Michael McIntire's Blog
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Michael's musings... observations about what we're doing, how we're doing it, but most likelt, talk about what is preventing us from doing what we want...
Tag >> xldb

Oct 23
2008

New software licensing is needed

Posted by Michael McIntire in xldbgeneralcost

Over the last year I have spent a good amount of time thinking about the cost of analytics, and a few things worry me about our industry and how vendors price in this industry.  In the Data Warehousing and BI industry, we're starting to see pricing models based on data volume or size. I know of one vendor which prices by specint, so - get a bigger system or virtualize your systems - get a big bill.

 The problem with these licensing schemes is that they actually make the cost of doing analytics more expensive over time.  If I am a good technology user, over time I'm driving down the costs per unit of data volume to create and maintain the data flowing into my DW.  In the simple case you could say that the cost to generate data is declining at the inverse rate of Moore's law, particularly for a web business where most of the cost is in hardware.

Back to the point, using Moores Law as the example, the cost of data generation declines per unit of volume at a rate of ~50% every 18 months. 

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