Market Trends
McKinsey
June 2003: 51 percent of software execs: "Offshoring strategy is already underway"; 20 percent more will begin Offshoring software development in the next 12 months. 76 percent are focusing on India; the second-place destination is Eastern Europe."
Giga Group
"Legacy
Renewal, the act of incorporating legacy assets into ongoing application development
activities, will be a primary focus in IT shops once Year 2000 (Y2K) conversions are
complete"
"Legacy Renewal technologies can (and
will) play a role in distributed component-based architectures"
"Those vendors and consultants that can bridge the gap between legacy technologies and new Internet-based development will be best positioned to serve their customers"
IDC Research
The EAI services market will become the most important and fastest-growing IT sector in
the next three to five years.
"worldwide revenues in this market will jump from $5 billion in 2000 to nearly $21
billion in 2005. This increase represents a strong compound annual growth rate (CAGR) of
over 30%. By comparison, the corresponding opportunity of the overall IT services
industry will increase at a CAGR of 11% during the same period."
"The North America and Western Europe will generate more than 90% of the demand for global
EAI services through 2005, with Japan and Latin America driving the remainder of this
service demand. Issues that may inhibit the growth of EAI include, "cost of services,
human issues regarding EAI engagements, and business-to-business integration challenges."
Gartner Group
"By the endo of 2004, 1 in 10 IT jobs at US IT companies and 1 in 20 at non-IT companies will move offshore"
"Legacy extension has been shown to deliver immediate benefits without disruption to
current applications"
"Through 2003, 80% of AD organizations
will exercise some form of legacy extension."
"By 2003, at least 40 percent of
enterprises will be engaged in some form of architectural re-engineering, up from 5
percent in 2000."
"By 2003 more than 75 percent of
e-business solutions will reuse existing systems in conjunction with package software or
outsource development. Gartner also recommends that e-business strategies should identify
the interface points for existing systems and reuse to reduce the risk of failure."
"We expect a significant number of AD
organizations to leverage legacy applications to deliver the benefits of the Web and
functional integration while taking steps toward a building block environment that will
utilize components and object classes"
"85% of existing applications will migrate to a form of client/server through the use of frontware, partial rewrites,
salvaging or complete replacement. "
Forrester
"Offshore outsourcing as a percent of IT budgets went from 12 percent in 2000 to 28 percent in 2003."
The estimated
cost of rewriting legacy code is from $6 to $23 PER LINE OF CODE,
notwithstanding the subsequent bug fixing and risks that original functionality has been overlooked
in the process.
Market Trends
$15 per line of COBOL code
to manually re-write an existing system (Tactical
Strategy Group - Bill Ulrich)
Atlantis Technologies dramatically
changes the economics of re-writing a legacy system
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the most efficient, flexible, quality-based and cheaper of the market,
due to our fully innovative and customer-driven
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Market forecasting
- Application Integration
While EAI vendors are good at integrating modern
enterprise packages like standard ERP and CRM applications, they have no way to
incorporate customized legacy applications into the EAI framework. In this sense, we will
become EAI enablers, and we should emphasize our support for leading solutions like MQ
Series to demonstrate that we complement the large EAI vendors as potential partners, not
compete with them. We will also become complementary with large package vendors like SAP
and Siebel Systems, allowing their customers to integrate legacy business processes with
ERP and CRM packages.
- The landscape: IDC has projected that the market
for "application integration and reengineering" software will grow to about $10
billion by 2004. On the services side, Forrester is projecting the application integration market to grow from $1.4 billion last year to $18.3 billion by 2003, with
legacy-to-Internet integration issues driving much of the growth. Therefore, it should be
emphasized that this is a potentially huge well from which we can draw during the next
several years. Our competition in this space is generally a lack of knowledge that there
is an automated solution that can identify, extract and package mission-critical business
processes for incorporation into an EAI framework, so companies either rewrite the
applications from scratch or turn to packaged applications to try to duplicate the
functionality, often with little success.
- e-Business
This market is similar to integration, with a stronger
emphasis on "extended enterprise" B2B technologies like e-Marketplaces that
require direct access to legacy applications and seamless integration with the systems of
partners, suppliers and customers. Here we can be positioned as an e-Business enabler or
an Internet infrastructure player that allows companies to incorporate mission-critical
functionality that would be too expensive and time-consuming to replace into new
e-business initiatives.
- The landscape: This is obviously the most glamorous and potentially lucrative
market segment, since research firms like Forrester are projecting B2B commerce to grow
to $5.7 trillion by 2004.
- Transformation
In this market segment we are enabling companies
to completely transform their legacy systems from proprietary, often unsupported
platforms to modern, distributed-computing and Internet-enabled architectures. Whether
its for the purpose of obtaining the flexibility to one day implement large-scale
e-business initiatives, to lower support and maintenance costs, or to achieve better
performance, we will perform outright transformation of business processes to new
languages and standards, like Java, C++, XML, etc.
- Knowledge Mining
Some research firms have defined Knowledge Mining
as a specific market niche, with IDC and Giga Information Group.
- The landscape: IDC is projecting the entire Knowledge Mining space to grow to
roughly $123 million by 2004.
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Our solutions are
the most efficient, flexible, quality-based and cheaper of the market,
due to our fully innovative and customer-driven
approach. Discover them and compare them to the solutions provided you by our
competitors.
Our clients
M
id-sized to large corporations
who have existing mission-critical applications written in old languages (COBOL, PL/1, Fortran, NATURAL, Jovial, Assembler...) as well as other modern language/platform (Java, C, C++, C#, Visual Basic,...)
who have a
need to retain the business rules embedded in existing applications, but need to:
Extend the existing applications to
provide web access
Reduce the risk associated with legacy
code
Reduce the maintenance costs of, or
add robustness and Quality to monolithic applications
Counter pressure from competitive
vendors offering componentized products
Downsize to hardware which supports
Windows environments and modern database access methods
who are looking for
protection from risk and a guaranteed solution
who are planning
transformation projects to be implemented in 2003/2004
who are willing to invest IT budget on
effective solutions in place of constantly reinventing the wheel
Back to the list
Our solutions are
the most efficient, flexible, quality-based and cheaper of the market,
due to our fully innovative and customer-driven
approach. Discover them and compare them to the solutions provided you by our
competitors.
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