Denodo DataFest 2016: ROI Justification in Data Virtualization
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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.
Denodo DataFest 2016: ROI Justification in 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! © Copyright Denodo Technologies. All rights reserved Unless otherwise specified, no part of this PDF file may be reproduced or utilized in any for or by any means, electronic or mechanical, including photocopying and microfilm, without prior the written authorization from Denodo Technologies. 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