Current State of Soa in Practice: Ron Schmelzer Jason Bloomberg Senior Analysts Zapthink, LLC Take Credit Code: Eustate

Current State of SOA in Practice
Ron Schmelzer Jason Bloomberg Senior Analysts ZapThink, LLC Take Credit Code: EUSTATE
Copyright 2006, ZapThink, LLC
Key Patterns in Market

Arguing over SOA internally Understand need for SOA, researching the right approach Have implemented something SOA-like (maybe just some Services), now looking to take SOA to the next level Currently implementing SOA pilot Moving from SOA pilot to broader SOA implementation
Key Issues
Lack of broad understanding of the role of architecture Lack of agreement on best approach to Enterprise Architecture Trouble grasping all the implications of SOA (security, management, governance, integration, etc.) Lack of business buy-in/business not driving SOA Business supports SOA in principle, but not willing to fund it/take necessary risks Immaturity of best practices/products on market Limited interoperability of products on market
Telco Example
Verizon
Large regional telecommunications provider formed thru the merger of Bell Atlantic and GTE
Challenge
Solution

Results/Benefits
Eliminated redundant systems inherited from the merger of Bell Atlantic and GTE On average, each transaction had been developed five to 25 times; one was deployed 45 different times
IT Workbench SOA project, operational in 2004 Thousands of developers, .NET and Java Focused on 250 business transactions incl. verifying customer credit histories & looking up customer info 57 Service-oriented applications with 200 transactions
2.5 million to 3 million Web Services transactions a day Helped Verizon slash its IT budget by 50 percent Included managing and securing the Services, charging for reuse and monitoring the performance of Serviceenabled transactions
Government Example
The Defense Finance & Accounting Service (DFAS)
US Federal Government agency responsible for all Department of Defense accounting
Challenge
Solution

Results/Benefits
Very large, complex organization that handles accounting for Army, Navy, Air Force & Marines Process $1 Billion dollars of payments per day Challenge of how to bring together DoD finances Analysis Paralysis too much time devoted to design
Reduced hardware costs by streamlining operations Achieved semantic alignment across organizations Collated and rolled up information in the face of enormous complexity Focused on information architecture in the context of SOA
SOA effective in environments of extreme complexity Information architecture essential to resolve semantic issues in complex environments SOA appropriate in environments where there are many stakeholders with many needs
Energy Company Example

Large Global Petroleum Firm
Challenge

Solution
Results/Benefits
Different divisions had different concepts of SOA No unified approach to Enterprise Architecture (EA) Lines of business often had very little in common
Brought together EAs from across company for first time in 6 years Worked to develop a common vocabulary Identified areas of redundancy suitable for shared Services Developed a SOA maturity model
Moved toward establishing enterprise-wide EA committee Undertaking SOA pilot projects
Health Insurance Company Case Study
Executive Buy-in
Key SOA understanding & support from CEO level Understand reuse, time-to-market business benefits LOBs have various levels of understanding, but broad support for SOA nevertheless Product innovation key business motivator
Existing Infrastructure
IBM shop predominantly COBOL framework (broadest penetration)
Most data on mainframe
.NET mostly off-the-shelf Homegrown Java framework based on Struts, etc.
SOA Roadmap
1-2 Services in first half of 2005 Additional 6 Services in second half of 2005 Not necessarily Web Services Use WSDL Sometimes use SOAP SOAP over MQ to connect Java to .NET Services Couldnt get SOAP over CICS to work Services are mission critical (utility Services date from 2004) Proposed for 2006: Registry/asset repository Separate budget for strategic architecture
Issues Theyre Facing

Problems with XML on mainframe (Enterprise COBOL) Lack performance testing No data strategy
Data quality issues
Must get users to use Services (and only Services)
Key Strength: Governance

Have comprehensive IT governance strategy Driven out of architecture group Solid security policies
Aeroplan Case Study
Aeroplans Business
Leading loyalty program in Canada, wholly owned subsidiary of Air Canada Aeroplan generates revenue through mileage accumulation by selling miles mileage redemption by arbitraging rewards value vs. mileage costs Aeroplan can only recognize revenue when members redeem miles Member of 14 airline Star Alliance
Aeroplan and Real-time Miles eCommerce

CEO mandate: create new reward redemption opportunities for members First to market with rewards eCommerce Engage third-party companies to supply new rewards Add a new B2B (real-time) channel Make rewards available to members in real-time through the Web channel Protect members privacy & prevent fraud Add new redemption & accumulation partners seamlessly XML Web services were the most flexible and extensible architecture for this initiative. XML-enabled mainframe with XML over MQ Series
Current Electronic Channels

Client Tier Web Tier
B2C
Service & Resource Tiers
Customers
Web
HTML
www. Aeroplan .com

IVR Server
XML MQ
Local Services
XML MQ
Phone
Voice
Direct Marketing Services Combined Services
Partners
FTP Systems
FTP
FTP Server
B2B (Batch)
Binary
Reservation (RESIII) Services
Adding a New B2B (Real-Time) Channel

Client Tier Web Tier
B2C
Service & Resource Tiers
Customers
Web
HTML
www. Aeroplan .com

IVR Server
B2B (Real-Time)
XML MQ
Local Services
XML MQ
Phone
Voice
Direct Marketing Services Combined Services Reservation (RESIII) Services
FTP Web Svc. Systems Systems
Partners
SOAP HTTPS
Web Services Gateway FTP Server

B2B (Batch)
XML MQ
FTP
Binary
Enables Aeroplan to pursue new reward redemption opportunities with 3rd party partners.
Technical Requirements
Provisioning Expose Aeroplan XML services to partners as WEB services Manage protocol conversions and bridge non-homogeneous systems Develop and troubleshoot collaboratively with partners Security Keep security separate from business logic Secure message exchange and enforce partner access control Protect against threats, fraud & standards proliferation Filter message content based on partner requirements Operations Minimize development and implementation costs Minimize impact on and use of enterprise systems Visibility into transactions & monitoring impossible Development of Services shared with their Customers!
Why this approach?

Best fit with existing technology No modifications to back end systems Easiest integration Fastest time to market Vendor responsive to Aeroplan requirements Highest confidence around confidentiality WSS protects customers information
Meeting the Requirements

Provisioning Zero impact to Aeroplans existing systems Mediates partners sending SOAP/HTTPS to Aeroplans XML over MQ Dramatically reduced WS development costs and debugging time Security Configuring and enforcing security independent of business logic Secure and auditable message exchange Protected against threats, fraud & standards proliferation Filtering message content based on partner requirements Operational Scale Proactively identifying debugging and production issues prior to crises Managing with existing IT operations staff
10
Takeaways
Provisioning + Security + Operations in a scalable appliance architecture = Rapid Time to Market Aeroplan went from POC to Production in 38 days start to finish Aeroplan launched first real-time miles-based ecommerce Addition of a new partner/redemption offer in hours Enabling Aeroplan to grow its non-air redemption by more than 500% from 2004 to 2007 Saving Aeroplan money on communication and integration costs Whats next for Aeroplan Connect more redemption partners Extend to mileage accumulation partners
Retail Bank ROI Case Study
11
Executive Summary
Consequences of uncoordinated architectures in the retail bank to date: $12MM of redundant spending Many duplicated functions Silo focus of the retail bank and the IT organization A new Retail Banking SOA Strategy will overcome these consequences Renovate the current environment Rationalize services Enhance functionality
Source: CTOgroup
Highly redundant spending

Duplicate spend across channels Breakdown between discretionary and non-discretionary IT spending Cost of IT projects for the Retail Bank IT support costs
Source: CTOgroup
12
Budget Allocation, Total Annual IT Spend

500 450 54.8 57.6 In RSS project scope: T otal: $161.9 01-03 CAGR: 2.5% 02-03 CAGR: 16.3% Occupancy and indirect expenses: T otal: $380.2 01-03 CAGR: -17.1% 02-03 CAGR: -24.2% Consulting: T otal: $134.2 01-03 CAGR: -6.4% 02-03 CAGR: 15.1% HW/SW Depr & Maint: T otal: $240.4 01-03 CAGR: 1.7% 02-03 CAGR: 29.0% 129.7
Employees: AANA employees: T otal: $379.1 01-03 CAGR: 0.3% 02-03 CAGR: 7.5%
400 49.5 350 Annual IT spend (millions) 146.5
100.8 300 133.0
250
50.9 38.7 84.7
44.6
200
87.7 68.0
150
100 128.8 50 120.6
0 2001 Total: $465.6 2002 Total: $409.9 % Inc: -12.0% % in scope: 12% % out of scope : 88% 2003 Total: $420.3 % Inc: 2.5% 01-03 CAGR: -5.0% % in scope : 14% % out of scope : 86%
% in scope : 12% % out of scope: 88%

A l l c ha nne ls
Source: CTOgroup
Infrastructure = 50% of IT Spend

70
ADM M ix
60 6.8 5.3 50 5.3 Annual IT spend (millions) 8.4 40 9.7 7.5 30 Inte rnet Bank: Total: $26.3 01-03 CAGR: -NA02-03 CAGR: 21.0% 31.4 10 32.7 29.0 Branch: Total: $93.1 01-03 CAGR: 2.1% 02-03 CAGR: 12.8%
Internet Bank 16 % CCIVR 16 % ATM 12 %
ATM: Total: $17.4 01-03 CAGR: 13.6% 02-03 CAGR: 29.5%
Int ernet Bank 33% CCIVR 2 1%
ATM 26%
8.9 Call Ce nter/IVR: Total: $25.1 01-03 CAGR: 2.9% 02-03 CAGR: 15.6%
Branch 20%
7.7 9.1
Infr M ix ATM Internet CCBank5% IVR 7% 13 %
2003 Spend Mix
Branch 75%
20
To t al M ix
0 2001 Total: $54.8

A l l c ha nne l s
Branch 56 %
2002 Total: $49.5 % Inc: -9.6%
2003 Total: $57.6 % Inc: 16.3% 01-03 CAGR: 2.5%

Source: CTOgroup
13
Control one third of Annual Retail Channel IT spend

70
60 Occupancy and indirect expenses: T otal: $71.6 01-03 CAGR: -NA02-03 CAGR: 9.8% Equipment lease: T otal: $3.4 01-03 CAGR: -3.8% 02-03 CAGR: 15.7% HW/SW depreciation: T otal: $19.8 01-03 CAGR: 1.6% 02-03 CAGR: 21.1% HW/SW maintenance: T otal: $15.2 01-03 CAGR: 21.1% 02-03 CAGR: 28.4% Consulting: T otal: $9.1 01-03 CAGR: -26.2% 02-03 CAGR: 12.3% Employees: AANA employees: T otal: $42.9 01-03 CAGR: 9.8% 02-03 CAGR: 21.4%
Non-controllable costs
50 Annual IT spend (millions) 24.6 24.6 40 22.4 1.2 30 1.3 6.9 20 4.2 4.8 4.5 10 13.4 13.3 16.2 2.2 2.4 1.0 5.8 6.2 7.1
Long-term controllable costs
Controllable costs
0 2001 Total: $54.8 Controllable: $17.9 % controllable: 33% 2002 Total: $49.5 Controllable: $15.5 % controllable: 31% 2003 Total: $57.6 Controllable: $18.6 % controllable : 32%
Long-term controllable costs Controllable costs
A l l c ha nne ls
Source: CTOgroup
Discretionary IT spend < $10 Million per Year

70 60 Occupancy and indirect expenses: T otal: $71.6 01-03 CAGR: -NA02-03 CAGR: 9.8% 24.6 24.6 40 22.4 Network & Desktop: T otal: $40.7 01-03 CAGR: 0.5% 02-03 CAGR: 14.7% MF/server operations: T otal: $15.7 01-03 CAGR: 21.3% 02-03 CAGR: 42.6% Maintenance: T otal: $8.7 01-03 CAGR: 0.0% 02-03 CAGR: 2.2% Development/Enhancement: T otal: $25.2 01-03 CAGR: 3.2% 02-03 CAGR: 27.8%
50 Annual IT spend (millions)
30 14.2 14.1 20 4.5 10 2.9 8.7 12.4 6.6 4.6 2.9 2.9 7.3 2002 Total: $49.5 % Inc: -9.6% 9.3
Nondiscretionary IT spend Discretionary IT spend
0 2001 Total: $54.8 2003 Total: $57.6 % Inc: 16.3% 01-03 CAGR: 2.5%
A l l c ha nne ls
Source: CTOgroup
14
$12 million in annual duplication costs in Key Architectural Areas

14
12 1.8 1.9 10 0.3 Annual IT spend (millions) 1.8 0.9 0.3 8 1.6 1.6 Workflow Management: T otal: $1.0 01-03 CAGR: -5.2% 02-03 CAGR: -4.1% 4.3 3.4 3.4 Data Services: T otal: $5.0 01-03 CAGR: -5.8% 02-03 CAGR: 2.0% Business Logic: T otal: $11.2 01-03 CAGR: 12.2% 02-03 CAGR: 26.6% 3.9 3.7 4.0 User Interface: T otal: $11.7 01-03 CAGR: 1.8% 02-03 CAGR: 7.8% 0.3 Legacy Data Access: T otal: $4.5 01-03 CAGR: -2.0% 02-03 CAGR: 99.4%
0 2001 Duplication: $11.3 O ther costs: $43.4 Total: $54.8 2002 Duplication: $10.0 O ther costs: $39.6 Total: $49.5 2003 Duplication: $12.1 O ther costs: $45.5 Total: $57.6
A l l c ha nne ls
Source: CTOgroup
Silos Account for the $12 Million

Branch
Trans WFlow Withdraw Trans Payment Trans Night Deposits MICR Readers Signatr Verificat Cust ID with PIN Check Ordering Warnings Cash Mgmt A/c Cntct Hist Customer Profiling Operator Profiles Consolidat ed view Complnt Reprting OLAP Trans Jrnl Transfer Trans Wire Transfer PIN Pads Branch Locators Customer Setup Ticklers Hold Paymnts Fraud Verificatn Marketng Planner Demograp hics Selling Prompts Task Mgmt What-if Calculatr Safety Dep Box Training Discon. Opers Multiple Trans/Cl Currency Orders Magnetic Readers Cash Counting Account Setup SvngBnd Issuance CreditCrd Advncs Reports/ Stats Lead Generat Campgn Mgmt Contact Tracking Referral Procssng Complnt Tracking Statemnt Printing Deposit Trans Stop Paymnt Comm. Deposits Printers Cash Dispens Account Inquiries Check Batching Fee Collection Override Procssng Sales Lead Agent Status Cross Selling Cust Personlz Decision Tracking Desktop Functns Cash Mgmt A/c Cntct Hist Customer Profiling Operator Profiles Consolidat ed view Complnt Reportng OLAP Training Check Ordering Ticklers Hold Paymnts Fraud Verificatn Marketng Planner Demograp hics Selling Prompts Task Mgmt What-if Calculatr CreditCrd Advncs Reports/ Stats Lead Generat Campgn Mgmt Contact Tracking Referral Procssng Complnt Tracking Statemnt Printing Fee Collection Override Procssng Sales Lead Agent Status Cross Selling Cust Personlz Decision Tracking Desktop Functns Statemnt Printing OLAP Cust Personlz A/c Cntct Hist A/c Cntct Hist Contact Tracking Cust Personlz Consolidat ed view Personaliz ation Statemnt Printing Contact Tracking Cust Personlz Fraud Verificatn Branch Locators Account Setup Account Inquiries Cust ID with PIN CreditCrd Advncs Fraud Verificatn Reports/ Stats Cash Counting Payment Trans Trans WFlow Transfer Trans Multiple Trans/Cl Stop Paymnt Withdraw Trans Payment Trans
Call Center
ATM
Trans Jrnl Transfer Trans Discon. Opers Multiple Trans/Cl Comm. Deposits Printers Cash Dispens Account Inquiries Cust ID with PIN Payment Trans Deposit Trans Trans WFlow
IVR
IVR routing Transfer Trans Multiple Trans/Cl Stop Paymnt Payment Trans Trans WFlow
Online
Trans Jrnl Transfer Trans Multiple Trans/Cl Stop Paymnt
Branch Locators Account Setup Account Inquiries Cust ID with PIN Check Ordering
Branch Locators Account Setup Account Inquiries
Fraud Verificatn
Reports/ Stats
Content Management Access Control
Workstation Configuration Navigation & Workflow
Comm. Accounts Credit Cards CshMng Accounts
Savings Accounts
DDA Accounts
MMA Accounts
Line of Crdt
Brokerag Accounts
Mortgage
Time Deposits
Invstmnt Accounts
Retirmnt Accounts
Source: CTOgroup
15
Targeting $12 Million Savings with SOA

14 12 0.2 0.1 0.8 1.6 0.2 8 0.2 0.4 0.6 0.6 4.3 0.8 1.6 1.8 0.3 Legacy Data Access Pote ntial duplication that can be eliminate d: 50%-75% Workflow Manage me nt Pote ntial duplication that can be eliminate d: 50%-75% Data Se rvices Pote ntial duplication that can be eliminate d: 25%-50% Business Logic Pote ntial duplication that can be eliminate d: 25%-50% 4.0 0.4 1.1 0 0.3 ATM Total: $1.8 15% total Branch Total: $4.7 39% total CC/IVR Total: $2.1 17% total Interne t Bank Total: $3.5 29% total Total Total: $12.1 Use r Inte rface Pote ntial duplication that can be eliminate d: 25%-50%
Duplication benefits are incremental to benefits from Leapfrog initiative
10 Annual IT spend (millions)
1.3 1.0
4 2.4 2 0.1
A l l c ha nne l s 2 0 0 3
Source: CTOgroup
Reducing Redundancy with Shared Services
Source: CTOgroup
16
Multi-channel SOA Strategy

Three stage SOA strategy
Renovation stage
Oriented towards gathering of information and requirements Creates architectures, plans, and infrastructure for retail systems Focus on short-term projects that will stabilize and, where possible, enhance the technical environment
Rationalization stage
Re-use is targeted Eliminate redundancies and inefficiencies Methods and tools rolled out to optimize the environment as much as possible Interim (short-term) solutions replaced by robust Services
Enhancement stage
Increasing / creating functionality Improving business capabilities, efficiencies, and robustness of Services
Source: CTOgroup
Portfolio of Plans for Projects Relevant to Business Domains

Stage 1
Renovate Stage
Stage 2
Stage 3
Rationalize Stage Retail Bank Plan
Enhance Stage
Review
Iterative Overlapping
Build
SOA
Plan
Multi-level Functional Architecture Technical Architecture
Tooling & Design

Source: CTOgroup
17
SOA Project Plan

Detailed Analysis: Weeks 1 - 5 Develop DevelopArchitecture: Architecture: Weeks Weeks55- -88 Delivery Phase Weeks 8 - 12
Architecture and Review
Functional Requirements and Pre-work Technical Requirements
LOB Functional Requirements
Document Functional Requirements
Develop Technical Architecture
Finish Technical Architecture
Program Preparation
Develop Pilot Vendor Assessment
Tooling And Design
Product and Tools Assessment
Project Design
Build
Portfolio Management Process
Renovation Projects Portfolio

Development Projects Portfolio
Renovation Projects
Finalize Metrics
Plan
Develop and execute PMO
Develop Business Case

Execute Communication Plan Source: CTOgroup
Develop Architecture
Major Tasks Develop next level of detail for Retail Banking strategy/business requirements and resulting IT implications
Interview and conduct workshops to capture business and IT input Develop Retail Banking Technical Architecture Develop Retail Banking Functional Architecture
Key Deliverables Production ready pilot Business Architecture Technical Architecture Technical constraints Application health assessment CRM implications to architecture Integration requirements of other LOB systems
Document and assess current applications, architectures Develop production ready pilot to prove architecture
Source: CTOgroup
18
Vendor Assessment
Major Tasks Design the projects identified in the architecture review Develop a vendor and product selection process Document package and tool capability of selected vendors Recommend tools and packages as required Feed vendor product architecture information to the requirements and architecture teams Key Deliverables Project designs with tooling requirements Short-list of selected key vendors and products Documented selection process with guidelines Repository of vendor product information Architecture Capabilities
Source: CTOgroup
Portfolio Management Process

Major Tasks Develop a portfolio management process Identify low hanging fruit projects (and create business cases for them) which can be executed for immediate benefits Begin execution of low hanging fruit projects Develop a portfolio to help manage projects longer term Renovation proof of concept Key Deliverables List of prioritized renovation projects with business cases Portfolio management process Projects portfolio Production ready renovated application
Source: CTOgroup
19
Establish Program Management Office

Major Tasks
Plan and coordinate activities Ensure that the teams are comprised of the right competencies Provide governance to the program from a change, metrics, budget, and information flow perspective Oversee all business cases and provide appropriate level of QA Ensure that all deliverables promised by the various projects are tracked and delivered on time Ensure that the right support and operations people are kept informed of projects
Key Deliverables Detailed project plans with team make-up Tactical level business case for change Metrics to measure change Communication plan
Source: CTOgroup
Results
Business/IT Alignment Remove redundant spending Eliminate redundant functionality and effort Focus on a coherent path forward
Source: CTOgroup
20
Building the Business Case for SOA
The Benefits of SOA

Reduced cost of integration Improved value from legacy applications Reuse leading to reduced redundancy Greater visibility for governance & compliance Increased reuse of software assets Business agility
Respond quickly & efficiently to business change Leverage change for competitive advantage
21
Building the Business Case

How to solve areas of urgent business pain? Target key pain point/SOA benefit
Cost of integration? ROI straightforward Regulatory compliance? ROI = risk of incarceration Shared Service benefits? ROI depends upon customer value Agility? ROI hard to calculate
Implement a SOA pilot
SOA Pilots
A few high ROI Services Build acceptance for SOA Get team up to speed Work out the kinks Pilot the governance model Part of an iterative approach to SOA
DANGER! Avoid the SOA Pilot Pitfall

Piloting only the Services instead of the architecture Remember, the pilot is one step on the roadmap
22
Thank You!
Jason Bloomberg jbloomberg@zapthink.com
Ronald Schmelzer rschmelzer@zapthink.com
Photos Lisa Polucci
23

Current State of Soa in Practice: Ron Schmelzer Jason Bloomberg Senior Analysts Zapthink, LLC Take Credit Code: Eustate

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Current State of Soa in Practice: Ron Schmelzer Jason Bloomberg Senior Analysts Zapthink, LLC Take Credit Code: Eustate

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Current State of SOA in Practice

Copyright 2006, ZapThink, LLC

Key Patterns in Market

Energy Company Example

Moved toward establishing enterprise-wide EA committee Undertaking SOA pilot projects

Health Insurance Company Case Study

Copyright 2006, ZapThink, LLC

Copyright 2006, ZapThink, LLC

.NET mostly off-the-shelf Homegrown Java framework based on Struts, etc.

Copyright 2006, ZapThink, LLC

Issues Theyre Facing

Must get users to use Services (and only Services)

Copyright 2006, ZapThink, LLC

Key Strength: Governance

Copyright 2006, ZapThink, LLC

Aeroplan Case Study

Copyright 2006, ZapThink, LLC

Copyright 2006, ZapThink, LLC

Aeroplan and Real-time Miles eCommerce

Copyright 2006, ZapThink, LLC

Current Electronic Channels

Service & Resource Tiers

www. Aeroplan .com

Direct Marketing Services Combined Services

Reservation (RESIII) Services

Copyright 2006, ZapThink, LLC

Adding a New B2B (Real-Time) Channel

Service & Resource Tiers

www. Aeroplan .com

Direct Marketing Services Combined Services Reservation (RESIII) Services

FTP Web Svc. Systems Systems

Web Services Gateway FTP Server

Copyright 2006, ZapThink, LLC

Why this approach?

Copyright 2006, ZapThink, LLC

Meeting the Requirements

Copyright 2006, ZapThink, LLC

Retail Bank ROI Case Study

Copyright 2006, ZapThink, LLC

Copyright 2006, ZapThink, LLC

Highly redundant spending

Copyright 2006, ZapThink, LLC

Budget Allocation, Total Annual IT Spend

400 49.5 350 Annual IT spend (millions) 146.5

100.8 300 133.0

50.9 38.7 84.7

100 128.8 50 120.6

% in scope : 12% % out of scope: 88%

Copyright 2006, ZapThink, LLC

Infrastructure = 50% of IT Spend

ATM: Total: $17.4 01-03 CAGR: 13.6% 02-03 CAGR: 29.5%

Int ernet Bank 33% CCIVR 2 1%

Infr M ix ATM Internet CCBank5% IVR 7% 13 %

2003 Spend Mix

0 2001 Total: $54.8

2002 Total: $49.5 % Inc: -9.6%

2003 Total: $57.6 % Inc: 16.3% 01-03 CAGR: 2.5%

Control one third of Annual Retail Channel IT spend

Long-term controllable costs

Copyright 2006, ZapThink, LLC

Discretionary IT spend < $10 Million per Year

50 Annual IT spend (millions)

Nondiscretionary IT spend Discretionary IT spend