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Exadel Quick Facts: 

Exadel Quick Facts Founded in 1998 Corporate Headquarters: Concord, CA Sales and support offices in Chicago, NY International operations in Moscow and Minsk Over 500 Customers Major Products and Services: Open Source tools Open Source packaging Professional services and support Demanding enterprise-level applications including

Marquee Clients : 

Marquee Clients

Gartner’s Hottest Topics of 2005 : 

Gartner’s Hottest Topics of 2005 Open-Source Software: will revolutionize software markets by moving revenue streams from license fees to services and support. In doing so, it will be a catalyst that restructures the industry. By 2008, 95 percent of Global 2000 organizations will have formal open-source acquisition and management strategies OSS applications will directly compete with closed-source products in every software infrastructure market By 2010, IT organizations in Global 2000 companies will consider open-source products in 80 percent of their infrastructure-focused software investments and 25 percent of their business software investments.

Open Source Mania: 

Open Source Mania SourceForge 2001: Registered Projects: 20,000 2005: Registered Projects: 100,000+ Eclipse Apache Foundation ObjectWeb Open Symphony Open Source Development Lab (Linux) Avalanche Technology Cooperative (Cargill, Best Buy, Thompson, …) Commercial: JBoss, MySQL, Zend, SpikeSource, OpenLogic

Open Source Application Infrastructure: 

Open Source Application Infrastructure Development Tools Eclipse, NetBeans Databases MySQL, Ingres, Cloudscape, PostgreSQL, Sleepycat Portals eXo, Jetspeed Application Frameworks Cocoon, Struts, Spring, JSF Web Servers Apache HTTP Application Servers JBoss, Jonas, Tomcat, Resin System Management Nagios, Ntop, Nmap

Open Source Applications: 

Open Source Applications CRM SugarCRM, Hibernate ERP Compiere, Erpos Content Management Mambo, Lenya, OpenCMS Health Care VistaM (Medspehre), EHR Business Intelligence BIRT, Jasper Workflow/BPM Bonita, Enhydra Shark, OSWorkflow

Open Source in Business Applications: 

Open Source in Business Applications German Stock Exchange Reporting/compliance system based on Apache, Jetspeed, Lucene, JBoss, and Tomcat Beaumount Hospital Compiere as its ERP system and Vista as its hospital system Sabre MySQL on 45+ servers Migrated from BEA WebLogic to Resin; wide usage of MySQL, Lucene, Hibernate, and Nagios Fidelity Large deployment of Struts, iBates, and Eclipse AT&T B2B Business Gateway, Workflow, Hibernate, and Spring

What is Open Source?: 

What is Open Source? It looks like these days it is everything. Open Source is NOT a specific technology or business model. It is only a PRODUCTION and DISTRIBUTION method. The main difference between open-source and proprietary licenses is that the open-source license allows you to create a derivative work.

Open Source Myths and Reality: 

Open Source Myths and Reality Good quality Community development Community support Functionally rich Free Do it yourself, just download

To Use or Not to Use… : 

To Use or Not to Use… How it affects you Can you afford it? If you can take 10 for free, would you take it? BEA vs. JBoss ??? Is it ready for business?

Is It Ready for Business?: 

Is It Ready for Business? Current Gap Lack of Support Lack of Training Lack of Skills Lack of Tools Lack of Integration Enterprise Applications Reliable & Predictable Easily Adoptable Available Resources High Degree of Automation Performance & Scalability Low Cost High Quality Unique Functionality No Vendor Lock-In Multiple Choices Open Source

Open Source Is Here to Stay: 

Open Source Is Here to Stay Deployment in the Enterprise You are already using it. Share of Installed Base Databases Application servers Frameworks Applications Survey of IT/Corporate Execs 86% deploying some enterprise applications on open source platforms 45% deploying >26% of all apps on Open Source There are approximately 4 to 5 million developers using some open-source components A 2004 Information Week survey: 67% of companies use OSS; with another 16% expecting to use it in 2005; only 17% have no near-term plans for OSS

Open Source Adoption Stages: 

Open Source Adoption Stages Observers Collecting info on OSS and state of the technology Have not undertaken any OSS initiatives or committed any resources to future ones Experimenters Pilots in process Have not committed to use OSS in IT infrastructure or business software Looking for additional education and/or business case Users of OSS Infrastructure Using OSS frameworks regularly Usage will increase Users of OSS Applications OSS is first alternative Regular usage of OSS in business applications Usage will increase

Enterprise Software: 

Enterprise Software • Enterprise software today Long sales cycles Expensive Inaccessible to SMB Inaccessible to small developers Disconnect between license cost and manufacturing cost 76% of new license revenue today goes to sales and marketing (Source: Goldman Sachs) Software vendors charging customers (a lot!) to convince them they need their software!

A Troubling Trend?: 

A Troubling Trend?

Software License Paradigm: 

Software License Paradigm ∑ y = 1 N License Fee + Annual S&M

Important to Remember…: 

Important to Remember… The auto industry is about building cars, not just about selling parts. We’re used to equating “the software industry” with selling software.

Doing More With Less…: 

Doing More With Less… Time $$$ IT Budget Business Solutions Business Applications & Business Components Infrastructure Software (Core & Technology Services)

Applications Software Stack: 

Applications Software Stack Operating System Struts, JSF Security Management Tools Exadel Open Source Development Workbench Tomcat Spring WebFlow Business Process Integration MySQL, Postgres, Derby, HDB, DB4O JBoss, Jonas, Resin Hibernate, JDO, iBates Workflow Portal Spring Business Intelligence: BIRT Search: Lucene Messaging: ActiveMQ Composite Enterprise Applications Business Components & Services

Business Case for Open Source: 

Business Case for Open Source Based on a 3-year total TCO

3-Year TCO: 

3-Year TCO

Is There Hope?: 

Is There Hope? Everything that can be invented has been invented. Charles H. Duell, Commissioner United States Offices of Patents 1899

Buzzword Compliance…: 

Buzzword Compliance… Adaptive Infrastructure Blade Computing Client/Server Computing Clusters Compute Farms Distributed Computing Fabric Computing Grid Computing Matrix Computing On-Demand Computing Partitioned Systems Peer-to-Peer Computing Server-centric Computing Services Oriented Architecture Thin-Client Computing Virtual Machines Web Farms Web Services Architecture Utility Computing

Successive Technology Architectures: 

Successive Technology Architectures Application Usage Time Mainframe applications Packaged applications Component applications Web service applications Open Source Applications 1998 2002 2006 2010 Source: PWC 2002 Technology Assessment

Where all This Going?: 

Where all This Going? Technology waves Service Oriented Approach How applications are developed, deployed, and run: Application development backbone - Eclipse Composite application built on a commodity grid: Commodity software (Open Source) Commodity operating system (Linux) Commodity computers (Intel)

Composite Applications: 

Composite Applications Externalization Composite Applications Data Sources Services

Current Deployment Infrastructure: 

Current Deployment Infrastructure Web Servers Application Servers Data Bases Internet Development with targeted deployment architecture Not flexible enough, significantly limits benefits of SOA

Commodity Application Grid : 

Commodity Application Grid

Eclipse Application Backbone: 

Eclipse Application Backbone Information Flow

Application Deployment Grid: 

Application Deployment Grid Application Grid Data Bases Internet Development de-coupled from deployment Flexible and scalable All benefits of SOA


Thank You! Fima Katz, President & CEO Exadel Inc,


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Unleashing Power of SOA: 

Unleashing Power of SOA Composite applications are abstracted as XML-based Services Model. Exadel Active Flow orchestrates these services in a unified way (based on JSF Navigation Handler implementation) All data stored in Business Context. Data Flow is separated from Execution Flow (implementation is based on JSF Context, and effectively implements dependency injection pattern, allowing assembly of application from independent components) Powerful mapping language used to map data between Business Context and Services, allowing loosely coupled application design. Zero deployment approach to the application grid, all model changes instantly reflected in application. Dynamically scales up. Persistence tier based on ether simple relational model or declarative ORM definitions. Direct support for Hibernate and JEE 5. Visual User Interface Designer based on Mozilla, using standard JSF visual components, extendable by third party and custom components. Eclipse-based development environment. Built-in application monitoring and configuration, based on JMX.

Changes in Value Proposition: 

Changes in Value Proposition Business Solutions: Exadel Infrastructure Software: JBoss, SpikeSource OpenLogic, ITGroundwork, GlueCode, RedHat

Applications: Paid Subscriptions, Services : 

Applications: Paid Subscriptions, Services Open Source Software Packaged Deployment Services Annual Software Support Subscriptions Free Software

Pervasive Business Challenges: 

Pervasive Business Challenges Companies worldwide improve business performance by launching new business initiatives. IT organizations are under pressure to deliver new solutions with reduced budgets and resources. IT departments are unable to address each new business initiative. Only a few high-priority items get addressed each year. Moving more business initiatives through the IT “funnel” makes companies more “agile” bringing financial gains and competitive advantages.

Software Vendor Strategy Consideration: 

Software Vendor Strategy Consideration Any application/software can lend itself to Open Source work, but particularly those projects that are not a source of differentiation for the company Cost of entry New competition Eclipse (IBM) vs. Borland JBoss vs. BEA SugarCRM vs. Value proposition: relying less on owning code Leveraging existing software Where to go Traditional “heavy” applications – long sale cycle, expensive Traditional software model – upfront license Large user base Under-penetrated SMB market


Agenda Open Source: State of the Union What is Open Source: Choices, Money-Making Models? Myths & Realities What can you do with Open Source? (Gartner table) Where is all of this going? Q&A

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