Wednesday, May 02, 2012

IBM Netezza Delivers the Best TCO for Analytics Applications


More that 150 customers have compared IBM Netezza to Teradata, as well as other competitors, and they chose Netezza for a number of reasons. But the one underlying factor that most of these customers have told us, is how fast the IBM Netezza system paid for itself. This payback or return on investment (ROI) can come form many sources, including:

·       A low up front cost
·       Drastically reduced administration on the IBM Netezza system
·       The ability to run analytics on all of your data (not a sample)
·       The ability to run queries/reports that never finished on your existing system

While many people focus on the upfront cost of an item, in my opinion it is far more important to examine the total cost of ownership for that item. Think of it in the context of buying a new car. If Car-T costs $22,000 and Car-N costs $26,000 then that is a difference of $4,000. But, there is more to the costs of owning a car than just the purchase price. You also have insurance (think of that like upgrade protection/yearly maintenance when comparing it to a data warehouse system), and maintenance (the cost of the DBAs to keep the system running), as well as the cost of gas (the cost of electricity, cooling, etc.). If, for example, Car-T gets 12 mile per gallon (mpg) and Car-N gets 28 mpg, and you usually drive 15,000 mile per year. Then at a cost of $3.95 per gallon, it would cost you $4937 per year for gas for Car-T and only $2116 per year for Car-N. So, in this case Car-N would pay for the price difference in under 2 years, and every year after that you would reap the benefits of that choice.

Now, let’s make this car example match more closely to what data warehouse customers have to consider. In this case Car-T would be a 2-seater, cost $25,000 to buy, get 10 mpg, require premium gas, and have a top speed of 85 miles per hour (mph). Car-N would cost $15,000, have room for a family of 5, get 30 mpg using regular gas, and have a top speed of 300 mph.

If you can get the answers you want 3 times or more faster, at about half the up front cost and at one third of the ongoing costs, why would you choose anything else? Customers like MediaMath examined technologies form a number of different vendors, and chose Netezza because “Netezza’s appliance approach would be less costly than other options.”[1] And analysts (the consumer reports of the IT industry) agree. In their report, The Total Economic Impact Of IBM’s Netezza Data Warehouse Appliance With Advanced Analytics[2], Forrester examined a Netezza customer’s use of the IBM Netezza appliance, and based on their calculations the system paid for itself in under a year.

With the cost of DBAs (and gas) escalating, don't keep feeding your gas guzzler, take a test drive of a new IBM Netezza appliance and see how fast it really is, and how quickly it will pay for itself.


[1] http://www.google.com/url?sa=t&rct=j&q=nucleus%20research%20mediamath&source=web&cd=1&ved=0CDEQFjAA&url=http%3A%2F%2Fthinking.netezza.com%2Fsites%2Fdefault%2Ffiles%2Fdocument%2FNucleus_Research_ROI.pdf&ei=USyET4DgLIbV0QGO8sTnBw&usg=AFQjCNGqcbnE5tJxTsiwMB71uTMc5rCXOw&cad=rja
[2] http://thinking.netezza.com/pdf/total-economic-impact-ibms-netezza-data-warehouse-appliance-advanced-analytics-forrester-total

6 comments:

ahealy74 said...

Very interesting, I'll definitely be checking our IBM Netezza for my analytics. I've been using AssetCentral asset tracking software for my IT asset management needs. It's a pretty robust solution that offers great analytics, I would definitely recommend it.

kdp said...

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Netezza database question and answers

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