Step 3 : Integrate your existing applications
Most companies struggle with a disconnected mix of mainframe, client/server and web applications, and this complexity is further compounded by any merger and acquisition activity. Web services promise a high return on investment by integrating a company’s existing applications and IT systems, and those of suppliers, partners and customers, to enable rapid information sharing and transaction processing. It’s cost-efficient, and uses what a company already has.

The birth of the application server began back with transaction processing monitors and has evolved through web servers to Enterprise Application Integration (EAI) and Web Services, which tie together various parts of a company’s systems to provide more useful access to information. Web Services and EAI can significantly streamline and coordinate a company’s business processes and, according to Meta Group, offer greater competitive differentiation and higher return on investment in a down economy.

In the past, each application was its own central communication station – this meant it needed to know how to link to many other applications the business used as well as to the database. The new breed of application server enables applications to communicate via a central platform, and is an efficient way to centralise data and link all of a business’ applications.

The market for this key software infrastructure product is heating up. Analysts have reported that the Asia Pacific (excluding Japan) market in 2001 grew at more than 39% and the pace of growth is set to increase.

Software outsourcing – predictable costs, professionally managed
One further key consideration to maximise IT budgets is the new model of software outsourcing. A first-class software system is critical in delivering strategic intelligence and indispensable in managing the company’s greatest asset – information. However, the actual management of the software systems can be a distraction and a burden for a company whose core competence is not related to IT.

Today, progressive organisations in both the private and public sectors, are turning to software outsourcing, the so-called ‘utility computing’ model, which allows a company to have its software professionally managed either at their own offices, the IT vendors premises, or at a third party’s premises - and to connect to their data through a browser. Just as electricity is available at the flick of a switch, their IT system is accessed at the click of a mouse.

The benefits are enormous. Software outsourcing eliminates all the headaches - the sheer administrative burden of maintaining essential business software, the deployment of new IT projects, the ongoing upgrades, the sourcing of scarce IT staff, and the employee or consultant costs. And the uptake is increasing. With Oracle, companies can select to have their software housed at their own premises, at Oracle’s data centre, or at a third party’s data centre. In all these models, Oracle professionals manage the software remotely – all for a predictable monthly fee.

Outsourcing of the IT infrastructure is not new, but the traditional model is changing. By accessing software applications like a utility, via internet-enabled systems, companies can better manage the distribution of their resources. Mobility of the workforce can be achieved easily and transparently by providing access to the corporate systems any place, any time via a spectrum of mobile devices.

Spending wisely
Today, businesses of all sizes should concentrate on investing their IT budgets in technology that maximises their existing infrastructure, and that allows them to focus on their core business, while taking a longer-term view to ensure that they have the necessary technology in place to emerge from the current economic downturn ahead of the competition. Those who spend wisely today will be well placed to be the winners tomorrow.

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