Offering regional and national programs, CIO (and CSO) events bring together some of the most respected names and thought leaders in information technology and security. Presented by CIOs and other senior level executives, these invitation-only programs offer timely topics and strong networking. Learn More »
Public Council Teleconference: Application Rationalization — Hidden Costs and Smart Decisions
November 17 at 11:00 am US/Eastern (GMT-5)
Join Honorio Padrón, of The Hackett Group, who will share the drivers for companies to tackle application rationalization and the results of research that define the hidden cost of complexity. Additionally, we will discuss key decision milestones—to start or not, holding the course steady and fulfilling expectations.
Virtual Desktop Cost-Benefit Analysis — Michael Jacobs, Catlin Group
The analysis contained in this presentation measures the cost of everything from the machines and licenses to the infrastructure for virtual vs. traditional desktop environments.
Honor your best senior team members - Apply for the CIO Ones to Watch Award
Get well-earned public recognition for your top up-and-coming team members, your IT organization and your enterprise. Award winners will be announced, publicized and feted in May 2010, great timing to help attract new IT recruits to your company.
Learn more about the CIO Executive Council »March 15, 2004 — CIO —
Coding is the easy part of creating almost any enterprise app. The hard part is modeling the business process: Purchase order A goes from point B to point C to be signed by party D so that the approved amount can be deducted from account E. But what if the PO never makes it to point C? What if account E is closed?
The complexity of "simple" business processes yields requirements documents as thick as phone books (or, conversely, explains why some people get sick of pestering IT and write their own rogue applications). The intricacies of business logic also explain why enterprise application companies such as SAP and PeopleSoft continue to prosper.
The application giants are basically vast repositories of business logic , extending deep into vertical industries. The whole ERP proposition promotes that customers buy logic instead of build it. And the high-profile ERP failures have stemmed mainly from monolithic, inflexible collections of business logic that couldn’t possibly fit all circumstances.
The app vendors are doing better at easing customization and crafting meticulous, industry-specific versions. But the ultimate compromise between building from scratch and buying monolithic ERP has been obvious for a while: Break the monoliths into many manageable components that can be modified, mixed and matched. Yet the big enterprise app vendors have been less than enthusiastic. SAP has gone furthest, letting developers modify and recombine R/3 components?but only when the reconstituted apps run on SAP’s own NetWeaver platform.
If the app vendors insist on that kind of control, why not abstract the functionality of their business logic using Web services? After all, the desire to recycle existing, well-crafted business logic is arguably the main driver behind today’s biggest metatrend: service-oriented architecture (SOA). Most big commercial enterprise apps now offer Web services interfaces, usually through a bundled app server.
The problem is that remotely accessing the business logic of (instead of simply extracting data from) a business application means you add to your licensing fee. For example, SAP sells "portlets," mini apps that run on several major portal servers, that export various pieces of R/3 functionality. In fact, the big app vendors see spreading their application functionality around the organization as a highly promising revenue opportunity.
Portlets have a standard licensing structure, but the licensing details on exporting business logic via more organic integration methods remain sketchy. When I asked an SAP marketing director to comment, he wouldn’t speculate on where the lines will be drawn. But Gene Phifer, vice president and distinguished analyst for Gartner, has a good feel for what’s happening. "The vendors are leaning toward a model where they charge for that kind of access as a user license," he says. "And if you license it by the number of users versus the number of CPUs, then they can stick you with a significant bill. Users, on the other hand, are fighting that [plan] tooth and nail."