business intelligence posts - Business Tech

August 25, 2009 9:01 PM PDT

In a new study on open-source adoption in the business intelligence (BI) market, it's becoming clear that both the benefits and shortcomings of open source software are nearly universal across all technology segments.

According to the study by Third Nature (sponsored by Jaspersoft and Infobright), "the top reason for adopting is still cost savings, although reduced vendor dependence and ease of integration were close to the same level. The limiting of vendor technology lock‐in and freedom from deployment restrictions were key elements of reducing vendor dependence. Some companies used open source deployments as a means of keeping their incumbent vendors honest."

The statement above is hardly unique to BI, but is perhaps germane if only because BI solutions have for so long been hugely expensive and proprietary. In past discussions with Jaspersoft CEO Brian Gentile, he has stated that BI is the least agile piece of the enterprise puzzle. Open source BI solutions mean that customers can take matters into their own hands.

The study also makes some recommendations on evaluating BI and data warehousing tools, that again are relevant for any open source product.

Don't focus solely on cost savings.
Make open source the default option
Plan to augment, not replace, existing software with open source.
Consider developing open source policies.
Evaluate open source like any other software.

In the end, software needs to solve business problems. The adoption of open source gives users more alternatives to address their issues, be it cost reduction, increased business agility or just a new way to manage their data.

Follow me on Twitter @daveofdoom.

Originally posted at Software, Interrupted

Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom.

Tags:: Open Source,; Jaspersoft,; Infobright,; Business Intelligence

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January 28, 2009 7:10 AM PST

Sybase earnings sail past Street's expectations

by Dawn Kawamoto

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Correction: Sybase reported a 13 percent increase in license revenue, based on constant currency.

Update at 7:49 a.m. PST, with comments from the conference call.

Sybase posted fourth-quarter results on Wednesday that sailed past Wall Street's earnings expectations.

With earnings driven by strong growth in its core database business, company shares jumped 7.8 percent to $27.87 in early-morning trading.

Revenues during the quarter rose to $305.1 million, up 3 percent over the same time a year ago. Wall Street was expecting the enterprise software company to make $300.3 million, according to Thomson Reuters.

Sybase reported net income of $47.3 million, or 59 cents a share, compared with net income of $73.5 million, or 81 cents a share, a year earlier.

When excluding one-time charges and special items, the company posted earnings of 78 cents a share, soundly beating Wall Street's expectations of 61 cents a share, according to Thomson Reuters.

"They really blew it out this quarter, " said Terry Tillman, an analyst at Raymond James & Associates. "The theme for them is, they have the right kind of products in this type of market. Their database had one of the strongest product cycles in a decade."

Sybase posted a 38 percent increase in database sales, as customers continued to spend on such enterprise software as their data capacity needs continued to grow, despite recessionary times, noted Tillman.

He also noted that customers have been increasingly responding well to efforts Sybase has made in retooling its database, which began in late 2005. The company's Advanced Server Enterprise 15, otherwise known as ASE 15, has gained traction, and Sybase has taken advantage of its database with additional features to sit on top of the software, such as analytics.

Tillman noted that business intelligence software is performing well in this recessionary climate, as customers are particularly eager to gain insight into their own businesses.

John Chen, Sybase CEO, said during the conference call: "Clearly, we are taking share from our (database) competitors with these results."

During the quarter, Sybase reported that new licenses grew 8 percent to $122.1 million, compared with a year ago, when accounting for changes in currency. Based on constant currency, that figure rose 13 percent for the quarter. Investors tend to keep a keen eye on new license revenue because it serves as an indicator for future business in other parts of Sybase, from tie-on products and services to maintenance and support.

Sybase also provided guidance for how it expects to perform throughout 2009, a move that many companies are shying away from in these tumultuous economic times, as customers' orders are becoming increasingly difficult to predict.

The company expects to report revenues of $1.14 billion and earnings, excluding charges and special items, of $2.16 to $2.21 a share for 2009. The revenue forecast is slightly below Wall Street's expectations of $1.16 billion but higher than analysts' predictions of $2.14 a share.

"Customers are still buying and spending, but they're highly selective," Chen said. "While they are less willing to spend on professional services, they are still willing to spend on mission critical applications."

Some of those critical enterprise software applications include security software, real-time reporting, and risk management business intelligence software.

Chen noted, however, that sales cycles have been a little bit lengthened.