Business Analytics 3.0, Aug 13, 2011
"By 2014, 30% of analytic applications will use proactive, predictive and forecasting capabilities" Gartner Forecast, 2011
... The "analytics-as-a-service" operating model that corporations are thinking about is already being facilitated by Amazon, Opera Solutions, eBay and others. They are anticipating the value migrating from traditional outmoded BI to Analytics-as-a-service model. We believe that Amazon's analytics-as-a-service model provides a directional and aspirational target for IT organizations who want to build an on-premise equivalent. ...
Amazon Analytics-as-a-Service in the Cloud
... Amazon is aiming at firms that deal with lots and lots of data and need elastic/flexible infrastructure. This can be domain areas like Gene Sequencing, Clickstream analysis, Sensors, Instrumentation, Logs, Cyber-Security, Fraud, Geolocation, Oil Exploration modeling, HR/workforce analytics and others. The challenge is to harness data and derive insights without spending years building complex infrastructure.
Amazon is betting that traditional enterprise "hard-coded" BI infrastructure will be unable to handle the data volume growth, data structure flexibility and data dimensionality issues. Also even if the IT organization wants to evolve from the status quo they are hamstrung with resource constraints, talent shortage and tight budgets. Predicting infrastructure needs for emerging (and yet-to-be-defined) analytics scenarios is not trivial.
Analytics-as-a-service that supports dynamic requirements requires some serious heavy lifting and complex infrastructure. Enter the AWS cloud. The cloud offers some interesting value 1) on demand; 2) pay-as-you-go; 3) elastic; 4) programmable; 5) abstraction; and in many cases 6) better security.