andreas vallberg serverless integration

Serverless Integration

The integration landscape is changing and you are paying too much!

Serverless integration is our offering where we replace your traditional on-prem enterprise integration software with auto-scalable, fully managed, pay-for-what-you-use connectivity between your software applications on-premise and in the clouds.

Why serverless integration?

Enterprises has struggled with integration, where projects were setting up integration dependencies as part of the project and when the project closed down after delivery the integration dependencies were left in limbo with nobody to management.

Enter the era of integration software, where we established integration competence centers and purchased specialized software that was trying to make the integrations easier, deliveries faster and integrations manageable.

With 15 years in using enterprise integration software, We can see with a bit of hindsight that the promise of integration software has failed to deliver to us:

  • Visibility of the cost now cause integration to be a problem, instead of being spread out among the projects
  • Feature based selling of integration platforms often leave customers with a lot more features than they will make use of
  • Centralization leads to more structure, yes, but the structure comes at the cost of red-tape and more lead time for implementing solutions

So the solution to this was the Self service API’s – already touted by Jeff Bezos back in 2002 in his now-famous Mandate which sternly forced everyone into an API-first approach. Suddenly teams can consume other teams data and do integrations without talking to the intermediary.

Even though it is almost 20 years ago, we still see corporations trying to adopt this way of thinking, while also trying to save the Enterprise Integration Center.

A battle of many fronts

We see the Integration Competence Center concept being attacked on many fronts:

  • The software application owners and teams are building their own dependencies directly using API driven approach
  • Infrastructure is moving to the cloud, leaving no Servers to manage, cluster and consider
  • The different building blocks (i.e. features) of the old integration platform are becoming increasingly available from the existing cloud vendors rendering your integration software platform obsolete
  • Infrastructure is becoming code, Security Operations is becoming code.
    Why should the integrations reside in proprietary formats deep inside custom software which only a few selected people have access and knowledge how to manage

The way out

This is the challenge we at TIQQE has seen, and that is why we are providing integration-as-a-service in our unique way. Knowing that a big part of the integration work is in the details of the specifications and the major part of the integrations within an organization is very similar we have a different approach.

We provide fully managed integrations and we do this using software implemented in standard languages, on a well-known cloud platform using serverless patterns.

This means the integrations are built securely, with auto scaling from the start. It means we are using standard development tools and standard programming languages that already millions of developers know.

Governance is still key!

Our value add is not mainly focusing on the implementation of the integrations, but rather the management of the integrations and standardization of monitoring and handling them.

The freedom of building high-order value add systems as integrations, and the standardization comes as a support in terms of operational excellence, security, reliability, performance efficiency and cost optimization (Yes – those are the 5 pillars of well-architected framework from AWS).

Many of our customers have felt their integrations to be a black-box experience and they feel a lack of understanding of what they have and how it works. We are handling this by providing our Harbor solution, where you as a customer get full transparency to the documentation, the integrations and their health.

Business Impact

  • You will save money
  • No license costs
  • No hardware costs
  • No patching costs
  • No lock-in
  • Pay for what you use
  • Adapt to change

Please feel free to reach out to Jacob Welsh and let us speak about how we can help lower your costs, increase your business agility and provide insights into your integration landscape.We will set you free from all major integration platforms such as Microsoft Biztalk, Teis, WebMethod and many others.

COVID-19

4 ways to reduce cost and increase liquidity. #1

Many companies are under tremendous financial pressure due to the COVID-19 virus. We sat down to figure out what we can do to help and came up with 4 ways of how we can reduce cost and increase liquidity in the short term for a company. We are posting these 4 ideas in a blog series and in this blog post, we will present the first idea to improve your financials – hardware refresh. Most importantly, we will put numbers on such a refreshment which would cheer up many CFO’s today.

#1 – Hardware refresh in your datacenter

With a depreciation cycle of 36 months, you’re looking at a 33% replacement of servers and storage in your datacenter this year. Now is a good time to challenge the default decision to replace those servers with new ones and consider cloud instead. Here are a few reasons why:

  • You don’t have to make the capital expenditure upfront which will have a positive impact on your cashflow and your balance sheet.
  • You will lower your cost by an average of 30-40%
  • You don’t have to buy capacity to last for 36 months with low utilization the first couple of years.
  • You pay for what you use and you can scale up or down in capacity by pressing a button.
  • You are making the inevitable move to cloud sooner than later

Example – a company with 300 servers, 50TB of storage

In this example, we’re looking at a company with a total of 300 servers and 50 Terabyte of storage running in a datacenter or a co-location. They have a depreciation cycle of 36 months which means that they normally refresh 33% of the estate each year, in this case 99 servers + 16TB of storage.

The graph shows a cashflow comparison between replacing the hardware compared to running the same workload in the cloud. The greatest benefit from a financial perspective becomes obvious in the graph, you don’t have the capital expenditure upfront when using cloud. This company is looking at an upfront cost of 16.1MSEK. Instead of spending 16MSEK in refreshing hardware, it will do more good as free cash and liquidity.

Cashflow comparison of replacing 99 servers and 16TB storage compared to cloud

Another observation is that cloud seems more expensive on a yearly basis and that’s true. However, when considering the upfront costs, the accumulated savings are considerable, see graph below. Beside keeping 16MSEK in the balance sheet, this company would save 4.5MSEK per year or 27MSEK in 6 years by using cloud instead of refreshing the servers.

Accumulated cost comparison between on-premise and cloud

In this example, the customer are paying for the transition project and the cost is included in the business case. Most of the time, AWS offers generous fundings to reduce the so called “migration bubble”, which is the time when you run the workload both on-premise and in cloud during the migration project.

There are of course a lot of ifs and buts in any calculation and the numbers are just interesting if you can identify yourself in them. We have created a template for helping companies calculate a comparison between doing a hardware refresh versus cloud. We can customize most of the data to simulate your specific prerequisites to make it as accurate as possible.

Please contact me or any of my colleagues if you would like to do the exercise for your company, we’re here to help.

Stay tuned for more examples of how we can help you reduce costs and increase liquidity.