|By Karl Van den Bergh||
|January 11, 2014 12:00 PM EST||
Slide Deck from Karl Van den Bergh's Cloud Expo Presentation: The Intelligence Inside: How Developers of Cloud Apps Will Change the World of Analytics
We live in a world that requires us to compete on our differential use of time and information, yet only a fraction of information workers today have access to the analytical capabilities they need to make better decisions. Now, with the advent of a new generation of embedded business intelligence (BI) platforms, cloud developers are disrupting the world of analytics. They are using these new BI platforms to inject more intelligence into the applications business people use every day. As a result, data-driven decision-making is finally on track to become the rule, not the exception.
The Increased Focus on Analytics
With the emphasis on data-driven decision-making, it is perhaps not a surprise that the focus on analytics continues to mount. According to IDC's Dan Vesset, 2013 was poised to be the first year that the market for data-driven decision making enabled by business analytics broke through the $100 billion mark. IT executives are also doubling-down on analytics, a fact highlighted by Gartner's annual CIO survey which has put analytics as the number one technology priority three times out of the last five years. So, given the importance and spend on analytics, everyone should have access to the insight they need, right?
Most Business People Still Don't Use Analytics
Amazingly, in spite of spending growth and focus, most information workers today do not have access to business intelligence. In fact, Cindi Howson of BI Scorecard has found that end-user adoption of BI seems to have stagnated at about 25%. This stagnation is difficult to reconcile. How is it possible that, at best, one quarter of information workers have access to what is arguably most critical to their success in a world that runs on data?
There are a variety of reasons for stagnant end-user adoption, including the high costs associated with BI projects and an overall lack of usability. However, the biggest impediment to BI adoption has nothing to do with the technology. The reality is that the vast majority of business decision makers do not spend their day working in a BI tool - nor do they want to. Users already have their preferred tool or application: sales representatives use a CRM service; marketers use a campaign management or marketing automation platform; back-office workers will spend a lot of their day in an ERP application; executives will typically work with their preferred productivity suite, and the list goes on. Unless you are a data analyst, you are not going to want to spend much of your day using a BI tool. But, just because business people prefer not to use a BI tool does not mean they don't want access to pertinent data to bolster better decision-making.
The Need for More Intelligence Inside Applications
What's the solution? Simply put, bring the data TO users inside their preferred applications instead of expecting them to go to a separate BI system to find the report, dashboard or visualization that's relevant to the question at hand. If we want to reach the other 75% of business people who don't have access to a standalone BI product, we have to inject intelligence inside the applications and services they use every day. It is only through more intelligent applications that organizations can benefit from broader data-driven decision-making. In fact, according to Gartner, BI will only become pervasive when it essentially becomes "invisible" to business people as part of the applications they use daily. In a 2013 report highlighting key emerging tech trends, Gartner concludes that in order "to make analytics more actionable and pervasively deployed, BI and analytics professionals must make analytics more invisible and transparent to their users." How? The report explains this will happen "through embedded analytic applications at the point of decision or action."
If the solution to pervasive BI is to deliver greater intelligence inside applications, why don't more applications embed analytics? The reality is that only a small fraction of applications built today have embedded intelligence. Sure, they might have a table or a chart but there is no intelligent engine; users typically can't personalize a report or dashboard or self-serve to generate new visualizations on an ad-hoc basis. The culprit here is that business intelligence was originally intended as a standalone activity, not one that was designed to be embeddable. Specifically, the reasons driving developers to ignore BI platforms boil down to cost and complexity.
Cost and Complexity Are Barriers to Embedded BI
Traditionally, BI tools have carried a user-based licensing model. Licenses typically cost from the tens of thousands to millions of dollars. Such high per-user costs might be justified for a relatively small, predictably-sized population that includes a large percentage of power users who will spend a good amount of time working with the BI tool. This user-based model, however, is totally unsuitable for the embedded use case. The embedded use case is geared toward business users who will access the BI features less frequently and likely have less analytics experience than the traditional power user - in this scenario, high per-user costs simply can't be justified.
BI products are complex on a number of different levels. First, they are complex to deploy, often requiring months if not years to roll out to any reasonable number of users. Second, they are complex to use, both for the developers building the reports and dashboards as well as the business people interacting with the tool. Third, they are complex to embed. Designed as standalone products, BI tools are not architected to plug into another application.
Given the cost and complexity of traditional standalone BI offerings, it is no surprise that developers often turn to charting libraries to deliver the visualizations within their application. The cost is low and they are relatively simple for a developer to embed. In the short term, a charting library is a reasonable solution, but over time falls flat. The demands for more charts, dashboards and reports quickly grow, and end users begin looking for the ability to self-serve and create their own visualizations. As a result of these mounting demands, many application developers find themselves essentially building a BI tool, taking them outside their core competency and stealing precious time away from advancing their own application.
Could a New Generation of Embedded BI Provide the Solution?
Utility Pricing Dramatically Reduces Cost
To address the challenge of cost, a new generation of embedded analytics platforms employs a utility-based licensing model where the software is available on a per-core, per-hour or per-gigabyte basis. From a developer's perspective, this is a much fairer model, as one only pays for what is used. At the beginning of the application lifecycle when usage is sporadic, developers can limit their costs. As the application becomes successful and use grows, usage can be easily scaled up. A recent report by Nucleus Research concluded that utility pricing for analytics can save organizations up to 70% of what they would pay for a traditional BI solution. I've written previously about how utility pricing will dramatically increase the availability of analytics, reaching a much broader set of organizations. The rapid adoption of Amazon's Redshift data warehousing service and Jaspersoft's reporting and analytics service on the AWS Marketplace provides rich testimony to the benefits of this model.
Cloud and Web-Standard APIs Reduce Complexity
A cloud-based BI platform significantly simplifies deployment, as there is no BI server to install or configure. The Nucleus Research report found that the utility-priced, Cloud BI solutions could be deployed in weeks or even days as opposed to the months commonly required for a traditional BI product.
The Benefits of Embedded Intelligence
Intuitively, it would seem that, by providing analytics within the applications business people use every day, an organization should experience the benefits of more data-driven decision-making. But is there any proof?
A recent report by the Aberdeen Group, based on data from over 130 organizations, has helped shed light on some of the benefits of embedded analytics. First, as might be expected, those companies using embedded analytics saw 76% of users actively engaged in analytics versus only 11% for those with the lowest embedded BI adoption. As a result, 89% of the business people in these best-in-class companies were satisfied with their access to data versus only 21% in the industry laggards. The bottom line? Companies leading embedded BI adoption saw an average 19% increase in operating profit versus only 9% for the other companies.
Andre Gayle, who helps manage a voicemail service at British Telecom, illustrates the difference embedded analytics can make. "We had reports [before] but they had to be emailed to users, who had to wait for them, then dig through them as needed. It was inefficient and wasteful." Now, thanks to embedded analytics, British Telecom has seen a huge savings in time and cost. As Gayle explains, capacity planning for the voicemail service used to be a "laborious exercise, involving several days of effort to dig up the numbers " but now can be done "on demand, in a fact-based manner, in just a few minutes."
The evidence is mounting that embedding analytics inside the applications business people use every day can lead to quantifiable benefits. However, the protagonist here, unlike in the traditional world of analytics, must be the developer, not the analyst. A new generation of embedded BI platforms is making it easier and more cost effective for developers to deliver the analytical capabilities needed inside the Cloud applications they are building. As developers increasingly avail of these new platforms, we can hope that BI will finally become pervasive as an information service that informs day-to-day operations. As Wayne Eckerson puts it, "In many ways, embedded BI represents the fulfillment of BI's promise." Now it's up to Cloud developers to help us realize that promise.
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption...
May. 27, 2015 03:37 PM EDT
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust...
May. 27, 2015 03:30 PM EDT Reads: 970
The OpenStack cloud operating system includes Trove, a database abstraction layer. Rather than applications connecting directly to a specific type of database, they connect to Trove, which in turn connects to one or more specific databases. One target database is Postgres Plus Cloud Database, which includes its own RESTful API. Trove was originally developed around MySQL, whose interfaces are significantly less complicated than those of the Postgres cloud database. In his session at 16th Cloud...
May. 27, 2015 03:15 PM EDT Reads: 1,898
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
May. 27, 2015 02:00 PM EDT Reads: 5,807
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 27, 2015 02:00 PM EDT Reads: 2,107
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will address the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affec...
May. 27, 2015 01:30 PM EDT Reads: 2,092
Move from reactive to proactive cloud management in a heterogeneous cloud infrastructure. In his session at 16th Cloud Expo, Manoj Khabe, Innovative Solution-Focused Transformation Leader at Vicom Computer Services, Inc., will show how to replace a help desk-centric approach with an ITIL-based service model and service-centric CMDB that’s tightly integrated with an event and incident management platform. Learn how to expand the scope of operations management to service management. He will al...
May. 27, 2015 01:00 PM EDT Reads: 1,960
Working with Big Data is challenging, especially when decision makers depend on market insights and intelligence from your data but don't have quick access to it or find it unusable. In their session at 6th Big Data Expo, Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia; Zel Bianco, President, CEO and Co-Founder of Interactive Edge of Solgenia; and Ermanno Bonifazi, CEO & Founder at Solgenia, discussed how a revolutionary cloud-based BI along with mobile analytics is already c...
May. 27, 2015 01:00 PM EDT Reads: 5,652
The world is at a tipping point where the technology, the device and global adoption are converging to such a point that we will see an explosion of a world where smartphone devices not only allow us to talk to each other, but allow for communication between everything – serving as a central hub from which we control our world – MediaTek is at the heart of both driving this and allowing the markets to drive this reality forward themselves. The next wave of consumer gadgets is here – smart, con...
May. 27, 2015 12:49 PM EDT Reads: 681
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore's Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at Big Data Expo, Mason Katz, CTO and co-founder of StackIQ, disc...
May. 27, 2015 12:30 PM EDT Reads: 5,527
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data...
May. 27, 2015 12:00 PM EDT Reads: 2,360
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
May. 27, 2015 12:00 PM EDT Reads: 2,402
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal S...
May. 27, 2015 11:30 AM EDT Reads: 4,363
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enter...
May. 27, 2015 11:15 AM EDT Reads: 2,821
SYS-CON Events announced today that EnterpriseDB (EDB), the leading worldwide provider of enterprise-class Postgres products and database compatibility solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. EDB is the largest provider of Postgres software and services that provides enterprise-class performance and scalability and the open source freedom to divert budget from more costly traditiona...
May. 27, 2015 11:00 AM EDT Reads: 2,108
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue o...
May. 27, 2015 10:30 AM EDT Reads: 1,377
"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.
May. 27, 2015 09:30 AM EDT Reads: 4,668
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
May. 27, 2015 08:45 AM EDT Reads: 2,200
Can the spatial component of your Big Data be harnessed and visualized, adding another dimension of power and analytics to your data? In his session at Big Data Expo®, John Meza, Product Engineer and Performance Engineering Team Lead at Esri, discussed the spatial queries that can be used within the Hadoop ecosystem and their integration with GeoSpatial applications. The GIS Tools for Hadoop project was also discussed and its implementation to discover location-based patterns and relationships...
May. 27, 2015 08:30 AM EDT Reads: 3,891
An effective way of thinking in Big Data is composed of a methodical framework for dealing with the predicted shortage of 50-60% of the qualified Big Data resources in the U.S. This holistic model comprises the scientific and engineering steps that are involved in accelerating Big Data solutions: problem, diagnosis, facts, analysis, hypothesis, solution, prototype and implementation. In his session at Big Data Expo®, Tony Shan focused on the concept, importance, and considerations for each of t...
May. 27, 2015 08:30 AM EDT Reads: 2,769