Open Source Adoption and Use in the Real World Summing up data - - PowerPoint PPT Presentation

Open Source Adoption and Use in the Real World

20 40 60 80 100

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Margin of error: +/- 100 points

Smooth Chunky

Summing up data warehousing & business intelligence:

Transaction processing is a commodity. Analysis is not.

Cautionary Tale: Visions of Yesterday’s Future

Cautionary Tale: Visions of Yesterday’s Future

Cautionary Tale: Visions of Yesterday’s Future

Cautionary Tale: Visions of Yesterday’s Future

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

“Open source is not worth paying attention to.”

A Gartner analyst I don’t want to make too much fun of, January 2006

Where the analysts are

• n the adoption curve

“The future is the present projected.”

Aldous Huxley

What is the state of the enterprise software market today?

March 2009

Mark R. Madsen

Any Industry This Big is Maturing

Annual US software sales

• 10

10 30 50 70 90 110 130 150 70 75 80 85 90 95 00

Source: US Dept. of Commerce

March 2009

Mark R. Madsen

Evolution of the Software Market 1987

Source: John Prendergast (data: Bloomberg, Factset)

March 2009

Mark R. Madsen

Evolution of the Software Market 1997

Source: John Prendergast (data: Bloomberg, Factset)

March 2009

Mark R. Madsen

Evolution of the Software Market 2007

Source: John Prendergast (data: Bloomberg, Factset)

March 2009

Mark R. Madsen

The DW & BI Software Market Today

According to IDC, the analytics and data warehouse software market is growing at 10.3% CAGR

17,386 19,342 21,408 23,601 26,001 28,682 31,595

2005 2006 2007 2008 2009 2010 2011

How to predict like an analyst.

Moore’s Law via the Lens of the Industry Analyst

Time CPU Speed

Moore’s Law: Power Consumption

Time Power Use 2019

Moore’s Law: Heat Generation

Time CPU Temp 2019

Conclusion #1: Your own nuclear reactor by 2019

Time Power Use 2019

Conclusion #2: You will need a new desk in 2019

Time CPU Temp 2019

“If the automobile had followed the same development as the computer, a Rolls-Royce would today cost $100, get a million miles per gallon, and explode

• nce a year killing everyone

inside.”

Robert Cringely

Time Anything Reality

March 2009

Mark R. Madsen

The Real State of Enterprise Software?

March 2009

Mark R. Madsen

Software Revenue = Corporate IT Cost

IT costs as a percent of equipment investment

10 20 30 40 50 68 72 76 80 84 88 92 96 00 04

Source: US Dept. of Commerce

March 2009

Mark R. Madsen

Enterprise Software Economics

• 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

The enterprise software model is breaking down. Some facts:

March 2009

Mark R. Madsen

BI is Entering Mainstream Adoption

This means the BI market is entering a period

• f commodification: demand up, supply up,

prices and margins down. Door open for OSS.

Platforms Databases Reporting & Analysis Data Integration Predictive analytics

March 2009

Mark R. Madsen

Technology Priorities in IT

Informing the business trumps automating the business. This held true for three years in a row.

Source: CIO Insight

March 2009

Mark R. Madsen

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

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

Signs of Maturity

Source: Open Source Index 2008, Red Hat, Inc.

March 2009

Mark R. Madsen

Use of OSS BI/OLAP tools worldwide

March 2009

Mark R. Madsen

Open Source BI Use Looks Like Proprietary BI Use

March 2009

Mark R. Madsen

Rationale When Evaluating OSS

March 2009

Mark R. Madsen

Good News: It Works

State of Adoption & Use of Open Source BI

33% 9% 12% 18% 21%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Database / DW platform Reporting and OLAP Data integration and ETL Embedded / application reports Advanced analytics None Considering Completed Evaluation Using in Production

45% 22% 7% 7% 9% 7% 3%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0‐49 50‐100 100‐499 500‐999 1‐5 TB 5‐25 TB >25 TB

81% of the sample < 1TB

Data size for all survey respondents including those using proprietary databases.

March 2009

Mark R. Madsen

Why did BI software evaluations fail?

25% 26% 27% 41% 56% 0% 10% 20% 30% 40% 50% 60%

Required more expertise than expected Difficulty integrating into environment Lack of available consulting Scalability problems Missing or incomplete features

There’s still work to be done

Data is the future

March 2009

Mark R. Madsen

Questions?

“When a new technology rolls over you, you're either part of the steamroller or part of the road.” – Stewart Brand

March 2009

Mark R. Madsen

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

• pen source adoption

survey at

http://bitly.com/scRhF

The survey is running until May 30, 2009.

March 2009

Mark R. Madsen

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

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.

‘

MySQL Conference & Expo Bruce Belvin

Company Mission

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

Open Source Components

SUSE Linux Enterprise

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

Vertical Landscape

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

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

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

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

Scope of Online Advertising

55

Delivers the right ad to the right person Collect Metrics for performance measurement and analytics Dynamically builds pages for visitor using predictive models

Business Challenges

56

Performance Reports Internal Applications Revised Models Web API Analytics Data Mining Model Development

Our Stack

CentOS MySQL BIRT Hibernate Apache Camel Kettle Hadoop

Best Practices

58

• Use analytics to design and test

advertising models using only relevant dimensions

• Gather and determine business

requirements before embarking

• n the journey
• Build an infrastructure plan that

will support the data collection and analytics platform

The Role of Open Source

59

• Several important innovations in data

processing have been driven largely by

• nline 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

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

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

March 2009

Mark R. Madsen

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

• pen source adoption

survey at

http://bitly.com/scRhF

The survey is running until May 30, 2009.