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Lowering the Cost of Business Intelligence With Open Source

Lowering the Cost of Business


Intelligence With Open Source
A Comparison of Open Source and Traditional Vendor Costs

2010 Technology White Paper

Lowering the Cost of Business Intelligence With Open Source

TABLEOFCONTENTS

Summary.......................................................................................................................1
CostComparisons:HowtheVendorsMeasureUp.....................................................3
TheMazeofSoftwareLicensing.............................................................................3
ComparingProductCosts.......................................................................................3
ComparisonofOpenSourceandTraditionalSoftware..........................................4
Conclusion...............................................................................................................6
TotalCostofOwnershipandBusinessIntelligenceTools............................................8
ComponentsofTCOforBusinessIntelligence........................................................8
SimplifyingAssumptionsforThisReport................................................................8
CommunityVersusCommercialOpenSource........................................................9
VendorPricingDetailsUsedinThisPaper..................................................................11
IBM:Cognos8.................................................................................................12
MicroStrategy:ReportingSuiteandMicroStrategy9....................................14
Oracle:OracleBusinessIntelligenceSE1andEE+..........................................16
Pentaho:PentahoBISuite..............................................................................17
SAP:BusinessObjectsEdgeandEnterprisePremium.....................................18
AbouttheAuthor........................................................................................................19

Total Cost of BI Software

Summary
Whenlookingatthetotalcostofownership(TCO)ofBItools,it'sknownthatlabortrumpsall
otherfactorswhenafullprojectisconsideredfromstarttofinish.Thisisoftenusedasa
justificationtoignorethecostofsoftwareandsupport,sincethelargestproportionofaBI
project'scostatanypointintimeisdominatedbylabor.
Theproblemwiththisthinkingisthatthereislittleevidenceofasignificantdifferenceineffort
requiredwithdifferentBItools,eitherduringdevelopmentorinmaintenance.Withtheoverall
differencesbeingrelativelysmall,onethingwecanfocusonisthetotalcostofsoftware(TCS)
sincethisispartlyunderourcontrol.
Thetopreasongivenfortheuseofopensourcebusinessintelligencesoftwareiscostsavings.
Thequestioniswhetheropensourcematterswhenitcomestolicenseandsupportcosts.How
realarecostsavings?HowmuchdoesBIsoftwareandongoingsupportactuallycost?
Thisisacomplexquestionbecauseoftheextremevariabilityandlackoftransparencyin
traditionalenterprisesoftwarelicensemodels,packagingandpricing.

$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000

Thischartshowsthecostsavings
betweentheaverageofthetopfour
BIvendorsandPentaho,theopen
sourcevendorusedinthispaper.

$1,499,826

$1,600,000

Costsavings

Theshortansweristhatopensource
doesmatter.Attheentrylevelwitha
smallnumberofusers,opensource
canbealittletoalotlessexpensive.
Astheenvironmentscalesupthe
differencebecomesmuchmore
noticeable,asshowninFigure1.

$223,257
$36,592

Small
Medium
Large
Sizeofdeploymentenvironment

Figure1:Average3yearcostsavingswithopensourceBI

Withasmallconfigurationof25users,theaveragecostdifferenceisabout50%or$36,000.
Withalargeconfigurationof500usersthedifferenceisslightlymorethan15times.Thereisa
widerangebetweentheleastandmostexpensivevendors,sothesavingsvaryconsiderably
dependingonwhichvendoryouareconsidering.
Akeymetrictousewhencomparingsoftwarecostacrossdifferentsizedenvironmentsisthe
averagecostperuser.Itvariesoverthesizeofenvironmentbecausevendorshavedifferent
pricingmodelsforentrylevelandlargerconfigurations.Thismetricwillhelpifyouwantto
knowhowmuchitwillcosttogrowthesizeofaBIdeployment.Inmanyopensourcemodels
theperusercostdecreasessincethepriceisnotbasedonnumberofusers.

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Total Cost of BI Software

ThechartinFigure2showstheperusercostsavingsoverathreeyearperiodwhenusingopen
source.ThecostofthetopBIvendorswasaveragedineachofthreedifferentlysized
environmentsandcomparedtothecostofanopensourcelicenseforthesameenvironment.

Asarule,youcanexpecttosaveon
bothlicenseandsupportcostswith
opensourcebusinessintelligence
tools.However,thesavingswillvary
dependingonagreatmanyfactors.

AverageperUserCostSavings
$3,500

$3,000

$3,000

$2,233

$2,500

Costsavings

Theincreaseinperusersavings
fromsmalltolargeisaresultofthe
costdifferenceinentrylevelBI
packagesfromthetopvendorsand
theirstandardenterpriselicenses,
andthegenerallicensescaling
advantageofopensourcelicense
models.

$2,000
$1,500

$1,464

$1,000
$500
$

Small

Medium

Large

Figure2:Average3yearcostsavingsper

Therestofthispaperexplainsthe
userofopensourceBI,bydeploymentsize
detailsofenterpriseBIlicensing,the
factorsthataffectprices,andthecostsofthetopvendorsforaspecificsetofconfigurations.

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Total Cost of BI Software

Cost Comparisons: How the Vendors Measure Up


Thispaperexaminesthesoftwareandsupportcostsoftheleadingbusinessintelligence
providersandcomparesthemtoacommercialopensourcevendor(Pentaho)inanattemptto
answerthequestionofwhetheropensourcematterswhencomparingthetotalcostofBI
software.

The Maze of Software Licensing


UnderstandingBIlicensesandpricingisdifficultforbuyers.Eachvendororganizesfeatures
differentlyandassignsthemtodifferentcomponentsoruserroles.Typically,atleastone
featureyourequireexistsinanaddonmodulethatoffersnoothervaluebutsignificantcost.
Youhavetorelyonthesalesreptonavigatethroughthecomplexityanddeliverthebest
configurationpossible.
Themanyfactorsthatareusedtodeterminethepriceofthesoftwareareanotherchallenge.
Mostvendorstreatthisinformationasifitwereatradesecret,liketheydowiththeirlist
prices.Thislackoftransparencyisproblemforthebuyerinmuchthesamewaylackof
transparencyisaproblemforanewcarbuyer.What'sareasonableprice?Howmuchare
otherspayingforthesamesoftware?Opensourcevendorstendtohavemoretransparentand
simplerlicensemodelsthatlendtransparencytotheprocess.

Comparing Product Costs


ThebestwaytocompareBIcostsistocreatescenarioswiththenumberandtypesofusers,
thenusethescenariostopricethesoftware.Weusedthreedifferentscenariostoemulatean
entrylevelorsmalldepartmentconfigurationandthegrowthpathfromthistoarolloutofBI
toabroaderorganization.ThetypesandnumberofusersareshowninTable1.
Size
Small
Medium

Total
Users

Admin
Users

Professional
Developers

Expert
Users

Basic
Users

25

21

100

10

85

Thesmallconfigurationisatotal
of25users,mediumforusis100
users,andlargeis500users.

Weappliedthe80182rulefor
Large
500
3
15
50
432 thedistributionofBIusers,where
80%oftheusersdolittlemore
Table1:usagescenariosandusercounts
thanbasicinteractionwith
existingreportsordashboards,18%oftheusersmodifytheobjectsanddoamodestlevelof
adhocqueryandanalysis,and2%areprofessionalBIdevelopersoranalystswhosupport
othersintheirdepartment.WealsoincludeasmallnumberofBIadministratorsresponsiblefor
theoverallmanagementoftheenvironment.It'simportanttodothiswhenbuyingBItools
becauseofthelargedifferenceinthecostofcomponents,makingiteasytooverpay.
Thelevelofinteractionatthebasiclevelisviewingdashboards,runningandschedulingreports,
fillinginreportparametersandsimplesortingandfilteringofresults.Expertusersand
professionaldevelopersneedtheabilitytocreateobjectsintheBIenvironmentandperform
adhocactivities.

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Total Cost of BI Software

ComparingBIproductsisdifficultbecauseofthevariabilityinpackagingandbundlingof
features.Ourassumptionisthatanyenduserfeaturesbeyondthecorefunctionsofstaticand
interactivereports,dashboards,andadhocqueryandanalysisisanextraandirrelevanttoour
costing.
Allproductconfigurationswecreatedaremeanttoprovideonlythesefunctionsforthegiven
scenario.Thealternativeapproachistotryandgetanapplesapplesfeaturebased
configuration.Thisisalmostimpossible.
Vendorstrytocompeteonnumerousfeaturesaspointsofdifferentiation,whichconfuses
comparison.It'sbestwhenevaluatingBIsoftwaretosticktothefeaturesyouplantouseand
nottrytofactorinaddedvalueofuniquefeaturesandtheirrelativecost.
Ourcostestimatesincludetheproductionandnonproduction(developmentandtest)
environments.Thecostcoversboththeinitialpriceandthethreeyearcostofsupportand
maintenance.

Comparison of Open Source and Traditional Software


OnewaytoseehowseriousvendorsareaboutloweringtheirTCSisbylookingathowtheir
costscalesupwiththenumberofusers.Figure3showstheaverageperusercostoverthree
years.Movingfromasmall25userenvironmenttoalarger500userenvironmentactually
increasestheperusercostwithtraditionalBI,whiledecreasingwithopensource.

AverageCostperUser

Cost

$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$

Small

Medium

Large

AvgCostTrad.

$2,664

$3,103

$3,174

AvgCostOpen

$1,200

$870

$174

Figure3:averagecostperuser,comparingtraditionalandopensourceacrossscenarios

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Total Cost of BI Software

TheriseincostshowninFigure3isnotrepresentativeofallBIvendors.Thecostperuser
declinesforsome,likeCognos,whileincreasingforothers.ThisisshowninFigure4.Therisein
costperuseracrossourscenariosissomewhatmisleadingbecausethesmallscenariosforall
vendorsbutCognosareusingentrylevelpackages.Thiscanreducethecostperuserbyhalf.
$4,500
$4,000
$3,500

$4,252

$4,230

$4,072

$3,732
$3,191
$2,922
$2,897
$2,808

$3,000

$2,390

$2,500
$2,000

$2,093

$1,902

$1,500

$1,271

$1,200
$870

$1,000
$500

$174

Cognos

Microstrategy

Oracle

small

medium

Pentaho

SAP

large

Figure4:averagecostperuseroverthreeyears,byvendorandscenario

Whatisimportanttonoteisthejumpincostperuserwhenaddinglicenses.Ifyoutake
advantageofoneoftheseentrylevelpackageswithaplantodeploytomorepeopleatalater
time,thecostperusercouldpotentiallydouble.
Ifyourenvironmentwon'tgrowortheBIpackageisgenerousenough(asitiswithSAP)then
theseoptionsaregood,althoughstillnotasinexpensiveasopensource.Ifyourenvironment
willgrowbeyondtheBIvendor'sentrylevelpackagethenbepreparedforabigincrease.It'sat
thispointwherethecostadvantageofopensourceBIbecomesapparent.
Figure5showsthetotalcost
averagedacrosstraditionalBI
productsandcomparedtothe
commercialopensourcecost.For
thesmallconfigurationtheaverage
costwastwicethatofopensource.
With500usersthedifferencein
averagepriceballoonstoalmost20
timesthecostofopensource.
However,thereisawiderangein
pricebetweenthetraditionalBI
vendorsacrosseachofthethreesize
scenarios.Whencomparingtotal

$87,000

Large

$1,586,826
$87,000

Medium

$310,257
$30,000

Small

$66,592
$

$500,000

$1,000,000

Avg3YearCostOpen

$1,500,000

$2,000,000

Avg3YearCostTrad

Figure5:averageBIcostperconfiguration,comparing
traditionalandopensource
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Total Cost of BI Software

costitcanbemoreinterestingtoseehowtheindividualvendorscompare.
Thetotalthreeyearcostandthebreakdownbetweenlicenseandsupportareshownforallfive
vendorsinTable2,brokenoutbyvendorandscenario.Thefullconfigurationandpricingdetails
areshowninthe"VendorPricingDetails"sectionwhichfollowsthisone.
Thegapbetween
MicroStrategyand
Pentahoismuch
narrowerforthesmall
scenariointhisexample,
andallthevendorsare
closestincostatthis
level.
Thereasonforthisis
simple:allthevendors
exceptforIBMhad
configurationspricedfor
entrylevelthatwewere
abletouse.Thismade
traditionalBIproducts
morecompetitive.

Vendor

Size

Cognos

Small
Medium
Large

Total License
Cost

Total Support
Cost

Total Cost

58,184
182,356
543,584

43,618
136,707
407,608

101,802
319,063
951,192

MicroStrategy

Small
Medium
Large

10,100
174,500
845,800

21,666
115,170
558,228

31,766
289,670
1,404,028

SAP

Small
Medium
Large

36,000
131,750
1,595,670

23,760
86,955
1,053,142

59,760
218,705
2,648,812

Oracle

Small
Medium
Large

17,600
254,800
1,124,200

29,040
168,168
741,972

73,040
422,968
1,866,172

Pentaho

Small
Medium
Large

0
0
0

30,000
87,000
87,000

30,000
87,000
87,000

MicroStrategyisusingan
opensourcetacticatthe
entrylevel:theygivethe
Table2:threeyeartotalcostoflicenseandsupportbyvendorandscenario
softwareawayforfreefor
upto100users.Thereasonthepriceisnotzerohereisbecausewehadtoaddseverallicenses
tomeettheuserfeaturerequirementsinourconfiguration.
Whilethisisaninterestingoffer,itcomeswithacatch,asdomostoftheentrylevelpackages.
MostarelimitedtoasmallnumberofCPUs,usuallyfewerCPUsthanisrealisticfora
productionenvironmentwithmorethanasmallnumberofusers.Thisisincontrasttoanopen
sourcelicensewherethatlimitationdoesnotapply.

Conclusion
Thepricinginformationinthisreportcanbeusedasaguideline,howevertheexact
configurationoflicensesisacomplextasksoadjustingthesenumbersmaynottranslateto
yourenvironment.Weavoideddiscountpractices,sotherealcostsacrossbothtraditionaland
opensourcevendorswillbelower.Youcanconsiderthispricingasthehighendofwhatyou
couldpayforthesescenarios.
Atthispointitshouldbeapparentthatopensourcecanofferacostadvantage.Theamount
willvarydependingonthesizeofyourenvironment,availabilityofentrylevelBIpackagesfrom
traditionalvendors,andthefeaturesyourequire.

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Total Cost of BI Software

Therationalefordeployingopensourcemaybecostsavings,butthatcostcanalsovarybased
onthereasonfordeploying.Ifthegoalistoreplaceexistingsoftwarethenthefocusshouldbe
areductioninsupportcost.Ifthegoalistoaddusersornewfeaturesthenthefocusshouldbe
ontherelativecostsbetweenproducts.
Fromasurveyofopensourceuserslastyear,wefoundthattheprimarymodeofdeployment
wasfornewlicensesratherthanreplacementofexistingtools,with32%oforganizations
addinguserstoanexistingenvironmentviaopensourceratherthantheincumbentvendorand
41%usingopensourceforanewproject.ThedeploymentscenariosareshowninFigure6.
Usingaspartofanewsystemorproject

41%

Addingnewfunctionalitytoanexistingsystem

18%

Supplementingasystemwithsimilarfeatures

14%

Replacinginternallydevelopedsoftware

11%

Replacingproprietarysoftware

16%

Figure6:DeploymentscenariosforopensourceBI

Newprojectsareabetterdeploymentmodelforopensourcebecausethehighcostof
acquisitionisasignificantbarriertostartingaBIproject.Traditionalvendors'productshave
beentoocostlyformostdepartmentalbudgetsorsmalltomediumsizedcompanies.
TherecentintroductionofSMBandentrylevelpackagingbyBIvendorshasloweredthebarrier
toentry,butnottothesamelevelascommercialopensource.DespitetheentrylevelandSMB
offerings,thegapbetweentheleastandmostexpensiveBItoolsisthreetimesthelowestcost
product.
Anotheradvantageopensourcecanofferissimplicityandtransparencyoflicensing.Itiseasier
toseehowmuchyouwillpaynowandinthefuture.ThetraditionalBIvendorshavetaken
stepstosimplifytheirmodels,butthelackoftransparencywithbundling,editions,
components,usertypesandenvironmentswilllikelycontinue.
Ourfinalrecommendationistoevaluateopensourcelikeanyotherenterprisesoftware.Price
doesn'tmatterifthesoftwaredoesn'tdowhatyouneed.Opensourcesoftwareisstillsoftware
andshouldbeevaluatedagainstthesamesetofcriteriayouwouldusewithasimilar
applicationfromatraditionalvendor.

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Total Cost of BI Software

Total Cost of Ownership and Business Intelligence Tools


Components of TCO for Business Intelligence
InordertocompareBIcostsanddeterminewhetheropensourcematters,weneedtolook
brieflyattotalcostofownership.MostBITCOreportsestimatethecostbreakdownovera
threeyearperiodtobeapproximately70%labor,20%softwareand10%hardware,asshownin
Figure3.
Hardware
10%
Astandardthreeyeartimeperiodwasusedtocalculate
thetotalinitialandongoingcostsofBIsoftware.Three
Labor
tofiveyearsarecommonlyusedbecausethattendsto
70%
betherangecompaniesusetodepreciatecapitalized
Software
assets,assumingtheycancapitalizesoftware.ForBI
20%
software,alongerperiodislikelytobeabetterfit
becausetheBItoolrefreshcycleformost
implementationsisfiveyears.Wekepttothestandard
Figure3:divisionofBIcostsoverthreeyears
ofthreeyearsforthispaper.

Forexample,the2007IDCstudy"DemonstratingBusinessValue:SellingtoYourCLevel
Executives"putstaffingcostintherangeof60%to85%overthreeyears.Theiradvicetosave
moneylongtermistoevaluatethefeaturesthatreducestaffingcosts.
Theproblemwiththisadviceisthatlaborsavingdifferencesarehardtofindorquantify
betweenthetoolsexceptoverthebaselineofhandcoding.Claimsofincreasedproductivityvia
newfeaturesareoftenoffsetbydecreasedproductivityduetomoreproductcomplexity.Given
thesimilarityinfeaturesacrossBIproducts,it'sfairtoassumeproductivityisequivalentacross
mostvendors'products.Thereforetheprimarycontrollablecostwillbesoftwareandsupport.
UnderuseisanotherreasontofocusonsoftwareasakeyfactorinreducingBIcosts.Most
organizationsarenotfullyalignedwiththeirlicenses.Someusemoresoftwarethantheir
licensesallow,butmanymorearepayingforunusedsoftware.SeveralsurveysoftheBImarket
reportthatmorethanhalfofBIlicensesgounused.

Simplifying Assumptions for This Report


Tomakethecostcomparisonmorestraightforwardwemadeseveralsimplifyingassumptions:

Theunderlyingdatawarehouseisthesameinallcases,andwe'resimplylayeringBIon
topofthatplatform.Thismeansthedatabaseandhardwarecostsareequivalentacross
thedifferentBItools.

TherearedifferencesinhardwarerequirementsfordifferentBItools,butit'smostoften
thecasethatifatoolhasasmallerserverfootprintthenitshiftsworkloadtothe
database,orviceversa.Thismeansthathardwarecostsaresimplyshifted,andthereis
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Total Cost of BI Software

notasignificantdifferenceinhardwarecostacrossBIvendorsfortherangeofsize
configurationswe'reusing.

Todate,wearenotawareofanyviablequantitativestudiesshowingthatonevendoris
significantlyeasiertouseormanagethananyother.By"significant"wemeaneasierto
thepointwherethenumberofBIstaffismeasurablylowerforagivenvendor.This
meanswecanassumethatlaborcostsarereasonablycloseacrossthetools.

Allofthevendorshaveentrylevelandsmalltomidmarket(SMB)packages.Theseare
usuallyrestrictedtocompaniesofagivenrevenuesizeoremployeecount,sotheycan't
beusedortheygiveadistortedviewthatappliestoonlyoneportionofthemarket.We
usedapackageonlyifitwasapplicabletoallcustomersandfitourscenarios.

Giventheseassumptions,theprimarycostdifferentiatorfromoneBIenvironmenttoanother
willnotbelaborbutthepriceofsoftwarelicensesandsupport.Henceourfocusonthetotal
costofsoftware(TCS)ratherthanthetotalcostofownership.

Community Versus Commercial Open Source


Thereisstillconfusioninthemarketaboutwhatconstitutesopensourceandthedifference
betweencommunityandcommercialeditions.Whenwelookatsoftwarecost,wearelooking
atsupported,enterpriseversionsofopensourceBIsoftwarebecausethatismostcommonly
deployedbyorganizations.Ifwewerecomparingunsupportedorcommunityeditionsofopen
sourcethenthepaidlicenseandsupportcostswouldbezero.
Therearetwomodelsofsupportforopensource.Oneiscommunitybasedopensource,often
call"freeandopensource"orFOSSforshort.Theotheriscommercialopensourcesoftware,
usuallyabbreviatedasCOSS.
Mostpeoplearefamiliarwiththefreeandopensourcemodelbecauseit'sbeenaroundthe
longestandreceivesthemostattention.Inthismodel,volunteerscontributetodevelopment
andmaintenanceofthesoftware.Insomecases,theymaybefulltimeemployeesofanon
profitorganizationowningthesoftware,buttheprojectdoesnotoperatelikeatraditional
softwarecompany.Thereisnoprofitmotive.Thesoftwareisavailablefreeofchargetoanyone
whowantsit.
Manyofthemythsaboutcommercialopensourcestemfromthisorigininthesharewareand
FOSSworld.Intheearlydays,opensourcewasoftendesignedandbuiltforpersonaluseby
individualdevelopersratherthanaspartofanorganization'sITinfrastructure.
BecausemostpeoplearefamiliarwiththeFOSSmodel,theymisapplytheideastotheCOSS
model.Commercialopensourcecameaboutforadifferentreason.Commercialopensource
vendorsmakemoneybyfillinggapsintheFOSSmodel,forexamplebyaddingenterprise
featuresandsupport.
Enterpriseuseofopensourcewaschallengingintheearlydaysbecausetheproductslacked
muchofthe"finishing"workcommercialproductsreceive.DocumentationinFOSSprojectsis
oftenweak,qualityvariesbasedoncommunity,andregularlyscheduledfixes,software
releasesandsupportareoftenlacking.

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Total Cost of BI Software

Commercialopensourceevolvedwithrecognitionthatcompaniesarewillingtopayfor
support,service,andotherlesstangibleitemslikeindemnificationorcertifyinginteroperability
withothervendor'sproducts.
Acommercialopensourcevendorissimilartoatraditionalsoftwarevendor,butonedifference
isthatthesourcecodeisnotshroudedinsecrecy.Thisenablesmoreanddeeperinteraction
betweencustomersanddevelopers,makingtheopensourcemodelmorecommunityfocused
thanthetraditionalmodel.
IncontrasttothemajorityofFOSSprojects,commercialopensourcevendorsemploymostof
theproject'sdevelopersandexpecttomakeaprofitwhiledoingso.Theyprovidethesame
servicesandsupportthattraditionalvendorsdo,frequentlywithmoreflexibilityandlower
cost.COSSvendorsuseelementsoftheproprietarymodelsuchasprovidingsupportcontracts
orsellingnonopensourcecomponentsthatcanbepurchasedinadditionto,orinplaceof,the
freeversionofthesoftware.
Thetwodifferenteditionsofsoftwarethatareoffered(communityandcommercial)cancause
confusion.Whenyouevaluatesoftwareitisimportanttonotewhetheryouarelookingatthe
freeorpaidversion.
COSSvendorsarestillsoftwarecompanies.Ifyoupurchaseapaidenterpriseversionthenyou'll
findthattheexperienceisnotsubstantiallydifferentthanbuyingsoftwarefromaproprietary
vendor.ThekeydifferenceisthetransparencywithwhichCOSSvendorsoperate.

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Total Cost of BI Software

Vendor Pricing Details Used in This Paper


Thissectioncontainsthedetailedconfigurationsforeachvendorbysmall,mediumandlarge
scenarios.
Thelackoftransparencyinlicensingandpricesmadethisinformationdifficulttoobtain.We
startedwiththeinformationthatispubliclyavailableattheGSAwebsite,butthisinformation
canbeinaccurateandoftenreflectsgovernmentdiscounts.Thereforemostofthepricing
informationherewasprovidedbyvendors.
Inallcasesweattemptedtomaintainthelistpricesandensurethatnodiscountswereapplied
soourcomparisonscouldbemeaningful.Thisexcludedallgovernment,educationalandSMB
discounts.
Evenwiththis,pricescouldvarydependingonwhatassumptionsaremadeaboutspecific
packaging,editions,bundlesandfeatures.Wedisclosedeverylineitemandwhatusersitwas
fortomaketheseassumptionsclear.
OnenotableomissionfromtheleadingBIvendors(basedonmarketshare)isMicrosoft.Our
assumptionofacommondatawarehouseplatformmeantwecouldnotincludethembecause
theyforceaspecificoperatingsystemanddatabaseintothemix.Theothervendorsdon'thave
thisdependency.OurestimatedpricingforMicrosoftshowedthemtoberoughlyinlinewith
otherBIvendors'perusercostsifalldependenciesaretakenintoaccount.

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Total Cost of BI Software

IBM: Cognos 8
ThepricingforIBMinthesmallconfigurationisthehighestasaresultoftheiromissionofsome
componentsfromtheirentrylevelpackageandtheirpolicyofchargingfordevelopmentand
testenvironments.Thisaddsconsiderablytotheirpriceinboththesmallandmedium
configurations.
Thelicensingofdevelopmentandtestisbasedon"processorvalueunits"whichvarybasedon
CPUmodels.It'snecessarytoconsultIBM'swebsitetoworkouttheexactnumberofPVUsto
multiplytheunitcostby.Inourcase,assumingInteldualcoreXeonprocessors,thisworkedout
to100perCPUwhichisreflectedinthe"units'columnofthepricechart.
Software Support
Product Component Description
Units Price
Price
IBM COGNOS 8 BUSINESS INTELLIGENCE ADMINISTRATOR AUTHORIZED USER
Admin / IT
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
1 $ 13,500 $ IBM COGNOS 8 BUSINESS INTELLIGENCE ADMINISTRATOR AUTHORIZED USER
Admin / IT
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
1 $
$ 2,700
IBM COGNOS 8 BUSINESS INTELLIGENCE PROFESSIONAL AUTHORIZED USER
Professional
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
1 $ 3,240 $ IBM COGNOS 8 BUSINESS INTELLIGENCE PROFESSIONAL AUTHORIZED USER
Professional
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
1 $
$ 648
IBM COGNOS 8 BUSINESS INTELLIGENCE ADVANCED BUSINESS AUTHOR
Expert user
AUTHORIZED USER LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
3 $ 1,630 $ IBM COGNOS 8 BUSINESS INTELLIGENCE ADVANCED BUSINESS AUTHOR
Expert user
AUTHORIZED USER ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
3 $
$ 326
IBM COGNOS 8 BUSINESS INTELLIGENCE CONSUMER AUTHORIZED USER
Basic user
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
20 $
865 $ IBM COGNOS 8 BUSINESS INTELLIGENCE CONSUMER AUTHORIZED USER
Basic user
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
20 $
$ 173
IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) LICENSE + SW SUBSCRIPTION
100 $
338 $ Dev environment & SUPPORT 12 MONTHS
IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) ANNUAL SW SUBSCRIPTION &
100 $
$
68
Dev environment SUPPORT RENEWAL

User type

Test environment n/a

0 $

Test environment n/a


Note: dev environment is a single cpu dual core Xeon, PVU calc per IBM is 50*2

0 $

First Year 3 Year


Cost
Total
$ 13,500 $ 13,500
$
$
$
$
$

5,400

3,240 $

3,240

1,296

4,890 $

4,890

1,956

$ 17,300 $ 17,300
$

6,920

$ 33,800 $ 33,800

$ 13,500

$
68 $
$
$ 72,730 $ 101,802
Totals

IBMpricingforsmallBIconfiguration
Themediumconfigurationaddsusersandatestenvironment,butusesthesameeditionand
modelasthesmallconfiguration(shownonnextpage).

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Total Cost of BI Software


Software Support
Product Component Description
Units Price
Price
IBM COGNOS 8 BUSINESS INTELLIGENCE ADMINISTRATOR AUTHORIZED USER
Admin / IT
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
2 $ 13,500 $ IBM COGNOS 8 BUSINESS INTELLIGENCE ADMINISTRATOR AUTHORIZED USER
Admin / IT
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
2 $
$ 2,700
IBM COGNOS 8 BUSINESS INTELLIGENCE PROFESSIONAL AUTHORIZED USER
Professional
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
3 $ 3,240 $ IBM COGNOS 8 BUSINESS INTELLIGENCE PROFESSIONAL AUTHORIZED USER
Professional
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
3 $
$ 648
IBM COGNOS 8 BUSINESS INTELLIGENCE ADVANCED BUSINESS AUTHOR
Expert user
AUTHORIZED USER LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
10 $ 1,630 $ IBM COGNOS 8 BUSINESS INTELLIGENCE ADVANCED BUSINESS AUTHOR
Expert user
AUTHORIZED USER ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
10 $
$ 326
IBM COGNOS 8 BUSINESS INTELLIGENCE CONSUMER AUTHORIZED USER
Basic user
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
85 $
865 $ IBM COGNOS 8 BUSINESS INTELLIGENCE CONSUMER AUTHORIZED USER
Basic user
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
85 $
$ 173
IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) LICENSE + SW SUBSCRIPTION
Dev environment & SUPPORT 12 MONTHS
200 $
338 $ IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) ANNUAL SW SUBSCRIPTION &
Dev environment SUPPORT RENEWAL
200 $
$
68
IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) LICENSE + SW SUBSCRIPTION
Test environment & SUPPORT 12 MONTHS
100 $
338 $ IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) ANNUAL SW SUBSCRIPTION &
Test environment SUPPORT RENEWAL
100 $
$
68
Note: assumed dev environment is dual CPU dual core Xeon, test is 1 CPU, PVU/core per IBM is 50
Totals
User type

First Year 3 Year


Cost
Total
$ 27,000 $ 27,000
$
$

$ 10,800

9,720 $

9,720
3,888

$ 16,300 $ 16,300
$

6,520

$ 73,525 $ 73,525
$

$ 29,410

$ 67,600 $ 67,600

$ 27,000

$ 33,800 $ 33,800

$
$ 13,500
$ 227,945 $ 319,063

IBMpricingformediumBIconfiguration
InthelargeconfigurationIBMcostlessthantheothertraditionallylicensedBIproducts.Based
ontheirlicensestructureandpolicies,onecouldinferthattheyarefocusedonthelarger
environmentsattheexpenseofthesmallerendoftheBImarket.
Software Support
Product Component Description
Units Price
Price
IBM COGNOS 8 BUSINESS INTELLIGENCE ADMINISTRATOR AUTHORIZED USER
Admin / IT
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
3 $ 13,500 $ IBM COGNOS 8 BUSINESS INTELLIGENCE ADMINISTRATOR AUTHORIZED USER
Admin / IT
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
3 $
$ 2,700
IBM COGNOS 8 BUSINESS INTELLIGENCE PROFESSIONAL AUTHORIZED USER
Professional
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
15 $ 3,240 $ IBM COGNOS 8 BUSINESS INTELLIGENCE PROFESSIONAL AUTHORIZED USER
Professional
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
15 $
$ 648
IBM COGNOS 8 BUSINESS INTELLIGENCE ADVANCED BUSINESS AUTHOR
Expert user
AUTHORIZED USER LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
50 $ 1,630 $ IBM COGNOS 8 BUSINESS INTELLIGENCE ADVANCED BUSINESS AUTHOR
Expert user
AUTHORIZED USER ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
50 $
$ 326
IBM COGNOS 8 BUSINESS INTELLIGENCE CONSUMER AUTHORIZED USER
Basic user
LICENSE + SW SUBSCRIPTION & SUPPORT 12 MONTHS
432 $
865 $ IBM COGNOS 8 BUSINESS INTELLIGENCE CONSUMER AUTHORIZED USER
Basic user
ANNUAL SW SUBSCRIPTION & SUPPORT RENEWAL
432 $
$ 173
IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) LICENSE + SW SUBSCRIPTION
Dev environment & SUPPORT 12 MONTHS
200 $
338 $ IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) ANNUAL SW SUBSCRIPTION &
Dev environment SUPPORT RENEWAL
200 $
$
68
IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) LICENSE + SW SUBSCRIPTION
Test environment & SUPPORT 12 MONTHS
200 $
338 $ IBM COGNOS 8 BUSINESS INTELLIGENCE FOR NON-PRODUCTION
ENVIRONMENT PROCESSOR VALUE UNIT (PVU) ANNUAL SW SUBSCRIPTION &
Test environment SUPPORT RENEWAL
200 $
$
68
Note: assumed dev environment is dual CPU dual core Xeon, test is 1 CPU, PVU/core per IBM is 50
Totals
User type

IBMpricingforlargeBIconfiguration

Page 13

First Year 3 Year


Cost
Total
$ 40,500 $ 40,500
$

$ 16,200

$ 48,600 $ 48,600
$

$ 19,440

$ 81,500 $ 81,500
$

$ 32,600

$ 373,680 $ 373,680
$

$ 149,472

$ 67,600 $ 67,600

$ 27,000

$ 67,600 $ 67,600

$
$ 27,000
$ 679,480 $ 951,192

Total Cost of BI Software

MicroStrategy: Reporting Suite and MicroStrategy 9


ThesmallconfigurationforMicroStrategyqualifiesfortheMicroStrategyReportingSuite.The
licensingforthiseditionisfreeforthefirst100namedusers,makingitadirectchallengerto
theopensourceBIofferingsonthemarket.Thesupportcostisalsoverylow,makingit
attractiveforentrylevelBIenvironmentsjustgettingstarted.
Thecostsshownarehigherthanjustthesupportcostbecauseinourconfigurationtherearea
fewcomponentsneededtomeetourcorefeaturerequirementsandtheseneedadditional
licenses.AnotherfactoristhelimitofReportingSuitetoasinglecore(notasingleCPU),which
severelylimitstheusabilityoftheproduct.Buyingsupportandadditionallicensespermitsan
additionalcoreandanadditionalserverforoneofMicroStrategysservercomponents,allowing
areasonabledepartmentalserverconfiguration.
ComponentrequirementsandlimitationsarethereasonitsimportanttoensurethatanyBI
configurationyouarelookingathasthecorefeaturesyouneed.
User type
Base license
Admin / IT
Professional
Expert user
Expert user
Basic user
Dev environment
Test environment

Product Component Description


Standard Technical Support, Reporting Suite, 25 users
covered in line 1
covered in line 1
MicroStrategy Report Services Option
MicroStrategy Web Analyst Option
MicroStrategy Report Services Option
Named user licenses have access to dev/test
n/a

Units
1
1
1
3
3
20
1
0

Software
Price
$
$
$
$
400
$
300
$
400
$
$
-

Support
Price
$ 5,000
$
$
$
88
$
66
$
88
$
$
Totals

First Year
Cost
$
5,000
$
$
$
1,464
$
1,098
$
9,760
$
$
$
17,322

3 Year
Total
$
15,000
$
$
$
1,992
$
1,494
$
13,280
$
$
$
31,766

MicroStrategypricingforsmallBIconfiguration
OurmediumconfigurationalsoqualifiesforMicroStrategyReportingSuite,howevertheCPU
limitationsmakeitunreasonabletoconsiderfora100userenvironment.Theenterprise
licensingisusedfortheconfiguration(showninthetablebelow).Thisisthereasonforthe
largepriceincreaseovertheentrylevelconfiguration.
ThejumpincostdemonstratesoneoftheproblemswithentrylevelandSMBconfigurations
forenterprisesoftware:thecostssometimesdontscaleupasusersareadded.Thiscreatesa
largeincreasewhenmovingtoenterpriseeditionlicenses.

Page 14

Total Cost of BI Software

User type
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Expert user
Expert user
Expert user
Expert user
Expert user
Expert user
Basic user
Basic user
Basic user
Basic user
Basic user

Product Component Description


MicroStrategy Architect (included)
MicroStrategy Desktop Analyst Module (included)
MicroStrategy Desktop Designer Option (included)
MicroStrategy Intelligence Server Module
Microstrategy Intelligence Server Universal Option
MicroStrategy Report Services Option
MicroStrategy Web Analyst Option
MicroStrategy Web Professional Option
MicroStrategy Web Reporter Module
MicroStrategy Web Universal Option
MicroStrategy Desktop
MicroStrategy Intelligence Server Module
Microstrategy Intelligence Server Universal Option
MicroStrategy Report Services Option
MicroStrategy Web Analyst Option
MicroStrategy Web Professional Option
MicroStrategy Web Reporter Module
MicroStrategy Web Universal Option
MicroStrategy Intelligence Server Module
Microstrategy Intelligence Server Universal Option
MicroStrategy Report Services Option
MicroStrategy Web Analyst Option
MicroStrategy Web Reporter Module
MicroStrategy Web Universal Option
MicroStrategy Intelligence Server Module
Microstrategy Intelligence Server Universal Option
MicroStrategy Web Reporter Module
MicroStrategy Report Services Option
MicroStrategy Web Universal Option

Units
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
10
10
10
10
10
10
85
85
85
85
85

Dev environment MicroStrategy Object Manager Unlimited Intelligence Server Named Users
Dev environment Named user licenses have access to dev/test
Test environment Named user licenses have access to dev/test

Software
Price
$
$
$
$
300
$
300
$
400
$
300
$
300
$
300
$
250
2000
$
300
$
300
$
400
$
300
$
300
$
300
$
250
$
300
$
300
$
400
$
300
$
300
$
250
$
300
$
300
$
300
$
400
$
250

1
2 $
3 $

Support
Price
$
$
$
$
66
$
66
$
88
$
66
$
66
$
66
$
55
$
440
$
66
$
66
$
88
$
66
$
66
$
66
$
55
$
66
$
66
$
88
$
66
$
66
$
55
$
66
$
66
$
66
$
88
$
55

First Year
Cost
$
$
$
$
732
$
732
$
976
$
732
$
732
$
732
$
610
$
7,320
$
1,098
$
1,098
$
1,464
$
1,098
$
1,098
$
1,098
$
915
$
3,660
$
3,660
$
4,880
$
3,660
$
3,660
$
3,050
$
31,110
$
31,110
$
31,110
$
41,480
$
25,925

3 Year
Total
$
$
$
$
996
$
996
$
1,328
$
996
$
996
$
996
$
830
$
9,960
$
1,494
$
1,494
$
1,992
$
1,494
$
1,494
$
1,494
$
1,245
$
4,980
$
4,980
$
6,640
$
4,980
$
4,980
$
4,150
$
42,330
$
42,330
$
42,330
$
56,440
$
35,275

7500 $ 1,650
$
$
Totals

$
9,150
$
$
$ 212,890

$
12,450
$
$
$ 289,670

MicroStrategypricingformediumBIconfiguration
Thelargeconfigurationusesstandardenterprisepricing.
User type
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Admin / IT
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Professional
Expert user
Expert user
Expert user
Expert user
Expert user
Expert user
Basic user
Basic user
Basic user
Basic user
Basic user
Dev environment
Dev environment
Test environment

Software Support
Product Component Description
Units
Price
Price
MicroStrategy Architect (included)
2 $
$
MicroStrategy Desktop Analyst Module (included)
2 $
$
MicroStrategy Desktop Designer Option (included)
2 $
$
MicroStrategy Intelligence Server Module
3 $
300 $
66
Microstrategy Intelligence Server Universal Option
3 $
300 $
66
MicroStrategy Report Services Option
3 $
400 $
88
MicroStrategy Web Analyst Option
3 $
300 $
66
MicroStrategy Web Professional Option
3 $
300 $
66
MicroStrategy Web Reporter Module
3 $
300 $
66
MicroStrategy Web Universal Option
3 $
250 $
55
MicroStrategy Desktop
15
2000 $
440
MicroStrategy Intelligence Server Module
15 $
300 $
66
Microstrategy Intelligence Server Universal Option
15 $
300 $
66
MicroStrategy Report Services Option
15 $
400 $
88
MicroStrategy Web Analyst Option
15 $
300 $
66
MicroStrategy Web Professional Option
15 $
300 $
66
MicroStrategy Web Reporter Module
15 $
300 $
66
MicroStrategy Web Universal Option
15 $
250 $
55
MicroStrategy Intelligence Server Module
50 $
300 $
66
Microstrategy Intelligence Server Universal Option
50 $
300 $
66
MicroStrategy Report Services Option
50 $
400 $
88
MicroStrategy Web Analyst Option
50 $
300 $
66
MicroStrategy Web Reporter Module
50 $
300 $
66
MicroStrategy Web Universal Option
50 $
250 $
55
MicroStrategy Intelligence Server Module
432 $
300 $
66
Microstrategy Intelligence Server Universal Option
432 $
300 $
66
MicroStrategy Web Reporter Module
432 $
300 $
66
MicroStrategy Report Services Option
432 $
400 $
88
MicroStrategy Web Universal Option
432 $
250 $
55
MicroStrategy Object Manager Unlimited Intelligence Server Named Users
1
15000 $ 3,300
Named user licenses have access to dev/test
2 $
$
Named user licenses have access to dev/test
3 $
$
Totals

MicroStrategypricingforlargeBIconfiguration

Page 15

First Year
Cost
$
$
$
$
1,098
$
1,098
$
1,464
$
1,098
$
1,098
$
1,098
$
915
$
36,600
$
5,490
$
5,490
$
7,320
$
5,490
$
5,490
$
5,490
$
4,575
$
18,300
$
18,300
$
24,400
$
18,300
$
18,300
$
15,250
$ 158,112
$ 158,112
$ 158,112
$ 210,816
$ 131,760
$
18,300
$
$
$ 1,031,876

3 Year
Total
$
$
$
$
1,494
$
1,494
$
1,992
$
1,494
$
1,494
$
1,494
$
1,245
$
49,800
$
7,470
$
7,470
$
9,960
$
7,470
$
7,470
$
7,470
$
6,225
$
24,900
$
24,900
$
33,200
$
24,900
$
24,900
$
20,750
$ 215,136
$ 215,136
$ 215,136
$ 286,848
$ 179,280
$
24,900
$
$
$ 1,404,028

Total Cost of BI Software

Oracle: Oracle Business Intelligence SE1 and EE+


ForthesmallconfigurationwewereabletotakeadvantageofOraclesBusinessIntelligence
StandardEditionOne,aBIeditionforlessthan50users.Thiseditionincludesacopyofthe
OracledatabaseandOracleWarehouseBuilderbutitislimitedto2CPUsandOWBis
constrainedtothelocaldatabaseasatarget.Thismakesitunrealisticforafulldatawarehouse
environmentbutitremainssuitablefortheBIcomponent.

User type
Admin / IT
Admin / IT
Professional
Expert user
Basic user
Dev environment
Dev environment
Test environment

Software Support First Year


Product Component Description Units Price
Price
Cost
Server Administrator
1 $ 5,800 $ 1,276 $
7,076
Standard Edition One
1 $ 1,200 $
264 $
1,464
Standard Edition One
1 $ 1,200 $
264 $
1,464
Standard Edition One
3 $ 1,200 $
264 $
4,392
Standard Edition One
20 $ 1,200 $
264 $
29,280
Server Administrator
1 $ 5,800 $ 1,276 $
7,076
Standard Edition One
2 $ 1,200 $
264 $
2,928
0
0 $
$
$
$
53,680
Totals

3 Year
Total
$
9,628
$
1,992
$
1,992
$
5,976
$
39,840
$
9,628
$
3,984
$
$
73,040

OraclepricingforsmallBIconfiguration
ThemediumandlargeconfigurationsbothuseOracleBusinessIntelligenceSuiteEnterprise
EditionPlus.Oraclechargesfornonproductionuse.Thecombinationofhigherperuserprices
andthechargefordevelopmentandtestenvironmentsincreasedthecostofOracleforthe
largerconfigurations.
User type
Admin / IT
Admin / IT
Professional
Expert user
Basic user
Dev environment
Dev environment
Test environment
Test environment

Product Component Description Units


Server Administrator
2
Oracle BI Suite Enterprise Edition Pl
2
Oracle BI Suite Enterprise Edition Pl
3
Oracle BI Suite Enterprise Edition Pl 10
Oracle BI Suite Enterprise Edition Pl 85
Server Administrator
2
Oracle BI Suite Enterprise Edition Pl
5
Server Administrator
2
Oracle BI Suite Enterprise Edition Pl
5

Software
Price
$ 5,800
$ 2,000
$ 2,000
$ 2,000
$ 2,000
$ 5,800
$ 2,000
$ 5,800
$ 2,000

Support
Price
$ 1,276
$
440
$
440
$
440
$
440
$ 1,276
$
440
$ 1,276
$
440
Totals

First Year
Cost
$
14,152
$
4,880
$
7,320
$
24,400
$ 207,400
$
14,152
$
12,200
$
14,152
$
12,200
$ 310,856

3 Year
Total
$
19,256
$
6,640
$
9,960
$
33,200
$ 282,200
$
19,256
$
16,600
$
19,256
$
16,600
$ 422,968

OraclepricingformediumBIconfiguration
ThelargeconfigurationusesthesameOBIEE+edition.

User type
Admin / IT
Admin / IT
Professional
Expert user
Basic user
Dev environment
Dev environment
Test environment
Test environment

Product Component Description Units


Server Administrator
3
Oracle BI Suite Enterprise Edition Pl
3
Oracle BI Suite Enterprise Edition Pl 15
Oracle BI Suite Enterprise Edition Pl 50
Oracle BI Suite Enterprise Edition Pl 432
Server Administrator
3
Oracle BI Suite Enterprise Edition Pl 18
Server Administrator
3
Oracle BI Suite Enterprise Edition Pl 18

Page 16

Software
Price
$ 5,800
$ 2,000
$ 2,000
$ 2,000
$ 2,000
$ 5,800
$ 2,000
$ 5,800
$ 2,000

Support
Price
$ 1,276
$
440
$
440
$
440
$
440
$ 1,276
$
440
$ 1,276
$
440
Totals

First Year
Cost
$
21,228
$
7,320
$
36,600
$ 122,000
$ 1,054,080
$
21,228
$
43,920
$
21,228
$
43,920
$ 1,371,524

3 Year
Total
$
28,884
$
9,960
$
49,800
$ 166,000
$ 1,434,240
$
28,884
$
59,760
$
28,884
$
59,760
$ 1,866,172

Total Cost of BI Software

OraclepricingforlargeBIconfiguration

Pentaho: Pentaho BI Suite


Pentahoprovidessoftwareunderasubscriptionlicense,withtheprimaryfactorbeingthe
numberofusers.Forthesmallconfigurationweusedthe"Silver"level,whichimposesa
restrictionofnomorethan25users.LikeotherBIvendors,thisisanentrylevellicense
meaningit'sdesignedprimarilyfortheSMBandstartermarket.
User type
Support
Admin / IT
Professional
Expert user
Basic user
Dev environment
Test environment

Software
Product Component Description Units
Price
Pentaho Silver edition
1 $
1 $
covered in line 1
1 $
covered in line 1
3 $
covered in line 1
20 $
covered in line 1
1 $
no charge
0
0 $
-

Support
Price
$ 10,000
$
$
$
$
$
$
Totals

First Year
Cost
$ 10,000
$
$
$
$
$
$
$ 10,000

3 Year
Total
$ 30,000
$
$
$
$
$
$
$ 30,000

PentahopricingforsmallBIconfiguration
Themediumconfigurationusesa"Gold"PentahoEnterpriseEditionsubscription.Theseare
unlimiteduserlicensespricedbyCPUband.Forourconfigurationthisplacesanupperlimitof6
CPUs(notcores,somulticoreCPUscanbeused).Forboththemediumandlargeconfiguration
wewerethereforeabletousethefirsttiersincetheservercouldcontainupto24cores.
User type
Support
Admin / IT
Professional
Expert user
Basic user
Dev environment
Test environment

Software
Product Component Description Units
Price
Pentaho Gold edition
1 $
2 $
covered in line 1
3 $
covered in line 1
10 $
covered in line 1
85 $
covered in line 1
2 $
no charge
3 $
no charge

Support
Price
$ 29,000
$
$
$
$
$
$
Totals

First Year
Cost
$ 29,000
$
$
$
$
$
$
$ 29,000

3 Year
Total
$ 87,000
$
$
$
$
$
$
$ 87,000

First Year
Cost
$ 29,000
$
$
$
$
$
$
$ 29,000

3 Year
Total
$ 87,000
$
$
$
$
$
$
$ 87,000

PentahopricingformediumBIconfiguration

User type
Support
Admin / IT
Professional
Expert user
Basic user
Dev environment
Test environment

Software
Product Component Description Units
Price
Pentaho Gold edition
1 $
2 $
covered in line 1
15 $
covered in line 1
50 $
covered in line 1
432 $
covered in line 1
2 $
no charge
3 $
no charge

Support
Price
$ 29,000
$
$
$
$
$
$
Totals

PentahopricingforlargeBIconfiguration

Page 17

Total Cost of BI Software

SAP: BusinessObjects Edge and Enterprise Professional


ThesmallconfigurationqualifiedfortheSAPBusinessObjectsEdgeeditionwhichincludesall
relevantfunctionalityandenoughlicensesofadminandprofessionaldevelopercomponents
thatnoadditionallicenseswererequired.TheEdgeeditionislimitedtoasingleserverbutthe
serversizeisnotlimitedasitiswithsimilareditionsofMicroStrategyandOracle.
User type
Base license
Admin / IT
Professional
Expert user
Basic user
Dev environment
Test environment

Product Component Description


Business Objects Edge 3.1 Standard 10 NUL
1 dev license per 10 NULs, covered in line 1
1 dev license per 10 NULs, covered in line 1
1 dev license per 10 NULs, covered in line 1
covered in line 1
Named user licenses have access to dev/test
Named user licenses have access to dev/test

Software
Price
$ 36,000
$
$
$
$
$
$
-

Units
3
1
1
3
20
1
0

Support
Price
$ 7,920
$
$
$
$
$
$
Totals

First Year
Cost
$
43,920
$
$
$
$
$
$
$
43,920

3 Year
Total
$
59,760
$
$
$
$
$
$
$
59,760

SAPpricingforsmallBIconfiguration
TheEdgepackagingmadeSAPmorecompetitiveforthesmallandmediumconfigurationseven
thoughbothPentaho'sandMicroStrategy'sbaselicenseswerefreeandonlyafewaddon
componentsaddedtothecostofMicroStrategy.ThismadeSAPthelowestcosttraditional
vendorforthemediumconfiguration.
User type
Base license
Admin / IT
Professional
Expert user
Basic user
Dev environment
Test environment

Product Component Description


Business Objects Edge 3.1 Standard 10 NUL
SAP BusinessObjects Xcelsius Enterprise Named User
SAP BusinessObjects Xcelsius Enterprise Named User
1 dev license per 10 NULs, covered in line 1
covered in line 1
Named user licenses have access to dev/test
Named user licenses have access to dev/test

Units
10
2
3
10
85
3
3

Software
Price
$ 12,000
$ 1,220
$ 1,220
$
$
$
$
-

Support
Price
$ 2,640
$
268
$
268
$
$
$
$
Totals

First Year
Cost
$ 146,400
$
2,977
$
4,465
$
$
$
$
$ 153,842

3 Year
Total
$ 199,200
$
4,050
$
6,076
$
$
$
$
$ 209,326

SAPpricingformediumBIconfiguration
Thelargeconfigurationrequiredenterpriselicensing,aswithalltheothervendors.SAP
changedtheirpricingpolicyandnolongerchargesfornonproductionenvironments,making
themmorecompetitivewithenterpriselicensing.
Software Support
Price
Price

3 Ye ar
Total

Product Component Description

Admin / IT

SAP BusinessObjects Enterprise Prof. QRA Named User

3 $

1,250 $

275 $

4,575 $

6,225

Admin / IT
Admin / IT
Admin / IT

SAP BusinessObjects Desktop Intelligence Named User


SAP BusinessObjects Xcelsius Enterprise Named User
SAP BusinessObjects Web Intelligence Named User

3 $
3 $
3 $

1,130 $
1,220 $
1,130 $

249 $
268 $
249 $

4,136 $
4,465 $
4,136 $

5,627
6,076
5,627

Professional
Professional
Professional
Expert user
Expert user
Expert user

SAP
SAP
SAP
SAP
SAP
SAP

275
268
249
275
268
249

Basic user
Basic user
Basic user
Dev environment
Test environment

SAP BusinessObjects Enterprise Prof. QRA Named User


SAP BusinessObjects Xcelsius Enterprise Interactive Viewing NUL
SAP BusinessObjects Web Intelligence Interactive Viewing NUL
Named user licenses have access to dev/test
Named user licenses have access to dev/test

BusinessObjects
BusinessObjects
BusinessObjects
BusinessObjects
BusinessObjects
BusinessObjects

Units

First Year
Cost

User type

Enterprise Prof. QRA Named User


Xcelsius Enterprise Named User
Web Intelligence Named User
Enterprise Prof. QRA Named User
Xcelsius Enterprise Named User
Web Intelligence Named User

15
15
15
50
50
50

$
$
$
$
$
$

1,250
1,220
1,130
1,250
1,220
1,130

432
432
432
3
15

$
$
$
$
$

1,250
570
570
-

SAPpricingforlargeBIconfiguration

Page 18

$
$
$
$
$
$

$
275
$
125
$
125
$
$
Totals

$
$
$
$
$
$

22,875
22,326
20,679
76,250
74,420
68,930

$
31,125
$
30,378
$
28,137
$ 103,750
$ 101,260
$
93,790

$ 658,800
$ 300,413
$ 300,413
$
$
$ 1,562,417

$ 896,400
$ 408,758
$ 408,758
$
$
$ 2,125,912

Total Cost of BI Software

About the Author

MarkMadsenisaresearchanalystfocusedoninformationmanagement,BIandanalytics.Mark
isanawardwinningarchitectandformerCTOwhoseworkhasbeenfeaturedinnumerous
industrypublications.Heisaninternationalspeakerandmanagestheopensourcechannelat
theBusinessIntelligenceNetwork.FormoreinformationortocontactMark,visit
http://ThirdNature.net.
ThirdNatureisaresearchandconsultingfirmfocusedonnewpractices
andemergingtechnologyforbusinessintelligence,dataintegrationand
informationmanagement.Thegoalofthecompanyistohelp
organizationslearnhowtotakeadvantageofnewinformationdrivenmanagementpractices
andapplications.Weofferconsulting,educationandresearchservicestosupportbusinessand
ITorganizationsandtechnologyvendors.

Page 19

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