Interview James Dixon Pentaho

Here is an interview with James Dixon the founder of Pentaho, self confessed Chief Geek and CTO. Pentaho has been growing very rapidly and it makes open source Business Intelligence solutions- basically the biggest chunk of enterprise software market currently.

Ajay-  How would you describe Pentaho as a BI product for someone who is completely used to traditional BI vendors (read non open source). Do the Oracle lawsuits over Java bother you from a business perspective?

James-

Pentaho has a full suite of BI software:

* ETL: Pentaho Data Integration

* Reporting: Pentaho Reporting for desktop and web-based reporting

* OLAP: Mondrian ROLAP engine, and Analyzer or Jpivot for web-based OLAP client

* Dashboards: CDF and Dashboard Designer

* Predictive Analytics: Weka

* Server: Pentaho BI Server, handles web-access, security, scheduling, sharing, report bursting etc

We have all of the standard BI functionality.

The Oracle/Java issue does not bother me much. There are a lot of software companies dependent on Java. If Oracle abandons Java a lot resources will suddenly focus on OpenJDK. It would be good for OpenJDK and might be the best thing for Java in the long term.

Ajay-  What parts of Pentaho’s technology do you personally like the best as having an advantage over other similar proprietary packages.

Describe the latest Pentaho for Hadoop offering and Hadoop/HIVE ‘s advantage over say Map Reduce and SQL.

James- The coolest thing is that everything is pluggable:

* ETL: New data transformation steps can be added. New orchestration controls (job entries) can be added. New perspectives can be added to the design UI. New data sources and destinations can be added.

* Reporting: New content types and report objects can be added. New data sources can be added.

* BI Server: Every factory, engine, and layer can be extended or swapped out via configuration. BI components can be added. New visualizations can be added.

This means it is very easy for Pentaho, partners, customers, and community member to extend our software to do new things.

In addition every engine and component can be fully embedded into a desktop or web-based application. I made a youtube video about our philosophy: http://www.youtube.com/watch?v=uMyR-In5nKE

Our Hadoop offerings allow ETL developers to work in a familiar graphical design environment, instead of having to code MapReduce jobs in Java or Python.

90% of the Hadoop use cases we hear about are transformation/reporting/analysis of structured/semi-structured data, so an ETL tool is perfect for these situations.

Using Pentaho Data Integration reduces implementation and maintenance costs significantly. The fact that our ETL engine is Java and is embeddable means that we can deploy the engine to the Hadoop data nodes and transform the data within the nodes.

Ajay-  Do you think the combination of recession, outsourcing,cost cutting, and unemployment are a suitable environment for companies to cut technology costs by going out of their usual vendor lists and try open source for a change /test projects.

Jamie- Absolutely. Pentaho grew (downloads, installations, revenue) throughout the recession. We are on target to do 250% of what we did last year, while the established vendors are flat in terms of new license revenue.

Ajay-  How would you compare the user interface of reports using Pentaho versus other reporting software. Please feel free to be as specific.

James- We have all of the everyday, standard reporting features covered.

Over the years the old tools, like Crystal Reports, have become bloated and complicated.

We don’t aim to have 100% of their features, because we’d end us just as complicated.

The 80:20 rule applies here. 80% of the time people only use 20% of their features.

We aim for 80% feature parity, which should cover 95-99% of typical use cases.

Ajay-  Could you describe the Pentaho integration with R as well as your relationship with Weka. Jaspersoft already has a partnership with Revolution Analytics for RevoDeployR (R on a web server)-

Any  R plans for Pentaho as well?

James- The feature set of R and Weka overlap to a small extent – both of them include basic statistical functions. Weka is focused on predictive models and machine learning, whereas R is focused on a full suite of statistical models. The creator and main Weka developer is a Pentaho employee. We have integrated R into our ETL tool. (makes me happy 🙂 )

(probably not a good time to ask if SAS integration is done as well for a big chunk of legacy base SAS/ WPS users)

About-

As “Chief Geek” (CTO) at Pentaho, James Dixon is responsible for Pentaho’s architecture and technology roadmap. James has over 15 years of professional experience in software architecture, development and systems consulting. Prior to Pentaho, James held key technical roles at AppSource Corporation (acquired by Arbor Software which later merged into Hyperion Solutions) and Keyola (acquired by Lawson Software). Earlier in his career, James was a technology consultant working with large and small firms to deliver the benefits of innovative technology in real-world environments.

Jim Goodnight on Open Source- and why he is right -sigh

Logo Open Source Initiative
Image via Wikipedia

Jim Goodnight – grand old man and Godfather of the Cosa Nostra of the BI/Database Analytics software industry said recently on open source in BI (btw R is generally termed in business analytics and NOT business intelligence software so these remarks were more apt to Pentaho and Jaspersoft )

Asked whether open source BI and data integration software from the likes of Jaspersoft, Pentaho and Talend is a growing threat, [Goodnight] said: “We haven’t noticed that a lot. Most of our companies need industrial strength software that has been tested, put through every possible scenario or failure to make sure everything works correctly.”

quotes from Jim Goodnight are courtesy Jason’s  story here:
http://www.cbronline.com/news/sas-ceo-says-cep-open-source-and-cloud-bi-have-limited-appeal

and the Pentaho follow-up reaction is here

http://bi.cbronline.com/news/pentaho-fires-back-across-sas-bows-over-limited-open-source-appeal

 

 

While you can rage and screech- here is the reality in terms of market share-

From Merv Adrian-‘s excellent article on market shares in BI

http://www.enterpriseirregulars.com/22444/decoding-bi-market-share-numbers-%E2%80%93-play-sudoku-with-analysts/

The first, labeled BI Platforms, is drawn fromGartner Market Share Analysis: Business Intelligence, Analytics and Performance Management Software, Worldwide, 2009, published May 2010 , and Gartner Dataquest Market Share: Business Intelligence, Analytics and Performance Management Software, Worldwide, 2009.

and

Advanced Analytics category.

and 

so whats the performance of Talend, Pentaho and Jaspersoft

From http://www.dbms2.com/category/products-and-vendors/talend/

It seems that Talend’s revenue was somewhat shy of $10 million in 2008.

and Talend itself says

http://www.talend.com/press/Talend-Announces-Record-2009-and-Continues-Growth-in-the-New-Year.php

Additional 2009 highlights include:

  • Achieved record revenue, more then doubling from 2008. The fourth quarter of 2009 was Talend’s tenth consecutive quarter of growth.
  • Grew customer base by 140% to over 1,000 customers, up from 420 at the end of 2008. Of these new customers, over 50% are Fortune 1000 companies.
  • Total downloads reached seven million, with over 300,000 users of the open source products.
  • Talend doubled its staff, increasing to 200 global employees. Continuing this trend, Talend has already hired 15 people in 2010 to support its rapid growth.

now for Jaspersoft numbers

http://www.dbms2.com/2008/09/14/jaspersoft-numbers/

Highlights include:

  • Revenue run rate in the double-digit millions.
  • 40% sequential growth most recent quarter. (I didn’t ask whether there was any reason to suspect seasonality.)
  • 130% annual revenue growth run rate.
  • “Not quite” profitable.
  • Several hundred commercial subscribers, at an average of $25K annually per, including >100 in Europe.
  • 9,000 paying customers of some kind.
  • 100,000+ total deployments, “very conservatively,” counting OEMs as one deployment each and not double-counting for OEMs’ customers. (Nick said Business Objects quotes 45,000 deployments by the same standards.)
  • 70% of revenue from the mid-market, defined as $100 million – $1 billion revenue. 30% from bigger enterprises. (Hmm. That begs a couple of questions, such as where OEM revenue comes in, and whether <$100 million enterprises were truly a negligible part of revenue.)

and for Pentaho numbers-

http://www.dbms2.com/2009/01/27/introduction-to-pentaho/

and http://www.monash.com/uploads/Pentaho-January-2009.pdf

suggests there are far far away from the top 5-6 vendors in BI

and a special mention  for postgreSQL– which is a non Profit but is seriously denting Oracle/MySQL

http://www.postgresql.org/about/

Limit Value
Maximum Database Size Unlimited
Maximum Table Size 32 TB
Maximum Row Size 1.6 TB
Maximum Field Size 1 GB
Maximum Rows per Table Unlimited
Maximum Columns per Table 250 – 1600 depending on column types
Maximum Indexes per Table Unlimited

and leading vendor is EnterpriseDB which is again IBM-partnering as well as IBM funded

http://www.sramanamitra.com/2009/05/18/enterprise-db/

and

http://www.enterprisedb.com/company/news_events/press_releases/2010_21.do

suggest it is still in early stages.

————————————————————–

So what do we conclude-

1) There is a complete lack of transparency in open source BI market shares as almost all these companies are privately held and do not disclose revenues.

2) What may be a pure play open source company may actually be a company funded by a big BI vendor (like Revolution Analytics is funded among others by Intel-Microsoft) and EnterpriseDB has IBM as an investor.MySQL and Sun of course are bought by Oracle

The degree of control by proprietary vendors on open source vendors is still not disclosed- whether they are holding a stake for strategic reasons or otherwise.

3) None of the Open Source Vendors are even close to a 1 Billion dollar revenue number.

Jim Goodnight is pointing out market reality when he says he has not seen much impact (in terms of market share). As for the rest of his remarks, well he’s got a job to do as CEO and thats talk up his company and trash the competition- which he as been doing for 3 decades and unlikely to change now unless there is severe market share impact. Unless you expect him to notice companies less than 5% of his size in revenue.

http://www.cbronline.com/news/sas-ceo-says-cep-open-source-and-cloud-bi-have-limited-appeal

http://bi.cbronline.com/news/pentaho-fires-back-across-sas-bows-over-limited-open-source-appeal

 

Getting Inside R

Forums and Minerals, the new Internet tools
Image via Wikipedia

I loved the new upgraded design of Inside-R, Revo’s new(?) community.

And promptly shot up a blog application.

What makes Inside- R- slightly better than SDC, Analyticbridge,PlanetR and R _bloggers (with due respects)

  1. Open Id logins (I think thats a new and good step)
  2. Options for automated feed parsing for blogs
  3. More than just a blog aggregator- includes sections on other stuff- thus more like a community than a big feed
  4. Abbreviated feeds- just gives you two-three lines of summary per post  than the whole big schmakaround -thats a time saver for me —(D Smith is the only -lonely blogger atm there)
  5. The more the merrier- One more place to read and write R.


btw is the name insider (as in guy who knows inside stuff) or Inside- R (as in get inside the R box)- just kidding. With PlyR, ManipulatR, ApplyR and now Inside R- the pun gets MerrieR

If my blog app gets rejected- these views may change ,grr


Using Code Snippets in Revolution R

So I am still testing Revo R on the 64 bit AMI i created on the weekend and I really like the code snippets feature in Revolution R.

Code Snippets work in a fairly simply way.

Right click– Click on Insert Code Snippet.

You can get a drop down of tasks to do- (like Analysis) Selecting Analysis we get another list of tasks (like Clustering).

Once you click on Clustering you get various options. Like clicking clara will auto insert the code

Now even if you are averse to using a GUI /or GUI creators don’t have your particular analysis you can basically type in code at an extremely fast pace.

It is useful to people who do not have to type in the entire code, but it is a boon to beginners as the parameters in function inserted by code snippet are automatically selected in multiple colors.

Also separately if are typing code for a function and hover, the various parameters for that particular function are shown.

Quite possibly the fastest way to write R code- and it is un matched by other code editors I am testing including Vim,Notepad++,Eclipse R etc.

The RPE (R Productivity Environment for windows- horrible bureaucratic name is the only flaw here) thus helps as it is quite thoughtfully designed. Interestingly they even have a record macro feature – which I am quite unsure of , but looks like automating some tasks. That’s next 🙂

See screenshot –

It would be quite nice to see the new Revo R GUI if it becomes available if it is equally intuitively designed considering it now has the founders of SPSS and one founder of R* as it’s members-it should be a keenly anticipated product. again Revolution could also try creating a Paid Amazon AMI and try renting the software by the hour at least as technology demonstrator as the big analytics world seems unaware of the work they have been up to.

without getting much noise on how much the other founder of R loves Revo 😉 )

New Deal in Statistical Training

The United States Government is planning a new initiative at providing employable skills to people, to cope with unemployment.
One skill perpetually in shortage is analytics training along with skills in statistics.

It is time that corporates like IBM SPSS, SAS Institute and Revolution Analytics as well as offshore companies in India or Asia can ramp up their on demand trainings, certification as well as academic partnership bundles. Indeed offshroing companies can earn revenue as well as goodwill if they help in with trainers available via video- conferencing. The new Deal initiative would require creative thinking as well as direct top management support to focus their best internal brains at developing this new revenue stream. Again the company that trains the most users (be it Revolution for R, IBM for SPSS-Cognos, SAS Institute for Base SAS-JMP, WPS for SAS language) is going to get a bigger chunk of new users and analysts.

Analytics skills are hot. There is big new demand for hot new skills by millions of unemployed Americans and Asians. How do you think this services market will play out?

If the US government could pump 800 Billion for bailouts, how much is your opinion it should spend on training programs to help citizens compete globally?

From http://www.nytimes.com/2010/10/03/business/economy/03skills.html?hpw

The national program is a response to frustrations from both workers and employers who complain that public retraining programs frequently do not provide students with employable skills. This new initiative is intended to help better align community college curriculums with the demands of local companies.

SAS recognizes the market –

see http://www.sas.com/news/preleases/aba-tech-engage.html

In tough economic times, it is more important than ever that companies be able to make better decisions using analytics. SAS is involved in two programs this summer that offer MBAs and unemployed technology workers the opportunity to learn and enhance analytics skills, and increase their marketability.

SAS is a partner in TechEngage, a week-long program of training classes that offer unemployed technology professionals new skills at a low cost to help them compete effectively in the marketplace.”

So does IBM-

http://www-03.ibm.com/press/us/en/pressrelease/28994.wss

. “Fordham has a long history of collaboration with IBM that has brought innovative new skills to our curriculum to prepare students for future jobs. With this effort, Fordham is preparing students with marketable skills for a coming wave of jobs in healthcare, sustainability, and social services where analytics can be applied to everyday challenges.”

and R

Well TIBCO and Revolution ….hmmm…mmmm

I am not sure there is even a R Analytics Certification program at the least.

Red Hat worth 7.8 Billion now

I was searching for a Linux install of Revolution’s latest enterprise version, but it seems version 4 will be available on Red Hat Enterprise Linux only by Decemebr 2010. Also even though Revolution once opted for co branding with Canonical’s Karmic Koala, they seem to have ignored Ubuntu from the Enterprise version of Revolution R.

http://www.revolutionanalytics.com/why-revolution-r/which-r-is-right-for-me.php

Base R Revolution R Community Revolution R Enterprise
Buy Now
Target Use Open Source Product Evaluation & Simple Prototyping Business, Research & Academics
Software
100% Compatible with R language X X X
Certified for Stability X X
Command-Line Programming X X X
Getting Started Guide X X
Performance & Scalability
Analyze larger data sets with 64-bit RAM X X
Optimized for Multi-processor workstations X X
Multi-threaded Math libraries X X
Parallel Programming (Single Workstation) X X
Out-of-the-Box Cluster-Ready X
“Big Data” Analysis
Terabyte-Class File Structures X
Specialized “Big Data” Algorithms X
Integrated Web Services
Scalable Web Services Platform X*
User Interface
Visual IDE X
Comprehensive Data Analysis GUI X*
Technical Support
Discussion Forums X X X
Online Support Mailing List Forum X
Email Support X
Phone Support X
Support for Base & Recommended R Packages X X X
Authorized Training & Consulting X
Platforms
Single User X X X
Multi-User Server X X
32-bit Windows X X X
64-bit Windows X X
Mac OS X X X
Ubuntu Linux X X
Red Hat Enterprise Linux X
Cloud-Ready X

and though the page on RED HAT’s Partner page for Revolution seems old/not so updated

https://www.redhat.com/wapps/partnerlocator/web/home.html;#productId=188

, I was still curious to see what the buzz about Red Hat is all about.

And one of the answers is Red Hat is now a 7.8 Billion Dollar Company.

http://www.redhat.com/about/news/prarchive/2010/Q2_2011.html

Red Hat Reports Second Quarter Results

  • Revenue of $220 million, up 20% from the prior year
  • GAAP operating income up 24%, non-GAAP operating income up 25% from the prior year
  • Deferred revenue of $650 million, up 12% from the prior year

RALEIGH, NC – Sept 22, 2010 – Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced financial results for its fiscal year 2011 second quarter ended August 31, 2010.

Total revenue for the quarter was $219.8 million, an increase of 20% from the year ago quarter. Subscription revenue for the quarter was $186.2 million, up 19% year-over-year.

and the stock goes zoom 48 % up for the year

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1285505944359&chddm=98141&chls=IntervalBasedLine&cmpto=INDEXDJX:.DJI;NASDAQ:ORCL;NASDAQ:MSFT;NYSE:IBM&cmptdms=0;0;0;0&q=NYSE:RHT&ntsp=0

(Note to Google- please put the URL shortener on Google Finance as well)

The software is also reasonably priced starting from 80$ onwards.

https://www.redhat.com/apps/store/desktop/

Basic Subscription

Web support, 2 business day response, unlimited incidents
1 Year
$80
Multi-OS with Basic SubscriptionWeb support, 2 business day response, unlimited incidents
1 Year
$120
Workstation with Basic Subscription
Web support, 2 business day response, unlimited incidents
1 Year
$179
Workstation and Multi-OS with Basic Subscription
Web support, 2 business day response, unlimited incidents
1 Year
$219
Workstation with Standard Subscription
Business Hours phone support, web support, unlimited incidents
1 Year
$299
Workstation and Multi-OS with Standard Subscription
Business Hours phone support, web support, unlimited incidents
1 Year
$339
——————————————————————————————
That should be a good enough case for open source as a business model.