Thinking About the Pivotal Announcements…

Yesterday I provided a model for how business sees open source as a means to be profitable (here). This is the game Pivotal seems to be playing with their release of Hadoop, Gemfire, HAWQ, and Greenplum into open source. I do not know their real numbers… so they may need more or fewer additional customers than the mythical company to get back to break-even. But it is unlikely that any company can turn the corner from a license-based revenue stream to a recurring revenue stream in a year… so Pivotal must be looking at a loss. And when losses come it is usual to cut costs… to cut R&D.

There has already been a brain-drain out of the database ranks at Pivotal as they went “all in” on Hadoop. They likely hope for an open source community to pick up the slack… but there is not a body of success I can see in building a community to engineer a commercial product-turned-open. This is especially problematic for Gemfire, an old technology that has been in the commercial space for a very long time. HAWQ has to compete for database resources with the other Hadoop RDBMS technologies… that will be difficult. Greenplum has a chance as it is based on PostgreSQL… but it is a long way away from the current PostgreSQL code base these days. There is danger here.

The bottom line… Greenplum and HAWQ and Gemfire have become risky propositions for both the current customer base and for new customers. I’ll leave it to you to evaluate the risk as this story unfolds. Still, with the risk comes reward… the cost of acquiring Greenplum will drop dramatically and today Greenplum is a competitive product. In addition, if Greenplum gains some traction, it will put price pressure on the other database products. Note that HAWQ was already marked down to open source price levels… and part of Pivotal’s problem was that HAWQ was eating at the Greenplum market. With these products priced at similar levels there becomes some weirdness in choosing… but the advantage is to customers looking at Greenplum.

One great outcome comes for Pivotal Hadoop customers… the fact that Hortonworks will more-or-less subsume Pivotal Hadoop leaves those folks in a better place than before.

If you consider the thought experiment you would have to ask yourself why a company that was breaking even would take this risky route? It could be that they took the route because they were not breaking even and this was a possible path to get even. Also consider… open sourcing code is the modern graceful way to retire an unprofitable product line.

This is sound thinking by Pivotal… during the creation, EMC gave Pivotal several unprofitable troubled assets and these announcements give Pivotal a path forward. If the database product line cannot carry their weight then they will go into maintenance mode and slowly fade. Too bad… as you know I consider Greenplum a solid product whose potential was wasted. But Pivotal has a very nice product in Cloud Foundry… and they clearly see this as their route to profitability and to an IPO… a route that no longer includes a significant contribution from database products.

Open Source is Not a Market…

This post is more about the technology business than about technology… but it may be relevant as you try to sort out winners and losers… and this sort of sorting is important if you consider new companies who may, or may not, succeed in the long run.

To make my point let us do a little thought experiment. Imagine a company doing $100M in revenue with a commercial, not open source, database product. They win the $100M in revenue by competing with Oracle, IBM, Microsoft, Teradata, et cetera… and maybe competing a little here and there with some open source products.

Let’s assume that they make 50% of their revenue from services and support, and that their average sale is $2M… so they close 25 deals a year competing in this market. Finally, let’s assume that they break-even each year and spend 20% of their revenues on R&D. The industry average for support services is 20%.. so with each $2M sale they add $400K in recurring revenue.

They are considering making their product open source. Let’s assume that they make the base product free… and provide some value-added offering that costs $200K for the average buyer. Further, they offer a support package for the same $400K/year customers currently pay. How does the math work out?

Let’s baseline against the 25 deals/year…

If they make 25 sales and every buyer buys both the support package and the value-added offer the average sale drops from $2M to $200K, sales revenue drops from $50M to $5M, the annual revenue drops from $100M to $55M… and the company loses $45M. So… starting off they need to make 225 more sales just to break even. But now it gets complicated… if they sell 5 extra deals then in the next year they earn $2M extra in support fees… so if they sell 113 extra deals in year one then in year two they have made up the entire $45M difference and they are back to break-even going forward. If it takes them 2 years to get the extra recurring revenue then they lose money in year two… but are back to break-even in year three.

From here it gets even more complicated. The mythical company above sells the baseline of 25 new copies a year with an enterprise sales force that is expensive. There is no way that the same sales force that services 25 sales/year could service 100+ extra deals. So either costs go up or the 100+ extra customers becomes unattainable. We might hope that the cost of sales will drop way off as the sales price moves to $200K. This is not unreasonable… but certainly not guaranteed. Further, if you are one of the existing sales-staff then you have to sell 10X just to make the same commission. Finally these numbers assume that every customer buys the value-add and gets enterprise-level support. Reality will be something less than this.

We might ask: is it even possible to sell 100+ more with the same product in the same market? Let us be clear that the market the database product plays in has not changed. Open Source is not a market. All we have done is reduced the sales price for the product with some hope that price is a significant driver in the market.

This is not meant as an academic exercise. Tomorrow we will consider how this thought experiment applies to Pivotal’s announcements last week… and to the future of Pivotal’s database assets (here).

Key Values and Key-Value Stores and In-memory Databases

Back to more geeky topics… although my Mom loved the videos…

When very high performance is required to return key performance metrics derived from large volumes of data to a very large number of clients… in other words when volume and velocity are factors and the results are to be delivered to thousands of users (I suppose that I could conjure up a clever V here… but the cleverness would come from the silliness of the semantic stretch… so I’ll leave it to you all to have some pun); the conventional approach has been to pre-compute the results into a set of values that can be fetched by key. In other words, we build a pre-aggregated and pre-joined result table that provides answers to a single query template. Conventionally building this query-specific result table has been the only way to solve these big problems.

Further, we conventionally store these key-value results in a relational DBMS and fetch a row at a time providing pretty darn good performance. Sometimes pretty darn good is not good enough. So there are new options. Key-value data stores may well offer a solution that provides performance and scale at a price well below what has been conventional to date. This is well and good.

But I would like to challenge the conventional thinking a little. The process of joining and aggregating volumes of data into results is a BI process. For the last twenty years BI practitioners have been building pre-aggregated tables and data marts to solve these same problems… maybe not at scale… and this practice has proven to be very expensive, the opposite of agile, and unsustainable. The people costs to develop and support multiple pre-computed replicas is exorbitant. The lack of flexibility that comes from imposing a longish development project over what is essentially an aggregate BI query is constraining our enterprise and our customers.

A better approach is to use the new high performance database products: HANA, BLU, Oracle 12c, or maybe Spark; to aggregate on-demand. Included in this approach is a requirement to use the new high performance database computing platforms available to house the databases.

Consider this… an in-memory DBMS can aggregate 12M rows/sec/core. It can scan 3MB/msec/core. Companies like SGI and HP are ganging processors together so that you can buy a single node that contains 32, 64, or 128 cores… and this number will go up. A 64-core server will aggregate 768M rows/sec and scan 19.2TB/sec… and you can gang a small number of nodes together and scale out.

Providing an extensible BI platform for big data is so much easier than building single-query key-value clusters… there is much less risk… and the agility and TCO make it close to a no-brainer. We just have to re-think the approach we’ve used for 20 years and let the new software and hardware do the work.

Some HANA and Intel Videos

Here are two videos of me speaking from the 2013 Intel Developer Forum FYI.

The first has some technical detail:

The second is more of a PR pitch about Intel Hadoop:

I’m working with Intel on a new video with a pretty interesting storyline (at least I hope that you find it interesting?)… so stay tuned.

Rob

Hadoop Squeezes Greenplum

For several years now I have been suggesting that Hadoop will squeeze the big data RDBMSs: Teradata, Exadata, Greenplum, and Netezza… squeezing them first out of the big data end of the market and then impinging on the high-end of the EDW space. Further I have suggested that there may be a significant and immediate TCO reduction from using Hadoop with your EDW RDBMS which squeezes these product’s market faster and further.

Originally I suggested that Greenplum and Netezza would feel the squeeze first since they were embracing Hadoop directly and at the expense of their RDBMS offerings. Greenplum took this further by trying to compete on price… cutting the price of the GPDB and then introducing HAWQ, basically GPDB on HDFS, at a Hadoop DBMS price point. These moves coupled with a neglect of the EDW market where Greenplum made its name apparently has allowed Hadoop to squeeze Greenplum out of the commercial market.

My network has been humming with rumors from reliable sources for 4+ weeks now… and I am now getting confirmation from both inside and outside Pivotal that the Greenplum software will move to open source in short order. The details are being worked out… and while there may still be a change of heart… it seems to be a done deal. The buzzness plan that Greenplum embarked on prior to the EMC acquisition in 2010 has not been a commercial success.

No one is sorrier to see this than me. Greenplum had a real shot at success. It was a very solid piece of work leading the space with strong architectural extensions like data flow shared nothingness, hybrid row/columnar capabilities, and into big data applications. The ORCA optimizer had the potential to change the game again.

Greenplum was nearly profitable in 2009 running hard at Teradata and Exadata and Netezza in the EDW space. The EDW market is tough… so we have to be fair and point out that pursuing this market may have led to the same result… but a small-market analytics play was followed by an open-source Hadoop play that could only end in squeezing Greenplum. There was never really a business plan with a win at the end.

Hopefully by open sourcing Greenplum some of the sound software will make it into PostgreSQL… but dishing Greenplum into the open source space with few developers and no community dishes it into the same space that Informix, Red Brick, and others sit. I know that I suggested open sourcing Greenplum over 18 months ago (see the wacky idea here)… but the idea then, as now, amounts to capitualization. I just declared what seemed to me to be inevitable a little sooner than Pivotal.

Teradata has now further embraced Hadoop… and they run the risk of repeating the Greenplum downturn. They have a much stronger market platform to work from… but in the long run this may also be a deadly embrace.

So here is another wacky idea. The only successful business model around open source software to date (which is not to say that there is not some other model to be discovered) generates revenue from support and services and just a little software around the edges. Teradata has a support team and a services business that knows big data and is embedded in the enterprise… Cloudera, Hortonworks, and MapR are not close here. Were Teradata to go after the Hadoop market with their own distribution (not much of a barrier to entry here.. just download the Apache stuff and build a team of committers… they might even be able to pick up the Pivotal team)… they would start from a spot way ahead of the start-ups in several respects… in several hard respects. Further they have Aster IP which could qualify as software around the edges. As a Hadoop player Teradata could more easily manage how Hadoop squeezes their business, mitigate risk, and emerge a big winner in the big data space.

Related Database Fog Blog Posts:

More thinking on Specialized Databases

Recently I posted (here) some thinking that suggested that the cost of replicating data into specialized databases might outweigh the benefits of specialization. This post will present a counter view and try to sort out when a specialized database might make sense.

In the ZDNet post here: “Look at What Google and Amazon are doing with Databases: That’s your future” Toby Wolpe and Neo Technology CEO Emil Eifrem suggest that:

“The era of the one-size-fits-all database is over. It used to be when I grew up as a developer that for the architect in the project, when it came to choosing the bottom layer of the stack — the persistence layer — the choice was Microsoft, or IBM, or Oracle, or Sybase. It was a vendor choice.

They were all the same type of database. But that era has gone forever and it will never come back because data is just so big and so irregularly shaped now that you’re always going to be able to get a hundred times improvement, a thousand times improvement, a million times improvement if you get a data technology that is shaped like the shape of your data.”

While I have suggested that a swiss army knife DBMS that solves many problems from a single data source… thereby eliminating the cost and complexity of data replication and data synchronization… might provide a sensible choice for most commercial applications.

Actually I agree with Eifrem and Wolpe in many respects… but there is a difference in our starting assumptions. Let me be clear first about where I strongly agree.

When data volumes grow to web-scale… to Google-scale or Amazon-scale… then the inefficiencies of one-size-fits-all amplify and become intractable… so with a specialized DBMS you might indeed see 100X, 1000X, or more performance advantage and gain a competitive edge from replication and specialization.

But a lot of core data is not Big Data. This is where we do not seem to agree. While our company’s all aspire to have a customer database that is in the petabyte range… it is just not usually the case. Likewise we aspire to have a transaction database requiring petabyte scale… but it just is not the case in most businesses even if you keep years and years of history.

Let’s consider graph databases… Maybe customer data should be in a graph database to specialize it for processing relationships. But this is likely to make it sub-optimal for many other processes… in fact it is the thesis of the ZDNet article that it will make it sub-optimal for many other processes… and so replication to more specialized databases is the only alternative.

How might we handle this relationship problem in a generalized DBMS? HANA, for example, can form graphs in-memory from data shaped into columns… unfolding the graphDB blade from the swiss army knife when required but storing the data in a generalized shape otherwise.

It may be true that there could be orders of magnitude advantage for big data shaped into a specialized graphDB form… But if your customer database is in the terabyte range or less, then the advantage may be negligible… or at least the advantage may not justify the cost of replication into two forms.

And think about the implications of specializing big data. Google replicates tens of petabytes of data into multiple shapes to gain competitive advantage… and ten petabytes specialized and replicated ten times is really really big data.

So I agree with parts of the ZDNet post… big data companies are likely to be pushed by the competition to store the data multiple times in specialized replicated big databases… and for this you will look to Google, Amazon, Netflix, and the like for database technology. But most enterprises will be able to store core data in generalized databases… and will extend into big data realms only as machine-to-machine transactions and/or the Internet of Things drive them there… and then they will extend their data architectures rather than replicate again and again.

Some Database Performance Concepts

I’m working on a new idea… it may or may not pan out… but here are some concepts for your consideration… with some thoughts on their performance implications.

First a reminder… a reality check. In my experience if you POC two databases at about the same price point…and one is 30% faster than the other, 1.3X, then 50% of the time the faster DBMS will win the business. If one DBMS is 2X faster… then it will win the business 90% of the time. The 10% where the faster product loses will be because of internal politics or, for an existing application, due to the migration costs. Note that IMO it is silly to do a POC if you know up front that you will not pick the winner.

Now to the concepts… Note that these are ballpark numbers to help you think about trade-offs…

The latency to start fetching data from DRAM is 100 ns… from disk it is 10M ns. If we assume that a smart RDBMS pre-fetches 80% of the data into DRAM then we can assume that an in-memory DBMS has a 200,000X performance advantage over a disk-based system.

The latency to a Flash/SSD device is 100K-200K ns. With the same 80% pre-fetch assumption an in-memory DBMS will be 20,000X faster.

Note that neither of these models include data transfer times which will favor in-memory databases even more.

If we have a hybrid system with both disk and SSD and we assume that 90% of the reads hit the SSD and that both layers in the storage hierarchy achieve 80% pre-fetch then then the in-memory system will be 38,000X faster. If fewer than 90% of the reads hit the SSD, then the latency goes up quickly.

These numbers form the basis for selecting in-memory caches like Teradata’s Intelligent Memory option as well as in-memory offerings from IBM, Microsoft, Oracle and SAP.

For typical data warehouse workloads column compression will provide around a 2.5X performance boost over row compression. This has two implications: you will get 2.5X better performance using column storage and you will get 2.5X more data into the faster levels of your storage hierarchy… more in SSD and more in-memory.

If we assume that a typical query only touches 10% of the columns in the tables addressed… then column projection provides a 9X performance boost over a row store. Exadata does not support column projection in the storage layer… and other hybrid row-or-column systems provide it only for columnar tables.

If we assume that the average latency from the processor caches is 10ns (.5ns L1, 7ns, L2, 15ns L3) and the latency to DRAM is 100ns then an in-memory system which pre-fetches data effectively into the processor caches will be 10X faster than one which goes to DRAM. If we assume that a standard RDBMS which processes uncompressed standard data types (no vector processing) gets a 20% cache hit ratio then the advantage to a cache aware RDBMS which loads full cache lines is around 8X. HANA, BLU, and the Oracle in-memory products are cache aware and get this boost with some caveats.

BLU and the Oracle in-memory option are hybrid systems that often convert data to a row form for processing (see here for some data on Oracle). If we assume that they use the full columnar in-memory vector-based structures 50% of the time then these products will see a 4X performance boost. HANA recommends that all data be stored in a columnar form so it would often see the full 8x boost.

These vector-based processes also avoid the cost of decompression… and since they process compressed vector data they can fit more information into each cache line. There is another 20%-200% (1.2X-2X) boost here but I cannot estimate it closer than that.

Finally, the vector based processes use the high performance computing instruction sets (AVX2) offered on modern CPUs… and this provides another 10X+ boost. Again, BLU and Oracle will utilize the vector form less often than HANA so they will see a boost over products like Teradata… but not see as large a boost as HANA.

There are other features at play here… some products, like HANA, shard data in-memory to get all of the cores busy on each query. I have not been able to determine if BLU or Oracle in-memory are there yet? Note that this powerful feature will allow a single query to run as fast as possible… but the benefit is mitigated when there is a workload of multiple concurrent queries (if I have 4 cores and 4 queries running concurrently, one query per core, then the 4 queries will take only a little more time than if I run the 4 queries serially with each query using all 4 cores).

It is important to note that the Oracle In-memory option does not run in the storage component of an Exadata cluster… only on the RAC layer. It is unclear how this works with the in-memory option.

The bottom line is that in-memory systems are not all alike. You can sort of add up the multipliers to get in the ballpark on how much faster Teradata will be with the Intelligent Memory option… how much faster than that a hybrid row and vector-column system like BLU or Oracle In-Memory… and how much faster a pure in-memory system might be. One thing is for sure… these in-memory options will always make the difference in a POC… in every case including them or not will blow away the 2X rule I started with… and in every case the performance benefit will outweigh the extra cost… the price/performance is very likely to be there.

I know that is skipped my usual referencing so that you can see where I pulled these numbers from… but most of this information is buried in posts here and there on my blog… and as I stated up front… these are ballpark numbers. Hopefully you can see the sense behind them… but if you think I’m off please comment back and I’ll try to adjust…

A Modern Data Warehouse Architecture: Part 3 – Build an EDW Annex

In the first two post of this series (here and here) I first suggested that Hadoop could be effectively used as the platform for staging and then suggested that a modern warehouse would have a federation layer that turned it into a logical data warehouse. Figure 3 depicts this extended architecture.

Figure 3. A Logical EDW

But if we have both Hadoop and a federation layer implemented… and we recognize the economics associated with moving data to Hadoop… Hadoop provides a 5X-50X price advantage over a commercial very large DBMS product… and we can move data from the expensive environment to the low-cost environment without impacting any applications… then we have the opportunity to move governed EDW data to Hadoop and place it into a Hadoop EDW Annex. Figure 4 shows this.

An EDW Annex

Now you might suggest that there is an impact… Hadoop will be significantly slower than a commercial EDW platform (for now…). But experienced EDW architects understand that in the classic architecture we had to co-locate data in a single database to join the data. So, we put all of the data, hot and cold data, in our EDW even though the service levels required for queries that touch old cold historical data did not justify the power and price of the EDW infrastructure. We had to but did not need to. We knew, if only implicitly, that most EDW queries touch a small subset of the data. Following the ratio suggested by Teradata (see the reference here) that 90% of the queries touch only 20% of the data we can imagine a system where 80% of the data resides in Hadoop to service 10% of the queries… and only that 10% experiences Hadoop performance.

I suggested this approach for Teradata here… but an architecture with an EDW Annex to store cleansed governed historical data works for any expensive RDBMS that can federate with Hadoop: Exadata, Netezza, Teradata, or HANA.

This concludes this series… sort of. I’ll post soon to express more about how this architecture provides long-term strategic value. I think that these three concepts: Hadoop as an EDW staging area, federation and logical data warehousing, and Hadoop as an EDW Annex; provide the foundation for a modern EDW… and I imagine that over the next several years this will become the reference architecture most of us will build to.

A Modern Data Warehouse Architecture: Part 2 – Make it a Logical Data Warehouse

In the first post of this series (here) I suggested that Hadoop could be effectively used as the platform for staging. Figure 2 describes the result. In this post I will extend the architecture by adding a data federation feature and turning the entire picture into a logical data warehouse… and then we’ll consider the consequences.

Figure 2. Add a Data Lake

Figure 3 shows this extension.. but lets quickly review what a federation fabric provides (for more detail on this please see the series that starts here).

Figure 3. Add a Federation Layer

First, the fabric allows any of the tables and files in the picture to be registered as “virtual” tables. This includes tables in EDWs, and any marts, in one or more Hadoop systems, the sandbox, and even in the source systems. From here the fabric is viewed by any programs in the BI, Analytics, Apps layer as a single relational database composed of all of the registered tables.This fabric would consume ODBC and JDBC queries at a minimum and provide some level of data translation, function translation, and query translation to allow all of the virtual tables to be queried through the single SQL dialect offer by the fabric. Finally, the fabric would provide some measure of optimization to reduce the overhead of accessing these distributed systems. It is this optimization that is the main topic of the series I suggested above.

One of the important implications of this… one that is often overlooked before implementation… is that the queries emitted from the fabric add workload to the underlying databases. If, in Figure 3, the top EDW is 100% busy servicing un-federated queries then adding a workload that joins that data to the 2nd EDW’s data will overburden the system. This is why it is not usually sound design to integrate source, OLTP systems into a fabric. The OLTP systems are not likely to be optimized in any way for the resulting workload.

But the upside of the fabric is significant. Consider:

  • If we just said “yes” and loaded ungoverned data into a sandbox the business users can immediately access that data and join it to dimensions and facts deployed elsewhere in the enterprise.
  • Rogue data marts can now be integrated back into the fold.
  • Redundant data deployed to allow joins within a single database instance can be eliminated and the joins can be federated. Note that federation is no silver bullet… there may be performance reasons for co-locating data… but you now can consider the trade-offs (I’ll post later on a way to federate and improve performance).
  • Data bases products can be retired without affecting the programs that access them. If you have an old data mart built on a product that you would rather not support or license… you can move the data and re-point the virtual tables without impacting the tools and applications at all.
  • Data can be relocated based on economics and/or for performance reasons… this will be the subject of the next blog in this series… but as a teaser, remember the economics… Hadoop costs $1K/TB (ok… $1K-$4K) hardware included and commercial databases cost much more.

There is one final advantage to this that is strategic and important enough to deserve to not be buried in the previous bullet list… All of us have seen the database product market move in the last 6+ years from a place where the choices were DB2, Oracle, SQL Server, or Teradata… to a market with those products plus Exadata, plus two flavors of SQL Server, plus Netezza, plus Greenplum, plus Vertica… and then plus Impala, plus Hive, plus Tez, plus Spark, plus MongoDB, plus Cassandra, plus plus plus. I think that it is impossible to place database bets today with the confidence that these bets will pay off five years from now… and certainly there are no bets good for ten years. If you are betting on infrastructure to support the Internet of Things the bets are more risky still. In my opinion a federation layer provides critical insulation from this chaos. With federation you can build applications knowing that you can acquire and retire database products and not affect the queries. IMO this insulation is a strategic imperative…

Sorry… I got a little excited… I don’t usually spew foam. Let me try again. IMO you should seriously consider the benefits of federation in both your EDW architecture and in your enterprise data architecture.

Part 3 of this series considers a new extension to the architecture by adding an EDW Annex… you can see it here.

References

A Modern Data Warehouse Architecture: Part 1 – Add a Data Lake

In this series I will present a perspective on how the classic EDW architecture is changing under the influence of new technologies, new requirements, and new economics.

Part 1 will show the first of three architectural changes by introducing a data lake into the picture… in Part 2 we’ll extend the picture by adding a logical EDW layer… and in Part 3 we’ll consider the implications of Hadoop as an EDW Annex.

Figure 1. A Classic EDW

Figure 1 describes a classic EDW architecture with sources feeding a staging area, transformations feeding cleaned and certified data to the EDW, and data consumed by analytic applications. In this picture we assume that data marts are part of the EDW fabric and that it is the responsibility of the applications to know which database to query. In most enterprises there are rogue data marts with ungoverned data and these are an issue… but more on that.

Note that Figure 1 also represents an optional sandbox area where uncertified and un-governed data can be landed This helps avoid paying the cost of data governance upfront… before data has proven it has value. A sandbox provides support for rogue data marts and cubes. Obviously use of uncertified data introduces issues… but many believe, as I do, that the trade-off of agility over governance can be productive under the right circumstances.

Figure 2. An EDW with a Data Lake

Figure 2 represents a step towards a modern EDW architecture with a Hadoop-based data lake replacing the staging area as well as providing support for a sandbox.

A data lake provides all of the same capabilities as the staging area it replaced… it may be a landing zone for untransformed data… but it has several other important characteristics:

  • A data lake can hold raw data forever rather than store it temporarily.
  • A data lake has compute included so it can execute transformations and before a single platform for staging and ETL.
  • A data lake has compute and tools included so it can be used to analyze raw data for trends and anomalies.
  • A data lake can easily store semi-structured and unstructured data.
  • A data lake can store big data.

Of course a staging area based on a RDBMS could do the same… but the economics are completely different. A Hadoop system provides storage and processing for as little as $1K/TB; the cost of an EDW hardware and software ranges from $15K/TB to $50K/TB… 15X to 50X more.

In addition, the data lake provides a cost-effective, extensible platform for building more sandboxes. If, by using Hadoop, you lower the upfront cost of a sandbox to $1K/TB then, when combined with the cost reduction from postponing the development of data quality and governance processes; you may find yourself in a position where you can just say “yes” to requests to add new data. At $1K/TB is may be unnecessary to force the business to build a business case and perform the difficult intellectual challenge of developing an ROI argument for data that has never been available and therefore has an unproven value proposition. Later, once the value is proven, you might move it to a governed state and to a governed platform.

Hadoop as an EDW staging area is not a new concept (see here)… the ETL vendors are supporting Hadoop as an ETL engine already. But a Hadoop staging approach starts to solve one of the nagging problems with the classic architecture: the lack of agility. Just saying “yes” to new data and corralling rogue marts provides a foundation to experiment and evolve while also providing the means to leverage successful experiments across the Enterprise.

There is more required to satisfy sandbox users… on to that in Part 2 – Logical Data Warehousing here.

References:

  • Wikitionary definition of a Data Lake here.
  • Informatica Big Data Edition here.
  • Curt Monash on IBM ETL here.
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