SOA-Based Services Gain Foothold in U.S. Companies’ Overall IT and Business Strategy, and Spending Plans in SOA Rise, IDC Finds

FRAMINGHAM, MA – JUNE 22, 2006 – According to a recent IDC study, companies will significantly increase investments in service oriented architecture (SOA)-based services throughout the rest of 2006. The study, which analyzes the results of an IDC end-user survey of U.S.-based companies, reveals that the majority of respondents rated SOA as important to their overall IT and business strategy, and further indicated that they are planning to purchase SOA-related services by the end of 2006. IDC cites a significant opportunity for service vendors to assist companies in implementing SOA, and believes vendors must continue their education efforts, provide guidelines, and demonstrate business benefits to reach the majority of potential SOA users.

"Companies which will try to implement SOA on their own without any outside help from a services vendor will soon discover that it is very difficult, if not impossible, to successfully roll out a large or corporate-wide SOA initiative without considering the impact on the organization and its employees," said Marianne Hedin, program manager for IDC's Worldwide Services and Service Oriented Architecture: The Services Opportunity programs. "To help them tackle the various issues involving organizational change they will need a service vendor."

When considering assistance from an external service provider, the survey finds that the companies planning to adopt SOA are most likely to turn to a large technology vendor, consulting firm, or systems integrator, and to some extent a traditional outsourcer. IDC believes that end users are more likely to turn to these large and established service vendors as they are unwilling to take a risk with a less-known services player when embarking on a new technology venture.

In terms of the types of services that both current and future SOA adopters are planning to acquire, the respondents claimed that their companies will procure a wide range of services including consulting, implementation, training/education, application development, application management/outsourcing, and support services. Although consulting services continued to be on top of the list, additional types of services are also expected to be in strong demand by SOA adopters. In addition, the study reveals that the IT department is the primary decision maker for purchasing SOA-related services.

The study, SOA-Based Services Buying Trends: A 2006 Survey of U.S. Companies (IDC #201644), provides an analysis of the intentions and behavior of U.S. companies in purchasing SOA–based services in 2005 and 2006. The study presents the results from an IDC end-user survey, consisting of more than 400 end-users from a broad spectrum of U.S.-based companies. The study also explores different ways service vendors can position themselves to most effectively pursue and win deals in this fast-growing services market.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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