Cloud Computing Extends SOA Capability

This article relates to Chapter 5 where it describes about the software tools such as Web Services and SOA (Service-Oriented Architecture); as the tool in improving the software applications. As defined, web-services as a set of loosely coupled software component that exchanged information using the web languages. And SOA is a set of self-contained services that communicate with each other to create a working software application.

Andy Scurto based this article on an Insurance company. He mentioned that as long as insurance companies have been around they have shared one thing in common with many other large businesses; they want to know all the details and how to save money.

Insurance companies have large capital invested in their inner workings and many times it may be outdated. There is a company called Tech Target, an on-line source of technology information that uses a combination of internet connections, software and other services that bring outdated systems up to par. The executives of the insurance companies are used to “hands on” and this was no longer required. Computing was no longer done internally but globally, where the programs were stored in a “cloud”. These computer clouds allow employees to access any application or service. All they have to do is request it and the cloud delivers.

With the clouds capabilities the computer environment has become globally interactive. Around the world these computing clouds are performing the various tasks that bring companies into today’s business world.

Similarly, our insurance agency run quotes look up information on new products, print applications and order exams all on-line. Other areas we use this service for is tracking the applicant’s policy through underwriting, crediting agents accounts and tracking their performance. It also has become convenient and easy to check up to date information and report back to the client or current policyholder. We require certain applications from the company and the company cloud delivers.

Andy Scurto
National Underwriter. P & C Erlanger; Mar 10, 2008; Volume 112, Issue 9; ABI/INFORM Global

Merrill Lynch connects Past and Future Technology

Q1. Why did Merrill Lynch need to update its IT infrastructure?
Ans: Merrill Lynch had needed to update the IT infrastructure because of its critical role in the business operation. The technology platform of the past had been the key success in generating revenue and growth of the firm. It is the technology that had given Merrill Lynch a competitive advantage in the growing financial market.

Thus, in order to stay competitive, Merrill Lynch is compelled to modernize their infrastructure technology.

Q2. What is the relationship of information technology to Merrill Lynch’s business strategy? How was its web services initiative related to that strategy?
Ans: The information technology is very much embedded into Merrill Lynch business strategy. The company processes around 23,000 programs with 80 million daily on-line transactions shows a crucial role played by information technology. It is vital to the company to handle such volume of data, to better serve their clients and brokers.

The web service facilitates the business strategy of Merrill Lynch by making their operations more convenient and effective to their customers. It ensured security of the private information and provides flexibility in choosing the applications. On top, it also allows the firm to correct errors before launching the services. As such, Merrill Lynch saved $41 million in application development costs and boosted their investment by selling X4ML (web service tools) to SOA Software Inc.

Not to mention, the web service conformed the current mainframe security as well as web security for inscription, authentication and authorization.