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A View of the Government A View of the Government SOA Marketplace SOA Marketplace Shawn P. McCarthy,
Director of Research, Government Infrastructure Optimization and Vendor Programs
May 1, 2008
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Today’s Talking Points: Drilldown to Federal SOA
Total Government IT budgets
Federal IT Spending Patterns
Current Priorities
Lines of Business and the SOA Connection
SOA Decision Drivers
Predictions
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U.S. Information Technology Spending By Industry
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Breakout of U.S. Government IT Spending for 2008 (Projected)
DoD leads the way for all spending, especially for IT services. Local governments lag in software spending because they purchase fewer large enterprise applications
Includes hardware, software, and IT services spending only
Source: Government Insights, 2007Numbers = $ Millions
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Total Federal IT Budget: 2007-2009
Civilian Agencies2009 should show significant growth after two lean years
3.8% Increased proposed for 20093.8% Increased proposed for 2009
Numbers = Millions $
Source = OMB, 2008 (for FY2009 Budget)
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Defense Department IT BudgetBy Service – FY 2008
Source: Office of Management & Budget, 2007
Total 2008 IT Budget = $31,502.1M
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Federal IT Market Trends
After a dip in FY 2007 IT spending, FY 2008 IT spending is projected to increase 2.6% to FY 2006 level
The distribution of the FY 2008 federal IT spending portfolio will remain identical to FY 2007
Another year of continuing resolutions (CRs) will keep spending down for the first six months of the fiscal year
Systems consolidation continues, causing downward pressure on future IT spending as efficiencies spread
OMB-managed Lines of Business are starting to get real traction
Shared Service Centers (SSCs) created under Financial Management (FM) Human Resources (HR) and Information Systems Security (ISS) Lines of Business will limit opportunities for vendors
DoD is just beginning use of capability portfolio management, which should eventually have long-term impact on IT spending trends
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Federal IT Services SpendingFY 2008 - External
Civilian Agencies2008 HW, SW & IT Services
$12.5 Billion
DoD – 2008 HW, SW & IT Services
$14.2 Billion
Source = Government Insights, 2008
Why Services? SOA = programming, system SOA = programming, system design work anddesign work andconfiguration managementconfiguration management
$3.2 Billion
$4.8 Billion
$4.5 Billion$3.8 Billion
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Top Lines of Business: FY 2008 IT budget
All Lines of Business
Source: IDC, Government Insights: US Federal Line of Business Budget Guide, 2007
Total = $66.4 Billion
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Federal IT Spending by Investment Target
Source: IDC, Government Insights: US Federal Line of Business Budget Guide, 2007
Number = $ Millions
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U.S. Federal Budget Analysis
Legacy vs. New Spending FY 2006 FY 2007 FY 2008
Full IT Budget 66,215.1 64,911.4 66,405.1Legacy Spending 66.6% 67.6% 68.8%New System and Enhancement Spending 33.4% 32.4% 31.2%
System consolidation may slowly reduce new project spending
System consolidation may slowly reduce new project spending
Numbers = $ Millions
Source: IDC, Government Insights: US Federal Line of Business Budget Guide, 2007
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A Few SOA Project Examples VA
– VistA-Application Development for HealthVet ($129.5 million)
DHS– Citizenship and Immigration Services - USCIS – Biometrics projects
($6.2 million)
NOAA– Global Earth Observation Integrated Data Environment ($2.6 million)
SOA tends to be an iterative improvement, not an enterprise-wide
single project
Most SOA projects fall into the sub- $5 million range
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What’s Driving SOA Interest?
All industries, not just government
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Top Sub-functions for IT Infrastructure Spending
Source: IDC, Government Insights: US Federal Line of Business Budget Guide, (FY2008 Budget)
Total = $23,131,1M
Maintenance and info management lead, security is next
Maintenance and info management lead, security is next
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The SOA Reality Check: Migration Funding Isn’t There (Interagency Funding Isn’t There Either)
Source = OMB, 2008 (for FY2009 Budget)
Enough to fund Government-
wide Migration to SOA?
Most steady state funding for FY 2008 is aimed at non-major IT investments or supporting technologiesMost steady state funding for FY 2008 is aimed at
non-major IT investments or supporting technologies
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Quotes from the Gov SOA Front Lines
“The enterprise architecture program or framework provides a context to understand the implementation of such a thing as SOA or business process management.”
- Jan Popkin, Business Process Modeling Expert
“Now we have an SOA environment where you can build and run net-centric capabilities. So we’re getting to the point where I’ll say, ‘If you really have a good solution, we can use SOA to hang your application on our network. You develop this solution on your own dime, but I’ll pay you for the use of it.”
- Gen. Charles Croom, Director, DISA
“Empowering users with Web 2.0 technologies forces you to ask the right data questions: What data should we expose? Is our data ready to be exposed? Is our data trustworthy?”
- Michael Daconta, Former Metadata Program Manager at DHS
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Virtualization Can Aid SOAAnd Visa-versa
Virtualization in General:– Make a single resource (server, application,
storage device) function as multiple virtual resources
– Make multiple resources (network connections, processors, storage) function as a single resource
SOA-specific:
–Resource virtualization
Simulation of combined resources
Building multiple components into a virtual application
Centralized data tagging and sharing
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The Buzz on Cloud Computing
Leverages SOA and virtualization technologies
Cloud computing lets you worry about services, and not the technologies used to connect to those services
Separates application code from physical resources
Allows placement of infrastructure in lower cost areas (property, electricity)
Delivered services include application components and full applications, storage, processing power, and access to specific resources
But.. You have to trust the cloud
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Application Development and Deployment – Top 7 Predictions
1. SOA will become more critical in forming the foundation for provisioning and consuming services in the cloud
2. BPM will be increasingly viewed as a must-have despite the gloomy economy – this will help drive SOA penetration
3. Event-driven architecture will not be just for tickers and tags – it will trickle down to multiple gov apps
4. SOA will stimulate on-demand application development, vendors will attempt to disrupt the status quo by pitching new services-based offerings
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Application Development and Deployment – Top 7 Predictions (cont.)
5. Most leading software vendors will provide data-focused support for both virtualization and SOA
6. IT portfolio management will provide the missing application life-cycle management link — as SOA evolves IT governance will emerge out of necessity
7. Open source software will impact business decisions more and will lead to a mix of open and proprietary services across an SOA environment
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Conclusion
SOA migration will happen slowly, but accelerate as savings become concrete
The tough stuff– SOA means trusting the partners within your architecture, and getting
service level agreements from them– Component reuse is often overestimated
The good stuff– Provides a quick way to offer new services, including vendor services– No more platform migration?
Current budgets may favor SOA for internal projects, but not necessarily cross-agency
The government computing cloud will continue to grow
