TOTAL DATA ANALYTICS
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1 The Impact of Big Data on Business Intelligence and Analytics Big data and Total Data have the potential to fundamentally change the analytics market. This report outlines the key drivers in the analytics sector, highlighting the vendors and technologies poised to shape a future of increased reliance on offerings that deliver on the promise of analyzing structured, semistructured and unstructured data. KEY FINDINGS The growing emphasis on big data has placed unprecedented attention on the potential of enterprises to gain competitive advantage from their data, helping to drive adoption of BI/analytics beyond the retail, financial services, insurance and telecom sectors. Advanced analytics technologies are no longer the preserve of MBAs and stats geeks as line-ofbusiness managers and others increasingly require this type of analysis to do their jobs. Hadoop, as we know it, is already being superseded by a number of other projects that between them have the potential to reshape the analytics industry. Over $500m has been invested in Hadoop and NoSQL specialists, with the majority going to Hadoop distributors and NoSQL database vendors, although investment in associated analytics application specialists picked up in Vendor offerings will mature so that advanced analytics capabilities such as text analytics, predictive analytics, and integration with data sources such as Hadoop are provided as integrated and fundamental components of a BI platform. The need for companies to track and analyze text-based data sources has increased the relevance of search for more general-purpose analytics, while recent M&A activity illustrates that data management incumbents are now taking search-based analysis of unstructured data seriously. We are seeing more use cases whereby users are looking to respond to new opportunities for real-time analytics on the latest data before it ever gets anywhere near the data warehouse or Hadoop. DECEMBER 2012
2 REPORT SNAPSHOT TITLE Total Data Analytics ANALYSTS RELEASE DATE December 2012 LENGTH Krishna Roy, Analyst BI and Analytics Matthew Aslett, Research Manager Data Management and Analytics 61 pages ABOUT THIS REPORT The growing emphasis on big data has focused unprecedented attention on the potential of enterprises to gain competitive advantage from their data, helping to drive adoption of BI/analytics beyond the retail, financial services, insurance and telecom sectors. In 2011 we introduced the concept of Total Data to reflect the path from the volume, velocity and variety of big data to the all-important endgame of deriving maximum value from that data. Analytics plays a key role in deriving meaningful insight and therefore, real-world business benefits from Total Data. In short, big data and Total Data are changing the face of the analytics market. Advanced analytics technologies are no longer the preserve of MBAs and stats geeks, as line-of-business managers and others increasingly require this type of analysis to do their jobs. This report outlines the key drivers in the analytics sector today and in the coming years, highlighting the technologies and vendors poised to shape a future of increased reliance on offerings that deliver on the promise of analyzing structured, semi-structured and unstructured data.
3 TABLE OF CONTENTS SECTION 1: EXECUTIVE SUMMARY KEY FINDINGS METHODOLOGY SECTION 2: ANALYTICS IN A WORLD OF TOTAL DATA 4 Figure 1: Total Data Analytics Glossary Figure 2: Traditional Analytics Stack (Simplified) Figure 3: Big Data Analytics Stack (Simplified) Figure 4: Total Data Analytics Stack (Simplified) REPORTING: THINK BIG, START SMALL Reporting Renaissance Toward Total Data Reporting Excel Is Here to Stay Reporting Is Not Enough ANALYTICS: TOWARD THE ABILITY TO QUESTION EVERYTHING Defining the Question Toward Total Data Analytics Via a Self-Service Model Vendor Landscape Big Data Is a Route Into Total Data Analysis Ad Hoc Query Is Not Enough ADVANCED ANALYTICS: PREDICTING THE FUTURE Analyzing the Analysis Advanced Analysis in a Big-Data World Challenges Riding the Elephant Into Advanced Analysis The Role of R The Analytic World of the Future SECTION 3: THE FUTURE OF OPERATIONAL INTELLIGENCE Embedded Intelligence Event-Based Analytics NoSQL and NewSQL Analytics
4 3.1.4 Machine-Generated Analytics SEARCH-BASED ANALYTICS The Importance of Sentiment Analysis M&A Activity Search Meets SQL BI Vendors on Board Embedded Search-Based Analytics GRAPH ANALYTICS Graph Use Cases Graph Vendors Graph Meets Relational MAPREDUCE AND BEYOND Hadoop: Commercial and Community Next-Generation Data Processing Next-Generation Hadoop Hadoop as a Service SECTION 4: M&A AND FUNDING IMPLICATIONS 44 Figure 5: Selected Analytics M&A Deals, THE BIG-DATA SECTOR IS GETTING BIGGER THE ELEPHANT S LURE AND ITS DOWNSIDE Figure 6: Selected Analytics Investment Deals, Figure 7: Combined Funding for Hadoop, NoSQL and Hadoop Analytics Vendors 46 Figure 8: Funding for Hadoop, NoSQL and Hadoop Analytics Vendors by Focus BUYING BIG POTENTIAL ACQUIRERS SELLING BIG POTENTIAL TARGETS OUTLOOK SECTION 5: 40 BIG-DATA ANALYTICS VENDORS TO WATCH 51 INDEX OF COMPANIES 62
5 ABOUT 451 RESEARCH 451 Research is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of the company at end-user, service-provider, vendor and investor organizations rely on 451 Research s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication, in whole or in part, in any form without prior written permission is forbidden. The terms of use regarding distribution, both internally and externally, shall be governed by the terms laid out in your Service Agreement with 451 Research and/or its Affiliates. The information contained herein has been obtained from sources believed to be reliable. 451 Research disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although 451 Research may discuss legal issues related to the information technology business, 451 Research does not provide legal advice or services and their research should not be construed or used as such. 451 Research shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
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