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Subject: Re: [soa-rm] shared services comments


Ken,
many large banks (but City and Goldman Sacks) like Deutsche Bank, JP Morgan, UK Barclay, UK HSBC, also Fidelity Investments and alike used to have a BU owning its IT part and restricting others to modify its stuff.
 
Your reference to Amazon fully confirms my statement that Public Cloud providers "want to avoid one-off contracts unless the contracting organization is large enough to make special conditions financially viable." This option is available only from Private Cloud providers for additinoal money. Public Cloud providers cannot allow "one-off contracts" becuase they degrade provider's economy of scale and increase expences.
 
- Michael
 
Sent: Wednesday, August 19, 2015 at 9:59 PM
From: "Ken Laskey" <klaskey@mitre.org>
To: "Mike Poulin" <mpoulin@usa.com>
Cc: "Martin Smith" <bfc.mclean@gmail.com>, "soa-rm@lists.oasis-open.org" <soa-rm@lists.oasis-open.org>
Subject: Re: [soa-rm] shared services comments
Michael,
 
Interesting.  Do you really see many examples of want to avoid one-off contracts unless the contracting organization is large enough to make special conditions financially viable.Division A having the agility and authority to ditch Division B for an alternative?
 
I saw a presentation from Amazon where they certainly   And, if I remember correctly, the strategy was to decide the one-of was a bad idea and work to convince the large consumer it wasn’t needed, or to decide it was a good idea and incorporate it into the standard offering.
 
Both approaches sound like winners.
 
Ken
------------------------------------------------------------------------------
Dr. Kenneth Laskey
MITRE Corporation, M/S F510          phone: 703-983-7934
7515 Colshire Drive                           fax: 703-983-1379
McLean VA 22102-7508
 
On Aug 19, 2015, at 3:37 PM, Mike Poulin <mpoulin@usa.com> wrote:
 
Interesting thoughts, Martin.
 
It is possible that IBM exercised something like "enterprise architecture" but the turm was coined by Dr Jenne W. Ross in her famous book "Enterprise Architrecture as a Strategy" published in 2006.
 
Now, about internal services and contracts. Current market is divided into two streams - the first is traditional and relates to heavy stuff and chnages slow; another stream has already demonstrated a high pace of changes.  One of the effects of this dynamic economic environmnet is in that companies working in it do not have time for fixing errors or improving internal sources longer that the market chnages again. This means that in such organisations Division A will not wait till Division B improves delivery of its internal service and, instead, will hire an outsourcing service. If Division B with its service cannot compete with the external provider of the similar services, the Division B has to pass away. Period. Any other manipulations with the Division B are possible, but they constitute a risk of wasting funds and time. Described is a principle of SOE - service-oriented enterprise. We are not there yet, but more and more industry sectors shift toward dynamic market, as global trends show.
 
Regarding piblic/private. In my terminology , private does n ot mean owned by consumer, but allowing private conditions and contract SLA negotiation. This is the only way for modrn serious big businesses to use outsourcing. However, becuase of such consumers, there are much less nois about private outsourcing. A number of consumers of puvlic offerings is huge, while every one contract is very small. Just a few private contracts can easily outperform thoudands of public ones (I know this for sure becuasse this was the only one survived model used by UK Government for estimating of Government regulated pension for the low income people). 
 
In the dynamic markets, a "relative market power" is huge for services competing across corporate boundaries.
 
- Michael
 
Sent: Tuesday, August 18, 2015 at 9:29 PM
From: "Martin Smith" <bfc.mclean@gmail.com>
To: "Mike Poulin" <mpoulin@usa.com>
Cc: "Ken Laskey" <klaskey@mitre.org>, soa-rm@lists.oasis-open.org
Subject: Re: [soa-rm] shared services comments
Mike--I always understood that "enterprise architecture" was invented by John Zachman, then at IBM working on business systems planning, in the 1980s. 
 
Regarding evidence and SLA's -- where there is a contract (or a "public offering" of a product or services with associated claims of functionality and performance) there is, in principle, legal enforceability. But most business buyers take account of whether or not the offeror is a "responsible source", which means a track record of some sort and enough net worth to allow the buyer to actually collect something via the legal system, 
 
I believe Ken and I have similar experiences with services offered "internally" (within some organizational boundary) where formal contracts don't apply (Division A can't sue Division B).  In that case, Division A would like to have some assurances that Division B will perform, or some more ad-hoc recourse (like the Manager of Div B's head, for example.) 
 
I think most commercial IT services will be offered on a "public offer" basis--same terms for all or most customers, which would be public.  In fact, we often also see offerors of all types citing their own or a third-party's statistics on performance, etc. So certainly there is evidence available to buyers in most cases. 
 
Regarding Ken's story of an individual trying to get resources from a large company:  that's an interesting observations.  Maybe we ought to formally recognize the role of "relative market power" in modeling shared services. 
 
Martin
 
 
 
 
 
 
On Tue, Aug 18, 2015 at 3:45 PM, Mike Poulin <mpoulin@usa.com> wrote:
In many recent conversations with promoters of EA, I have found how the distinguish between Organisation and Enterprise [BTW, a name Enterprise Architecture originated by Dr. J. Ross in 2006, has nothing to do with the term Enterprise as it is understood today by the think-tanks in this area]. So, an organisation is a formal, usually, legal entity what has control on its assets and related boundaries (in some cases organisations may have some controls outside of their boundaries), An enterprise is a group of people who agreed to act/work together for certain goals/objectives/benefits. An Organisation and Enterprise overlap: an Organisation may have one or several Enterprises inside its boundaries as well as some Enterprises can cross the Organisation's boundaries. For example, members of OASIS form an Enterprise thIMO, at overlaps with the Organisations where the members work.
 
IMO, an Application is a technoloy SW means with the pimary task/goal in solving certain task using comuter's capabilities; a task of servicing consumers is not the pimary task/goal. This is why Applications used to expose its internal constraints and problems on thir consumers.
 
A notion of dependencies is the 1st Class Citizen for Services: they work on a narrowed functonality while acquiring results og many others.
 
Principle of Composability is about abolity of a service to participare in as many (external) compositions as needed and also to compose as many other composisitons as needed. A buisness process here is opnly a means of the composition execution. Moreover, it may be not a process but a case (i.e. when the executions logic is not pre-defined). 
 
I do not know how a statement "a consumer should doubt an SLA unless there is some proof, e.g. the provider has historically met SLAs and history is still a valid predicted of the future." has ended up in this discusstion, but I think it is incorrect. If a Service Provider serves consumers based on the explicit contract only, nobody would be able to test/prove any historical compliance with the SLA becuase they are in the private contracts. I use only the definitions that are in RAF. Moreover, using new definition of Business Capabilities, it is impossible to rely on the historical data for the future in the dynamic environment, i.e. in where we all heading to.
 
Regards,
- Michael
 
 
 
 
Sent: Tuesday, August 18, 2015 at 3:10 AM
From: "Ken Laskey" <klaskey@mitre.org>
To: soa-rm@lists.oasis-open.org
Subject: [soa-rm] shared services comments
My apologies for not getting back to this sooner.  I’ve inserted comments to comments made by Michael and Martin in their respective mark-ups.  We can discuss these further during Wednesday’s meeting — call-in details to be distributed.
 
A couple of definition questions came up that have bothered me for a long time, and I’d be interested to know if others have suggested definitions.  
 
- I used the terms Organization and Enterprise, and Martin asked for definitions.  I found a useful definition of Organization* but nothing satisfying for Enterprise.  Any suggestions.
  * Organization -- A specific real-world assemblage of people and other resources organized for an on-going purpose. 
 
- Michael talked about services and applications, and I have never seen a good definition of Application when the discussion is on Services.  Any satisfying definitions for Application?
 
As for composability, a service may interact with another service as part of following a business process.  The idea of composability is to be able to concentrate on the higher level process and not the details of subprocesses that might make use of other services.  This is where opacity comes into play.  Yes, there are dependencies, but I believe there may also be dependencies for “applications”.  It is up to the provider to manage dependencies, and a consumer should doubt an SLA unless there is some proof, e.g. the provider has historically met SLAs and history is still a valid predicted of the future.
 
In general, I’ll stick by sections 3.3.1 and 4.3.5 of the SOA-RAF.  
 
Ken
 
 
 
 
 
------------------------------------------------------------------------------
Dr. Kenneth Laskey
MITRE Corporation, M/S F510          phone: 703-983-7934
7515 Colshire Drive                           fax: 703-983-1379
McLean VA 22102-7508
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