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Unlock equity in legacy systems through SaaS

In almost every organisation, IT has existing "legacy" systems that represent massive investment over many years. You can derive a return on that investment, and help cost-justify further investment in SOA. How?

The answer is not simple, but often worthwhile: make those legacy systems available to business partners through SaaS or ASP business models.

  • The partners get to use your tried and tested systems
  • You and the partners get tighter integration of the supply chain
  • You derive revenue from systems that otherwise represetn sunk costs
  • The revenue provides a big benefit on the business case for SOA development to crack open those legacy systems, which otherwise is often hard to justify
  • Your organisation sees IT as a progressive contributor to partner relations and to the bottom line

For example:
An insurance company has big complex COBOL systems on a mainframe. The embedded business rules are too complex (and too poorly documented) to easily replace. In the past the company did all its own retail but of course these days they sell through banks and car dealers and all sorts of new channels. Those channels are expected to comply with those same complex business rules. help them out by hosting their insurance business on the legacy systems - for a fee or reduced margin.

Or since we are focused on IT Operations here, another example:
A systems management vendor convinced predecessors at a large manufacturer to spend millions on a monolithic management framework. It has taken many times the initial estimated effort and investment, but now the system is actually pretty good and it can monitor everything from a notebook to z-series mainframe, from a UPS to a tape robot. Objects are mapped to services, alerts are ticketed as incidents, and SLAs are measured and reported. Unfortunately in the modern world, the manufacturer is only ione part of an integrated supply chain and the organisation is now heavily dependent on the IT systems of partners. So the manufacturer offers operational outsourcing services to partners at a discounted rate so as to integrate their systems in a single service view and mitigate the risk to the manufacturer.

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