Abstract
The proliferation of modular and standards-based service-oriented architectures (SOAs) promises to make corporate IT operations more agile and adaptable. However, the SOA trend is also catalyzing changes within the vendor community that could create conflicts among long-time partners. One of these changes is the emerging strategy of many systems integrators (SIs) to use SOA methodologies to create reusable assets. These software assets encapsulate best practices and business processes that the SIs formerly offered only via custom consulting projects.
As SIs shift more of their consultant-based expertise into SOA business services and other software, they are likely to encroach into territory that was once the exclusive preserve of applications ISVs. The largest of these ISVs which have ambitious SOA-based initiatives of their own should be able to reach mutually beneficial arrangements with the SIs, which have long been their partners. However, the prospects for second- and third-tier ISVs are less certain, and potentially bleak. These smaller vendors may be able to leverage SOA standards to offer best-of-breed complements to broad solutions sold by the major ISVs and SIs. However, many ISVs may be driven from once-safe vertical market and specialty niches by new business services competition from SIs.
Table of Contents
Key messages
- SOA will change vendor business models and relationships
- Major application vendors have little to fear
- Smaller vertical-market and specialty ISVs face increasing threats

