Will data consolidation really save you money?

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By: Wise Marketer Staff |

Posted on April 26, 2002

Will data consolidation really save you money?

Companies with multiple data warehouses risk increased costs from managing disparate data sources and redundant data duplication. A new package of services from Teradata aims to consolidate those data warehouses into a single centralised one to reduce the otherwise inevitable costs, risks and maintenance.

At the International Oracle Users Group (Americas) conference, Teradata - a part of NCR - announced the expansion of its Data Mart Consolidation Programme, providing new services to help businesses consolidate their various data warehouses into a single, centralised one. It allows companies to save the time, maintenance and risks associated with multiple data sources, and aims to eliminate the costs associated with redundant 'data marts' (data warehouses).

Teradata estimates that the individual cost of a data mart is between US$1.5 million and US$2 million each year. Many executives are using the programme and seeing an increase in system performance, with a better 'big picture' view of their business.

In demand "I've seen over a hundred companies in the past 18 months, guiding large organisations through the consolidation process," says Allen Messerli, principal of  Allen Messerli Enterprise Systems, "and I can't keep up with the demand. The credibility of the Teradata Data Mart Consolidation programme is superb."

Vickie Farrell, vice president of Teradata warehouse marketing, comments that "an increasing number of organisations are consolidating data marts." She adds that "customers are reporting that they have reduced the total cost of ownership by stemming data mart proliferation, and are getting more value."

American Eagle Outfitters is using the programme to get a better understanding of its business operations by going to one central location to analyse trends in sales and inventory. Ken Watts, vice president of information services, said "By consolidating our information with this technology, we can better manage our large amounts of data. This data warehouse will be a key component in supporting our future growth."

The programme provides executives with a wide range of services to assess, implement and evaluate the consolidation of data marts, including:·  Business Impact Models (BIMs), which assess financial impact;·  Teradata Benchmarking Center;·  Professional consulting services;·  Customer reference programme;·  Global customer training.

Forecasting the results Teradata's BIM is an assessment tool that helps executives project and measure the ROI for their data warehouse and customer relationship management (CRM) technologies. It helps IT executives establish realistic goals and expectations, and to quantify the financial impact of the proposed data warehouse solution. The BIM is a predictive mathematical model that treats the acquisition of technology like an investment portfolio - with an analysis of value, growth, risk and timing. A BIM study includes the estimated costs of technology acquisition, expected annual benefits, and a financial analysis of the IT investment itself.

Overcoming problems Because there are a number of factors which can present difficulties in the process (business needs, political objections, incompatibility or inconsistency), Teradata provides the necessary help for all the phases of data warehouse development, from design and implementation to the ongoing maintenance of the data warehouse. The consultancy assesses key areas for cost savings and ways to gain business value by making good use of the newly consolidated data warehouse. The company's IT staff can also be individually trained online, through Teradata's new web-enabled learning environment. As Teradata says, "anytime, anywhere, any place."

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