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High Value SOALeveraging Web Services to achieve agility,business value and efficient speed to market

Misha KravchenkoVice President

IR GEMSMarriott International

10:45-11:30 24 August 2010Palos Verdes 6

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Agenda

• Marriott International Overview

• Rock solid foundations– CIC ( Corporate Intellectual Capital )– Heritage Systems

• High Value SOA : “Mind the Gap”– Challenges– The Solution– Benefits

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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

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Leading Lodging Brands

Select Service

Extended Stay

Ownership Resorts

Luxury Lodging

Full Service

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Award Winning Technology Organization

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Rock Solid Foundations

CICCorporate Intellectual Capital

Legacy Heritage Systems

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“You talk the talk and youwalk the walk, but …“

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“do you listen the listen ?”

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AffordabilityAffordability

Pick any 2

TypicalIT

SystemRich

FunctionalityHigh Availability

The “triangle” dilemma

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With theright peopleand the rightsystem....... ?High Availability

Rich Functionality

AffordabilityAffordability

How to get all three

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Centralized Systems

With newtechnologymainframes Pick 3 - Get 3!

AffordabilityAffordability

High Availability

Rich Functionality

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Affordability

Rich Functionality

Fast,High Availability

In Fact, with the new System Z,get 4 attributes!

Green

How to square a triangle

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MARSHA

TPF

MARSHA is Marriott International’s reservation booking engine for all properties and rooms

Heritage SystemLegacy

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Last century solutions

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Apparent simplicity .........

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Huge costs( $$millions )

Grows into complexity .....

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Why?

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Just say no !

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Modernize your LegacyHeritage Heritage systems to gaincompetitive advantageand keep your IT and

Corporate Intellectual Capital

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Call

Secure Dial-up

PC green screen

Web

Servers

marriott.com

Courtyard

PMSOpera

Fidelio

PMS

Sabre

Worldspan

Full

Service

PMS

Galileo

Pegasus

HDS

TCP/IP

FirstDataAmex

MARSHA

TPF

VPN

Amadeus

eMail

$$$millionsannual savings !

“SNA Free”

Centres

5 year Project to migrateover to pure TCP/IP

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TCP/IP

Web

Servers

Unixservers M

ARSHA

TPF

XML viaHTTP

Text viaTCP/IP

ORACLEdatabases

n+ Tiers means complexity and huge costs

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TCP/IP

Web

Servers

MARSHA

TPF

Superfluous infrastructure eliminated !!

XML via HTTP

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TCP/IP

Web

Servers

MARSHA

TPF

New marriott.com Architecture

XML via HTTP

HTTP serverXML Parser

Session HandlerMessage Broker

Business logic andcontext handler

Databases portedfrom ORACLE

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TCP/IP

Web

Servers

MARSHA

TPF

New marriott.com Architecture

XML via HTTP

$$$ annual cost savings!!

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Virtualization allows cost efficient workload sharing

SharedVirtualEngines

• 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

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Leveraging low marginal cost CPU cycles

IFLEngines

Since the mainframe investment is fully amortized and fundedbased 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.

System Z server

$$$ annual cost savings!!

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Green Eco-Friendly Infrastructure

workEngines

Running a Centralized IT System on the mainframe isextremely cost and power efficient.

…and requires just 6.3kWh of power!

Our current Z server runs our Production CentralReservation System, several cloned Test Systems,numerous smaller Test environments, PerformanceTest environment, Development SDLC infrastructure,numerous Linux Applications …………

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Equivalent to the power required by 4 toasters

4 x

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29%

46%

Going Green is Good for Business

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 !

2001 2009

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

2001 2002 2003 2004 2005 2006 2007 2008 2009

Proportion of IT Funding used for Base Maintenance and Operations

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The Perils of CacheCUSTOMERS

INVENTORY

“maybe”inventory

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nozama dotcom

Eating Soup with a ForkBy Alan Cooper

List Price: $25.00Our Price: $17.00

Add to Shopping Cart

Availability: Usually ships within 24 hours

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nozama dotcom

Eating Soup with a ForkBy Alan Cooper

List Price: $25.00Our Price: $17.00

Add to Shopping Cart

Availability: Usually ships within 24 hours

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Marriott Single Image Inventory

CUSTOMERS

INVENTORY

Accurate, Efficient, Precise, Consistent and Yield-managed!

M ARSHA

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System Z mainframe

(Running TPF, z/VM, zLinux)

The MARSHA Reservations System

TCP/IP

Supports;XML, SOAP, MQ, SSL,

HTTP, “C++” lang.

Pure TCP/IP(Easily Connects to any “Open System”)

An “Open System”

MARSHA

TPF

Central Reservations System

(provider of SOA services)

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Call Centresmarriott.com

Sabre

Worldspan

Galileo

Pegasus

Priceline/

“The Web”

TPF

Amadeus

NetworkTravelweb

expediahotels.com

Pegstour

Marsha-Link

RitzCarlton.com

worldres.com

Past B2B and B2C connections

MARSHA

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Call Centresmarriott.com

Sabre

Worldspan

Galileo

Pegasus

Priceline/

“The Web”

TPF

Amadeus

NetworkTravelweb

expediahotels.com

Pegstour

Marsha-Link

RitzCarlton.com

Mind the Gap !!

MARSHA

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“The Web”

TPF

Why has this gap been difficult to fill?

In the past, each new connection has been developedwith specific code configurations within the MARSHAApplication to service each partner’s needs. This hasresulted in expensive (>$400k) costs and excessiveelapsed timelines to connect partners.

MARSHA

The current “cost of entry”for potential new Businesspartners is too high, both incosts and elapsed time.

GAP

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“The Web”TPF

RitzCarlton.com

MARSHA

OTAcompliant

CWAService

SOAP message

CWA (CityWide Availability)SOAP transaction developedfor RitzCarlton.com websitedirect connection to MARSHAimplemented in early 2007

Proven ROI and agility with SOA

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.

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“The Web”

TPF

RitzCarlton.com

MARSHA

OTAcompliant

CWAService

This required no MARSHA Development or QA regression,with only Firewall, Security and configuration settings needed, resulting in anapproximate <$2,000 cost for rapid enablement of this new B2B connection!

kayak.com

The same SOAP transaction wasenabled for kayak.com andimplemented a few weeks later!

SOAP message

Proven ROI and agility with SOA

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(re-usable Services integrated into core MARSHA)

Availability

Reservation

RateData

GNR

RoomProduct

Inventory

AvailabilityService

RateDataService

InventoryService

RoomProductService

GNRData

Service

ReservationService

Efficient new processlogic for each serviceallows better integration, access to lower level internal objects andavoids exception coding

re-usableOTA

StandardServices

Result: = lower maintenance costs= higher speed to market= business flexibility= agility

coreMARSHA

OTA compliant B2B Connections

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“The Cloud”

TPF

Ready to “Mind the Gap”

B2Bpartner

Suite of “core” SOA services (transactions) in Open Travel Alliance industrystandard format ready to quickly and efficiently connect to new B2B partnerswith business value determining decisions – not IT costs & complexity!

MARSHA

OTAServices

Network &

Firewall

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“The Cloud”

TPF

DataPower

B2B Partner customization performedon external “wire-speed” SOA Appliance

OTA standardService

partiallycustomized

Service

B2Bpartner

Changes to XML transaction data formats are easily changed or customized onthe DataPower Appliance instead of within MARSHA so does not need any TPFchanges or QA testing unless core functionality customization required for partner

MARSHA

dynamictransformation

OTAServices

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“The Cloud”

TPF

Harvesting Revenue Generation Links

MARSHA

GAP

IncrementalRevenue

Generation!

$$$$

$$$$

Existing High VolumeB2x Direct Links

and Sales Channels

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“Direct Connect” Project Goals

• Create Industry standard suite of Reservation “services” which can be re-used for many new B2B partners

• Deliver capability to quickly implement new B2B connections without excessive code development and long elapsed times

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“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

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Res Agts

Secure Dial-up

The Web

Fidelio & Opera PMS

Full Service PMS

SABRE

Galileo

Worldspan

Pegasus

TravelWeb

MARSHA

TPFAmadeus

eTools

FossePMS

Expedia

Marsha Link

Kayak

Marriott International Worldwide Sales Supply Chain

marriott.com

$$$24x7 Revenues !

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Questions?