mt28 forrester study: hadoop delivers 97% roi in six months
TRANSCRIPT
MT28Forrester Study: Hadoop delivers 97% ROI in six months
Anthony DinaNA Director of Big Data & Analytics, Dell EMC
With nineteen years in the IT industry, Anthony Dina serves as the North America Director of Big Data & Analytics at Dell EMC. He leads the team of solutions architects and Enterprise Technologies with expertise in modern data pipeline and business intelligence. Anthony’s team works with customers on how to transform their business to be digital-first and data centric.
Prior to this, he held multiple positions in product development and in the field including executive director of strategy and director of solutions marketing. He as earned two masters degrees: MBA from University of St. Thomas; and MFA from Cranbrook Academy of Art.
∞ Building a data-driven organization is essential ∞ Today we are at a critical inflection point ∞ Organizations must change or become irrelevant
The Digital Tranformation Index
Dell EMC is powering digital transformation
Don’t be left behind
Change drives opportunity
73%say a centralized
tech strategy needs
to be a priority
66%are incentivized to
invest in IT
infrastructure and
digital skills
leadership
72%plan to expand their
software
development
capabilities
Source: Digital Transformation Index, October, 2016
Research by Vanson Bourne & Dell Technologies exploring the implications of digital disruption around the world, how companies are transforming to meet changing
customer demands and business leaders’ plans to succeed in the connected future.
Data-driven organizations are more effective
Data from Dell Global Technology Adoption Index, November 2015
greater revenue growth for businesses that leverage data effectively
50%
But 44%of organizations do not know how to start….
Become data-driven. A journey begins with a single step.
Align IT/business goalsImprove operational efficiencyTransform your organization
Align business and IT
Organizational goals Dell EMC solutions
Utilize ALL data to deliver deeper insights and enhanced data-driven decision making.
Reduce TCO and risk by integrating with existing investments for greater ROI
Provide flexibility in tools and applications for improved productivity.
Improve outcomes
Control costsS
Empower end users
Analytics
Infrastructure
Integration
Range of solutions
44% of organizations still struggle with how to approach Big Data
S e r v i c e sData from Dell Global Technology Adoption Index, November 2015
Enter Hadoop:
Transforming how to use data
Enter Hadoop:
Transforming the way we approach data
Hadoop
Distributed File
System (HDFS)MapReduce
Solution: Hadoop for Big Data
• Consolidates everything – All data in one place and stored in one file system (HDFS)
• Excels at complex analysis – Massively parallel analysis across multiple nodes
• Scales economically – Installs on standard servers and is open source
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What makes Hadoop unique?
• Hadoop is an open source highly scalable, affordable platform that includes consolidated data storage (HDFS) and processing (MapReduce)
• Designed to manage Big Data sets and volumes
Analytics
Infrastructure
Integration
Easy | Scalable | Secure
Dell EMC ClouderaHadoop Solution
Dell EMC QuickStartfor Cloudera Hadoop
http://www.dell.com/learn/us/en/04/business~solutions~whitepapers~en/documents~case-study-tei-dell-cloudera-hadoop-intel-solution.pdf
Forrester Total Economic
Impact™ (TEI) StudyA TEI is a comprehensive methodology to
determine the anticipated value of a product
or a solution to organizations.
The study is based on research, interviews
and risk assessment.
TEI Framework and Components
Total
Economic
Impact
RISK
Benefits
(Impact on Business)
Costs
(Impact on Budget)
Flexibility
(Options)
Perform due
diligence
Conduct customer
interviews
Construct financial
model
Develop case
studyPresent results
The Forrester TEI™ framework centers on quantifying benefits, capturing costs, evaluating flexibility, and adjusting risk.
TEI Approach and Methodology
A commissioned study conducted by Forrester Consulting on behalf of Dell and Intel
Composite organization• US-based B2B data and analytics services company
• $50M annual revenue
• Initial Hadoop implementation – 24 nodes for 300 TB
• Three year growth to 96 nodes for 1500 TB
ROI:
97%*
NPV:
$5.6M
Payback
6 Months
Forrester determined that with three year, adjusted for risk, the financial impact of the Dell | Cloudera Apache Hadoop Solution, accelerated by Intel, has on a representative organization is…
Forrester TEI Study:Dell | Cloudera | Intel Apache Hadoop Solutionaccelerates new product revenue.
A commissioned study conducted by Forrester Consulting on behalf of Dell and Intel.
*A 97% ROI equates to $1.97 of benefit for every $1.00 spent.
Benefit NPV
Faster time-to-value $0.8m
New business revenue $3.7m
Legacy hardware savings $6.4m
Operational cost savings $0.5m
Total benefits (risk-adjusted) $11.4m
97% ROI fueled by new business and cost avoidance
Costs NPV
Software license costs $1.0m
Hardware costs $2.2m
Implementation cots $0.2m
Hadoop Operational costs $2.4m
Total costs (risk-adjusted) $5.8m
$5.6m NPV = $11.4m return - $5.8m investment
A commissioned study conducted by Forrester Consulting on behalf of Dell and Intel.
Required investments balanced between capex & opex
Costs NPV
Software license costs $1.0m
Hardware costs $2.2m
Implementation cots $0.2m
Hadoop Operational costs $2.4m
Total costs (risk-adjusted) $5.8m
Risk-adjusted Costs.
• Initial Cloudera Enterprise software license costs of $180,634.
• Hardware costs of $555 per terabyte to build out the Hadoop platform.
• Support costs equivalent to four FTEs to implement Hadoop
• Ongoing operation costs of $2.4 million over three years.
A commissioned study conducted by Forrester Consulting on behalf of Dell and Intel.
Benefit NPV
Faster time-to-value $0.8m
New business revenue $3.7m
Legacy hardware savings $6.4m
Operational cost savings $0.5m
Total benefits (risk-adjusted) $11.4m
Return fueled by new business & legacy cost avoidance
Risk-adjusted Benefits
• Faster time-to-value, leading to $900,000 of increased margin on new client services.
– deploy six months quicker
– $5m rev in first year at 20% a margin rate
• Rev growth from new services led to $3.7m of incremental income over 3 years
• Avoided $6.4m infrastructure costs
• Repurposed legacy database FTEs, reducing costs by $450K
A commissioned study conducted by Forrester Consulting on behalf of Dell and Intel.
Payback occurred in 6 months
A commissioned study conducted by Forrester Consulting on behalf of Dell and Intel.
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Flexibility
One interviewed customer said, “Eighty percent of our workload is transforming the data into the format that the end user wanted.”
With the Dell | Cloudera | Syncsort Data Warehouse Optimization — ETL Offload
solution, these jobs can now be completed in a fraction of the time while freeing up expensive capacity in legacy databases.
This interviewee went on to say, “Although we didn’t retire the mainframe, we reduced MIPS from the mainframe and provided the business with faster results.”
Large Retailer puts Big Data into Action Went from a 8-node Hadoop PoC to >300 nodes
Challenges
Need cost-effective ways to derive intelligence from enormous data stores while radically reducing costs.
Use Case Implementations
• Recommendation engine
• ETL mainframe replacement
• Supply chain analysis
• Central data repository
• Price setting
• Logistics planning
Results from Hadoop Solution
• Reduced costs per millions of instructions per second (MIPS) up to 160 times
• Cut batch processing time < 20 hours to > an hour
• Improved decision support with better data faster
• Delivered rapid and cost-effective scalability
Q & A
For more information:
Visit: Dell EMC World Big Data and Analytics Booth
Hadoop and Spark Presentation Pod
Customer-360 Demonstration Pod
Search: Dell.com/BigData or EMC.com/BigData
Contact: [email protected]
