>  Tangible business benefit comes in two basic forms: 
 > 
 >  (1) Internal - cost reduction etc 
 > 
 >  (2) External - Benefit to customers - increased functionality, more 
 >  rapid response to requirements 
 > 
 >  Category (2) is something customers will pay for, (1) is not and tends 
 >  to be about the law of diminishing returns. 

I tend to agree that (1) is not, unless the savings are huge due to process 
optimization... Not a REST example, but more generally SOA + BPM:   we executed 
a $200m workflow automation & exception management program at a major bank, of 
which over 25% was severance costs alone (they shed 850 out of 2500 operational 
employees).   It had to go to get board-level approval to get the capital, but 
they spent it (saving them $40m/year on people alone, let alone process 
execution times).

As for economic laws, I would suggest that the argument for REST is about 
increasing returns due to network effects.

 >  Measurement of (2) is done via looking at the bottom line. 
 
I'm curious if market responsiveness really is quantifiable in this way, I 
think cash flow & reduction in working capital is likely a measure of 
responsiveness, because sometimes responsiveness costs you *more* -- impacting 
the bottom line.  

Business-aligned Agility/responsiveness tends to occur in three ways, in my 
view:
- decentralized (more accurately "federated") decision making
- reduced coordination costs (capex, opex & time)
- reduced lead times

The argument for SOA in general is about decentralizing computing to enable 
better responsiveness, but providing a governance framework to ensure this 
occurs in an aligned fashion.   Secondly, the reduction in deliverable sizes 
and standardization of interfaces will help to reduce lead times (though 
there's a lot more to be said about process improvement here than just SOA).

Thirdly, coordination costs are directly related to the architectural style of 
how interoperabilty occurs.   The shape and granularity of your interfaces will 
determine how costly it is to integrate & coordinate components in your system. 
 Thus, the need for good SOA governance.

But this also leads to the argument for uniform interfaces:  at ever increasing 
scales, federated governance breaks down, and a form of anarchy emerges.

In such an environment, you can only pick the most general operations possible. 
 In the case of the web, we were talking global scale, so HTTP picked 
operations that scaled for a global anarchy, and the web was born due to the 
network effects from that decision .  

>  So in the context of gaining tangible business benefit, REST vs SOAP is 
 >  nowhere and therefore "pointless".  You might be able to make some claim 
 >  in respect of category (1) but it's going to be difficult to prove and 
 >  I've seen very little of how REST vs SOAP means anything in respect of 
 >  category (2). 

Contrast the marginal cost of integrating a dynamic website onto the web vs. 
the marginal cost of integrating a system with EAI or RPC...


Cheers
Stu







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