Will the cloud, big data and big data analytics live up to the big hype behind these technology buzzwords?
Yes, according to new research reports that dig into the real value proposition behind all the hoopla associated with the cloud, big data and big data analytics.
A new report from Saugatuck Technology notes that cloud-based business intelligence and analytics will be among the fastest growing cloud-based management options in the next two years, achieving an 84% compound annual growth rate during that period.
The report is based on a survey of 200 enterprise IT and business leaders, and includes input from about 30 vendors.
The report’s authors, led by Saugatuck’s Brian Dooley, note that in the past, BI and analytics have been relegated to a small group of analysts or executives. The cloud will help drive BI to the masses by handling many of the complex moving parts, including “assembling the analytics components, networking and storage; plus data normalization through ETL, management of data sources, and finally, achitecting of an analytic solution by data scientists and analysts,” Dooley adds.
For its part, research firm IDC projects that the business analytics market will grow to more than $50 billion in 2016. The market grew by 14.1% in 2011 and will continue to grow at a 9.8% annual rate, driven by big data, IDC notes in the report.
“Driven by the attention-grabbing headlines for big data, and more than three decades of evolutionary and revolutionary developments in technology and best practices, the business analytics software market has crossed the chasm into the mainstream mass market,” says Dan Vesset, program vice president for IDC’s Business Analytics Solutions unit. “The demand for business analytics solutions is exposing the previously minor issue of the shortage of highly skilled IT and analytics staff.”
However, despite the massive amount of attention that big data and big data analytics is garnering, some CIOs might find big data projects to be tough sells in the current economic conditions, according to Howard Rubin, a consultant who specializes in the economics of information technology.
Many companies either have large-scale projects underway or are dabbling in technology that enables them to sift and analyze through massive amounts of data from multiple sources, according to the article. While the technology appeals to CIOs because it can help companies unearth opportunities for new products and untapped customers, big data has sprung to the fore during a time when CEOs want to spend less on technology.
Rubin asserts that because data storage has become inexpensive, CIOs mistakenly believe that data is also inexpensive. But they must calculate costs to identify wrong and duplicative data, which he notes are the crux of big data costs.
“CIOs have to understand their business well enough to be able to explain how new technology investments will impact the bottom line – because that’s the one metric CEOs really care about,” Rubin notes in the CIO Journal article.
- Subscribe to our blog to stay up to date on the latest insights and trends in big data.
- To hear how organizations that have adopted in-memory computing can analyze larger amounts of data in less time – and much faster – than their competitors, watch our on-demand webcast, “In-Memory Computing: Lifting the Burden of Big Data,” presented by Nathaniel Rowe, Research Analyst, Aberdeen Group and Michael O’Connell, PhD, Sr. Director, Analytics, TIBCO Spotfire.
- Download a copy of the Aberdeen In-Memory Big Data whitepaper here.