It’s an exciting time in the big data market. It’s booming at an unprecedented rate and Hadoop is clearly in the forefront of this tremendous change, enabling businesses to find insights they previously didn’t have access to. If you looked back five years, no one would have been able to predict where we are today.
As the new CMO of Datameer, I recognize the importance of data-driven marketing. In fact, it was of the key drivers in my decision to join Datameer. There were times in my career that I wondered how I ended up in marketing, with a degree in Aerospace Engineering and I often wished I could be more creative than analytical. But today, more than ever, the role of CMOs has become data-driven and those who leverage big data to analyze all of their customer behavior will gain an edge over their peers.
Almost everyone in the industry agrees that the big data market is going to grow at an aggressive rate, the only difference seems to be by how much. One of our most recent investors, Ben Fu, partner at Next World Capital, recently interviewed with TechCrunch on their “Ask a VC” series. He shared his thoughts around how Hadoop will re-platform the $10B enterprise data market, especially around the incumbents. Fu talked a lot about how the entire stack will shift around big data, either by new products from the incumbents but more likely by startups that capitalize via infrastructure (companies like DataStax which they invest in), analytics (Datameer) or applications.
And Ben isn’t alone in this assessment. Wikibon is estimating that big data will be a $28.5 billion market in 2014, growing to $50.1 billion in 2015. IDC cites that the worldwide big data technology and services market will grow to exceed $32 billion by 2017 and according to a new report released by Allied Research, the worldwide market for Hadoop is set to grow to over $48 billion by 2020.
At Datameer, we have the opportunity to see first hand how this market is exploding. We are working with some of the top companies around the world like American Express, Citi, Visa, Workday, Opower, Trustev and Vivint, among a host of others, who are leading the charge of successfully using Hadoop to harness and analyze big data. These are companies that have already discovered big data advantages that allow them to innovate, compete, and capture value above and beyond their competitors.
We have found that most big data use cases fall into one of these five use cases:
- Customer analytics
- New product innovation
- Fraud & compliance
- Operational analytics
- EDW optimization
For example, a major financial services company would need 36 hours to analyze 4 MM accounts, with three spending categories per account. With big data, a similar query built in Datameer for seven times more customer data now runs in 51 minutes or 96 percent faster. Imagine the new insights that they are getting to drive new revenue streams.
A rapidly growing gaming company doubled revenue by analyzing how customers use their games, what motivates them to keep playing and buying add-on products versus getting bored and abandoning the game. The engineers and product managers use big data to analyze all of those customer behaviors to incorporate product enhancements that drive revenue.
That’s not all. A major credit card company evaluated credit card fraud across its millions of issued credit cards to prevent small but numerous quantities of credit hacks. It determined patterns after evaluating the data and avoided $2B in potential credit card fraud.
These are clear demonstrations of the power that Hadoop and big data analytics can, and does have, for real business value by reducing waste and increasing the quality of products and services. Companies of all sizes are investing in this cutting-edge data technology because these are proven methods to enhance productivity and create significant value for the world economy.