Big data sizzles, but analytics has more meat: IDC

SAN ANTONIO, Texas — Big data may be generating a lot of buzz these days but it’s a mistake for technology and services vendors to concentrate exclusively on the trend, according to a big data and analytics experts.

“Big data is actually just a segment of the whole analytics environment,” said Dan Vesset, program vice-president for big data and analytics at analyst firm IDC. “There is a lot of hype around it…but I think we will soon reach the end of the irrational exuberance over big data.”

Vesset spoke on the business opportunities in analytics and big data Monday before channel partners at Avnet Technology Solution’s IBM Compass 2013 partner conference here. Avnet is a major global IT distributor.
The focus of his presentation was that the whole analytics environment offers providers a wider range of areas to make money from.
Earlier in the conference, Fred Cuen, senior vice-president of Avnet, urged partners to shift their business focus because of slower growth in the server market and because “opportunities abound in software and service” which are experiencing faster growth.
Back in 2001, hardware comprised no less than 81 per cent of Avnet’s IBM business in the Americas, while services made up 12 per cent and software trailed at seven per cent. By 2011, Cuen said this shifted to hardware representing 54 per cent, while services had grown to 23 per cent and software had hit 23 per cent.
Two years from now, Avnet foresees this evolution continuing, with hardware accounting for 47 per cent of its IBM business in the Americas as service and software grow respectively to 27 per cent and 26 per cent.


Indications that big data interest may be peaking, Vesset said, could be seen even through a simple Google Trends search of the phrase big data. From 2004 to the beginning of 2011, big data registered only 20 on the search scale (with 100 representing peak search interest).

Halfway through 2011, interest in big data began rising up to 100 by the beginning of 2013 and remains there now, he said.

IDC estimates as of this month places the global big data market at $8.1 billion. However, the analysts firm foresees business analytics hitting more than $95 billion.

The top three business opportunities for VARs based on market share identified by IDC last year were: query and reporting analysis, at over 30 per cent market share; data warehouse management, at about 29 per cent; and financial performance and strategy management, at around 13 per cent market share.

The three fastest growing business opportunities were in: customer relationship management analytics at 12 per cent growth; content analytics at slightly below 12 per cent; followed closely by data warehouse management.


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The top six industries were big data and analytics opportunities can be found are in: discreet manufacturing; process manufacturing; government; banking; professional services; and communications and media.

IDC also makes the following 10 predictions on analytics and big data:

1. More proof that analytics matter will emerge
2. A growing number of vendors will provide analytic services and content, in addition to technology
3. A shortage of analytics and big data skills will drive a growing number of buyers toward cloud solutions and appliances
4. Relational and non-relational information management technologies will co-exist
5. Projects focused on components of the Internet of Things focused on machine generated data will accelerate
6. Commercial use of artificial intelligence will widen with use across consumer industries, operating within call centers, in retail stores, in cars, etc.
7. Memory-based solutions will become industry standard
8. Users base for predictive analytics solutions will – slowly – begin to expand
9. Embedded (in applications, databases, and devices) analytics functionality adoption will accelerate
10. Adoption of mobile business analytics solutions will accelerate


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Jim Love, Chief Content Officer, IT World Canada

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