
Business process re-engineering and integration costs are high, says study
By Andy McCue
Published: 14 July 2006 13:05 BST
The high costs of migrating to a service-oriented architecture (SOA) can eat up 40 per cent of an organisation's IT budget, according to a new report by the Aberdeen Group.
SOA is essentially a web services-based IT infrastructure based around business processes and services instead of siloed, standalone applications.
The Aberdeen Group benchmark report Enterprise Service Bus and SOA Middleware surveyed more than 120 IT and business professionals and found that 90 per cent are adopting or have already adopted SOA technologies.
Peter S Kastner, VP and research director for enterprise integration at Aberdeen Group, said there is growing and widespread acceptance of SOA technology, especially in large enterprises with more than $1bn in annual revenues.
He said in the report: "SOA is broadly seen as a real technology step forward, with the largest companies - who have the biggest integration problems - leading the way."
But while the rewards are high for those who successfully migrate to SOA there is also a high price.
Kastner said: "Redesigning business processes, high IT integration costs, and customisation challenges are eating up 40 per cent of the IT budget in integration expenditures."
The benchmarking report says companies are taking three distinct approaches to SOA adoption. According to Aberdeen Group these are:
You will write functional specifications for message broker, produce project documentation and put in place plans to re-engineer middleware solutions ...
Ideally you will have strong SAP CRM experience in middleware and ideally have some interface exposure however this is not essential. SAP CRM ...
IBM DB2 Databases Should the candidate have any experience in the products below (or similar webserver, application server or middleware products) ...
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