| Extending the Linux desktop with business intelligence |
(Mar. 4. 2004)
In the wake of corporate scandals like Enron and Tyco, Sarbanes-Oxley (SOX) legislation aims to ensure the accountability of corporate executive management and directors, primarily in the interest of protecting public companies' external investors. Regulations like SOX are being addressed, not just from the company boardroom, but also by specialized software that helps companies streamline business processes, improve efficiency, and makes complying with with mandates easier.
So shouldn't an organization making a transformation with business intelligence software to gain ROI look at reducing reducing the cost of their software infrastructure with Linux? That is exactly what business intelligence software providers are betting on.
In the past six months Documentum, FileNet, Hyperion, Informatica, along with open source champion IBM have all announced support, or plans to phase in support for Linux this year. Documentum has also embraced the collaborative spirit of open source with the launch of the Portlet Open-Source Trading site, or POST. The project, hosted at SourceForge, aims to help companies learn from industry peers and share best practices for developing standards-based portlets.
Support for Linux among the BI software vendors is proof that Linux is now a mainstream operating system. Answering enterprise demand for additional choices and lower costs, business intelligence software providers -- also called CRM, ECM, and BPM among the acronym soup in the space -- target performance metrics, workflow, content, processesm, and records. Some solutions are industry-specific. These software makers are now touting the benefits of Linux. Teamed with middleware that offers business a standard set of tools or templates to increase productivity and automate processes, the two are a killer combination.
BI software targets vertical markets, fulfilling unique needs based on industry-specific requirements. Healthcare, legal, pharmaceutical, and utility markets are all compelled to meet government regulations. Solutions facilitate compliance with the latest regulatory and legislative requirements.
Its all about compliance
Compliance is one area where solutions are not only being adopted to improve processes, but also meet regulatory requirements. SOX requires management certification of financial reports and specifies substantial penalties for publicly-traded companies who fail to adhere to the law. The deadline for compliance is November 2004, extended from June.
The cost of compliance is steep to companies that are implementing a BI solution. AMR Research estimates Sarbanes-Oxley spending will top $5.5 B in 2004. Total costs alone of first-year compliance with Section 404 of the Sarbanes-Oxley Act could exceed $4.6 million for the largest U.S. Companies each, according to a survey of 321 companies by Financial Executives International (FEI).
Policy management software that complies with HIPAA, the Health Insurance Portability and Accountability Act of 1996, has also gained significant traction. This mandate targets health records -- how data is transmitted electronically, is secured and how its privacy is maintained.
HIPAA has revolutionized the standardization of medical information and is now a regulatory requirement for most hospitals, physicians, pharmacies and labs. HIPPA-compliant software reduces administrative costs associated with the regulation. Failure to meet the requirements carries a stiff fine. Frost & Sullivan in New York estimates that businesses spent $270 million in 2002 to comply with HIPAA.
Linux migration is making a mark on vertical markets. Take for example the headway Linux has made in healthcare sector. The healthcare industry is embracing Linux -- for desktops and thin clients.
Take the case of Capital Cardiology Associates (CCA) in Albany. When upgrading their corporate infrastructure, Dr. Martin Echt, CEO and physician moved his 200-user network to Linux. The Albany NY-based medical practice's migration has improved performance, reduced cost, and increased stability. Capital Cardiology Associates' (CCA) cares for over 40,000 patients, makes 40,000 hospital visits, and performs more than 30,000 diagnostic procedures like open heart surgery in 6 offices and 8 hospitals.
The decision to move met stict requirements to accomodate all levels of users, ensured a secure exchange information, and was easily introduced into a legacy system.
Teaming with Lille Corp, a local system integrator, Capital Cardiology invested more than $400K on a complete system upgrade for improved security for patients' records and easier system management. Lille Corp offers a targeted solution, Escribe . This HIPAA-compliant on-line medical records solution helps dictating physicians save time and reduce the cost of record maintenance. Escribe secures patient records with audit trails and provides data in complance with the requirements of the Centers for Medicare and Medicaid Services (formerly known as HCFA) for billing insurers.
“Patient privacy is the law. We simply cannot afford to be exposed to the security vulnerabilities brought about by Microsoft targeted viruses," explains Jordan Rosen, Founder and CEO of Lille Corp. "Linux, by design, is not vulnerable to the types of attacks that have become a way of life for Windows users. The other part of the equation is reliability. Our users are busy physicians that expect secure access to their medical records 24/7. You simply cannot do that with Windows.”
Rosen is not only a proponent of open source Linux, he has developed programs and tools for business process engineering and workflow management.
Extending the desktop
Value-added extensions incorporated with the Linux desktop is one way that open source is finidng its way into the enterprise. Deploying Lille Corp's eScribe and other specialized offerings in conjunction with popular Linux distributions sets up a scenario that can only benefit corporate enterprises.
Confronted with compliance and business rules, these organizations have little choice but to make hefty IT investments. In the current economy, these same groups also want to make a move that is cost conscious and won't lock them into a single vendor. Shedding excessive licensing fees and ensuring a cost effective migration with open standards make Linux an attractive option.
And Redmond has already started making a move to extend their desktop with targeted solutions. In December, Microsoft announced they will release a Sarbanes-Oxley compliance tool in March 2004. The company said it will be part of their Office Accelerators packages of software components, templates, and sample architectures that let customers and integrators create custom desktop applications. Office Accelerators are provided free to customers that have purchased Software Assurance licenses for the various applications engaged by each accelerator.
Major IT initiatives may be a tough sell in this economy, but many organizations are investing in order to meet government mandates and competitive threats. Sarbanes-Oxley and Health Insurance Portability and Accountability Act are two two examples of market forces driving adoption of new technology. By adopting ready-to-buy solutions, enterprises are gaining a tremendous ROI among key benefits.
Combining that with open source Linux? Well, that just makes one more reason Linux on desktops and thin clients should experience widespread adoption in 2004.
That is good news for business. Adds Rosen, "It makes perfect business sense. Linux is secure, reliable and affordable. BI vendors have years of experience working with Linux and just about every other kind of operating platform. BI products have to communicate with many disparate systems to achieve workflow goals. The commitment to Linux on the part of BI vendors is a smart strategic move. Today they go through hoops to tie systems together. Adopting Linux and the open-source paradigm means they can provide better solutions at a lower cost."
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