Webinar The Next-Generation Middleware: Hybrid² Integration Products Stefan Ried, Ph.D., Vice President, Principal Analyst April 22, 2014. Call in at 10:55 a.m. Eastern time

Today’s agenda Emerging integration use cases Hybrid clouds: benefits versus risks Evaluation criteria for product selection Four different perspectives for CIOs

Emerging integration use cases Image source: Shutterstock (http://www.shutterstock.com/)

We have entered the age of the customer Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report

Forrester’s four market imperatives are motivating new integration scenarios Transform the customer experience. Embrace the mobile mind shift. Age of the customer Turn big data into business insights. Become a digital disruptor.

Age of the customer example: microinsurance “SureNow” microinsurance Escape the insurance competition for some time. Transform the customer experience. Embrace the mobile mind shift. Become a digital disruptor. Turn big data into business insight, e.g., for fraud detection.

Context between systems of engagement and systems of record is the key integration challenge Systems of engagement guide people in their physical world. Context Systems of record host transactions in the virtual world. Source: November 16, 2012, “Great Mobile Experiences Are Built On Systems Of Engagement” Forrester report

Customer experience is enabled by the context between systems of engagement and systems of record

Hybrid clouds: benefits versus risks

Cloud computing by privacy and business model Public cloud Provider Business model Benefit Virtual private cloud Global provider Pure opex Low price! Economy of scale Local provider Pure opex Medium price + medium privacy Private cloud On-premises virtual Corporate IT CIO: capex LOB: opex IT is profit center. Total cost transparency and privacy On-premises physical Corporate IT IT is cost center. Industrialized operations Corporate IT IT is cost center. None any more Capex = capital expenditure, opex = operational expenditure, LOB = line of business

Hybrid Cloud Definition Forrester Research talks about hybrid clouds If enterprises use MULTIPLE cloud levels or providers for ONE business application, process, or workloads. Forrester Research does not call it a hybrid cloud If enterprises use DIFFERENT cloud levels or provides for SEPARATE business applications, processes, or workloads.

Business processes across hybrid clouds reflect the new “best-of-breed” trend Source: August 5, 2013, “Ten Myths And Realities Of The Software Market In 2013” Forrester report

Hybrid Landscapes Become The Norm “Which of the following middleware platforms are you planning to replace or complement with cloud middleware platforms (PaaS)?” Base: 582 North American and European software decision-makers who are involved in platform and infrastructure software (20+ employees) Source: Forrsights Software Survey, Q4 2013

Hybrid cloud example 2: retail banking Public cloud Virtual private cloud Online banking, mobile banking application Private cloud Middleware, caching, API mgmt. On-premises virtual Systems of record, transactional banking system On-premises physical Benefit: Affordable elasticity for public Web/mobile apps Risk: Application management, latency between layers

Six ways to integrate the cloud Source: November 12, 2013, “How Many Cloud Integration Technologies Do You Need?” Forrester report

Evaluation criteria for product selection

Integration in the cloud comes in two flavors iPaaS CBI

Cloud-based integration (CBI) and integration-centric PaaS (iPaaS) A complete application platform for multitenant cloud environments that includes development tools, runtime, and administration and management tools and services; PaaS combines an application platform with managed cloud infrastructure services CBI A multitenant integration service running in the cloud and providing data mapping and synchronization between cloud and cloud or cloud and on-premises business applications iPaaS  iPaaS capabilities include the ability to write business logic.

The Forrester Wave™: Hybrid² Integration, Q1 2014

Forrester Wave: Hybrid² Integration The Forrester Wave is a data-driven comparison of products or (cloud) services. We evaluate many criteria and deliver a complete spreadsheet with background information for every single score. The Forrester Wave: Hybrid² Integration is based on 50 criteria and evaluates 15 vendors with more than 40 products and hundreds of capabilities. Forrester clients can change the weightings to reflect their requirements — this delivers a personal Forrester Wave picture for each enterprise.

Inclusion criteria 1: four of these capabilities Application integration based on an enterprise service bus (ESB) as defined in “The Forrester Wave™: Enterprise Service Bus, Q2 2011” or low latency messaging based, for example, on JMS with latency equal or lower than 1 millisecond Data integration as introduced in the “Forrester TechRadar: Enterprise Data Integration, Q1 2010”; for example, ETL (extract transform load) B2B integration based on a B2B service as defined in “The Forrester Wave: B2B Service Providers, Q4 2009” or a licensed B2B technology handling major EDI formats Business process management (BPM) or business rules management (BRM); BPM as defined as support for dynamic case management, human workflow, and straight-through processing in the “The Forrester Wave: BPM Suites, Q1 2013” Cloud-based integration (CBI), which is defined as a multitenant integration service running in the cloud and providing data mapping and synchronization between cloud and cloud or cloud and on- premises business applications Integration-centric platform-as-a-service (iPaaS), which is PaaS plus CBI API management as defined in the “The Forrester Wave: API Management Platforms, Q1 2013” Internet of Things integration capabilities, such as support for special protocols, lightweight deployment on embedded devices, or prepackaged industry scenarios

Capabilities interoperating in hybrid² integration scenarios

Inclusion criteria 2 Basic market visibility in direct enterprise sales models: Forrester clients asked about the product in the past. Major market share Ability to show hybrid integration scenario in demos and references: Forrester provides evaluation scenarios, such as an EDI- ESB-data-integration scenario. Publicly available data about interoperability scenarios: For the “current offering” evaluation in the Forrester Wave, Forrester uses publicly available data exclusively.

Hybrid² integration challenge Source: May 1, 2013, “The Hybrid² Integration Challenge” Forrester report

Current offering

Current offering: section 2 INTEGRATION TECHNOLOGIES 1/2

Current offering: section 2 INTEGRATION TECHNOLOGIES 2/2

Strategy and market presence

Four different perspectives for CIOs

What’s a Forrester Wave weighting or perspective? Forrester Waves shows weighted scores: Weighted score = weighting x score The weighting simply gives the “importance” of a certain criteria in a perspective. Unique score per vendor Unique weight per perspective and criteria

Forrester Wave: Hybrid² Integration: Wide Integration, Q1 ’14 Wide integration is needed with very heterogeneous application landscapes. If your LOBs are demanding many SaaS applications, your integration scenarios will be complex across many different integration tools. But, many systems of record still remain on-premises. Current offering: Sections 1 and 3 were weighted stronger. Section 2 had a lighter weight. Source: February 14, 2014, “The Forrester Wave: Hybrid2 Integration, Q1 2014” Forrester report

Forrester Wave: Hybrid² Integration: Deep Integration, Q1 ’14 Deep integration is needed with traditional on-premises application landscapes. If the majority of your business applications remain on- premises, a deep understanding of each tool independently matters most. Current offering: Section 2 had the major weight. Section 4, “hybrid cloud capabilities,” had little weight. Source: February 14, 2014, “The Forrester Wave: Hybrid2 Integration, Q1 2014” Forrester report

Forrester Wave: Hybrid² Integration: Cloud Integration, Q1 ’14 Cloud integration is needed if the cloud becomes the main home of your business applications. The majority of business application will be replaced by SaaS applications. Line 30, “cloud-based integration (CBI),” in section 2 has a very high weight. Section 4 has an increased weight. SaaS partnerships for prepackaged adapters has a high weight. Section 4, “hybrid cloud capabilities,” has a high weight. Others (see spreadsheet) Source: February 14, 2014, “The Forrester Wave: Hybrid2 Integration, Q1 2014” Forrester report

Forrester Wave: Hybrid² Integration: Internet-Of-Things Integration, Q1 ’14 Internet-of-Things integration. Hybrid scenarios around connected things and enterprise or cloud-based applications: Current offering: Section 2, line 32, “capabilities supporting the Internet of Things,” has a high weight. Strategy: Line 51, “integration with the Internet of Things,” has a high weight. Others (see spreadsheet) Source: February 14, 2014, “The Forrester Wave: Hybrid2 Integration, Q1 2014” Forrester report

Forrester Wave — a profound methodology Here is the full Excel-based Forrester Wave tool for download!

Bring your own weighting Switch to custom weighting here. Weighting appears red if the sum is not equal to 100%, and the weighting is not valid!

Vendors 1/2: evaluated Adeptia represents an all-in-one integration product. Bosch Software Innovations (Bosch SI) leverages the synergies with the Bosch Group. Dell Boomi started as a CBI pure play and is trying to expand into enterprise integration. IBM invested in interoperability across its various integration products. Informatica’s roots are in enterprise data integration, but it has become a credible cloud player. Liaison has still not fully leveraged its acquisition of Hubspan. Microsoft added Windows Azure BizTalk Services and Service Bus to the BizTalk Server. MuleSoft is fully competing with major commercial middleware vendors. Red Hat acquired FuseSource and leverages many Apache open source projects. Seeburger offers application, B2B, and data integration as well as BPM out of a single tool. Software AG provides good interoperability between original webMethods products and multiple acquisitions. Talend merged open source data and application integration into one approach. Tibco Software took the lessons learned from its first cloud service, Tibco Silver. WSO2 has a balanced middleware product and cloud service strategy.

Vendors 2/2: not evaluated Actian acquired Pervasive Software and is an interesting consideration for SaaS ISVs. Aurea owns the Sonic ESB, Savvion BPM, and DataXtend SI data integration solution. Axway is targeting the hybrid2 integration market strategically but is not yet ready. Fiorano is a traditional ESB and mature SOA infrastructure. GXS’ B2B solution and Cordys’ BPM and PaaS platform are now under the OpenText roof. Hubwoo is too B2B-focused to address the broader scope of hybrid2 integration. Information Builders’ application and data integration products integrate with the cloud. Oracle publishes very little about its interoperability capabilities between different integration products. SAP is attempting to become a platform vendor again but is not a standalone integration vendor. SnapLogic is an important CBI alternative to Dell Boomi or Informatica Cloud.

Next steps Download the Forrester Wave™ tool. Create your own weighting. Request an inquiry call if you need help. Make future vendor selections based on your resulting priorities.

Thank you Stefan Ried, Ph.D. Vice President, Principal Analyst +49 69.959.29856 +1 650.581.3844 sried@forrester.com Twitter: @StefanRied blogs.forrester.com/stefan_ried forrester.com/Stefan-Ried www.forrester.com 40 Entire contents © 2009 Forrester Research, Inc. All rights reserved.