Click here to close now.

Welcome!

Microservices Journal Authors: Elizabeth White, David Sprott, Lori MacVittie, Liz McMillan, John Wetherill

Related Topics: Microservices Journal, Oracle

Microservices Journal: Article

SOA and eXtreme Transaction Processing (XTP)

Financial institutions are pushing the envelope and require more processing capability

David Chappell's Blog

Across financial services firms we have been seeing a new set of business priorities. There are the "grow the business" priorities that are primarily centered around things like improving customer intimacy and increasing competitive differentiation.  here are also ongoing issues of compliance to regulation and risk mitigation while also keeping an eye towards improving cost efficiency. The thing that hasn't changed is that IT is viewed as the enabler to overcome these challenges. 

 

Financial institutions are pushing the envelope and require more processing capability, but without requiring exponential increase in hardware costs. The growth of extreme transaction processing (XTP) in areas such as fraud detection, risk computation, and stock trade resolution are pushing current solutions such as those based on the mainframe to the limit. These new applications require a new computing paradigm. 

 

We're seeing that SOA coupled with XTP (eXtreme Transaction Processing) is the future for financial services infrastructure as the means to achieve these goals that are often perceived as conflicting.  XTP pertains to a certain class of applications that need to handle large volumes of data that needs to be absorbed, correlated, and acted upon.  Typically the data that is processed by XTP applications comes in the form of large numbers of events, and represents data that changes frequently.  XTP style applications require that transactions and computations occur in memory and do not incur a heavy reliance on conventional back end systems due to the need for extremely fast response rates while still maintaining transactional integrity. 

 

XTP, btw, is a concept that Gartner's Massimo Pezzini has been writing and speaking about as well. In a Gartner research note Gartner Research ID # G00151768 he predicts that over the next 4 years the XTPP (eXtreme Transaction Processing Platform) technology category will evolve as the platform vendors work to embrace XTP and implement infrastructure to support it.  In a recent presentation that Massimo did on the subject, he also stated that there are vendors today that are already implementing important pieces of it. 

 

In addition, the Next Generation Grid Enabled SOA and Not Your MOM's Bus  (a.k.a SOA Grid) subjects that I have been writing about a great deal lately are conceptually something I would like to see lots of commercial vendors and open source projects embrace. These are variations on the XTPP theme.  But we don't have to wait 4 years for it. The SOA Grid is a new approach to thinking about SOA infrastructure, which provides state-aware, continuous availability for service infrastructure, application data, and processing logic. It's based on architecture that combines horizontally scalable, database-independent, middle-tier data caching with intelligent parallelization and an affinity of business logic with cache data. This enables newer, simpler, and more-efficient models for highly scalable SOA-based applications that take full advantage of event-driven architectures.

 

SOA Grid based XTP applications can be built today using what Oracle has already in shipping products. Oracle Coherence coupled with Oracle SOA Suite deliver the industry's first grid-enabled SOA platform for Extreme Transaction Processing.   

 

Typical use cases for using SOA Grid to build next generation applications are in the areas of fraud detection, trade resolution, and risk management calculations away from the mainframe to low cost commodity hardware.

When talking about this concept with folks I often get the question, or the observation, that Complex Event Processing (CEP) is positioned to solve some of the same thorny problems of tracking business exceptions such as what is required for fraud detection. Actually XTP is tied to CEP in that they are both about consuming and correlating large amounts of event data and doing something meaningful with it. However, often the amount of event data that needs to be captured and processed far exceeds the capacity for conventional storage mechanisms. In the words of some of our customers, sometimes "there just isn't a disk that can spin fast enough" for the volumes of data that needs to be processed. For these cases, the Oracle Coherence grid becomes the place where the large volumes of event data are collected, stored, examined for out of the ordinary events, etc. In the financial services area, ATM banking transactions that occur across different geographical areas within a short time window can be considered as out of the ordinary events, or business exceptions. Those business exceptions can be detected by rules that are coded into the application, or the CEP engine can be used more generically to identify patterns with temporal awareness and raise business exceptions appropriately.

 

The tie-ins to SOA are many, but the most obvious one is that once the exceptions are detected, there are actions to be taken. Typical actions to be taken are to send alerts to a BAM dashboard and to invoke a business process or human workflow, such as what can be defined and executed using the Oracle BPEL process manager.
  
 

More Stories By Dave Chappell

David Chappell is vice president and chief technologist for SOA at Oracle Corporation, and is driving the vision for Oracle’s SOA on App Grid initiative.

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
coffeey 04/23/09 07:18:00 AM EDT

IBM's WebSphere eXtreme Scale seems to address some of the new computing paradigm. There seems to be alot of competition coming to this space.

@MicroservicesExpo Stories
For those of us that have been practicing SOA for over a decade, it's surprising that there's so much interest in microservices. In fairness microservices don't look like the vendor play that was early SOA in the early noughties. But experienced SOA practitioners everywhere will be wondering if microservices is actually a good thing. You see microservices is basically an SOA pattern that inherits all the well-known SOA principles and adds characteristics that address the use of SOA for distribut...
Microservices are the result of decomposing applications. That may sound a lot like SOA, but SOA was based on an object-oriented (noun) premise; that is, services were built around an object - like a customer - with all the necessary operations (functions) that go along with it. SOA was also founded on a variety of standards (most of them coming out of OASIS) like SOAP, WSDL, XML and UDDI. Microservices have no standards (at least none deriving from a standards body or organization) and can be b...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize sup...
It's 2:15pm on a Friday, and I'm sitting in the keynote hall at PyCon 2013 fidgeting through a succession of lightning talks that have very little relevance to my life. Topics like "Python code coverage techniques" (ho-hum) and "Controlling Christmas lights with Python” (yawn - I wonder if there's anything new on Hacker News)...when Solomon Hykes takes the stage, unveils Docker, and the world shifts. If you haven't seen it yet, you should watch the video of Solomon's Pycon The Future of Linux C...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application and business needs change, data repositories and structures get outmoded rapidly, resulting in increased work for applica...
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps,...
NuoDB just introduced the Swifts 2.1 Release. In this demo at 15th Cloud Expo, Seth Proctor, CTO of NuoDB, Inc., discussed why scaling databases in the cloud is challenging, why building your application on top of the infrastructure that is designed with this in mind makes a difference, and what you can do with NuoDB that simplifies your programming model, your operations model.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
What are the benefits of using an enterprise-grade orchestration platform? In their session at 15th Cloud Expo, Nate Gordon, Director of Technology at Appcore, and Kedar Poduri, Senior Director of Product Management at Citrix Systems, took a closer look at the architectural design factors needed to support diverse workloads and how to run these workloads efficiently as a service provider. They also discussed how to deploy private cloud environments in 15 minutes or less.
Cloud Expo New York is happening from June 9 - 11. This event brings together the worlds of Cloud Computing, DevOps, IoT, WebRTC, Big Data and SDDC. We hope to see you there-members of the Blue Box team will exhibit in booth 218 next to the DevOps area. Plus, our Chief Product Officer, Hernan Alvarez, will present his talk "The Cloud Has a Down-and-Dirty Lining" as part of the Operations track in the DevOps Summit portion of the event on June 9 at 11 am. Learn more about his session her...
Docker is an open platform for developers and sysadmins of distributed applications that enables them to build, ship, and run any app anywhere. Docker allows applications to run on any platform irrespective of what tools were used to build it making it easy to distribute, test, and run software. I found this 5 Minute Docker video, which is very helpful when you want to get a quick and digestible overview. If you want to learn more, you can go to Docker’s web page and start with this Docker intro...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
Over the years, a variety of methodologies have emerged in order to overcome the challenges related to project constraints. The successful use of each methodology seems highly context-dependent. However, communication seems to be the common denominator of the many challenges that project management methodologies intend to resolve. In this respect, Information and Communication Technologies (ICTs) can be viewed as powerful tools for managing projects. Few research papers have focused on the way...
As the world moves from DevOps to NoOps, application deployment to the cloud ought to become a lot simpler. However, applications have been architected with a much tighter coupling than it needs to be which makes deployment in different environments and migration between them harder. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, Netflix and so on is at the heart of CloudFoundry – a complete developer-oriented Platform as a Service (PaaS...
There is no question that the cloud is where businesses want to host data. Until recently hypervisor virtualization was the most widely used method in cloud computing. Recently virtual containers have been gaining in popularity, and for good reason. In the debate between virtual machines and containers, the latter have been seen as the new kid on the block – and like other emerging technology have had some initial shortcomings. However, the container space has evolved drastically since coming on...