1. Enterprise Integration Trends and the Role of Web Services Presentation to IRMAC January 15, 2003 Andrew Astor Vice President, Enterprise Web Services

2. Copyright 2003webMethods, Inc. Super-Trends in Integration  Heterogeneity  49 major applications on average  Integration consumes 33% of IT budgets  J2EE vs..NET? –From an integration viewpoint, it’s irrelevant

3. Copyright 2003webMethods, Inc. The Integration Imperative Integration has risen to the level of critical, strategic necessity for businesses of all types Source: Morgan Stanley CIO Survey October 2002

4. Copyright 2003webMethods, Inc. Super-Trends in Integration  Heterogeneity  Service Oriented Architecture  Business-focused  Mature, well-evolved architecture

5. Copyright 2003webMethods, Inc. Service Oriented Architecture  Subroutines  Structured Programming  Client/Server  RPC  Object Orientation  Components  Web Services The evolution of an old idea…

6. Copyright 2003webMethods, Inc. Super-Trends in Integration  Heterogeneity  Service Oriented Architecture  Integration Consolidation & Maturity  EAI, B2B  Web Services, Mainframe Access  BPM, Workflow  BAM, Portals, Development Tools  “Styles” of integration

7. Copyright 2003webMethods, Inc. Super-Trends in Integration  Heterogeneity  Service Oriented Architecture  Integration Consolidation & Maturity  Standards  Always succeed as markets mature –Reduced costs –Increased productivity –Reduced vendor lock-in –Reduced risk

8. Copyright 2003webMethods, Inc. Evolution of Enterprise Software Markets Time Value to Customers Standards-based, Mature Standards-based, Mature plus Value Adds Standards-based, Immature Proprietary, Mature Proprietary, Immature

9. Copyright 2003webMethods, Inc. Standards-based, Mature An Example – The Database Market Time Value to Customers Standards-based, Mature plus Value Adds Oracle (54%) Standards-based, Immature System R Proprietary, Mature IMS/DB, IDMS, dBase Proprietary, Immature File Access 1960 1970 1980 1990 2000 Oracle, Sybase, Informix, Ingres, Tandem, DB2, Microsoft

10. Copyright 2003webMethods, Inc. Evolution of Enterprise Software Markets Time Value to Customers Standards-based, Mature Standards-based, Mature plus Value Adds Standards-based, Immature Proprietary, Mature Proprietary, Immature 3 Lessons: Innovate new capabilities Lead standards development Embrace standards in products

11. Copyright 2003webMethods, Inc. Standards-based, Mature Standards-based, Immature The Integration Marketplace Time Value to Customers Standards-based, Mature Standards-based, Mature plus Value Adds webMethods and ?? Proprietary, Mature webMethods, Vitria, SeeBeyond, Tibco, Mercator Proprietary, Immature Crossworlds, NEON, Mercator 1995 1997 2003 2007 Today Cape Clear, Iona Web Services

12. Copyright 2003webMethods, Inc. What are Web Services?  Web services are application capabilities made available to other applications over the web.  “Loosely coupled software components that interact with each other dynamically via standard Internet technologies” – Gartner

13. Copyright 2003webMethods, Inc. Differing Perspectives  Development Tool Vendors – Code Web services using integrated development tools. Best for new or replacement applications.  Application Vendors – Exposing APIs as Web services. Customers write code to use these interfaces.  webMethods – Web Services are a means of integration; not an end in themselves. Generate them automatically, as part of your integration process.

14. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications J2EE Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization

15. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP TBD Standards-Based Integration

16. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP Standards-Based Integration

17. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP Enterprise Web Services Web Service-Based Integration

18. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP BPEL4WS XSLT XPATH BPEL4WS WS-Security WS-TxBPEL4WS OMI

19. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP BPEL4WS WS-Security WS-TxBPEL4WS OMI BPEL4WS XSLT XPATH

20. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP BPEL4WS OMI BPEL4WS XSLT XPATH BPEL4WS WS-Security WS-Tx

21. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP OMI BPEL4WS XSLT XPATH BPEL4WS WS-Security WS-TxBPEL4WS

22. Copyright 2003webMethods, Inc. Evolution of Integration Technology Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP BPEL4WS XSLT XPATH BPEL4WS WS-Security WS-TxBPEL4WS OMI

23. Copyright 2003webMethods, Inc. Continued Innovation at “Top of Stack” Applications Interoperability Data Transformation & Business Logic Security, Reliable Messaging & Transactions BPM & Workflow Management & Optimization J2EE WSDL SOAP BPEL4WS XSLT XPATH BPEL4WS WS-Security WS-TxBPEL4WS OMI Business Activity Monitoring Web Service-Based Integration

24. Copyright 2003webMethods, Inc. Today’s Web Service Standards – Just the Tip of the Iceberg Management Workflow SOAP WSDLXML Transactional Integrity Security Business Process Modeling Data Transformation The Common View Falls Short of What’s Required for Mission-Critical Business

25. Copyright 2003webMethods, Inc. WSBI Is Built For The Enterprise WSBIWeb ServicesEnterprise Integration WSBI = Web Services + Enterprise Integration Massively Scalable Architecture  Massively Scalable Architecture  Cross-Resource Business Process Management  Native Support for non-Web Standard Resources  Data Transformation  Human Workflow & Personal Portal Support  Proven Security Model  Comprehensive Systems Management  Business Activity Monitoring

26. Copyright 2003webMethods, Inc. webMethods – First with Web Services  Built for Service-Based Integration across the Web  webMethods means Web services  Pioneer in XML, leader in most standards bodies  SOAP, WSDL, Security, Business processing, etc.  Record of early standards incorporation into product  Unique value proposition:  Mature integration platform,  Offered by standards leader,  Built on a Web services-based architecture webMethods = Web Service-Based Integration

27. Copyright 2003webMethods, Inc. 1996 XML/B2B Invented message broker Pioneered XML for B2B Partnered with MS in first designs of SOAP Proposed WIDL, a pre-cursor of WSDL, to W3C 1997 SOAP/WIDL Thought and Standards Leadership 1997199819992002200119962000 Founding member UDDI SOAP 1.2 / XMLP Co-author SOAP with attachments 1st XML Schema Support 1st unified B2B/EAI offering 2000 B2B EAI SOAP Co-submitted WSDL 1.1 to W3C Co- submitted XKMS to W3C WG - SOAP Routing & Reliable Msg Extensions WG -Web Services Coord. Group Co-authored ebXML messaging 2001 XKMS WSDL SOAP Co-Authored OMI standard W3C WSDL, SOAP, and Architecture working groups WS-I and SOAPBuilders 1st UCCNet certification 1st with full UAN support 2002 OMI Standard 1st RosettaNet Architecture Partner Co-developed XQL with Microsoft 1998 XQL Chief architect for RosettaNet Expert member, JSR XML Data Binding 1999

28. Copyright 2003webMethods, Inc. Standards Based Integration Java J2EE, JMS, EJB, JCA, JDBC, JNDI, JTA, JSP XML cXML, ebXML, XPATH, XSLT, XQL, XML Schema Web Services SOAP, UDDI, WSDL, WSFL, BPEL4WS EDI VANs, ANSI x.12, EDIINT, EDAFACT eStandards RosettaNet, HIPAA, UCCNET, SWIFT, CIDX

29. Copyright 2003webMethods, Inc. WSBI – Web Services Done Right  Enterprise-class solutions embrace and surpass current WS standards  Protects legacy system investments  Any service can be exposed as a Web service  Any service can call any Web service  Lowers total cost of integration  Develop Enterprise Web Services with no coding  Extensive run time monitoring and optimization  Future proof – Ready for additional standards as they develop

30. Copyright 2003webMethods, Inc. Sampling of Production WSBI Customers  AT&T  Avnet Computer Marketing  Bank of America  D&B  Dell  Future Electronics  Met Life  NEC Electronics

31. Copyright 2003webMethods, Inc. Met Life - Conceptual Architecture Customer Touch-points Customer Financial Services Representative Financial Services Representative Shared Business Processes Shared Business Processes Call Center Representative Call Center Representative MetLife e-Commerce Portal MetLife e-Commerce Portal Customer Service Representative Customer Service Representative Broker VRU Statusing Doc Generator CRM Customer Record Maintenance Customer Record Maintenance Administrative Processes Administrative Processes ERP Process ERP Process Financial Process Financial Process

32. Copyright 2003webMethods, Inc. Future Electronics - WSBI is a competitive advantage, providing real-time global information Leader and innovator in marketing and distribution of semiconductors and other electronic components. Operates from 155 offices in 35 countries. 2001 revenues $2.9 billion.  Identifying common business functions and exposing as services, for use by multiple systems and audiences. Integration Broker (webMethods) Tandem WMS Vastera Oracle Data Whse Coyote Web Catalog SRM GetPaid I2 Discovery E-Catalog CRM New WMS Mail MA

33. Copyright 2003webMethods, Inc. Looking into the Future  Removal of proprietary protocols  Like HTML remove proprietary layout  Network APIs specified in WSDL  An “application dial-tone”  Semantic alignment  Agreement on what things mean would allow plug-n-play applications  To what degree is this possible?  Portable implementations  Standards-based  True network applications

34. Copyright 2003webMethods, Inc. Pragmatics – Actions to Pursue Today  Put a Service Oriented Architecture (SOA) into place  Web services are part of an SOA  Develop an integration strategy that includes Web services  Web services are part of an Integration Strategy  Start developing Web services now, but stay pragmatic  Not everything can or should be a Web service – Especially Today!  Insist on standards and innovation, simultaneously ?

35. Copyright 2003webMethods, Inc. WSBI – A Summary  Web services are an evolution, not a revolution  The first step toward integration standards  Web Service-Based Integration protects investments  Past, Present, and Future  Any lasting solution must be standards-based  Three big steps before the industry reaches a total solution  Advice  Develop an integration strategy; stay pragmatic

36. Thank You. andy.astor@webMethods.com