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October 13, 2006

Comments

Neil Kenealy

Hi Steve,

There are many ways that customers can skin the SOA cat and I think you have chosen one way of purchasing Artix – buying small and scaling up according to your needs. Our customers tend to use a wide variety of purchasing models. It all depends on how customers want to plan their roll out. Our technology doesn’t require a large stack and is not a hub and spoke approach so incremental adoption is possible but not necessary. First, I can show you how extendible purchasing doesn’t have to drive an organisation insane and then give you an example of a different approach.

SOA done right is a long-term proposition and IONA’s technology lends itself to a gradual rollout as opposed to using a large scale stack which would require expensive infrastructure build out up front and would not deliver early stage profits. To begin the process, organizations need to choose the high value projects and incrementally adopt their SOA infrastructure so that the upfront investment is minimal and the returns on investment are significant. Then as initial investments begin to pay dividends they are funneled into building out more SOA infrastructure. The profits from the early investments in SOA would be funneled to fund process changes such as requirements gathering for more services. The model is self-perpetuating so it will make it much easier to go back to purchasing since you can justify the expense in their language.

Another way of approaching the SOA rollout is to use our Value Assessment Program http://www.iona.com/solutions/value/delivery_process.htm which requires only 40 hours of customer time and can identify upwards of $10 million in savings per project. The Program is the result of examining middleware operations and establishing best practices within hundreds of large-scale IT organizations.

These are just two economic models that can be applied to our technically incremental approach to SOA build out. No economic model is precluded.

Neil Kenealy
IONA Technologies

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