saas vs on premise bi
DESCRIPTION
COMMON 2011 Show in Minneapolis - 5_11 V6TRANSCRIPT
COMPARING SAAS VS. ON-PREMISE BI
Larry Christensen, CBIPWynne Systems, Inc.“What gets measured gets managed”
www.wynnesystems.com
“Any Day on this side of the grass is a good one!”
Unknown
“The most dangerous phrase in the language is: It’s always been
done that way.”Grace Hopper
Cloud Vs. On-Premise
‘Cloud’ is the New Term
Agenda• BI Definitions/Market Predictions• Why On-Premise • Why SaaS–What to look out for
• Hybrids• Comparative Configurations and Costs• Q&A
But first…WHO IS THIS GUY?
BUSINESS INTELLIGENCE?
what exactly is
KnowledgeKnowledge is POWER
HERE ARE THE FACTS
The human brain can remember 4-7 things at any given time F500 Execs make ‘gut’ decisions 40% of the time (Accenture)
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BUSINESS INTELLIGENCE?
where’s the gain in
Ease of getting to information
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Insight2
More timely decisions3
Better decisions4
Direction5
Business Intelligence• Report and analyze data
– improve performance– uncover fleeting opportunities
• Helps you analyze and make better business decisions– improve sales or customer satisfaction or staff morale
• Provides information warning you of important events, such as– below average conditions– market changes– poor staff performance– take preventative steps
• Use information wisely
• Data warehousing and on-line analytical processing (OLAP)– Data warehouse is maintained separately
– OLAP uses multi-dimensional “Cubes”
– Delivers better analytics and faster performance
Business Intelligence
BI PredictionsWhat do the “Experts” Say?
TDWI1
Gartner2
Forrester3
Accenture4
Aberdeen Group5
The market for business intelligence and analytics grew by 13.4% in 2010 to break the $10 billion barrier
Gartner, 2010
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8.5
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9.5
10
10.5
2009 2010
BI Market
BI Predictions
BI Predictions
Nearly 40% of shops are currently practicing advanced analytics
By 2012 - 85% will be doing as much
TDWI Research Analyst, Philip Russom
Currently Using
Growth thru2012
Not Using
Cloud Predictions• Nine out of ten companies plan to grow their
use of software-as-a-service (SaaS)
• More than one third of respondents (37%) plan to replace on-premises software with SaaS to drive down total cost of ownership (TCO)
Gartner Survey
Cloud PredictionsThe world market for cloud service will expand from $40.7B in 2011 to > $241B in 2020.
There will be a new segment called Business Process as a Service (BPaaS)
Forrester, 4/27/11 0
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60
80
100
120
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160
2011 2013 2015 2017 2019
World Market $B
CASE STUDY
CLIENT
THEIR GOAL
Discount Tire
Sales Analysis (700+ Stores) plus many other aspects of the business.
www.wynnesystems.com
WHAT WE DID
Work with Users to define and create Analysis. One of the fun aspects was “Best Ever Report”
CASE STUDY
CLIENT
THEIR GOAL
United Rentals – 550+ locations
Internal Staff working with all aspects of company and sales analysis.
www.wynnesystems.com
WHAT WE DID
Installed On-Premise ERP and Business Intelligence. Use multiple BI Solutions
Insert image here, if possible.
CASE STUDY
CLIENT
THEIR GOAL
Finning CAT - #1 in World
Sales Analysis plus many other aspects of the business.
www.wynnesystems.com
WHAT WE DID
Hybrid Installation On-Premise ERP and SaaS BI.
Insert image here, if possible.
CASE STUDY
CLIENT
THEIR GOAL
Nokia
Company analysis
www.wynnesystems.com
WHAT WE DID
SaaS Business Intelligence
Auto Dealers
What Makes these Installations Work?
Collaboration between IT, Business User and
Vendor
The BI Challenge
“Organizations are facing pressures to deliver information that is timely and effective in meeting business goals. This requires companies to have access to the information, the ability to combine, aggregate and integrate the information, and then deliver it to people when, where and how they need it.”
“Beyond Spreadsheets: the value of BI and Analytics,” Aberdeen Group, Inc. January 2009
BI needs to be Pervasive• Casual / Users
– Reports– Presentations– Exception Reports– Dashboards
• Consultant / Analyst / 3rd Party– Excel Users -
• Experienced User• Power User
BI the ‘Solution’ (SaaS or On-Premise)
• Trends and Differences
• Scorecarding
• Integrated Security
• Dashboarding / KPI’s
• Drilling / Analytics
• e-Mailing BI
• Charting and Graphing
• Traffic Lighting
• Web Enabled
• Export to EXCEL
• Data Mining FROM EXCEL
• Exception Reporting
Dashboards - Present KPI’s
Manage by Exception – Traffic Lights
• Filter and Sort by any of the columns in the report to highlight top or bottom performers
Exception ReportingEvent Driven Analysis
• Trigger email reports and alerts based on thresholds for indicators
• Schedule reports to be emailed on a regular basis
Universal Truth• Companies have a lot of data available• Without analytics, companies are
constrained in their decision-making capabilities
• IT managers have been mandated to transform data into competitive advantage
Business Justification/ROI• BI uses OLAP Technology to:
– Improve the speed and quality of decision making– Helps you understand customer needs and markets– See what is happening in your business months earlier
• Reduce time spent generating or waiting for reports• Eliminate time determining who has the “right numbers”• Reduce paper cost for reporting• Reduce programming cost for custom reports
ALLOWS YOUR EMPLOYEES TO MAKE BETTER AND FASTER BUSINESS DECISIONS WITH FEWER PEOPLE
RESOURCES!
NO Additional Money or Resource is Allocated to IT
Universal Truth
More Output from IT Required
BI Options• On-Premise – Traditional License
• On- Premise – Open Source License
• SaaS – Subscription License
On-PremiseTraditional License
On-Premise – When?• Security• Large File Sizes• Control / Flexibility / Customization• Integration with Applications• Desire to Create Own Charts, Reports and
KPI’s • Competitive Advantage
10%13%
37%25%
15%
Distribution of Cost for Tradi-tional On-Premise BI
DowntimeInitial BuildAnnual StaffingSoftwareHardware
Source: IDC
Example On-Premise QuotationProduct Amount
IBM Power 7 Express EditionModel 720 (Four Core) 50 Users of IBM i 3 x 139GB Disk Units (RAID-5 Protection) 8GB Memory LTO-4 Tape Drive (800GB/1.6TB) DVD Drive IBM Software Suite (P05 Software Tier):
Universal Database/DB2DB2 Query Manager & SQL Development ToolkitWeb Sphere Development Studio License
Processor Based License: System i Access
$34,978
IBM 36 Month Service Suite Plan (Estimate) $2,521
Business Intelligence $26,698
Implementation and Training Estimate : 2 weeks $17,000
Total $81,197
Annual Maintenance of Software 19%
Other Costs• IT People• Back-up + Off-site Service• Fault Tolerant– 2nd System, 2nd Location
• New Hardware every 3-5 years• Updates/Upgrades
Other IT Responsibilities
• Disk Space Monitoring/Management• RAID/SAN Storage Management• Defragmentation• OS-level Patches/Upgrades• Network Management
On-PremiseOpen Source License
Open Source• Same IT Responsibilities as Traditional• Licenses generally cost less– Jaspersoft, Pentaho, Birt
• Versions– Open Source (Free)– Commercial Licenses (Paid) – Annual Maintenance– Pro-Services
Software as a Service
History• 60’s and 70’s = Time Sharing
– Dumb Terminals• 90’s = Applications Service Provider (ASP)
– User Pays for License and responsible for Upgrades and maintenance and Vendor Hosts Application
• Then Came SaaS– Does not own the S/W License and not responsible for
Upgrades and Maintenance• Now we say “Cloud”
Cloud Computing• Cloud computing refers to IT services that are
purchased and delivered on demand over a network, either the public Internet or a private IP-based network. Cloud computing services are powered by highly virtualized processing and storage systems in data centers that are made available via a Web interface to remote users.
Know Who You’re Dealing With
Cloud Components• Software as a Service• Software available via internet• Public or Private NetworksSaaS• Platform as a Service• Files Transferred to remote platform (In the Cloud)PaaS• Infrastructure as a Service• security and reliability of fully managed
servers, the flexibility and scalability of cloud automation
IaaS
Infrastructure
InfrastructureInternet Internet
Fault Tolerant Building
No single Point of FailureGenerators, etc…
Infrastructure - Simple
Router
Internet
Firewall
Gigabit Switch
VM Ware 1 Physical Server
Applications
S/W Partitions
Infrastructure
Router
Internet Internet
Router
Firewall Firewall
Gigabit Switches
Gigabit Switches
NIC NICNIC NIC3 Physical ServersVM Ware Load Balancing
1 Physical Server + SAN/NASApplicationsS/W Partitions
NIC NICNIC NICNIC NICNIC NIC
2 VPN Connections to Cloud Servers
Load Balancing
Load Balancing
Router
Internet Internet
Router
Firewall Firewall
Gigabit Switches
Gigabit Switches
NIC NICNIC NIC3 Physical ServersVM Ware Load Balancing
1 Physical Server + SAN/NASApplicationsS/W Partitions
NIC NICNIC NICNIC NICNIC NIC
2 VPN Connections to Cloud Servers
Load Balancing
Load Balancing
Infrastructure DR – 2nd Location Duplicate System
The Cloud Perspective• Absurd for companies in a non-technology
business to:– Spend large amounts of resources and manage
their own IT infrastructure. – Not Focus on your core business– Leave IT Management to the experts hosting and
managing software• Access from Anywhere via Browser
Cloud – Why Now• After the initial spurn, the world seems to
have come around and accepted the notion of SaaS/Cloud
• Armed with economies of scale through multi-tenancy, virtualization
• Enter High Speed Internet• Web 2.0 (Ajax, etc…)
Cloud – Why Now
• Massive Globalization • Emergence of BRIC (Brazil, Russia, India
and China) • Business Pace increased • Service Level Agreements (SLA’s) (99.9% Up)
Cloud - Distasters• Floods (Iowa)• Earth Quakes and Tsunami's (Japan)• Tornado’s (Alabama)• Locust (anywhere they want)• Terrorists (9/11)
Example Cloud Solutions
• SaaS Edge Apps – Email – Google Apps• Google Docs• Several Thousand Available
– Sales Management • Salesforce.com
Example Cloud Solutions
Business critical applications:• Financial Management - (Intacct)• ERP – (AXIOM/RentalMan), (Netsuite)• Human Capital Management - (SuccessFactors, Workday,
Taleo), • Product Lifecycle Management - (Arena Solutions)• Identity Management (Symplified)• Security (Symantec)
SaS 70 NOT SaaSStatement on Auditing Standards Number 70
SaS 70 Type I• In a Type I report, the service auditor will express an
opinion on – whether the service organization's description of its controls
presents fairly, in all material respects, the relevant aspects of the service organization's controls that had been placed in operation as of a specific date, and
– whether the controls were suitably designed to achieve specified control objectives.
$50K – $60K
SaS 70 Type II• In a Type II report, the service auditor will express
an opinion on the same items in a Type I report, and – whether the controls that were tested were operating
with sufficient effectiveness to provide reasonable, but not absolute, assurance that the control objectives were achieved during the period specified.
$100K+
Public Clouds
• A Virtual Private Cloud (VPC) is a private cloud existing within a shared or public cloud (i.e. the Intercloud).
Public Clouds
Private Clouds• Variety of benefits – Custom design and architecture is possible.– You can control where your data is stored – on which
server it is located.– You can set parameters for which people can access
which types of data.– Secure access is possible through private connections.
Private Clouds• May be forced to enter a long term contract– typically from one to three years.
• Private cloud hosting also falls under the pay-per-use category– only the amount of resources you consume are billed.
• During off peak hours on your web space or when you are still building traffic on a web site– you only pay for resources you are consuming.
SaaS/Cloud SaaS/Cloud• Pay As You Go
– Subscription (per user) – Expense Item– Month to Month Usage fees
• Lots of discussion re: Annual Fees
– Longer Term Commitment may mean Discounted Rate• Concurrent vs. Named User Licenses• Possible Setup Fee• No Capitalized expenditure• Web Browser
Pay As You Go means:
The Vendor has to do a Quality Job
OrYou Fly Away CLTV
Customer Lifetime Value
The SaaS Perspective• Companies are concerning themselves with:
– Quick Deployment– Service availability (SLA’s)– Forgoing the IT nightmare– No more software license– No more upgrades– No more maintenance– No army of IT people– No backups to do– Optional Administration and Creation Capability
• All packaged into a single subscription fee paid on an as-used basis
Cloud Computing
• Automatic upgrades• Expand capacity and usage on demand• Customization is Okay with many vendors• What does this cost?????
Approx: $1<$3 per day per user (A cup of coffee) Plus Setup
Comparison Chart
SaaS BI On-Premise BI
IT people Small IT Resource Required Commitment to Implementation
Hardware High Speed Internet Specific system with large disk
availability
Data Back-up Handled by SaaS Provider Requires IT Staff
Analysis Def. SaaS consults with Customer Requires IT Staff /SW Provider
and/or Consultant
Initial Setup SaaS Provider/some IT Staff Requires IT Staff
Data Extraction Database report writer Requires IT Staff
Delivery to users From 1-4 Weeks Weeks to Months
Wrap-Up
Thank You! Remember: Evaluation Worksheets
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