TDWI Las Vegas Company Update Data Migration Suite Launch Don Tirsell, Sr. Director, Product Marketing Bo Lungulescu, Principal, Solution Marketing 1
Broader Data Integration Powers Record Growth Summary of Key 2007 Accomplishments Financial $391m rev. 2007, up 21%. 3 rd consecutive year with 20% or more growth All time record revenues in Q4 2007 at of $113.9m first time ever over $100m 24% total quarterly rev. year on year growth All-time record license rev. at $54.9m for Q4 International = 37% of license revenue Organization Data Quality central to INFA plans for Broader Data Integration Hiring industry veterans in every department to support DQ including sales, education, professional services and support Dedicated business unit for data quality with recently hired VP of R&D Growing data quality expertise across all geographies; DQ training for all sales Customers 79 new customers added in Q4, 2007 Total customers 2,988 Maintenance renewals at record levels ~95% 77% have, or plan to use INFA as enterprise standard* 45% of our deals over $100K are Broader DI Recent wins Volkswagen, BNSF Railway, Johnson & Johnson, Nissan, KPN, Dept of Defense USA Product Informatica v8.5 (PC, PWX, DQ) (Q4 2007), the leading platform for Broader Data Integration Fastest growing leader in the Data Quality category Complex Data Exchange enabling B2B data exchange Informatica OnDemand opening new opportunities in cross-enterprise data integration *2007 Independent Customer Survey (TNS Prognostics) 2
Geographic Expansion: Direct Operations in 22 Countries Coverage in 78 Countries 3
Major International Wins in 2007 4
Data Migration Suite Launch Bo Lungulescu Principal, Solution Marketing 5
Agenda Data Migration A Key Prerequisite for IT Projects Showstoppers to Successful Migration Projects Informatica Data Migration Suite Customer Stories 6
Importance of Data Migration Increasing DM A Fundamental Component of Many IT Projects Application Implementation Application Consolidation Application Upgrade Data Migration M&A Integration Legacy Retirement Outsourcing 7
Substantial Growth in Data Migration Activity DM Budget ($M) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 5,055 Projected Data Migration Expenditure 6,728 6,116 5,560 7,401 CAGR 10% YOY 8,141 2,000 1,000 0 2007 2008 2009 2010 2011 2112 Philip Howard Research Director www.bloor-research.com September 2007 8
Time and Cost Overruns Are Substantial 84% of Migrations Fail to Meet Expectations More expensive than planned 37% of projects are over budget Average cost overrun > 30% More time consuming than planned 67% of projects delivered late Average delay > 40% Migration projects are high risk, resource intensive Today, there is little use of tools & automation Philip Howard Research Director www.bloor-research.com September 2007 9
Migration Is Not Just About Moving The Data It s About Making the Data WORK! Typical Assumptions Few Source systems Static Sources Specific Data Formats All Data Available Documented System Interfaces Valid Data Many More Source systems Source Continues to Change Data in unknown formats Needed Data is missing Unknown System Interfaces Poor Data Quality The Hidden Truth 10
Tools & Methodology Improve Success Rate Informatica Can Help Address Fundamental Issues Project Planning - Philosophical Approach - Analysis & scoping Data Quality - Role of data quality Collaboration - Cross Functional - Team Based Tools & Software - Data Access & Movement - Reusability & Impact Analysis Expertise - First time project - Migration COE Traditional Approach Big-bang conversion No best practices Testing with fake data Underestimated complexity Garbage in, garbage out Little SME involvement Specifications incomplete Decentralized exchanges (Excel) Complex scripting Brittle code, no reuse Lack of dependency analysis Limited upfront design Little institutional knowledge Informatica Solution Velocity Migration Methodology Iterative, move data early & often Use real, production data Informatica Data Explorer Informatica Data Quality Reusable / rules based Reference Table Manager Data Quality Assistant Team based development Prepackaged connectors Codeless, reusable logic Exception processing, validation Packaged IPS Offerings Specification, template driven Hundreds of migration customers 11
Migration Challenge - Project Planning VMM: A Framework for Successful Data Migrations Traditional Approach big bang, no upfront analysis Access Extract / Transform Load Informatica s Iterative Approach End-to-end data migration platform for faster, fewer iterations Access Analyze Cleanse Extract / Transform Validate Load VMM Conversion Philosophy: Convert early, often with real, production data 12
Migration Challenge Data Quality - Profiling IDE - Investigate Source Systems Prior to Migration Rapid analysis of data in multiple source systems Catalog details of each data source in repository Tables, columns, domains Data structures (inferred & documented) Data completeness & redundancy High-level DQ status & issues Tag data and document instructions for follow-on processes Target Mapping information Assess actual state of data and identify issues 13
Migration Challenge Data Quality Validate, Cleanse, De-Duplicate Key to Data Migration Informatica Data Quality Applications Discover Analyze / Audit Master Data Content Mainframe Report Data Quality Metrics Build Data Quality Rules Databases Deploy Rules Interactive/Batch /Real Time Flat files Scorecards Reports Cleansed Data 14
Migration Challenge Collaboration Reference Table Manager - Purpose-built for Migrations The RTM empowers business subject matter experts to directly manage reference data to accelerate data migrations Source Data Continued re-analysis and redesign Target Sales System Customer Database Analysis Specifications Build Interface ETL routines Test SAP Bus. App Legacy ERP Valid & Default Values Maintenance Cross Reference Completion Raw Data Creation 15
Migration Challenge Tools & Software INFA Platform Automates Entire Migration Lifecycle Audit, Monitor, Report Ensure data consistency, perform impact analysis and continuously monitor quality Data Explorer Data Quality Access Discover Cleanse Integrate Deliver Any system in batch or real-time Search and profile any data from any source Validate, correct and standardize all data types Transform and reconcile all data types Provide right data, at the right time, in the right format PowerExchange PowerCenter Develop & Manage Develop and collaborate with common repository and shared metadata 16
Migration Challenge Tools & Software - IMM Understand Impact Before Migrating Data Impact analysis increases insight into complex data relationships Enables users to understand data relationships before executing a migration Advanced search, filtering and personalization capabilities Built-in annotations and links to supporting documentation provide additional context Robust integration metadata catalog, with direct connectivity to enterprise applications and mainframe systems Integrated profiling results for additional insight into data 17
Migration Challenge Expertise Informatica De-risks and Accelerates Migration Projects Informatica Offers End-to-end Migration Services IPS Data Migration Packages Data Migration Jumpstart Package Data Migration Jumpstart + Mentorship Package Full Data Migration Delivery Global Education Services Product and Methodology Focuses elearning and Classroom Based 18
The Data Migration Suite Key to a Comprehensive Migration Solution Informatica Data Migration Solution Proven Methodology Informatica Velocity Migration Methodology (VMM) Data Migration Suite PowerCenter PowerExchange Informatica Data Explorer Informatica Data Quality Reference Table Manager End-to-End Migration Services Informatica Professional Services Informatica Global Educational Services Preferred ISVs / Partners 19
The Data Migration Suite Simple Packaging & Flexible Licensing Bundled solution, single SKU Term Based Offering 6 months / 12 months / 18 months $336K - 6 (six) months term license (List over $1.1M) 20
Wipro s DM Shared Services Offering Worldwide Scalability for Informatica s DM Solution Wipro has standardized on the Informatica Data Migration Suite as the platform for providing data migration services to its customers worldwide. Wipro s Data Migration Shared Services Offering 1 st to market with a global shared services approach to data migration, supported by Informatica software (data access, quality and conversion) One of just 15 SAP Global Services Partners Extensive track record supporting migration projects 1,200 consultants trained in the use of Informatica products worldwide Wipro Engagement Model Shared factory model for offshore development & testing (SW/HW/people) Reuse of assets and patterns for expedited development and reduced risk Leverage Informatica Data Migration Suite for on-premise (dedicated) client production and rollout. 21
Fastest Growing Use of Informatica 63% of Customers Intend To Use INFA for Migration Planned Use of Informatica Products 100% 94% 90% 80% % of Customers 60% 40% 20% 63% 49% 45% 40% 27% 28% 24% 21% 26% 25% 25% 18% 2005 2007 0% Warehousing Migration Sync/Replication Consolidation MDM/Hubs Cross Enterprise Compliance Data Services (SOA) SAAS Source: 2005 & 2007 Independent Customer Survey (TNS Prognostics) 22
Informatica Data Migration Customers Healthy Business So Far - 2007 Best Year To Date Multi-phase SAP ERP solution implementation to replace 7 legacy systems Application 40% reduction in costs (vs previous hand-coded Implementation DM) 30% reduction in time Migrated core business operations from IBM OS/390 mainframe environment to an open UNIX infrastructure Migrated 57 TB of mission-critical data Handled complex Korean double-byte character Legacy data Retirement Estimated $20.8 million USD saving over four years Consolidate customer data management systems following mergers of ntl (4M customers), Telewest (1.6M customers), and Virgin Mobile (2M customers) Application Leverage immediate advantages of M&A Consolidation Aggressive go-live (Implemented in a rapid 7 months) Consolidated 20 billing and customer data systems on AS/400 23
Informatica Data Migration Customers Healthy Business So Far - 2007 Best Year To Date Migrated multiple legacy ERP systems to single SAP instance Legacy Lowered TCO; Realized ROI in 3 years Retirement Reduced time, cost, and risk of SAP implementation Migrated data on 275,000 customers from acquired competitor CILCORP into core Ameren systems M&A Achieved single view of customer information Integration Reduced data migration costs by 30% Cut load times by 20% Integrated mission-critical data from two acquisitions Executed large-scale integration rapidly with Application limited staff Eliminated payment of duplicate invoices Consolidation Streamlined execution of business processes across units 24
Informatica Data Migration Offering Summary of Key Takeaways Data Migration Common Requirement for Many IT Projects Data Migration Challenges Are Underestimated Software and Best Practices can Ensure Success Informatica s Data Migration Suite Accelerates Conversions Informatica s Velocity Migration Methodology Reduces Project Risk Hundreds of Successful Migration Customers Wipro & Informatica partner to combine best-in-class migration tools and expertise with a cost effective off-shore delivery model 25
26 Additional Data Migration Customer Stories
Virgin Media Consolidates Post Merger Customer Data for Profitable Synergy KEY BUSINESS IMPERATIVE Merger & Acquisition IT INITIATIVE Application Consolidation DATA INTEGRATION PROJECT Data Consolidation Consolidate customer data management systems following mergers of ntl (4M customers), Telewest (1.6M customers), and Virgin Mobile (2M customers) Leverage immediate advantages of M&A THE CHALLENGE Consolidate 20 billing and customer data systems on AS/400 Extremely aggressive go-live timeline INFORMATICA ADVANTAGE Near-universal data access Cost-effective scalability Proven track record with Telewest on reporting project RESULTS/BENEFITS Reduced customer data sources from 20 to 1 Delivered 1.5bn NPV (projected by 2009) Implemented in a rapid 7 months 27
Informatica Gives Cooper Standard a 3 Year ROI with SAP Migration ref123 IT INITIATIVE Legacy Retirement DATA INTEGRATION PROJECT Data Migration KEY BUSINESS IMPERATIVE Modernize Business & Reduce IT Costs Migrate multiple legacy ERP systems to single SAP instance Accommodate recent M&A growth THE CHALLENGE Legacy ERP systems: VSAM, SQL Server, Oracle, and J.D. Edwards 12 Business Planning and Control System databases in 60 plants and 20 Legacy Retirement countries Small IT staff INFORMATICA ADVANTAGE Native access to mainframe data Unicode support for international systems Microsoft DTS replaced Phased deployment of data quality solution RESULTS/BENEFITS Realized ROI in 3 years Reduced time, cost, and risk of SAP implementation Minimized expensive hand-coding Lowered total cost of ownership 28
Ameren migrates legacy data to capitalize on M&A advantage with smooth customer transition ref123 KEY BUSINESS IMPERATIVE IT INITIATIVE Application Consolidation Merge & Acquire Migrate data on 275,000 customers from acquired competitor CILCORP into core Ameren systems Achieve single view of customer information DATA INTEGRATION PROJECT Data Consolidation THE CHALLENGE Hand-coding COBOL modules costly, slow, not easily repeatable Data integrity issues INFORMATICA ADVANTAGE Repeatable, automated migration process Flexible performance tuning Accenture SolutionsWorks RESULTS/BENEFITS Reduced data migration costs by 30% Cut load times by 20% Delivered reliable, high quality converted data Improved customer service, marketing, field operations 29
Anadarko Petroleum Streamlines SAP Data Migration and $21B in Company Acquisitions ref123 KEY BUSINESS IMPERATIVE Modernize Business & Reduce IT Costs IT INITIATIVE Application Consolidation SAP Migration DATA QUALITY PROJECT Data Migration Maximize return and reduce risk in legacy data migration to SAP and integration of data from $21B in acquisitions of Kerr-McGee and Western Gas Implement enterprise-wide data integration platform to to improve financial and operational performance THE CHALLENGE Migrate large volumes of legacy data to SAP Integrate mission-critical data from two acquired companies Eliminate millions of duplicate records to avoid overpayments Execute large-scale integration rapidly with limited staff INFORMATICA ADVANTAGE User-defined data quality rules, monitoring, and metrics Metadata tags to enable data visibility for financial and regulatory reporting Codeless environment to reduce IT developer costs Integration Competency Center for best practices and reuse RESULTS/BENEFITS Capitalized on value of SAP implementation and company acquisitions Eliminated payment of duplicate invoices Streamlined execution of business processes across multiple units 30
CEMEX improves business agility & data accuracy with migration to unified data infrastructure ref123 KEY BUSINESS IMPERATIVE IT INITIATIVE Legacy Retirement DATA INTEGRATION PROJECT Data Migration Modernize Business & Reduce IT Costs Standardize global data infrastructure to migration J.D. Edwards and legacy data to SAP Synchronize data in near-real time through 150 systems interfaces THE CHALLENGE 30+ J.D. Edwards and legacy applications Project to deploy single global SAP instance Need for near-real time data synchronization via 150 interfaces INFORMATICA ADVANTAGE Certified SAP integration IDOCS, ABAP, ALE, BAPI, DMI 75% component reuse to accelerate deployment across multiple projects Support for data validation and MDM RESULTS/BENEFITS Realized millions of dollars in ROI Improved developer productivity by 80% Enabled end-to-end data integrity Improved performance with unified global SAP data infrastructure 31
COPIC migrates legacy data for productivity, cost savings, and improved access to strategic data ref123 KEY BUSINESS IMPERATIVE Modernize Business & Reduce IT Costs IT INITIATIVE Legacy Retirement DATA INTEGRATION PROJECT Data Migration Migrate off legacy mainframe system to client/server Build data warehouse to improve operational and strategic reporting on risk management, claims, and policy data THE CHALLENGE Poor quality data in mainframe system Limited resources and time pressures Subpar reporting and analysis on key business data INFORMATICA ADVANTAGE Ease of development Accessible metadata Built-in data cleansing Model-driven tools for iterative development Mappings reusable across migration and DW projects RESULTS/BENEFITS Completed project 12 months ahead of schedule Built in data quality that solved 80% of quality problems Saved 50% over custom solution 32
Southern Co. gains consolidated view of operations by migrating 15 yrs of legacy data to a single hub ref123 KEY BUSINESS IMPERATIVE IT INITIATIVE Legacy Retirement DATA INTEGRATION PROJECT Data Migration THE CHALLENGE Merge & Acquire Migrate data from outdated IBM IDMS databases and legacy applications at three nuclear power plants INFORMATICA ADVANTAGE RESULTS/BENEFITS IDMS technology unsupported and expensive to maintain Repeatable, automated migration process Support for new workflow and document management system Reduced risk, expense of major data migration Saved $250K by reducing IT project staff from 18 to 6 Saved 25% migration time and achieved flexible data access 33