© 2002 market intelligence for the education economy 1 web services creating sustainable value...

© 2002

Market Intelligence for the Education Economy1

Web ServicesCreating Sustainable

Value Propositions

Peter J. Stokes, Ph.D.Executive Vice President

Eduventures, Inc.

HEKATEVancouver, CanadaOctober 18-20, 2002

© 2002


About Eduventures

• Research and advisory firm covering learning markets since 1993

• Helping providers drive growth• Assisting institutions in thinking

strategically about e-education• Delivering an independent view on

key market issues

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Web Services Agenda

• Definitions• Benefits & Challenges• Markets & Business Models

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What Is a Web Service?

According to AltaVista’s image directory, it looks like this:

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Days of Future Past?

• Are web services the same thing as this industrial-age image of interlocking gears?– Or are they something new?

• How do they advance or exceed the promise of past efforts to “enable customer satisfaction” (HEKATE) – e.g., EAI, best of breed

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Hype, Reality, Opportunity

• Computerized automobile negotiating gas prices & using GPS to guide you to the best price/location

• A grade book talking to a CMS without sharing a common data structure

• “Web services are probably the most important technological step forward since the advent of the web.”

– Mark Resmer, CTO, eCollege (HEKATE)

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So What’s Really New?

• The recent past has been a period of fairly good standards but poor implementation– Proprietary APIs

• XML functions as a contract between one API and another, reducing friction and increasing interoperability

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A Definition

“Web services are enabling technologies that facilitate the assembly and integration of applications in order to create new, more meaningful and/or more user-specific applications, all at the speed of the internet.”

-- George Lorenzo, HEKATE

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Another Definition

“Web services is a technique for developing service-oriented architecture. It’s integration at the data level, the application level and the service level.”

-- Andy Astor, VP, Enterprise Web Services, webMethods

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And Another Definition

“Web services is the exact wrong phrase to describe what this is. It’s not about the web and it’s not about services. It’s about software calling other pieces of software.”

-- John Dubois, Technical Evangelist, Microsoft

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Business Process Integration

Then• Integrated software

suites• Proprietary, point-to-

point APIs• Automation• Optimization

Now• Frictionless

interoperability• XML messaging• Protocols• Open systems• Intelligence on the

network• Customization• Atomization

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Web Services Agenda


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Expected Benefits

Institutions• Cost efficiency

– Integration

• Enhanced value• Customization• Choice• Collaboration

across institutions

Vendors• Cost efficiency

– Integration and application development

• Enhanced value• Extend the suite• Atomize the suite

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An Artificial Intelligence?

• A post-client/server world• Bringing the server intelligence to

where it’s needed on the network• Reducing transactional friction

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Near-Term Challenges

• Sustainable value propositions/business models– Show me the money

• Business process redesign/culture change

• Security– Identity authentication (especially outside

the firewall)

• Transactional integrity

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Longer-Term Challenges

• Technical vs. solution-level interoperability– Software suites, partnerships, services strike back

• Overhead/traffic jams associated with all that messaging

• What about content – the knowledge piece?– Where are the publishers?– Where are the libraries?

• Funding sources– Impact of budgets tightening

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Web Services Agenda


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Coping with Ripple Effects

Web services create new risks as well as new opportunities for vendors’ businesses.

They change not only how vendors work with institutions, but also how they work with partners.

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Coping with Identity Crisis

The David and/or Goliath problem: which one are you now, which one will you be tomorrow? Can you be both?

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Emerging Market Continuum

exposure & consumption exposure & consumption

Some CustomizationIntegrated Suites Pure Atomization

Low High

Vendor controls Institution controlsQA & performance testing QA & performance testing

Subscription Model

Pay As You Go Model(trusted partners)

High lock-in potential Low lock-in potential

Federated Model

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Where Will Traction Occur?

• High integration zones– ERP & portal integration

• High transaction zones– Registration, credit cards, etc.

• Deconstruction zones– Centralization/decentralization

• Different tools/common services across the campus

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Building a Flexible Model

Intellectual Property

IntegratedSuites

APIs WebService

s

Federated

Subscription

Pay As You Go

WebService

sModels

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Garden of Forking Paths 1

“There isn’t a business model around atomization of functions where you can derive revenue from a subset of your application.”

-- Chris Vento, CTO, WebCT

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“From the perspective of the end-user experience, there will still be an Office – a central gravity point and workspace. But the software business is going to be about degrees of excellence in execution via web services.”

-- John Dubois, Technical Evangelist, Microsoft

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“Web services won’t replace the core products for business workflow. But web services will support best-of-breed and create atomization.”

-- David Moldoff, SVP of Solutions Architecture & eEducation Infrastructure, SCT

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Thank You

Peter StokesExecutive Vice PresidentEduventures, Inc.20 Park Plaza, Suite 1300Boston, MA 02116617-426-5622 [email protected]

© 2002 market intelligence for the education economy 1 web services creating sustainable value...

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