Big Data Spending to Reach $114 Billion in 2018; Look for Machine Learning to Drive Analytics
London, United Kingdom - 09 Sep 2013
Global spending on big data by organizations will exceed $31 billion in 2013, finds a new market forecast by ABI Research. The spending will grow at a CAGR of 29.6% over the next five years, reaching $114 billion in 2018. The forecast includes the money spent on internal salaries, professional services, technology services, internal hardware, and internal software.
Senior analyst Aapo Markkanen comments, “We estimate that in big data initiatives salaries account for about half of the current spending, with the other half allocated to vendors’ products and services. What we’re now seeing is quite significant overspending on salaries, as organizations turn to data scientists and other specialists in order to leverage big data in the first place. Similarly, a good share of the money is spent on the associated professional services, which have sprung up to assist firms that are data-rich but skills-poor.”
Narrowing the said skills gap, as well as improving the productivity of dedicated data scientists, represents a lucrative revenue opportunity for the sector’s vendors. Cloudera’s Impala project, the hitherto readiest attempt to enable SQL on Hadoop clusters, is an example of this demand being addressed on the database front. Going forward, ABI Research expects significant innovation, especially from the field of analytics.
Practice director Dan Shey highlights, “Machine learning and its application in advanced analytics is one area that will make both the public and private sectors data-savvier than anything we’ve seen so far. Big players such as IBM and HP are understandably moving to this direction, but at the same time we can also see analytics startups, like Ayasdi and Skytree, that have machine learning in their very DNA. Eventually, such innovations will put analytics within any domain expert’s reach. At that point, data will stop being ‘big’ again.”
These findings are from ABI Research’s “Unlocking the Value of Big Data in Enterprises” study, which is part of the firm’s M2M Service Delivery Platforms and Cloud Content and Services Research Services.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.