What Is the Difference Between Federated Systems and Microservices?

Updated September 29th, 2024

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Federated systems and microservices are both architectural patterns, but they differ significantly in scope and purpose.
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A federated system is a collection of autonomous entities, such as databases, services, or organizations, that collaborate while maintaining their independence. These entities are loosely coupled, meaning they can operate independently but exchange data or services when needed. A common example is federated databases, where multiple databases are managed independently but can be queried as a single logical unit.

In contrast, microservices architecture involves breaking down a large application into smaller, independently deployable services. Each service handles a specific business capability and communicates with other services via APIs. Microservices are typically used to build cloud-native applications, allowing teams to develop, test, and deploy features independently.

The key characteristics of a federated system are decentralization, autonomy, and interoperability.

On the other hand, microservices emphasize scalability, flexibility, and modularity—making them ideal for dynamic environments where independent development and deployment are critical.


Federated systems vs microservices #

Here’s a visual table encapsulating their differences:

Aspect

Federated Systems

Microservices

Definition

A group of independent systems that collaborate while remaining autonomous.

A single application broken down into smaller, independent services.

Focus

Integration of independent systems.

Building a modular application by splitting it into services.

Key Feature

Decentralization and autonomy.

Flexibility and scalability.

Communication

Systems share data but operate independently.

Services communicate via APIs.

Example

Federated databases or organizations sharing data.

Cloud-based applications like Netflix using microservices for different features.

Use Case

Connecting different organizations or databases.

Building scalable, modular applications.


How to choose between federated systems and microservices? #

When to choose federated systems #


Example: A large enterprise with separate departments (such as finance, HR, and operations), each using its own database or software but needing to share data occasionally.

Scenario: A multinational company with independent subsidiaries or agencies (e.g., government institutions) that must collaborate but maintain their own systems, such as healthcare networks sharing patient data across hospitals.

Considerations:

  • Autonomy: Each system needs to remain independent.
  • Decentralization: Control is spread across different organizations or units.
  • Integration: Data exchange is necessary, but the systems shouldn’t be tightly coupled.
  • Compliance & privacy: Each entity must manage its own data according to regulations, making a centralized system unsuitable.

When to choose microservices #


Example: An e-commerce platform, like Amazon, that needs to break down services into catalog, checkout, payment, and recommendation engines.

Scenario: A SaaS company aiming to scale quickly by developing features like user management and billing as separate services.

Considerations:

  • Modularity: Breaking down complex applications into independent services.
  • Scalability: Each service can be scaled independently (e.g., scaling the “search” service without affecting the rest).
  • Continuous deployment: Teams can develop, deploy, and update services independently.
  • Technology flexibility: Different microservices can be built using different languages or technologies.

Things to keep in mind when making the decision #


System independence:

  • Use federated systems when systems must remain independent (due to legal or operational constraints).
  • Use microservices when building an application that needs flexibility, modularity, and scalability.

Integration needs:

  • Choose federated systems if your focus is connecting existing systems without disturbing their autonomy.
  • Choose microservices if you need to tightly integrate multiple components into one system while keeping them loosely coupled.

Governance and control:

  • Federated systems are ideal when different teams or organizations want to retain control over their own data and services.
  • Microservices work best when a single organization needs to maintain and control all services but in independent modules.

Performance & complexity:

  • Microservices may add complexity in managing multiple services, but they offer better performance scalability.
  • Federated systems can be simpler to set up initially but may have performance limitations due to decentralized communication.

Understanding your needs for independence versus integration, as well as your requirements for scale and control, will help guide your decision.


Conclusion #

Deciding between federated systems and microservices comes down to your organization’s specific needs. Federated systems prioritize autonomy and decentralization, while microservices focus on scalability and modularity. By understanding your goals around system independence, integration, and control, you can choose the architecture that best fits your requirements.


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