15.

965 Technology Strategy

TIBCO’s Business Intelligence Offerings:
Strategic Recommendations
May 3, 2009

Rajeev Kozhikkattuthodi
Katie Orthwein
Sebastian Robles
Hamid Salim
 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
IT Eras Mainframe Computing Client-Server Computing Cloud Computing

1960 1970 1980 1990 2000 2010

Epochs

Decision Support Systems Business Intelligence Business Intelligence 2.0

Model-driven DSS OLAP CEP

Episodes

Data-driven DSS Knowledge-driven In-memory analytics

Web-driven Columnar DB

Key Decision Support Business Business

Parameter Systems Intelligence Intelligence 2.0
Period Mid 60’s - Mid 80’s Mid 80’s – c. 2007 c. 2008 onwards
Used for Offline reporting, Offline analytics, planning Predictive, Real-time and
Decision support offline decision support
Primary users Data Analysts , Specialists Data Analysts , Specialists, Business users , Analysts,
users, Some business users Specialists
Time to Report High High Low
(1 week – 30 days) (1 day – 30 days) (5 sec – 1 hour)
Dataset Size Low Medium High
(100s of MB – 1 GB) (100s of GB – Several TB) (Several TB – Several PB)
Quality of Below Average Average High
insight
Visualization Below Average Average Very High

Predictive None Low High

capability
Interactivity None Low High
 BI 2.0 in the Enterprise IT Context

Applications BI 2.0

B2B
Internal B2C Apps Traditional
Apps Analytics
Apps Analytics
2.0
ERP

CEP

Legacy
ETL
Interfaces SOA / EAI

Enterprise
OperationalData
Operational DataStores Datawarehouse
Stores
TIBCO’s presence in Forrester’s BI Stack

• Fragmented asset base

• Boosted by SpotFire acquisition
• Strong incumbent footprint
 Trends shaping Demand Opportunity
Technology Trends
Service Oriented Architecture
Software as a Service
In-Memory Analytics
Unstructured data
Column-Oriented DB
Rich Visualization
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
 ISVs and Enterprise IT Offerings
Apps Legacy EAI Data Traditi CEP BI 2.0 HW Best in Class
bases onal BI
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

Demand Large Enterprise Small / Medium Business

Opportunity Banking Retail Manufacturing Telecom Healthcare Others
Distributed DB
Predictive Modeling
Visualization
Ad hoc Query
Software

Business Integration
Ecosystem
Dashboards
OLAP
Reporting
Databases
HW

Technical
Architecture Traditional BI BI 2.0
 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 Advanced End-to-end Business Tight
integration and visualization solutions, Intelligence integration
ease of use and tight leader in tool for every with back-
integration “modern use case, less end systems,
with backend unified emphasis End-to-end
systems architecture” placed on systems
integration
 BI Market Share

2006 BI Market Share 2007 BI Market Share

19%
18.20%
31% Business Objects 25.80% Business Objects
SAS Institute SAS Institute
Cognos Cognos
Microsoft 14.50% Microsoft
14%
Oracle Oracle
7.90%
SAP SAP

7% Others Others
9.40% 13.70%
5% 14%
10.60%
10%
 Insights about the future of BI

Prediction
Through 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.
Insight
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 Firms need to move away from engineering for
total budget for BI engineers and focus on how to better meet the
needs of their enterprise clients.

By 2012, one third of analytic application applied to Offering a complete end-to-end solution package will
business processes will be delivered through coarse- become less important in the future. Firms should
grained application mash-ups. instead focus attention on functionality. Best-in-class
producers will benefit from this shift.

By 2010, 20 per cent of organizations will have an Firms should focus on industry specific applications
industry-specific analytic application delivered via delivered over the web.
software as a service (SaaS) as a standard
component of their BI portfolio.
 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

• Rationalize technology portfolio around solution themes

• Consider stronger alliances with SAP and Microsoft

EAI CEP New BI

IBM
Oracle
Legend: No Presence
Microsoft
Presence
SAP
Thank you! Questions?