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

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RAPID, AGILE DATA STRATEGIESFor Accelerating Analytics, Cloud, and Big Data Initiatives.

ROI Justification in Data Virtualization

Paul Moxon

Head of Product Management, Denodo

Lakshmi Randall

Head of Product Marketing, Denodo

Twitter: @LakhmiLJ

Agenda

1.The Components of ROI

2.Lower TCO with Data Virtualization

3.Business Impact of Data Virtualization

4.Summary

3

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.

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

Lower TCO with Data Virtualization

6

Areas of Cost Reduction With Data Virtualization

1. Development and Test cost savings

2. IT Operations cost savings

3. Non-IT cost savings

7

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.

Gartner Peer Insights – Speed of Deployment

10

Integration and Deployment

Project Size

Development and Test Cost Savings - Metrics

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

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.

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.

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)

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.

Business Impact of Data Virtualization

18

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

Digital Transformation Requires Agile Data Strategy

20

Agile Data Strategy Requires Agile Technology a.k.a. Data Virtualization

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

Summary

22

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

Q&A

Thank you!

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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