Program from Teradata helps companies cut hidden IT costs

Teradata, a division of NCR Corporation, has launched a program called Data Mart Consolidation designed to help companies save millions by tackling a common problem hidden in their IT infrastructures - too many data warehouses, not enough information. Teradata is exclusively represented in SA by National Data Systems (NDS), a member of the Bytes Technology Group.

By combining these departmental data warehouses (called data marts) into an integrated system, organisations can increase the amount of knowledge they have about the state of their business while saving millions, a win-win situation in these tough economic times.

To help companies smoothly and seamlessly consolidate their data marts, Teradata`s Data Mart Consolidation programme includes assessment services, migration tools and customer education, in addition to business impact models that calculate return on investment (ROI).

By taking the information from disparate systems and combining it into a central, enterprise-wide Teradata warehouse, companies can eliminate their redundant data mart costs, while enjoying an increase in system performance and a "big picture" view of the business. This big picture will allow a company to integrate its Web data with its store-by-store purchasing data or connect its supply chain to its sales activity, for example. With 61% of businesses* lacking a single view of their data, companies that work with Teradata to consolidate systems will have an immediate advantage over their competition.

The background for many companies` use of disparate data marts to capture and analyse business data can be traced back to organisational politics, departmental budgeting policies, the approach of solving only one business problem at a time and database vendors whose products work best with small sets of data. Teradata`s research found that 59% of companies maintain up to 30 data marts, and some companies have as many as 100. Since the initial cost of purchasing these systems often falls within companies` departmental capital spending limits, organisations lose track of the exponential costs of duplicating staffing, hardware, and software licences.

"One of the biggest perpetrators of costly data marts are vendors who lead companies down this path because their databases don`t have the power or scalability necessary for an enterprise system," said Simon O` Hagan, general manager of the Teradata Solutions Division at NDS.

"In our Data Mart Consolidation program we`ve been replacing systems primarily from Oracle with an increasing number of IBM DB2, Informix and Sybase systems."

Teradata customers such as 3M and Delta Air Lines who have consolidated their data marts are saving from thousands to millions of dollars per year in licence, maintenance and personnel costs previously incurred by maintaining and synchronising redundant data on multiple systems. These savings are inclusive of the costs of the integration and the Teradata warehouse.

The business impact models developed by Teradata can create custom ROI projections based on the size and number of data marts consolidated and the speed of implementation. Using the model and patent-pending business impact methodology, one recent Teradata customer`s analysis yielded a projected IT-support cost savings of 40% to 50%. In this specific instance, annual cost savings represented tens of millions of dollars.

"Companies that took the data mart route now have new incentives to consolidate their data in a single integrated warehouse. Today`s economic environment increases the appeal of an enterprise system that will both reduce IT costs and improve competitive advantage through more comprehensive and accurate analysis," said O` Hagan.

"Our surveys of IT professionals show 68% believe their companies need to consolidate data marts. We demonstrate the cost savings using an organisation`s own data, and our current customers` results demonstrate the business benefits. It`s a win-win combination that`s very convincing."

Teradata`s data mart consolidation program is backed by a worldwide network of experienced Teradata professionals who have been trained on data mart consolidation assessment services and migration tools and utilities. Teradata`s Data Mart Consolidation program is based on experience in installing enterprise systems for leading companies in the retail, financial services, insurance, transportation, e-business and telecommunications industries.

*Research based on surveys of 108 IT professionals from large US companies conducted in October 2001 by BuzzBack.com for Teradata.