Introduction. For the course’s second reading block, we covered definitions of Customer Relationship Management (CRM), Enterprise Resource Management (ERP), and Supply Chain Management (SCM) software, among others. Our readings also covered Business Intelligence (BI), Service-Oriented Architecture (SOA), and Software as a Service (SAAS) – all critical concepts for understanding the modern IT architecture environment.
Topic #2, Post #1 “Application Architecture Layer”, will discuss the cloud / “on-demand” approach to software applications and examine some benefits and challenges to using this approach.
Summary. The principle of using software cloud services dates back to the 1980s-1990s (first CompuServ, then SalesForce). The concept is premised on maintaining software on remote servers located away from the user, sometimes by hundreds or thousands of miles. The alternative to cloud computing are the more traditional systems of (a) maintaining local servers or (b) maintaining multiple copies of software on local workstations. Cloud infrastructure is premised on efficiency increases but expanded with outsourcing principles, with vendors offering software and solutions that would otherwise be unavailable with “homegrown”, internally-available solutions. Gartner estimates that “by 2025, 30% of organizations will rely solely on SaaS applications for their mission-critical workflows” and that 60% of organizations’ IT expenditures for applications is now spent on cloud software. Cloud computing is closely related to software as a service (SAAS), in which vendors offer software packages – normally, via the cloud – as opposed to enterprises maintaining the software systems internally. These methods of remote storage and outsourcing have pros and cons examined below:
2.a. Benefits of the Cloud Software Approach.
2.a.1. Functionality. By using remote software provided by external vendors, enterprises are able to increase functionality beyond the scope of what they can accomplish “in-house”. The complexity of software and services has increased; few enterprises, regardless of scope, are capable of managing all software services internally. Good examples of externally-sourced software functionality include credit checks and payment systems.
2.a.2. Efficiency. Whether software is outsourced to an external vendor or provided by an internal IT department, there are efficiency opportunities by moving software to the cloud. This includes the idea of virtual machines and the newer concept of containers, but also the more traditional concepts of service-oriented architecture (SOA). Although these three methods vary in their implementation, they share a core concept of using a single instance of a program to serve multiple machines. This reduces the overall requirement for hardware and other resources as users essentially “share” infrastructure.
2.a.3. Enabling Microservices (through Service-Oriented Architecture). The cloud software approach allows IT departments more effectively choose the portfolio of internal services they provide. Instead of outsourcing entire software packages, microservices allow an enterprise’s IT function to more discretely decide which services can be accomplished internally and which can be outsourced. Cloud computing an important enabler to any microservice architecture.
2.b. Challenges of the Cloud Software Approach.
2.b.1. Governance. Governance refers to a standardized set of rules for software development and implementation. Cloud computing may complicate governance by providing alternate services and infrastructure which doesn’t match the enterprise architecture plan and/or standards. While governance documents can reduce some of this, cloud services increase the overall risk that digital infrastructure standards
2.b.2. Security. Distributed systems can present security challenges, including (a) transferring secure data over external networks and (b) providing employees more opportunities to share proprietary or classified information. Providing an enterprise’s internal data to a third party is also a concern. Industries with high security requirements – banking, medical, and government research programs, for example – may be reluctant to hand over their information to third-party vendors. For example, Gartner found that “organizations that have installed technology to track SaaS use consistently find their employees storing regulated and sensitive data in their personal cloud-based accounts. This raises concerns about both security and regulatory compliance.” – Gartner, “Establish Effective SaaS Governance in Your Organization”, 16 DEC 2020.
2.b.3. Geographic Factors. Although cloud infrastructure is advertised as “on-demand”, any remote system depends on bandwidth and other physical or regional factors. While modern cloud system redundancy reduces some of that risk, there is risk-reduction value to having IT infrastructure resources on-site and serviced internally by trusted employee technicians.
SOURCES:
Service-Oriented Architecture: https://www.cio.com/article/272203/service-oriented-architecture-soa-definition-and-solutions.html
How To – Software as a Service (SAAS) Governance: https://www.gartner.com/document/4009888?ref=d-linkShare
Effective SAAS Governance: https://www.gartner.com/document/3994542?ref=d-linkShare