Wednesday, October 03, 2007

Analysts Debate IT Management and Monitoring Needs for the SOA Era

Edited transcript of SOA management trends and analysis discussion with Interarbor Solution's Dana Gardner and ZapThink's Jason Bloomberg, recorded before a live audience at the Harvard Club of Boston on Sept.14, 2007.

Listen to the podcast here. Sponsor: Tidal Software.

Welcome to a special BriefingsDirect presentation, an IT industry analyst panel podcast created before a live audience at the Harvard Club of Boston. Our sponsored discussion centers on the role of management on Service Oriented Architecture (SOA) use and operations.

Our panelists consist of Jason Bloomberg, managing partner and senior analyst at ZapThink, and Dana Gardner, president and principal analyst at Interarbor Solutions. Moderating the discussion is Martin Milani, chief technology officer at Tidal Software. The in-depth presentations from the analysts are followed by questions from the live audience.

Listen as these SOA experts explore how IT management will evolve in the world of service-based applications. They delve into issues of new standards, how SOA demands that performance management and change management augment and elevate the role of systems management, and how the integrity of services delivery requires a deep and wide approach to management in total across a services lifecycle.

Now, let's hear from our moderator, Tidal Software's CTO Martin Milani.

Martin Milani: Thank you. I guess it's no secret to anyone that SOA has finally arrived, and that SOA deployments are increasing rapidly -- and far more mission critically -- in the past couple of years. It's one of the fastest-growing segments of the software industry as a whole.

So, with that I want to see if the analysts could share some of your thoughts on the industry, and then some of the challenges with SOA in general. Jason?

Jason Bloomberg: Well, thanks a lot, Martin. It’s great to be here. I’d like to start with the definition of SOA for a level-set. SOA is essentially an approach to organizing IT resources to better meet the changing needs of the business. Fundamentally, it’s an architectural approach, a set of best practices, for leveraging IT in a flexible way.

The core business motivation for SOA in most organizations is business agility, to be able to respond to changing business requirements and to leverage change for competitive advantage as well. As a result, one of the key challenges, if you are looking to architect your IT organization in terms of flexible services to meet this business agility benefit, is being able to create, manage and evolve these services over time.

One of the core challenges we’ll be talking about today is loose coupling, where you want to build services that you can control and manage independently of the consumers of those services. That’s a key part of the business agility benefit of SOA. That’s how you would actually achieve business agility in practice.

In turn, the way you achieve loose coupling is through management, and that’s something we’ll be talking about as well. Management then becomes the critical enabler for loose coupling, which is the critical enabler for business agility. That’s how it all fits together.

Milani: Dana?

Dana Gardner: Thanks Martin, and thanks to Tidal Software. I agree with Jason. I think also that SOA has some catalytic implications for companies that begin a journey toward this architecture. It can foster change, and perhaps also benefit agility, but if they have not done their homework, if they are an organization that’s very much in silos, both in technology as well as practices, there could be a lot of risk involved.

There's going to be a period of time, where people look at SOA and find that the opportunities are going to depend on how they’ve done their preparation. We've had a lot of work toward service enablement of data, cleansing data, and putting it into a form in which it can be delivered across multiple applications and processes.

We’ve seen companies begin their journey toward better integration that’s open, that fosters interoperability, and we’ve seen management, but mostly on the level of "speeds and feeds," of how to make sure that the trains run on time, when it comes to delivery of data, whether transactions are going to be fulfilled in a timely manner and if application performance is maintained.

But management for SOA needs to go a step further and take into consideration many systems and interdependencies -- perhaps involving services coming from outside the organizational boundaries, be it partners across the supply chain, even hosting organizations and commercial-services providers.

So management is going to be, as a topic, very important to SOA in a traditional sense, but also management in a new sense. If SOA benefits technology, as well as the business goals and objectives and agility, then business management, IT management, and SOA management need to have some commonality.

Relying on individual people -- "wetware," if you will -- to bind these together and to hand off one to another isn’t going to scale. It’s going to be expensive. So I'm hoping that management is propelled through SOA into a more advanced concept that bridges a gap between organizational management, IT systems management, and the management of services themselves.

Milani: It sounds like SOA is affecting the application assistance management landscape as we know it. Would you agree with that?

Bloomberg: It definitely is. The key thing to keep in mind about SOA in this context is that services are an abstraction. That is, they help to provide flexibility to the business, but they don’t actually simplify the underlying technology. Many architects are a bit surprised by this, that SOA doesn't make their jobs easier or make the job of IT any easier. If anything, it’s more complex. There's more of a challenge for IT to meet the business requirements for flexible, agile, composable, and loosely coupled services. As a result, you have this need for the IT organization to rise to the challenge of services.

This is especially true in the management area because the services essentially have to behave as advertised. These are contracted interfaces to various application functionality of data across the organization. They have to do what they're supposed to do.

That's the core of the loose coupling. So, any consumer can come along and leverage a service, and it does what it is supposed to do. If there is a problem with the service, then it’s not loosely coupled. The core challenge is essentially saying, "Well, we want to make sure these services do what they're supposed to do." That’s fundamentally a management challenge.

Gardner: The performance of applications has been problematic, particularly the transition from mainframe to client-server and then to the Web. Waiting for an application performance issue to crop up and then chasing down the core problem has unfortunately been the norm. I'm not sure that that’s going to continue to be possible.

It’s never been the preferred way -- firefighting as the means to application performance. When you take this to the step of decoupled applications or services, you recognize that so many different systems are now supporting processes. It's not just a single model of a stack of support and platform beneath a specific application. You need to start working toward a predictive, analytical approach to the management of performance.

The implications for those dealing with applications is that you are going to service-enable those applications, decouple, and decompose them into essential core services, and then repurpose them by cross-compositing processes. What is that going to do to you, if you think you are going to go to firefighting mode when you have performance issues? It’s simply not going to work.

You need to rethink management and support, and you need to try to get proactive in how systems will be supported to head off performance issues and create insurance policies against blackouts, brownouts or other snafus. SOA is really a catalyst toward a different approach to the management and support of the services.

Bloomberg: That’s an important point. In the context of SOA, we're thinking in terms of business processes that are implemented by composing services. What’s happening here is that the definition of an application is beginning to shift, especially from the perspective of the business.

The business doesn’t want to think of an application as some big huge piece of software that costs them a lot of money and introduces a lot of risk, that doesn’t directly meet business needs, that’s not what they are asking for, but is what they’ve had to buy because it's what was available.

In the context of SOA, though, an application is what you do with the services. You compose them into composite applications or service-oriented business applications that implement processes in a flexible way to meet the needs of the business as they continue to evolve.

From the business perspective, this notion of application is whatever you are applying the services to. The root word of "application" is to apply something, and, as a result, the management challenge, especially the application management challenge, in particular, is an entirely different set of challenges.

It’s not saying, "Well I have this big enterprise application, which is some monolithic suite. I need to manage that." If you have those, you still need to manage those. So, that’s not going away, but SOA introduces this whole new concept of flexible, composable business process-based applications, which now have to be managed as compositions of services.

Services are obstructing functionality across various systems and various applications, and the management challenge becomes immensely more complex. If anything stops working, then the whole thing falls apart. Management now becomes even more important. You can’t just have a firefighting approach, and when there's a problem, you send an alert to the poor systems administrator, who has to wake up in the middle of the night to fix it. That just not going to cut it anymore.

Gardner: One more factor in this is that we are not just talking about SOA in a vacuum. We're not just moving toward SOA or services-enablement. We are also dealing with application modernization, pulling them off older more expensive platforms and putting them on standards-based or commodity platforms. We're talking about virtualization where we are going to create containers and try to get higher utilization and efficiency rates off of our underlying investment for the support of these services.

We're talking also about business continuity issues where we are going to try to have replication of services in the event of disruptions, be it natural disasters or otherwise.

So when you think about SOA, it’s happening at a time when there are many other IT mega trends under way, and the management needs to be considered within that context as well.

Milani: Obviously, SOA is a disruptive event. There is a radical change in the architecture of the applications, as we know them. There are far more points of failure, far more pieces of the application that could reside across separate systems, separate technologies and perhaps across enterprise silos.

So the traditional management approach has been used for the past 15-20 years, and is very client-server centric. Can these traditional monitoring and management approaches handle the SOA deployments of today and tomorrow? Dana?

Gardner: You're not going to throw out the baby with the bath water. You're going to continue to leverage your previous investments. Just as we’ve seen with storage and application deployment strategies, it’s about elevating to a higher abstraction -- perhaps through metadata, perhaps through standards -- so that you can increase outputs qualitatively and quantitatively from your systems.

Therefore, you can offer a management overview, whether it’s a dashboard, or even the equivalent of screen scraping one management view with another. At least, you can assimilate them in a such way that you can start to get a total view, a comprehensive view of systems.

I do think that you are going to continue to leverage existing management approaches. I'm sure that the older-line management vendors are going to continue to augment and support more advanced processes or more complex interactions between elements of infrastructure and applications.

It needs to be looked at not just as management of discrete parts, not just trees within the forest that each stand on their own -- but the forest itself. I'd like to see that get to the point where it becomes something that can be assimilated further than just the systems -- with the business objectives as well.

Furthermore, one of the things that’s been unfortunate about systems management up until now is that it tends to be binary -- on or off, green- or red-light, it’s working or not working. SOA is going to require more of a blended approach to management.

That is to say, you are going to want to tune how your applications and services are delivered, perhaps to live up to service level agreements, or perhaps so that you can give priority to certain data, application, or services streams over others. You're going want to be able to fine tune, rather than just throw a switch on or off. That’s going to require a different level of management. It’s really about leveraging the old, finding ways to assimilate and then put a more operator- or policy-driven -- perhaps even automated -- approach on top of it.

Bloomberg: It's interesting that you say SOA is disruptive, because SOA is disruptive -- but not in the way you might think. It’s not really that disruptive on the technology side. In fact, from the technology perspective, SOA helps leverage existing technologies. It has a heterogeneity story that says, "Well, you don’t have to replace. You can leave and abstract as needed."

So, if SOA is architected properly, it doesn’t have to be disruptive on the technology side, but it is most definitely disruptive on the organizational and political-cultural side, on the human side, because what SOA tells the IT shop in particular, is that we can’t do business as usual.

We can’t simply have a siloed approach -- here are the operations people that run this, here are the Windows people that do this, here are the application people that do this. That’s not going to work anymore. In order to think about services properly and to get the benefit of SOA at all, you have to think in a more cross-functional, comprehensive, architected, best-practices way about how IT does what it's supposed to do. How IT is going to meet with the needs of the business is shifting in a broad way, and that’s how SOA is disruptive.

When it comes time to think about management at all levels -- whether it’s networks, systems, application management or the business service management -- these are being reworked, because you can’t think of any of them in the narrow silo.

It’s like saying, "Well, I have this application; I have to manage this application. I have my TCP/IP network; I have to manage the network." You still have those technologies and you still have to manage them, but now we also have this whole notion of services cutting across different parts of the IT shop, meeting different needs of different parts of the business.

A single service might abstract multiple databases, multiple underlying applications, and multiple platforms. That same service might serve multiple lines of business and might serve the needs of internal as well as external users. So, in that context, what it means to do management is being entirely disrupted by the service-oriented approach.

Milani: Traditionally, the way people have looked at the Web services in SOA management today, has been to manage or monitor the interfaces, which are actually an interface to a runtime environment that holds some sort of service.

What do you think is required to deeply understand how to monitor these services beyond what the interfaces are doing, and finding out what’s under the tip of the iceberg? Dana?

Gardner: Well, with SOA you need to gather information about your systems both deeply and broadly: deep and wide. You can already get a fire-hose of data from your systems, log files, and agent- and agentless-based approaches already on the market. You get a ton of data.

It’s working with that data in the context of a horizontal business process that’s the hard part. The type of applications that we’re going to be seeing in the future, as Jason mentioned, cutting across different aspects of the organization, are going to require redundancy. If one aspect of a process goes down, that’s the weak link in that chain, the whole chain could be at disadvantage.

In the past, you might have one application down, but people could go off and do another task, because that mainframe would be backup at two o’clock. You can live with that. If your entire supply chain is disabled for a period of time, that’s a higher price to be paid. So, we're looking at a different level, and I don’t think we’ve seen the solution yet.

Bloomberg: It’s important to note that in the context of SOA, monitoring is just not good enough anymore. It’s not good enough to simply say, "We need to find out when we have a problem." It’s like, "Great, okay, now we know that Titanic has sunk." That’s not going to do it for you. You need to have preventative and corrective management. For a service to be loosely coupled, it has to behave the way it’s supposed to behave, regardless of what’s going on beneath the cover.

So it’s not good enough simply to say, "My management tool is telling me my service is down." You need to have a way of understanding that problems are brewing, that they are in the works. You have to be able to identify a potential problem before it actually impacts the behavior of the service and you need to take corrective action, ideally before the consumers of the service are impacted.

This is a high bar to set, an enormous challenge, and it’s not likely anybody is going to be able to do this perfectly. There is nothing perfect in this world and there will always be instances where there are some problems that a preventative, active management tool won’t be able to catch, but it’s critical for the architect to plan for this level of management, preventative corrective management.

That’s something the architect has to think of ahead of time, when they plan how they are going to build and implement those services. You can’t let it go for later. It’s not like you say, "We're going to launch our software and then let operations deal with management." There has to be something that’s part of your initial thinking when you are putting together the plan for your SOA.

Gardner: Fortunately, the way we’ve seen SOA evolve in the marketplace has been more on the crawl, walk, run basis. People aren't going out there saying, "We're going to switch over to SOA on Monday and all systems will be services." That’s just not the way.

There is an opportunity to learn as you go to encounter problems and then to put into place the management feedback and create the feedback loop into the remediation. Another important aspect of this is to start finding commonality between pre-production and post-production when it comes to applications and services development.

We're beginning to see some products in the market that try to take data that’s collected in the development phase and make it available to post-production to start feeding a loop of communication. So, when something is amiss in production, you can not only look to what is at issue in the systems and operation, but also look to how could we make this service or application better. So, the requirements for service and application are being impacted by operations.

For a long time, there was a significant wall between these facets of IT. It’s still very problematic, but if we can create a management feedback loop, so that -- as we get into faster iterations of development, when the test-debug cycle and build cycle is faster due to agile and lean practices -- we can start saying, "Let’s find out what’s going on in the field when something is wrong."

Do we just throw more hardware at it? Do we just add more servers? Or, do we say, "Can we actually design and engineer the service to be better," and then make that happen with a matter of weeks or months?

Milani: It sounds like the playing field again is far more complicated and complex with SOA, and is going to get more complicated from here on. You have business processes that go across multiple technology silos, multiple enterprise silos, and probably to other enterprises. So, you have different constituents, different organizations, different groups, and many different types of technologies.

This area was pretty hard to monitor and manage in even a simple three-tier architecture. Now, you have an N-tier architecture which you could almost call an "N-to-the-N-tier" architecture. Now, you have different types of services that you could be calling on, depending on the quality of service and security, trust and policy, and so on. So, it’s a different game. If you were to fast-forward five years or seven years, what do you think monitoring a management system, which could address all the issues we just talked about, would look like?

Bloomberg: It’s important to understand that management is not a practice in isolation. It’s really part of a family of capabilities that includes governance and quality, as well. You mentioned policy, security, and a variety of issues. All these are part of the SOA infrastructure story. So, to answer the question where things are going over the next several years, it’s really maturing the family of SOA infrastructure capabilities, broadly speaking.

We like to call that the governance quality management, or GQM, suite, which handles design time as well as runtime issues, creation and communication of policies in the context of governance, management in the context of runtime. It's not just thinking of runtime, in and of itself, because runtime is only part of the story. We have the full lifecycle now with design time creation of services, as well as publication and discovery of services.

The runtime part, which is the current focus of management, as well as the change time part, where you reconfigure and recompose services essentially in runtime context without any underlying co-changes, that’s where we see a lot of the activity going on in a mature SOA environment, is at that change-time configuration, composition level. So more and more of what has to happen there, from the infrastructure perspective, is this pulling together of the quality management in governance roles into full lifecycle quality management governance suite and that’s what we see happening already today, with a lot of the products in the space.

Gardner: In five to seven years, we're going to continue to see an increase in the pressure on businesses to adapt in markets. We’ve got globalization well under way and it’s going to continue. We have lower barriers of entry to companies, where digital assets are made available. We are going much more from bricks to clicks. Therefore, companies need to adapt readily and they can’t go to their IT departments and say, “We need to change; how long will it take?” They need to say, “Here’s the change; implement it.”

Let’s take an example of something from recent business history. Let’s say you’re a manufacturer of toys and you're told that a portion of these toys are now in the field with toxic paint that is an violation of the regulations in your country. You need to take quick action. You need to find out through your supply chain where the problem is. You need to find new suppliers. You need to go back out to the field and conduct a recall, and coordinate this with your marketing and your PR department and your investor relations department, so that you don’t lose the entire value of your company overnight.

How are you going to do this? You might do this through your IT systems. So you’re going to need to examine what’s going on in your supply chain and find out where the problem is and stop it. You’re going to say, “We don’t want to just keep the trains running on time. We want to pick up the tracks and move them somewhere else.”

IT is going to have a great opportunity to become far more valuable to their parent organizations, to be the real partnership that they should be, through the exploitation of SOA and through the proper management of IT and processes.

To answer your question: The value of IT here can be much greater. It can be an enabler, not a cost center. It can be the way in which not only is information relayed about what’s going on, but can determine what we want to happen. We want to change that supply chain. We want to change that distribution, recall these products, get a list of every single product and every serial number, and we want to relay that to our sales force.

That sounds straightforward, but if you try to do that with a lot of IT systems today, you’re going to find yourself up there with the equivalent of mimeograph and crayons, doing it by hand -- and that’s just not acceptable. So in the future, a company’s very existence could be at stake if they don’t have agility in these processes.

Bloomberg: This is a really important point. SOA is really not optional. Companies that don’t get this right will suffer the consequences. They will suffer lawsuits and suffer a competitive disadvantage. They are going to go out of business. This is an important thing to keep in mind. IT is not playing around here. You can't say, "Maybe we will do SOA, if we can figure it out, or maybe we won’t. We’ll just do things the old way, where we are siloed and we keep on going."

If you keep doing things the old way, you are going to lose out one way or the other, whether it’s some sort of regulatory or competitive pressures, some disaster like lead paint, or credit card numbers getting out on the Internet. Whatever the problem is, it’s going to happen, and you have to be prepared. Organizations that don’t get this right are not going to survive.

Milani: SOA, again, is very business-driven. One could say it’s totally business-driven. It gives business agility and adaptability. Often people call it agile enterprise, real time enterprise. Inherently, SOA means real time integration across separate applications and separate technologies.

Something we touched on a little earlier was preventative automation and correction. Can you guys elaborate on that a little bit, why it’s very important. If you’re talking about an agile, active enterprise or real-time enterprise, then that automatically means that the management cannot be reactive and the management cannot be an afterthought. Dana?

Gardner: I recently read a book on SOA that I found very useful. Dr. Paul Brown is the author, and it’s called, Succeeding with SOA: Realizing Business Value Through Total Architecture. A lot of the book has to do with this concept of "Total Architecture."

It’s the architecture of the business and the architecture of IT having some relationship to one another. We can borrow from this concept and say that this should be a "total management" approach as well, so that we have this ability to manage processes and infiltrate the systems in such a way that it becomes a two-way street.

Preemption is really about latency. You can be reactive, if you can do it in a nanosecond. But, preemptive means that you’re going to come to a time where the lights are blinking and there is something wrong, and, before you’re totally out of business or some process is brought to its knees, you want to take remediation. It’s really about balancing the latency of reaction toward a point of preemption. That's very hard to do, however.

When we have system redundancy, we have all this log data. There are probabilistic approaches. There is looking at performance states that are normal, when you compare that over time, but when we get into this area, there are many unknowns, many more variables across the supply chain. When we are dealing with services that are coming from organizations that you don’t have authority or control over, it’s going to be a difficult approach.

I don’t have a quick answer to it. I do think that the latency issue needs to be addressed -- the amount of information that's shared. As we get toward this concept of total management, we need to bring in what incentives are being applied to people and systems.

Are we going to pay for systems based on a steady stream, are we going to start putting in incentives that penalize people for down performance, while paying them higher prices for greater performance? As we see services that are acquired on a subscription basis or a pay-as-you-drink basis, we are also going to start seeing a lot more monetized incentives around performance.

So whether the systems react or not, the price could be so high that you’re going to have to make the investments. I think economics and the concept of total management need to be brought to this.

Bloomberg: There is no magic wand here. Systems aren’t perfect. Software is never a 100 percent bug free, computers are never 100 percent operational, and networks are never up 100 percent of the time. There are always problems. There are problems on the business side as well. Secrets sometimes do get out, and products sometimes are defective and whatever it is, there are always problems. This is just the way of the world, the reality of life on earth.

How do businesses deals with this traditionally? Well, you hope there aren’t any problems, and you have certain plans in place, but fundamentally, when there are problems, you step away from your technology and you deal with it however the people can deal with it. So, you run around and try to fix the problem.

We are looking at SOA, saying, "We can do a bit better with our technology in terms of dealing with the reality that there will be problems." As far as agility, we want to be able to respond to change, including changes we don’t want. That include problems with systems, with the business, with regulation, competition, or global disasters -- whatever it is.

Instead of just saying, "We can’t rely upon our technology, when problems come along," we want to say, "Yes, we have a more flexible way of dealing with problems, even though we can’t predict what they are.” That’s part of the benefit of SOA, part of the agility benefit. We are dealing with unexpected change, including various problems.

Instead of just running around and not being able to use technology, we want to have a governance plan in place, saying “This is how we’re dealing with problems. Here is how the technology will rise to these challenges." And, we make it a matter of policy. So now, instead of just having to wing it when you have some sort of issue, there is an infrastructure in place for helping you deal with issues as they come about.

A key to this is the management challenge. As management technology improves, it is less and less about just monitoring stuff, and more and more about being able to deal with issues as a matter of policy, where your policy is in place for dealing with problems that you can’t predict -- and those are the most challenging ones. That’s what we see happening over time.

Technology is getting better at dealing with these unpredictable situations. A core part of what we need from agile IT is being able to deal with the unpredictable.

Milani: Great point. It dovetails to my next point, which is businesses are moving to standard policies and standard practices in the form of a business process. More and more, they are moving the way they do business into a well-defined practice of business processes. So, using technology such as BPEL and business process management systems, why wouldn’t the management of some of these technology and software resources look like how processes are handled on the business side of the equation?

Bloomberg: Actually, they might be. You want to think about business process in the context of whatever the business does, and that applies to IT as well as it does to the business. IT should be run as a business, as part of the business. So, it’s not like IT is some different world. It’s just part of the business, one of many divisions, and it has a certain role within the context of the business.

Management, to the business side, means a whole range of things, of which technology is only a portion. It means making sure that you have a management hierarchy within the organization. It means that your business is running properly and that the business process is running properly. All of this is part of what the business means by management.

Part of that is IT enabled and part of that is specifically IT centric, but from the business perspective, it’s not like they are drawing a line and saying, "This is the stuff we mean by management in the business context, and this is the stuff we mean by management in IT context," as though they were different things. There is a spectrum, and as we move to SOA, we’re seeing that IT is becoming more of an enabler of the business in many more flexible ways. So, the term "management" now becomes much more of a business-centric context, of which IT is now an enabler, as opposed to two different kinds of management, one for the business and one for IT.

Gardner: If you could meaningfully and successfully divorce IT from the organization, you would have seen a lot more outsourcing. Companies tried to outsource lots of aspects of their IT. Some are successful, but in many cases it was brought back in.

IT and business are intrinsically bound. It’s a competitive differentiator: The way in which you do IT better than your competitors. I don’t think we’re going to see a divorce here. We’re going to see more assimilation. But the management of IT is relatively new, compared to the practice of business management.

The modern corporation is over 100 years old. Mercantile economic activities are 600 years old. You can find other aspects even older than that as to how people are governed and operate as teams or individuals.

If we have things like Balance Scorecard, Six Sigma, Design for Manufacturability, Simultaneous Engineering -- these concept have evolved on the business side, and on the manufacturing side. We should expect to see the same aspects for IT, and perhaps have the same overview of a Balanced Scorecard on how the business is operating, as well as how the IT is operating -- someday, maybe even together.

What we're really talking about here is the maturation and the natural process for IT to become more like business, and not be off in its own corner. It takes time. These were complex things that happened very, very quickly. We used to call it Internet Time. It’s probably, in some respects, even faster now, when you think about Enterprise 2.0 Time.

These IT systems have evolved so quickly, and companies have implemented them in such a haphazard way with lots of different heterogeneity involved, that it’s natural that it’s going to take time. Ultimately, we're going to get to a maturation where IT catches up to the business. Then they can be governed very similarly.

Milani: Are there any standards required sooner than later? Is there any specific standard that you think can enable the deployment of these SOA environments?

Bloomberg: There are standards in the works; there is Web Services Distributed Management (WSDM) and WS-Management and a variety of others. There are some that are datacenter centric, others that are more network centric. But, by and large, I agree with Dana that this is still the early days in terms of management standards.

What’s happening in the management standards world is a pissing match between the big vendors. You have the Java guys wanting to this and then Microsoft guys wanting to do that, and nobody listens to them, because they can't agree with each other. So, they'll realize, "Hey, all of our customers are ignoring us. We'd better get our act together." It’s become this big political thing that’s just slowing whole thing down.

From the enterprise perspective, you don’t have to wait around for the vendors to grow up. You can get stuff done today. This isn’t going to stop you from being successful with SOA initiatives today. It might mean that two products you buy off the shelf might not interoperate as well you like. That has to be part of your plan. It might mean you have to come up with your own internal standards for the time being.

Lots of organizations are doing that as well, because the open standards are just not mature enough to do everything you wanted to do. But that doesn’t mean you can’t be successful. Interoperability is part of the story, but a lot of what you need to get SOA to work are other challenges that you can work on. You can get SOA business value.

Gardner: We need to see standards at a higher level. It's not just about systems level, and it’s not just about framework level, like Java or .NET. It’s really at the level of how the people who are responsible for a business process get a view into that entire process.

Ultimately in these organizations, we're not going to have people responsible for a server farm, a database, or an SAP implementation. They're going to be responsible for a order-to-bill capability. For those people to get a view into all of the aspects for which they are responsible, they're going to need a management view at a higher elevation. That’s where standards need to be applied, so that they can get that view, so that there is interoperability, sharing of data, and a canonical view of management.

Milani: We're almost out of time. I want to thank you for your time and quickly ask you if you want to close and sum up what you think people should consider, as they deploy more and more SOA implementations, and what they should consider with respect to management.

Bloomberg: SOA is not just about the technology that you can't buy from a vendor. It’s not something you buy. It’s something you do. It’s a set of best practices that are still relatively loosely defined.

You can be successful with SOA by taking it a step at a time, achieving real business value. You don’t have to set the bar so high that it becomes impossible. But, that being said, even if your SOA initiative is relatively modest and you have a few services in the context of that architecture, management is something that you have to think about very early on. In fact, you need to think about management with services even before you get to SOA.

If you just have a few services and they are not managed, then they could be redundant or they could be incompatible. Worst of all, they could be rogue services, services that are not on the radar of anybody who is running these services. They could expose confidential information or bring systems down. Who knows what the problem is?

A rogue service is one that you just have no idea what sort of damage it can cause. This is a real risk, because, if you’re building a Web service, in particular, it might just run over Port 80. It might just expose information over the firewall, and you have to think about this very early on in your services initiative, even before you get SOA.

As you get SOA, you have to think about all the services you already have and plan for loosely coupled services in the context of your architecture. All of that has to be done in the context of management, as well as governance and quality as well.

Gardner: As companies move closer to SOA, it forces them to grow up. It forces them to think across boundaries. In the past, complexity has forced companies to divvy up issues into small compartments, put a box around them, and assign people to that item of complexity.

But that has stifled the ability of interoperability and of addressing things holistically, of being fleet and agile. It’s made them brittle, has made them slower, and has made things expensive. SOA forces companies to start binding what happens in pre-production to post-production, what happens in an application with what happens in an infrastructure, and what happens on a service level from an outside provider to what happens as a shared service internally.

There are great risks if you try to do SOA without growing up, but there are super opportunities if it’s done properly. It can elevate IT as a function within the organization from being an inhibitor to the absolute enablement for new business and growth and opportunity.

If you’re inside an IT department, if you are a vendor, if you’re a consultant -- consider that if you do the diligence, if you come up some standardization, it’s the methodological approaches that work. SOA will make the company better and will make IT indispensable in the best possible way.

Rod Butters: I want to thank all of you for the discussion. It’s actually ranged all the way from the value of SOA to the business and the kinds of business opportunities that enables how management keys into that and feeds into that from a technology standpoint, and the interesting ideas you shared today about how management ties with the actual SOA architecture to provide agility to the business.

So, with that, thanks very much for this great discussion today and thanks to everyone here who has attended our live debate and discussion on SOA management. At this point, we’re going to open this up for questions.

Question: I'm from Bank of America, and I was really glad the way you guys started to talk about the management top-down approach to addressing the changes that the organization will face. You also talked about agility and business demands and bringing IT management bit closer to the business management side. Business, for all intents and purposes, doesn’t really care what’s underneath the covers, right?

They have a business value proposition, they have business ideas and perhaps a very cool looking interface, if one may just look at the Internet only, a Web 2.0 experience. For them, agility and latency has a lot more meaning than what we are talking about with respect to SOA. With so much organizational change, there’s going to be some time before these things are going to get settled. How do we really achieve agility in terms of business demands and SOA, which is lot more organizationally heavy it seems? That’s one question.

Second, there is one notion of introducing and implementing SOA, which is going to take some time, and we are talking about management needs to get together into a common consensus of implementing SOA in a most efficient fashion. Now again, talking about agility in terms of maintenance and regular changes to the environment, from the business perspective, they want change to be implemented faster.

The owners define pretty much for the entire organization enterprise wide. How does business still achieve agility into their maintenance mode, when they want to make small change to an application which is now going to require a lot more changes on the back-end side?

Bloomberg: You’re quite right; the business doesn’t have visibility into the inner workings of things, but they also don’t want to know. They want SOA stuff to work the way it’s supposed to work. They will have a change. They want it to happen. They don’t want to hear about any problems. They don't want to hear a bunch of tech-speak in response to some request that they have. That’s one of the core challenges of SOA, thinking about services in the context of the business. It’s a role of IT to build and support business services that abstract the underlying technical complexity to provide the business with that flexibility that they need.

If you can achieve this with individual services, then you can achieve this with the compositions of services. You have to build services to be composable. You’re trying to enable the business to build and evolve business processes by composing, recomposing, and reconfiguring services. If you do this right, if you get the architecture and the implementation correct -- it's a big “if” because it’s a challenge -- then you can build big services out of little ones, because you can compose services into composite applications and expose that as a service as well. So, this big exposed composition of services as a service gives you two core things.

One, it’s recursive, if I can build big ones out of little ones. Second, if you were to see some sort of business service, you don’t know if it’s actually abstracting a process or not. So, in telco, you could have a user-provisioning service, where it’s actually in multiple steps. Or, in banking, you could have an open-account service. That might involve six or eight steps, whatever it is. From the business perspective, from the customer prospective, they don’t want to know.

They want to open an account. If they can push a button and the account is open, that’s great. If you can build loose coupling, not only into individual services, but into how you compose services as well, then you’re able to build flexibility into the processes themselves. So, it’s a challenge, but that's the goal -- to build this level of flexibility into the processes, because that gives the business now the ability to have the agility at that business level.

Gardner: If the business side of house wants to have buttons and levers that they can push and pull, then it's up to IT organization to take those inferences and those instructions and then make that into something that changes. It’s a change management function. And, as Jason said, if the processes are composed of individual services, you can rearrange those services, and you could not only rearrange your service within a process, but you can create new services rapidly.

If you have a service that needs to be changed, you don’t necessarily have to rip and replace. You don’t have to shut things down. It’s not a three-year replacement cycle. You can actually recreate that service, make the changes you wanted and then slowly bring that service into production across more processes.

While one of the benefits of SOA/services enablement is reusability, you can also get redundancy. You can create services that are rather similar. You might want to not let anyone be that prolific and write too much, because then you’ve got multiple slices and dices of services. But, it allows for the ability for moving functional sets without having to recreate the entire application.

You’re going to have more iterations, smaller changes within services. You can have services that are similar, and you might well combine them to be a fuller set of requirements within a single service. Then, you can bring that into production across more and more of the organization. It’s just a more flexible approach. You cannot do this when you have brittle applications on a single silo.

Bloomberg: From the business perspective, what you’re saying is exactly right, but, from the business perspective, you can abstract a set of redundant services or revolving services. Think of those that are at a lower level. From the business perspective, they’re all just one service. You have your account-opening service, it’s just the one service, and it works the way it supposed to work.

Behind the scenes, you have redundancy. You have versioning policies. You have management infrastructure. You have all the stuff going on behind the scenes, from the perspective of the business, to get that service to be flexible, so as business requirements change, it does what it’s supposed to do.

From the business perspective, it’s an account-opening service. It opens accounts, and it works for all my lines of business, for all my different kinds of accounts, and it continues to work even if the requirements for that service change. It’s not easy, right? But, you can make it simple for the business by taking these infrastructure and architecture steps within the context of IT.

Question: You talked a lot about the active aspects of SOA management. How is that different from an enterprise service bus (ESB)?

Bloomberg: If you noticed, we didn’t talk about ESBs. Normally, we don't talk about ESBs. We didn’t talk about integration infrastructure at all. We didn’t talk about middleware at all, and that was intentional. When I talk about SOA infrastructure, ESBs are not high in the list. Middleware, in general, is not high in the list. I talk about governance quality and management as the core infrastructure capabilities that SOA requires. From the context of middleware, most organizations already have a lot of middleware. They don’t necessarily need a lot more.

Now, if you’re getting into SOA implementation and you have your architecture, you have your service design, you have your governance, and you’ve thought about governance quality and management, you may find that you need middleware at some point, because whatever middleware you have is not to the task. Then, there may be a requirement for an ESB, or other middleware solution.

But, you don’t want to start there. If you start with the ESB, because some vendor came and said, "Well, to do so you need to buy an ESB," you’re not going to end up with SOA. You’re going to end up with an ESB, actually what the blogosphere is trying to call an ESB-oriented architecture. The point is that if you start with ESB, you end up with something other than SOA. You end up with a traditional middleware-driven architecture with service interfaces.

Now, that being said, there are some perfectly good ESB products on the market, and lot of them offer management capabilities as well. So, when you get to the point of considering what management infrastructure you need, you may turn to an ESB for that capability, but you don’t want to start there. You want to start with the architecture, the business problem, the business processes. Use those two to derive your services. Look at your infrastructure, solve the governance quality management problems, and at that point an ESB might come into the story.

Gardner: ESBs can be very powerful, and, as you are on the journey to SOA activities, integration has been problematic, brittle, expensive, and time consuming. Any productivity benefits that you can bring to integration to me makes sense to me, but an ESB can be more powerful in the management sense, because you can manage the ESB, the way you’ve been further managing your processes or your services or the integration of resources and assets that contribute to the production of your services.

So ESBs do play an important role in management, and we’ll need to see more flexibility and ease of managing ESBs and what they do in applying rules and policies to ESBs. It’s just another important part of the infrastructure.

We’ve had busing and messaging for some time. The idea of trying to make that inclusive of more transport protocols and technologies makes a lot of sense, but how do you manage them? So, again it’s about bringing intelligence from a higher abstraction across more systems. So, I think ESBs will be important, and I think managing ESBs will be important.

Milani: I would add that ESBs are a very powerful piece of this puzzle, and I believe that what they really do today is interconnect multiple types of different systems, and they facilitate and orchestrate the interaction and exchange of data. So, in many ways all they’re doing is exposing existing interfaces, and they facilitate interaction within those interfaces. But, I think what's missing from the ESB picture, from the monitoring and management perspective, is they don’t have deep visibility into the runtime of the interfaces that in fact they are exposing.

So, one piece that you don’t have visibility into is the runtime of those services within ESB, but I do think ESBs will play a major role going forward to marry passive management, which is to manage and monitor what you have, with active management which is constantly "correct and adapt." And I think that’s an area where an ESB could be extremely powerful in the next few years.

Butters: I thank everyone for joining us today. This has been a very enlightening discussion. Again, thank you to our panelists and thank you all for joining us here at the Harvard Club. Have a great day.

Gardner: Thank you.

Bloomberg: Thank you.

Listen to the podcast here. Sponsor: Tidal Software.

Edited transcript of SOA management trends and analysis discussion. Copyright Interarbor Solutions, LLC, 2005-2007. All rights reserved.

Tuesday, September 25, 2007

Integration Infrastructure Approaches Must Adjust to New World of SaaS and Shared Services

Edited transcript of BriefingsDirect[TM] podcast with Cape Clear's Annrai O'Toole and analyst Phil Wainewright, recorded Sept. 13, 2007.

Listen to the podcast here. Sponsor: Cape Clear Software.

Dana Gardner: Hi, this is Dana Gardner, principal analyst at Interarbor Solutions, and you're listening to BriefingsDirect. Today, a sponsored podcast discussion on integration infrastructure for modern software-as-a-service (SaaS), and on-demand applications providers.

The support and requirements for integration among these organizations, these hosters of many different types of services and applications, require a different integration approach. They're dealing with complexity, massive scale, and a cost structure that’s very lean. They have a business model that’s often based on ongoing subscriptions, and, therefore, they have a margin issue to maintain. They also have a wide variability of users and service-level agreements (SLA) to meet.

Reuse is becoming an important issue, as are patterns of automation. We're going to take a look at the market for integration in these modern service provider organizations. We’re going to look at the characteristics of the IT infrastructure support that meets these new requirements. And, we’re going to offer some solutions and approaches that satisfy these needs provided by Cape Clear Software.

Here to help us weed through this issue, we have Phil Wainewright. He's an independent consultant, director of Procullux Ventures, and also a fellow ZDNet blogger, primarily on this SaaS environment. We're also joined by Annrai O’Toole, CEO of Cape Clear Software. Welcome to you both.

Phil Wainewright: Thanks.

Annrai O'Toole: Great to be here.

Gardner: Phil, let’s start with you. It seems that SaaS and the new ecology of providers that are welling up around it require a different approach to integration, and this amounts to supporting the shared-services capability. Not only are these service providers going to require this capability, but also enterprises, as they become hosts themselves. Can you describe the different approaches to integration that we're now going to need in order for this business model to prosper?

Wainewright: Part of the issue that people face is that integration has crept up on them. In the early days of SaaS, it was very much about adopting point solutions. One of the reasons Salesforce.com has been so successful in the CRM space is that what Salesforce.com did with automation software didn’t have to affect the rest of the business, because they could just do it in isolation. IT wasn't really worried about it. So, they said, "Okay, we’ll just go to do that and it won’t affect the rest of the IT infrastructure" Now, we're getting more sophisticated about SaaS, because it's being taken on board in a whole range of areas within the enterprise, and people want to do integration.

There are two forms of integration coming to the fore. The first is where data needs to be exchanged with legacy applications within the enterprise. The second form of integration that we see -- not at the moment, but it’s increasingly going to be an issue -- is where people want to integrate between different services coming in from the cloud. It’s a topic that’s familiar when we talk about mashups, fairly simple integrations of services that are done at the browser level. In the enterprise space, people tend to talk about composite applications, and it seems to be more difficult when you are dealing with a range of data sources that have to be combined.

Gardner: It seems to me that now we are elevating to an integration of integration types. Does that make sense?

Wainewright: People have realized that if you're doing integration to each separate service that's out there, then you're creating the same point-to-point spaghetti that people were trying to get away from by moving to this new IT paradigm. People are starting to think that there's a better way of doing this. If there's a better way of delivering the software, then there ought to be a better way of integrating it together as well.

Therefore, they realize that if we share the integration, rather than building it from scratch each time, we can bring into the integration field some of the benefits that we see with the shared-services architecture or SaaS.

Gardner: How is this different from the way that application service providers (ASPs) of an earlier era went? It seems that they had a stack underneath each and every application. Now, we're hearing more about virtualization and the efficient use of infrastructure and platform elements. Help us compare and contrast the ASP model to where SaaS providers are headed now.

Wainewright: In the ASP model, you took existing conventional applications -- I like to call them unreconstructed applications -- and just hosted them in a datacenter. I've always said that it’s more than just a relocation exercise. You need to change the way the software is architected to take advantage of the fact that it's now in the Web and is in a shared-services environment.

In 1999 or 2000, one company came out with hosted webMethods integration as an offering. The problem was that it wasn't scalable. This is the problem with the ASP model. You were hosting a customized infrastructure for each individual customer.

Although there was some sharing of the infrastructure that you could do with virtualization -- and Oracle’s On-Demand is an example that’s done a lot of work with virtualization -- you still end up with every individual customer having an individual application tailored to his or her specific requirements. You get no economies of scale from doing that.

So, the new generation of SaaS providers, are really talking about a shared infrastructure, where the application is configured and tailored to the needs of individual customers. In a way, they’re segmented off from the way the infrastructure works underneath.

Gardner: Annrai, at Cape Clear Software, you’re targeting these providers and recognizing that they’re going to be moving to service-oriented architecture (SOA) relatively quickly, based on their requirements of their business and demands of complexity. How are you seeing these providers, as you are encountering them in the field, managing this discrepancy between commonality on the infrastructure, but high variability on the application and delivery to the end-users?

O'Toole: As Phil just said, taking unique integrations and hosting them isn’t very useful, because the person who is doing the work just ends up doing tons and tons of different customizations for every single customer. In the integration world, the solutions to these problems are reasonably well understood. The difficulty has always been about delivering them.

So, we’ve been working pretty closely with a number of prominent SaaS companies, most publicly Workday and some of our large enterprise customers, in figuring out how to solve integration problems for these on-demand and hosted providers.

What come out of it are two issues. First, Salesforce.com, really pioneered multi-tenanting as a concept to reduce the cost of hosting an application for lots of different users. We've got to do the same thing with integration, and we’ve been working with our customers and updating our enterprise service bus (ESB) to support multi-tenanting at the ESB level. You can have integration and have it segmented, so that it can be utilized by different customers at the same time.

In a large enterprise, this allows you have a shared-service model as well. You can build integrations in a datacenter and then segment them, so that different people can use them simultaneously.

There is also another aspect to the problem that needs to be solved. When you build an integration, you always end up having to customize it in some way for different customers. Customers will have different data formats. They’ll want to access it slightly differently. Some people will want to talk to it over SOAP. Some won't, and they’ll want to use something like REST. Or they might be going backwards and are only able to send it FTP drops, or something like that.

Multi-tenanting is one solution to the problem. The other is what we call multi-channel, which is the ability to have an integration, and make it available with different security policies, different transports, and different transformations going in and out.

A combination of multi-tenanting and multi-channeling allows you to build integrations once, make them accessible to different users, and make them accessible in different ways for each of those different customers. It gives you the scalability and reuse you need to make this model viable.

Gardner: Phil, it sounds as if we're really redefining integration and that we’re putting a higher abstraction, infrastructure-as-a-service, integration-as-a-service approach and model around it. Is this unprecedented, or is there anything in the past that we can look to, within even a closed environment, or a siloed environment, that relates to this. Or, are we into something entirely new when it comes to integration?

Wainewright: We're trying something that hasn’t really been tried with conviction in the past. In fairness, there’s still a lot of skepticism out there about whether we can really share integrations in the way that Annrai has just described. There’s a certain amount of agreement that we need to reuse integrations, but people haven’t necessarily brought into the whole shared services model.

People are particularly doubtful whether you can do all of the nuances of integration that you need to do in a purely declarative model, whereby you can simply have a description of the integrations that are required and have a need to work, and then that gets abstracted by the architecture into operation.

Annrai could probably elaborate on how it’s become possible to get the level of detail into this more loosely coupled architecture to enable people to share integrations, without giving up the individual requirements that they each have.

O'Toole: To pick up on that, I would be the first to share Phil’s skepticism and to offer that we may not have all the answers. However, one point worth bearing in mind here is that this problem is going to get solved, because the economic reality of it suggests that we must solve this. One, the payoff for getting it right is huge. Second, the whole model of SaaS won’t be successful, unless we skin the integration problem. We don’t want the world to be limited to just having Salesforce.com with its siloed application.

We want SaaS to be the generic solution for everybody. That’s the way the industry is going, and that can only happen by solving this problem. So, we’re having a good stab at it, and I'll just briefly address some of the things that I think enable us to do it now, as opposed to in the past.

First, there is a standardization that’s taken place. A set of standards has been created around SOA, giving us the interoperability platform that makes it possible in a way that was never possible before. Second is an acceptance of this shared-services, hosted model.

Years ago, people would have laughed at you and said, "I’m going to trust all my customer data to a provider in the cloud?" But, they’re doing it happily because of the economics of it. The whole trend towards trusting people with outsourced offerings means that the people will be more likely to trust integrations out there, because a lot of the technology to do this has been around for quite sometime.

Gardner: To Phil’s point, Annrai, how do you begin to accomplish this? Is this a matter of creating forms, templates, and models and then applying that to the ESB, where the ESB executes on that model and then they can be reused? If not, please explain? Then second, how much automation are we talking about? Are we going from 5 percent or 10 percent reuse, and then working up more -- or can we actually bite off more of a total integration as a pattern?

O'Toole: That’s a very good question. It's a movement to a more declarative style of integration. Certainly, what we’re doing is saying that a lot of the issues in integration are very common across different types of integration. For example, a lot of the issues currently in integration revolve around data transformation. Other issues revolve around the complexities of dealing with transports. For example, information can come in on email, but I need to be able to send it out to someone else on FTP.

The third set of issues is around handling errors in a meaningful way, so that when things go wrong, you’ve got a nice model of propagating errors back to people. The next set of things is security policies. Again, in integration you’re touching different things with different security models. With what we’ve done, you can visualize a whole bunch of pre-build security policies, transports, and transformations, and you’ve got this palette of things that you can then assemble together.

Someone still has to write the core business logic of the integration. That fact hasn’t changed. You still need that. Once I have the core business logic of the integration built, then all of the things around it I can put on in a visual and declarative manner around that integration, such as, "I want that integration to be accessed with this security policy, over this transport and with this transformation to get the data in and out of it."

I can take a single integration and create hundreds of different access routes into it, all with different security policies, different transformations, etc., and can segment them so that none of those things interferes with another during that multi-tenanted mode.

That technique allows people to reuse that integration for hundreds, if not thousands, of different customers and users in a totally segmented way. So, that’s at the core of what we are doing.

Gardner: What’s a ballpark figure for percentage of reuse, versus project-by-project or instance-by-instance customization?

O'Toole: There is no hard and fast data, so we rely on heuristics and rule of thumb. If we look at what our own consultants and systems engineers would do for customers, 70 or 80 percent of our time is spent around configuring different transports, and working at security. These are the things that are totally unglamorous, but really nasty gotchas in integration. For a long time, as people focused on making the core creation of the integration easier, they missed those other issues around this, and they’ve always been left to one side.

You might say, "It’s not hard to write a few lines of Java code to handle a different security policy." Well, it isn’t, but it is, if you've got to do a thousand different times for a thousand different people. It becomes tedious, and then you've got to manage all those things. So, it really is attacking some of the kind of nasty little gotchas on which people spend the vast majority of their time.

Gardner: Phil, you mentioned declarative, and Annrai mentioned graphical and visual approaches to this. Is it too farfetched to consider that non-programmers and non-technicians will be getting involved with this? Are we elevating an integration function to folks that are architects and/or business process analyst types?

Wainewright: A lot of the integration that people need to do is for business reason. Therefore, it should be in the hands of business people. For a long time, the answer back from the technologists has been, "Well, sorry guys, we can’t let you go there, because it’s too complicated." If a lot of the infrastructure can be automated and done in a way that, as Annrai says, takes care of the complexity, then it becomes easier to offer out certain aspects of the integration to business people, but I think the technology guys are still going to have to be there.

It’s a good idea for business people to be able to link up different business processes, or to say, "I want to aggregate this data with that data, so I can analyze it, as well as have a dashboard that tells me what’s actually going on in my business," but that has to operate within the constraints provided by the technology guys who actually make it all happen reliably.

I was listening to what Annrai was saying. He made a couple of very interesting statements, which are worth going back to, because a lot of people who approach integrations in terms of SaaS, are really talking about on-premises integration that links into the SaaS stuff in the cloud.

Annrai is talking about taking the integration off premises, putting it in the cloud as well, and then sharing a lot of the capability. In the SaaS market space, large amounts of integration reuse is happening at the moment. It's simply a matter of installing the same data connector in different customers, and perhaps reusing the expertise, but it’s not in any sense a shared service.

You're basically duplicating all of that infrastructure. If you can put the integration infrastructure in the cloud, then you start to get the benefits of shared services and you can get above the 50 percent level of sharing. But, if you’re going to do that, you’ve got to have the confidence that the architecture, can actually support all of that and isn’t going to fall over with certainly a thousand integrations happening all at once, and mustn’t conflict with each other. Cape Clear has actually managed to package that into a product that people can buy and install. I think that’s pretty impressive.

Gardner: Annrai, it still brings up these issues about integration on the hosting organization side, where they’re going to be integrating across resources, infrastructure components, application types, and data streams. They’re going to need to do that to manage the complexity and scale of their endeavor and their business, but is there a certain level of integration where there is more permeability between the enterprise, the on-premises, and what’s available through the cloud or the provider?

Are you talking about both, or either/or? Does one to have to come first, and how do you see this shaking out in terms of integration and these different directions?

O'Toole: The way I’d phrase this is that we’re seeing a little bit of both. We’re not wildly being drawn into one end of the spectrum or the other at this time. What we're seeing from companies like Workday is a requirement for them to more or less exclusively host integrations for all their customers, and all the various back ends that they talk to.

For example, they talk to things like ADP and benefits providers and so on, and they are hosting those integrations on their sites, because they don’t want to go to ADP -- well, they can’t go to ADP -- and make ADP to change and so on.

Gardner: And, ADP is a payroll service provider.

O'Toole: It's the largest payroll service provider in the world, I believe.

We’re seeing things like that, but in enterprises you’re seeing this big move to virtualization and shared services. They’re saying, "Why are we having development teams build integration in all these branch offices at all these locations around the world? It’s extremely wasteful. It's a lot of skill that we've got to push out, and there are a lot of things that go wrong with these. Can't we consolidate all of those into a centralized data center? We’ll host those integrations for those individual business units or those at departments, but we'll do it here. We’ve got all the expertise in one place."

Those guys are delighted, because at the individual local level they don’t maintain all the costs and all the complexity of dealing with all the issues. It’s hosted out in their internal cloud. We haven't seen enough data points on that, but this hosted integration model can work. We’ve got it working for pure entities in SaaS companies like Workday, and we’ve got it working for a number of large enterprises. There is enough evidence for us to believe that this is really going to be the way forward for everybody in the industry.

Gardner: At Cape Clear Software you're not just dealing with this as an abstraction. You have product ties. I understand that you’re going to be introducing a new iteration to the Cape Clear platform, Version 7.5, in late September. Can you tell us a little bit about how you’ve taken on the need in the market, what you foresee as possible and doable, and what you’re actually delivering?

O'Toole: The generic need we've seen in the market is what we like to call on-demand integration. Before the advent of all the things we’ve just talked about -- shared services and SaaS -- the only way people did integration was with big patches, what became known as enterprise application integration (EAI), and they were essentially hand customized, on-premises integrations that were different for every customer.

We think that the demand we’ve seen in the market is a move away from on-premises integration into on-demand integration, because, for the reasons we spoke of, people want to be able to integrate with SaaS. They want to run shared-services models in their own organizations.

We think there is a new movement from EAI into on-demand integration and we have been targeting several features in our ESB, specifically around this multi-tenanting and multi-channel stuff, and that’s all getting rolled up into a release called Cape Clear 7.5 that goes out on September 25. We're pretty pleased with this. All our guys worked hard, and I think it’s the best product we’ve ever done.

Gardner: Give us the short list of the new functionality?

O'Toole: Essentially I think it boils down into three major buckets. There’s a new graphical editor that we're calling the SOA Assembly Editor, and this is an Eclipse-based editor that allows you to graphically clip together the type of things I was describing: transports, security and so on. That’s a whole new editor that no one has ever seen in our product before, except the people who have been involved in our tech preview.

Gardner: Let me pause you there. Is this something that you foresee being useful and applicable to non-techies or at least folks that can cross the chasm between the business issues and the technologies? Who’s going to typical author with this tool?

O'Toole: It’s not an either/or. It’s certainly not something that the business users can use exclusively by themselves, but it's not a tool exclusively for developers. Our grand vision around this business/technical user thing is that you start to create sets of tools that can be shared across people. You can have high-level business folks describing business process and BPMN, and they can be imported into other sets of tools that the technologists use.

Then, there are some issues around how this thing is going to be accessed? Our business analysts do care about that, because they say, "These sets of customers must be able to access it this way." They might not know the details of the technology involved, but they do know how those people want to be able to use the service. So, as I say, it’s a little bit of both. Ultimately, people are really going to get value out of it, but, at the end of day, they’re going to be more on the technology side, because it’s really going to smooth up their job of automating what was an incredibly laborious process.

Gardner: Okay. That was bucket one.

O'Toole: The second bucket of the features is all around multi-tenanting. These are core additions into the ESB to allow segmentation of integrations, data, and reporting. You can set how you want to identify inbound customers, clients, or businesses and then segment use of those integrations on the reporting and management of those integrations, based on those identities.

The third bucket is all of the stuff we’ve seen customers need in terms of running and maintaining large enterprise class Business Process Execution Language (BPEL) deployments. Obviously a lot of our product has been built around the notion of BPEL, as a kind of core metaphor for how people build integrations and manage business possesses. So, we are totally committed to BPEL.

In working with our customers on that, in terms of very large-scale deployments, there's a whole set of issues around how people maintain and manage. So, as our products are evolving, they're evolving away from just being a kind of BPEL engine into a full BPEL management system, where we are giving people all the tools to monitor transactions, and repair transactions when they fail. This is largely for business reasons, because if something goes wrong in the business information, they've got to be able to rebuild that last business information and get that business transaction back on track.

Gardner: It occurred to me earlier, when you were talking, that we are really not only recasting integration, but we are moving beyond implementation of integration into management of integration, and then a step further beyond that into the management of change and integration. Does that sound fair?

O'Toole: One of the nice thing about BPEL is they are long running processes, but the challenge that presents is how do I manage the change in long running processes. I can’t go in and wipe the database and say, "I didn’t like that schema that I had underlying that business process." You need to be able to evolve that. So there's initial support for some of those concepts in this version as well.

Gardner: I like to bounce it off of Phil. Do you think that we're well into integration management and that the execution is important, but it’s the higher value to a shared services environment that's in this change-management capability?

Wainewright: Well, yes. This is part of a big movement that we are seeing in the way that we approach IT from a batch process of having a requirement, building to it, delivering it, and then bringing it into operation, to a much more iterative, ongoing, continuous process of delivering something that is constantly adjusting to the business needs of the organization.

So yes, IT is really catching up with reality. We’re now reaching the level of sophistication in IT infrastructure that actually allows us to manage change as a continuous succession of events, rather than having to wait for an upgrade to Windows or new version rolled out, or whatever it is, to actually move to the next stage in our business automation.

I think it should be welcomed and it’s inevitable. Perhaps it’s frustrating that it always seems to take so long to make it happen. The vision always seems to be several years ahead of the reality, but it's definitely the transformation that we are seeing.

Gardner: Great! I think we’ll leave it there. We’ve been discussing redefining integration as a reusable function for providers of services and hosted applications, and the notion of a shared services environment, which applies to both large enterprises as well as hosted.

We’ve also been discussing the marketplace and this movement towards management and agility in a SOA environment. We’ve talked about how Cape Clear Software is delivering Cape Clear 7.5 to help grease the skids towards this integration functionality. Phil Wainewright, an independent consultant, director of Procullux Ventures and ZDNet SaaS blogger, has joined us in this discussion. Thank you, Phil.

Wainewright: It’s been a pleasure.

Gardner: Also we have been joined by Annrai O'Toole, the CEO of Cape Clear Software. Thank you Annrai.

O'Toole: Thank you guys, it’s been very interesting.

Gardner: This is Dana Gardner, principal analyst at Interarbor Solutions. You’ve been listening to a sponsored BriefingsDirect Podcast. Thanks for listening.

Listen to the podcast here. Sponsor: Cape Clear Software.

Transcript of BriefingsDirect Podcast on SaaS with Cape Clear's Annrai O'Toole and analyst Phil Wainewright. Copyright Interarbor Solutions, LLC, 2005-2007. All rights reserved.