When SaaS and On-Premise BI Collide:

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1 When SaaS and On-Premise BI Collide: The Pros and Cons of Moving BI to the Cloud Wayne Eckerson Director, TDWI Research November 19, 2009

2 Sponsor

3 Agenda Cloud-based computing Terminology Types Architectures Benefits BI in the Cloud Applications Platforms and Infrastructure

4 Generally speaking.. Cloud computing Software-as-a-service (SaaS) On Demand Commercial hardware or software services that you access over the internet via a Web browser.

5 Virtualized services Cloud computing hides the underlying hardware and software used to deliver the service

6 Solutions Stack Types of Cloud-based Services Applications Software-as-a-service Salesforce.com Platform (IDE, OS/API, Runtime) Platform-as-a-service DW-as-a-service Infrastructure (Server, Database, Storage) Infrastructure-as-a-service Amazon EC2

7 Solutions Stack BI in the Cloud Applications Software-as-a-service PivotLink for Retail Platform (IDE, OS/API, Runtime) Platform-as-a-service PivotLink for Analytics Infrastructure (Server, Database, Storage) Infrastructure-as-a-service - DW as a service - Custom

8 On Demand Pay and go No on-premise SW to install Just pay and go Pay as you go Subscription (per user) Usage fees Free trial SERVICE Application service Platform service Infrastructure service PAYMENT Monthly subscription (per user) Subscription and/or usage fee Usage fee

9 Types of Clouds Public cloud Commercialized cloud services Provision servers or applications on demand E.g. Amazon EC2 Private cloud Use of cloud in an internal data center Virtualization and grid computing

10 LAN VPN VPN SSL SSL SSL SSL Hosting Architecture On Premise Single Tenant (ASP Model) Single Tenant Multi-Tenant Users Users Users Users Users Users Users Virtualization Layer Application Application Application Application Application Application Virtualization Layer Server Server Server Server Server

11 Cloud vs On Premise CLOUD Doesn t require IT to set up and maintain servers Doesn t require capital expenditure Can deploy quickly Software upgrades are automatic and unobtrusive Can expand number of users and processing capacity on demand Can terminate service at any time ON PREMISE Requires IT resources to set up and maintain servers Requires capital expenditure Requires IT to purchase servers, install, and configure sofware Software upgrades must be manually applied and often disrupt existing applications Must expand server capacity if adding lots of users and rewrite license agreement. Must continue to pay annual maintenance fee as agreed upon in contract.

12 Things to Consider Data loading Data security SLAs Integration Pricing ROI Vendor viability

13 Cloud Use Cases SMB and Departments Data mart solutions/applications Large enterprises Development environments Test environments Prototype or demonstration Analytical sandboxes Temporary application

14 How familiar are you with cloud computing? Not very familiar 49% Somewhat familiar 42% Very familiar 9% Based on 183 BI professionals attending TDWI s World Conference, November, 2009.

15 How much of your BI solution runs in the public cloud? All 0% Most Half 2% 3% 0% 4% Today In 3 Years Some 13% 46% None 47% 85% Based on 183 BI professionals attending TDWI s World Conference, November, 2009.

16 What portion of your BI solution runs in the cloud? Source data ETL 4% 4% 3% 7% Data marts 2% 7% In 3 Years BI tools 5% 12% Today Reports 4% 14% Hardware 3% 8% Based on 183 BI professionals attending TDWI s World Conference, November, 2009.

17 Size of company (revenues) Size of companies deploying BI in the cloud TODAY Under $50M $50M to $100M 8% 17% $100M to $500M $500M to $1B 4% 15% 25% All of our BI solution Most of our BI solution Half of our BI solution $1B to $10B 11% Some of our BI solution $10B to $50B 9% $50B+ 13% Based on 183 BI professionals attending TDWI s World Conference, November, 2009.

18 Size of company (revenues) Size of companies deploying BI in the cloud IN THREE YEARS Under $50M 9% 14% 29% $50M to $100M 67% $100M to $500M $500M to $1B 6% 31% 60% All of our BI solution Most of our BI solution Half of our BI solution $1B to $10B 50% Some of our BI solution $10B to $50B 9% 58% $50B+ 71% Based on 183 BI professionals attending TDWI s World Conference, November, 2009.

19 Full-time BI staff Size of BI teams deploying BI solutions in the cloud TODAY Less than 1 17% 1 to 2 5% 14% 3 to 5 6% All of our BI solution Most of our BI solution 6 to 10 4% 9% Half of our BI solution Some of our BI solution 11 to 25 14% % Based on 183 BI professionals attending TDWI s World Conference, November, 2009.

20 Full-time BI staff Size of BI teams deploying BI solutions in the cloud IN 3 YEARS 46% 26+ 4% 4% 11 to 25 5% 41% 6 to 10 15% 35% 3 to 5 64% 1 to 2 7% 43% Less than 1 57% Based on 183 BI professionals attending TDWI s World Conference, November, 2009.

21 BI SaaS Reasons to Adopt 0% 10% 20% 30% 40% 50% Low cost approach Faster development time Business not technology focused Easy maintenance On-demand capacity Lack of IT budget/resources Reduce dependence on IT Minimize risk Lack of BI/DW skills Project was not an IT priority Other Claudia Imhoff and Colin White, BI SaaS, BeyeNetwork Research, respondents.

22 SaaS BI makes sense when You don t have IT resources You don t have capital to spend You need a solution quickly You can t estimate capacity or usage The application fits your needs closely Data volumes are manageable

23 ` ` Shaklee Case Study Aligning a Global Business with On-demand Business Analytics Ken Harris, CIO November 2009 CONFIDENTIAL Copyright, PivotLink, Inc. 2009, all rights reserved.

24 Background ` CIO Ken Harris 25 years of CIO experience: Shaklee, Gap, Nike, PepsiCo Multiple BI/DW implementations One goal: Enable Shaklee to make datadriven decisions Shaklee #1 natural nutrition company in the US Mission: To enable a healthier life for everyone and a better life for anyone 750,000+ Members and Distributors Mid-sized 50 year-old company CONFIDENTIAL Copyright, PivotLink, Inc. 2009, all rights reserved.

25 Business Challenge ` Massive amounts of data to manage Significant number of internal and external users desiring access Difficult to access data in a meaningful way Costly data warehouse Limited IT resources to maintain DW Enable business users to collaborate globally Real-time analysis CONFIDENTIAL Copyright, PivotLink, Inc. 2009, all rights reserved.

26 Business Visibility `Challenge Marketing Campaign Efficiency What is selling and to whom? Forecast vs. Actual Average Sale Per Customer Financ e Product Marketing Distributors Customers CONFIDENTIAL Copyright, PivotLink, Inc. 2009, all rights reserved.

27 Solution Development ` Evaluated multiple potential solutions both in-house and SaaS-based. Chose PivotLink because: Quick time to value Simplicity of integration Implementation and ongoing processing and support cost They passed our prove-it 3 impossible queries, 1 quarter of data 30 days Highly Secure SAS 70 Type II Certified CONFIDENTIAL Copyright, PivotLink, Inc. 2009, all rights reserved.

28 Benefits and Outcomes ` We rely on PivotLink to make sure our data is available 24x7, and not every vendor understands what that takes. In the 3+ years of working with the solution, PivotLink has consistently delivered on the service and support model Rapid implementation delivered in 120 days Easy low-cost maintenance Real-time, global data access without silos Accurate and timely insight into customer and product performance PivotLink has been adopted by multiple users in multiple functional areas for multiple applications CONFIDENTIAL Copyright, PivotLink, Inc. 2009, all rights reserved.

29 Questions??

30 Contact Information If you have further questions or comments: Wayne Eckerson, TDWI Ken Harris, Shaklee

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