The world is moving towards the model where enterprise application services will be delivered on-demand, and changing business, which means changing the applications, will just be a matter of adopting new services to support the new processes. VCs are investing there, in innovative start-ups who are able to exploit this trend.
The smart money is flowing towards a few areas, all SOA related:
- Firstly towards start-ups that are embracing the management and adoption of the service providers for use within the enterprise. Anybody who's building the infrastructure to create a flexible architecture that is able to leverage services inside the enterprise, or outside the enterprise.
- Second, towards start-up service providers themselves. The bad news is the ship has already sailed for CRM and ERP on-demand, but there are many innovative service provider plays still left, such as on-demand background checks, on-demand trading systems, etc
- Finally, those who have figured out how to apply security in this space. This means identity management capabilities in support of services. This does not mean traditional approaches to security warmed over for SOA.
I just look ahead and visualize and see Composite applications as the end-products of a service-oriented architecture. I am a big votary of composites Composites and its potential To Transform Enterprise Application Landscape. The attraction lay in the fact that embracing composite applications should lead to a new degree of alignment setting in rewarding business with immense benefits. Also traditional Product engineering too shall also see a positive influence - facilitating development of software in modular pieces, enabling rapid delivery of new functionalities. Several independent developers could start writing specialized programs that plug into the composite apps framework. The composite application ecosystem can comprehensively transform the enterprise ecosystem and hence the development of composites shall be an attractive proposition for investment by VC's.