Trends in Business Intelligence

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1 Trends in Business Intelligence The Impact of SaaS and Social Data Shawn P. Rogers Vice President Research ~ Business Intelligence Practice Enterprise Management Associates décembre 16, 2010

2 Speaker Shawn has more than 19 years of hands-on IT experience, with a focus on Internet-enabled technology. In 2004 he co-founded the BeyeNETWORK and held the position of Executive Vice President and Editorial Director. Shawn guided the company's international growth strategy and helped the BeyeNETWORK grow to 18 Web sites around the world, making it the largest and most read community covering the business intelligence, data warehousing, performance management and data integration space. Prior to co-founding the BeyeNETWORK, Shawn was Internet Business Development Director at Thomson Media (now SourceMedia), President of Achieve Communications and a partner at DMReview magazine (now Information Management) where he was Vice President as well as Publisher and Editorial Director of DMReview.com, a leading business intelligence and data warehousing Web site. Slide 2

3 Agenda Top Technology Trends Cloud Computing and Software as a Service (SaaS) Drivers and Expectations Decision Factors Barriers to Success Return on Investment (ROI) Solution Providers Social Data Analytics Social Media Types Data Sources Valuable Data for the Enterprise Wrap up Sentiment Data Social Graph Slide 3

4 Cloud Computing and Software as a Service (SaaS)

5 Defining Cloud Computing U.S. National Institute for Standards and Technology (NIST) a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Slide 5

6 Essential Characteristics On Demand Self-Service User can provision and acquire computing capabilities, server time, network storage as needed without much or any human interaction Broad Network Access Computing capabilities are available via network, via heterogeneous thick or thin clients Resource Pooling The computing resources of the service provider are pooled to serve multiple customers in a multi-tenant model. Can include resources like storage, processing, memory, network bandwidth or virtual machine configurations. Rapid Elasticity Quick scale out and rapid release provisioned seamlessly and unlimited quantities Measured Service Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of the utilized service. Slide 6

7 Cloud Service Models Cloud Software as a Service (SaaS) The capability provided to the consumer is to use the provider s applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based ). The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Cloud Platform as a Service (PaaS) The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations. Cloud Infrastructure as a Service (IaaS) The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls). Slide 7

8 Cloud Service Models What cloud computing service model(s) has your organization deployed, or is planning to deploy? Select all that apply. Software as a Service (SaaS) 67% Infrastructure as a Service (IaaS) 43% Platform as a Service (PaaS) 42% 0% 10% 20% 30% 40% 50% 60% 70% 80% Slide 8

9 Cloud Deployment Models What cloud computing deployment model(s) has your organization deployed, or is planning to deploy? Select all that apply. Private cloud 75% Community cloud 35% Public cloud 31% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Slide 9

10 Drivers and Expectations Both Operational and Capital cost reductions SMB adoption Some vendors reporting Europe traction Removes penalty of failure Lower upfront cost Users are more agile than IT.says Scott Davis Nick Carr - Does IT Matter? The Big Switch Perfect if your loads are unpredictable or seasonal Basic reporting and analysis is a commodity why reinvent Slide Enterprise Management Associates, Inc.

11 Drivers and Expectations Which are the most important drivers in your org s decision to implement cloud computing? Select 3 most important drivers. Reduce the operational costs of IT management Improve IT service quality Reduce the capital costs of IT management Increase flexibility and agility Enable disaster recovery/business continuity Reduce complexity of IT management Free up resources for strategic projects Improve security or risk management outcomes Expand revenue channels by reselling Cloud services Improve regulatory compliance Other (Please specify) 1% 13% 12% 21% 20% 28% 27% 33% 47% 45% 52% 0% 10% 20% 30% 40% 50% 60% Slide 11

12 Drivers and Expectations The leading Drivers Reduce the operational and capital costs of IT management A big advantage for SaaS Especially valuable for SMB to out source IT Improve IT service quality Speed of implementation Reduction of management issues Real-time scaling and power Slide 12

13 Decision Factors Which are your organization s top decision factors when choosing a cloud computing technology or provider? Select 3. Security, risk, or compliance abilities 54% Management or performance abilities Ease of implementation Low cost Ease of use 42% 36% 35% 31% Extensibility and Integration features Specific features Broad feature set Support agreements Current relationship with the vendor or provider 26% 22% 21% 17% 16% 0% 10% 20% 30% 40% 50% 60% 70% Slide 13

14 Decision Factors When it gets right down to it. Security, risk or compliance abilities IT get involved and helps make the decision Not all data is right for a SaaS environment Cell level security is a must Management or performance abilities IT still has to run SaaS projects Ability to configure and make changes Monitoring and reporting Ease of implementation Key value proposition Data integration and application integration Slide 14

15 Barriers to Success Which problems has your org. experienced, or does your organization expect to experience, with cloud computing? Select all Human/political issues (no management support, difficulty with provider, unclear responsibilities, etc.) Difficulty or cost of implementation, migration, or integration Lack of flexibility and agility (e.g. fixed offerings, vendor lock-in, no API standards, etc.) Inadequate tools or processes for effective IT management Increased operational costs of IT management Degraded or uncertain regulatory compliance posture Degraded security and/or risk outcomes Increased capital costs of IT management Poor service quality (more downtime, slow response, missed SLAs, etc.) None of the above Limited or non-existent backup, disaster recovery, or business continuity Other (Please specify) 1% 25% 25% 25% 23% 21% 21% 18% 17% 14% 35% 40% 0% 10% 20% 30% 40% 50% Slide 15

16 Cloud ROI Overall, has cloud computing delivered real, measurable cost savings to your organization? Yes 76% Don t know 15% No 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Slide 16

17 Cloud ROI What percentage of IT operational costs (e.g. staff, maintenance, administration) has your organization saved by using cloud computing? It has actually increased our operational costs 3% No saving 1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % 3% 4% 0% 1% 0% 6% 9% 23% 25% 27% 0% 5% 10% 15% 20% 25% 30% Slide 17

18 Cloud ROI What percentage of IT capital costs (e.g. hardware, software, facilities) has your organization saved by using cloud computing Increased our operational No saving 1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% % 1% 4% 4% 5% 11% 15% 18% 18% 24% Slide 18

19 Cloud ROI What percentage of your organization s end user population relies on cloudbased applications today? None 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% % Don t Know 2% 3% 3% 3% 4% 5% 8% 13% 14% 12% 16% 18% 0% 5% 10% 15% 20% Sample Size = 159 Slide 19

20 Cloud ROI What percentage of your organization s end user population will rely on cloudbased applications within 2 years? None 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% % Don t Know 1% 2% 3% 6% 6% 8% 9% 11% 13% 13% 14% 15% 0% 5% 10% 15% 20% Sample Size = 159 Slide 20

21 SaaS BI Vendors Data as a Service Data Integration for SaaS CPM as a Service Pure Play Traditional with SaaS Slide 21

22 Wrap up SaaS Business Intelligence Hot or Not? Growing adoption (EMEA Market Growing) Maturing feature sets Compelling ROI Helps BI adoption Growing vendor community SaaS is definitely a HOT business intelligence technology!! Slide 22

23 Social Data and Analytics for the Enterprise

24 Social Analytics in the Enterprise Social Business Intelligence Social Data Analytics Social Media/ Networking Monitoring Slide 24

25 Social Analytics in the Enterprise Social Analytics in the Enterprise. There are three sides to the story (opportunity) Social Business Intelligence Utilizing BI systems that leverage the same tools we encounter on sites like Facebook and Twitter that facilitate collaboration and interaction across the enterprise. Social Media/Network Monitoring Listening platforms that allow us to monitor trends, keywords, brands and sentiment in a near real-time environment. Leveraging the transaction style information that comes from social media and social networking sites. Social Data Analytics Leveraging the data from social media and networking sites into enterprise systems to better serve customers and processes Slide 25

26 Social Data Analytics Social Data Analytics Combines social media and networking data and the systems used for business intelligence and analytics. Adds powerful new data to decision systems Poses significant data integration issues Opens new opportunities for embedded analytics within operational applications Most leading BI vendors are working to seamlessly integrate social data as a data type. Startups like VeloGraf Systems are entering the market. Slide 26

27 Social Landscape Where are they social Slide 27

28 Top Social Sites Site Unique Monthly Visitors Facebook 127,557,110 Myspace 62,956,810 Twitter 28,638,357 Mylife 15,828,820 LinkedIn 14,387,383 Classmates 12,404,475 Ning 6,861,203 LiveJournal 5,968,778 Last.FM 5,321,948 Tagged 3,770,131 Compete.com September 19 th 2010 Slide 28

29 Twitter by the numbers 6 Billion API calls per day 70,000 calls per second 90 million tweets per day 800 Tweets per second 1 Tweet = 200 bytes for 140 characters 800 Tweets per sec =160KB per sec = 9MB per min = 12GB per day Total data produced per day 8TB = 100 MB per sec Comparison NYSE produces 1TB per day. 150 Million Registered users TechCrunch 9/17/2010 Slide 29

30 Valuable Data for the Enterprise

31 Social Media and Networking Data Types Data types vary structured, unstructured and semi-structured Identity and transparency vary by platforms and source Names versus pseudonyms Public, filtered, private Social data categories Sentiment Location Behavioral Image / video based Relationship / social graph Sources API s Slide 31

32 Sentiment Data Sentiment data refers to the positive and negative opinions, ratings, conversations, images and videos that can be found on the web on just about any subject, brand or interest. Identity both real and not Transparency varies Structured and unstructured Eopinions.com, Yelp.com, Qype.com, Amazon Reviews etc. Generally requires specialized monitoring applications or advanced analytics. Slide 32

33 Sentiment Data Use Case Starbucks and Advanced Social Analytics Case New product launch Flavored Coffee Data Sources Blogs, Twitter, Niche Forum discussions Timeline Immediate near real-time Vocabulary Age Gender Region Price Sensitivity Feature breakdown Combined social data with sales revenue by region, reported quickly on success of product launch and drove positive revenue Slide 33

34 Social Graph Data Social graph data is gaining traction in the enterprise with marketing departments and even in Governance, Risk an Compliance sectors. What is a social graph and why should I care? Identity - often real name and highly identifiable Transparency often available from host community via API or as a paid information service. Structured and easy to integrate Slide 34

35 Social Graph Use Case A credit card company is using social graph data to determine in its credit card approval process Insurance companies are utilizing social graph data to determine which claims to further investigate Insurance company used Facebook data to discontinue a disability claim Utilization of location and social graph data to determine your health risk Badges, restaurants and time data Slide 35

36 Summary Social Data and Analytics Still an emerging market Difficulties persist around API strength Data integration size and speed still an issue All types of data present unique insight into industry's, customers and communities Software companies only just starting to add features Recent study showed 14% of CIO s are planning for or experimenting with social data analytics It coming to an enterprise near you.. Slide 36

37 Thank you for attending today s presentation For more information on Enterprise Management Associates, please go to or call

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