SaaS data quality deployments. The increasing demand for SaaS technology is creating a need in the data quality market

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1 SaaS data quality deployments The increasing demand for SaaS technology is creating a need in the data quality market An Experian Data Quality White Paper November 2014

2 Summary Software-as-a-service (SaaS) deployments are becoming increasingly prevalent across the software market. Gartner is projecting the SaaS market will grow at a steady compound annual growth rate (CAGR) of 19.5 percent through 2016, having increased the forecast slightly (0.4 percent) since its latest published report. Growth in SaaS adoption is not just in the CRM market, which is still the largest segment of SaaS spend, but also in the data quality space. As more businesses look to become data driven and use their first-party information for an increasing variety of operations, organizations realize that their information needs to be accurate. SaaS deployment options are an important part of the 89 percent of companies who are investing in data quality solutions. SaaS data quality tools SaaS is increasingly the choice for data quality tools, rather than on-premise methods. A recent Experian Data Quality study revealed that 86 percent of companies that have a data quality solution in place have implemented at least part of their technology package as SaaS. The most popular type of SaaS data quality technology is data profiling, followed by data cleansing. Purchasing SaaS There are a number of factors organizations consider when looking to purchase SaaS data quality technology. Over half of organizations today are reviewing SaaS technology to both replace existing solutions and fit new business needs. However, about 13 percent of companies are only looking to replace existing solutions and 18 percent are looking for tools to only fit a new business need. Business are also purchasing SaaS data quality solutions in a variety of channels. About half of companies are going through more traditional routes of purchasing software, such as going through a sales representative. However, about half are going through an online marketplace their CRM provider offers, such as the Salesforce AppExchange. While about 39 percent of companies purchase data quality tools through a selfservice direct vendor website, an increasing number of data quality companies are offering this option. 60% 50% 40% 30% 20% 10% 0% SaaS data quality tools 57% 53% 50% 51% 46% 43% 2% Types of data quality solutions Data cleansing Data enrichment Matching and linkage Standardization Data profiling Monitoring and audit Don't know SaaS data quality deployments 1

3 Reluctance around SaaS Despite the large number of SaaS data quality solutions, it still represents the minority deployment option for data quality technology. The bulk of existing solutions are still deployed as on-premise and it is still a popular option for new technology. However, that is certainly changing and many organizations are looking at SaaS for new parts of their data quality management strategy. Security is still a top concern of SaaS technology, which is cited by 63 percent of respondents. That is followed by concerns around support and data privacy. Some organizations are reluctant to make the transition from on-premise to SaaS. While some of the tentativeness relates to the cost of displacing on-premise offerings that are already in place and a lack of true SaaS options across vendors in the data quality market, a large number of companies still have basic concerns around the technology. SaaS technology concerns Security is still a top concern of SaaS technology, which is cited by 63 percent of respondents. That is followed by apprehensions around support and data privacy. These concerns will need to be addressed further before more companies start implementing a larger percentage of their data quality infrastructure in the cloud. 70% 60% 50% 40% 30% 63% 50% 32% 25% 41% 52% 20% 10% 0% Security Service-level agreement Pricing Data privacy Lack of control Support SaaS data quality deployments 2

4 Top must-ask questions for data quality vendors When looking at a data quality vendor, it is important to take time to ask a couple of questions that address some of the key concerns around SaaS technology in addition to the standard data quality questions. QUESTION 1 What are your support hours, response times and escalation procedures? Support for data quality tools is an important part of selecting a SaaS solution. If and when a problem does arise, you want to be able to speak with a vendor quickly, without being put out of production. Look for vendors that can supply at least a portion of your data quality tools in a real-time capacity at the point of capture. This will ensure only accurate information is collected and that data can be leveraged quickly. QUESTION 2 How often is the product updated? Data update timeframes are as important as the source of information. You do not want old information being used for a reference file or data enrichment solution. It is important that information be kept up to date or algorithms be incorporated to avoid reference data for certain assets. Look for vendors that can provide a schedule for data updates or can demonstrate how often enrichment data is checked. Really, cloud solutions should be kept up to date at all times. SaaS data quality deployments 3

5 QUESTION 3 Do you have scheduled downtime? While many SaaS providers look to prevent downtime, it can be unavoidable and certain amounts of downtime may be scheduled for maintenance. Find out the difference between scheduled vs. unscheduled downtime and what steps the vendor takes to prevent downtime. Look for a SaaS provider that has clusters of servers with built-in redundancy and replication. These clusters are often housed in geographically dispersed data centers to help minimize downtime. QUESTION 4 What type of security and privacy practices are in place? Platform security should be high on your organizations agenda. It is important to be confident that the solution will not only perform to the expected level, but also that the solution is safe and secure. Look for a vendor that follows the Organization of Standardization (ISO) 27001, which provides a model for establishing, implementing, operating, monitoring, reviewing, maintaining and improving an information security management system. Make sure the security is a core part of how they operate. QUESTION 5 What control do I have around customization? SaaS solutions should be more out-of-the-box type solutions that can be easily purchased and implemented. While customization is not always as robust as on-premise, there should be some basic adjustments that can be made. Look for a vendor that can integrate directly into your CRM or existing applications to ensure the product has a similar look and feel. See what additional adjustments can easily be made that might be able to make a big difference in your environment. SaaS data quality deployments 4

6 Conclusion As SaaS becomes an increasingly popular deployment model for businesses, more data quality tools will be hosted in the cloud. When businesses move from onpremise to SaaS, it is important that they ask vendors the right questions to ensure the customization and security they have come to expect is still maintained in a hosted platform. However, the benefits of SaaS, such as flexible pricing models and updated products, should well outweigh the trade-offs. Methodology In September 2014, Experian Data Quality commissioned a research study to look at current approaches to data quality. This report, SaaS data quality deployments reviews the level of investment in SaaS data quality solutions and how it is being tracked across the organization. There were 200 respondents in the U.S. that took part in the research, produced by GMI for Experian Data Quality. Individuals in marketing, data management, customer service, IT, sales, finance, management and operations departments who had knowledge of data management practices all took part in the survey. Businesses of various sizes were surveyed, including small businesses and large enterprises. These individuals came from a variety of industry sectors, including manufacturing, automotive, retail, financial services and travel. About Experian Data Quality Experian Data Quality is a global leader in providing data quality software and services to organizations of all sizes. We help our clients to proactively manage the quality of their data through world-class validation, matching, enrichment and profiling capabilities. With flexible software-as-a-service and on-premise deployment models, Experian Data Quality software allows organizations around the world to truly connect with their customers by delivering intelligent interactions, every time. Established in 1990 with offices throughout the United States, Europe and Asia Pacific, Experian Data Quality has more than 13,500 clients worldwide in retail, finance, education, insurance, government, healthcare and other sectors. For more information, visit SaaS data quality deployments 5

7 Experian Data Quality 125 Summer St Ste 1910 Boston, MA Experian Information Solutions, Inc. All rights reserved. Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners. November 2014