The Business Intelligence Blog

A must read article for BI entusiasts on the recent consolidation of the BI industry. Well researched and informative article by Stuart Lauchlan, MyCustomer.com.

Still, it’s encouraging that the BI market is still showing signs of life after a period of considerable turmoil and consolidation over the past two years with IBM, Oracle and SAP swallowing up Business Objects, Cognos and Hyperion Solutions. Since March 2007, the three enterprise giants have dished out $15 billion to bolster their BI credentials. Oracle offered $S3.3 billion for Hyperion, SAP pitched $6.8 billion for Business Objects while picking up Cognos cost IBM $5 billion.

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Another development is the blurring of boundaries as BI starts to encroach on other technology areas. For example, Forrester Research cites the merging of BI and search technologies to provide business people with better context and information to make daily decisions. “As search and BI get ever closer, the lines could eventually blur to the point of simply going away,” said Forrester in its ‘Search + BI = Unified Information Access’ report. “This will help bridge the artificial system boundaries between structured data and unstructured content. It will not only affect the interfaces we use to search for, discover, analyse, and report on what we need to know, but help us learn more about what we don’t know.”

This is one of the immediate advantages of convergence between BI and search – the ability to discover things you didn’t know you didn’t know. Forrester noted: “As search gets more powerful and begins to understand the meaning behind unstructured text, entity extraction and other linguistic analysis methods will be able to be used to reveal unforeseen and highly illuminating connections among documents or between documents and data.”

A trio of IT vendors, including IBM, insurance software provider Sapiens Americas, and Millbrook, an IT consultancy to the insurance industry, have teamed up to deliver an on-demand business intelligence (BI) offering for small and mid size insurance companies. The offering, called Sapiens INSIGHT for Business Intelligence, will be based on IBM’s Cognos BI software, and provide smaller outfits an array of BI capabilities normally available only to larger companies.

For small and mid size property and casualty (P&C) insurance companies, the capability to analyze data effectively and efficiently can make the difference between surviving in today’s competitive environment, and succumbing to market forces. However, smaller P&C providers typically can’t afford the multi-million-dollar price tags that sophisticated BI implementations carry.

IBM, Sapiens, and Millbrook are looking to address that functionality gap with Sapiens INSIGHT for Business Intelligence, a new hosted BI offering that aims to deliver enterprise-class BI capabilities at a SMB price, and within SMB implementation timeframes.

Read more from IT Jungle.

Given the frantic oil price rise, here is some insight into how oil companies use Business Intelligence to maximize profits. Great & Must Read.

Every Wednesday morning, the shouts and hand gestures that make the Nymex trading floor in New York frantic begin to calm. Petroleum traders are waiting for the release of data from the U.S. Energy Information Administration (EIA) on countries’ inventories of crude oil and gasoline, as well as world crude prices.

At 10:30 a.m., the EIA’s website sees a storm of activity: 1,000 page views per second for 15 seconds, says Charlie Riner, a lead analyst for the site. Oil companies, commodities traders, analyst firms, and government agencies in the United States and other countries have written bots to collect the data. Then traffic ebbs.

In the oil and gas business, you are what you own. The amount of crude waiting to be refined, or the already-processed liquid in storage tanks ready to be sold and delivered, represents much of a company’s value at a given moment. As a refiner, Valero buys barrels of oil to heat and pressurize into other products, such as diesel fuel, asphalt and lubricants. The $95 billion downstream company owns 17 refineries that together can produce 3.1 million barrels of product per day.

But Valero doesn’t sell that much in a given day so it must store finished goods until they’re ready to be shipped to customers. The company tracks its own inventory movements the way a first-time mother studies her infant. How much of which products did we sell this morning? How about now? And now?

Market analysts run inventory reports “a few hundred times a day,” says Kirk Hewitt, vice president of accounting processing optimization . As the cost of crude fluctuates during trading hours, Valero sales and marketing staff want frequent updates so they can sell products at the most profitable price and buy crude to feed their refineries at the best price.

“We’re dealing with a commodity whose price changes every second,” Hewitt explains. “So our margins change every minute. Our costs change every minute.”

From RedmondMag article on Microsoft’s Sharepoint

Financially, SharePoint represents a big plus in Microsoft’s product stack. The SharePoint 2007 product generated $800 million in revenues in Microsoft’s fiscal-year 2007, Creese said. That figure is $50 million more than the total revenue generated by Salesforce.com — a hosted customer relationship management solution provider — in its fiscal-year 2008, he added.

Creese offered a caveat for organizations expecting SharePoint to work right out of the box. The solution may require some customization to meet an organization’s needs.

“SharePoint has been a huge success in the market,” Creese said. “However, what we’re starting to find is that a high-tuned SharePoint installation requires custom coding and third-party” support, including perhaps third-party software.

From Fin Express

The $1.1-billion company, that was acquired by IBM in January 2008, has currently about $4 million revenue from Indian operations. The company plans to take it to $40 million by next year and $45 million by 2012.

Joyer Mascarenhas, AVP, APAC professional services, Cognos, said, “India is an important geography for us and we are looking at more than 150% growth by next year. Most of our revenues come from enterprise and SMEs.”

Here’s a follow-up to the previously posted series, Breakthroughs in Analytics, from Tech News World.

In the latest update, Ned Madden talks about the various tools and vendors in the Analytics domain. Read more.

Today’s software packages are much more focused on the actual application of analytical approaches to specific types of decision problems and specific types of industries, according to Anthony Milano, GMI’s VP of professional services.

“In the old days, tools were typically very general purpose in nature,” Milano told TechNewsWorld. “Now, oftentimes, tools are much more focused on helping users solve specific types of problems in business verticals and industries.”

Vendors are even adapting their core analytical engines to specific needs by creating a packaged solution that includes a version of the engine, analytic models, processes, methodologies, add-ons and extensions that allow the product to solve a very specific need, Milano said.

“Importantly, this type of solution minimizes the amount of time required to solve the problem and makes it easier for the client to get the job done without requiring a deep topic expert,” he added. “In effect, these packaged solutions embed the expertise in the solution.”

Milano stressed the importance of analytics solutions that are provided under the rental model from an application service provider (ASP) as Software as a Service (SaaS).

“These software delivery models have proved to be very cost-effective and efficient for customers, particularly when all the costs of owning and installing your own software are understood,” he said.

From the Press Release -

Greenplum, a leading provider of database software for business intelligence, and Sun Microsystems, Inc. (NASDAQ: JAVA) today announced that Reliance Communications is using Greenplum Database, running on the Sun Data Warehouse Appliance, to power a range of applications, from legal and regulatory compliance to call detail record analysis.

Greenplum Database is the world’s fastest, most cost-effective solution for analyzing the massive amounts of information generated by surging worldwide usage of wireless and broadband services. The Data Warehouse Appliance powered by Sun and Greenplum is the industry’s first cost-effective, high-performance super-capacity data warehouse appliance. Purpose-built for high-performance, large-scale data warehousing, the solution integrates best-in-class database, server, and storage components into one easy-to-use, plug-and-play system.

“The Sun Data Warehouse Appliance running Greenplum Database is helping Reliance meet its goal of superior responsiveness in a challenging data environment — one that is characterized by rapid growth and increasing user demand,” said Raj Joshi, VP and Head (Decision Support Systems) at Reliance Communications Limited. “Deploying the joint Greenplum and Sun solution improved our response times and enabled Reliance Communications to improve our data management.”

Reliance Communications Limited is the telecommunications company of Reliance ADA Group which is one of India’s largest industrial groups. Reliance Communications is known for its innovative market offerings and practices. As Reliance has grown to more than 40 million subscribers, providing accurate and timely data support and analytics to all parts of the business has been a challenge. Turning an ad hoc request from historical records could take multiple hours; even loading a day’s worth of data into the system could take up to three hours.

HP Unveils Worlds First 2-in-1 Server Blade for Cloud Environment

HP released a new ProLiant blade enclosure Wednesday with higher server densities designed for cloud computing and other computing-intensive applications.

With up to 32 server nodes in a single 10U blade chassis, the new BladeSystem can scale up to 128 servers, 1,024 CPU cores and 2TB of RAM in one standard-sized rack consisting of four enclosures, HP says. The new blade offers double the density of its HP predecessors by fitting two servers into each slot, says Paul Miller, HP’s marketing vice president.

Amazon finding money in the ‘cloud’

But Bezos simplified the business of Amazon.com — which has ventured into a whole new arena of computing services — by breaking down its customers into three groups: consumers, third-party sellers and developers.

Third-party sellers account for 30 percent of the units sold on Amazon, Bezos said.

The amount of bandwidth used by Amazon Web Services, which includes cloud computing and server storage space, recently surpassed the bandwidth used for its retail business, he said.

The Web services division was formed about four years ago.

News from TDWI Conference, Chicago -

At last week’s TDWI World Conference, held in Chicago, a bevy of vendors announced new DW appliance packages — with a twist.

In the past, several vendors have promoted the DW appliance as a technology which effectively sells itself — e.g., as a turnkey panacea for the performance, capacity, and cost issues that frequently combine to make high-end data warehousing so expensive.

At TDWI last week, however, three vendors (Dataupia Inc., ParAccel Corp., and Sybase Inc.) unveiled new DW appliance packages that they say are designed to address specific business problems.

Dataupia’s offering bundles the company’s Satori server appliance with best-of-breed data visualization software from Tableau Inc. ParAccel announced a new analytic appliance offering it co-developed with storage giant EMC Corp. Sybase unveiled an all-in-one, best-of-breed analytic appliance (complete with Sybase IQ, Sybase PowerDesigner, and Sybase ETL; BI software from MicroStrategy Inc.; and System p RISC/Unix servers from IBM Corp.). In all three cases, the vendors are emphasizing business practicality and business usability in addition to better and cheaper performance.