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SAS joins crowded vendor landscape moving to bring affordable BI to the masses

By | September 9, 2010, 11:18am PDT

Summary: Expect a vendor slugfest on the lower end of the data warehousing and BI market in the next few years. It will be fascinating to see how these vendors will both enter the entry-level markets, while also seeking to maintain the high-end pricing for the largest users. There could be a value sweet spot in the middle.

We’re only in the first years of the data-driven decade. More companies will be making more of their business decisions — and also added revenue — on their own data services.

Investing in good data analytics infrastructure now allows companies to know themselves and their markets far better. It eliminates guessing and brings more of a real-time picture of their operations, challenges and opportunities.

Good data organizers can also then share or sell that data and analytics to partners and/or customers, and acquire meaningful additional outside data themselves from other data services purveyors.

The trick for IT is to allow their companies to extract business intelligence (BI) from these vast data sets at an affordable price. And more companies, that is small and medium businesses, will want in on the data and analytics revolution. Competition will drive them to.

So what’s needed now is a change in the economics of business intelligence via value-oriented offerings for the mid-market. Traditional entry points for large data warehouses are often $500,000 and up, not to mention the ongoing operations costs and need to acquire data and systems management skills.

BI comes to wider audience

SAS at the A2010 conference last week launched Rapid Predictive Modeller (RPM), a service targeting non-analytical business users to help create more BI reports. SAS RPM joins the latest release of SAS Enterprise Miner 6.2, which includes an add-in for Microsoft Excel.

These steps toward making BI and reports available to more users and uses at a lower price will no doubt be welcome to SMBs and enterprises dripping in data, but struggling to make sense of it all.

We’re only now seeing massively parallel data warehousing appliances priced at the $50,000 mark. And these appliances tend to be cheaper to administrate and operate. Aster Data Systems, for example, recently came out with a lower-cost competitive solution dubbed MapReduce Data Warehouse Appliance – Express Edition. Aster also has a new CEO, Quentin Gallivan, announced today.

Aster, Netezza and Teradata are all focusing on the mid-market. Green Plum was recently bought by EMC. A recent Forrester report put Teradata, Oracle, IBM and Microsoft at the head of the data warehouse market, with Netezza, Sybase and SAP noted for niche deployments.

Oracle and HP teamed up two years ago on the Exadata appliance for Oracle warehouse workloads. And now Oracle is putting its Sun Microsystems acquisition to use for its own Exadata appliances line-up.

Expect a vendor slugfest on the lower end of the data warehousing and BI market in the next few years. It will be fascinating to see how these vendors will both enter the entry-level markets, while also seeking to maintain the high-end pricing for the largest users. There could be a value sweet spot in the middle.

We should therefore expect to see prices come down on these systems across the board, making the systems more attainable for even more types of uses and users.

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Dana Gardner is president and principal analyst at Interarbor Solutions, an enterprise IT analysis, market research, and consulting firm.

Disclosure

Dana Gardner

Dana Gardner is president and principal analyst at Interarbor Solutions, LLC, a New Hampshire-based IT analysis and new media content production and consultancy firm that he founded in 2005. He produces a series of podcast/videocast/transcript/blog content shows, called BriefingsDirect[tm/sm], some of which are sponsored and which he blogs on. Such sponsored shows are declared individually as such and by what organization or company. When Dana blogs on ZDNet on companies that he does have, or has had, consulting and/or sponsorship relationships, he declares that in each blog entry. There is no connection between the negotiation of such sponsorships and the opinions expressed by Dana here on ZDNet. To date, the following organizations/companies have sponsored, or do sponsor, some BriefingsDirect content, or have consulting relationships with Dana: Active Endpoints Akamai Technologies Aster Data Systems BP Logix Business Technology Quarterly CA Compuware Electric Cloud Genuitec Gerson Lehrman Group Greenplum Hewlett-Packard iTKO JustSystems North America, Inc. Kapow Technologies LogLogic Nexaweb Technologies, Inc. The Open Group Paglo Panda Security Platform Computing Progress Software rPath Sailpoint Splunk TIBCO Software Weblayers Workday WSO2 ZDNet As a matter of CNET Networks and Interarbor Solutions policies, when Dana covers an organization that is also a sponsor of a BriefingsDirect-produced podcast, videocast or any other content, a disclosure will be included with the coverage. Updated (1/4/2010): Instead of providing a disclosure on just those editorials (blog posts, etc.) that intersect the above listed companies, we have changed the policy to include a link to this full disclosure at the end of every one of Dana's blog posts. In the case of audio or video-based coverage, such disclosures will be provided within the editorial content itself.

Biography

Dana Gardner

Dana Gardner is president and principal analyst at Interarbor Solutions, an enterprise IT analysis, market research, and consulting firm. Gardner, a leading identifier of software and cloud productivity trends and new IT business growth opportunities, honed his skills and refined his insights as an industry analyst, pundit, and news editor covering the emerging software development and enterprise infrastructure arenas for the last 18 years.

Gardner tracks and analyzes a critical set of enterprise software technologies and business development issues: Cloud computing, SOA, business process management, business intelligence, next-generation data centers, and application lifecycle optimization. His specific interests include Enterprise 2.0 and social media, cloud standards and security, as well as integrated marketing technologies and techniques.

Gardner is a former senior analyst at Yankee Group and Aberdeen Group, and a former editor-at-large and founding online news editor at InfoWorld. He is a former news editor at IDG News Service, Digital News & Review, and Design News.

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