©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.
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.
©2007, Ventana Research, Inc.5
Significant Changes in Market Occurring and Varying Technology Approaches
But Does One Size Fit All for BI?
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Costing BI and Different Approaches to Technology for Your Requirements
Bus
ines
s C
ase
Eval
uatio
n
Acq
uisi
tion
Impl
emen
tatio
n
Ops
Usa
ge
Mgm
t. &
Sup
port
Mai
nten
ance
Hardware
Software
Employee Labor
Consulting Labor
Training
Travel
Other
Buy
Build
Outsource
Consulting Labor,Implementation Costs
Cash & P<en Year Horizon
Fixed vs VariableCosts
Cos
t Cat
egor
ies
Project Phases
Scena
rios
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What are Drivers for Open Source Examination
Cost is important but not everythingOrganizations that have deployed ranked ease of supporting users higher
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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.
©2007, Ventana Research, Inc.18
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
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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
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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
©2007, Ventana Research, Inc.22
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.
©2007, Ventana Research, Inc.23
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
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
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)
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.
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