1 High Value SOA Leveraging Web Services to achieve agility, business value and efficient speed to market Misha Kravchenko Vice President IR GEMS Marriott International 10:45-11:30 24 August 2010 Palos Verdes 6 2 Agenda • Marriott International Overview • Rock solid foundations – CIC ( Corporate Intellectual Capital ) – Heritage Systems • High Value SOA : “Mind the Gap” – Challenges – The Solution – Benefits 3 Marriott International Overview • More than 3,400 Hotel & Resort, Timeshare and Corporate Housing Properties • Approximately 137,000 Associates • Operations in 70 countries • A growing and profitable company • Committed to Environmentally responsible operations and Conserving Energy 4 Leading Lodging Brands Luxury Lodging Full Service Select Service Extended Stay Ownership Resorts 5 Award Winning Technology Organization 6 Rock Solid Foundations CIC Corporate Intellectual Capital Legacy Heritage Systems 7 “You talk the talk and you walk the walk, but …“ 8 “do you listen the listen ?” 9 The “triangle” dilemma Affordability Pick any 2 Typical IT System High Availability Rich Functionality 10 How to get all three Affordability With the right people and the right system....... High Availability ? Rich Functionality 11 Centralized Systems Affordability With new technology mainframes Pick 3 - Get 3! High Availability Rich Functionality 12 How to square a triangle Affordability Green Fast, High Availability In Fact, with the new System Z, get 4 attributes! Rich Functionality 13 Legacy Heritage System TPF M A R S H A MARSHA is Marriott International’s reservation booking engine for all properties and rooms 14 Last century solutions 15 Apparent simplicity ......... 16 Grows into complexity ..... Huge costs ( $$millions ) 17 Why? 18 Just say no ! 19 Modernize your Legacy Heritage systems to gain competitive advantage and keep your IT and Corporate Intellectual Capital 20 marriott.com eMail First Data Amex Call Centres “SNA Free” 5 year Project to migrate over to pure TCP/IP Web Servers Fidelio $$$millions annual savings ! PMS Amadeus TPF Pegasus Courtyard PMS Opera HDS Worldspan Galileo TCP/IP Sabre Full Service PMS M A R S H A Secure Dial-up PC green screen VPN 21 n+ Tiers means complexity and huge costs TCP/IP TPF Unix servers Web Text via TCP/IP Servers XML via HTTP M A R S H A ORACLE databases 22 Superfluous infrastructure eliminated !! TCP/IP TPF Web Servers XML via HTTP M A R S H A 23 New marriott.com Architecture TCP/IP Business logic and context handler TPF Web XML via HTTP Servers HTTP server XML Parser Session Handler Message Broker M A R S H A Databases ported from ORACLE 24 New marriott.com Architecture TCP/IP TPF Web XML via HTTP Servers $$$ annual cost savings!! M A R S H A 25 Virtualization allows cost efficient workload sharing • • Server Virtualization - share Production capacity during off peak with Development/Test workload Clone the complete test environments at no incremental CPU hardware or software cost Shared Virtual Engines 26 Leveraging low marginal cost CPU cycles Since the mainframe investment is fully amortized and funded based on the business benefits (lowest cost in the industry), marginal costs of adding additional workload are extremely low. Running zLinux for other Production system workloads is very cost effective due to minimal $ incremental costs. $$$ annual cost savings!! IFL Engines System Z server 27 Green Eco-Friendly Infrastructure Running a Centralized IT System on the mainframe is extremely cost and power efficient. work Engines Our current Z server runs our Production Central Reservation System, several cloned Test Systems, numerous smaller Test environments, Performance Test environment, Development SDLC infrastructure, numerous Linux Applications ………… …and requires just 6.3kWh of power! 28 4x Equivalent to the power required by 4 toasters 29 Going Green is Good for Business Proportion of IT Funding used for Base Maintenance and Operations 46% 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 29% 2001 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 Investments in software and hardware capabilities to enable consolidation onto a single platform plus relentless attention to reducing cost of Base Operations has resulted in additional $$$millions released for Initiatives ! 30 The Perils of Cache C U S T O M E R S “maybe” inventory I N V E N T O R Y 31 nozama dotcom Add to Shopping Cart Eating Soup with a Fork By Alan Cooper List Price: $25.00 Our Price: $17.00 Availability: Usually ships within 24 hours 32 nozama dotcom Add to Shopping Cart Eating Soup with a Fork By Alan Cooper List Price: $25.00 Our Price: $17.00 Availability: Usually ships within 24 hours 33 Marriott Single Image Inventory C U S T O M E R S M A R S H A Accurate, Efficient, Precise, Consistent and Yield-managed! I N V E N T O R Y 34 The MARSHA Reservations System An “Open System” (provider of SOA services) System Z mainframe TCP/IP TPF M A R S H A Central Reservations System (Running TPF, z/VM, zLinux) Pure TCP/IP (Easily Connects to any “Open System”) Supports; XML, SOAP, MQ, SSL, HTTP, “C++” lang. 35 36 Past B2B and B2C connections RitzCarlton.com marriott.com Call Centres Marsha-Link hotels.com expedia TPF Amadeus Pegasus “The Web” Pegstour Priceline/ Travelweb Galileo Worldspan worldres.com M A R S H A Network Sabre 37 Mind the Gap !! RitzCarlton.com marriott.com Call Centres Marsha-Link hotels.com expedia TPF Amadeus Pegasus “The Web” Pegstour Priceline/ Travelweb M A R S H A Galileo Worldspan Network Sabre 38 Why has this gap been difficult to fill? GAP In the past, each new connection has been developed with specific code configurations within the MARSHA Application to service each partner’s needs. This has resulted in expensive (>$400k) costs and excessive elapsed timelines to connect partners. TPF The current “cost of entry” for potential new Business partners is too high, both in costs and elapsed time. “The Web” M A R S H A 39 Proven ROI and agility with SOA RitzCarlton.com OTA compliant CWA Service CWA (CityWide Availability) SOAP transaction developed for RitzCarlton.com website direct connection to MARSHA implemented in early 2007 SOAP message The OpenTravel Alliance (OTA) creates, expands and drives the adoption of open specifications, including XML, for the electronic exchange of business information among all sectors of the travel industry. TPF “The Web” M A R S H A 40 Proven ROI and agility with SOA RitzCarlton.com OTA compliant CWA Service SOAP message The same SOAP transaction was enabled for kayak.com and implemented a few weeks later! kayak.com TPF “The Web” M A R S H A This required no MARSHA Development or QA regression, with only Firewall, Security and configuration settings needed, resulting in an approximate <$2,000 cost for rapid enablement of this new B2B connection! 41 OTA compliant B2B Connections (re-usable Services integrated into core MARSHA) Reservation Service Availability Service core RateData Service MARSHA re-usable OTA Standard Services Reservation Availability GNR RateData Inventory RoomProduct GNR Data Service Inventory Service Room Product Service Efficient new process logic for each service allows better integration, access to lower level internal objects and avoids exception coding Result: = lower maintenance costs = higher speed to market = business flexibility = agility 42 Ready to “Mind the Gap” B2B partner TPF “The Cloud” Network & Firewall OTA Services M A R S H A Suite of “core” SOA services (transactions) in Open Travel Alliance industry standard format ready to quickly and efficiently connect to new B2B partners with business value determining decisions – not IT costs & complexity! 43 B2B Partner customization performed on external “wire-speed” SOA Appliance B2B partner partially customized Service dynamic transformation OTA standard Service TPF “The Cloud” DataPower OTA Services M A R S H A Changes to XML transaction data formats are easily changed or customized on the DataPower Appliance instead of within MARSHA so does not need any TPF changes or QA testing unless core functionality customization required for partner 44 Harvesting Revenue Generation Links GAP Existing High Volume B2x Direct Links and Sales Channels TPF $$$$ Incremental Revenue Generation! “The Cloud” M A R S H A $$$$ 45 “Direct Connect” Project Goals • Create Industry standard suite of Reservation “services” which can be reused for many new B2B partners • Deliver capability to quickly implement new B2B connections without excessive code development and long elapsed times 46 “Direct Connect ” Project Benefits • Drastically reduce costs and time of implementing new connections with new or existing business partners • Simplify the standard APIs by moving the “customization” layer out of the mainframe • Increase Revenue Generation potential by lowering the “cost of entry” to participate in direct connections with Marriott International 47 Marriott International Worldwide Sales Supply Chain Res Agts The Web Kayak eTools Expedia marriott.com TravelWeb TPF Amadeus M A R S H A Pegasus SABRE Galileo Worldspan Secure Dial-up Fosse PMS Fidelio & Opera PMS $$$ 24x7 Revenues ! Full Service Marsha Link PMS 48 Questions? 49