Java Reference
In-Depth Information
Understanding SOA ROI
Problem
Determining ROI for a traditional software project is different from determining ROI within a
SOA. You need to understand these differences.
Solution
The guidelines below may help you to find operational money from the general principles of
SOA. Or, you may determine that there is notsignificant ROI in SOA, and that it is rather a
cost of doing business.
Discussion
As SOAs wind their way into more and more enterprises, the question of ROI becomes un-
avoidable. Many industry analysts and stack vendors (who, surprise! have a bunch of SOA
software they're happy to equip you with) imply that the ROI in SOA is significant, but also
suggest that the value is deferred until the benefits of reuse can be assessed. This recipe ex-
plores the reasons for this.
At the end of this recipe, we'll examine the contrarian view that suggests that you can't de-
termine the ROI associated directly with SOA because the question itself is inappropriate.
ROI in traditional software projects
The return on investment for a traditional software project is simpler to calculate than that for
SOA projects. Traditional projects tend to focus on the following factors:
▪ Structure or design that will reduce maintenance and overhead costs. These factors include
developer time as well as environmental factors such as how much electricity or cooling
is required.
▪ Features that will win new customers and streamline business processes.
▪ Features that will reduce time to market.
▪ Cost reduction. This could occur through licensing arrangements, reduced hardware re-
quirements, consolidation of equipment and function, etc.
▪ Compliance with regulations such as Payment Card Industry or Sarbanes-Oxley. Indem-
nification is a form of relief that can be monetized.
