Watch full webinar here: https://bit.ly/3M1RuLS In 2021 Forrester Research published the Data Virtualization Total Economic Impact Report. In this session we will delve into the details of the report and highlight it's key findings, including to true value of Data Virtualization and its impact on the bottom line.

1. Total Economic Impact of Data
Virtualization using Denodo Platform
Paul Moxon
SVP Data Architecture and Chief Evangelist,
Denodo Technologies

2. Agenda
1. Forrester’s TEI Explained
2. The Composite Organization
3. Prior Data Challenges
4. Quantified Benefits of Using Denodo
5. Non-Qualifiable Benefits of Using Denodo
6. Denodo Costs
7. ROI
8. Summary

3. 3
What is Forester’s Total Economic Impact?
What is an effective business case?
Over 90% of IT decision-makers find value in a
business case
TCO ROI TEI
IT impact
IT costs
IT cost savings
Business
impact
User efficiency
Business effectiveness
Risk/
uncertainty
Risk mitigation
Risk versus reward
Strategic
impact
Scalability
Flexibility

4. 4
TEI Definitions
Present value (PV) – The present or current value of (discounted) cost and benefit estimates
given at an interest rate (the discount rate). The PV of costs and benefits feed into the total
NPV of cash flows.
Net present value (NPV) – The present or current value of (discounted) future net cash flows
given an interest rate (the discount rate). A positive project NPV normally indicates that the
investment should be made, unless other projects have higher NPVs.
Return on investment (ROI) – A project’s expected return in percentage terms. ROI is
calculated by dividing net benefits (benefits less costs) by costs.
Payback period – The breakeven point for an investment. This is the point in time at which
net benefits (benefits minus costs) equal initial investment or cost.

5. 5
Composite Organization
Forrester created a composite organization to convey the aggregated financial results
Composite Organization Key Assumptions:
• $5 billion in annual revenue
• Industry: Financial Services
• Global geography
• 420 dataset requests per year
• 15 data scientists
• Annual operations budget of $1 billion
• Prior environment includes ETL processes, a mix of on-prem and cloud data storage, and a
data warehouse

6. 6
Long delays in finding answers to
business problems, resulting in
longer time-to-value
Drivers for Organizational Investment
Prior Data Challenges
Unable to perform data
analyses across disparate
data sources
Centralized data access
using physical arch created
bottlenecks
Resource constraints
around data workers
Lack of flexibility for
data scientists

7. 7
Long delays in finding answers
to key business problems,
resulting in longer
time-to-value
“The fastest we could ever move in our old stack
was monthly releases and that was assuming we
were not bringing in any new data. If we were
bringing in new data, the best that we could do
was a month and a half to turn around a new
data set coming into the data warehouse and get
it modeled within the reporting tool to produce a
report. It was a huge amount of time. It was a
monolith.”
- VP of Data & Analytics, Real Estate
Drivers for Organizational Investment
Prior Challenges

8. 8
Resource Constraints Around
Data Workers
“With our previous solution, it was hard to
onboard new use cases because we have a
limited amount of data engineers who
understand that platform, and they take up jobs
on priority. This created a bottleneck for
onboarding new use cases onto the platform.”
-Director of Enterprise Architecture, Life Sciences
Drivers for Organizational Investment
Prior Challenges

9. 9
Unable to perform data
analyses across certain
disparate data sources
“We wanted to create a dashboard that would
pull in all of our different data sources, but we
realized that it would not be possible because we
had many data sources that couldn’t be
combined into such a reporting tool.”
-IT Manager, Manufacturing
Drivers for Organizational Investment
Prior Challenges

10. 10
Based on interviews with current customer organizations, as applied to the composite organization
Three-year Risk Adjusted Benefits

11. 11
Benefit: Decrease in Data Delivery Times over ETL
“Denodo is giving us a lot of
advantages over an ETL process,
especially when people need
real-time data made available to
them very quickly. Time-wise and
project-wise, Denodo has helped
speed up many, many projects
and enabled my team to do
more.”
-IT Manager, Manufacturing
Customer Experience
SUMMARY
Denodo helps reduce the time it
takes for data workers to fulfill
dataset deliveries over legacy ETL
processes. Denodo automatically
integrates disparate data sources,
optimizes query requests, and
builds in a centralized governance
architecture so that organizations
can access the data they need
faster.
KEY VALUE CAPTURE
65% improvement in
delivery times over ETL with
Denodo
THREE-YEAR
FINANCIAL IMPACT
$1.7M

12. 12
Benefit: Improved Operational Efficiency
“From the [operations] perspective,
being able to provide business users
with the capability to start asking and
answering questions themselves … it
has really given us the ability to see
around the corner. There is no way
that my team, even if we dropped
everything, would have been able to
react to a situation like the pandemic
as fast as we did without Denodo.”
-VP of Data & Analytics, Real Estate
Customer Experience
SUMMARY
THREE-YEAR
FINANCIAL IMPACT
$1.7M
KEY VALUE CAPTURE
$1.7M improvement in
operational efficiency
from year-to-year
33% year-to-year growth in
Denodo’s annual impact on
operational efficiency
Denodo’s data virtualization
software enables organizations to
create complex datasets using
real-time data across multiple data
sources that they were not able to
create before. These new datasets
can provide insight on decisions to
effectively reduce operations costs.

13. 13
Benefit: Efficiency Gain for Data Scientists
“With Denodo, our data
scientists no longer spend
30% of their time on data
wrangling and data curation.
They can now spend that
time on modeling since we
can logically model our data
within Denodo.”
-VP of Data & Analytics, Real Estate
Customer Experience
SUMMARY
THREE-YEAR
FINANCIAL IMPACT
$698K
Denodo automatically integrates
data across disparate sources,
allowing data scientists to quickly
and intuitively conduct the queries
they need to perform modeling.
Denodo’s software also ensures
that the data being analyzed for
modeling is consistent, quality, and
secure through its governance and
security features.
KEY VALUE CAPTURE
67% reduction in
data preparation
effort

14. 14
Benefit: Improved Profit
“Let's say it took our data science
team three months to write this
model for a project, and now we can
get that down to one week, we are
increasing the probability that the
project succeeds as opposed to
slowing it down and we can release
our product sooner. These are
multimillion dollar products, so even
delaying them one day can be a
million dollars or more in missed
revenue.”
-Director of Enterprise Architecture, Life Sciences
Customer Experience
SUMMARY
THREE-YEAR
FINANCIAL IMPACT
$1.2M
With Denodo, organizations can
leverage new datasets that they did
not have the capabilities to create
before. These new datasets can
inform revenue-driving projects,
which improve the bottom-line.
Denodo can also improve the
speed at which existing
revenue-driving projects are
completed, improving the
time-to-value.
KEY VALUE CAPTURE
83% faster
time-to-value
New revenue projects
enabled via Denodo
resulting in $1.2M in
additional profit

15. 15
Benefit: Reduced Legacy Integration Costs
“With Denodo, we’re probably
saving $400,000 a year. The flip
side of that is Denodo has
allowed us to do a lot more so
now, we’ve grown that footprint
and we’ve replaced that
$400,000 with a whole bunch of
new things we can never do in
the old world.”
-VP of Data & Analytics, Real Estate
Customer Experience
SUMMARY
THREE-YEAR
FINANCIAL IMPACT
$1.5M
KEY VALUE CAPTURE
$1.2M in reduced ETL costs
within three years of
deployment
+$300K per year in reduced
legacy data integration
tools
Denodo can gradually replace
existing ETL processes with a faster,
more reliable data virtualization
layer, without forcing an
organization to retire these
processes all at once or affecting
end-user experience. Denodo’s
features can also allow
organizations to retire
now-redundant legacy software
systems, saving on licensing fees
and support costs.

16. 16
Benefits of Denodo that Customers Couldn’t Quantify
Organizational flexibility and agility
Employee and customer
satisfaction
Peace-of-mind for audits, security,
and governance

17. 17
Benefit: Organizational Flexibility and Agility
SUMMARY
• Denodo empowers organizations to democratize their data
access for both technical and non-technical users by lowering
the barriers associated with conducting analyses and queries
across disparate data sources.
• With less pressure on technical users to prepare data sets for
non-technical users, organizations can relieve pressure on
resource-constrained data workers and overcome bottlenecks.
• These factors allow users and business leaders to more quickly
conduct their analyses and answer key business questions in real
time, respectively.
CUSTOMER EXPERIENCE
“Denodo is the right tool for
collaborative, flexible work
and giving the business more
room to create flexible
applications for the future. It’s
proved so until today.”
-IT Manager, Manufacturing
Customer Experience

18. 18
Benefit: Customer and Employee Satisfaction
SUMMARY
• Denodo Platform’s intuitive user interface allows users to fulfill
data sets more efficiently and less painfully than with legacy
integration techniques and tools, boosting employee satisfaction
and giving them more time to work on creating better quality
products.
• Quicker turnarounds on data set deliveries and more time for
employees to work on building higher quality products results in
higher customer satisfaction.
• Denodo’s architecture keeps end users from being negatively
impacted by changes to back-end infrastructure.
CUSTOMER EXPERIENCE
“We did a migration of a huge
data warehouse, and it was
entirely transparent to the users
because none of the reports
changed, and none of the
connections changed. Denodo
did all of that switching for us.”
-IT Manager, Manufacturing
Customer Experience

19. 19
Benefit: Peace of Mind for Audits, Security, Governance
SUMMARY
• Denodo helped their organizations gain insight into their
organization’s governance, compliance, and data security
architectures through a centralized platform.
• This additional visibility not only offered business leaders
peace of mind, but also it ensured that compliance checks
and audits could be more quickly and accurately fulfilled.
CUSTOMER EXPERIENCE
“Denodo gives us full visibility into what
the data [is] used for so we can be
compliant and have this in our
governance. I think that’s been
beneficial for the organization and that’s
also part of the reason why delivering
the GDPR [General Data Protection
Regulation] insight report is one of the
first compliance use cases we benefited
from with Denodo.”
-Lead Architect, Financial Services
Customer Experience

20. 20
Denodo licensing, deployment, and support costs
Three Year Risk Adjusted Costs

21. 21
Denodo Licensing Costs
• Prior to deploying the Denodo Platform, organizations
had to work with multiple data integration tool vendors
before being able to consolidate most of their data
integration licenses with Denodo.
• The license fee included an unlimited number of queries,
data sources, users, and data volume, as well as an
unlimited number of non-production storage.
• This fee was primarily driven by the number of
production cores that were active each year.
Denodo Licensing
Costs
$652,799

22. 22
Denodo Deployment and Support Costs
• Costs included software engineers who were tasked with initial
deployment, support FTEs that maintained the Denodo Platform, and
additional licensing fees associated with complementary solutions
which helped organizations realize the full benefits of the Denodo
Platform.
• Interviewees stated that initial deployment costs typically involved
contributions from an internal software engineering team, as well as
outsourced technical services. The initialization phase was completed
within a few months.
• Once the Denodo Platform had been initialized and deployed, a small
number of support engineers were required to keep the platform
running. Additional licenses were also purchased to ensure that
interviewed organizations could reap as much benefit out of the
platform as possible.
Denodo Deployment
and Support Costs
$686,741

23. 23
Three-year Risk Adjusted Results
TEI Financial Summary
408%
Return on Investment (ROI)
<6 months
Payback
$6.8M
Total Benefits (PV)
$5.46M
Net Present Value (NPV)

24. 24
Summary
“Now, we can do weekly releases. We’re
able to add new data sources within 2 to
3 hours. We’re about 60% faster than we
were in the old world.”
VP of data and analytics, real estate
“To me, it all boils down to speed to
insights. Not having to wait to get the
question that you have top-of-mind
answered with data is huge.”
VP of data and analytics, real estate

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