Open Source Adoption and Use in the Real World

Transcription

1 Open Source Adoption and Use in the Real World

2 Summing up data warehousing & business intelligence: Transaction processing is a commodity. Analysis is not Smooth Chunky Margin of error: +/- 100 points

3 Cautionary Tale: Visions of Yesterday s Future

4 Cautionary Tale: Visions of Yesterday s Future

5 Cautionary Tale: Visions of Yesterday s Future

6 Cautionary Tale: Visions of Yesterday s Future

7 Prediction is very difficult, especially about the future. Niels Bohr

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9 Where the analysts are on the adoption curve Open source is not worth paying attention to. A Gartner analyst I don t want to make too much fun of, January 2006

10 The future is the present projected. Aldous Huxley

11 What is the state of the enterprise software market today?

12 Any Industry This Big is Maturing Annual US software sales Source: US Dept. of Commerce March 2009 Mark R. Madsen

13 Evolution of the Software Market 1987 March 2009 Mark R. Madsen Source: John Prendergast (data: Bloomberg, Factset)

14 Evolution of the Software Market 1997 March 2009 Mark R. Madsen Source: John Prendergast (data: Bloomberg, Factset)

15 Evolution of the Software Market 2007 March 2009 Mark R. Madsen Source: John Prendergast (data: Bloomberg, Factset)

16 The DW & BI Software Market Today According to IDC, the analytics and data warehouse software market is growing at 10.3% CAGR 17,386 19,342 21,408 23,601 26,001 28,682 31, March 2009 Mark R. Madsen

17 How to predict like an analyst.

18 Moore s Law via the Lens of the Industry Analyst CPU Speed Time

19 Moore s Law: Power Consumption Power Use Time 2019

20 Moore s Law: Heat Generation CPU Temp Time 2019

21 Conclusion #1: Your own nuclear reactor by 2019 Power Use Time 2019

22 Conclusion #2: You will need a new desk in 2019 CPU Temp Time 2019

23 If the automobile had followed the same development as the computer, a Rolls-Royce would today cost $100, get a million miles per gallon, and explode once a year killing everyone inside. Robert Cringely Reality Anything Time

24 The Real State of Enterprise Software? March 2009 Mark R. Madsen

25 Software Revenue = Corporate IT Cost IT costs as a percent of equipment investment March Source: US Dept. of Commerce Mark R. Madsen

26 Enterprise Software Economics The enterprise software model is breaking down. Some facts: 70% - 80% of sales & marketing is for new sales 76% of new license revenue goes to sales & marketing Maintenance makes up 45% of revenues and this number is increasing 75% of R&D for mature products is for updates, bug fixing, and nonrevenue enhancements Maintenance and support is becoming the biggest factor is software company profitability. March 2009 Mark R. Madsen Sources Godman-Sachs, Tech Strategy Partners, Forrester

27 BI is Entering Mainstream Adoption This means the BI market is entering a period of commodification: demand up, supply up, prices and margins down. Door open for OSS. Reporting & Analysis Databases Data Integration Predictive analytics Platforms March 2009 Mark R. Madsen

28 Technology Priorities in IT Source: CIO Insight Informing the business trumps automating the business. This held true for three years in a row. March 2009 Mark R. Madsen

29 Spending Priorities in IT In 2007 and 2008 IT budgeted most new project money for databases and business intelligence. Sources: CIO Insight March 2009 Mark R. Madsen

30 Open Source Disruption Which sector of the industry is most vulnerable to disruption by open source in the next five years? 1. Web publishing and content management 2. Social software 3. Business Intelligence Source: North Bridge Venture Partners March 2009 Mark R. Madsen

31 Signs of Maturity March 2009 Source: Open Source Index 2008, Red Hat, Inc. Mark R. Madsen

32 Use of OSS BI/OLAP tools worldwide March 2009 Mark R. Madsen

33 Open Source BI Use Looks Like Proprietary BI Use March 2009 Mark R. Madsen

34 Rationale When Evaluating OSS March 2009 Mark R. Madsen

35 Good News: It Works March 2009 Mark R. Madsen

36 State of Adoption & Use of Open Source BI None Considering Completed Evaluation Using in Production 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 33% 21% 18% 12% 9% Database / DW platform Reporting and OLAP Data integration and ETL Embedded / application reports Advanced analytics

37 Data size for all survey respondents including those using proprietary databases. 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 45% 22% 81% of the sample < 1TB 7% 7% TB 5 25 TB >25 TB 9% 7% 3%

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39 Why did BI software evaluations fail? Missing or incomplete features 56% Scalability problems 41% Lack of available consulting 27% Difficulty integrating into environment 26% Required more expertise than expected 25% 0% 10% 20% 30% 40% 50% 60% March 2009 Mark R. Madsen

40 There s still work to be done

41 Data is the future

42 Questions? When a new technology rolls over you, you're either part of the steamroller or part of the road. Stewart Brand March 2009 Mark R. Madsen

43 We Could Use Your Help If you evaluated open source software for any aspect of the BI or data warehouse environment, please fill out the online open source adoption survey at The survey is running until May 30, March 2009 Mark R. Madsen

44 Creative Commons Thanks to the people who made their images available via creative commons: highway storm.jpg - firemen not noticing fire.jpg - godzilla_vs_bhudda_big.jpg - acapluco_cliff_divers_cc.jpg - March 2009 Mark R. Madsen

45 Creative Commons This work is licensed under the Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. To view a copy of this license, visit or send a letter to Creative Commons, 543 Howard Street, 5th Floor, San Francisco, California, 94105, USA. March 2009 Mark R. Madsen

46 MySQL Conference & Expo Bruce Belvin

47 Company Mission Monolith Software Solutions is dedicated to providing scalable business intelligence for multi-unit QSR restaurant operations.

48 Open Source Components SUSE Linux Enterprise

49 Overview disparate data sources 4500 users Complex organizational structures / hierarchy Multi tenant environment Segregated data bases per individual organization Same data used for various business functions Granular data

50 Vertical Landscape I. Fragmented ownership II. Legacy hardware/various data sources III. Hesitancy to adopt Open Source IV. Small margin industry

51 Why SaaS Works Subscription business model fits segment price pressures Unlimited users solves user heavy structure Initial price / on going maintenance Low barrier to entry Pay as you go for additional integration/modules

52 Keys to SaaS Success Educate multiple decision making groups within organization Utilize support from technology partners and open source community Be aware of impact on IT/political past decisions Prove open source solution Develop silver bullet strategies to over come open source perceptions

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54 Background President / COO of Consorte Media Formerly CTO of BlueLithium, Adteractive, Fathom Online, and Cybernautics 13 years as a technical executive in the online advertising industry 54

55 Scope of Online Advertising Dynamically builds pages for visitor using predictive models Delivers the right ad to the right person Collect Metrics for performance measurement and analytics 55

56 Business Challenges Web API Internal Applications Revised Models Analytics Data Mining Model Development Performance Reports 56

57 Our Stack CentOS MySQL BIRT Hibernate Apache Camel Kettle Hadoop

58 Best Practices Use analytics to design and test advertising models using only relevant dimensions Gather and determine business requirements before embarking on the journey Build an infrastructure plan that will support the data collection and analytics platform 58

59 The Role of Open Source Several important innovations in data processing have been driven largely by online advertising Industry needs software and tools to match pace of innovation and fastchanging business climate Proprietary software vendors unable to respond quickly enough to support the industry Open Source has provided innovative solutions and flexibility to support new business requirements 59

60 Jay Webster President and COO ext 248

61 Q&A: Bruce Belvin, Jay Webster, Mark Madsen

62 We Could Use Your Help If you evaluated open source software for any aspect of the BI or data warehouse environment, please fill out the online open source adoption survey at The survey is running until May 30, March 2009 Mark R. Madsen