China’s soa-driven software and services market revenue to reachus0 million by 2010

[CNETNews.com.cn] According to IDC ‘s latest report China SOA Solutions: Opportunities and Challenges ,China’s SOA -driven software and services market revenue was US million in 2006and is expected to reach US0 million by 2010, posting a strongdouble-digit five-year compound annual growth rate. “The emergence of SOA will bring about significant changes to China s IT market. Apartfrom reviving the China s middleware market, it will also enablesystem integrators (SIs) to improve efficiency and overcomedifficulties encountered in numerous customization and integrationprojects. In the long run, service-oriented approach will helpincrease consolidation in China s services market,” said Enid Du,Senior Analyst at IDC ‘s China Software and Services Research.

IDC expects further development of the traditional customized softwareapplication market as SOA practices are being introduced. At the early stage, costsassociated with customized development may be less than SOA development. However, the returns on investment (ROI) of an SOA development approach will improve in the long term with the reuseand extension of existing services and processes. Standardization of services in SOA is also a key step in improving corporate inter-department servicecollaborations. Organizations should expect to invest a significantamount of effort initially to establish this core structuralmilestone.

An SOA approach is highly beneficial for corporations who are seeking fortransparency and alignment of business services across differentchannels and departments where a large amount of redundant andoverlapping services, processes and legacy systems exist. SOA approaches are also useful for organizations with newinfrastructure where formal processes aligning business and IT canbe instituted early to help with business agility and speed tomarket initiatives. China s IT market should leverage SOA standards and methodologies to steer away from proprietarydomestic approaches, thereby giving them a level playing fieldversus foreign competition. As China embarks on a transformation oftheir state governance, software vendors are presented with anopportunity of refreshing and upgrading the existing legacyapplications found in state enterprises. Flat Oval Tube

Software vendors couldstrengthen their offerings by participating in global SOA events and standards and applying these best practices in theirsoftware development lifecycle. From a recent survey, IDC observed the adoption of SOA in large enterprises in industries such as Banking, Power,Telecom, and Transportation. These enterprises are utilizing SOA to build flexible systems that can integrate their existingcomplicated information systems in order to meet their businessrequirements. In addition, the Chinese government is alsoaggressively promoting the establishment of data-sharing platforms,hence paving the way for greater SOA adoption. According to Dr Patrick Chan, Research Director for IDC ‘s Asia/Pacific Emerging Technologies Research, China’s existinglarge customer base and internal collaborative services marketmakes it a suitable platform to nurture external facing SOA services that are volume oriented, standard-based andinteroperable to the customers. ABL Laminated Tube Manufacturer

China’s large network of B2Bservices should take the opportunity to evolve further towardsglobal SOA standards and direction. Where reference models are concerned,China could look to case studies and approaches from multinationalcorporations such as Amazon and Salesforce. However, as SOA is still an emerging technology with evolving standards andpractices, examples of successful, large-scale SOA implementation are limited. End users should not expect to seeimmediate results from SOA deployments, as it requires collaboration and alignment betweenbusiness processes and IT functions for successful SOA implementation. IDC advises vendors to invest time and effort in nurturing partnerstowards building up the necessary skill set and consultingpractices in terms of newer areas such as SOA change management, service identification, reuse and optimization.”When it comes to project execution, it is best to start with highimpact business initiatives involving less mission criticalsystems. Laminate Tube

Piloting these projects to prove system stability andflexibility to their clients is a key step towards establishingtrust and longer term partnership in customer SOA blueprint,” said Felix Liu, Senior Analyst at IDC ‘s China Software and Services Research.

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