MELBOURNE, AUSTRALIA: Almost half of IT departments in enterprises in North America, Europe and Asia-Pacific plan to invest in Big Data analytics in the near future, according to Ovum.
In a new report, the independent technology analyst reveals survey results that show that 44 per cent of enterprises will budget for projects in the next two to five years. Meanwhile, a third said they would forge ahead with implementations next year.
Big Data analytics technology allows enterprises to harness the power of the large data sets they are now gathering from their networks, by extracting their business value, for example information on customer trends. Interestingly, Ovum’s survey found Big Data is not just having an impact on ‘big’ companies, as 38 per cent of respondents maintaining data warehouses in the terabyte range have revenues below $50 million.
Tony Baer, Ovum analyst and author of report, commented: “There is little question that data is exploding, with most of the enterprises we spoke to predicting that in the next year alone the amount of data in their warehouses will grow by at least 10 to 20 per cent. The fact that the majority of enterprises have faith in the power of Big Data analytics to drive business benefits from this data is promising. The number of use cases of early adopters is increasing, with our survey showing that uptake will soon be widespread.
“The need for the technology crosses industry boundaries, with use ranging from classic customer segmentation analyses, to customer churn prevention, managing smart utility grids, public transportation networks, to anti-terrorism initiatives.
“Naturally, enterprises wanting to take the first steps in Big Data analytics shouldn’t analyse data just because it is there. They should look to existing business issues such as maximising customer retention or improving operational efficiency, and determine if expanding and deepening the scope of their analytics will deliver tangible business value.”
Unsurprisingly, Ovum’s survey found that improved operational and strategic decision-making processes and customer services were the most popular business benefits. These areas were cited as the most important by approximately 67, 57 and 49 per cent respectively.
However, according to the report, what is surprising is the finding that improved competitive positioning, business agility and regulatory compliance were ranked as low priorities by enterprises. These business goals were cited by just 30 per cent of respondents.
In terms of the technology platforms that have emerged to satisfy the demand for Big Data analytics, uptake is split. Versions of the more established advanced SQL have been implemented by between two and 10 per cent of the enterprises Ovum spoke to. By contrast, emerging NoSQL platforms have been implemented by fewer than five per cent of all enterprises, reflecting the fact that skills and understanding of the new platforms is scant. Ovum expects that the laws of supply and demand, and introduction of tooling, will increase the supply of talent and lower the skills threshold for implementation of these new data management platforms.
Given the appetite for new data types and analytics, such as social media analysis, and the entry of well-known IT brands into this space, Ovum expects take-up of these new platforms to ramp up significantly within the next two years.