GRIDtoday Logo SUN

DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / MARCH 10, 2003: VOL. 2 NO. 10

( Previous Article )   ( Table of Contents )   ( Next Article )

Special Features:

IBM MOLDS INTEGRATION SUITE TO SUPPORT E-BUSINESS STRATEGY
By William Fellows for the451.com

WebSphere Integration is the latest IBM product group to step up with a portfolio makeover and positioning designed specifically to support chairman Sam Palmisano's call for the company to enable its customers to become on demand e-businesses.

Five integration product activities now house technology from IBM's Holosofx and CrossWorlds acquisitions, plus MQ Series and other home-grown code. Paraic Sweeney, vice president of marketing for the WebSphere business integration group, says the contribution it makes is key to enabling Palmisano's vision. After all, he defined an on-demand e-business as an enterprise with business processes – integrated across the company as well as with key suppliers, partners and customers – that can respond with speed to any customer demand, market opportunity or external threat.

IMPACT ASSESSMENT

The message

IBM spent last year extending its portfolio with acquisitions. It has now assembled and packaged them to support the company's strategy of delivering on-demand e-businesses, with integration as a key enabling element.

Competitive landscape

Looming consolidation in the integration market leaves IBM positioned well against independents. The long-term threat, however, is clearly from Microsoft, SAP, Oracle and BEA.

The451 assessment

The latest release of the WebSphere Business Integration suite will force BEA and Oracle to step up to the plate with their own product strategies, as integration around the application server becomes increasingly pivotal. IBM's clearly getting on well with the integration of its acquired technologies in the space and competitors won't for much longer be able to point to a collection of stove pipe components. Mandatory changes are driving a services opportunity around integration which is why IBM is now knee deep in this sector.

Technology

The latest release of the WebSphere Business Integration suite includes tighter integration of the Holosofx and CrossWorlds acquisitions and a more prominent role for IBM's Eclipse development tools. A guiding principle is that once the system is built, doing business process modeling, implementing it, measuring its success and comparing and adjusting it can all be done without the need for a Java programmer. IBM spent 2002 extending the integration suite with acquired technology. 2003 is all about delivering against this on-demand vision.

There are five elements to the suite: modeling, integration, connection, monitoring and management.

The WebSphere Business Integration (WBI) Modeler 4.2.3 includes the Holosofx technology and combines WBI Workbench and Workbench Server. Workbench documents business processes and enables users to define, model, run and test models before implementation. Workbench Server acts as the repository for models, policies and business rules. WebSphere InterChange Server can be launched with the modeler and visa versa.

The WBI Server is now at release 4.2. It uses CrossWorlds technology and includes InterChange Server, business integration tools and MQ Workflow. It's been integrated with the WBI modeler and monitor, supports 50 application adapters that IBM offers to its own and to third-party applications, includes 17 new RosettaNet partner interface processes, adds a new WBI adapter for Web servers, has two new service provider business process templates for the telco industry, and provides a new general purpose synchronization business process template.

Monitor 4.2.3, newly integrated with the WebSphere portal, screens business activity. The suite uses dashboards to enable users to see what's going on within processes on a real-time basis. It displays data from events produced by WebSphere MQ Workflow and InterChange Server.

The management element provides a feedback loop for what-if comparisons as well as links to Tivoli.

IBM is enforcing the use of its open source Eclipse framework as the means to provide a consistent user interface to WBI. It also provides a common architecture for developers. In addition to the prepackaged 50 adapters it has already created, IBM will be working with other ISVs and business partners to stimulate the development of more adapters.

Strategy

The difference between what the newly integrated suite can offer and stovepipe application-to-application integration is the ability to promulgate events across all applications in the supply chain in real time. Sweeney says it also enables companies to better integrate and consolidate applications that may have been brought in as a result of M&A activity. Ultimately, the ability to respond more quickly to requirements also reduces time to market and means users can be more responsive to new demands. New business processes can also be modeled, tested and adjusted before being implemented.

Specifically, it means that new business processes can be better aligned with IT operations – a key concern for CIOs focused on achieving better operational efficiency and getting the best use out of expensive ERP and CRM systems.

Moreover, there's now a real requirement for this class of integration, Sweeney argues – and it's not just B2B-driven. For example, the banking industry's migration to an IP version of the Swift transaction mechanism means users need to realign applications to take advantage of it – and also to plug in new processes. The regulatory climate is also forcing change – the US Hippa requirements (for health insurance portability), for example, call for changes in healthcare and insurance industry practices. And in consumer packaged goods, large retailers are stipulating the ways in which suppliers must interact with them and their applications. So users need multiple connections both inside and outside of their organizations.

IBM claims to have added 560 new integration customers in 2002. Sweeney says that the size of the WBI sales force has been tripled to 500 and that the company will typically work with a systems integrator (often IGS) on an engagement.

IBM is offering WBI starter packs for certain applications, such as Siebel. This enables the user to connect Siebel with other enterprise applications. With a couple of CPU licenses and a couple of business processes, it starts at $150,000. The WBI server itself costs $125,000. Users can buy packs of adapters and choose which application to run the system against at deployment time. It says engagements run from $100,000 to $5m.

WBI hasn't experienced any slowdown in the need for integration services, especially as many elements are now mandatory. In future releases, IBM will drop the use of Holosofx or CrossWorlds branding. Its other acquisition in this space, Metamerge, has been turned over to the Tivoli group and will underpin its identity management offering.

Competition

Sweeney says the market clearly can't sustain the 40 or 50 integration companies out there now, including Vitria, SeeBeyond, Tibco and Mercator. He expects consolidation to happen in short order. The financial viability of many is already in question. The market will go the same way as databases or applications servers – the many will consolidate down to a handful.

Sweeny argues that as J2EE emerges as the dominant underlying platform, so those companies that don't support J2EE to the same degree that IBM does will be first to suffer.

Microsoft's BizTalk is simply not enterprise-ready, Sweeney says. Oracle has a strategy to move beyond its core database practice but doesn't appear to have the culture to achieve it. BEA, meanwhile, has talked a lot about the integration requirement but hasn't yet done anything about addressing it. SAP is a threat because it supports its own integration model and is offering to integrate a user's other applications as part of its activity. Sun's recent Orion software announcement, IBM says, is simply a statement of intent, not a product announcement, with no detail on what products will be delivered, when or at what price point.

One item to note is that IBM's WBI is still running on CrossWorlds InterChange Server, not natively on the WebSphere app server – but the goal is to move over eventually. In this sense, IBM is still open to BEA's charges of having an unfinished software stack.

Web site: www.the451.com

( Top of Page )

( Previous Article )   ( Table of Contents )   ( Next Article )