According to the latest report by Ovum, the IT spending on big data analytics is set to increase in the coming years. Almost 50% of enterprise IT investment decision makers surveyed plan to spend on big data analytics. The Ovum survey covers IT decision makers from organizations in APAC, North America, and Europe.
Forty four percent of organizations admitted that big data analytics projects will be an important part of their IT budgets in the forthcoming years while almost 15% of them said they intended to implement big data analytics projects immediately, that is, in 2012.
What drives these investments
With skyrocketing data volumes, big data analytics has helped organizations manage this sheer volume of data and extract business value from their networks. A key benefit is the technology’s ability to interpret information on customer trends.
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Interestingly, it is not just the big-wigs flocking towards big data analytics. 38% of respondents sustaining terabyte range data warehouses have revenues of less than $50 million.
According to Ovum, many enterprises foresee the data volume in their warehouses to expand by 10-20% next year. Early adopters’ cases have been more common but the drive towards big data analytics will soon have a widespread impact.
Tony Baer, Ovum analyst and author of report, comments, “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. Enterprises should look to existing business issues such as maximizing customer retention or improving operational efficiency, and determine if expanding and deepening the scope of their analytics will deliver tangible business value.”
Contrary to popular belief, business goals such as improved competitive positioning, business agility and regulatory compliance were not ranked as the key benefits of organizations implementing big data analytics in the Ovum report. Only 30% of respondents felt so, compared to approximately 67, 57 and 49% of respondents who indicated improved operational processes, strategic decision-making processes and better customer services as the biggest business benefits of big data analytics, respectively.
Big data platforms
Skills and understanding of new platforms seems to be inadequate as versions of the more advanced SQL have been found implemented by 2-10% of the survey respondents vis-a-vis the less than 5% of enterprises who implemented the emerging NoSQL (not only SQL) platforms. A corrective measure for this suggested by Ovum is the introduction of tooling, besides the supply-demand laws.
With the trend tipping towards new data types, such as social media analysis and well-known IT brand entrants, the market will be inclined towards new platforms for big data analytics by 2013, concludes Ovum.