Welcome!

SOA & WOA Authors: Carmen Gonzalez, Liz McMillan, Sematext Blog, ITinvolve Blog, John Savageau

Related Topics: Cloud Expo, Java, SOA & WOA, .NET, Web 2.0, Open Web

Cloud Expo: Article

Why Your Analytics Should Be Hosted

It’s become increasingly clear that Big Data is transforming the business landscape

It's become increasingly clear that Big Data, and the tools for manipulating, visualizing and analyzing it, are transforming the business landscape. McKinsey released a report in 2011 that projects 40 percent growth in global data generated per year. This is all well and good, but more and more companies are finding that their toolbox for dealing with all of this data is antiquated and confusing.

Indeed, 58 percent of enterprise decision makers surveyed in March 2012 by DataXu felt they lacked the skills and technology required for marketing analytics. Marketers should be chomping at the bit to fruitfully employ the data they have. Successful marketing requires proper segmentation of the customer base to create more targeted campaigns. Real-time insight into the performance of existing campaigns and a clear grasp of where to redirect efforts can also turn a campaign that would have failed into a success. These are the promises made by the drivers of the current "data movement." The unfortunate reality, however, is that the accumulation of data just adds to the costs of an organization as it struggles to merely store the incoming torrent of data, let alone harness it and allow non-technical individuals to explore and understand it.

Luckily, this isn't the first time that industries have experienced this type of problem. The data movement is just like any other one that starts out as a niche interest to a select few people, eventually growing into a commoditized marketplace that competes on usability and ease of access.

Of all metaphors to pick for this process, the restaurant is an apt one. Cooking is something everyone can do. Mix up some batter, put it on a hot skillet, and you'll get pancakes. Add some eggs and a glass of orange juice and you've either got your brain on drugs or a complete breakfast. You can also go to your local IHOP and order the same thing. If you make it yourself, you know everything that's in it and can control the various aspects of the meal. But you also have to deal with acquiring the ingredients, having the facilities to cook, and doing the cleanup. If you go to a restaurant, all you have to do is show up, tell them what you want, and pay.

Similarly, the analytics space has two types of offerings. You can choose to do it yourself or you can use a hosted service to take care of things for you. As with cooking versus going to a restaurant, there are costs and benefits associated with both, but my biased opinion is that a hosted solution is the best choice for tackling the current influx of data.

Economies of Scale
Restaurants provide the benefits of economies of scale to their patrons, allowing customers to consume and enjoy foods that they normally wouldn't be able to at home. High-quality tuna is rather expensive and generally comes in quantities that no individual person could ever consume before it goes bad. Yet, you can go to a sushi restaurant and get various parts of the fish. This is economies of scale in action. The restaurant can afford to put down a significant sum of money to acquire the whole tuna and resell it in pieces to its patrons.

Hosted analytics presents a similar case. A hosted analytics provider is able to pay more money upfront for hardware than any one of its customers would. The reality of data processing is that there are physical limitations to the amount of data a computer can process given a certain amount of time. This problem can only be overcome with more and better hardware.

Because it serves multiple users, a hosted system is actually incentivized to provision enough machines to answer questions quickly. The compute resources are only required for the duration of a query against the system. The faster a query gets answered, the quicker those resources are freed up to answer someone else's query. Responding to queries fast enough to free up resources for the next query is actually the only way to achieve high levels of concurrency. Because the hosted provider is building their business on the idea that multiple customers will share the same infrastructure, they have to support more than just one query at a time and thus are naturally forced to provide their users with a faster querying experience. Economies of scale work to the users' advantage.

Integration of Diverse Data Streams
Another benefit of hosted analytics systems is that they can provide overnight integration with other data sets, both public and private. Taking this back to the restaurant analogy, restaurants add new items to their menu on a regular basis. If they find a supplier that will give them Alaskan king crab for the same price as a lesser form of crab, patrons will all of a sudden start eating better crab without having even known it was coming. The hosted analytics case is similar in that users can take advantage of new data sets that the provider has integrated.

Consider the following scenario. A marketer might normally have access to customer profile and engagement information through their analytics system. Companies like Amazon Web Services offer up data sets from the human genome, the U.S. Census Bureau, and Wikipedia. If a hosted analytics company integrates a public data set like one of these, they can then expose it to all of their clients. This means that if there are 1,000 customers of the hosted offering and only one of them asks for the integration of the public data set, 999 customers get that same integration overnight. All of the participants reap the benefits of having more data sets available. Through the process of overlaying various data streams, marketers can learn more about their customers and their behavior in order to better target their campaigns. This is just one more benefit hosted offerings provide to ensure that companies can maximally leverage the value of their data.

Useful Analytics
Analytics are only good if they are understandable and actionable, just as restaurants are only good if their food is edible and delicious. There are thousands of ingredients that could be mixed in with fried eggs, but some will taste delicious and some will just result in an inedible concoction. As patrons of many restaurants, we often come to a consensus on what various restaurants do well, personal taste notwithstanding. This knowledge can be employed to eat only the best meals. The same mechanism of collective understanding will play itself out in the hosted analytics space.

Any company that provides hosted analytics to a variety of businesses wants to give its customers only the most useful analytical metrics and functionalities. Marketers may not have the specific training to pinpoint exactly which analysis methods to leverage for maximal effect. That's where the multi-tenant properties of hosted analytics work to your benefit. The hosted analytics provider will be sensitive to which of their tools are providing the most value across their entire customer base. In other words, the individual customers all come together to form a collaborative filter to ensure that the less useful analytics features will be cast aside in favor of those that yield valuable insights. As with the integration of public data sets, this filtering mechanism ensures that benefits cascade throughout the entire system of analytics users. Even for features that do not seem to be immediately relevant to your company's success, as a customer of a hosted provider you can rest assured that once your company turns that corner in its business growth, the hosted provider already knows the kinds of analysis you'll find yourself needing and has the tools available. Newcomers to the platform are thus quickly able to reap the benefits of an analytical toolset that has been vetted by the crowd.

In the past few years, Big Data has exploded in importance. Marketers must learn how to take away useful, actionable insights from the mass of data at their hands in order to create a competitive advantage for their companies. Hosted analytics systems will truly prove themselves to be a staple choice for deciphering the increasing amounts of data that companies have to deal with, just as restaurants are a ubiquitous presence in our current lives.

In closing, we can stretch the restaurant metaphor just a little bit more. In both a restaurant and a home kitchen, there's an able cook who knows how to turn raw ingredients into a delicious meal. Similarly, the future still includes analysts who understand the intricacies of your business. You will, however, achieve much more efficient use of your analyst's time by leveraging the benefits of a hosted analytics provider: improved performance, "free" integration of external data sets, and collaborative vetting of the analytical feature set.

More Stories By Eric Tschetter

Eric Tschetter is the lead architect at Metamarkets, a leader in big data analytics for web-scale companies. Follow Metamarkets on Twitter @Metamarkets and learn more at www.metamarkets.com.

Comments (0)

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.


@ThingsExpo Stories
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.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
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.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
"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.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
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.
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...