Business Intelligence Goes VirtualBusiness Intelligence Goes Virtual

Business-intelligence software never makes it past the wish list at many companies. Why? Because of the time and commitment it takes to install and get the software working right. It's an even bigger problem at smaller businesses with limited IT resources.

Several tech vendors earlier this year introduced BI appliances; boxes that are pre-configured with business intelligence software and ready to go. But that doesn't get around the annoyance some IT shops have with that approach -- you're stuck with yet another box to fit into the data center.

Now BI appliances are going virtual. Business Objects, the largest pure-play BI vendor, announced this week its first virtual appliance, which it will sell both direct and through VMware's Virtual Appliance Marketplace. A business with a virtualization infrastructure in place can install a pre-configured, pre-optimized version of Business Objects Crystal Decisions, including a ready-to-go database, and the proper security protocols, on any available box in its data center. More of the company's offerings will be available as virtual appliances next year, the company said.

Consider the virtual appliance an alternative, and not a replacement for the BI appliances that come in actual hardware form. IBM and Netezza in March began selling BI appliances loaded with Business Objects software through a partnership with the company, and Cognos introduced its BI appliance in May. And for pure maintenance-free BI, Business Objects also offers its software as a service.

Business Objects is targeting all its appliance offerings at small and midsize businesses, a customer base that's been growing 50% faster than Business Objects enterprise business, said VP Todd Rowe. The sale of BI appliances through IBM and Netezza already has resulted in "significant revenue," he said.

About 600 virtual appliances are sold through VMware's marketplace. Microsoft Exchange Server and SQL Server are among the most popular downloads, as are various flavors of security systems and firewalls.

But Business Objects and a smaller BI vendor, Panorama Software, are the only ones--so far -- to venture into the virtual appliance world (Panorama announced its offering in June). Many Business Objects customers are already running the software on a VMware infrastructure, Rowe said, but the virtual appliance approach requires less IT involvement. He claims a company can be turn on a virtual appliance and have it in operation within several hours.

As Business Objects and other vendors try to help businesses tick away at the cost of BI through virtual appliances and hardware appliances, it's making it possible for more small and midsize companies to invest in business analytics. Yet barriers to entry for smaller companies remain with BI that appliances -- virtual or otherwise -- haven't yet solved, including ease of use, data quality problems, and the cost of good data architects and BI software licenses.