I’ve opened a can of worms!
First read these posts:
- Eric, which if you’ve found me, you’ve probably already read.
- Avinash, which if you’ve already read, you probably found me.
Here’s my take, and let the flames begin:
- Enterprise-class web analytics is SOFTWARE.
Personally, I’m just not the biggest fan of on-demand, SaaS, ASP, or whatever term you want to call it for web analytics. I’ve certainly considered and used a whole bunch of hosted solutions. The limits of a hosted solution quickly became abundantly clear to me in this industry when I needed to “do web analytics” on a real scale that required deep integration, beyond my past of one site, subdomains, or a couple of sites and subdomains.
Maybe those aren’t your needs. A hosted solution may be the right choice for you. That’s great. In fact, maybe if those are your needs and you have an unlimited budget for rollups, extracts, segmentation, filters, that model may be absolutely perfect for you. They all have excellent features. They all were built by smart people and have good support teams. They all help solve real business problems. They are proven to work (usually). I may use them again in the future.
Don’t get me wrong, I appreciate and respect the on-demand, SaaS, ASP model. Big time, mucho respect. Other systems, like CRM (salesforce.com), work very well for companies everywhere, and the model works well for the many wonderful web analytics vendors who have entertained (and frustrated) me and other customers with the hosted model. I find hosted web analytics models just fine and dandy for reporting and analysis, not integration.
Wikipedia is right. Enterprise class software brings together all departments under one tool: from finance, to editorial, to production, to IT, to product development, to product management, to marketing, to sales, to executive leadership, to customers.
- Enterprise class web analytics impacts the entire value chain.
When you have deep integration needs and desire to join yr data mart with the data-warehouse and do real integration beyond simple summary extracts or Excel dumps, you need software that is interoperable, portable, and supports open software standards. You need a system that feeds a real database like Oracle. Then you can extend the goodness of web analytics data across the enterprise and even collect data at the edges of the enterprise to drive your value chain.
When a corporation is dependent on web analytics data across the entire enterprise, you need control that software brings- over the data and over the system. I also want an an open database that doesn’t have contention issues. Somebody at one eMetrics told me “I don’t care about an open database” and “My IT department sucks.” So software isn’t right for you. Fine with me.
- Buy what you need based on your requirements.
What real control do you have over a hosted model? Calling support who will tell you after the report times out, “it’s a feature because we email the report to you in 30 minutes or less (or more).” “But I need it now for a meeting in 10 minutes!” ”Sorry, your query was too big.” Huh? Yeah, right, and so was the subscription cost.
But “we have an SLA (service level agreement) and a T&C (terms and contract).” So you think you have control because you signed a contract?
Who ya gonna call? These guys:

What happens when some executive or engineering team totally and repeatedly ignores you when really need support? Or the system goes crazy and you get no data, just error messages, with promises to fix at some time in the future? It’s like a chapter out of Sartre. Existential dread. While people may have never lost their jobs for buying enterprise class software, I know people have lost their jobs from being forced to use the wrong delivery model.
When $#1+ hits the fan, I’ll try to query the db myself, or I’ll call my wonderful team, and say hey “what’s up?” I’d look at the artifacts of process, like a change management system. Perhaps the DBA’s are doing fun stuff with partitioning. I’ll call them too and ask “what’s up?”. I’ll get the truth. And verum factum, indeed.
Software is also a wonderful enabler for web analytics adoption and support in a business full of process. It makes process even more optimal, and you the web analyst get to define that process. The success (and risk for failure) is shared by everyone, up and down and across. Web analytics is cool. People want to do it. The DBA’s want to use new technology. The server team wants to virtualize. The scripters want to write Perl to generate XML. The analysts want the latest and greatest tool, whether created by Quahogers or Gamers. Give the team what they want so they can be all they can be. So that’s what I’d want to give them through interoperable, portable web analytics software that supports open standards.
Eric brings up a very salient points. Here’s one that I can’t emphasize and agree with enough: PROCESS. P - R - O - C - E - S - S. Live it.
Here’s a high-level process-based framework that works for software and hosted deployments:
- Baseline - The software (or hosted) system up and running, out of the box, maybe with some light customization to feed your data warehouse.
- Granular - Site specific meaningfulness, semantics, and metadata, and things like funnels, conversion points, and success events. Maybe you build new metrics, add filters, and extend the data model.
- Integrated - EAI across financial systems (like Oracle/Peoplesoft), ERP (like MS Great Plains), and CRM (like SAP).
Avinash brings up a very salient point as well, which I can’t emphasize and agree with enough. I quote “in the end people matter, tools don’t.” P-E-O-P-L-E. Believe it.
And Bill Gassman is right too: “a lot of enterprise class organizations don’t have the skills to operate an enterprise class Web analytics program.” S-K-I-L-L-S. Trust it.
Web analytics success comes from people who have skills and who employ process to use and extend tools.