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January 22, 2008

SOA Adoption Increases across Western European Sectors

By Anuradha Shukla, TMCnet Contributing Editor

A recent IDC (News - Alert) study indicates that there is a growing interest in Service Oriented Architecture (SOA) adoption across Western European sectors. Adoption status and plans vary from industry to industry, and banking, telecoms, as well as government are the top 3 sectors to watch. IDC says that information around SOA adoption in Western Europe is often fragmented and thus it might become difficult to get a clear vision of where the real SOA opportunities are.
Angela Vacca, consulting manager, European Vertical Markets said in a statement that a survey clearly indicates the SOA market is continuing to evolve as a wider range of industries are in the process of deploying this architectural approach. She said that this means there are new opportunities for IT vendors operating in the SOA sphere.
According to the survey, the SOA understanding is quite low since over half of the interviewed companies were familiar with this technology. IDC survey data confirms a growing interest in this technology.
In the banking industry, 25 percent of the respondents have an SOA solution that they are currently maintaining. The report shows that 21 percent are currently developing SOA, and 27 percent have plans for the next 24 months. The report further shows that the telecoms industry is among the most IT-intensive areas and telecoms companies usually lead the way in the use of innovative technologies.
The research firm adds that in SOA adoption the telecoms/media/transport/utilities sector is the fourth vertical in terms of current adoption and the second (after banking) in terms of short-term investment plans. The government organization data indicates that 18 percent of respondents have an SOA solution that they are maintaining. Also, 8 percent of the respondents are currently developing SOA, and 26 percent of organizations plan to invest in the next two years.
The main reason given by the respondents for the adoption of SOA is improvement in the quality of IT systems (26 percent). A similar percentage of respondents adopt SOA to lower IT operation costs. According to IDC, understanding the business drivers currently drawing companies towards SOA is the best way to position on the Western European competitive arena for SOA IT vendors.

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Anuradha Shukla is a contributing editor for TMCnet. To read more of Anuradha’s article, please visit her columnist page.

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