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TEI-Vertica-2021-06-21-final.pdf
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TEI-Vertica-2021-06-21-final.pdf
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A FORRESTER TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY MICRO FOCUS
The Total Economic Impact™
Of Vertica
Cost Savings And Business Benefits
Enabled By Vertica
MAY 2021
THE TOTAL ECONOMIC IMPACT™ OF MICRO FOCUS VERTICA
Table Of Contents
Executive Summary ................................................... 1
The Micro Focus Vertica Customer Journey ........ 6
Key Challenges ...................................................... 6
Solution Requirements ........................................... 6
Composite Organization ......................................... 7
Analysis Of Benefits ................................................ 8
Elimination Of Prior Data Warehouse Solution And
Reduction Of Data Storage Costs .......................... 8
Labor Savings Due To Reduction In Dedicated
Database Administrators ...................................... 10
Revenue Increase Due To ML Products And ML-
Driven Productivities ............................................. 11
Field-Service Application Cost Savings ............... 12
Value Of More Decisionable Business Insights
With Less Effort .................................................... 14
Unquantified Benefits ........................................... 15
Flexibility ............................................................... 15
Analysis Of Costs .................................................. 16
Implementation, Expansion, And Licensing ......... 16
Financial Summary ................................................ 18
Appendix A: Total Economic Impact ................... 19
Consulting Team:
Eric Hall
ABOUT FORRESTER CONSULTING
Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their
organizations. For more information, visit forrester.com/consulting.
© Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on
the best available resources. Opinions reflect judgment at the time and are subject to change. Forrester
®
, Technographics
®
,
Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other
trademarks are the property of their respective companies.
THE TOTAL ECONOMIC IMPACT™ OF MICRO FOCUS VERTICA
1
Executive Summary
Due to competitive pressures, the demand on companies’ data platforms has grown
dramatically to support digital transformation applications that require real-time ingestion
of new and existing data, extremely fast response times within large databases and
across multiple data stores, and machine-learning insights. Vertica supplies a unified
analytical data platform with fast multithread data loads, a query planner that integrates
across data stores, and a fast columnar database with built-in machine learning.
At its core, Vertica — the unified analytical data
platform from Micro Focus — is a high-speed
columnar database with built-in machine learning
(ML) and advanced analytics. It has easy-to-use tools
to support rapid data ingestion via parallel threads,
faster transformations done within the database, data
compression to reduce storage costs, and a query
planner that unifies data across data stores.
Combined with the platform’s stability and its
capability to be deployed across public clouds and in
enterprise data centers with cloud-native
architectures, the tools allow resources to do more
value-add work vs. monitoring and maintenance.
Flexible and competitive pricing can reduce data
platform costs by more than 50% more than
competitors.
Micro Focus commissioned Forrester Consulting to
conduct a Total Economic Impact™ (TEI) study and
examine the potential return on investment (ROI)
enterprises may realize by deploying Vertica. The
purpose of this study is to provide readers with a
framework to evaluate the potential financial impact
of Vertica on their organizations.
To better understand the benefits, costs, and risks
associated with this investment, Forrester interviewed
four decision-makers from organizations with
experience using Vertica. For the purposes of this
study, Forrester aggregated the experiences of the
interviewees and combined the results into a single
composite organization.
Prior to using Vertica, the organizations recognized
they were not prepared for digital transformation
initiatives. They lacked a standard, effective means to
build advanced analytics and machine learning into
applications, and their query response times couldn’t
support such applications from their data
warehouses. Worse yet, their environments were too
complex to centralize all the data stores they needed
for growing analysis demands. This left them with
even slower query performance across data stores, if
that was possible. They were not able to ingest data
quickly enough for real-time or near-real-time
analysis and response. Finally, growth in data
requirements led to performance issues,
maintenance challenges, and rising costs for data
warehouse licensing.
After investing in Vertica, the organizations reduced
costs while enabling digital transformation. They are
creating applications with machine learning built into
their core business areas including sales, marketing,
and finance. They are seeing increased revenue and
Return on investment (ROI)
385%
Net present value (NPV)
$10.14M
KEY STATISTICS
THE TOTAL ECONOMIC IMPACT™ OF MICRO FOCUS VERTICA
2
EXECUTIVE SUMMARY
other benefits from these applications that exceed
decision-makers’ expectations, and they have
accelerated the identification of additional use cases
to drive more digital transformation, such as product
development.
KEY FINDINGS
Quantified benefits. Risk-adjusted present value
(PV) quantified benefits include:
• Elimination of prior data warehouse solutions
and reduction of data storage costs, saving
$4,431,352 over three years. Interviewees said
replacing their organizations’ data warehouse
solutions with Vertica led to cost savings due to
the platform’s built-in machine learning and its
ability to improve query performance, ingestion,
and transformation, among other improvements.
Interviewees described various ways that their
organizations were able to reduce storage costs.
• Labor savings due to reduction in dedicated
database administrators, totaling $1,016,811
over three years. Vertica allowed the
interviewees’ organizations to reassign 50% of
their database administrators due to the
platform’s stability, ease-of-use, and capability to
improve technology related to columnar
databases.
• Revenue increase due to ML products and
ML-driven productivities, totaling $2,392,562
over three years. Interviewees said their
organizations’ original use cases typically
included sales and marketing improvements.
After seeing early success, decision-makers
identified new use cases in those areas, including
driving product improvements and customer
satisfaction.
• Field-service application cost savings of
$2,684,659 over three years. Each interviewee
said their organization had focus projects related
to its core competencies. With field service — a
common function within corporations that
parallels many customer experience areas —
interviewees said their organizations saw
considerable application opportunities that
transformed their business operations.
• Value of more decisionable business insights
with less effort, leading to benefits of
$2,250,000 over three years. Interviewees said
their organizations retired spreadsheet analyses,
automated multistep analyses, and used the
saved time to perform additional analyses.
Unquantified benefits. Benefits that are not
quantified for this study include:
• Broad level of comfort. Interviewees spoke
about the stability of Vertica and the lack of
concern they have about costs, scaling, load
times, response times, integration, monitoring,
and maintenance.
• Proof of concept (POC) shows proof of value.
Each of the interviewees’ companies had
successful POCs. Vertica was able to provide
increased scale, ingestion speed, integration,
response-time speed, and ease of use as well as
meet other company-specific needs.
• Unified data architecture that does more than
provide cost savings. Vertica’s query planner
optimizes retrieving data across multiple data
stores. When possible, replicating data costs
more and requires additional effort, and it also
introduces data-validation challenges.
• Having Vertica as part of the team.
Interviewees referred to Vertica as a partner that
provides access to knowledgeable engineers. A
lead analytics architect with a manufacturing
organization said: “Vertica has been instrumental
to our success. We have monthly technical
seminars, and [Vertica’s] technical people show
an interest in our success.”
THE TOTAL ECONOMIC IMPACT™ OF MICRO FOCUS VERTICA
3
EXECUTIVE SUMMARY
Costs. Risk-adjusted PV costs include:
• Implementation, expansion, and licensing
costs of $2,636,632 over three years.
Interviewees spoke of very successful
implementations, undisruptive expansions, and
licensing that worked for their organizations. This
saved them money vs. their prior data platforms.
The interviews and financial analysis found that a
composite organization experiences benefits of
$12.78 million over three years versus costs of $2.64
million, adding up to a net present value (NPV) of
$10.14 million and an ROI of 385%.
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