SOA and Unintended Market Consequences

June 14, 2007

SOA and Unintended Market Consequences

Now, I have been around the software world for longer than I would like to admit (I would be giving away my age if I told you). I have watched many trends come and go. The one consistent pattern that I see is the slow progression over the last 20 years towards distributed computing. There has been a lot of innovation – some that has resulted in some pretty interesting products and companies that made their mark on the world and then went away.


The advent of service-oriented architectures is not simply another fad with another set of products and services. I really believe that it will have the same long-term impact as the Internet did when it arrived on the scene as a commercial venture in the early 90s. If one thinks back to those days, many people had no idea of how this quaint piece of technology would actually be used in the commercial world. And, as we say, the rest is history.


Just as the Internet produced unintended consequences for the future of computing, I expect that SOA will too. It is my prediction that Service-Oriented Architectures will force a dramatic change in the balance of power in the software world – both on the vendor and the customer side. Why do I make this rash statement? Start by thinking about the implication of SOA. It is a dramatic change in the way software is created, reused, recombined, managed, and sold. From a customer perspective, SOA puts power in the hands of the business user.


So, what could change? First, in time, SOA will level the playing field. Today the major infrastructure vendors are all vying for control over who owns the customer’s infrastructure. Will SAP, Oracle, HP, IBM, Microsoft or an open source play, like JBoss be the winner? Will one of these companies convince enough customers to do it their way? Perhaps.


But I am envisioning a different possible scenario. Imagine that we get to the stage where vendors converge around codified standards such as XML and everything necessary for creating this highly distributed architectural framework. Imagine that there are enough good adapters that allow components from various environments to easily connect to each other. And now imagine that what customers really want to do is to reuse their existing software assets by encapsulating them into business services that are used over and over again to create new virtual applications.


If you follow my thinking here, it opens up interesting opportunities. Here are a few thoughts worth considering:


  • Customers will take SOA seriously – not just as a technology initiative but as a business strategy – they will demand that industry leaders cooperate to make the customers’ job easier.
  • New vendors will emerge that can leverage the SOA work done by infrastructure leaders to provide commercialized services address specific problems in specific vertical markets.
  • The first era of the industrialization of software is initiated. Vendors will begin to create modular offerings based on a SOA model that are designed to fit into existing frameworks (kind of like steering wheels that can be used on 20 different car models).
  • The packaged application that has been the mainstay of the software industry for the past 25 years begins to transform into these industrial packaging. In time – give us another 10 years – the traditional software package disappears.
  • SOA opens the door to a new world where Software as a Service is the norm. This transition will take at least 15-20 years. But it is real and will have a dramatic impact on the entire industry from financial models to the importance of comprehensive hosting providers.


This is a lot to consider. A lot of companies are trying to figure out whether SOA is real or just a passing fad. Will the words Service-Oriented Architectures soar as a lynch pin of the future or be edged out by new hot silver bullets? Given the history of the computer industry, it’s not surprising that people are nervous. After all, trends come and go at a rapid pace. I predict that this one is real. But let me warn you: it is not a quick fix. We are, in fact, at the beginning of a big emerging market trend that will have ripples in the software market for the next decade and beyond.




About Judith Hurwitz

Judith Hurwitz is an author, speaker and business technology consultant with decades of experience.

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