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IM Wise Analytics-491004f03d-Pp
IM Wise Analytics-491004f03d-Pp
Warehouse Landscape
Table of Contents
Overview and Methodology
Executive Summary
Overview and Introduction
Methodology and Survey Overview
Survey Findings
Survey Demographics
Data Warehouse Maturity
Data Warehouse Implementation
Data Warehouse Adoption and Selection
Data Warehouse Value
Data Warehouse Uses
Data Warehouse Support
Mid-Market Value and Attaining ROI
Case Studies
Kognitio
ParAccel
Sybase
Teradata
Conclusion
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Methodology Market Organizations Findings Studies
Executive Summary
The Mid-Market Data Warehouse Landscape research their implementations took over 3 years. Overall, only
report identifies trends within data warehouse adop- 3% of respondents felt that implementation times
tion and use among small and mid-sized companies. exceeded their expectations, with 45% feeling that
A distributed survey and a series of case studies form implementation times were longer than expected.
the basis of this report and provide a view of how
easy it is becoming for mid-market organizations to When looking at solutions, the top three solutions
take advantage of data warehousing technologies. used are Oracle, Microsoft and IBM, which is
The goal of this research is to provide awareness of based on overall company size and general market
what solutions are available within the mid-market and penetration. These three also top the solutions
how companies are applying data warehousing within being evaluated by organizations. When looking at
their organizations. This report also identifies the adoption versus evaluation, however, the 4th vendor
benefits and/or challenges they are currently facing. to be adopted is Teradata, whereas they are number Small and Large revenues
5 in relation to the data warehouse solutions being 57% below $500 million
evaluated. In this case, SAP switches places with
Data warehouse adoption Teradata for in 5th and 4th place respectively. The 24% above $2 billion
With 57% of 123 survey respondents having interesting thing to note is that even with the focus on
revenues below $500 million and 24% over $2 billion, hosting data and cloud based solutions, the majority
the survey shows that both small-sized organizations of implementations still fall within the category of
and departments within larger enterprises are taking traditional data warehousing.
advantage of data warehousing solutions. Current
data warehouse use is at 87% of departments within Perceived value and ROI “Average Implementation
enterprise organizations as opposed to between 60% The top evaluation criteria for solution choice are overall Between 6 and 12 months.”
and 70% of businesses falling within all other revenue cost, compatibility with the current environment, and
categories. These adoption discrepancies apply to the desired features and functionality. In addition to
maturity of use as well with data warehouse use of traditional BI, mid-sized companies are utilizing their data
more than 5 years with companies with revenues warehousing environments for operational decision-
under $250 million at 36% and at 67% for businesses making, advanced analytics, and data management
between $750 million and $1 billion annually. functions. In terms of overall value, many mid-market
organizations feel that their data warehouse provides
Implementation and software selection greater visibility into data and better decision-making
Average implementation times for first data ability. When looking specifically at financial ROI,
warehouse projects are between 6 and 12 months 35% of mid-sized businesses feel that their solution
at 31% and at between 1 and 2 years at 22%. has already paid for itself, and 22% feel that the data
Interestingly enough, 8% of respondents stated that warehouse will pay itself off within the next 2 years.
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Overview & The Data Warehouse Needs of Mid-Market Survey Case Conclusion
Methodology Market Organizations Findings Studies
The world of data warehousing is quite mature and As costs for storage, processing speeds, and
predates many of the BI tools that are commonly general technology have decreased, organizations
used by small and mid-sized businesses today. For have been able to take advantage of the expanded
years, data warehouses have enabled organizations applications of technology. On the other side, due to
the ability to maintain a database separate from these changes, broader ranges of solution offerings
operational transactions. In many cases, the purpose exist. In addition to traditional data warehouses,
being to develop OLAP cubes and reporting that appliances, and the ability to manage data in the
didn’t interfere with the organization’s transactions. cloud creates additional markets and enables more
In other cases, companies were looking for deeper businesses to take advantage of what technology
insights through the development of data marts has to offer. In addition to lower price points and
and historical-based analytics to identify trends increased performance, more diverse applications
in performance. Overall, the IT infrastructure and of data warehousing and data management can take
development requirements meant that only large place due to the newer diversity of products, overall
enterprises with deep pockets could take advantage performance, and price points.
of what data warehousing had to offer.
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Enter the Mid-Market. With more storage, better The role of business intelligence and data Overall, data complexities and disparate data from
performance, lower price points, and easy to warehousing have become more important within varying data sources exist in all organizations.
implement solutions, within the past few years mid-sized companies as solutions have moved Because of the proliferation of Excel and the
data warehousing is more accessible to mid sized downstream and are more accessible to the general use of spreadsheets, the ability for mid-
companies. Overall, mid-market organizations are mid-market. The data warehousing appliance market organizations to achieve a holistic view of
similar to their enterprise counterparts in relation market, offering data as a service, and the general information across the organization can be achieved
to the types of issues they encounter within their technology advancements (i.e. more space, faster through the adoption of a data warehouse.
businesses. Having access to the right data and processing speeds, lower prices, etc.) have made it
being able to make informed decisions based on easier for mid-sized companies to take advantage of
that data are essential within any company to help technology that may have been out of their reach a
drive performance. couple of years ago.
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Survey Findings
The following sections provide insights into what is
happening in relation to data warehouse adoption
and use within the mid-market. Additionally, What is your Industry breakdown of
respondents answered questions regarding the
number of resources required to maintain their
organization’s survey respondents
current solutions, average implementation times, revenue?
and solution choice considerations. These areas
of exploration provide organizations searching
for these solutions a strong starting point based
on what similar businesses are doing both within
data warehousing terms as well as within broader
business intelligence applications.
Survey Demographics
When defining the mid-market in terms of revenue,
the general cap is at $1 Billion. Alternatively, many
departments or business units within enterprise orga-
nizations act independently. This means that although
total revenues fall within the billions, business unit
budgets are lower and general resources are similar
to those of their traditional mid-market counterparts.
These businesses are also well poised to take advan-
tage of solutions targeted for mid-sized companies
based on lower price points, more diverse solution
options, and quick time to value. Although segmented into larger revenue categories,
respondents fall within a broad range of industries.
The most interesting aspect of the chart below is The top industries are High Tech with 17%, Health-
that 45% of respondents have revenues under $250 care with 16%, and Financial Services with 11%.
million. This shows that smaller organizations have High Tech and Financial Services are considered
similar business needs as larger companies, even mature adopters of data warehouse technology. Due
though they may not have the same resources. to the broad analytics and data management needs
Overall, 70% of respondents fall under the $1 billion of Healthcare organizations, recent years have seen
revenue range, with 30% being over $1 billion. broader adoption of general BI within this industry.
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Cost, Compatibility,
Features, Implementation,
Maintenance, Services.
Each is important but might be weighted 3. Features/Functions: Depending on the 5. Maintenance and long-term costs: Represents
differently based on the individual requirements requirements of the organization in terms of a subset of #1. Some companies prefer a larger
of the company: overall use, different features will be considered. upfront investment with smaller output over time,
1. Overall cost: This includes the initial hardware For instance, analytical databases will be while others prefer a subscription model where
and software costs, development, maintenance, evaluated differently than looking at a data costs are spread out evenly over time.
support, and licensing. Therefore, overall costs warehouse for the purposes of operational 6. Internal maintenance requirements: This involves
do not only include upfront costs, but also longer- business intelligence. identifying the amount of support and continued
term investments required. 4. Implementation times: Not all solutions are equal maintenance required from internal IT resources.
2. Compatibility/Interoperability with current IT in terms of the time it will take to get up and running. 7. Professional services offered: Some organizations
environment: Solution choice will depend upon Depending on the internal requirements, realistic look to solution providers to develop and to
the current environment and will affect the future expectations should be set in relation to expected implement the data warehouse.
expansion, maintenance required, etc. implementation times and overall time to value.
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As identified above right, the main use of data Other applications include overall performance and In terms of broader adoption, 61.5% of respondents
warehousing is still within traditional BI. Because quality improvements, executive dashboards and with revenues under $250 million use their data
business intelligence has been highly tied to a data operations and maintenance. warehouse for reporting with numbers slightly higher
warehousing back end, many companies still look to at 75% and 80% of companies between $750 million
traditional deployments for reporting and analytics. As mentioned above, in addition to traditional reporting and $1 billion, and companies between $1 billion and
In addition to various types of analytics, businesses and analytics applications, data warehousing is also $2 billion. The second highest supporting application,
are also starting to look at how to manage their being used as an extension of data management outside of ETL/ELT is dashboard use at 75% of
data and to incorporate MDM into their overall IT related initiatives. The importance of data cannot companies with revenue between $750 million and $1
infrastructure. 20% of respondents answered that be overlooked. Without accurate and valid data, the billion, following in third place with analytics at 50%
they are currently incorporating MDM or some value of business intelligence and data warehousing of respondents within organizations with under $250
data management initiative within their current is diminished. Organizations are starting to realize million in revenue. Interesting to note is that 23% of
data warehouse environment. this and integrate initiatives such as data quality, data businesses in the same revenue category also state
profiling, MDM, and data governance within their data they have adopted MDM within their organization.
warehouse environment. .
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