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Fima Katz, April 8, 2023

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Exadel Quick FactsExadel 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 www.mortgage.com

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Marquee Clients Marquee Clients

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Gartner’s Hottest Topics of Gartner’s Hottest Topics of 2005 2005

Open-Source Software: will revolutionize software markets by will revolutionize software markets by moving revenue streams from license fees to services and moving revenue streams from license fees to services and supportsupport. 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. .

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Open Source ManiaOpen Source Mania

SourceForge 2001: Registered Projects: 20,000

2005: Registered Projects: 100,000+

Eclipse

Apache Foundation

ObjectWeb

Tigris.org

Open Symphony

Open Source Development Lab (Linux)

Avalanche Technology Cooperative (Cargill, Best Buy, Thompson, …)

Commercial: JBoss, MySQL, Zend, SpikeSource, OpenLogic

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Open Source Application Open Source Application InfrastructureInfrastructure

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

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Open Source ApplicationsOpen 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

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Open Source in Business Open Source in Business ApplicationsApplications

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

CNET.com 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

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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.

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Open Source Myths and RealityOpen Source Myths and Reality

Good quality

Community development

Community support

Functionally rich

Free

Do it yourself, just download

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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?

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Is It Ready for Business?Is It Ready for Business?

Current Gap

Lack of SupportLack of SupportLack of SupportLack of Support

Lack of TrainingLack of TrainingLack of TrainingLack of Training

Lack of SkillsLack of SkillsLack of SkillsLack of Skills

Lack of ToolsLack of ToolsLack of ToolsLack of Tools

Lack of IntegrationLack of IntegrationLack of IntegrationLack of Integration

EnterpriseApplications

Reliable & Reliable & PredictablePredictableReliable & Reliable & PredictablePredictable

Easily Easily AdoptableAdoptable

Easily Easily AdoptableAdoptable

Available Available ResourcesResourcesAvailable Available ResourcesResources

High Degree of High Degree of AutomationAutomation

High Degree of High Degree of AutomationAutomation

Performance &Performance &ScalabilityScalability

Performance &Performance &ScalabilityScalability

Low CostLow CostLow CostLow Cost

High QualityHigh QualityHigh QualityHigh Quality

Unique Unique FunctionalityFunctionality

Unique Unique FunctionalityFunctionality

No Vendor No Vendor Lock-InLock-In

No Vendor No Vendor Lock-InLock-In

MultipleMultipleChoicesChoicesMultipleMultipleChoicesChoices

OpenSource

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Open Source Is Here to StayOpen 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

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Open Source Adoption StagesOpen 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

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Enterprise SoftwareEnterprise 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!

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A Troubling Trend?A Troubling Trend?

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Software License ParadigmSoftware License Paradigm

∑∑y = 1

N

LicenseLicenseFeeFee

+ AnnualAnnualS&MS&M

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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.

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Doing More With Less…Doing More With Less…

Time

$$$ IT Budget

Business SolutionsBusiness Applications &Business Components

Infrastructure Software(Core & Technology Services)

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Applications Software StackApplications Software Stack

Operating SystemOperating System

Struts, JSF

Se

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Se

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Ma

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Ma

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Ex

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De

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Wo

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Tomcat

Spring WebFlow

Business ProcessBusiness ProcessIntegrationIntegration

MySQL, Postgres, Derby, HDB, DB4O

JBoss, Jonas, ResinHibernate, JDO,

iBates

WorkflowWorkflow PortalPortal

Spring

Business Business Intelligence:Intelligence:

BIRTBIRT

Search:Search:LuceneLucene

Messaging:Messaging:ActiveMQActiveMQ

Composite Enterprise ApplicationsComposite Enterprise Applications

Business Components & ServicesBusiness Components & Services

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Business Case for Open SourceBusiness Case for Open Source

IBM BEA Open Source

Application Server $175,000 $136,000 $0

(Spring framework)

Application Server Maintenance (Annual)

$40,000 $30,000 $0

Database $150,000

(DB2)

$240,000

(Oracle)

$5,000

(MySQL)

Database Maintenance (Annual) $35,000 $45,000 $15,000

Development Tools $50,000

(IBM WSAD)

$40,000

(Borland JBuilder)

$10,000

(Exadel Studio)

Implementation $336,000 $336,000 $249,000

Application Support/Maintenance $90,000 $90,000 $52,000

Total $876,000 $917,000 $331,000

Based on a 3-year total TCOBased on a 3-year total TCO

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3-Year TCO3-Year TCO

Year 1 Year 2 Year 3 Total

IBM $846,000 $180,000 $180,000 $1,206,000

BEA $887,000 $175,000 $175,000 $1,237,000

Open Source $324,000 $67,000 $67,000 $458,000

Total Savings (IBM) $522,000 $113,000 $113,000 $748,000

Total Savings (BEA) $563,000 $108,000 $108,000 $779,000

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Is There Hope?Is There Hope?

Everything that can be invented has been invented.

Charles H. Duell, Commissioner

United States Offices of Patents

1899

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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

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Successive Technology Successive Technology ArchitecturesArchitectures

App

lica

tion

Usa

ge

Time

Mainframe applications

Packaged applications

Component applications

Web service applications

Open Source Applications

1998

2002

2006

2010

Source: PWC 2002 Technology Assessment

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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)

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Composite ApplicationsComposite Applications

Externalization

CompositeApplications

Data Sources

Services

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Current Deployment Current Deployment InfrastructureInfrastructure

WebServers

ApplicationServers

DataBases

Internet

• Development with targeted deployment architecture• Not flexible enough, significantly limits benefits of SOA

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Commodity Application Grid Commodity Application Grid

Commodity Hardware Platform - IntelCommodity Hardware Platform - IntelCommodity Hardware Platform - IntelCommodity Hardware Platform - Intel

Commodity Operating System - LinuxCommodity Operating System - LinuxCommodity Operating System - LinuxCommodity Operating System - Linux

Business ServicesBusiness ServicesBusiness ServicesBusiness Services

On-Demand Business ApplicationsOn-Demand Business ApplicationsOn-Demand Business ApplicationsOn-Demand Business Applications

Commodity Software – Open Source PlatformCommodity Software – Open Source PlatformCommodity Software – Open Source PlatformCommodity Software – Open Source Platform

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Eclipse Application BackboneEclipse Application Backbone

Eclipse Application FrameworkEclipse Application FrameworkEclipse Application FrameworkEclipse Application Framework

DesignDesignDesignDesign TestTestTestTest ManageManageManageManage Maintain &Maintain &EnhanceEnhance

Maintain &Maintain &EnhanceEnhanceDeployDeployDeployDeploy

Build,Build,Compose,Compose,IntegrateIntegrate

Build,Build,Compose,Compose,IntegrateIntegrate

Information Flow

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Application Deployment GridApplication Deployment Grid

ApplicationGrid

DataBases

Internet

• Development de-coupled from deployment• Flexible and scalable• All benefits of SOA

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Thank You!Thank You!

Fima Katz, President & CEOFima Katz, President & CEO

Exadel Inc,Exadel Inc,

[email protected]@exadel.com

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Additional Slides not included in presentation. Please check.

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Unleashing Power of SOAUnleashing 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.

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Changes in Value PropositionChanges in Value Proposition Changes in Value PropositionChanges in Value Proposition

Core ComponentsCore ComponentsCore ComponentsCore Components

Business Business ComponentsComponents

Business Business ComponentsComponents

TechnologyTechnologyComponentsComponents


OperatingOperatingSystemSystem


BusinessBusinessApplicationApplication


Core Core ComponentsComponents

Core Core ComponentsComponents







Business Solutions:Exadel

Infrastructure Software:JBoss,

SpikeSourceOpenLogic,

ITGroundwork,GlueCode,

RedHat

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Applications: Paid Subscriptions, Applications: Paid Subscriptions,

ServicesServices

Open SourceOpen SourceFrameworksFrameworks

Open SourceOpen SourceFrameworksFrameworks

Open Source Software

Packaged Deployment Services

Annual Software Support Subscriptions

Exadel Open Exadel Open Source IntegrationSource Integration

Exadel Open Exadel Open Source IntegrationSource Integration

Free Software

Exadel MortgageExadel MortgageBackboneBackbone

Exadel MortgageExadel MortgageBackboneBackbone

Exadel MortgageExadel MortgageEnterpriseEnterprise

Exadel MortgageExadel MortgageEnterpriseEnterprise

Exadel RetailExadel RetailBackboneBackbone

Exadel RetailExadel RetailBackboneBackbone

Exadel RetailExadel RetailEnterpriseEnterprise

Exadel RetailExadel RetailEnterpriseEnterprise

Exadel BusinessExadel BusinessBackboneBackbone

Exadel BusinessExadel BusinessBackboneBackbone

Exadel XXXExadel XXXBackboneBackbone

Exadel XXXExadel XXXBackboneBackbone

Exadel XXXExadel XXXEnterpriseEnterprise

Exadel XXXExadel XXXEnterpriseEnterprise

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Pervasive Business ChallengesPervasive 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.

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Software Vendor Strategy Software Vendor Strategy ConsiderationConsideration

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. Salesforce.com

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

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AgendaAgenda

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

Documents

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