Warehouses: A Mix of Successes and "Abject Failures"

Posted on June 01, 1998

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Warehouses: A Mix of Successes and "Abject Failures"

By Dave Simpson

A recent survey by the Meta Group consulting firm of Stamford, CT, revealed that 30% of data warehouse projects "meet or exceed expectations," 50% "meet expectations to some degree," and 20% are considered "abject failures."

However, of the 20%, almost all projects were restarted due to the critical or strategic nature of the business value they provide, according to Aaron Zornes, Meta`s executive vice president and director of its Application Delivery Strategies service.

Meta predicts that the market for data warehouse software, hardware, and services will continue to grow at a robust 40% through this year--from $2.8 billion in 1996 to $8 billion by year-end. These predictions are based on a survey of more than 2,000 data warehouse project participants.

"The truth about the present rate of data warehouse success lies somewhere between the utopian vision promulgated by data warehouse vendors and the doom-and-gloom scenario put forth in the IT press," says Roger Catron, manager of corporate decision support for Blue Cross & Blue Shield of Georgia.

Also, according to the Meta Group survey:

- Data marts will continue to grow from 51% of all data warehouse architectures to 61% in 1998/1999.

- Operational data stores continue to account for almost 24% of data warehouse projects, while centralized enterprise-wide data warehouses will decline from 43% to 19%.

Details of this survey are due next quarter and will be available at: www.metagroup.com/pubs


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