The analytics boom continues
Analytics — predictive, historical, diagnostic, reporting, analysis (and other kinds) — are all the rage in business today, and for good reason. The unprecedented data available on your customers and business operations holds the key to not only strengthening customer loyalty and improving core operations but also to driving unparalleled productivity gains, launching new business models and upending entire industries. Organizations that effectively harness analytics will be able to create significant value and differentiate themselves, while those that stall on the analytics front will find themselves increasingly losing ground and trying futilely to catch up. The chasm between the two will only become more pronounced as technological advances in analytics continue and adoption of analytics reaches critical mass.
Across the board, industry experts are predicting big spending on analytics software and services in the years ahead, and SAP leads the analytics/BI pack.
- As reported in Forbes, according to one leading analyst firm, the global analytics market will be worth $18.3 billion by the end of the 2017, representing an increase of 64% since 2015.
- As reported in InformationWeek, another leading analyst firm predicts that the sales of big data and business analytics applications, tools, and services will increase more than 50%, from nearly $122 billion in 2015 to more than $187 billion in 2019.
- According to IDG Enterprise 2016 Data & Analytics Research, July 5, 2016, improving customer relationships (55%) and making the business more data-focused (53%) are the top two business goals or objectives driving investments in data-driven initiatives today. 78% of enterprises agree that collection and analysis of big data have the potential to change fundamentally the way they do business over the next 1 to 3 years, according to IDG.
A sunny future for cloud analytics
Just a few years ago, on-premise was by far the dominant model for deploying business analytics software. Fast-forward to today, and adoption of cloud analytics is rapidly taking hold.
The obvious reason for the strong growth in cloud analytics is quicker time to value, lower technology, maintenance and administration costs, and elasticity.
Most importantly, cloud analytics fosters pervasive use of analytics by more people throughout your organization, and while the monetary gain of pervasive analytics/BI might be hard to measure, more people making better, faster, data-driven decisions is a vital component of success that none would argue against.
In addition, moving analytics to the cloud satisfies scalability and performance requirements, makes it easier to incorporate new and improved user interfaces, enables faster and more efficient information sharing, eases integration of data from other sources, and dramatically speeds up development cycles for new analytic applications.
Check out what industry pundits are saying about the cloudy future for analytics:
- According to MarketsandMarkets, the cloud analytics market is expected to grow from $7.5 Billion in 2015 to $23.1 Billion in 2020 at a CAGR of 25.1% during the forecast period.
- Technavio’s market research analysts predict the cloud analytics market to grow at a CAGR of approximately 21% until 2020.
- According to a report entitled 'Global Cloud Analytics Market 2015-2019' by ReportsnReports.com, the market is expected to post a CAGR of 26.29% over the next four years.
- According to a report commissioned by SAP, IDC expects that over the next five years, the cloud business analytics portion of the worldwide software market will grow five times faster than similar on-premises solutions.
- As reported by ComputerWeekly, another leading analyst firm expects the majority of new analytics licensing buying to be for cloud deployments by 2020.
Analytics at the edge - the new endgame
As the cloud, mobility and big data analytics collide to spawn a wealth of digital transformation possibilities, IoT represents the cutting edge of innovation, creating new products and services for business today. According to McKinsey, IoT applications could have an $11 trillion impact on the global economy by 2025. In his recent article published in Wired, Daniel Burrus, a leading technology forecaster and innovation expert, postulates that IoT is “far bigger than anyone realizes” and will drive “the most disruption as well as the most opportunity over the next five years.”
To be sure, the combination of data-tracking sensors, cloud-based apps translating this data into actionable intelligence, and machines on the ground responding in real time is a real game changer and will provide a major engine for creating new products and new services.
Along with these advantages, IoT also brings new challenges. The sheer size and speed of data collected from innumerable sensors and devices can strain the sturdiest network infrastructure and cause business-killing delays. While analytics is traditionally performed at a central office, a surge in IoT applications demands that some of that analysis now be performed on the edge — either on the device itself or the gateway. The main benefits of edge analytics are reduction of network bottlenecks, faster response times, and data filtering (so analytics is performed only on actionable data).
As reported in Forbes, a recent analyst report found that by 2018, 40% of IoT data will be stored, processed, analyzed and acted upon at the edge of the network where it is created.
SAP has cloud analytics covered
According to AppsRunTheWorld, in 2015, SAP led the pack with 10% market share and $1.2 billion in analytics and BI product revenues, riding on a 23% jump in license, maintenance and subscription revenues. The analytics and BI applications market is expected to reach $13.7 billion by 2020, compared with $11.6 billion in 2015 at a compound annual growth rate of 3.3%, the firm reports.
SAP Analytics Cloud combines all analytics capabilities — including planning, predictive analytics, reporting and business intelligence (BI) — in a single SaaS solution. Users can take advantage of a modern, intuitive user experience and save time by planning, analyzing, predicting and collaborating in context. As a true SaaS solution, SAP Analytics Cloud offers scalability, accommodating everything from small, nimble departmental deployments to global implementations.
Expert guidance needed to win at cloud and edge analytics
Clearly, SAP’s analytics/BI strategy is designed to help businesses get beyond limited desktop tools and move to a modern, built-for-the-cloud analytics/BI solution that is accessible to (and easily consumed by) all employees throughout the enterprise.
To bring this strategy to fruition requires support from third-party service providers such as NTT DATA with deep expertise in cloud architecture/delivery, extensive application/systems integration capabilities, and a proven track record across the entire spectrum of analytics/BI solutions.
The data required for effective decision making resides in numerous places throughout the enterprise – databases, data warehouses, operational applications, transactional systems, the Internet/Intranet, etc. Realizing the promise of analytics/BI necessitates pulling all of this disparate data together in real time without disrupting business.
For our part, the depth, breadth and flexibility of NTT DATA’s cloud analytics offering enables customers of all sizes and across diverse industries to embark upon or accelerate their cloud analytics journey.
NTT DATA is committed to helping our customers unlock the potential of their data – wherever it resides, and make better, faster, more informed decisions throughout their organization with SAP-based analytics solutions.
In working toward this goal with our customers, we leverage the latest cloud, mobile and data-visualization technologies, along with present and future SAP-based BI and analytics solutions, and increasingly hybrid (on-premise + cloud) delivery models.
When it comes to meeting the analytics needs of our customers, NTT DATA’s overarching goal is three-fold: make analytics more affordable; make analytics more efficient and easier to use; and extend the reach of analytics to more business users throughout the enterprise.
Contact NTT DATA today to learn more about how our expertise and hands-on experience with SAP-powered cloud analytics can help your business win today’s escalating analytics war.
Post Date: 8/24/2017