Open Source BI
Researchers note that the solutions BI with the open code become more and more mature and approach on functionality the commercial analogs therefore more and more companies consider the Open Source BI model as an effective remedy of cost reduction from use of business and analytical tools.
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Market development of open source BI
The situation with BI solutions open source cardinally changed for the last few years, Gartner considers. It is unlikely any organization considered BI solutions open source till 2004, not to mention deployment of such systems for a large number of users, however in the last several years this direction shows considerable growth rates.
Though average contract amount according to BI solutions open source remains approximately at the level of $30 thousand for an annual subscription, some contracts considerably exceed the amount of $500 thousand for a long-term subscription that corresponds to the price level of many commercial developers.
Though BI solutions can be open source unrolled in the organizations of any industry, the bigger number of implementations is observed in the financial sector and the sphere of telecommunications. Open source code systems meet in mid-size companies more often and also in the government and in public sector, health care and production less often in the companies with the smaller budget.
Many software developers use BI open source code systems, adding it as additional functionality to the applications. Besides, system integrators began to develop the practice around technologies open source. They also implement BI platforms, generally reports and dashboards (dashboards), within the basic agreement.
Researchers note that the solutions BI with the open code become more and more mature and approach on functionality the commercial analogs therefore more and more companies consider the open source BI model as an effective remedy of cost reduction from use of business and analytical tools.
"Open" BI systems: pros and cons
Open source and BI remain two segments of the software market where the Forrester Research notes the growing interest of users and also the increasing penetration of solutions. As of August, 2010, about 7% of the polled Forrester of the companies used BI solutions open source (for comparison – more than a half of the same companies in similar timepoint used open source operating systems).
What of below the listed open source solutions are used by your company?
Forrester Research, August, 2010
Benefits of use of open source BI, according to experts of Forrester, are similar that they are characteristic also of other classes open source of products:
- Low capital investments (capex): the main quality which declines users exactly towards use of open source BI. Software is free, however, it does not cancel expenses on support of the solution, as from the external supplier or the system integrator, and efforts of an internal command which also should be paid.
- Flexible sources of support: so far as concerns purchase of a proprietary system, the cost of the annual support agreement which is 20-25% of the budget is considered normal. Such support guarantees two opportunities: address in a support service and update a product to new versions. These options are paid even if they are not used. In a case with open source BI customers always have an opportunity to refuse support, to replace provider of service or to invest means in creation of own support service.
- Ample opportunities for integration: in a case with open source BI there are no restrictions for integration of such systems into other corporate applications. The problem of mismatch of API does not exist so such integration can it is necessary be performed as deeply.
- Participation in "fate" of the solution: the companies using open source products throughout long time note the following phenomenon. The lack of the commercial closed code erases barriers between users and developers so the enterprises can monitor changes in a core of a product and even latently to have an impact on them.
However, use of open source at the enterprise level traditionally is considered with care as use of the system developed by free community with whatever enthusiasm they did it, always forces to consider risk of support of such system further. More precisely, lack of such support. Therefore more and more number of the companies select the third model – commercial open source BI as it combines advantages of the first two approaches.
Competitive situation: leading suppliers
According to the research Forrester Wave for 2010, the leader in the open source BI market of systems is Actuate BIRT.
Forrester Wave: Open Source Business Intelligence
Forrester Research, 2010
In a segment of the systems having strong positions in the market, Forrester placed Spago BI, Pentaho Enterprise, Jaspersoft Enterprise and Pentaho Community. According to analysts, these solutions are comparable among themselves. It is interesting that boundary provision between a segment of applicants and a segment of systems with strong reputation occupied the Eclipse BIRT systems. The Jaspersoft Community system is also placed in a segment of applicants. The last two cannot be considered as industrial BI platforms so far, however, in some cases they can act as solution best-of-breed.
It is interesting that Gartner in the report on the open source BI market as of the beginning of 2010 called the largest suppliers in this market the following companies: Actuate Software Jaspersoft Jedox Pentaho and SpagoWorld.
Economic effect of open source of BI projects
The corporation Pentaho, Open Source developer of a BI system, conducted a research, BI systems with the open code are how effective. During the research analysts analyzed expenses on implementation and support of the BI solutions leading in the market in addition to Pentaho BI: IBM Cognos MicroStrategy Oracle BI and SAP Business Objects. They came to a conclusion that costs of implementation and support of open source of BI systems it is significantly less in comparison with commercial products.
Cost reduction within three years when using open source of BI systems
Pentaho, 2010
So, for the small BI project economy from open source of a system can make up to 50% of project cost or about $36000 in comparison with proprietary solutions, the report says. For the BI implementations expected 500 users and more economy can make up to 90% or about $1.5 million in terms of money.
Key indicator for calculation of cost of ownership of analytics took the cost of use of the solution in terms of one user within three years. Results are ranged on specific vendors and scale of projects. In terms of the scale of analytics select three main types of the BI project: small (up to 25 users), average (up to 100 users) and large (up to 500 users and more).
Costs for one user of a BI system during the three-year period, depending on the scale of the project and vendor
Pentaho, 2010
Among the leading commercial BI systems the most expensive in relation to large projects are solutions of SAP: the cost of ownership of these solutions within three years counting on one user will be more than $4200. For the project of average scale a maximum amount counting on one user – at Oracle (also more than $4200), and for the small project – at IBM Cognos (more than $4000). At the same time, Cognos is most profitable from the point of view of TCO in relation to the big project on number of user licenses.
One of pacing factors of economy of total cost of ownership (TSO) is the fact that in a case with Open Source BI systems there is no need to purchase licenses, including to buy in addition them in process of growth of business and increase in number of users of the solution. Thus, service support remains the main article of an expense for such solution.
Free reports
The Forrester Wave: Open Source Business Intelligence (BI), Q3 2010
See Also
Business Intelligence, BI (world market)
Trends of development of the world market of BI
Business Intelligence (Russian market)
Notes
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