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Predictions of Change in 2014 for Big Data, Cloud, Internet of Things and Software Vendors | Sandhill
Editor’s note: In what areas of the software ecosystem will we see the most change in 2014? We asked several SandHill experts for their opinions. Here are their predictions for Big Data and analytics, cloud, the Internet of Things, and the software vendors in those spaces.
Peter AuditorePeter Auditore, Principal Researcher, Asterias Research
In the areas of on-premises ERP suites as well as databases and database management, the disruptive wave of SaaS solutions continues to eat into the installed base of the enterprise software dinosaurs. The biggest losers will be large enterprise software vendors like Oracle and especially SAP.
After failing with nearly every SaaS product SAP has introduced — BYOD, StreamWork, Sales OnDemand and Sourcing on Demand — SAP is reported to be no longer developing BYOD for any other industries, but will embed it in its HANA Cloud Platform. In a futile attempt to avoid totally missing the SaaS market, SAP acquired SuccessFactors, an HR SaaS company that has not shown a profit in nearly 10 years. The SaaS and cloud companies have totally disrupted not only the business model of SAP but will begin to severely erode SAP’s current installed base and revenue in early 2014.
King of the RDBMS (relational database management system) space, Oracle is facing a similar fate as SAP. New high-performance NoSQL database engines are already providing attractive price/performance ratios on inexpensive hardware that eliminate the need for expensive site licensing and maintenance models. Oracle’s open source nightmare will continue on in 2014 as new emerging technology platforms such as Hadoop, high-performance and scalable NoSQL databases and enterprise semantic tools play a seminal role in this modernization. In many organizations today integration is a major issue that will continue with the tsunami of BYOD devices that need access to applications, databases and Big Data. One of Oracle’s biggest issues overall in the enterprise environment is integration and the lack of easy-to-use and reliable database management tools.
Mike HoskinsMike Hoskins, Chief Technology Officer, Actian
I think we’ll see an important evolution in analytics in 2014 as operational analytics — business processes optimized through analytics — become much more pervasive. Modern highly parallelized analytic pipelines can scrutinize massive, diverse datasets to provide insights to users within their day-to-day operational frameworks. These real-time, contextual analytics will allow front-line business users to take advantage of short windows of market opportunity, avoid risks ahead that they would not otherwise have anticipated and deliver meaningful, targeted information to their customers when it’s most relevant. The Big Data center of gravity will shift beyond what I call the “ETL ghetto” to include advanced and real-time analytics. The stunning success and unmatched performance of columnar analytic database technology, including the Actian ParAccel Platform, will accelerate this trend. It’s an exciting shift.
As to the Internet of Things: As we fully enter the Age of Data, as we continue instrumenting the universe, the sheer volume of digital data events being emitted by billions of sensor devices is going to break the back of traditional architectures. It will no longer be feasible to move the data to the compute process; only one Big Data pattern will prevail, and that is moving compute to the data. Wherever the data is born, wherever it lives (increasingly in commodity chips, cores and clusters with compute and data co-located) is where optimal compute will occur.
Amr AwadallahAmr Awadallah, Chief Technology Officer, Cloudera
The Enterprise Data Hub (EDH) will emerge as the dominant core of the data information architecture for enterprises. An EDH is a central data system that can absorb any data type (relational, unstructured, emails, logs, images, videos, sensor data, etc.) and run any type of workload or application on top of that data (transformation, exploration, data science, search, analytics, queries). This enables enterprises to truly leverage their assets to their fullest potential at a fraction of the cost of legacy systems.
Though the enterprise data warehouse (EDW) will not go away because of the rise of EDH, its role will be limited to the most valuable data due to the mismatch between their per-byte cost and the per-byte value of Big Data (there are a lot more bytes, so the value per byte is much lower). It isn’t just about cost though. The EDH is more capable (can store any data type, run any workload) than the EDW and is significantly more scalable.
How will cloud services change in 2014? IaaS and PaaS were mainly being used by small startups, while large enterprises only used them for new projects and front-end applications without a significant data footprint. In 2014 we will see the beginning of heavy back-end data systems/applications moving into the cloud. This will be a significant shift showing that enterprises are now comfortable enough to have their core (their blood) move outside the walls of their corporation. Not all industries will do that; for example, finance and health probably will not make the switch in 2014. But I totally see other industries doing it in 2014 (e.g., retail, telecommunications, CPG, automotive).
As to Big Data, there is no question in my mind that we are now entering the trough of disillusionment. Customers are fed up with the buzz; they want to see what this technology can do, right here, right now. We believe that the EDH will rise to this need. Our product (which is one instance of the EDH) is available right here, right now. It allows enterprises to consolidate all of their data assets in one system that can run multiple different workloads to handle almost any data business need.
I think the Internet of Things movement is very exciting, but we are still at the beginning of that movement. There is still a lot of work that needs to be done in terms of adding all the proper instrumentation (sensor devices) to all the things out there. Also a lot of plumbing work is needed to reliably collect the data from all these devices. That infrastructure shift will take some time, so I don’t expect the Internet of Things to really take off until 2015.
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