What Do You Do If A BI Vendor Offers You A "Discount" Without Published List Prices?

Boris Evelson

By Boris Evelson

I get this request almost on a weekly basis: "Boris, my BI vendor is offering me the following discount, is it a good deal or not?" The first question is what are you comparing it to? It reminds me of an old joke: Q. How much is 5 times 5. A. Depends on whether you're buying or selling. Many of the vendors do not publish or reveal list prices, or even if they do, they are revealed only under NDA to each client, so good luck comparing what the vendor told you and what they told another client. So what ARE you comparing it to?

Another problem, IMHO, is that many of the vendors muddy the waters with CPU based prices, clock speed based prices, etc. Yes, CPU, server, core based prices make sense if you are growing and want to lock in a good deal now, before you grow and expand. But in the end, you, the buyer, still need to figure out how much the software costs you per seat, per user.  So with both of these challenges in mind I looked through my 20+ years of notes on BI contracts and per seat license costs and came up with the following. Notice, an interesting X-factor (obviously, I fixed the numbers a bit to have it look nicely like that):

  • BI output consumer, no interactivity $300
  • BI output consumer, with light (sort, filter, rank) interactivity $600 (or 2x)
  • BI output consumer with heavy interactivity (interactive dashboards, search, etc.) $1,200 (or 4x)
  • Power users (generate content) $2,400 (or 8x)
  • Developers (includes ETL, scripting, scheduling, etc.) $3,600 (12x)
  • Administrators $10,800 (36x)
  • Advanced analytics (data mining, predictive modeling) $10,000 and up.
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The Mall Of Google

Jeffrey Hammond

One of my favorite research coverage areas is the evolving world of open source software. I like it because innovation is the watchword for the space – evolving technology, evolving business models, and evolving developer culture are fascinating to watch (if you don’t have the opportunity to write code yourself, watching other bright people figure out the best ways to do it is the next best thing). One of my favorite descriptions of the space from the early days of free software is Eric Raymond’s The Cathedral and the Bazaar. If you’ve never read it, I highly recommend doing so.

For the past year or so, I’ve been thinking more and more about the evolution of the Cathedral/Bazaar model, and its eventual end state. If we stick with the commercial analogies through time, we move past guilds and exchanges, and we find ourselves at today’s commercial masterpiece – the shopping mall. In the shopping mall, the landlords provides common conveniences like plumbing, heating, and free parking, and tenets hawk their wares. Small startups might rent pushcarts in the center atriums, while anchor stores like Macy’s and Sears get big hunks of display space at the ends of the mall.

I think we’re beginning to see the development of the Mall as an alternative to the Cathedral/Bazaar model. The Eclipse Foundation is a good example of mixed source development, with anchor stores like IBM and Oracle. Now after spending time at Google I/O this week I think it’s pretty clear we have another mall forming – “The Mall of Google.”

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Business And IT Alignment For BI - Fact Or Fiction?

Boris Evelson

By Boris Evelson

My friend and highly respected colleague, Wayne Eckerson from TDWI, posted a great article called “Purple BI People”. In the article he described some of the best practices for business and IT alignment, and cross-functional skills sets needed for successful and effective BI professionals. Wayne, I loved the blue cow analogy, you know that I always think in metaphors, analogies, similies and associations. But, while I completely agree with Wayne in his near term assessment, best practices and recommendations, I would like to suggest another long term point of view.

Can business and IT ever align on BI? Can business ever be satisfied with IT for delivering successful and effective BI applications? Is there such a thing as BT (Business Technology, the phrase that Forrester coined and promotes) in BI?

I used to think we could deliver on that promise. Not so sure it’s that straightforward now. Just look at some of the hopelessly diametrically opposing business and IT priorities. I hear the following complaints from my clients day in and day out:

  • Business is all about revenue generation. While IT can support that, much more often cost cutting is IT's highest priority.
  • Business wants solutions now. Not tomorrow. IT needs to go through due diligence of testing and approving BI applications. Right now, on demand does not sit well with IT.
  • Business wants to react to constantly changing BI requirements. IT has to plan.
  • Business sometimes is willing to do something “quick and dirty” – even at the expense of potentially jeopardizing accuracy and adherence, compliance with standards. IT is all about compliance and sticking with standards.
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BI Partnership Ecosystem - "Gone With The Wind"

Boris Evelson

By Boris Evelson

I have long resisted and will continue to resist for the foreseeable future any notions that the BI market is commoditizing. A single simple look at the BI maturity in enterprises and next gen BI technologies is a simple proof that we are far, very far, from any kinds of commoditization. Consolidation is quite a different story. Last week's SAP acquisition of Sybase and my roaming the exhibitor / partner floor at SAPPHIRE in Orlando are two more proofs. On a huge SAPPHIRE exhibition floor I could count software partners by the number of the fingers on my hands. Why? Because everyone who matters has been acquired by a competitor! Most of the exhibitors were management consultancies, systems integrators and other SAP implementation partners. Hence, a lesson to independent BI vendors: offer your own full BI stack or position yourself for an acquisition. No other long-term options in my mind.

But as always I welcome all and any comments and opposing views.

Ask Rymer: Let's Figure Out How Apps Are Changing

John R. Rymer

Monday, May 17: I'm on my way to SAP's SapphireNow to figure out where the world's largest enterprise vendor is taking its customers after buying Sybase. Is SAP's future mobile apps? Newfangled "in-memory" architectures? Cloud-based apps? Or is SAP just grabbing a database to compete with Oracle's?

I know you've got questions too about the future of enterprise applications -- and not just about SAP's direction. I've had many discussions with individual Forrester clients about the future of applications over the years, but never with everyone. Now, OutSystems and I have come up with a new use of social media to open the doors on a worldwide Q&A on the future of applications.  Visit What's the Future of Applications? Ask Rymer for details.

We call it "social consulting."  Here is how it works: 

1. During the next week, visit the "Ask Rymer" site and post your biggest, baddest questions about the future of applications. We've got to account for change agents ranging from the Apple iPad to Smart Computing approaches to cloud computing to Lean Software to understand the future of applications. And we've got to continue our progress toward software that is designed for people and built for continuous change.

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Sybase Acquisition By SAP - A Great Move

Noel Yuhanna

Recently, SAP announced a definitive agreement to acquire Sybase for $5.8 billion, at $65 a share, a 44% premium over the share's three-month average price. The transaction is expected to close during the third quarter of 2010. Sybase will operate as a standalone unit under the name “Sybase, a SAP Company,” and be run by Sybase’s management team.

Although execs from SAP and Sybase have stressed mobility, real-time information, in-memory, and analytics benefits that come from this acquisition, the increasing pressure from Oracle cannot be undermined. Oracle’s stronger focus of stack level integration and selling around applications, middleware and database, and recent acquisition of SUN has put pressure on SAP.

 

SAP-Sybase Deal Offers A Lot Of Synergies

SAP and Sybase offer many benefits ranging from in-memory technologies, databases, analytics, and data integration to mobility and ILM.

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SAP And Sybase Could Be A Good Marriage In Banking

Jost Hoppermann

Most of us have already heard that Sybase will become part of SAP — or, to be more precise, that SAP and Sybase announced that SAP's subsidiary, SAP America, Inc., signed a definitive merger agreement to acquire Sybase. When this acquisition takes place, there will be various impact areas across SAP and Sybase’s combined portfolio. Rather than discussing this big picture, I would like to focus on SAP for Banking.

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BI Implications Of SAP-Sybase Deal -- Plenty

Boris Evelson

In this podcast Principal Analyst Boris Evelson discusses SAP's recent announcement on their intention to acquire Sybase. From the business intelligence point of view, Boris breaks down the obvious and not so obvious effects the acquisition will have on SAP's BI and data warehouse capabilities.

 

http://www.forrester.com/role_based/images/author/imported/forresterDotCom/Podcasts/BPA/Evelson_Kobielus_Richardson_Le%20Clair_Transform%20Business%20Processes%20Through%20Business%20Analytics_050510.mp3

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SAP Acquires Sybase – What’s The Strategic Intent Behind The Deal?

Holger Kisker

SAP today announced an agreement to acquire Sybase, Inc. for $5.8billion. Sybase has a broad portfolio of solutions, so the question comes to mind: what is the strategy, the driving force behind the deal? What are the Sybase crown jewels that SAP is after?

The main three assets Sybase brings to SAP are obviously a database, a mobile infrastructure and real-time analytics. Is it the combination of all of these assets or is there a distinct difference between those portfolio elements? Here are some first thoughts from my side on SAP’s strategic intention for the deal:

This deal is not focused on Sybase’s database assets. Why?

  1. The Sybase market share on databases is too small to make a big difference for SAP. Most SAP applications are currently running on Oracle, and there is little appetite in the market for replacement projects.
  2. SAP is Oracle’s biggest database reseller and makes significant business out of this and won’t shoot itself in the foot. Thus they will of course continue to sell and support Oracle, DB2, etc…  Anyways it’s an important element of SAP’s strategy to support multiple databases, but first it means investment to extend this support to the new family member (Sybase’s database is currently not supported!). In the long run, however, it won’t hurt to have in-house database expertise as the market changes and new opportunities will come.
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BI Implications Of SAP-Sybase Deal - Plenty

Boris Evelson

By Boris Evelson

The obvious:

  • SAP gets its own relational (Sybase ASE) and analytical (Sybase IQ) DBMS. Why is this a positive since SAP already has tight partnerships with major DBMS and DW vendors such as Oracle, IBM, Microsoft, Teradata, and HP? Simple. First, SAP can now control the code. Second, SAP can now potentially reduce reliance on DBMS partners, most of whom (Oracle, IBM, Microsoft) have their own full software stacks and therefore compete, often putting a strain on partnership relationships. True, Sybase ASE has a rather low market penetration, other than on Wall St (see Stefan Ried's blog), but since SAP BW takes care of most of the traditional RDBMS design and implementation tasks, Sybase could be positioned as a black box engine under BW, that does not require separate design, administration and maintenance environment. *** Update. SAP just confirmed that each of its applications can run on an independent database, so having mixed DBMS platforms under ERP and BW will not be an issue.
  • SAP also gets highly relevant (for low latency BI) and currently missing CEP technolgy from the Sybase Aleri acquisition and an OEM version of Coral8.
  • SAP customers may also benefit from advanced analytics from Fuzzy Logix, integrated and embdded in SybaseIQ
  • Sybase gets a badly needed BI front end on top of its Sybase IQ analytical DBMS. While Sybase is leading the market in the columnar DBMS, it is somewhat challenged selling and positioning the product with the business buyers, since they can’t really see, feel, or touch it.
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