Oracle SOA - Legacy Modernization Benefits

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Author: Packt Publishing Published on: 10th Dec 2008

Business Value What Really Matters?

It is very important to take a holistic view on what the benefits are for legacy modernization. There are, of course, cost savings in hard dollars that are associated with a largescale modernization. After all, TCO/ROI is often what drives most organizations. However, we have seen an increasing amount of proof points around the soft dollar costs. Those are the benefits that have an indirect impact on costs, but a direct impact on the quality of service, agility, and the ability to service the customer. Remember, not all organizations are driven by profits, for example, the Public sector. So, Clevel executives do not just look at the hard dollars, but also consider the soft dollar impact to modernization. The following is a detailed list of some of these hard and soft dollar benefits of legacy modernization. These are all real world examples, though some of the company names have been omitted for the purpose of nondisclosure.

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These examples are mapped to specific Oracle products and partner's solutions delivered in a modernization effort.

Soft-Dollar Benefits	Solution Details	Hard Dollar Benefits
Improved access to data	Simplified access to relationally based data, open to self service reporting	Using Oracle BI (Discoverer) a United States federal research agency reduced Compliance with National Nuclear Security Agency regulations and management reporting from 5 weeks to less than an hour.
Ability to enable Business Intelligence	Data harvesting and business analysis enables business agility	A hardware storage vendor increased Sales Productivity 100 percent, sales metrics updated 4 times a day using Oracle BI
Grid enabled infrastructure	Oracle Database and Middleware Grid technology lowers costs, increases uptime, increases performance and allows for capacity ‘on demand'.	Average results when moving from SMP to Oracle GRID: 1. ROI over 5 years ($1.7M investment) 150 percent 2. Hardware Savings First Year 55 percent 3. Projected HW Savings in 5 years 73 percent 4. Reduced Labor Requirement 3.75 FTE 5. Improved Computing Performance 10 percent
Reduced time to market for enhancements	Simplified and highly productive development environments enhance developer productivity	1. A Sports Equipment Mfg e implemented a customized B2B portal built and launched in 3 months. 2. U.S. based Insurance saw a 25 percent savings on process changes to the existing system using Oracle BPEL.
Faster response to regulatory/legislative changes in health insurance	Migration from mainframe to Tuxedo enabled tighter integration with J2EE components at reduced cost and enabled development organization to immediately start extending existing COBOL application with Java components, transparently to existing COBOL programs	Modules that used to take 6-12 month to develop and deploy, are now completed in 2-3 month Customer reduced overall TCO of $65M a year for a 12,000 MIPS mainframe environment down to $10M a year for an open systems infrastructure.
Open java based solution with vendor choice	Java based solutions foster greater competition among vendors and avoid vendor lock in
Ability to use third party open tools	Very rich third party toolset eco-system using open systems
Ability to create robust internet applications	Open access to end users, remote staffing, and partner eco-systems