OCTOBER 18,2016 SAN FRANCISCO BAY AREA, CA #DenodoDataFest RAPID, AGILE DATA STRATEGIES For Accelerating Analytics, Cloud, and Big Data Initiatives.
Apr 12, 2017
O C T O B E R 1 8 , 2 0 1 6 S A N F R A N C I S C O B A Y A R E A , C A
#DenodoDataFest
RAPID, AGILE DATA STRATEGIESFor Accelerating Analytics, Cloud, and Big Data Initiatives.
ROI Justification in Data Virtualization
Paul Moxon
Head of Product Management, Denodo
Lakshmi Randall
Head of Product Marketing, Denodo
Twitter: @LakhmiLJ
Agenda
1.The Components of ROI
2.Lower TCO with Data Virtualization
3.Business Impact of Data Virtualization
4.Summary
3
ROI helps you decide whether to go ahead and fund a
project. On the other hand, TCO helps you decide how
you’re going to implement the project – that is, which
technologies or products you should use.
The Components of ROI
ROI = (Benefits – Costs)/Costs
• Goal – Get maximum benefits at minimum cost!
• Look at costs
• Where can Data Virtualization reduce costs? What sort of reductions or
efficiencies should I expect?
• Look at example business impacts
• Varied examples of
5
Lower TCO with Data Virtualization
6
Areas of Cost Reduction With Data Virtualization
1. Development and Test cost savings
2. IT Operations cost savings
3. Non-IT cost savings
7
Savings include:
• Faster development and test cycles
(iterative, collaborative
development)
• Reuse of Data Services
• Better – and earlier – engagement
with business stakeholders
• Faster time to value with data
Development and Test Cost Savings
8
A leading financial services company uses data virtualization to create a data services layer for all of their development teams. They saw cost savings of thousands of hours of development time as the developers are not having to “hunt down and access the data” themselves, but had the data delivered by readily available data services. This equated to a saving of nearly $360,000 per year.
Gartner Peer Insights – Speed of Deployment
10
Integration and Deployment
Project Size
Development and Test Cost Savings - Metrics
11
IT Operations Cost Savings
Classic cost savings category for Data Virtualization
Areas of cost savings include:
• Hardware costs – capital costs and ongoing costs – associated with
reducing the amount of data replication and consolidation
• Reduced staffing costs – as a result of needing fewer people to manage
data virtualization platform (vs. other solutions)
• Reduced or avoided license and maintenance costs – by reducing other
middleware (e.g. ETL) or application usage
13
Savings include:
• Capital costs – new servers and data
storage
• Ongoing costs – HVAC, maintenance
costs, etc.
• Note: Cloud deployment options can
also reduce capital costs
IT Operations Cost Savings – Hardware
14
Data is typically replicated more than 10 times over its lifetime. In some industries, such as Financial Services, data is replicated more frequently – 50-60 times is common and data is replicated over 100 times in extreme cases.
Savings include:
• Ease-of-use, single platform
management result in reduced
staffing requirements for Operations
• Users report needing 1/3 of staff to
manage Data Virtualization vs. ETL
• Reality: Staff are reassigned – so not
‘true’ cost saving
IT Operations Cost Savings - Staffing
15
A telecoms company was able to reduce its IT Operations team by 40% when using data virtualization, resulting in cost savings of over $250,000 per year.
Savings include:
• Reducing number of database
licenses due to less data replication
• Reducing licenses in end-user
applications as data can be accessed
via Data Virtualization platform
IT Operations Cost Savings - Licenses
16
A manufacturing company was able to save nearly $600,000 by reducing the number of user licenses it needed for COTS applications, as users could access the data that they needed via the data virtualization layer rather than requiring a user license for the various applications.
A healthcare company reduced its Salesforce licenses by 50% by using Data Virtualization to access Salesforce data ($175K)
Often not fully recognized part of
reducing TCO
• Can be substantial savings
• Example – automation of data
gathering, validation, and reporting
Cost saving are often the result of
quicker access to information or
better quality data available to
business
Non-IT Cost Savings
17
Leading Biotech company uses data virtualization to integrate daily sales data from 90 worldwide distributors. This results in the sales reports taking 20 minutes rather than 7 hours under the prior manual system. The data was also cleaner and had less errors – which were costly to fix at a later date.
Business Impact of Data Virtualization
18
Our Customers Are Executing Digital Business Transformations
19
Business
People
Business
People
Things
Business
People
Things
eBusiness Digital Digital & Autonomous
Digital Transformation Opportunities
• New Business Models
• New Revenue Streams
• Modernization (Product Innovations, Process Innovation)
• Improved Productivity
• Improved Operational Efficiency
Smart Machines
2020
Product Innovation
Self-Service Customer Service Innovation
Operational Efficiency
Supplemental Revenue Stream
Cloud Modernization
2000
Leading Construction Manufacturer
Digital Transformation Requires Agile Data Strategy
20
Agile Data Strategy Requires Agile Technology a.k.a. Data Virtualization
Business Impact of Digital Transformation
21
Created an entirely
new line of business as
a technology solutions
provider, adding a new
revenue stream to the
company's top line
Advances Bioscience
discoveries
Improved asset
performance
Proactive maintenance.
Optimized pricing for
services and parts
among global service
providers.
Improved Business Process
Efficiency by Accelerating Self-
Service BI
Reduced time required to
source data for reporting: 2-3
days static reports 2-3 hours
interactive, self-service reports
Leading Construction Manufacturer
Summary
22
Summary
Calculating ROI is not easy!
• We can help – we have experience in where to look for ROI value .
In the meantime…
• Examine successful digital business transformations within, and outside your
industry.
• Explore opportunities within your reach and prioritize based on business impact
and barriers to ROI.
• Use Data Virtualization to prove out and capitalize on the most promising
opportunities
23
Q&A
Thank you!
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O C T O B E R 1 8 , 2 0 1 6 S A N F R A N C I S C O B A Y A R E A , C A
#DenodoDataFest