This document discusses ROI justification for data virtualization. It outlines how data virtualization can lower total cost of ownership through reduced development, testing, IT operations, and non-IT costs. Specific areas of cost savings include faster development times, reduced data replication, lower hardware and staffing needs, and decreased software licensing fees. The document also examines the business impacts of data virtualization, such as enabling digital transformations, improving business processes, and creating new revenue streams through innovations like self-service analytics. Real-world examples are provided of companies saving hundreds of thousands of dollars per year through data virtualization.

1. 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 STRATEGIES
For Accelerating Analytics, Cloud, and Big Data Initiatives.

2. ROI Justification in Data Virtualization
Paul Moxon
Head of Product Management, Denodo
Lakshmi Randall
Head of Product Marketing, Denodo
Twitter: @LakhmiLJ

3. Agenda
1.The Components of ROI
2.Lower TCO with Data Virtualization
3.Business Impact of Data Virtualization
4.Summary
3

4. 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.

5. 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

6. Lower TCO with Data Virtualization
6

7. Areas of Cost Reduction With Data Virtualization
1. Development and Test cost savings
2. IT Operations cost savings
3. Non-IT cost savings
7

8. 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.

9. Gartner Peer Insights – Speed of Deployment
10
Integration and Deployment
Project Size

10. Development and Test Cost Savings - Metrics
11

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

12. 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.

13. 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.

14. 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)

15. 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.

16. Business Impact of Data
Virtualization
18

17. 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

18. Digital Transformation Requires Agile Data Strategy
20
Agile Data Strategy Requires Agile Technology a.k.a. Data Virtualization

19. 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

20. Summary
22

21. 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

22. Q&A

23. 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