Service Oriented Architecture Field Guide for Executives

7.2. TACTICAL SOA ROI

In the short term, SOA initiatives can yield immediate, tactical ROI in the form of cost reductions. Primarily, these cost savings are realized in the form of reducing (or in some cases eliminating) middleware licensing fees, reduced development time, and lower costs for system maintenance and system configuration.

Understanding Tactical SOA ROI

There are two primary drivers behind tactical SOA ROI. First, SOA enables enterprises to reduce or even eliminate redundant functionality and integration mechanisms. Capabilities can be consolidated, or in some cases centralized, reducing licensing and corresponding maintenance costs.

The second tactical ROI driver focuses upon standards-based integration techniques rather than proprietary interfaces and protocols. This allows integration solutions to be provided without the need for costly vendor-specific and/or platform-specific conduits. This opens up the systems integration landscape and allows for less expensive (or even free) software to be utilized. Furthermore, this keeps staff training costs low due to the use of well-known standard protocols and messaging formats.

Computing Tactical ROI

Computing tactical ROI is simple and straightforward. Results and projections are based on project-specific savings that are realized via SOA. No formal cost models exist for tactical ROI calculation; you just need to clearly define the project scope, the initial investment, and the short-term financial objectives, and then ...