Monthly Archives: May 2009

The Scoop: Oracle swallows Sun

Gavin Clarke (Editor @ The Register), Rob Janson (President @ Enterprise Java Australia) and myself are on Mark Jones’ The Scope this week.

For loyal Sun customers and industry watchers, it was almost unthinkable – Oracle buying Sun. Sun Microsystems is one of Silicon Valley’s iconic technology companies, and Oracle doesn’t do hardware. And Sun was proud to wear the underdog badge. But the proposed acquisition raises fresh questions about the long-term health of the industry’s dominant suppliers. What’s the future hold for Oracle & Sun customers?

  • Oracle license inspections – costs to rise? What about Oracle’s famed licensing complexity. Will this get any better?
  • Consolidation problems: Will customer service deteriorate and product innovation wane?
  • What of Java – what’s Oracle likely to do with this prized jewel?
  • Did Oracle buy more problems than opportunities? (Sun’s debt, poor revenues…)
  • Enterprise app consolidation leaves CIOs with fewer choices: how will they bargain with suppliers now?
  • Larry Ellison said he wouldn’t buy Sun, or a hardware company, back in 2003. What changed? Does this mean that Oracle is likely to divest itself of Sun’s hardware business once the acquisition is completed?
  • What the growth engines for Oracle now – hardware/servers appear to have little headroom for serious growth.

About The Scoop

The Scoop is an open, free-flowing conversation between industry peers. It’s about unpacking issues that affect CIOs, senior IT executives and the Australian technology industry. The conversation is moderated by Mark Jones, The Scoop’s host and producer. More information about The Scoop, including a list of previous guests, can be found here:

http://filteredmedia.com.au/about-the-scoop/

What we’re doing today is not what we did yesterday

Telxon
Telxon hand unit

The business of IT has changed radically in the last few years. Take Walmart for example. In the 80s Walmart laid the foundations for its future growth by fielding a supply chain data warehouse. The insight the data warehouse fueled their amazing growth to become the largest retailer in the world. However, our focus has moved on from developing applications. More recently Walmart fielded the Telxon, a barcode scanner with a wireless link to the corporate back-end. This device is the front end of a distributed solution which has let Walmart devolve buying decisions to the team walking the shop floor.

For a long time IT departments have defined themselves by their ability to deliver major applications into the enterprise. CRM, MRP, even ERP; all the three letter acronyms. For a long time this has been the right thing to do. Walmart’s data warehouse, to return to our example, was a large application which was a significant driver in the company’s outlier performance for the next couple of decades.

The world has changed a lot since that data warehouse went operational. First the market for enterprise applications grew into the mature market we see today. If you have a well defined problem—an unsupported business activity—then a range of vendors will line up to provide you with off-the-shelf solutions. Next we saw a range of non-technology options emerge, from business process outsourcing (BPO) and leveraging partnerships, through to emerging software-as-a-service (SaaS) solutions.

What used to be a big problem—fielding a large bespoke (or even off-the-shelf) application—has become a (relatively) small one. Take CRM (customer relationship management) as one example. What was a multi-year project requiring an investment of tens of millions of dollars to deploy a best-of-breed on-premises solution, has become a few million dollar and a matter of months to field SaaS solution. And the SaaS solutions seem to be pulling ahead in the feature-function war; Salesforce.com (one of the early SaaS CRM solutions) is now seen as the market leader (check with your favorite analyst).

Nor has business been standing still while technology has been marching forward. The productivity improvements provided by the last generation of enterprise applications have created the time and space for business stakeholders to solve more difficult problems. That supply chain solution Walmart deployed that was the first of many, automating most (if not all) of the mundane tasks across the supply chain. Business process methodologies such as LEAN (derived from the Toyota Production System) and Six Sigma (from GE) then rolled through the business, ripping all the fat from our supply chains as they went past. The latest focus has been category management: managing groups of product as separate businesses and, in many chases, handing responsibility for managing the category back to the supplier.

Which brings us back to the Telxon. If we’ve all been on the same journey—fielding a complete set of applications, optimizing our business processes, and deploying the latest, best practice, management techniques—then how do we differentiate? Walmart realized that, all things being equal, it was their ability to respond to supply chain exceptions that would provide them with an edge. As a retailer, this means responding to stock-outs on the shop floor. The only way to do this in a timely manner is to empower the people walking the floor to make a procurement decision when they see fit. Walmart’s solution was the Telxon.

The Telxon is an interesting device as it reveals an astonishing amounts of information: the quantity that should be on the shelf, the availability from the nearest warehouse, the retail price, and even the markup. It also empowers the employee to place an order for anything from a pallet to a truck-load.

Writer
Writer Charles Platt during his stint as a Wal-Mart employee in Flagstaff, Ariz.

As one journalist found:

We received an inspirational talk on this subject, from an employee who reacted after the store test-marketed tents that could protect cars for people who didn’t have enough garage space. They sold out quickly, and several customers came in asking for more. Clearly this was a singular, exceptional case of word-of-mouth, so he ordered literally a truckload of tent-garages, “Which I shouldn’t have done really without asking someone,” he said with a shrug, “because I hadn’t been working at the store for long.” But the item was a huge success. His VPI was the biggest in store history—and that kind of thing doesn’t go unnoticed in Arkansas.

Charles Platt, Fly on the Wall (7th Feb 2009), New Your Post

Clearly the IT world has moved on since that first data warehouse went live in Arkansas. Enterprise applications have been transformed from generators of competitive advantage into efficient sources of commodity functionality. Technology’s ability to create value should be focused on how we effectively support knowledge workers and the differentiation they create. These solutions only have a passing resemblance to the application monoliths of the past. They’re distributed, rather than centralized, pulling information from a range of sources, including partner and public sources. They’re increasingly real time, in the Twitter sense of the term, pulling current transactional data in as needed rather than working from historical data and relying on overnight ETLs. They’re heterogeneous, integrating a range of technologies as well as changes in business processes and employee workplace agreements, all brought together for delivery of the final solution. And, most importantly, they’re not standalone n-tier applications like we built in the past.

But while the IT world has moved on, it seems that many of our IT departments haven’t. Our heritage as application factories has us focused on managing applications, rather than technology, actively preventing us from creating this new generation of solutions. This behavior is ingrained in our organizations, with a large number of architects through project managers to senior management measuring their worth by the size of the project (in terms of CAPEX and OPEX required, or head count) that they are involved in, with the counter productive behavior that this creates.

In a world where solutions are shrinking and becoming more heterogeneous (even to the extent of becoming increasingly cross discipline) our inability to change ourselves is the biggest thing holding us back

Innovation [2009-05-18]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

This issue:

We’re making our lives too complicated

Has SOA (Service Oriented Architecture) finally jumped the shark? After years of hype and failed promises, SOA seems to be in trouble. In a few short months it’s gone from IT’s great savour to something some people think is better forgotten.

The great promise of SOA was to deliver an IT estate which is more agile and cost effective than was possible with other, more conventional, approaches. By breaking our large problems into a set of much smaller ones, we would see more agility and a low total cost of ownership. The agility would come from the more flexible architecture provided by SOAs many moving parts. A lower cost of ownership would come from reuse of many of these moving parts. Many companies bought into this promise, and started major SOA transformation programs to “SOA enable their business”. Once the program of work was delivered they would have a shiny new flexible, and cost effective IT estate. The business would be thrilled, and the old tensions between business and IT would just melt away. More often than not the business wasn’t thrilled as the program failed to deliver the promised benefits.

The problem, it seems, is that we’re focused on creating cathedrals of technology. Cathedrals were the result of large bespoke development efforts. The plans often consisted of only a rough sketch on a scrap of paper, before a large number of skilled craftsmen were engaged. The craftsmen broke the problem into many small parts that were then laboriously assembled into the final structure, often adjusting the parts to fit in the process. While this process created a number of spectacular buildings, the journey from initial conception to completed build was long and challenging.

The lack of engineering pragmatism frequently resulted in cathedrals collapsing before they were finished, often multiple times. The reason we know that a flying buttress worked was because it hadn’t failed, yet. People died when a structure collapsed, and there was no way of telling if the latest version of the structure was about to collapse. The lengthy development process often lasted generations, passing through the stewardship of multiple architects with no clear end in sight. Many cathedrals, such as the one in New York, are still considered unfinished.

A lot of SOA projects give off a strong smell of cathedral. They are being constantly re-architected—while still in development—to cope with the latest business exception or demand. When they’re introduced to the hard reality of supporting solutions bits of them collapse and need to be rebuilt to support our new (and improved) understand of what will be demanded of them. And, finally, many of them are declared “finished” even though they are never fully baked, just so we can close that chapter in our company’s history and move onto the next problem.

Modern approaches to building construction take a different approach. A high level plan is created to capture the overall design for the building. The design is then broken into a small number of components, with the intention for using bespoke craftsmen for the fine details that will make the building different, while leveraging large, commoditized, pre-fabricated components for the supporting structures that form the majority of the building. Construction follows a clear timetable, with each component—from the largest pre-fabricated panel through to the smallest detail—integrated into the end-to-end solution as it is delivered. Complexity and detail were added only where needed, with cost effective commoditized approaches minimizing complexity elsewhere. A clear focus on the end goal is maintained throughout the effort, while clear work practices focused on delivering to the deadline ensure that the process was carried out with a minimum of fuss (and no loss of life).

The problem, it seems, is that we’re confusing agility with flexibility. The business is asking for agility; the world is changing faster than ever and the business needs to be in a position to react to these changes. Agility, or so our thinking goes, requires flexibility, so to provide a lot of agility we need to provide a lot of flexibility. Very soon we find ourselves breaking the IT estate (via our favorite domain model) into a large number of small services. These small parts will provide a huge amount of flexibility, therefore problem solved!

This misses the point. Atomizing the business in this way creates overhead, and the overhead soon swamps any benefit. The effort to define all these services is huge. Add a governance process—since we need governance to manage all the complexity we created—and we just amplify the effect of this overhead. Our technically pure approach to flexibly is creating too much complexity, and our approach to managing this complexity is just making the problem worst.

We need to think more like the architect of the modern prefabricated building. Have a clear understanding of how the business will use our building. Leverage prefabricated components (applications or SaaS) where appropriate; applications are still the most efficient means of delivering large, undifferentiated slabs of functionality. And add complexity only in those differentiating areas where it is justified, providing flexibility only where the business needs. In the end, creating good software is about keeping it simple.  If it’s simple, it gets done quickly and can be maintained more readily.

Above all, favor architectural pragmatism over architectural purity. The point of the architecture is to support the business, not to be an object of beauty.

The Value of Enterprise Architecture

Note: Updated with the slides and script from 2011’s lecture.

Is Enterprise Architecture in danger of becoming irrelevant? And if so, what can we do about it?

Presented as part of RMIT’s Master of Technology (Enterprise Architecture) course.

The Value of Enterprise Architecture

Innovation [2009-05-04]

Another week and another collection of interesting ideas from around the internet.

As always, thoughts and/or comments are greatly appreciated.

This issue: