15.965 Technology Strategy

TIBCO’s Business Intelligence Offerings: Strategic Recommendations

Rajeev KozhikkattuthodiKatie Orthwein

Sebastian RoblesHamid Salim

May 3, 2009

Agenda

• Evolution of Business Intelligence 2.0• TIBCO’s BI 2.0 Footprint• Evolution of Demand Opportunity • Business Ecosystem• Strategy recommendations

All trademarks are the property of their respective owners

Executive Summary

A mid-size, enterprise focused ISV like TIBCO faces formidable challenges in the BI space. Our key recommendations are

– Adopt a “Direct to Business” solutions and sales strategy

– Integrate BI 2.0 capabilities into existing TIBCO products

– Rationalize technology portfolio around key solution themes

– Recapture value from SIs by creating “BI as a Service” solutions

– Retain platform neutrality, but invest in longer term partnerships with SAP and Microsoft

Evolution of Business Intelligence

1960 1970 1980 1990 2000 2010

Decision Support Systems Business Intelligence Business Intelligence 2.0

Mainframe Computing Client-Server Computing Cloud ComputingEp

iso

des Data-driven DSS Knowledge-driven

Model-driven DSS

Web-driven

OLAP CEP

IT E

ras

Columnar DB

In-memory analytics

Epo

chs

Key Parameter

Decision Support Systems

Business Intelligence

Business Intelligence 2.0

Period Mid 60’s - Mid 80’s Mid 80’s – c. 2007 c. 2008 onwards

Used for Offline reporting, Decision support

Offline analytics, planning Predictive, Real-time and offline decision support

Primary users Data Analysts , Specialists Data Analysts , Specialists,users, Some business users

Business users , Analysts, Specialists

Time to Report High(1 week – 30 days)

High (1 day – 30 days)

Low (5 sec – 1 hour)

Dataset Size Low

(100s of MB – 1 GB)

Medium (100s of GB – Several TB)

High (Several TB – Several PB)

Quality of insight

Below Average Average High

Visualization Below Average Average Very High

Predictive capability

None Low High

Interactivity None Low High

Internal Apps

Analytics 2.0

Enterprise Datawarehouse

Legacy Interfaces

Operational Data Stores

Operational Data Stores

B2B Apps

SOA / EAIETL

B2C Apps

ERP

BI 2.0 in the Enterprise IT Context

CEP

TraditionalAnalytics

BI 2.0Applications

TIBCO’s presence in Forrester’s BI Stack

• Fragmented asset base• Boosted by SpotFire acquisition• Strong incumbent footprint

Trends shaping Demand Opportunity

Changing role of IT from “running the business” to “changing the business”

“Consumerization” of information at the hands of IT-savvy business users

IT as a utility that business users can buy bypassing internal IT groups

Software as a Service

In-Memory Analytics

Service Oriented Architecture

Unstructured data

Column-Oriented DB

Technology Trends

Rich Visualization

ISVs and Enterprise IT Offerings

Apps Legacy EAI Data

bases

Traditi

onal BI

CEP BI 2.0 HW Best in Class

IBM

Oracle DB, Apps, HW

TIBCO EAI, CEP, BI 2.0

Microsoft

SAP-BO Apps, Traditional BI

SAS Traditional BI

Panorama

Progress

MicroStrategy Traditional BI

Actuate Traditional BI

Informatica Traditional BI

Info Builders

QlickTech

Legend: No Presence

Presence

BI Business Ecosystem

Large Enterprise Small / Medium Business

Banking Retail Manufacturing Telecom Others

Demand Opportunity

Business Ecosystem So

ftw

are

Databases

Technical Architecture BI 2.0Traditional BI

HW

Reporting

OLAP

Dashboards

Visualization

Ad hoc Query

Predictive Modeling

Integration

Healthcare

Distributed DB

Key Players and their Positioning

Microsoft TIBCO IBM SAP Oracle

Customer Business Business IT IT IT

Business Size S/M Traditionally L S/M/L S/M/L S/M/L

Pricing Competitive Competitive Premium Premium Premium

Focus Desktop

integration and

ease of use

Advanced

visualization

and tight

integration

with backend

systems

End-to-end

solutions,

leader in

“modern

unified

architecture”

Business

Intelligence

tool for every

use case, less

emphasis

placed on

integration

Tight

integration

with back-

end systems,

End-to-end

systems

BI Market Share

18.20%

14.50%

13.70%

10.60%

9.40%

7.90%

25.80%

2007 BI Market Share

Business Objects

SAS Institute

Cognos

Microsoft

Oracle

SAP

Others

19%

14%

14%

10%

5%

7%

31%

2006 BI Market Share

Business Objects

SAS Institute

Cognos

Microsoft

Oracle

SAP

Others

Insights about the future of BI

Prediction InsightThrough 2012, more than 35% of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets.

The business intelligence market is far from being saturated. Firms should move to capture customers from these untapped markets before their competition (especially since switching costs in the industry are high).

In 2012, business units will control at least 40% of the total budget for BI

Firms need to move away from engineering for engineers and focus on how to better meet the needs of their enterprise clients.

By 2012, one third of analytic application applied to business processes will be delivered through coarse-grained application mash-ups.

Offering a complete end-to-end solution package will become less important in the future. Firms should instead focus attention on functionality. Best-in-class producers will benefit from this shift.

By 2010, 20 per cent of organizations will have an industry-specific analytic application delivered via software as a service (SaaS) as a standard component of their BI portfolio.

Firms should focus on industry specific applications delivered over the web.

Medium Term Strategy recommendations

• Market TIBCO Spotfire, TIBCO BAM and TIBCO CEP as “BI 2.0”

• Leverage industry knowledge to develop niche solutions for specific industries (BI as a Service)

• Build a “Direct to Business” Sales model

• Revisit SI engagement model – recapture value from SI partners

• Capitalize on TIBCO’s presence in Enterprise Middleware, CEP and integrate it into BI products

• Selectively invest in – Private/Public Cloud Infrastructure management and governance

– Distributed Databases

– Visualization Technologies

• Retain “Swiss”-like neutrality between Java and .Net

Long Term Strategy Recommendations

EAI CEP New BI

IBM

Oracle

Microsoft

SAP

• Rationalize technology portfolio around solution themes

• Consider stronger alliances with SAP and Microsoft

Legend: No Presence

Presence

Thank you! Questions?