Businesses rely on recycled IT to cut costs

29 March 2010

Over three quarters of companies fight downturn by re-using services and processes

83 per cent of businesses will use Service Orientated Architecture (SOA) to cut costs and re-use critical services, a survey by leaders in business process excellence, Software AG, has revealed. The poll, which quizzed over 100 IT directors across multiple industry sectors, also showed that 40 per cent of respondents were planning to implement SOA governance within the next year to ensure maximum reuse of existing software assets, so reducing costs.

“Tough economic challenges have forced many businesses to break free from traditional application constraints and re-use existing systems to help keep costs down. However, the discipline brought about by cost pressures is often something an agile organisation can turn to their advantage. It means that wholesale rip-and-replace strategies which often finish over budget and risk sacrificing the competitive advantage built into an organisation’s software enabled processes are questioned more closely. This, coupled with effective enterprise architecture linked to SOA governance ensures the best possible return on new software investments, rather than simply throwing money away on like for like replacement software.” said Tim Holyoake, lead technologist at Software AG.

The research also found that 83 per cent of organisations surveyed said business effectiveness was their greatest concern for 2010. 82 per cent of respondents also saw modernisation as the software investment most likely to bring the greatest efficiency to their organisation.

“SOA will help businesses drastically drive down operational costs by sharing services and processes intelligently across heterogeneous environments. Investments in enterprise architecture, SOA governance and SOA enablement will help to ensure that the vital systems which provide an organisation’s backbone are not discarded wastefully, but can truly act as first class citizens in continuing to provide competitive advantage,” Holyoake concluded.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development