Simon Holloway

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The Integration Market
Title
Simon Holloway Chief Technology Officer Holloway
Consulting
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Integration is everywhere
Whenever you buy, build or enhance
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Enterprise Reality
Human Resources
ERP
Customer Service
Financial Services
Supply Chain
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The Real Integration GoalIntegrating processes,
not just systems
Inventory
Order Management
ERP
Distribution
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Business Integration Defined
Business Integration is a set of services and
technologies that turns disparate applications,
business processes and data into a cohesive
resource, enabling an organization to deliver
services on demand through increased agility and
effective processes.
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Market Trends

• Application servers will commoditize in the next
  three years but, along with integration brokers,
  will remain the centerpiece of any e-business
  platform. (Meta)
• The role of corporate IT continues to shift from
  application development to application
  integration. (Meta, Gartner)
• Integration services will evolve from
  intra-enterprise-focused message brokering to
  B2B-focused, event-driven business process
  automation.
• B2B Integration and EAI will over time both
  become an integral part of integration vendor
  products and e-business platforms. (Gartner)
• Industry consolidation will only accelerate
  (Marketplace dynamics)
• Point product vendors will get squeezed (Meta,
  Gartner, Giga)

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Integrationware Players
Message
User Interface
Process
B2B
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Application Integration
5th May 2003
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Web Services
Source Gartner Oct 2002
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What should a Business Integration Server include?

• Business Process Definition
• Support for open standards such as Rossetanet,
  ebXML, BPML, WSCI
• Environment management
• System Management capability for process,
  messages backbone
• SHARP engine
• Messaging
• Based on open standards in terms of both
  protocols ( ie HTTP, HTTPS, JMS), message content
  (XML) and message transformation (XSL, XSLT)
• Development Environment
• Integrated development platform comprising
• Process builder
• Open Standard Language code development
• Wizard-based Adapter SDK supporting open
  standards (JCA, XML, SOAP)
• Identity Policy Management

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Ovum Integration scenario Categories

• Four integration scenarios - four requirements
• Service / information aggregation
• Data migration and reconciliation
• Process-driven enterprise integration
• B2B integration
• And the other ingredients required for a totally
  integrated business
• Collaboration
• Knowledge Management

Source Gary Barnett, Ovum, EAI 2002
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Butler Group Integration Model
Presentation Layer
Trading Partners
Business Process Layer
Process Integration
App (CRM)
App (ERP)
Web App
Application Server Layer
Technical Integration
Integration Layer
Database
Operating System
Source Butler Group, Integration Strategies,
March 2002
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Gartner Group Integrationware Stack
Source Roy Schulte , Gartner Group Application
Integration Making e-business work, Sept 2000
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Integration Market Size Growth
2000 - 2003 MOM CAGR 11 2000 - 2003 EAI B2B
CAGR 46
Source IDC Middleware BusinessWare Report -
June 2001
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Application Integration Market Forecasts -
Worldwide
Source Butler Group, Integration Strategies,
March 2002
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Application Integration Market Forecasts -
European
Source Butler Group, Integration Strategies,
March 2002
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Research Analysts Quotes

• Application integration will be the most
  important IS task during the next five years,
  because it is a fundamental requirement for
  getting distributed, semiautonomous business
  units to work together - Roy Schulte, Vice
  President, Gartner Group, May 2001.
• No Clear and Long-Term Leader in EAI Market -
  Henry Peyret, Mike Gilpin, Giga Information
  Group, April 2001
• Despite a slow start, integration now ranks at
  the top of the priority list for IT departments.
  Despite much rumored IT cutbacks, integration
  projects are moving forward - Gregg V. Rock,
  President, BrainStorm Group, Inc., April 2001
• Success in the new economy will require
  end-to-end integration of business processes -
  Trend Teleconference, Meta, January 2001.
• Although application servers acquire integration
  features, they will not eliminate the need for
  stand-alone integration brokers - Yefim Natis,
  Vice President, Gartner Group, May 2001.

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What Customers Care About

• Create cost-efficient business communities that
  substantially increase productivity
• Dramatically improve profitability by automating
  key business processes
• Increase return on their existing investments
• Build all projects in a flexible environment that
  protects them from future technology shifts

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Customer Purchasing Criteria

• Referenceable Customers
• Adapter support
• Business Process Management
• Standards based development environment
• Services through PS/SI

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Integration Market Summary

• Market penetration of integration products is
  extremely low
• Integration market is broadening Differentiation
  on vertical offerings
• Highly fragmented, still no complete solution out
  there, from any vendor
• Services revenues are between 5X-15X license
  revenues (Ovum/Wintergreen)
• Pure plays under pressure
• Falling prices, falling revenues
• Products/tools too complex
• Pushed beyond resources verticals, support,
  services
• Initial Focus of Web Services Integration
  (Gartner, AMR, Jupiter)

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Integration is hard

• Technically complexes
• Involves many different people and technologies
• Not right the first time
• Requires flexibility
• It is not only about data format transformation
  but also about custom business processes
• Can go against some peoples own interests
• Requires people to change

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Sun Web Services Solutions Master Class What are
Web Services?
The Integration Market
Simon Holloway SimonR.Holloway_at_virgin.net www.theh
olloway.co.uk 44(0)7973 712255