Welcome!

IBM Cloud Authors: Yeshim Deniz, Elizabeth White, Zakia Bouachraoui, Pat Romanski, Liz McMillan

Related Topics: IBM Cloud, Microservices Expo, Artificial Intelligence, @CloudExpo

IBM Cloud: Blog Feed Post

Bad Economics Are Difficult to Shake Off

Back in June it was LucidEra and earlier this week Blink Logic ceased operations

GoodData Session at Cloud Expo

September 24, 2009 - Terry Pratchett once wrote that “Gravity is a habit that is hard to shake off”.

We could make a similar comment about the financials of SaaS BI companies. As much as startups in this field would like to shake off their bad economics, reality always catches up.

We’re seeing one after another SaaS BI startup to go out of business. Back in June it was LucidEra and earlier this week Blink Logic ceased operations.

But anybody who only briefly looked at Blink Logic’s finances (it was a public company) shouldn’t be surprised by this event.

Why do so many of the attempts to marry BI and SaaS fail? The problem is that Saas BI sounds simple … simple enough to take an existing BI asset (integration engine, open source analytical engine, columnar database, dashboarding, even domain expertise & consulting) and just host it! All it takes is VMware or an AWS account, web server and Flash or JavaScript. Some people call this a paradigm shift, I call it window dressing. LucidEra was essentially restarted Broadbase, BlinkLogic was once called DataJungle, PivotLink recently changed their name from SeaTab, Cloud9 Analytics has a secret history as Certive, Success Metrics morphed into Birst. I could go on…

Why do SaaS BI companies have bad economics? It’s an attractive market – one of the last few open spaces in software. BI requires dealing with lots of data, lots of compute power and many users. SaaS + BI seems obvious. But truthfully, it’s such a difficult opportunity that it requires a new approach, yet everybody is taking shortcuts. SaaS BI isn’t just hosted BI just as email is not just better faxing, wikis are not just simplified Microsoft Word. Some time ago I wrote a case study on how my former company, NetBeans, was able to successfully compete against giants like Symantec, Borland or IBM, this case study is very relevant to our SaaS BI discussion.

The SaaS BI paradigm shift needs to be truly transformational in order to be successful – something that will get BI above the 9% adoption flatline it’s been at for years. Not everybody gets this. One of the best analysts in this space Boris Evelson wrote a blog post earlier this week where he focuses on differentiation of SaaS BI startups. His first question is: VC backing. Is the firm backed by a VC with good track record in information management space? But LucidEra was very well funded by leading VCs. The correct question that Boris should have asked is: Are the backers of the company funding innovation? Do they understand that it takes three years to become an overnight success?

At the end of the day, it’s about economics. At Good Data, our economics are simple – cloud computing, multitenancy and adherence to customer development. We’ve spent two years investing in innovation. That is what I tell my investors every day. And that is how we are going to avoid the startup death spiral.

Read the original blog entry...

More Stories By Roman Stanek

Roman Stanek is a technology visionary who has spent the past fifteen years building world-class technology companies. Currently Founder & CEO of Good Data, which provides collaborative analytics on demand, he previously co-founded first NetBeans, now a part of Sun Microsystems and one of the leading Java IDEs, and then and Systinet, now owned by Hewlett-Packard and the leading SOA Governance platform on the market.

IoT & Smart Cities Stories
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
CloudEXPO has been the M&A capital for Cloud companies for more than a decade with memorable acquisition news stories which came out of CloudEXPO expo floor. DevOpsSUMMIT New York faculty member Greg Bledsoe shared his views on IBM's Red Hat acquisition live from NASDAQ floor. Acquisition news was announced during CloudEXPO New York which took place November 12-13, 2019 in New York City.
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
Intel is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world's second largest and second highest valued semiconductor chip maker based on revenue after being overtaken by Samsung, and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactu...
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understa...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
OpsRamp is an enterprise IT operation platform provided by US-based OpsRamp, Inc. It provides SaaS services through support for increasingly complex cloud and hybrid computing environments from system operation to service management. The OpsRamp platform is a SaaS-based, multi-tenant solution that enables enterprise IT organizations and cloud service providers like JBS the flexibility and control they need to manage and monitor today's hybrid, multi-cloud infrastructure, applications, and wor...
Apptio fuels digital business transformation. Technology leaders use Apptio's machine learning to analyze and plan their technology spend so they can invest in products that increase the speed of business and deliver innovation. With Apptio, they translate raw costs, utilization, and billing data into business-centric views that help their organization optimize spending, plan strategically, and drive digital strategy that funds growth of the business. Technology leaders can gather instant recomm...
The Master of Science in Artificial Intelligence (MSAI) provides a comprehensive framework of theory and practice in the emerging field of AI. The program delivers the foundational knowledge needed to explore both key contextual areas and complex technical applications of AI systems. Curriculum incorporates elements of data science, robotics, and machine learning-enabling you to pursue a holistic and interdisciplinary course of study while preparing for a position in AI research, operations, ...
After years of investments and acquisitions, CloudBlue was created with the goal of building the world's only hyperscale digital platform with an increasingly infinite ecosystem and proven go-to-market services. The result? An unmatched platform that helps customers streamline cloud operations, save time and money, and revolutionize their businesses overnight. Today, the platform operates in more than 45 countries and powers more than 200 of the world's largest cloud marketplaces, managing mo...