Value potential and challenges of service-oriented architectures - A user and vendor perspective

This article summarizes the results of 25 expert interviews, regarding the value potential and challenges of the Service-oriented Architecture (SoA) paradigm for users and software vendors. On the user side, the SoA value potential most often mentioned by experts was agility, followed by process optimization. Cost reduction, through a more efficient development, or consolidation of redundant IS landscapes are also seen as a value potential. In contrast to the literature, reuse of services seems not that significant and is highly debated among the experts. In order to realize the value potentials, users have to overcome certain challenges. Here, the experts mention the financing of the investments, the setting up of a proper governance and the creation of a common understanding of the SoA paradigm as biggest hurdles. For the software vendors, experts mention that SoA-based solutions create new market opportunities as lock-in-effects are lowered and offerings can be easier enhanced by third-party services. Regarding cost, there is potential to harmonize existing product portfolios or integrate acquisitions more easily. Development cost reduction is less evident at the current stage of adoption. It is assumed that lower lock-in effects also lead to increased competition, which could become a major challenge especially for established vendors.