Microservices: the future of software or an expensive experiment?

What do Netflix, Uber and LinkedIn have in common? Each of these companies used microservices to create their business applications. More and more enterprises see the potential to create more flexible and scalable IT systems in this architecture. What exactly are microservices, and will they work in every business? Exorigo-Upos experts explain.

Microservices are small, independent modules, each with a specific function. Their autonomy means that they can be developed, deployed, and scaled independently of other system elements, accelerating application development and allowing for better adaptation of IT resources to the company’s actual needs.

– Increasing business requirements and the growing need to quickly deliver new features force entrepreneurs to look for more flexible solutions than traditional, monolithic applications. Microservices offer significant advantages here. Thanks to the autonomy of each service, they enable more efficient technology management and significantly accelerate the implementation process – says Marcin Zimnicki, Director of the Retail Technology Hub at Exorigo-Upos.

According to the “Microservices in the Enterprise, 2021” survey conducted among developers and IT managers, more than 80% of respondents considered the implementation of microservices to be cost-effective, and 77% consider this technology to be a reliable way to build applications. And no wonder – they offer great flexibility, which is noticeable, for example, in the choice of technology. Each element can be created in any programming language and use different databases, allowing you to tailor solutions to your business requirements. Microservices are also more resistant to failures – possible errors in one module do not paralyze the entire system, which significantly increases the stability of the software. However, each of them can become an entry point for potential threats. Therefore, using advanced security and regularly monitoring the infrastructure becomes a must.

Microservices are perfect for applications where high scalability and rapid implementation of new functions are needed. In e-commerce, for example, they support customer and cart service, order fulfilment, and payment processing. They are also used in video streaming, making managing user profiles, streaming, content recommendations, and analytics easier. In financial services, they help process transactions, manage accounts, and analyse data, enabling companies to respond quickly to changing market needs.

One example of modern payment solutions based on microservices is Cloud EFT. It is a proprietary, fully redundant Exorigo-Upos service that enables payment transaction processing. Cloud EFT meets all the requirements of payment organizations, including PCI DSS (Payment Card Industry Data Security Standards), ensuring the highest level of transaction security. With this technology, businesses can process payments quickly and securely, which is crucial in a rapidly changing business environment.

Despite the benefits, microservices are not always cost-effective, especially for smaller projects. They require significant investments in infrastructure and advanced technical expertise, and managing distributed services entails continuous synchronization of interfaces and version compatibility. As the system expands, this becomes a time-consuming and challenging process to maintain.

The high cost of implementation also results from the need for modern IT infrastructure based on the cloud, containers and monitoring tools. Companies see its potential and treat it as a key element of their strategy. According to the RetailTech 2024 report 39% of companies indicated that investing in the cloud is already a priority. It is also important to automate the implementation process, which further increases costs at the start. Each microservice may require individual configuration settings, and disruptions in communication between them can lead to problems with data availability and integrity. Communication reliability is crucial in systems with many microservices to keep the whole thing running smoothly.

– With small and medium-sized projects, implementing microservices often turns out to be unprofitable. They require significant financial outlays, extensive infrastructure, and the support of DevOps teams to manage and monitor the system. In addition, migration to microservices is a time-consuming process that is best carried out at a stage when the development of the monolith has already been limited to the maximum. Transforming a large monolithic system into microservices can take up to several years, so many companies decide to gradually transition – first by creating microservices for the most loaded parts of the application – adds Marcin Zimnicki.

Microservices are flexible, scalable software architectures ideal for large organizations and projects with complex requirements. They enable quick deployments and stable system operation but are associated with high costs and complex management. Companies considering microservices should carefully assess whether this architecture will work for their business. If you want to learn more about microservices and their implementation in your company, please contact us. Our experts at Exorigo-Upos have extensive knowledge and experience in this area, so they will help you choose the best solutions tailored to your business’s specifics.