Click here to close now.




















Welcome!

Agile Computing Authors: Yeshim Deniz, Pat Romanski, Carmen Gonzalez, Greg O'Connor, Dana Gardner

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Cloud Security, @BigDataExpo, SDN Journal

@CloudExpo: Article

The Intelligence Inside: Cloud Developers Change the World of Analytics

Evidence is mounting that embedding analytics inside apps business people use every day can lead to quantifiable benefits

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?
Fortunately, there is a new generation of embedded analytic platforms emerging that looks set to address these challenges of cost and complexity. Wayne Eckerson, a noted BI analyst, identifies this as the third generation of embedded analytics in his article on the Evolution of Embedded BI. In summary, Eckerson describes the third generation as "moving beyond the Web to the Cloud" where developers can "rent these Cloud-based BI tools by the hour." These BI platforms can "support a full range of BI functionality including data exploration and authoring" and can be embedded through standard interfaces like REST and JavaScript. So, how does this third-generation address the issues of cost and complexity?

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.

Leveraging web-standard APIs like REST and JavaScript, the third-generation platforms also simplify the task of embedding analytics both on the front-end and back-end of the application. Importantly, these APIs allow full-featured, self-service BI capabilities to be embedded, not just reports and dashboards. This means increased ability of the application to respond to the ad-hoc information requests of business users.

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.

More Stories By Karl Van den Bergh

Karl Van den Bergh is the Vice President of Product Strategy at Jaspersoft, where he is responsible for product strategy, product management and product marketing. Karl is a seasoned high-tech executive with 18 years experience in software, hardware, open source and SaaS businesses, both startup and established.

Prior to Jaspersoft, Karl was the Vice President of Marketing and Alliances at Kickfire, a venture-funded data warehouse appliance startup. He also spent seven years at Business Objects (now part of SAP), where he held progressively senior leadership positions in product marketing, product management, corporate development and strategy – ultimately becoming the General Manager of the Information-On-Demand business. Earlier in his career, he was responsible for EMEA marketing at ASG, one of the world’s largest privately-held software companies. Karl started his career as a software engineer.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
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, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be.
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small, but are focused on specific tasks. The ability for developers to deploy multiple containers – thous...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Communication) is an open source project supported by Google, Mozilla and Opera that aims to enable bro...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on demos and comprehensive walkthroughs.
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, will discuss how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the data to create additional revenue streams, such as improved warranties or premium features. Or slash...