Software Platform Trends and Emerging Technologies
Software Platform Trends and Emerging Technologies
Software Platform Trends and Emerging Technologies
3. Enterprise software
5. Software outsourcing
Linux, an operating system related to Unix, is one of the most well-known open-
source software, and is the world's fastest growing client and server operating
system, along with related Linux applications. The rise of open-source software,
particularly Linux and the applications it supports, has profound implications for
corporate software platforms: cost reduction, reliability and resilience, and
integration, because Linux works on all the major hardware platforms from
mainframes to servers to clients. Because of its reliability, low cost, and integration
features, Linux has the potential to break Microsoft's monopoly of the desktop.
For each of the computing environments in which Java is used, Sun has created a
Java Virtual Machine that interprets Java programming code for that machine. In
this manner, the code is written once and can be used on any machine for which
there exists a Java Virtual Machine. A Macintosh PC, an IBM PC running Windows,
a Sun server running Unix, and even a smart cellular phone or personal digital
assistant can share the same Java application.
Java is typically used to create small Web programs called applets, but is also a
very robust language designed to handle text, data, graphics, sound, and video.
Java enables PC users to manipulate data on networked systems using Web
browsers, reducing the need to write specialized software. A Web browser is an
easy-to-use software tool with a graphical user interface for displaying Web pages
and for accessing the Web and other Internet resources.
Software for enterprise integration is one of the most urgent software priorities
today for U.S. firms who need to integrate existing legacy software with newer
technology. Replacing isolated systems that cannot communicate with enterprise
software is one solution; however, many companies cannot simply jettison
essential legacy mainframe applications. Some integration can be achieved
by middleware, software that creates an interface or bridge between two different
systems. Firms increasingly purchase enterprise application integration (EAI)
software that enables multiple systems to exchange data through a single software
hub.
Figure 5-12
EAI software (a) uses special middleware that creates a common platform with which all
applications can freely communicate with each other. EAI requires much less programming than
traditional point-to-point integration (b).
Web services, loosely coupled software components that use Web communication
standards, can exchange information between different systems regardless of
operating system of programming language. Web services technology is founded
on Extensible Markup Language (XML). XML was developed as a more powerful
markup language than Hypertext Markup Language (HTML), a page description
language specifying how content appears on Web pages. By marking data with
XML tags, computers can interpret, manipulate, and exchange data from different
systems.
Web services communicate through XML messages over standard Web protocols,
such as:
SOAP (Simple Object Access Protocol) is a set of rules for structuring
messages that enables applications to pass data and instructions to one
another.
Figure 5-13
Dollar Rent A Car uses Web services to provide a standard intermediate layer of software to “talk”
to other companies’ information systems. Dollar Rent A Car can use this set of Web services to
link to other companies’ information systems without having to build a separate link to each
firm’s systems.
Other software trends include:
Web 2.0 refers to "the new Web applications" like those above and is also the name
of an annual conference. Web 2.0 can be described also as an expression of all the
changes above, plus changes in the way people and business use the Web and
think about human interaction on the Web. These changes include seeing the Web
applications as services, not packaged software, seeing users as co-developers,
harnessing collective intelligence, and lightweight user interfaces, development
models, and business models.
Figure 5-14
FIGURE 5-14 THE CHANGING SOURCES OF SOFTWARE
U.S. firms will spend nearly $340 billion on software in 2006. Over 30 percent of that software
will come from outsourcing its development and operation to outside firms, and another 15
percent will come from purchasing the service from application service providers either on the
Web or through traditional channels.
Sources: Authors estimates; Bureau of Economic Analysis, 2006; IT Spending and Trends,
eMarketer, 2004; IT Spending and Trends, eMarketer, 2005; SEC 10K statements, various firms.
A commercial software package is a prewritten set of software programs for certain
functions, eliminating the need for a firm to write its own software program.
Enterprise systems are so complex that few corporations have the expertise to
develop these in house and instead rely on enterprise software packages from
vendors such as SAP and PeopleSoft.
Large and medium-sized businesses are using ASPs for enterprise systems, sales
force automation, or financial management, and small businesses are using them
for functions such as invoicing, tax calculations, electronic calendars, and
accounting. Application service providers also enable small and medium-sized
companies to use applications that they otherwise could not afford