Embracing SOABy Allan Alter | Posted 07-19-2007
SMBs Commit to Web Services and SOA
Small and midsize businesses use SOA and Web services to move off legacy systems. Mid-market companies have been slower than larger companies to adopt service architectures, but they aren't far behind. And by "adopt," we don't mean dabble. Most have made Web services and SOA part of their IT architectures. Earlier CIO Insight research found that Web services and SOA let companies move away from legacy enterprise applications; this month's survey confirms this is especially true for mid-market companies, while larger companies are more likely to use these technologies to extend the lives of their legacy systems.
Web Services Spawn Wave of Upgrades
Back-office applications are among popular targets. Many midsize firms have upgraded customer service, business process, customer relationship management and analytic applications to exploit Web services and SOA. However, mid-market firms are more likely than larger ones to upgrade their enerprise resource planning and human resources applications. These upgrades aren't cheap: Our February 2007 Spending Survey found ERP spending rose 6.3 percent among mid-market users. Upgrade costs help explain why Web services and SOA don't meet their cost-cutting expectations.