bring it in-house. I’d be very surprised.

Gardner: I was thinking the same thing when I started my business, Sam. I thought that I would be one of those subcontractors – and I am. I basically help people figure out how to make content distributed and keep it credible and valuable. But, I'm seeing more and more companies are actually saying, “We're going to create a studio – a video studio -- inside of our company.”

Whitmore: What kinds of companies?

Gardner: Well, Red Hat, for example, recently had a job posting that they are looking for someone who has experience as a video producer. And they are going to start doing this in house, I suspect. I expect to see the same thing from other companies.

Whitmore: That’s interesting, because they live in a viral world. And Apple’s the same way.

Gardner: Their goal is to get people to download the code that then leads to support and maintenance. That interests business.

It will be a mixture. Some companies aren't going to be interested in being in the content business. They’ll outsource the whole thing. Other companies will say, “Listen, it just makes more sense for us to make this a core competency. We'll still use traditional media, but we're going to create our own media too.”

Let’s think about the numbers here. Let’s say you're a $5 billion-a-year company, revenue-wise, in the IT space. You and I have worked for large IT publications. What was the total editorial budget?

Whitmore: Back in my day? It was at least $1 million.

Gardner: Let’s say you could create an entire weekly news publication that’s the best in its field for a couple of million a year, and you're a $5 billion company. Wouldn’t you throw $750,000 or $1 million at a core competency of content creation, and perhaps soon dominate your space for content, and dominate all of the keyword searches because you're putting up the best, most interesting content?

Whitmore: If I had strong enough leadership, I would.

Gardner: If I were spending five times that much on just advertising -- and half of that advertising was wasted, but I didn’t know which half it was -- wouldn’t I take some of that money and devote it to my own content creation competencies? This is no-brainer. Any company, after a certain critical mass of size and revenue, should look at -- among their marketing spend and advertising spend -- their content creation spend.

Whitmore: Being a student of media, I have observed a collective lack of will across most segments most of the time. When you see the exceptions to this, that’s when you see a feature story. That’s when you see a Q&A. The journalists are out there beating the bushes to find people with spines who do something other than what's expected of them.

Gardner: You know as a former journalist -- and I should say you're still a journalist in what you're doing -- when you beat the bushes, there are always stories out there. There is another thing that's interesting, there's something called News@Cisco, and Cisco Systems created it like a newsroom.

Whitmore: I love that site. That is the absolute archetype for vendor publishing, as far as I'm concerned.

Gardner: There it is. You can go in and say, “We want to talk to you. We're just fine in the field -- whether it’s a sales person, an engineer, another blogger, an evangelist -- what's news and interesting and happening in the communities that affect Cisco? Let’s talk about it. Let’s publish it.” There's plenty of great stuff in there.

Whitmore: Well, that’s a good place to send people. It’s newsroom.cisco.com I believe or is it news.cisco.com?

Gardner: Or you could just go to Google and type News at Cisco, right? I mean, why even think about the site? You go to the search engine. It’s the same way that your clients and prospects are going to find your stuff.

Whitmore: Well, I guess I’m old school and I never realized it. I tried to think of the destination but you're right, I don’t need to, and that sort of makes your point.

Gardner: You can call it lazy but, darn it, it works, it’s productive. If you use search, not just for search, but for navigation, that’s just another reason to look at that as a place you have to be.

Well, we've been having an interesting discussion. I want to thank you Sam, but we're out of time. We have covered some Marketing 2.0, maybe even some press release 2.0. I've been tracking what folks like Shift and Edelman and some of these other firms are doing, where they create a whole slew of rich content that becomes available when a press release or a news event happens, I think it’s very similar thinking to what we've been describing.

Whitmore: That’s right, a content stack. We probably don’t have the time to get into that, but here are the two things, the two litmus tests, that I would point to regarding this social media press-release thing. Number one, who are the vendors using this approach and do they continue to use it once they have started? Do they stick with it?

The other thing is, are journalists publicly saying, "This helps me do my job better and I'm inclined to write longer or richer pieces when I'm communicated to in this new way?" When I start to see critical mass in both of those areas, then we’ll know that the trend is taking hold. Until we see that, I'm still skeptical

Gardner: Well, I would offer one more opportunity for how it could be gauged as a return on investment, and that would be when you do a search on a company. If any of those pieces of press release 2.0 content actually start rising up, then it’s served its purpose too.

Whitmore: You've done it to me again. I didn’t think of "search" first.

Gardner: "Search" -- it’s the new media.

Whitmore: Even though I started with it in this podcast interestingly enough.

Gardner: Search and RSS, yeah.

Whitmore: That’s right. Well, Dana, I enjoyed it as always. It’s great to talk with you.

Gardner: Right, we've been talking here today with Sam Whitmore. He is the founder and editor of Sam Whitmore’s Media Survey at mediasurvey.com. or, heck, just go to Google and type in "Media Survey" or "Sam Whitmore," and you’ll get there.

This is Dana Gardner, principal analyst at Interarbor Solutions, and you have been listening to BriefingsDirect. Thanks.

Listen to the podcast here. Produced as a courtesy of Interarbor Solutions: analysis, consulting and rich new-media content production.

If any of our listeners are interested in learning more about BriefingsDirect B2B informational podcasts or to become a sponsor of this or other B2B podcasts, please fill free to contact Interarbor Solutions at 603-528-2435.

Transcript of Dana Gardner’s Podcast on Marketing 2.0 with Sam Whitmore. Copyright Interarbor Solutions, LLC, 2005-2007. All rights reserved.

Sunday, July 08, 2007

Transcript of BriefingsDirect Podcast on the Emergence of 'Integration-as-a-Service' for SOA

Edited transcript of BriefingsDirect[tm/sm] podcast with Dana Gardner, recorded June 20, 2007.

Listen to the podcast here. Podcast sponsor: Cape Clear Software.

Dana Gardner: Hi, this is Dana Gardner, principal analyst at Interarbor Solutions, and you're listening to a sponsored BriefingsDirect podcast. Today’s discussion is about an intriguing concept, that of hosted Services Oriented Architecture (SOA), looking at integration as functionality and process that can be accessed on demand, moved off of your enterprise infrastructure, and onto someone else’s. This, I suppose, looks at services and compositing-as-a-service as well.

Here to explain these concepts and how they’re being used practically today -- and the implications for the future -- is Annrai O'Toole, CEO of Cape Clear Software. Welcome back to the show, Annrai.

Annrai O'Toole: Thanks, Dana.

Gardner: The notions of integration and hosting have been bounced around for a while. I recall a company named Grand Central that got quite a bit of funding and had a 1,001 different ways of mixing together services, components, and objects. Maybe it was a little ahead of its time. Why you think that the time is right for something like hosted integration?

O'Toole: You’re right. It is a somewhat back-to-the-future position, and clearly a lot of the ideas we’re talking about are things that Grand Central spoke about -- it must be six years ago. A couple of factors are driving this. First, it’s the whole technology maturity thing. Six or seven years ago, the standards around Web services were in their infancy, and people didn’t have a lot of experience with them. Because they were young, unproven, untested, and lacking in key bits of functionality, people didn’t really want to go there. Technology is one element of it, but there are a few more important elements driving it as well.

One is a secular trend toward simplicity and flexibility. At some levels, this has been driven by teams through virtualization. Storage and processing power are being very quickly virtualized. Applications are being virtualized, with software-as-a-service on demand. There is a long-term shift by customers, who are saying, “We don’t want to own complex infrastructure anymore. We’ve been there, and done that. We want something else.”

Gardner: So, you’re saying that enterprises have gotten a whiff of the notion that they can have complexity removed? They can have consolidation and cost reduction at the same time, and they kind of like that?

O'Toole: They do like that, and they’re willing to pay for it. They’re paying on a subscription basis, but we see many people not wanting to own, or get involved in, large initiatives, rolling out complexity. Before I got on this call, I did a quick refresh of some of the Websites. If you look at the SOA offerings from Oracle, IBM and BEA, they range from a minimum of 13 products to the top of the range, with IBM at 31 products. These are 31 simple products with easy to remember names like “IBM Tivoli Composite Application Manager for WebSphere.” People don’t want to own this stuff anymore.

I’ll give you another data point on the complexity that’s involved here. Recently, we looked at some RFPs. We had an RFP come in – and this isn’t all that unusual – from someone looking to do a big SOA initiative. It was – and I’m not joking -- a 111-page RFP.

Gardner: RFP is a request for proposal. That’s how companies go out and say, “We would like to start a bidding process around that acquisition of a large IT capability of some kind.”

O'Toole: Customers look at the choices available to them, and say, “Do we want to do all this big SOA integration on our own by buying these complex things, or are we prepared to look at alternatives? And, do those alternatives have any reality?” They do, and many companies are shying away from these big, complex initiatives.

Gardner: We’re certainly seeing that. Companies readily grok the notion that SOA is designed to make heterogeneity an asset rather than a liability. If that’s the case, then they certainly seem less interested in going to a single large stack, single portfolio, or even platform approach to that. So, that’s clearly in the market. On the other hand, they want this stuff to work, and they don’t want to be caught with their pants down in six months or a year, due to reliability or performance issues. Perhaps you could help take us to the notion of hosted integration from the perspective of “Does it work?”

O'Toole: This is a critical point. You can sit in a room with a bunch of executives, both from the business and IT segments and, say, “Hosted integration is a good idea,” and they’ll know that. We’ve got some proof points around it. Most notably, one of our marquee customers in the software-as-a-service base is Workday. The PeopleSoft founders got together to rebuild an ERP application, but this time on a hosted basis.

Gardner: Dave Duffield was the founder. Right?

O'Toole: Yes. Today they’re doing hosted integration, and, if you go to the Workday site, you can navigate into what they call the Web services networks. You can see the type of services that they are hosting on behalf of their customers. The whole idea is that they’re taking the integration burden off the customers, so that the customers can integrate their applications with Workday, without having to do any work on the customer end of the connection.

This is a huge portion of the unfolding software-as-a-service story. All application trends, be they 10 years ago when it was big ERP or now with software-as-a-service, have to address the integration problem, because none of these large applications live in isolation.

Workday has taken a novel approach to that around a hosted integration solution, and that works. They have large customers today. They’re handling integrations for their customers and hosting integration into things like ADP. Workday handles the integration between the customer’s data and ADP, which is actually doing the payroll and running checks, making sure that check runs get done at the end of the month and that people get paid. So, that’s a pretty important integration service to be hosting, because if it doesn’t work, and if it’s not reliable, then people don’t get paid.

Gardner: That tends to be top-of-mind for many people.

O'Toole: These aren’t trivial integrations. So, hosting is a big thing.

Gardner: If I could just pause you for a moment. As I understand it, Workday wanted to create some on-demand business applications, but in order for them to create a subscription business model around business applications, they had to conquer this integration issue in order for their application to be accepted. Is that correct?

O'Toole: That’s correct. If you think about it, the work they’re doing is all around handling human resources, the human resources (HR) application. That’s somewhat different from the type of application that SalesForce offers. SalesForce is a stand-alone box. You can use Salesforce.com to do customer relationship management, and it’s not essential that it integrate with other aspects of your business.

HR is very different. It must be integrated with your existing payroll systems, and must be integrated with third parties, such as people who manage benefits or people like ADP, which actually does payroll processing. So, it’s not possible to roll out an HR solution with Workday, unless you’ve got the integration problem solved.

Gardner: Sure, companies use an ecology of providers to help them support their employees in a variety of ways, whether it’s benefits, insurance, or future earnings and stock trading, and a whole bevy of different services.

O'Toole: Exactly. It’s a very complex ecosystem, and integration is one of the things that’s a sine qua non. They don’t have a business, unless they have the integration problem licked. So, it’s very different from CRM. And, as Salesforce.com expands its footprint, it too is running into this integration problem. They have now realized that they’ve got to offer better integration solutions for their customers as well, and they are working their way through those issues too.

As we wind the clock forward, we’re going to see more customers wanting to use on-demand style applications, and wanting integration to be solved in an on-demand way. They don’t want to build all these integrations again. You can also take this one step further. We’ve seen a lot of our enterprise customers, as they think about rolling out big SOA initiatives, are saying, “Maybe, we should really model ourselves as a mini software-as-a-service to our own internal organizations.”

Large enterprise IT departments are essentially rolling out hosted solutions and integrations. We’ve got many examples. We cite JP Morgan pretty frequently as a large enterprise customer that is hosting integrations centrally inside JP Morgan, so that it’s easy for different divisions and some external customers to access application functionality. The point we would make about our vision of how this hosted integration goes forward is that it’s not just for software-as-a-service companies like Workday or SalesForce. This is actually a model that’s good for internal IT as well.

Gardner: So, if we are an internal IT department moving towards SOA, and we access various services, assets and resources -- some internal, some external, some to partnerships -- we’re going to find ourselves in the role of doing integrations as a service anyway. That’s their point. If that’s going to be the case, then why not look for various other organizations that can follow that same beat of logic, and therefore you’ll have a federation approach toward integration as a service.

O'Toole: Another way to think about it is that if we are going to virtualize storage and processing power, we want to virtualize integration. It’s not something that is being rebuilt again and again and again by different companies or different departments within different companies. Let’s really start to move to a hosted model for us, and, as you say, these can be federated in a very coherent way. What’s new now is that the underlying technologies and standards can actually support that model. So, while this model might have been a pipe dream five or six years ago, today it’s reality, and the technologies and capabilities are there to do it.

Gardner: It seems to me that you are offering these enterprises the opportunity to get out of being in the middleware business, or to at least reduce the role that middleware plays for them as a provider and a host themselves. They can offload more of the function that middleware plays.

O'Toole: One of the things that we discovered in our interaction with Workday was that there is a neat concept that we can borrow from the software-as-a-service companies, and that’s a notion of multi-tenanting. You’ll hear us talk about more multi-tenanted integration, where I can take standard integrations -- such as to Workday, ADP, SAP, or SalesForce – and host those core integrations in a central spot. Once I’ve got that core integration built, I can make small changes to make it unique for all the different people who want it.

Everybody will have exactly the same data formats, but I take that core thing and then allow many slight variations that co-exist, and you get this notion of multi-tenanted integration. As I said, you’ll hear us talk about it more, and this is another piece of the puzzle that starts to make this a better, different way for companies to get out of the middleware business, or at least radically reduce and centralize all that’s happening in one virtual spot, and not scattered everywhere.

Gardner: Just to step back a moment. We’re not just talking about loosely coupled interoperability here, right? We’re talking about integration across a variety of different needs that organizations would have, depending on their unique legacy, applications, and platform environments. So, when we talk about integration and hosting, we are going to give them a quite a long check list. Is this is going to be the binary, object, and component level, or we are just talking loosely coupled XML and mashup types of activities, or all of the above? How do we make this into a list that could be managed from the provider perspective as well as from the customer’s perspective?

O'Toole: We’ve seen two fundamental preferences here, and there are two options for what you want to host. The first option we would broadly categorize as very loosely coupled data transformation. A lot of the things that people need to solve in terms of integration problems are really data transformation. How do I take payroll information from one provider, transform it, and send it down to another provider? Most people can deal with that. Most people can wrap their head around how that can be done in a hosted manner. What’s involved there is that it’s loosely coupled and it’s data. It’s ultimately some kind of XML or it gets converted into XML somewhere along the line.

The next thing is a step up from that. Now that I can get information between these things, do I want to have some orchestrations or some kind of inter-company business processes? It’s not just getting data from A to B, but it’s, “I want to get data from A to B, and then I want to call C, and when C has completed its job, then I want to call D, and when that’s complete, the whole thing is done.”

That’s next level of complexity, and it involves a more sophisticated approach. But, both of them are possible and both are in operation today. As far as what customers are going to go for, I think they’ll be happy to do data transformation initially, and when that’s really working for them, they might be prepared to take the next step and host business processes in the cloud.

Gardner: I suppose another trend in the field these days, Annrai, is that the very notion of an application is up for grabs. We used to have applications as packaged applications of functionality, and they had logic, data, and presentation, but we are moving away from that.

It’s coming down more to who understands vertical business issues and can assemble components and assets and services to create advantage, efficiency, and productivity benefit by combining human knowledge, understanding, and relationships. That’s different than just plopping down an application and then rallying everyone around it to work within its requirements and definitions of productivity. It seems to me that what you are doing, even if it’s on the loosely coupled basis alone, is allowing for that redefinition of business applications and processes to accelerate as a catalyst to that. Do you agree?

O'Toole: Absolutely. We’re already well past the definition of applications as monolithic, stand-alone entities, and we are already into a more federated, loosely coupled environment. Look at the things that SalesForce is trying to do, for example, with AppExchange, and their desire to host more and different applications, but all in the same SalesForce portal.

You’re going to see that model applied in a very generic way across a whole range of different applications, and it’s really going to break down the barriers between applications. In some sense, it’s taking mashups to the next logical conclusion. That process has already started. We’ve already seen the first inklings that it’s coming to every large enterprise on the planet over the next several years. The alternatives to it just don’t make economic sense anymore.

Gardner: It could happen to these enterprises, whether they want it to or not. The line-of-business people and those who are aggressive about seeking out productivity on their own are going to do that.

O'Toole: A good analogy is what really drove client-server or the Internet as big computing waves. The line-of-business people could sit at a desktop and see something in action. You had color, and it wasn’t a green-screen mainframe application, and you could get them tailored really quickly. Business people got that very readily.

Gardner: They really increased the universe of participants in computing.

O'Toole: Correct. With the Internet, you could show people a browser and they got it really quickly. For the longest time, a lot of concepts around SOA have been inexplicable. You can’t explain them to a business person. You think you might get there, but then you start talking about governance and you are just down the weeds. You can’t sit them at a laptop and show them SOA, but you can sit down and show them mashups. You can show them hosted applications. I believe that you can even show them hosted integrations.

We can show our customers ADP runs, on which they’d have to do nothing in terms of getting them to work. You can show those to business people, and they get it. That’s what’s changing the definition of what an application is, because business people can actually see these mashups and all the stuff running for themselves, and they say, “This is really interesting. Now, I know what this stuff is all about.”

Gardner: You’ve mentioned SalesForce several times, and you’ve mentioned Workday. Is there going to be an opportunity for other types of organizations? I’m thinking about Amazon, Google, and Microsoft recognizing that there’s an opportunity for them to come in and provide more subscription-based services, these loosely coupled integration points and mashup points.

Is that how you see this evolving, that there will be a handful of large generic players? Or, will this be something that needs to be done on a more specific basis closer to the individual organizations, closer to individual departments, or perhaps both. Will we have a grassroots ecology of small providers as well as some large mega providers?

O'Toole: Yeah, that’s a very interesting question. I don’t have the answer, but there are a few trends that you can see. Undeniably, a lot of the bigger players are actively trying to muscle into this space already, Amazon, in particular, with their accessories stuff. They’re great. So, you’re going to see more of that. However, the other people who are going to make a huge contribution are the whole open-source community.

Over the next several years we’re going see a different set of development tools emerge around wikis. I was looking at some of this QEDWiki stuff from IBM and some from Oracle, and I think you are going to start to see a different way for people to build enterprise applications along enterprise mashup sever concepts. That hasn’t really begun yet.

There are leaves blowing in the wind, but there’s nothing concrete there just yet. If we conquer that one, then that’s going to put really flexible composite application construction into the hand of every size organization. That means we wouldn’t end up with this thing owned by just the big players, such as, “You are just going to get what Amazon wants to give you and nothing else.” It will create a new world for organizations of different shapes and sizes to have easy-to-use tools to build their own stuff.

Gardner: So, perhaps it will be a very fertile period, in which the number of people that can participate in development – who have a role in how to exploit information technology for their business purposes – expands. They don’t have to go through a keyhole, pushing requirements in and waiting for something come back through the door six months later. We will increase the number of people that can directly participate in shaping how IT helps them.

At the same time, we’re also compressing the time it takes for them to recognize some value from this. That is to say, if they can start doing mashups, if they can relate their knowledge of business issues and problems directly into a hosted environment or mashup interface of some kind, then we increase the number of people, but we compress the time before those people can enjoy the benefits of their labor.

That sounds like a very powerful combination that will -- perhaps even more than what we saw in client-server and Web browsing -- accelerate adoption and drive people to want to have a role in this. This goes especially for the younger people today who are used to driving their own destiny online.

O'Toole: As the Web 2.0 generation gets into the enterprise, they’re going to have a very different view of how things should be done. They want it done the way that they have experienced this medium as teenagers. They’ll say, “What do you mean you can’t do it the way I want to do it?” I certainly hope that that’s the way it turns out, because we are just about due for another major innovation in the app development life-cycle.

Gardner: For some of these interesting possibilities to occur, we also have to get back to the pragmatic notion that it needs to make business sense. For an organization like Workday, SalesForce, or Amazon, given the resources that they are going to need to pull this off, there’s going to be a lot of translation and semantic traffic, as you get close to the orchestration that you described. A series of events has to happen in a certain of pattern and be published and subscribed.

A complexity comes up about different requirements being fired off before the other set can be attempted. They’re going to have to have quite a bit of infrastructure and resources. Is there a business model that makes sense for them be able to fund their needs, provide the reliability and speed that people are accustomed to, and still make a profit? How does this work in dollars and cents terms?

O'Toole: There are two aspects to this. As we practice this multi-tenanted integration, what that’s going to enable us to do is dramatically driving down the cost of integration. If I am a customer in a large enterprise, on Amazon, or whatever, and I go and build an integration, I’ve got to build it uniquely for every single app and version of the app that it touches. So, I’ve got to kit out this huge infrastructure and code this unique piece of integration. That’s really expensive.

If we can move away from that to a different infrastructure, even though it’s still a pretty complex infrastructure, what it supports is the notion of building the integration once, and then making minor modifications to customize it for lots of different users. That can amortize that infrastructure cost over many different customers. If I can move to that model, that changes the economics for the provider. It enables them to offer more flexible pricing models to their customers.

The obvious ones are in the subscription-based models for the integrations that they host for you. That’s how I see the economics of it working. I really believe that because of the innovations that have been taking place in both the standards and in the underlying infrastructure for SOA around the ESBs, this multi-tenanted integration is here and is going to be a big driver in the current equation.

Gardner: So, at a basic level, we’re talking the 80-20 rule again, where 80 percent of the functionality is recurring and common. Its reuse can be paid for over a period of time, and then the 20 percent is dealt with case by case, and that can be managed as a cost, because of the efficiencies of the other 80 percent.

O'Toole: Correct.

Gardner: What is it about the technologies today that’s going to make that possible? Obviously, infrastructure, virtualization, and the storage prices have come down significantly. I suppose there’s another issue we haven’t talked about, and that’s the ability to get the highly specialized people to do these things. Each company, if they try to hire them individually to build this, might find, despite their great intentions and ability to invest, that they just can’t find the people.

Therefore, they might be forced to recognize that, given the scarcity of resources, there has to be a more cooperative approach. Let’s let those skilled people who are fundamentally ready to attempt these things do it, but more in a more centralized way. Then, we can all enjoy that common 80 percent benefit. Two questions. One, does it make sense, given the human resources issues, that we centralize? And is that another factor in the cost equation?

O'Toole: One business that’s there waiting to be created is a universal hosting business for integration, pretty much along the lines of what Grand Central had in mind.

Gardner: And what Google has done when it comes to search. No one can touch them, because of their expertise in that.

O'Toole: It’s absolutely possible for someone to own the data centers, and the expertise to offer this virtualized integration. Someone – in fact several people -- are going to try to own that over time. For a lot of small- to medium-sized businesses, that’s going to be hugely attractive. I can well imagine this small- to medium-sized business coming along and seeing a palette of available hosted integration – from SalesForce to all the different desktop CRM applications and SAP integration -- sitting out there, ready for them. If it doesn’t exactly support what they need, there’s a simple model, where they can send in the data format, state the business processes they need to support, and they’ll get a quote back saying, “This is what it’s going to cost you on a monthly basis.” I see that as a very viable option.

Gardner: Okay. If I’m an enterprise, and I’m intrigued by some of these notions and believe that this is the future, although I can’t readily predict at what pace and where things will happen, how do I get started? How should I rationalize this to my CFO? Is there a formula in terms of, “We can reduce our capital expenditures by blank percent, but we’re going to have to increase our subscription payments or recurring predictable expenditures by another?” How do we help companies understand how to get started, and then how to explain why this would make sense financially? Are they going to be paying by transaction, by user, by application, by service? It’s pretty hard to put a meter on this. Where do you attach the meter on how to build for these things?

O'Toole: They’re all good questions, so let me break them off one by one. For a lot of our enterprise customers, what we say to get them started is that as they think about their SOA initiatives and building internal SOA applications, they should be planning, building, and hosting the integration to those services at the same time. What we say to them is, “Okay, this great hosted integration vision doesn’t quite exist today, but you can create a mini version of it for yourself inside your own organization. So, when you build a service that you’re going to offer to either internal customers or to external ones, don’t only build up service, but find out who’s going to need to use that service, and build the integrations for them.

That gets them going down a path, where they’re at least containing all their own internal integrations in one spot. Maybe some time in the future, they’ll be able to hand that off to someone else, but that’s another day’s work. So we say to them, “That’s a good starting point.”

Alternatively, if they’re a smaller businesses, and they’re not interested in doing SOA things, we then encourage them to look at companies like SalesForce and Workday and see how they are approaching these integration problems.

Gardner: Go at it through the software-as-a-service applications approach.

O'Toole: Exactly. Go down that road. So, there are two starting paths, depending on whether you’re going to build stuff yourself or you don’t want to be in the development business at all.

In terms of cost justification and how you price for this, right now I don’t think you can charge on a per transaction basis. Our thinking is that you’re still going to charge for this just in terms of the overall volume that you need for CPU-based pricing, because we don’t think that pricing them on an individual transaction basis or an individual integration point basis make sense. People don’t really want to go there yet. We just say, “Okay, the services you’re going to need to create are going to need two or four CPUs, so that bounds your price and you can either pay on a subscription base or you can do it a one-off payment.”

Gardner: Does the per-employee model work in this respect?

O'Toole: No. Certainly, we haven’t seen them working well, because for most organizations, they start off doing something pretty simple that isn’t critical to the business. So, you can’t turn around and say, “You are JP Morgan. You’ve got 150,000 employees, so this simple thing is going to cost you ... blah.” This is still an evolving area, but I think the point that we’d make is: this is being done now, so whether you’re doing it on an internal basis or you’re someone like Workday and you are doing this on a pure hosted basis, this is the model.

People are already going with this model now, and they’re increasingly not going with the model of buying complex SOA suites and three years worth consulting. They’re adopting approaches that are much more on-demand and hosted from the get go. So, the future is now. This stuff is happening at the moment as we speak.

Gardner: It’s very exciting. As people process the notion of SOA and recognize the benefits, particularly the small- and medium-sized businesses, these light bulbs start to go off, and things fall into place.

I’m glad we’ve had a chance to explore this a little more deeply. It’s a very interesting adjunct to the SOA discussion, as well as that discussion around how applications, by definition, are changing. We might soon have some examples of how the cost benefits are real and compelling.

So, thank you, Annrai, for joining us in this discussion about hosted SOA, hosted integration and interoperability, and eventually getting to the notion of services compositing as a service.

This is Dana Gardner, principal analyst at Interarbor Solutions. We’ve been joined by Annrai O'Toole, CEO of Cape Clear Software. Any parting thoughts, Annrai?

O'Toole: No, I think I’ve said all that I needed to say on this one. So, as usual, it’s a pleasure, thanks for having me on the show.

Gardner: Sure. I think it’s a subject we should probably revisit every six months or so, because it’s bound to have some twists and turns in the journey, no doubt. Thanks for listening.

Listen to the podcast here. Podcast sponsor: Cape Clear Software.

Transcript of Dana Gardner’s BriefingsDirect podcast on the emergence of integration as a service for SOA. Copyright Interarbor Solutions, LLC, 2005-2007. All rights reserved.