IBM Software Group
IBM Impact Summary
April 2008
© 2008 The Link Group
IBM Software Group
Priority of SOA
© 2008 The Link Group
SOA is the number one priority for businesses in 2008
42% of customers indicate SOA is their company’s top software spending priority
for 2008.
SOA
42%
Application Upgrades
34%
BPM
14%
Other
8%
BEP
1%
0%
10%
20%
30%
Q3. What is your company’s top software spending priority for 2008? n= 308
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Link Group – IBM Impact Research 2008
40%
50%
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
Percentage of IT budget spent on SOA in 2007
45% of customers indicate they spent between 10% and 29% of their 2007 IT
budget on SOA.
60%
50%
45%
40%
30%
23%
22%
20%
10%
6%
2%
2%
40%- 49%
50% or More
0%
Less than
10%
10% - 19%
20% - 29%
30% - 39%
Q4. What percent of your IT budget was spent on SOA in 2007? n= 303
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Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
Budget increases for SOA implementation from ’07 to ’08
49% of customers indicate that their budget for SOA implementation increased
between 10% and 20% from 2007 to 2008. 12% said their SOA budgets increased
by 30% or more.
50%
40%
38%
30%
30%
19%
20%
10%
7%
4%
1%
0%
Did Not
Increase
Increased
10%
Increased
20%
Increased
30%
Increased
40%
Q5. How much, if at all, has your company’s budget for SOA implementation increased
from 2007 to 2008? n= 303
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Link Group – IBM Impact Research 2008
Increased
50% or More
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
IBM Software Group
SOA Skills
© 2008 The Link Group
What types of skills are needed for those implementing SOA?
An overwhelming majority of customers are looking for a combination of business
and IT skills in the people responsible for implementing an SOA solution.
Combo of Business
and IT Skills
70%
IT Skills
22%
Business Skills
4%
Industry-Specific
Skills
2%
Other
1%
0%
10%
20%
30%
40%
50%
60%
70%
Q6. Of the following skills, which one is most important in the people who implement your SOA
solutions? n= 309
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Link Group – IBM Impact Research 2008
80%
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
The combination of IT and Business skills are on the rise
The majority of customers indicate that the combination of IT and business skills
within their company increased from 2007 to 2008.
60%
50%
40%
33%
30%
29%
27%
20%
9%
10%
2%
0%
0%
Skills Stayed
the Same
Increased
Less than
10%
Increased
10% to 24%
Increased
25% to 49%
Increased
50% to 74%
Q7. How much, if at all, has the combination of IT and Business skills within your company
changed from 2007 to 2008? n= 309
8
Link Group – IBM Impact Research 2008
Increased
75% or More
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
SOA projects span the entire scope of the enterprise
60% of customers indicate that the scope of their most recent SOA project spanned
across the entire company as well as the entire division.
40%
32%
Across the Entire Company
Across an Entire Division
Departmental Only
28%
Q9. What was the scope of your most recent SOA project? n= 232
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Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
Almost all SOA projects are seen as successful
96% of customers indicate that their most recent SOA project was successful with
35% describing it as very successful.
4%
35%
Very Successful
Somewhat Successful
Not at all Successful
61%
Q8. How would you describe your most recent SOA project? n= 220
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Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
CEOs understand the business value of SOA
73% of customers indicate that their CEO understands the business value of SOA
with over half saying they strongly agreed with this statement.
60%
51%
50%
40%
30%
22%
21%
20%
10%
7%
0%
Strongly Agree
Agree
Disagree
Q10. How much do you agree or disagree with the following statement: My CEO understands
the business value of SOA. n= 307
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Link Group – IBM Impact Research 2008
Strongly Disagree
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
IT and business managers meet regularly when
implementing an SOA solution
About half of customers indicate that IT members are meeting once a month or
more with the business managers they support when implementing an SOA solution
with an additional 20% saying they meet at least every three months.
60%
49%
50%
40%
30%
20%
20%
14%
12%
10%
6%
0%
Once a Month or
More
Every Three
Months
Every Six to
Nine Months
Yearly
Q11. Does an IT member of the staff that is implementing an SOA solution meet regularly
with the business managers they support? ? n= 301
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Link Group – IBM Impact Research 2008
Never
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
SOA deployment has moved beyond evaluation and is
making its way into enterprises
50% of customers indicate they have deployed SOA, while another 27% are piloting
it.
60%
50%
45%
40%
27%
30%
20%
20%
10%
5%
3%
0%
Evaluation
Pilot
Deployed Some Fully Deployed
Components
Q12. How would you describe your company’s current stage of SOA deployment? n= 308
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Link Group – IBM Impact Research 2008
We Are Not
Considering
SOA
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
SOA investments are helping companies better align IT
and the business
Nearly a third of customers indicate their company achieved a better alignment
between IT and the business as result of their most recent SOA project.
Better Alignment Between IT and the
Business
27%
17%
Reduction in Costs
17%
More Responsive
16%
Increased Robustness of Processes
Marketplace Differentiation
10%
Business Model Innovation
9%
Better Global Reach
0%
4%
10%
20%
Q13. Which of the following benefits did your company achieve with your most recent SOA
project? n= 310
14
Link Group – IBM Impact Research 2008
30%
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
Business leaders make process integrity a priority
67% of customers indicate that process integrity is very important for their
organization.
80%
67%
70%
60%
50%
40%
28%
30%
20%
10%
5%
0%
Not Very Important
Not At All Important
0%
Very Important
Moderately
Important
Q14. Process integrity is the ability to conduct reliable business activity in a secure, scalable SOA environment with
Source: Survey at IBM
seamless integration at every level. When thinking about an SOA environment, how important
IMPACT
Event, April 2008
or unimportant is process integrity for your organization? n= 309
15
Link Group – IBM Impact Research 2008
© 2008 The Link Group
SOA is powering innovative solutions for customers
The top three reasons reported by customers for selecting a particular SOA solution
are open industry specific standards, a vendor who is both an SOA leader as well as
someone who offers industry specific solutions, and solutions with pre-built
components.
SOA Solution w/ Open Industry Specific
Standards
95%
Vendor both SOA Leader and Industry Specific
Solutions
92%
90%
SOA Solutions w/ Pre-built Components
Industry Specific SOA Solution
76%
Same Vendor Deliver Both Software and
Services
75%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
Q15. Thinking about SOA solutions for your organization, how important or unimportant are each of the following?
Source: Survey at IBM
n= 308
IMPACT Event, April 2008
16
Link Group – IBM Impact Research 2008
© 2008 The Link Group
BPM emerges as a key priority for business and IT
leaders
94% of customers cite Business Process Management as important to their
company with 47% saying it is very important.
60%
50%
47%
47%
40%
30%
20%
10%
5%
1%
0%
Very Important
Moderately
Important
Not Very Important
Not At All Important
Q16. Business Process Management is the process of understanding, defining, executing, and
optimizing the core business processes that generate value for your company. How important
or unimportant is Business Process Management to your company?? n= 307
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Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
SOA community has begun and will continue to grow
51% of customers have partnered or consulted with IBM and IBM Business Partners
during their most recent SOA project.
IBM
35%
16%
IBM Business Partner
Other SOA Vendors
15%
11%
Peers in your Company
Peers in your Industry
9%
7%
Industry Analysts
User Groups
University Students or Professors
5%
3%
0%
10%
20%
30%
Q17. Have you partnered or consulted with any of the following during your most recent SOA
project? n= 286
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Link Group – IBM Impact Research 2008
40%
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
SOA community has begun and will continue to grow
57% of customers cite they would be interested in joining IBM’s Smart SOA Social
Network while an additional 6% said they are already members.
6%
37%
57%
Yes
No
Already a Member
Q18. Are you interested in joining IBM’s Smart SOA Social Network in an effort to collaborate
more closely with IBM, its partners, user groups, and other external parties on SOA? n= 305
19
Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
IBM Software Group
SOA Decision-Making
© 2008 The Link Group
Key decision maker for implementing SOA
The CIO or IT Manger is the key decision-maker for SOA implementation for the
majority of customers.
CIO
42%
IT Manager
33%
Equal Mix of
Business and IT
16%
Business Manager
One out of four customers indicate a business manager
is involved in the decision to implement SOA.
5%
CEO
4%
0%
10%
20%
30%
40%
Q2. Of the following positions, which one has the MOST decision-making authority for implementing
SOA within your company? n= 299
21
Link Group – IBM Impact Research 2008
50%
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
Key decision maker for choosing an SOA vendor
Most customers indicate the CIO or IT Manager is also the key decision maker
when selecting an SOA vendor.
CIO
46%
IT Manager
35%
Equal Mix of
Business and IT
11%
Business Manager
One out of five customers indicate a business manager
is involved in choosing an SOA vendor.
5%
CEO
3%
0%
10%
20%
30%
40%
Q3. Of the following positions, which one has the MOST decision-making authority for choosing
an SOA vendor for your company? n= 299
22
Link Group – IBM Impact Research 2008
50%
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
How often IT staff meets with business managers?
Nearly half of customers indicate a member of their IT staff meets with the
business managers they support at least once per month.
Once a month or
more
46%
Once every 3 months
20%
Every 6 - 9 months
11%
Yearly
6%
Never
17%
0%
10%
20%
30%
40%
Q4. Does an IT member of the staff that is implementing an SOA solution meet regularly with the
business managers they support? n= 297
23
Link Group – IBM Impact Research 2008
50%
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
Most Important Criteria in Selecting an SOA Vendor
A combination of technical and business expertise is the MOST important criteria
taken into consideration when selecting an SOA vendor for over half of customers.
Combo of Technical and Business Expertise
52%
SOA Experience
18%
Technical Expertise
11%
Established Relationship with Vendor
9%
Business Expertise
5%
Price
5%
0%
10%
20%
30%
40%
Q5. Of the following criteria, which one is MOST important in selecting an SOA vendor for your
company? n= 298
24
Link Group – IBM Impact Research 2008
50%
60%
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
Why customers implement SOA?
3 out of 4 customers cite meeting new business goals as the reason for
implementing their most recent SOA project.
Meet New
Business Goals
Fix/Repair Existing
Business Problems
25%
75%
Q6. Which of the following BEST describes why you implemented your most recent SOA
project? n= 287
25
Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
Why customers chose Websphere?
Nearly 60% of customers selected Websphere because it works with their existing
IT infrastructure and applications.
Works with Existing IT Infrastructure &
Applications
57%
Helps Achieve Business Goals
17%
Superior Technology
14%
Price Performance
5%
Most customers selecting
“Other” indicate they have not
yet made a vendor decision
Other
7%
0%
10%
20%
30%
Q7. Why did you choose to use Websphere as the platform for your company’s SOA
implementation? n= 293
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Link Group – IBM Impact Research 2008
40%
50%
60%
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
IBM Software Group
SOA Budgets
© 2008 The Link Group
Percentage of IT budget spent on SOA in 2006?
40% of customers indicate they spent between 10% and 29% of their 2006 IT
budget on SOA.
2008 slide 4
60%
48%
50%
40%
30%
24%
20%
16%
7%
10%
2%
3%
40% - 49%
50% or more
0%
Less than
10%
10% - 19%
20% - 29%
30% - 39%
Q8. What percent of your IT budget was spent on SOA in 2006? n= 281
28
Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
Budget increases for SOA implementation from ’06 to ‘07
53% of customers indicate their budget for SOA implementation increased between
10% and 20% from 2006 to 2007.
2008 slide 5
50%
40%
34%
34%
30%
19%
20%
10%
6%
5%
2%
0%
Did not
increase
Increased
10%
Increased
20%
Increased
30%
Increased
40%
Q9. How much, if at all, has your company’s budget for SOA implementation increased
from 2006 to 2007? n= 281
29
Link Group – IBM Impact Research 2008
Increased
50% or more
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
Percentage of 2006 Budget Spent on SOA vs. Budget
Increases from 2006 to 2007
As stated previously, over half of customers indicate their SOA budget in 2006
represented 10%-29% of their 2006 IT budget. 66% of those customers say their
budget increased 10% to 20% from 2006 to 2007.
50%
47%
44%
40%
39%
35%
33%
30%
25%
27%
22%
21%
22%
20%
13%
10%
9%
6%
11%
8%
6%
2% 1%
13% 13%
1% 2%
0%
SOA <10% of 2006
IT Budget
SOA 10% -29% of
2006 IT Budget
SOA 30% -49% of
2006 IT Budget
SOA 50% of 2006 IT
Budget
Did not increase in 2007
Increased 10% in 2007
Increased 20% in 2007
Increased 30% in 2007
Increased 40% in 2007
Increased 50% or more in 2007
Q9. How much, if at all, has your company’s budget for SOA implementation increased
from 2006 to 2007? n= 281
30
Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, May 2007
© 2008 The Link Group
IBM Software Group
Demographics and
Methodology
© 2008 The Link Group
Demographics
Primary Job Function
15%
6%
79%
IT
Business
Combined Business/IT
Q1. Which of the following best describes your primary role within your company? n=309
32
Link Group – IBM Impact Research 2008
Source: Survey at IBM
IMPACT Event, April 2008
© 2008 The Link Group
Methodology
The Link Group, an independent market research firm,
conducted 309 on-site surveys sponsored by IBM among
customers attending the IBM Impact conference held in Las
Vegas, Nevada April 7th – 10th. All interviews were conducted on
Monday, April 7th and Tuesday April 8th.
Note: The contents of this report cannot be quoted, copied or
distributed without written permission of IBM.
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Link Group – IBM Impact Research 2008
© 2008 The Link Group