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000-664 exam Dumps Source : SOA Fundamentals
Test Code : 000-664
Test denomination : SOA Fundamentals
Vendor denomination : IBM
: 55 existent Questions
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“Microservice architecture provides a compass of technical benefits that contribute to the progress velocity and product quality in software projects, while moreover contributing to the overall commerce agility”– imprint Emeis, Senior director of software technologies, CA Technologies
Microservices devour been gaining ground in software progress since the term came into existence. Microservices, aka microservice architecture, is a variant of service-oriented architecture (SOA) for developing large applications where services are grained into chunks as per commerce domains. It enables the continuous delivery/deployment of tangled applications and makes the application easier to understand, develop, and test, and is more resilient to architecture erosion. The microservice architecture provides a recent pass to weave existing systems in novel ways in order to deliver software solutions quickly. It's one of the hottest topics in the software industry due to its capacity to provide modularity, scalability, availability; many enterprise software progress companies are keen to adopt it.
What Exactly Are Microservices?
Can microservices help an organization’s culture, skills, and needs? To understand microservices in depth, let’s first understand the gist of the wayward approach: monolithic architecture.
Everything About Monolithic Software
Wikipedia says, “A monolithic application describes a single-tiered software application in which the user interface and data access code are combined into a separate program from a separate platform.”
Monolithic software uses three-tier architecture:
Business Layer – This layer makes logical decisions and performs calculations. It processes the data between two layers and uses technologies enjoy Spring.
Data Access Layer – Here, the information is stored and retrieved from the database. The information is passed to the commerce layer and then ultimately to the user. It uses ORM tools enjoy Hibernate to process the information.
The web application client sends a request, the tier executes the commerce logic, the database stores the application specific data, and the UI displays the specific data to the user. But, as they participate the very code base, several problems are likely to occur.
This sort of architecture worked well for some time, but due to the increasing requisite for continuous delivery, there are multiple issues with this model.
Drawbacks of Monolithic Architecture
Operational Overhead: Different stakeholders labor with the different layer of monolithic application; hence the team will breathe confined to the specific domain expertise. The team who works on the presentation layer are specialized in UI technologies but devour the least learning of data access layer. Hence, if a recent feature is to breathe added, it requires different teams to coordinate and deliver a particular feature. This results in more time-span from ideation to time-to-market and ultimately affects the commerce ROI.
Software stack autonomy: It limits technology choices and forces an entire layer to exercise the separate framework. For instance, if the presentation layer is written in an HTML framework, the gross layer is to breathe implemented within the very framework. This refrains from implementing the latest technology, which results in the application code on becoming obsolete in a short time.
Implicit Interface: As this code is released in a separate file, a minor change in the application calls for the rebuilding of the entire application. Due to this, on-going applications are build down and results in the requisite of redeploying the recent version. This nature results in fewer updates and is not able to evolve as mercurial as they should.
Scalability: Monolithic applications possess one-dimensional scalability; hence fails to scale the individual components. So, the entire application needs to breathe scaled even though most of the applications might not require scaling.
Developing software without a edifying architecture can incur much of the cost to the organization. For instance: if a software progress company developed a software by following a non-modular approach where UI functionalities and commerce functionalities are mixed in the very sourced files, the company may requisite to invest much to uphold their application in the latest smart-phone aboriginal apps. This badly affects software maintainability and enlarge the time-to-market which ultimately affects the sales of the company.
Monolithic architectures devour been the traditional approach, but limitations with scaling, difficulties in maintaining a large codebase, high-risk upgrades, and large upfront setup costs devour compelled enterprises or Software progress Company to explore different approaches. Monolithic applications are a tough nut to crack and are difficult to understand and scale with time.
So, to avoid such problems, Microservice Architecture can breathe a savior! It provides the 360-degree twist to decipher the above-mentioned complexities; helping software progress companies to stand tall amongst competitors.
Introduction to the Microservice Architecture
Microservice arhitecture is the software progress technique which structures an application as a collection of loosely-coupled service. Each service is self-contained and should implement a separate commerce capability. Microservice architecture is designed to overcome the challenges, failure, and breakdown of larger applications. Microservices provide opportunities to add resiliency to the system so that components can handle spikes and errors gracefully. With this, every stakeholder can focus solely on one particular component of an overall application, with their own programming style without concerns about other components. The communication in microservices can breathe carried out effortlessly because they are stateless and in the well-defined interface (request and response are independent).
If applications/software are developed using microservices methodologies, it will mitigate to adopt DevOps approaches and would purge the deployment inefficiencies which would result in less time-to-market. As microservices are device-and platform-agnostic, it enables to develop the applications that provide enhanced user-experience across most of the platforms including web, mobile, IoT, tablets, wearables and many more.
For instance, Walmart Canada used monolithic architecture before 2012! The company faced glitches in handling 6 million page views/minutes which consumed more time and resulted in fewer sales. Due to such issues, they refactored their software architecture to microservices and organize the instant result and tall conversion rate overnight. Downtime was minimized and the company was able to exercise cheaper x86 servers rather than expensive hardware commodity which resulted in cost savings between 20%-50%.
Microservices and SOA
It is the natural evolution of SOA in which various technology stacks bring technology diversity into the progress team. Both SOA and Microservices allow tangled workload to breathe broken down into smaller, more manageable and independent pieces.
However, there are some basic differences between both of them.
Microservices vs SOA
Focuses on decoupling and bounded context
Goals to maximize re-usability
Systematic Change creates recent service
Systematic change calls for modifying monolith architecture
Focuses on continuous delivery and DevOps
Do focus on Continuous delivery and DevOps but it is not mainstream
Uses the simple messaging system for communication
Use of Enterprise Service Bus( ESB ) for communication
Use lightweight protocols such as HTTP, repose etc.
Supports message protocols
Provides independent data storage
Shared data storage
Philosophy of Microservices
The philosophy of microservice is similar to the Unix philosophy, “Do one thing and accomplish it well." Its characteristics are described below:
Componentization to discharge the separate functionality
Organized as per commerce capabilities
Focuses on products, not process
Decentralized governance and data management
Service is elastic, resilient, composable, minimal, and complete
Why Should Software progress Companies Invest in Microservice Architecture?
Improves frailty Isolation
In microservice architecture, developers are sensible of exactly on where to gape for the issues to win solved. If a separate module is affected, it can breathe easily demolished or resolved without other parts of an applications getting affected; increasing application’s availability. This is exactly contradictory in the monolithic application; failure of a separate component can pull down entire application. For instance, mobile gaming applications (built on monolithic architecture) which devour different components enjoy payment, login, player, history, and others. If a particular component, starts to consume more reminiscence space, the entire application will breathe affected which would result in a needy user experience.
Easy to Modify the Technology Stack
With microservices, a software progress company can try recent stack or the latest technologies on the specific components to enlarge usability and avail larger benefits at the application level. As there are no dependency issues, software developers can avoid using particular technology stacks if they are not providing consistent user-experience. With such continuous modernization, your system won’t become easily outdated.
Provides scalabilityMicroservices scale the parts that devour performance issues and exercise the hardware that best matches service requirements. As each service is the divorce component, scaling can breathe deployed using more containers, enabling more efficacious capacity planning, less licensing cost and arrogate hardware. Components of the captious service can breathe deployed on the multiple servers for the increased availability and performance without impacting the performance of the other service. This scalability results in better customer-experience and increases cost-savings.
Aligned With the Organization
If an organization is using microservice, team size can breathe defined to match with the required tasks. Moreover, teams can breathe broken down into smaller groups and can focus on separate components of the application. As the End goal is customer satisfaction and remarkable user experience, the team is not divided into UI team, database team and so on. For instance, if a team working in UAE is handling three services while the team working in California is handling five services, each team working in California and UAE can release and deploy different functionalities independently. These cross-functional teams labor towards the fulfillment of one separate functionality breaking down the silos between team fostering better collaboration.
Improved Productivity and Speed
With microservices, productivity and precipitate can breathe easily tackled. The different team works on different components simultaneously without having to wait for one team to finish the task. This results in speeding up the quality assurance as each micro-service can breathe tested individually. Other stakeholders can labor on enhancing the components that are already developed, while other programmers are working on other ones. This increases the precipitate and leads to the faster release of the product.
Hurdles to breathe Considered
Just because, everything looks flowery, it doesn’t suggest it is perfect for the software industry; it does devour potential pains which moreover requisite to breathe addressed:-
As microservice focuses on distributed systems and independent service each request needs to breathe handled carefully between the modules. It may betide that one of the services doesn’t respond which forces developers to write the extra code to avoid disruption.
Testing of microservice based application can breathe a painful assignment because each conditional service needs to breathe confirmed before starting the testing. As the number of services increases, complexities don’t remain at the backstage! Keeping tabs on every services becomes impractical because, there may occur database errors, network latency, caching issues etc. Hence, resiliency testing and frailty injection become a must.
Each service depends on its own API and platform, tracking down everything can breathe a pain-stacking job. A leader needs to monitor multiple entities and manage the entire infrastructure because if in-case any service fails, it becomes tedious to track down the issues. Thus, robust monitoring becomes necessary.
With the continuous delivery and rapid development, employees must pace up with the agility and precipitate requires availing the benefits from micro-services. If they grasp a long span of time to provision a server, the company can breathe in a solemn trouble.
Differences Between Monolithic and Microservice Architecture
Each component in the entire application must breathe small and must deliver end-goals
Follows single-tier architecture for every commerce goals
Services are fast
Takes more time
Even if one service goes down, it doesn't impress the other components. Other services can breathe carried on
If there is an issue in one specific feature, the gross system needs to breathe pulled down
Loosely coupled and decentralized. every works independently
All services are tightly coupled
More resources can breathe used for generating tall revenue
More resource allocation is not possible as services are not isolated
Application scaling is possible; hence hardware can breathe allocated as per the requirements
Scaling is a bit difficult; hence hardware allocation can breathe wasteful
Micro-services are rapidly developed and continuously available
A process needs to start from the scratch; rapid progress becomes difficult
Communicates with other micro-services by a well-defined interfaces
Communication can breathe messed up
Focuses on product
Focuses on entire project
Different technologies can breathe used for different micro-service
Latest technologies cannot breathe used as one program depends on others
The Future of Microservice Architecture
You might devour got the lucid scenario about Microservice architecture and the potentiality it possesses to change the software industry! With the increasing exercise of the digital technologies and multiple device support; software progress is diving down into the tangled process. But the software industry is blessed with the Microservice architecture which can serve as the perfect solution to decipher complexities for software progress companies. If companies assume to adopt it, it would surely impress the culture technically and operationally.
Big Giants Are Already Using It
Today, with the rise in the micro-service, most of the organizations are pulling down monolithic architecture and adopting modern one to leverage in the cut-throat competition. Some of them involve Netflix, eBay, Amazon, Twitter, PayPal, Walmart and many more…
NetFlix is one of the earliest adopters to exercise Microservices in SOA architecture. The time when the company was growing at a mercurial pace, was unable to build data centers to provide scalability. Minor problems in the progress required software developers to gape for the issues again and again. But, when they refactored the existing architecture with the micro-services, they were able to handle a billion calls each day through APIs from 800 different devices. Today, Netflix is using 500+ micro-services and 30+ engineering team.
Uber started its journey with monolithic architecture built for the separate offering in a separate city. As it was operated in only one city, one codebase option seemed to breathe the immaculate option and decipher every the commerce problems. But, when it rapidly expanded to other cities, components became tightly coupled, encapsulation was other concern and continuous integration turned out to breathe a liability. So, to decipher every these complexities, the engineering team refactored the existing application and made exercise of Microservices. They introduced
API gateway through which every passengers and drivers are connected
Deployed divorce units for performing divorce functionalities
All features can breathe scaled individually
Thus, Uber benefited a lot from shifting from monolithic to microservice architecture.
Amazon being one of the immense giant e-commerce stores followed the monolithic application which kept the developers apart from each other and separated team from the ultimate goal. The company had to resolve conflicts between the reconciling process, merging them into a separate version and producing a master version of all. gross recent code-base, test-cases requisite to breathe re-run to obtain certain that there devour been no rushes. These glitches made company to exercise Microservice architecture! This software solution communicated with the world through their own web service APIs. Hence, it was highly successful.
Making a Choice
Whether you select whether a monolith or microservices, both devour them devour advantages and disadvantages. In the end, selecting software architecture depends on your project requirements, the size of the project and much more. If you wish to build small-scale software, monolithic can breathe an option and if you prefer developing tangled software, microservice architecture is definitely a certain shot.
The extent to which IT commerce requirements are fulfilled is often associated with the accuracy with which commerce logic is expressed and automated by solution logic. Although initial applications devour traditionally been designed to address immediate and tactical requirements, it has historically been challenging to uphold applications in alignment with commerce needs when the nature and direction of the commerce changes.
Service-oriented computing introduces a design paradigm that promotes abstraction on many levels. One of the most efficacious means by which functional abstraction is applied is the establishment of service layers that accurately encapsulate and delineate commerce models. By doing so, common, pre-existing representations of commerce logic (business entities, commerce processes) can exist in implemented shape as physical services.
This is accomplished by incorporating a structured analysis and modeling process that requires the hands-on involvement of commerce theme matter experts in the actual definition of the conceptual service candidates (as explained in the Service-¬Oriented Analysis and Service Modeling section). The resulting service designs are capable of aligning automation technology with commerce intelligence on an unprecedented level (Figure 3.30).
Figure 3.30 Services with business-centric functional contexts are carefully modeled to express and encapsulate corresponding commerce models and logic.
Furthermore, the fact that services are designed to breathe intrinsically interoperable directly facilitates commerce change. As commerce processes are augmented in response to various factors (business climate changes, recent competitors, recent policies, recent priorities, etc.) services can breathe reconfigured into recent compositions that reflect the changed commerce logic. This allows a service-oriented technology architecture to evolve in tandem with the commerce itself.
Use the following table of contents to navigate to chapter excerpts.
SOA: Principles of Service Design Home: Service-oriented computing and SOA: Introduction 1: Design fundamentals: Design characteristics 2: Design fundamentals: Design principles 3: Design fundamentals: Design pattern and design pattern language 4: Design fundamentals: Design standard 5: Design fundamentals: Best practices 6: Introduction to service-oriented computing 7: Service oriented architecture 8: Service compositions 9: Understanding service oriented computing elements 10: Entity services 11: Web services and service oriented computing 12: Service inventory blueprints 13: Service-oriented analysis and service modeling 14: Service-oriented design 15: Goals and benefits of service-oriented computing 16: Increased intrinsic interoperability 17: Increased federation 18: Increased vendor diversification options 19: Increased commerce and technology domain alignment 20: Increased ROI 21: Increased organizational agility 22: Reduced IT burden
ABOUT THE BOOK:
SOA: Principles of Service Design is dedicated to service engineering and establishing service-orientation as a design paradigm. This hands-on manual for service design establishes concrete links between specific service-orientation design principles and the strategic goals and benefits associated with SOA. Purchase the book from Amazon.com.
ABOUT THE AUTHOR:
Thomas Erl is the world's top-selling SOA author, string Editor of the "Prentice Hall Service-Oriented Computing string and editor of The SOA Magazine. His books devour become international bestsellers and devour been formally endorsed by senior members of major software organizations such as IBM, Microsoft and Oracle. He is the founder of SOA Systems Inc., a company specializing in SOA training, certification and strategic consulting services with a vendor-agnostic focus.
With the Sears (SHLD) bankruptcy hitting the headlines, Kimco Realty (KIM) is down from nigh to $18 to just about $15-16 per participate in the last weeks.
More interestingly, the latest ~2$ drop is coming after the company already lost about half of its value in the last 2 years.
Yet, despite the significant drop in participate price, the dividend has been maintained and therefore, the dividend succumb is today reaching some of its highest levels ever at a hefty ~7% yield.
Is this the break of a lifetime to pick up shares of a quality company on the cheap?
Or is the Sears bankruptcy a final warning sign to win out while you noiseless can?
While most investors materialize to breathe running for the exit, they grasp a fresh gape of this highly yielding REIT opportunity.
Sears is Bankrupt: Time to Invest in Shopping Centers?
Less than a month ago, the long-anticipated bankruptcy of Sears finally came into fruition. After years of staying afloat through pecuniary maneuvering, a merger with Kmart and relying on billions of CEO Eddie Lampert's own money, Sears filed for chapter 11.
What does this mean?
The retailer is set to shutter 142 stores towards the End of the year End and launch liquidation sales shortly. The CEO Lampert will moreover step down as CEO, but he will remain Sears chairman, as his ESL Investments negotiates funding to uphold what was once the country's biggest retailer through bankruptcy.
Consequences for Retail REITs?
The market is heavily selling off retail REITs which lease space to Sears, and this includes Kimco. Now, the truth is that while the bankruptcy may create some short-term challenges to a number of REITs, it is not nearly as immense of a deal as the market is portraying it to be.
Retail REITs, including even the lowest quality ones CBL (CBL) and WPG (WPG) devour made very significant progress towards reducing their exposure to department stores in the recent years and generate very minimal revenue from Sears today. Therefore, its bankruptcy is not expected to devour a major impact on the immediate cash stream of REITs, but rather it will enlarge the requisite for Capex investments in the near term as landlords regain possession of vacated space in requisite of renovation for future releasing.
It is a short-term challenge, but it could moreover breathe a long-term break to create meaningful value. Noone wants to own properties that are leased to Sears, and so by replacing vacated stores to more celebrated retailers, retail REITs are set to help the value of their properties and achieve higher rents in the long run.
Kimco: A Unique break Following the Sell-off
We believe that most retail REITs are opportunistic today given the extreme pessimism of the market. Kimco is especially touching here because despite not being a traditional mall REIT, it is noiseless selling off as if it was one.
The market fails to recognize that Kimco is much more resilient than the average; and they believe that the abrupt sell-off of the last two years is unreasonable when you deem the following 5 factors:
1- Kimco owns grocery-store anchored shopping centers.
Today, over 75% of the annual rent is generated from properties that are grocery store-anchored and they deem this to breathe a significant risk mitigator in light of the rapid e-commerce growth. The middling US consumer makes a trip to a grocery store 1.6 times per week and this is not expected to change anytime soon. This provides a consistent traffic that benefits every the other tenants. People requisite to consume whether the economy is sturdy or weak, and therefore, grocery-anchored shopping centers can rely on a sustainable level of traffic regardless of economic conditions. The very cannot breathe said about every retail properties.
We just don’t observe the internet impacting the grocery store commerce significantly, and despite the continued growth of Amazon ( AMZN), they observe no intuition to worry for here. As a recent report from RCM puts it:
“There is a generic consensus that grocery-anchored retail centers will breathe around forever and, as long as they are, will breathe among the most attractive and highly sought-after investments… Survey participants believe that while consumers are increasing their online purchases, most are hesitant to buy groceries online. Further, when in the middle of planning and/or preparing a meal, last-minute items can’t breathe purchased and delivered on time when purchased online… No one can buy an ice cream cone, win their laundry, build gas in their car or check out a liquor store on Amazon…”
2- Kimco focuses on “value” and “service” oriented retailers
In addition to mostly owning grocery store-anchored properties, Kimco puts a remarkable emphasis on “ value” and “ service” oriented retailers which are eminent for being less affected by the growth of e-commerce.
Here is a ranking of Kimco’s top tenants:
It is very lucid here that the focus is build on thriving companies and not struggling ones. The largest tenant, TJ Maxx (TJX), is performing exceptionally well, and even aggressively opening recent stores. Home Depot (HD) is a lower risk company with defensive positioning to sustain profits even in a highly digitalized world. Ross (ROST) is another tall growth retailer. Walmart (WMT) needs no introduction here. And the list goes on and on.
3- Kimco has freshly repositioned its portfolio towards the highest quality
Since 2010, Kimco has been seeking to optimize the quality of its properties and disposed of assets with less desirable locations, tenants, and long-term growth potential.
In the process, the company reduced its portfolio from over 800 properties to just around 400 – or build differentially, it reduce the portfolio size in half. Today, 80% of the rents are generated from top major metro markets with a sturdy focus on higher growth coastal markets.
It reduces risk significantly and increases the long-term viability of the business.
4- Kimco has long lease terms to protect it from sudden vacancies
Unlike most mall REITs which may devour relatively short lease terms, Kimco has an middling of 10 years remaining on their anchor-tenant leases and about 5 years remaining on the leases of smaller shops.
Moreover, most leases devour contractual fixed rent bumps which will mitigate to drive NOI growth in the long run.
5- Kimco generates minimal revenue from department stores
Finally, and perhaps most importantly in today’s context, Kimco has diminutive exposure to Sears, J.C Penney(JCP), Macy’s (M) or other traditional department stores that you find at regular malls.
Out of its 437 properties with 8,200 stores leased to 3,800 tenants, only 14 leases are with Sears – representing just 0.6% of annual rent.
Source: Kimco earnings supplement
So a Sears liquidation would devour no significant impact on Kimco’s funds from operation or FFO. antithetical of that, the Sears bankrupcy is expected to breathe profitable in the long elope as the REIT is able to release space at higher rates. Sears is currently paying Kimco significantly less per square foot than the middling of its other top tenants.
And in terms of other distressed retailers, the Management estimates its total annual rent affected by store closures to breathe just around 1%.
Kimco owns mainly grocery-store anchored shopping centers, not malls.
The focus is build on service and value-oriented retailers that can thrive in a highly digitalized world.
The portfolio has been optimized over the last 8 years with half of the properties being sold to retain only a higher-quality basket.
The lease terms are attractive with long maturities and rent bumps providing consistent cash flow.
Since Kimco is not a mall REIT, the exposure to struggling retailers is minimal.
In this sense, Kimco is much better insulated from the retail market disruption than the middling landlord. The latest bankruptcy tidings of Sears caused market fears to rise and lead to a sell-off in the shares of Kimco. But really, when you dig deeper into the fundamentals of the company, this sell-off appears to breathe pass overblown and not justified.
Kimco appears to breathe well-positioned to breathe one of the few retail landlord to not only survive the e-commerce disruption, but to even thrive in it in the long run.
Deep Value cost – Sustainable tall Dividend
As one of the “higher-quality” REITs, Kimco has historically traded at a tall ~17-20x FFO multiple along with other blue-chip REITs such as Realty Income (O) or Simon (SPG). But with rising fears over the status of the retail industry, its participate cost plummeted to levels it did not visit in 8 years.
Source: Rubicon Associates
After the recent drop to just around $16 per share, Kimco is valued at just around 11x FFO and pays a safely covered 7 % yield. (77% payout ratio). This is very cheap for a company of this quality, and the above chart is proof of that.
Kimco is today trading at a 15% discount to the shopping focus peer group, and approximately in-line with the mall peer group. Yet, as they just discussed earlier, Kimco is much more resilient as compared to regular malls and as such it should trade at a sizable premium to them.
The management has been very vocal about its undervalued shares. And nothing speaks louder than a participate buy program. In the first half of the year, the company bought back $75.1 million in common shares. Given that the shares trade at historically cheap valuation of just around 11x FFO, they expect such actions to create significant value to shareholders in the long run.
The leavening is The recrudesce to Growth in 2019
While the shares are exceptionally inexpensive today, they accomplish not expect them to remain at the current cost for long. The market is highly pessimistic because the cash stream has slightly declined in the recent years as result of the large portfolio repositioning. That said, the company is expecting a recrudesce to positive growth as early as next year. As this occurs, they expect the market sentiment to help and reprice the shares at around 12-14x FFO – unlocking upside to patient shareholders.
The recrudesce to growth will moreover prove the market that the Sears bankruptcy is having any significant impact on Kimco. While they wait for the recrudesce to growth, the 7 % dividend succumb appears to breathe very sustainable with a 77% payout ratio and a BBB+ rated equipoise sheet.
Bankruptcies are nothing recent to the retail sectors. Retailers advance and go. It has always been enjoy that. Sears is only different because it is highly mediatized for being the Amazon of the 1930s. A few years from now, Kimco will breathe better off by getting rid of Sears thanks to its bankruptcy.
Kimco is today historically cheap because the market is failing to recognize that grocery-anchored shopping centers are much more resilient commerce than the middling mall. At “High succumb Landlord”, they hold a significant position in one of Kimco’s direct peers as piece of their Core Portfolio. They are today strongly considering to add Kimco for extra diversification benefits, and may issue a “TRADE ALERT” in the coming days or weeks should the cost remain at attractive levels.
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Disclosure: I am/we are long wpg; cbl; every STOCKS IN CORE PORTFOLIO AT tall succumb LANDLORD.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I devour no commerce relationship with any company whose stock is mentioned in this article.