Software's SOA buzz yielding dividends

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Although a build-it-yourself approach generally favors middleware vendors, packaged applications companies are pursuing an SOA strategy as well.

SAP's NetWeaver software and its Enterprise Services Architecture are designed to make its business process applications easier to configure and combine.

Rival Oracle is investing in its Fusion Middleware to create a common SOA underpinning for its business applications. In addition, Microsoft is seeking to unify its several application products using service-oriented concepts, according to AMR Research's Gaughan.

"I wouldn't say that there are a lot of examples of demonstrated success or return on investments (from SOAs). But a lot of people recognize this is where the software market is going."

--Dennis Gaughan, analyst, AMR Research

Oracle and Microsoft can each benefit from the SOA trend by selling both applications and their own middleware and tools as well, Gaughan said.

For smaller companies, the adoption of Web services and SOAs has created opportunities to fill cracks left unfilled by larger vendors. For instance, there are several smaller companies that build tools to manage Web services networks or create a registry of shared services.

For all the activity, though, service-oriented architecture isn't the answer in many cases.

One enterprise architect at an East Coast insurance firm recounted an incident where a businessperson suggested using an SOA, even though the benefit was not clear.

"There is a lot of ignorance about what an SOA is and is not, and you get people who hear the buzzword and think it's a panacea," said the architect, who wished to remain unnamed because of company policy. "A lot of times, you can cause as much damage as help."

Still, some analysts say that software projects--and spending--will increasingly focus on service-oriented architectures. Market research firm IDC, for one, said SOA-related services will reach $8.6 billion this year, more than double last year's spending, and grow to $34 billion by 2010.

"I wouldn't say that there are a lot of examples of demonstrated success or return on investments" from SOAs, Gaughan said. "But a lot of people recognize this is where the software market is going."

CNET News.com's Mike Ricciuti contributed to this report.

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I found this interesting precursor article

What a coincidence? I just finished reading this excellent article (<a class="jive-link-external" href="http://www.sda-asia.com/sda/article/psecom,id,102,srn,1,nodeid,1,_language,Singapore.html" target="_newWindow">http://www.sda-asia.com/sda/article/psecom,id,102,srn,1,nodeid,1,_language,Singapore.html</a>) by Martin Chee (on SDA Asia: <a class="jive-link-external" href="http://www.sda-asia.com/" target="_newWindow">http://www.sda-asia.com/</a>)) on how the right SOA investments will yield the right dividends, and here you already have one that tracls how software's SOA buzz is yielding dividends. Way to go SOA!!