Data silos within an organization prevent businesses from having a holistic view of the company-wide data and making relevant decisions for enabling business growth and improving efficiency. A mature solution that helps overcome this challenge is data virtualization, the market for which is projected to grow at a CAGR of 5.1% from USD 4619.5 million in 2020 to USD 4874.4 million by 2026.
Some of the growth drivers include:
● Increasing Business Complexity: Businesses today are grappling with distributed data sources due to an ever-evolving business environment, acquisitions, and accelerated growth. Data virtualization enables merging them for running analytics.
● Growing Need for Analytics: Data virtualization solutions can improve analytics effectiveness while reducing analytics costs by leveraging Logical Data Warehouse (LDW) that enables data federation, creation of virtual databases, and decentralized data warehouses.
● AI Algorithms: Modern machine and deep learning algorithms need large volumes of data for training and to identify outliers. Data virtualization enables this access quickly.
● Increasing Data Volumes: Smart and interconnected systems, the world wide web, and social media have increased access to data. A physical data warehouse can neither cope with volume nor the velocity of the data being generated. Data virtualization is a viable alternative that allows access to remote data storage units for further processing.
Data integration solution providers offer mature data virtualization tools to implement flexible LDW architectures instead of being stuck with rigid and costly enterprise data warehouse architectures. An LDW architecture facilitates data virtualization by federating data from different silos such as data marts and integrating them as a shared services layer. This single integrated data model then can be accessed by the different business users.
According to Gartner, the supporting infrastructure, storage, and administration of databases needed by each data mart is a significant cost and is redundant. Data virtualization can integrate these marts to application-neutral virtual views. It can also help to integrate new sources of data including NoSQL, Hadoop, the Internet of Things (IoT), and the cloud without the data having to be physically moved into repositories. This accelerates the access to the integrated views of data, speeds up analysis, and results in significant cost savings.
Denodo Data Virtualization–The Financial Benefit
Gartner predicts that businesses using traditional technologies for data integration will spend 40% more than those using data virtualization. Users of data virtualization solutions such as Denodo will experience an improvement of up to 90% in time-to-deliver within their data provisioning processes and save 50% or more.
Forrester conducted four customer interviews and data aggregation to arrive at the conclusion that customers of Denodo can experience a three-year benefit of $6.8M, 408% ROI, and payback in 6 months. Some of the other benefits they experienced include:
● 83% improvement in business user productivity
● 67% decrease in development resources
● 65% faster access to data over ETL processes
Traditional approaches such as ETL, data marts, data warehouses, big data, and most recently cloud data lakes cannot deliver the agility and accessibility required by the digital businesses of today. This lacuna is being filled by data virtualization that helps to deliver relevant data to business users using a data integration layer. It can deliver live data from across multiple data sources and facilitate applying a variety of analytics and applications. The IT teams can focus on the provisioning and management of the data.
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Data Virtualization Features
Businesses today need data in nearreal-time access. Meanwhile, there is also an evolution in data persistence, with several options available including, on-premise data warehouses, relational databases, NoSQL (not only SQL) databases, and in-memory data stores. Often, businesses face the challenge of:
• Not understanding their data sources.
• Lag in data movement.
• Lead time needed for in designing and developing data integration patterns
• Ensuring infrastructure availability
Data Virtualization helps to overcome this by providing simple data access as a secure data discovery and search system. Some of its features include:
Data Abstraction: The complexities of accessing data are hidden from the underlying data systems, their structures and formats
Zero Replication: Unlike ETL, data virtualization transformes and aggregates data on-the-go and does not a separate repository to “collect” the data for transformation.
Data Delivery in Real Time: Business users can access up-to-the-minute data within their applications as data virtualization links to underlying data sources in real-time.
Benefits of Data Virtualization
In addition to the financial and operational benefits, some of the other advantages of data virtualization include:
Next-Gen Infrastructure: Architects can leverage data virtualization’s abstracting of underlying systems to migrate from legacy systems to modern cloud applications without disruptions to business.
Data Protection: Data in critical source systems can be protected and any inadvertent change to data prevented through appropriate security settings.
Efficient Data Delivery: The zero replication approach of data virtualization empowers users with the latest data without needing additional storage.
Increasing Productivity: Real time access to data improves the quality of insights gained by the business user and the decision making is based on hard data rather than gut feeling.
Reduced Development Resources: Businesses can reduce their development resources by a quarter using data virtualization’s simple, view-based approach.
Improved Data Governance and Security: Using a single, virtual data fabric, architects can implement centralized data governance and security more effectively.
Indium–A Denodo Partner
Indium Software, a Denodo partner, has deep expertise in Denodo platform implementation. We can help leverage the data virtualization technology to help you achieve your business goals quickly and effectively