Welcome!

SOA & WOA Authors: Liz McMillan, Elizabeth White, Carmen Gonzalez, Allan Leinwand, Pete Pickerill

Related Topics: Big Data Journal, Java, SOA & WOA, Virtualization, Web 2.0, Cloud Expo, Apache

Big Data Journal: Article

Examining the True Cost of Big Data

As you start on your Big Data journey or project, be sure to ask what exactly the business requires

The good news about the Big Data market is that we generally all agree on the definition of Big Data, which has come to be known as data that has volume, velocity and variety where businesses need to collect, store, manage and analyze in order to derive business value or otherwise known as the "4 V's." However, the problem with such a broad definition is that it can mean different things to different people once you start to put some real values next to those V's.

Let's be honest, Volume can be a different thing to different organizations. To some it is anything above 10 terabytes of managed data in their BI environment and to others it is petabyte scale and nothing less. Likewise velocity can be multi-billions of daily records coming into the enterprise from various external and internal networks. When it really comes down to it, each business situation will be quite different not only from a size and speed perspective but also more important from the business use-case or requirement. A large bank's Big Data problem could be very different to that of an online retailer or an airline. If you compare what say a hospital is trying to do collecting and analyzing all the sensor patient data compared to a utilities provider running a smart-grid or a telecommunications operator. True, all could be categorized as machine generated or raw data but the exact type of data might be different not to mention the volume or growth rate. Probably the one unique common denominator across all aforementioned industries is that everyone is keeping the data for longer time-periods. No one is throwing it away - not even the detailed data.

The Many Cost Factors to Consider
Costs will of course vary depending on the individual allocated IT budget but regardless, how the company allocates IT budget dollars to new Big Data initiatives needs consideration. Let's face it, enterprise buyers didn't suddenly come into a bunch of newfound IT assets or line items on their budget and the current world economic situation would certainly not suggest so. More likely existing budgets are being re-allocated and instead of spending more on say existing traditional data warehouses or appliances, monies are being allocated to new projects running on open source projects including Apache Hadoop which promises both low cost, ease of scale not to mention the obvious best approach to managing and analyzing multi-structured data sets. The difficultly then arises how do you integrate or have your Hadoop environment co-exist with the established BI or DW environment that the business has grown to love and rely upon?

Leverage What You Already Have
Let's assume you have a data warehouse or data mart in place today and you already use various ETL or data movement tools and BI dashboard, analytics or reporting tools and you don't want to disrupt business users which could not only impacting performance levels but also training up on a new set of tools. In fact you already likely beholden to strict SLA's around response times for the various business reports and KPI's. However, at the same time the business is demanding access to new data sets in order to glean better insights either directly analyzing this data or co-mingling it with existing customer data. This could take the form of web-logs, click stream data or social media data from various interactive sites the business is now leveraging and tracking. The promise of impacting profit margins and gaining a competitive edge just cannot be avoided.

As we all know, traditional relational or columnar databases can't handle the unstructured data types so IT needs to rollout a different solution to satisfy the business demands. Evaluations can take many forms but typically will start with which Hadoop distribution, which NoSQL or NewSQL database and what query access tools in addition to MapReduce. It is certainly no easy task as there are a large number of technology solutions on the market today that claim to run on or with Hadoop providing MapReduce or SQL-like capabilities which all satisfy the requirement of managing volumes of unstructured data. Some are more mature than others; some proven and not all are low-cost. Open source on the surface looks very low cost but as soon as you require any level of support, which lets face it once it's live and relied upon as a business critical environment, you will need to allocate a line item on your budget. The Big Data line item won't just be one line as it will need to include all components required to properly rollout a Big Data solution to truly satisfy the business demands. Just like any other IT environment the obvious pieces will include: Software licensing and support, hardware, skilled dedicated resources, professional services and training and the dedicated time of business users to provide input on key requirements including specifying types of reports, queries and analysis which will naturally change and evolve over time.

Big Data Costs Can Quickly Creep Up
In terms of the hardware expenditure required to manage the new Big Data set, you may start out with a Hadoop cluster of say 10 nodes and yes that is certainly manageable but if your data velocity is significant, you can quickly reach 100+ nodes and now you will face a number of other expenses including additional headcount and skilled resources to manage the environment proactively in addition to tools for managing the cluster including system management and alerting and potentially add-on software which can vary by business use-case but might cover real-time analytics against streaming data for say fraud detection or detection of unusual patterns. You may also need a business tool to provide a front-end GUI dashboard to track specific KPIs or data visualization tools so business users can quickly understand what is going on. Very quickly the costs become less about the storage and hardware and more around the software that focuses on getting the most value from this newly collected data set.

There is no denying the fact that Big Data presents great new opportunities but reaching the point of a quantifiable ROI in a fast time frame is still a very real challenge. Everyone is talking about Big Data and all the innovative technology approaches to tackling it but it is still difficult to find lots of business success stories within any one-industry sector. It's still fairly immature but the good news is that its moving at a much faster pace than any other IT project today and certainly our data warehouse and BI forefathers have provided lessons learned over the past two decades.

Big Data Is Big Business but It Comes with Strict Requirements
If we want to examine more closely the main areas of expenditure for a Big Data project, it is probably best to look at it through the lens of a specific type of business and use-case. Let's take a large financial institution that has a number of existing traditional data warehouse / BI environments but because the business doesn't want to throw any data away (well let's face it regulations don't allow that for a number of years) and realistically the business wants to retain specific data sets for ongoing trending and analysis. This includes examining questions such as "what constitutes a low-risk client based on spending behavior patterns over a specific time period cross-referenced with customer demographics" which will help the institution better target a particular segment of the market.

Given the IT budget doesn't allow for increased spend that correlates with data growth rates, they need to seriously reduce costs and so decide to go the route of a Hadoop-based environment given its promise for low-cost scale and the fact that it can provide insights into customer patterns by capturing semi- and unstructured data. Front-ending the warehouse with a dedicated Hadoop cluster is the preferred architectural approach but the business users still want access to both the Hadoop environment and the existing traditional data warehouse environment.

Given we are talking about a financial institution, the question of security and availability quickly come to the top of the requirements list. At the same time, if business users want to access that data, SQL query access and using the current BI tool against that new set of data is also a requirement. If you can avoid having to the move large chunks of data on a frequent basis from one to the other, it will not only reduce costs but also latency. In an ideal world, being able to leverage the skill sets you already have and avoiding duplication of work is key.

Below is a quick table outlining the main cost factors to be considered and a set of comments against each of these areas that could reduce costs.

 

Big Data on Hadoop Cost Factors

Key Consideration to drive down cost

 

Storage

Look at databases that provide data compression to yield storage savings (better than GZip or LZO).

 

Hardware (Nodes)

Granular data compression at database level will reduce nodes over time.

 

Data Analytics - Skilled Resources

Examine technology solutions that provide standard SQL or BI tool access in addition to MapReduce (Pig etc.)

 

Cluster management - Skilled Resources

Leverage existing Dev-operations staff if you deploy a SQL-compliant data environment

 

Security

Look for database solutions that provide built-in security permissions and access.

 

Availability / DR

Consider a data management environment that doesn't require additional tools for replication.

 

Training

Consider solutions where you don't need to retrain or hire all new resources. Leverage what you have (standard SQL-skilled DBAs)

Summary: Consider All Factors and Get Business Buy-in Quickly
Big Data is fundamentally a business problem. If you begin with the question of "what is the business trying to achieve by collecting, storing and analyzing this new set of data...", you will start down the right path to realizing business gains. Whether you outsource the initiative or bring in external consultants and vendors to manage the project, the same questions will arise and in order to leverage what you already have which includes both existing IT environments and skills, you will be better able to contain costs.

Furthermore, we all love the promise of new innovative technologies including Hadoop and MapReduce but without leveraging tried and tested standards we have come to love and respect, it doesn't make a whole lot of sense from both a technical or economic sense. As you start on your Big Data journey or project, be sure to ask what exactly the business requires and how can you leverage what you already have today. We all know, getting business user buy-in and success is half the battle to a successful rollout.

More Stories By John Bantleman

John Bantleman, CEO of RainStor, has more than 20 years’ experience in the management of software companies. Prior to overseeing RainStor, he transformed LBMS into a $45 million business prior to its successful NASDAQ flotation in 1997. Today’s LBMS’ technology is now part of CA’s product portfolio. The following year John was instrumental in the launch of Evolve, and drove the company through to a successful IPO on NASDAQ.

Returning to the UK in 2003, John spent 12 months working on the advisory boards of venture capital organizations such as Apax Partners. He joined RainStor Inc. as Chairman in 2004 and became CEO at the start of 2007 and relocated back to the US to head-up worldwide operations in 2009.

Comments (3) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Vikas.Deolaliker 09/21/12 06:49:00 PM EDT

Great article. Another data point, the IT budget is up only 4% in 2013 over 2012, so don't expect everyone to rush into Bigdata.

The fourth "V" is visualization. If you cannot render the analysis in a intuitive way, there is no value in that analysis. In fact, visualization should be the first step in design of a bigdata system - it helps trim down the architectural bloat into something that is within budget and useful.

Elad Israeli 09/19/12 06:07:00 PM EDT

Fascinating post. Still waiting for someone to crack the nut that is Big Data Analytics.

douglaney 08/29/12 03:36:00 PM EDT

Great piece John. Excellent detail. Thought you and your readers might be interested in where the "3Vs" of big data originated--in a Gartner piece I authored over 11 years ago. I recently unearthed a copy so folks to refer to and cite it.

Cheers,
Doug Laney, VP Research, Gartner, @doug_laney

@ThingsExpo Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...