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1
Fima Katz, April 8, 2023
2
Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
Marquee Clients Marquee Clients
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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
A Troubling Trend?A Troubling Trend?
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Fima Katz, April 8, 2023
Software License ParadigmSoftware License Paradigm
∑∑y = 1
N
LicenseLicenseFeeFee
+ AnnualAnnualS&MS&M
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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
Applications Software StackApplications Software Stack
Operating SystemOperating System
Struts, JSF
Se
cu
rity
Se
cu
rity
Ma
na
ge
me
nt
To
ols
Ma
na
ge
me
nt
To
ols
Ex
ad
el
Op
en
So
urc
e
Ex
ad
el
Op
en
So
urc
e
De
ve
lop
me
nt
Wo
rkb
en
ch
De
ve
lop
me
nt
Wo
rkb
en
ch
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
Composite ApplicationsComposite Applications
Externalization
CompositeApplications
Data Sources
Services
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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
Application Deployment GridApplication Deployment Grid
ApplicationGrid
DataBases
Internet
• Development de-coupled from deployment• Flexible and scalable• All benefits of SOA
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Fima Katz, April 8, 2023
Thank You!Thank You!
Fima Katz, President & CEOFima Katz, President & CEO
Exadel Inc,Exadel Inc,
[email protected]@exadel.com
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Fima Katz, April 8, 2023
Additional Slides not included in presentation. Please check.
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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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
TechnologyTechnologyComponentsComponents
OperatingOperatingSystemSystem
OperatingOperatingSystemSystem
BusinessBusinessApplicationApplication
BusinessBusinessApplicationApplication
Core Core ComponentsComponents
Core Core ComponentsComponents
TechnologyTechnologyComponentsComponents
TechnologyTechnologyComponentsComponents
OperatingOperatingSystemSystem
OperatingOperatingSystemSystem
BusinessBusinessApplicationApplication
BusinessBusinessApplicationApplication
Business Solutions:Exadel
Infrastructure Software:JBoss,
SpikeSourceOpenLogic,
ITGroundwork,GlueCode,
RedHat
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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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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Fima Katz, April 8, 2023
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