Wikibon Big Data Capital Markets Day – Big Data NYC 2014

One of the biggest events at Big Data NYC 2014 was the insightful presentation by Jeff Kelly from WikiBon. We provide here the key takeaways.

These days capital markets are heavily interested in Big Data - as the hype is now eventually leading to practical monetary gains, there is lot of interest in evaluating the future potential and identifying the stars of tomorrow. On October 16, 2014, Wikibon released its research on the state of Big Data in the enterprise, the implications for IT heavyweights (Oracle, SAP, Teradata, etc.) and what savvy investors need to consider when placing their bets on the Big Data market.
Jeff Kelly
Jeff Kelly, Principal Analyst, WikiBon shared great insights and summary of how capital markets are reacting to Big Data, in his presentation "Big Data, Big Winners (and Some Losers)". Describing the industry overview, he mentioned that the major companies are under heavy pressure to develop a Big Data strategy. Markets events that have led to this state include Oracle missing earnings and revenue targets, Teradata losing $3 billion in market cap last year and SAP still struggling with HANA.

The Big Data revenue is estimated to almost double from $28.5 billion for 2014 to $50.1 billion for 2017. The "Real" Big Data - Hadoop & NoSQL (Software/Services Only) - market is estimated to grow from $1.4 billion for 2014 to $3.4 billion for 2017. He provided overview of recent success and challenges faced by some of the leaders such as Splunk, Tableau and Qlik. He mentioned that there are 3 Hadoop distributions that matter: Cloudera, MapR and Hortonworks. These 3 are also strong IPO candidates, along with MarkLogic, MongoDB and Datastax.

One of the biggest questions that enterprises are facing today is to decide whether to use a free/open source Hadoop distribution or be a subscription customer of one or more of the commercial Hadoop vendors. Citing Wikibon 2014 survey, he mentioned that out of the respondents, 51% are using open-source Hadoop, 24% are using a free Hadoop distribution from a vendor and 25% are a paying customer of one or more commercial vendors.

With the Big Data ecosystem exploding rapidly, he called the business landscape - "The Wild West". There are 2 big questions for capital markets:
  1. Will anybody make money with open-source? (Will there ever be a billion dollar Big Data company?)
  2. Will Oracle, SAP, Teradata, et al swallow the Big Data startups?

Stage of Big Data Deployments Big Data is still in its early days. Most of the organizations are still evaluating their Big Data projects or deploying pilot projects for testing. Not many companies are yet using Hadoop, rather most of them are still using the conventional tools. Tools and Technologies in Use Practitioners are the biggest winners in Big Data. The future belongs to the companies who will come up with novel business models leveraging Big Data technology to enable disruptive innovation. Such practitioner companies will not be confined to IT industry and would most effectively use Big Data technology vendors to execute their business strategy. A big majority of such companies (72% of survey respondents) are looking out for external guidance. Projects and Professional Services Engagements The practitioners are expecting big returns - they expect a return of $3.5 on every dollar spent; however, today they are getting a return of just 55 cents. This is no surprise given the numerous challenges around data, technology, people, processes, and IT-business alignment. However, the practitioners are upbeat about the future prospects, and with a great attitude, they are all set to create exponentially more value than vendors. Big Data Attitude Lastly, he encouraged companies to assess their “Data IQ” by answering the following questions:
  • How well are you leveraging the Cloud?
  • How well are you personalizing the user experience?
  • How secure, private and trusted are transactions?
  • How effective are you at fostering information sharing?
  • Do you have the Data Science skills to harness collective intelligence?
  • How rapidly can you react to evolving consumer tastes and new value opportunities?

If interested, you can watch the complete presentation video below: