Dell Boomi Brings Master Data Management To Midmarket
Dell wants to simplify data management, data integration and assurance of data quality – at a fraction of the traditional big-vendor cost – with the Boomi Master Data Management (MDM) offering. Targeted primarily at mid-sized companies, the 100% cloud-based offering with multi-domain support, near real-time synchronization, bi-directional data flow and web service calls that support enriching and validating data, provides an affordable, accessible and easy-to-use solution, said Chris McNabb, director of product management, Dell Boomi.
According to Gartner, MDM is a technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, stewardship, semantic consistency and accountability of the enterprise’s official, shared master data assets. Master data is the consistent and uniform set of identifiers and extended attributes that describes the core entities of the enterprise, such as customers, prospects, citizens, suppliers, sites, hierarchies and chart of accounts.
This is a natural product adjacency or extension for Boomi, said McNabb. We were able to combine the benefits of cloud along with community into an affordable solution we believe will disrupt the underserved midmarket, he said. Dell has been using the product internally for at least six months, and doing betas and upgrades since the Fall.
AtomSphere, Boomi’s cloud integration platform, integrates any combination of cloud, SaaS or on-premise applications with no coding, appliances or software to install or maintain. Last month the company, a part of Dell’s Software group, announced it has exceeded one million cloud integrations per day, an increase of more than 263% since last year.
Dell announced it was working on a cloud-based MDM platform at the end of 2011, and unveiled its first offering last year. As per its usual approach, the company designed the product to be affordable to the midmarket, (tens of thousands of dollars), versus the enterprise MDM pricing (millions of dollars).
Acquired by Dell in 2010 for an estimated $60 million, Boomi currently generates an estimated $20-25 million in annual revenue, according to 451 Research analyst Carl Lehmann in a recent blog. ‘Boomi is a thought leader and offers a comprehensive and highly reliable hybrid cloud-integration platform with intuitive tooling and support features.’
Moving into the MDM market will mean competing with the likes of SAP, Oracle and IBM, which currently account for almost half of MDM revenues, according to Gartner’s Magic Quadrant for Master Data Management of Product Data Solutions. However Gartner said the middle part of this market is made up of Tibco and Stibo, while smaller vendors include hybris, Enterworks, Heiler, Agility Multichannel, Riversand, Informatica and Orchestra Networks.
Gartner estimates that total software revenue for MDM solutions was $1.5 billion ($455 million product data solutions) in 2011, an increase of 15% from 2010. In “Forecast: Master Data Management, Worldwide, 2010-2015” we projected five-year compound annual growth rates (CAGRs) of nearly 20% for the overall MDM market and 9% for the MDM of product data software market through 2015. We estimate that SAP is the largest vendor in the MDM of product data solutions market (based on sales of SAP NetWeaver MDM and SAP MDG-M), with estimated total software revenue of $75 million. Oracle is in second place (based on sales of Oracle PDH), with estimated revenue of $73 million. IBM is in third place (based on sales of IBM InfoSphere MDM, Collaborative and Advanced Editions) with estimated total software revenue of $62 million.
Long term, Gartner said the trend is clear. Over time, end users are looking to meet complex requirements with best-of-breed capabilities, but are beginning to trade this off against “good enough” capabilities for solutions that can master multiple domains, even considering multiple MDM solutions. Good enough has been one of Dell’s core philosophies, along with simplicity and affordability, so this appears to be a good time for it to enter this market.
Dell said its MDM goes a long way towards the realization of next-generation MDM as defined by The Data Warehouse Institute (TDWI) Best Practices Research. TDWI’s Philip Russom, research director for data management, said in a prepared statement that MDM tools based on software as a service (SaaS) and/or clouds are still relatively new. “Even so, there is a growing demand for and trust in cloud-based MDM tools and solutions… (so) we can expect cloud-based MDM solutions to be in use by more organizations soon.”
While engineered for enterprises, Boomi MDM is targeted initially at the midmarket, said McNabb. “Boomi got its start with midsize customers, and then large enterprises started to come; recently F100 started to come.” Another reason to start with the midmarket is they accept cloud much more readily than enterprises, he added.
Dell Boomi MDM is focused on four core steps:
-define – rapidly model master data entities through a visual experience with no coding necessary; use Dell Boomi Suggest, for crowd-sourced data models that dynamically improve as the contributor community grows;
-deploy – deploy models into the MDM repository and identify which source systems will interact with them;
-synchronize – leverage Dell Boomi AtomSphere to orchestrate data synchronization and design process flows that ensure data quality; and,
-govern – govern data as it flows into the MDM system to resolve duplicates, fix data entry issues as well as identify and correct erroneous data.