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Business Application Acquisition Methods: Lease vs Purchase and SaaS

Business Application Acquisition Methods: Lease vs Purchase and SaaS

QUESTION

  1. What is a leased business application? What is a purchased business application?
  2. What is SaaS?
  3. What is an RFP/RFI? What information does the RFP/RFI document contain?

Chapter 8

Answer the following questions:

  1. Describe an Enterprise SOA Portfolio Plan.
  2. What is governance?
  3. Describe the five levels of SOA governance.

ANSWER

Business Application Acquisition Methods: Lease vs. Purchase and SaaS

Leased Business Application:

In a leased business application model, the organization rents access to the software and associated infrastructure from a vendor. This is often referred to as a Software-as-a-Service (SaaS) model. The vendor maintains the application, handles updates, and ensures its availability. The organization pays a subscription fee for access to the application, typically on a monthly or annual basis.

Purchased Business Application:

With a purchased business application, the organization acquires a perpetual license to use the software. The software is installed on the organization’s own servers or deployed in a private cloud environment. The organization is responsible for maintaining the application, including updates, security patches, and bug fixes. This model may also require upfront licensing costs as well as ongoing costs for maintenance and support.

SaaS (Software-as-a-Service):

SaaS is a cloud-based model where the software is delivered over the internet. Organizations access the application through a web browser or mobile app, eliminating the need for local installation or server maintenance. SaaS applications are typically offered on a subscription basis, making them a cost-effective option for many organizations.

RFP/RFI (Request for Proposal/Request for Information)

RFP (Request for Proposal):

An RFP is a formal document used by an organization to solicit proposals from potential vendors for a specific product or service. The RFP outlines the organization’s requirements, specifications, evaluation criteria, and timeline for submitting proposals. Vendors use the RFP to understand the organization’s needs and tailor their proposals accordingly.

RFI (Request for Information):

An RFI is a less formal document used by an organization to gather information from potential vendors in the early stages of the procurement process. An RFI might be used to get a better understanding of a vendor’s capabilities, product offerings, or pricing models. The information gathered through an RFI can then be used to develop a more focused RFP.

Information Contained in RFP/RFI Documents:

  • Project Description: A clear and concise description of the project or problem the organization is trying to solve.
  • Requirements: Specific details about the functionalities and features required in the solution.
  • Evaluation Criteria: The factors that will be used to evaluate vendor proposals, such as experience, qualifications, and pricing.
  • Timeline: Deadlines for submitting proposals or responses to the RFI.

Enterprise SOA Portfolio Plan

An Enterprise SOA Portfolio Plan outlines the organization’s strategy for adopting and managing Service-Oriented Architecture (SOA). This plan helps ensure that SOA initiatives are aligned with business goals and deliver tangible benefits. The plan typically includes the following elements:

  • Business Goals: Articulating how SOA will support the organization’s strategic objectives.
  • Inventory of Existing Services: Identifying and documenting all existing IT services within the organization.
  • Service Roadmap: A roadmap outlining the prioritization and sequence of service development and integration initiatives.
  • Governance Framework: Establishing a framework for managing the SOA lifecycle, including service design, development, deployment, and retirement.
  • Skills and Resource Assessment: Evaluating the organization’s current skillset and identifying any training or resource gaps to support SOA implementation.
  • Metrics and ROI: Defining metrics to measure the success of the SOA initiative and track the return on investment (ROI).

SOA Governance

Governance refers to the set of processes, roles, and policies that ensure the effective and aligned use of SOA principles within an organization. Effective SOA governance helps to:

  • Ensure alignment with business goals: SOA initiatives are prioritized and implemented based on their contribution to business objectives.
  • Maintain service quality and consistency: Governance processes promote the creation and management of high-quality, reusable services.
  • Promote collaboration and standardization: Governance fosters collaboration between business and IT stakeholders, ensuring consistency across SOA initiatives.
  • Manage risk and compliance: Governance frameworks help mitigate risks associated with SOA implementations and ensure compliance with relevant regulations.

There are five commonly referenced levels of SOA governance:

  • Service Strategy: Sets the overall direction for SOA adoption, aligning it with business goals.
  • Service Architecture: Defines the principles and standards for designing and managing SOA services.
  • Service Design and Development: Establishes guidelines and processes for creating and implementing reusable services.
  • Service Deployment and Operations: Focuses on the deployment, monitoring, and management of SOA services.
  • Service Measurement and Management: Defines metrics to measure the success of SOA initiatives and identify areas for improvement.

These levels work together to create a comprehensive governance framework that ensures the successful adoption and utilization of SOA within an organization.

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