There has been a lack of substantive data about the state of open source in the business intelligence and data warehousing market. In this presentation noted industry analyst Mark Madsen will present the results of recent market research on adoption profiles and characteristics for open source BI/DW. This research surveyed adopters of open source to understand their reasons for adoption and the benefits they experienced. It also captured user demographics to identify who is adopting open source for BI/DW, where they are deploying it, and how it’s being used. Two highly experienced open source BI practitioners, Bruce Belvin (President, Monolith Software Solutions) and Jay Webster (President and COO at Consorte Media) will describe their BI implementations, their criteria and selection methodology, and share best practices.

1. Open
Source
Adoption
and Use in
the Real
World

2. Summing up data warehousing & business intelligence:
Transaction processing is a commodity. Analysis is not.
1
100
15 2
80
14 3
60
40
13 4
20 Smooth
0
12 5 Chunky
11 6
10 7
9 8
Margin of error: +/- 100 points

3. Cautionary Tale: Visions of Yesterday’s Future

4. Cautionary Tale: Visions of Yesterday’s Future

5. Cautionary Tale: Visions of Yesterday’s Future

6. Cautionary Tale: Visions of Yesterday’s Future

7. “Prediction is very
difficult, especially
about the future.”
Niels Bohr

9. Where the analysts are
on the adoption curve
“Open source is not worth paying attention to.”
A Gartner analyst I don’t want to make too much fun of, January 2006

10. “The future is the present projected.”
Aldous Huxley

11. What is the state of the enterprise
software market today?

12. Any Industry This Big is Maturing
Annual US software sales
150
130
110
90
70
50
30
10
-10
70 75 80 85 90 95 00
Source: US Dept. of Commerce
March 2009 Mark R. Madsen

13. Evolution of the Software Market 1987
Source: John Prendergast
March 2009
(data: Bloomberg, Factset)
Mark R. Madsen

14. Evolution of the Software Market 1997
Source: John Prendergast
March 2009
(data: Bloomberg, Factset)
Mark R. Madsen

15. Evolution of the Software Market 2007
Source: John Prendergast
March 2009
(data: Bloomberg, Factset)
Mark R. Madsen

16. The DW & BI Software Market Today
According to IDC, the
analytics and data
warehouse software
market is growing at 31,595
10.3% CAGR 28,682
26,001
23,601
21,408
19,342
17,386
2005 2006 2007 2008 2009 2010 2011
March 2009 Mark R. Madsen

17. How to predict like an analyst.

18. Moore’s Law via the Lens of the Industry Analyst
CPU
Speed
Time

19. Moore’s Law: Power Consumption
Power
Use
Time 2019

20. Moore’s Law: Heat Generation
CPU
Temp
Time 2019

21. Conclusion #1: Your own nuclear reactor by 2019
Power
Use
Time 2019

22. Conclusion #2: You will need a new desk in 2019
CPU
Temp
Time 2019

23. “If the automobile had followed Reality
the same development as the
computer, a Rolls-Royce would
today cost $100, get a million
miles per gallon, and explode
once a year killing everyone
inside.” Anything
Robert Cringely
Time

24. The Real State of Enterprise Software?
March 2009 Mark R. Madsen

25. Software Revenue = Corporate IT Cost
IT costs as a percent of equipment investment
50
40
30
20
10
0
68 72 76 80 84 88 92 96 00 04
Source: US Dept. of Commerce
March 2009 Mark R. Madsen

26. Enterprise Software Economics
The enterprise software model
is breaking down. Some facts:
• 70% - 80% of sales & marketing is
for new sales
• 76% of new license revenue goes
to sales & marketing
• Maintenance makes up 45% of
revenues and this number is
increasing
• 75% of R&D for mature products is
for updates, bug fixing, and non-
revenue enhancements
• Maintenance and support is
becoming the biggest factor is
software company profitability.
Sources Godman-Sachs, Tech Strategy Partners, Forrester
March 2009 Mark R. Madsen

27. BI is Entering Mainstream Adoption
This means the BI market is entering a period
of commodification: demand up, supply up,
prices and margins down. Door open for OSS.
Reporting Databases
& Analysis
Platforms
Data
Integration
Predictive
analytics
March 2009 Mark R. Madsen

28. Technology Priorities in IT
Source: CIO Insight
Informing the business trumps automating the business.
This held true for three years in a row.
March 2009 Mark R. Madsen

29. Spending Priorities in IT
In 2007 and 2008 IT budgeted most new project
money for databases and business intelligence.
Sources: CIO Insight
March 2009 Mark R. Madsen

30. Open Source Disruption
“Which sector of the industry is most vulnerable to
disruption by open source in the next five years?”
1. Web publishing and content management
2. Social software
3. Business Intelligence
Source: North Bridge Venture Partners
March 2009 Mark R. Madsen

31. Signs of Maturity
Source: Open Source Index 2008, Red Hat, Inc.
March 2009 Mark R. Madsen

32. Use of OSS BI/OLAP tools worldwide
March 2009 Mark R. Madsen

33. Open Source BI Use Looks Like Proprietary BI Use
March 2009 Mark R. Madsen

34. Rationale When Evaluating OSS
March 2009 Mark R. Madsen

35. Good News: It Works
March 2009 Mark R. Madsen

36. State of Adoption & Use of Open Source BI
None Considering Completed Evaluation Using in Production
50%
45%
40%
35% 33%
30%
25% 21%
20% 18%
15% 12%
9%
10%
5%
0%
Database / Reporting Data Embedded / Advanced
DW platform and OLAP integration application analytics
and ETL reports

37. Data size for all survey respondents including those
using proprietary databases.
50%
45% 81% of the
45% sample < 1TB
40%
35%
30%
25% 22%
20%
15%
9%
10% 7% 7% 7%
5% 3%
0%
0‐49 50‐100 100‐499 500‐999 1‐5 TB 5‐25 TB >25 TB

39. Why did BI software evaluations fail?
Missing or incomplete features 56%
Scalability problems 41%
Lack of available consulting 27%
Difficulty integrating into environment 26%
Required more expertise than expected 25%
0% 10% 20% 30% 40% 50% 60%
March 2009 Mark R. Madsen

40. There’s still work to be done

41. Data is the future

42. “When a new technology rolls over you, you're either part of
Questions?
the steamroller or part of the road.” – Stewart Brand
March 2009 Mark R. Madsen

43. We Could Use Your Help
If you evaluated open
source software for any
aspect of the BI or data
warehouse environment,
please fill out the online
open source adoption
survey at
http://bitly.com/scRhF
The survey is running until
May 30, 2009.
March 2009 Mark R. Madsen

44. Creative Commons
Thanks to the people who made their images available via creative commons:
highway storm.jpg - http://flickr.com/photos/areyoumyrik/235230688
firemen not noticing fire.jpg - http://flickr.com/photos/oldonliner/1485881035/
godzilla_vs_bhudda_big.jpg - http://flickr.com/photos/olivander/262293544/
acapluco_cliff_divers_cc.jpg - http://flickr.com/photos/raveller/
March 2009 Mark R. Madsen

45. Creative Commons
This work is licensed under the Creative Commons
Attribution-Noncommercial-No Derivative Works 3.0 United
States License. To view a copy of this license, visit
http://creativecommons.org/licenses/by-nc-nd/3.0/us/ or send
a letter to Creative Commons, 543 Howard Street, 5th Floor,
San Francisco, California, 94105, USA.
March 2009 Mark R. Madsen

46. ‘
MySQL Conference & Expo
Bruce Belvin

47. Company Mission
Monolith Software Solutions is dedicated to providing
scalable business intelligence for multi-unit QSR
restaurant operations.

48. Open Source Components
SUSE Linux Enterprise

49. Overview
3000+ disparate data sources
4500 users
Complex organizational structures / hierarchy
Multi tenant environment
Segregated data bases per individual organization
Same data used for various business functions
Granular data

50. Vertical Landscape
I. Fragmented ownership
II. Legacy hardware/various data sources
III. Hesitancy to adopt Open Source
IV. Small margin industry

51. Why SaaS Works
• Subscription business model fits segment price
pressures
• Unlimited users solves user heavy structure
• Initial price / on going maintenance
• Low barrier to entry
• Pay as you go for additional integration/modules

52. Keys to SaaS Success
• Educate multiple decision making groups within organization
• Utilize support from technology partners and open source
community
• Be aware of impact on IT/political past decisions
• Prove open source solution
• Develop silver bullet strategies to over come open source
perceptions

54. Background
President / COO of
Consorte Media
Formerly CTO of
BlueLithium, Adteractive,
Fathom Online, and
Cybernautics
13 years as a technical
executive in the online
advertising industry
54

55. Scope of Online Advertising
Delivers the right
Dynamically ad to the right
builds pages for person
visitor using
predictive models
Collect Metrics for
performance
measurement and
analytics
55

56. Business Challenges
Web API
Internal Applications
Revised Models
Analytics
Data Mining
Model Development
Performance Reports
56

57. Our Stack
CentOS
MySQL
BIRT
Hibernate
Apache
Camel
Kettle
Hadoop

58. Best Practices
• Use analytics to design and test
advertising models using only
relevant dimensions
• Gather and determine business
requirements before embarking
on the journey
• Build an infrastructure plan that
will support the data collection
and analytics platform
58

59. The Role of Open Source
• Several important innovations in data
processing have been driven largely by
online advertising
• Industry needs software and tools to
match pace of innovation and fast-
changing business climate
• Proprietary software vendors unable to
respond quickly enough to support the
industry
• Open Source has provided innovative
solutions and flexibility to support new
business requirements
59

60. Jay Webster
President and COO
jayw@consortemedia.com
415.677.4431 ext 248

61. Q&A: Bruce Belvin, Jay Webster, Mark Madsen

62. We Could Use Your Help
If you evaluated open
source software for any
aspect of the BI or data
warehouse environment,
please fill out the online
open source adoption
survey at
http://bitly.com/scRhF
The survey is running until
May 30, 2009.
March 2009 Mark R. Madsen