Advanced analytics have already become common investments among a range of enterprises, small businesses, public sector entities and other organizations around the globe despite being a relatively novel trend. Although business intelligence solutions have been around for decades at this point, modern big data technology has only been available for a handful of years, and has progressed so quickly with respect to affordability and usability that the diversity of adopters has grown rapidly.
Still, many firms continue to struggle to capitalize on the technology, with the vast majority of users not yet seeing any substantive return on investment due to a range of common issues, including a lack of qualified data scientists on staff. However, as the cloud yielded an entirely new behavioral model when it comes to purchasing technologies, big data appears to be moving in this direction as well, with companies increasingly leveraging analytics on an as-a-Service basis.
Big market expansions
International Data Corporation recently released its latest report on the big data technology and services market, calling for a 23.1 percent compound annual growth rate in investments between last year and 2019. Should this prediction come to fruition, global organizations will spend roughly $48.6 billion on analytics and relevant services at the end of the study period, showing that the breadth of users continues to rapidly expand as the years progress.
“The ever-increasing appetite of businesses to embrace emerging big data-related software and infrastructure technologies while keeping the implementation costs low has led to the creation of a rich ecosystem of new and incumbent suppliers,” Ashish Nadkarni , program director for IDC’s Enterprise Servers and Storage unit, explained. “At the same time, the market opportunity is spurring new investments and M&A activity as incumbent suppliers seek to maintain their relevance by developing comprehensive solutions and new go-to-market paths.”
Interestingly, the researchers found that software will still be the fastest-growing segment of the big data marketplace, with a CAGR of 26.2 percent, but infrastructure, networking and other backend demands related to analytics will also expand quickly. This segment is expected to have a CAGR of 21.7 percent during the study period. Other aspects, including security and analytics service delivery, will grow alongside the booming use of specialized infrastructure and big data software.
Path toward ROI
Return on investment is dependent upon a range of factors when it comes to big data, and the average firm will have to take several major steps to position its operations for success in these endeavors. For example, information governance frameworks will need to be adjusted in accordance with the unique demands of advanced analytics, while backend processes such as data preparation and cleaning must be handled by experienced, knowledgeable individuals.
When data scientists with experience in advanced analytics are not present, leveraging a managed big data service provider that can assist in these technical matters will often be the best bet, especially in terms of maximizing ROI over time.