demystifying open source bi - stratebi sobre el bi open source.pdf · demystifying open source bi...

©2007, Ventana Research, Inc.

Demystifying Open Source BI

June 20th, 2007Mark Smith – CEO & EVP Research

©2007, Ventana Research, Inc.2

Mark Smith – CEO & EVP Research

Mark is responsible for the overall direction of Ventana Research and drives the global Performance Management research agenda covering both business and technology. He defined the blueprint for Performance Management as the linking together of people, processes and systems across organizations to drive effective results. Mark is an expert in Business Intelligence and evangelizes across the world on Performance Management for Finance, Operations and IT. As an industry veteran with 20 years of experience, Mark worked at companies including SAP, META Group, Oracle and IRI Software before founding Ventana Research.

[email protected]

Lance Walter, VP of Marketing, Pentaho

LANCE WALTER, Vice President of Marketing, Pentaho. Lance joined Pentaho in 2005 and leads a team responsible for product strategy and requirements, corporate communications, and lead generation. Prior to Pentaho, Lance was Vice President of Product Marketing at Business Objects. Lance’s career spans nearly 15 years in data warehousing and business intelligence, holding various technical, managerial, and marketing roles at Oracle Corp., Hyperion Solutions and Siebel Systems.

[email protected]


Everyone Wants Your IT Budget for BI


Significant Changes in Market Occurring and Varying Technology Approaches

But Does One Size Fit All for BI?


BI Technology has Matured – Open Source and Application Development

Tools & Applications

Monitoring & Alerting

Platform and Server Technology

Dashboard & Scorecard

Information Management (Hubs & Repository)

GIS & Location

Reporting & Visualization

Integration Management (Application, Data & Events.)

2000 - 2005DashboardsPlatformsReporting

Mobile & Search Location & EventsOpen Source & App. Dev.

2006 - 2010

Rules & Workflow Modeling & Search

Embedded BI & Analytics Forecasting & Mining


Business Intelligence – Business & IT Initiative to Improve Performance & Productivity

Business Intelligence (BI) is the integration and access of any data transformed into meaningful information through an iterative process for business objectives

What is It?

Objectives of BIManage – Utilize metrics to provide insight on productivity, profitability and complianceGrow – Provide information to make best informed decisions onprofitable revenue growth of customers and subscribersOptimize – Provide metrics that can help streamline and improve the performance of operational processesImprove – Increase value of business through information to improve effectiveness and responsiveness of people and processes


Traditional Challenges with BI now Directly Addressed with Open Source BI

Development CommunitySituation – Closed in design and development processImpact – Lack of creativity in applications for business

Embedding into OrganizationSituation – Not able to embed BI into organizationImpact – Separate applications for each need

Specific Application NeedsSituation – Not able to tailor to specific needsImpact – Lack of applicability to business and processes


Open Source BI - An Emerging Market

Current Use Plan To Deploy More

Market adoption is higher than anticipated and new deployments have been successful

©2006, Ventana Research Open Source BI Research - 2006


Where is Open Source Business Intelligence Driving Value?

Application Development TeamsExtend value and capabilities of applications with BI

Data Warehouse and BI TeamAdopt and deploy BI to business at lower TCO

Functional Line of Business ITBusiness driven BI solutions & technology

Consulting GroupsBuild solutions to meet specific client requirements


Top Reasons for Open Source is BI Suite and then Application Development/Open Related

Although report development and application development but complete BI suite is a critical reason


Consistent Information in Enterprise is Like Panning for Gold

ERPCRMBusiness Applications SCM Budgeting HR

SAPSiebel Oracle Hyperion PeopleSoft

Analytics Reporting ReportingBudgetingAnalytics

Spreadsheets SpreadsheetsDashboards

Multiple Versions

Data Quality

Inconsistent Information

Wrong Information


Harmonizing Application and BI Development

ERPCRMBusiness Applications SCM Budgeting HR

Information Management

Business Intelligence Applications

Application & BI Development

Assess existing investments to gain full value from transactional data created for financial performance and

process improvement for thousand of users

SAPSiebel Oracle Hyperion PeopleSoft


Open Source Challenges Been Improving in Last Year to Meet Enterprise Needs

While Open Source is advancing there are more requirements and advancements that are now becoming a reality


Costing BI and Different Approaches to Technology for Your Requirements

Bus

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ase

Eval

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Acq

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Impl

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Ops

Usa

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Mgm

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Sup

port

Mai

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ance

Hardware

Software

Employee Labor

Consulting Labor

Training

Travel

Other

Buy

Build

Outsource

Consulting Labor,Implementation Costs

Cash & P&LTen Year Horizon

Fixed vs VariableCosts

Cos

t Cat

egor

ies

Project Phases

Scena

rios


What are Drivers for Open Source Examination

Cost is important but not everythingOrganizations that have deployed ranked ease of supporting users higher


Avoid Mistakes in Adopting BI and Not Considering Open Source Option

Mistakes Made by Many Organizations

No Business Case for Investment - Perform an Business Case that compares TCO and ROI for BI.

Focus on Conventional Wisdom – Do not proceed with accept how you may have with approached BI in the past. There are new technology advancements and business models that can best fit your projects.

BI Standards Might Not Be Beneficial – Many organizations believe that IT standard should over rule other approaches that maybe more cost effective or applicable.

Not Harnessing Existing IT and People Investments – Your organization has made significant investments into application development teams and deployments that could require embedded and custom BI.


Open Source BI – Specific Projects and Deployments Have Now Become Reality

While usage is primarily determined on a project by project basisThe plans for broader usage will have significant market impact

©2006, Ventana Research Open Source BI Research - 2006


Five Myths of Open Source BI

Myths that Open Source BI is

Not Ready for EnterpriseNot Functional Enough All or None Decision Introduces new Legal IssuesWill Cost More


About Ventana

Ventana Research650-931-0880

[email protected]


About Ventana Research

We are the leading Performance Management research and advisory services firm. We help business and IT be more efficient and effective by providing expert insights

and guidance.

Research

Advisory

ConsultingOur research and advisory

knowledge provides direct value for assessment and recommendations

Our research and experience is leveraged throughout a year

for our clients to maximize investments

Our research is the foundation that provides valuable insight to our

knowledge of market


Unique Differentiation

Research – Our specialized research is the foundation for insights and guidance provided by our expert analysts, all veterans with an average of more than 20 years of practical experience.

Reach – We reach 2 million people through our media partnerships, providing education into and increased market awareness of Performance Management.

Results – Through a high value and low risk approach, we deliver education and knowledge transfer to empower you to make the right decisions for the greatest impact on your business.


How We Help Our Clients

Thought Leadership EducationEducate clients on the value and impact of Performance Management

Business Case AssessmentBuild project justification through value and cost benefit analysis and recommendation

IT Portfolio Assessment Mapping existing and new technology (ERP, BI, DW) to business requirements

Objective and Expert Vendor Knowledge In depth knowledge and insight to vendors and provide insight to vendor negotiation and user adoption

Exchange of Best Practices Communication of knowledge in best practices of applying information technology to business processes like standardization, TCO and others

Project Life-Cycle to Vendor SelectionTranslation of business, user and information requirements to short list of information technology vendors

Professional Open Source

Pentaho Overview

World’s most popular enterprise open source BI Suite2 million lifetime downloads, averaging 100K / monthFounded in 2004: Pioneer in professional open source BI

Management - proven BI and open source veterans from Business Objects, Cognos, Hyperion, JBoss, Oracle, Red Hat, SAS

Board of Directors – deep expertise and proven success in open source

Widely recognized as the leader in open source BI

Sample Pentaho Customers

Demystifying Open Source BI

Lance Walter, VP Marketing, Pentaho

Reporting

Analysis

Dashboards

Data Integration

Data Mining

Pentaho Open BI Suite

“Open Source BI is an ‘All or None’Decision…..”

Pentaho at ZipRealtyNational Real Estate Brokerage

Key Challenges

Measuring and optimizing agent performance, customer satisfaction, and marketing ROI

Getting an integrated, strategic view across multiple operational systems

Pentaho Solution

Pentaho Data Integration

Red Hat Enterprise Linux, MySQL database

Continued use of proprietary BI tools (MicroStrategy)

Results

Three-fold performance increase, 8 hour reduction in batch load times

Simplified maintenance and reduced costs

Why Pentaho

Functionality and flexibility

Professional support

“With professional support and world-class ETL from Pentaho, we've been able to simplify our IT environment and lower our costs. We were also surprised at how much faster Pentaho Data Integration wasthan our prior solution.”

Open Source BI is NOT an ‘All or None’ Decision

The facts:

Most Pentaho customers already use proprietary BI

Proprietary replacements have happened, but usually after

a successful new/incremental deployment of open source BI

“Co-deployment” happensPentaho deployed side-by-side with proprietary BI (i.e. Pentaho for ETL, proprietary for reporting)Pentaho used to “extend” a deployment (i.e. deliver reports at very low cost to additional users beyond the initial “power users” using proprietary BI)

“Open source licenses are risky. You’re legally safer using proprietary BI….”

Professional Open Source BI REDUCES Open Source License “Risk”

The facts:

The largest independent proprietary BI vendors include open source

software in their distributions, and in many cases in their codeApache/Tomcat, MySQL, embedded XML parsers, utilities, etc.

Example, from Business Objects most recent 10-Q, at www.sec.gov

“We use selected open source software in our products and may use

more open source software in the future…We may also be subject to

claims that we have failed to comply with all the requirements of the

open source licenses.”

Reality: The Pentaho Subscription includes indemnification for

Pentaho’s open source BI technology, making it less risky relative to

potential open source legal issues.

“Open Source BI Will Cost Me More if I’m ‘Standardized’”

Orbitz Travel Services Overview

Orbitz is a leading online travel

company offering leisure and

business travelers a wide selection

of low airfares, as well as deals on

lodging, car rentals, cruises,

vacation packages and other travel

Inventory includes more than 400

airlines, more than 65,000 lodging

properties worldwide and 13 rental

car brands.

Division of Travelport

Orbitz Travel Services: Critical Needs

Connect travel agents and suppliers they support in areas

such as reporting, contract renewal, online equipment

ordering and user account administration.

Automate processes that were previously manual for travel

agents; strong need to improve user experience and save

time for transactions and reporting.

Reduce costs associated with new portal development,

deployment, and maintenance.

NET/NET: “Do More, With Less”

Situational Digest

Need for an integrated, extranet application with

integrated BIStandardized reports on-demand or delivered via e-mailParameterized reportsExtremely secure (agent data from multiple different companies)Common look-and-feel across the application

“Standardized” on a proprietary BI platform internally

The process:Orbitz reached out to incumbent BI vendor account managerQuoted > $1M USD for BI capabilities aloneDecided to explore alternatives that would better address the technology requirement, provide better value

ResultsMyAccount.Galileo.com

Pentaho Solution

Pentaho Reporting Subscription

Red Hat Enterprise Linux, JBoss Application Server, MySQL database

2,500 users with integrated contract renewal, ordering, reporting

Results

4-year, $1.5M TCO reduction

Integrated, self-service reporting

Application selected as 2006 JBoss Innovation Award winner

Why Pentaho

Cost of ownership

Embeddability within custom web-based applications (security, user interface, etc.)

Recommendations

“Be willing to take a chance on open source projects. Realize that open source projects can be every bit as good as commercial equivalents without the expensive license fees. You will probably also experience much better overall support – via the combination of community support tools such as Forums and Wikis and the for-pay technical support offered as part of the [Subscription.]”

Best Practices in the Orbitz Deployment

Pragmatism (not “religion”) rulesOrbitz evaluated multiple proprietary and open source offerings for every part of the applicationMade choices based on capabilities and value, not because they “hate Microsoft”, “love open source”, or “want to support the open source movement”

TrainingConsider training as a “pre-purchase” investment, rather than post-purchaseTraining is a comparatively inexpensive way to learn a product, and accelerate evaluation and/or deployment

Questions and Answers

Important Links and Resources

Pentaho demonstration (pre-configured installation)www.pentaho.org/download/Download, extract the file, click start.bat/start.sh & go

Demos and case studies:http://www.pentaho.com/products/demos/

Pentaho events calendarwww.pentaho.org/events/

Company and technology overviewhttp://www.pentaho.com/products/demos/pentaho_overview/pentaho_overview.html

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