Setting up traditional BI solutions involves buying and integrating multiple products from multiple vendors – and even the offerings from individual vendors often are made up of several disparate products that were brought in through acquisitions and not built to work together. All these products must be integrated together in a seamless and precise way for the end users to see the results they expect – one mistake somewhere in the chain and the end user will see incorrect results. The level of coordination and precision required for BI is high – so getting these tools to work perfectly together is very time consuming and resource-intensive and that same pain is experienced for every change made to the system as the business’ needs evolve over time.
In Aberdeen AUG 2010 Report “Fast, Affordable, Agile – The Case for SaaS BI”, Aberdeen found that SaaS BI adoption doubled from 2008 to 2009 going from 7% in 2008 to 15% in 2009. Shown here are some of the primary drivers for the growing adoption of SaaS BI.
Why Choose SaaS BI? Confidential
What is SaaS? 2 1/14/2011 Confidential A way of delivering solutions over the Internet—as a service. Instead of installing and maintaining software at your own organization, you simply access the solution online. SaaS
Provider manages application access, including security, availability, and performance.
Sometimes called on-demand or Web-based software.
How do you know if it’s really SaaS? A lot of companies claim that they have a SaaS solution. How do you know if they really do or not? Multitenant Architecture All users and solutions share a single, common infrastructure that is centrally maintained. Because of this, vendors can both innovate more quickly and lower the overall cost of your solution – a savings that is passed on to you. Easy Customization Users can easily customize solutions to fit their business needs without affecting the common infrastructure. Customizations are unique to each company or user and are preserved with each upgrade. This means that upgrades can occur more often, with less risk and lower adoption cost. Better Access – from anywhere with an internet connection Access to data from any networked device. It’s also easy to manage privileges, monitor data use, and ensure that everyone can have access to the most updated information. 3 1/13/2011 Confidential
What are the benefits of SaaS? 5 1/13/2011 Confidential Lower Initial and Ongoing Costs No big upfront software and hardware costs Subscription based – costs are predictably spread over life of subscription Lower demands on your IT organization Traditional Software Cost Profile SaaS Cost Profile Start Update Update Start Update Update
What are the benefits of SaaS? 6 1/13/2011 Confidential The Most Recent Version for Everyone, Automatically Delivered All updates and upgrades managed for you; no patches to install Availability managed for you - no need to add hardware, software, or bandwidth as user base grows
What are the benefits of SaaS? 7 1/14/2011 Confidential
High Scalability and Seamless Integration
True multitenant architectures: scales to meet customer demand
APIs for integration to other business systems
Integration with Key Systems Users Data Volume
What are the benefits of SaaS? 8 1/13/2011 Confidential High Adoption, by More Users Available from any internet-connected computer or any device Built for ease of use - high adoption rates, with a lower learning curve.
What’s different about SaaS? No Vendor Lock-in Subscription based, with low IT demands.
Affordable to get started and scale No hardware or software to buy, no huge upfront costs. Buy small, prove it out, and easily expand. Maintenance hassles are handled for you. One platform, automatically updated.
Fast learning curve and high adoption. Built for ease of use by a wide range of users. Always up to date. Rapid innovation cycles, automatically delivered. 9 1/13/2011 Confidential
Traditional On-Premise BI is powerful but it’s… 11 1/13/2011 Confidential + + = complex expensive resource intensive time consuming
Average implementation is 17 months, with low success rate. Average implementation time is too long1: 17 months in total; 5 months to deploy the first usable analytic application Mean annual cost of BI software is high2: $1.1 million for companies with >1,000 employees Project success rate is low1: 31% success rate, at best Not getting right data to the right people2: Only 36% are confident that reports and dashboards deliver the right data, to the right person, at the right time 57% of deployments take over a year! 1 DM Review & IDC Business Intelligence Survey, October 2006, 2004 (Material on implementation time not available in 2006 survey) 2 InfoWorld & IDC Business Intelligence Survey, October 2007
It’s very painful. Here’s why. 13 Confidential 1/13/2011
14 1/13/2011 Confidential Software and hardware are only 40% of costs – the rest is people cost and downtime cost. Source: IDC Report Building & Maintenance and End User Support Hardware 15% Annual Staffing 37% Environment Acquisition, Set-up, Maintenance & Downtime Software 25% Data Movement, Logical Modeling and Ongoing Enhancements & Maintenance Initial Build 13% Down- time 10%
No wonder more companies are turning to SaaS BI. The SaaSBI market will experience triplethe growth of the overall market, expanding at a compound annual growth rate of 22.4% through 2013. 15 1/14/2011 Confidential Source: IDG News Service, February 1, 2010
And here’s why: 16 1/13/2011 Confidential Top Reasons Companies Pursue On-Demand BI
Fundamentally Better: The SaaS BI Core Value Proposition The Power You Need A comprehensive solution Scales to fit your business Heavyweight BI, not “light” BI When You Need It Typically deploys within days, not years For All of Your Users Easy enough for business users, powerful enough for IT Everywhere Anywhere you have an internet connection, including mobile At a Cost You Can Afford – now and in the future 17 1/13/2011 Confidential
Learn more about SaaS BI www.SaaSBusinessIntelligence.com 18 1/14/2011 Confidential