CDI Institute: Next Gen CDI
Aaron Zornes recently published an excellent article on the current state of the art in CDI in this month's DM Review, entitled "Customer Data Integration: Where is the Next Generation of Master Data Management Headed?". He presents some compelling statistics on the growth of the marketplace for CDI applications, and talks about the functional and strategic differences that are emerging in the product lines.
Aaron is founder and chief research officer for The CDI Institute with headquarters in San Francisco. Prior to The CDI Institute, Zornes founded and ran META Group's largest research practice for 14 years. He has been writing and compiling seminal research and data on the emerging CDI marketplace for the past year.
He offers some interesting and useful data points on the cost of CDI projects:
Zornes provides a useful framework for thinking about the evolution of CDI products in the marketplace, characterizing them as:
1st Generation - database or enterprise application
2nd Generation - specialized master file systems
3rd Generation - batch and real-time capable, with support
for web services and federation
4th Generation - SOA with support for unstructured data
Overall, Zornes paints a picture of a rapidly growing market for CDI products, and an increasingly competitive one as vendors' offerings mature and converge in terms of architecture and functionality. This bodes well for the companies looking to undertake CDI projects in 2005 and 2006. Excellent reading, very informative!
Aaron is founder and chief research officer for The CDI Institute with headquarters in San Francisco. Prior to The CDI Institute, Zornes founded and ran META Group's largest research practice for 14 years. He has been writing and compiling seminal research and data on the emerging CDI marketplace for the past year.
He offers some interesting and useful data points on the cost of CDI projects:
During 2005, the average CDI software investment was $1.2 million with the typical large scale CDI project requiring systems integration (SI) fees ranging four to six times the amount spent on the CDI software.Zornes also points out that while for most of the past ten years, the predominant competition for CDI solutions was homegrown point-to-point integration systems (build vs. buy), the products have matured.
It is now a realizable goal for IT organizations to buy rather than build such infrastructure, with more than 95 percent of financial services and life sciences enterprises actively looking to replace homegrown CDI solutions.
Zornes provides a useful framework for thinking about the evolution of CDI products in the marketplace, characterizing them as:
1st Generation - database or enterprise application
2nd Generation - specialized master file systems
3rd Generation - batch and real-time capable, with support
for web services and federation
4th Generation - SOA with support for unstructured data
Overall, Zornes paints a picture of a rapidly growing market for CDI products, and an increasingly competitive one as vendors' offerings mature and converge in terms of architecture and functionality. This bodes well for the companies looking to undertake CDI projects in 2005 and 2006. Excellent reading, very informative!
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