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Gartner: IT to Spend $232B on Big Data over 5 Years

The sub-segments receiving the biggest Big Data investments are social network analysis and content analytics

A new report from analyst firm Gartner forecasts that IT organizations will spend $232 billion (US) on hardware, software and services related to Big Data through 2016. Some key findings from the report: $5.5 billion in new software sales will be driven directly by demands for new big data functionality in 2012, and will grow at a rate of over 16% annually through 2016.

The sub-segments receiving the biggest Big Data investments are social network analysis and content analytics, with 45% of new spending each year. In the short term, much more will be spent on IT services than on software, by as much as a 20:1 ratio. Gartner forecasts that this ratio will drop as the market matures., Gartner projects a 20x ratio of IT Services to Software in the short term, dropping as this market matures and more expertise is available "Big Data" will soon be the "new normal".

According to Gartner VP Mark Beyer, by 2020 "big data features and functionality will be non-differentiating and routinely expected from traditional enterprise vendors and part of their product offerings". This certainly aligns with what we're seeing with our customers here at Revolution Analytics. Across the board, companies have move from experimenting with Big Data to making significant investments in data architectures — particularly around Hadoop and Big Data appliances. Those companies who have completed (or are at least well along) the process of setting up the data infrastructure are now turning to solutions to analyze the data, to get value from the millions spent capturing and storing it.

Encouragingly, the companies we've been working with are taking a forward-looking attitude to the analytics system, focusing on supporting not just ad-hoc analysis of Big Data, but building data applications that run within the operational environment, providing the results of advanced forecasting, estimation and classification analytics to decision makers on a real-time basis. It's this investment that drives the growth in software that Garner forecasts in their report. Gartner Press Releases: Gartner Says Big Data Will Drive $28 Billion of IT Spending in 2012

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More Stories By David Smith

David Smith is Vice President of Marketing and Community at Revolution Analytics. He has a long history with the R and statistics communities. After graduating with a degree in Statistics from the University of Adelaide, South Australia, he spent four years researching statistical methodology at Lancaster University in the United Kingdom, where he also developed a number of packages for the S-PLUS statistical modeling environment. He continued his association with S-PLUS at Insightful (now TIBCO Spotfire) overseeing the product management of S-PLUS and other statistical and data mining products.<

David smith is the co-author (with Bill Venables) of the popular tutorial manual, An Introduction to R, and one of the originating developers of the ESS: Emacs Speaks Statistics project. Today, he leads marketing for REvolution R, supports R communities worldwide, and is responsible for the Revolutions blog. Prior to joining Revolution Analytics, he served as vice president of product management at Zynchros, Inc. Follow him on twitter at @RevoDavid

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