Data Virtualization: the advantages that yield a return on investment

 

Denodo has released the findings of a new Forrester Consulting study on the economic impact of Data Virtualization, which found that the solution can provide a 408 percent return on investment and a total economic value of up to $6.8 million over three years.

In a context where companies, particularly after the spread of the pandemic, are increasingly aware of the importance of making data-driven decisions – so much so that Forrester herself has shown how the maturity of companies in the data sector has increased by 12 percent in 2020 compared to the previous year – the ability to better manage the ever-increasing amount of data available becomes critical.

The study, conducted in a multi-step approach, involved four major companies that have chosen Denodo in strategic sectors such as Manufacturing, Financial, Real Estate, and Life Sciences, collecting the testimonies of key decision-makers and focusing on the impact that adopting data virtualization strategies can have over a three-year period, taking into account costs and potential risks.

Aside from a significant return on investment, the researchers discovered more efficient processes that resulted in an 83 percent reduction in time-to-revenue; a 67 percent reduction in the effort required for data preparation; and a 65 percent reduction in delivery time compared to ETL processes, with a 1.2 million dollar savings.

However, there are cost savings for integration tools of $ 300,000 per year, as well as an overall rise in profitability.

Data virtualization enables businesses to access data regardless of where it lives or how it is created, while also delivering a unified picture of data that is faster, cheaper, and uses fewer resources than traditional approaches to data integration.

It also goes a step further, allowing for the development of a Logical Data Fabric, automating various data management processes via the use of Artificial Intelligence and Machine Learning (AI / ML), and providing additional semantic capabilities via data components. collection, data preparation, and data modeling, minimizing complexity for IT and data engineer teams that formerly oversaw ETL procedures.

As a result of the research, the four key benefits of Data Virtualization were underlined. To begin with, flexibility and organizational agility: data virtualization removes various impediments from integration processes since, unlike ETL solutions that copy data, it leaves it in the source systems, regardless of format or origin, and displays it at a single level.

Then there's employee satisfaction: because of real-time data processing and the availability of a single access point, data scientists can focus on constructing logical models, spending far less time not just preparing the data they need, but also finding or working with it.

But it also affects client satisfaction: having leaner and more efficient processes means being able to respond to unforeseen occurrences faster, completing projects in less time, and with higher returns.

Finally, data virtualization improves compliance, security, and governance by making it easier to manage rights and responsibilities inside your business and safeguard data in compliance.