Big Data to Mean Big Spending by 2018

By

Big data has prompted a lot of consideration and care pretty much since it first showed up, and businesses have wondered how this new technology would fit into everyday operations for quite some time. The answers coming back, meanwhile, are sparking plenty of interest, and along with that interest comes plenty of spending. But it's just how high the spending will get—at least, if a recent study from ABI Research proves correct—that should really stagger the imagination.

According to the ABI Research study, spending on big data at the organization level will clear $31 billion by the end of 2013. That alone likely has some giving a low whistle of respect, but by 2018—just five years from now—the spending will make $31 billion look like a drop in the bucket. By 2018, according to the report, spending will hit $114 billion, making for a compound annual growth rate (CAGR) of 29.6 percent.

Interestingly, about half of the spending on big data, according to ABI Research's senior analyst Aapo Markkanen, comes from salaries paid out in getting people to operate the things that go into big data. The other half is on products and services offered in the big data field. Markkanen calls the spending on salaries “significant overspending,” and notes that “a good share of the money is spent on the associated professional services, which have sprung up to assist firms that are data-rich but skills-poor.”

This bit of knowledge in turn opens up significant opportunities for similar professional services to step in and offer to take the burden of spending off the enterprises' hands in exchange for payment that would equal at least somewhat less than was being spent on salaries. Additionally, it's also opening up new possibilities in terms of big data products and services that make things simpler to help narrow that “skills gap,” as some call it, including improvements in bringing SQL to Hadoop clusters as represented by Cloudera's Impala concept.

Meanwhile, ABI Research's practice director, Dan Shey, also brought in some remarks to explain better what was going on in the field: “Machine learning and its application in advanced analytics is one area that will make both the public and private sectors data-savvier than anything we’ve seen so far. Big players such as IBM and HP are understandably moving to this direction, but at the same time we can also see analytics startups, like Ayasdi and Skytree, that have machine learning in their very DNA. Eventually, such innovations will put analytics within any domain expert’s reach. At that point, data will stop being ‘big’ again.”

Big data is still something of an emerging technology. But with emerging technologies come emerging markets and, likewise, emerging opportunities. That's making for a lot of room in the field for companies particularly on the ball to step in and make some big strides. It's hard to turn down the impact that big data can bring to a business—its predictive capability alone, matched with its ability to analyze trends and distill said analysis into actionable points is the kind of thing that marketing dreams are made of—even with the kind of spending that may be involved. Big data may indeed be hard to pass up, and as development carries on the resulting products and services are likely to only get better for the potential buyers.




Edited by Alisen Downey

Contributing TechZone360 Writer

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More