1. Copyright ©2010 by INPUT. All rights reserved. Federal Trends in Service-Oriented Architecture (SOA) Deniece Peterson Manager, Industry Analysis INPUT May 6, 2010

2. Copyright ©2010 by INPUT. All rights reserved. 2 Agenda INPUT Research: Emerging Technology Markets SOA Relationships Driving Growth SOA Trends and Issues Conclusions and Recommendations Q&A

3. Copyright ©2010 by INPUT. All rights reserved. 3 INPUT Research Scope & Methodology Analysis of five technology areas poised to greatly impact the federal government in the next five to ten years: Cloud Computing Virtualization Service Oriented Architecture (SOA) Open Source Software (OSS) Geospatial Technologies INPUT bases its analyses/forecasts on: FY2010 OMB A-11 and Exhibit 53 budget requests INPUT’s Federal Opportunities database Federal Procurement Data System data Vendor IRS filings Agency Plans Surveys of federal government IT organizations Interviews with government and industry experts ScopeMethodology

4. Copyright ©2010 by INPUT. All rights reserved. Why These Five? These five technology solutions/architectures are changing the federal IT landscape. These solution areas address common goals of the administration: Cost Savings Operational/Process Efficiency Energy Efficiency Information Sharing/Interoperability Transparency Agility/Flexibility 4 While the technologies/solutions themselves are not “emerging,” (i.e. brand new innovations), the use of these solutions are emerging as the federal government plans its technology transformation.

5. Copyright ©2010 by INPUT. All rights reserved. INPUT Survey: Agencies Perceive These Technology Solutions As High Impact 5 Source: INPUT survey Percentage of federal respondents rating the impact of these technologies as a “4” or a “5,” where 1=No Impact and 5=Major Impact. n=37

6. Copyright ©2010 by INPUT. All rights reserved. Geospatial Technologies Interrelationship Among Technology Areas Will Drive Growth 6 Cloud Computing Open Source Software (OSS) Cloud Computing: Allows scalable, on- demand access, processing, and visualization of geospatial data. SOA: Delivery of geospatial content via web services Virtualization: Reduces costs by virtualizing GIS servers OSS: Build and customize geospatial tools (e.g. spatially- aware databases, mapping apps, development platforms) Underpins Cloud Computing to provide service-oriented delivery via the cloud Leverages open source for SOA solutions (e.g. Enterprise Service Bus, Business Process Management, portals, etc. Provides cost benefit and ability to build and customize private clouds Open source alternatives reduces transition costs Virtualization enhances SOA by spreading workloads across multiple servers Provides a more automated, standardized and efficient foundation for delivery of services via the cloud Service-Oriented Architecture (SOA) Virtualization

7. Copyright ©2010 by INPUT. All rights reserved. 7 SOA Trends and Issues

8. Copyright ©2010 by INPUT. All rights reserved. SOA Explodes the Concept of the Application into a Highly Dynamic and Fluid Marketplace of Services 8 User Interface System Functions Fixed Procedures Databases APIs Traditional Application Model Provider A Client Requests Service Provider G System Functions Fixed Procedures Provider H System Functions Fixed Procedures Provider I System Functions Fixed Procedures Provider D Provider E Provider F Aggregator Services Provider A Provider B Provider C User Interface SOA Service Model Provider J Provider KProvider L

9. Copyright ©2010 by INPUT. All rights reserved. 9 INPUT Survey: Stage of Implementation/Use of SOA Source: INPUT survey n=37 Margin of Error: +/-3%

10. Copyright ©2010 by INPUT. All rights reserved. INPUT Survey: Primary Driver of SOA Adoption 10 Source: INPUT survey n=89 Margin of Error: +/-6%

11. Copyright ©2010 by INPUT. All rights reserved. INPUT Survey: Primary Obstacle to SOA Adoption 11 Source: INPUT survey n=89 Margin of Error: +/-5%

12. Copyright ©2010 by INPUT. All rights reserved. INPUT’s View - Agency Implications 12

13. Copyright ©2010 by INPUT. All rights reserved. INPUT’s View - Industry Implications 13

14. Copyright ©2010 by INPUT. All rights reserved. SOA Implications for Federal Procurement 14 Software Developers Contracts Systems Integrators Incremental projects a perfect fit for task orders, which limits visibility SOA increasingly incorporated into “next generation” contract vehicles Consolidation of SW and services evaluations into single market research effort Potential changes to RFP/SOO: more focus on outcomes, reqmts to reuse assets; stricter SLAs/metrics Some focus shifted away from ERP/CRM to processes Expanded SW categories BPM Services repositories Automated governance Web services mgmt tools Dynamic component testing Changes to pricing/packaging SaaS Tiered/variable Volume/daily fees vs. seat licenses More frequent major updates Subscription/metered billing Incremental projects replace large- scale projects Labor-intensive SI work replaced with pre-configured templates, reusable, standards-based solutions Expanded integration categories: SOA strategy development Service ID IT architecture/infrastructure design Service process design, dev., and orchestration Training Testing

15. Copyright ©2010 by INPUT. All rights reserved. INPUT Survey: Plans for Obtaining/Sustaining SOA 15 Source: INPUT survey n=89 Margin of Error: +/-6%

16. Copyright ©2010 by INPUT. All rights reserved. SOA Implementations 16 Source: INPUT

17. Copyright ©2010 by INPUT. All rights reserved. Service-Oriented Architecture Market Evolution 17

18. Copyright ©2010 by INPUT. All rights reserved. Federal Service-Oriented Architecture Market, FY2009-2014 18 Source: INPUT Total Market CAGR – 17%

19. Copyright ©2010 by INPUT. All rights reserved. 19 Conclusions and Recommendations

20. Copyright ©2010 by INPUT. All rights reserved. INPUT’s Take - SOA SOA is fairly mature in the federal marketplace, but implementation and conversion are still fragmented and incremental Cloud computing will make the SOA sell easier SOA makes it easier to analyze and assess the services and elements of the IT architecture that make the best candidates for cloud computing Agencies will face challenges in on-boarding innovative solutions under stricter performance and budgetary pressures SOA fundamentally changes how agencies acquire technology; they may struggle with the transition to operating in a “marketplace of services.” SOA will force agencies to examine business processes, which could uncover new opportunities for integration However, some labor-intensive systems integration practices will be replaced with pre-configured templates and standards-based solutions Cross-agency sharing of services enabled by SOA will present some competition to vendors 20

21. Copyright ©2010 by INPUT. All rights reserved. 21 Growth Will Come from Expanding Scope vs. Greenfield Opportunities

22. Copyright ©2010 by INPUT. All rights reserved. Recommendations – SOA Be prepared to sell within a new economic/business model centered around plug-and-play service modules Standardization will limit the proprietary features used for competitive advantage Develop SOA-ready solutions to gain a competitive edge: Pre-built SOA architecture solutions Business process management Assessment tools Education and training Make SOA a technical and business case, especially in relation to cloud computing Ensure that your solutions can be easily integrated within agencies’ existing and future SOA environments Address the five roadblock to SOA: security, governance, change management, process management and project management 22

23. Copyright ©2010 by INPUT. All rights reserved. 23 Q&A www.input.com