|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.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
Nov. 26, 2014 09:45 AM EST Reads: 431
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Nov. 26, 2014 09:45 AM EST Reads: 495
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Nov. 26, 2014 09:45 AM EST Reads: 132
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Nov. 26, 2014 09:30 AM EST Reads: 478
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Nov. 25, 2014 09:30 PM EST Reads: 1,106
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
Nov. 25, 2014 09:30 PM EST Reads: 1,141
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Nov. 25, 2014 08:00 PM EST Reads: 1,365
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Nov. 25, 2014 07:00 PM EST Reads: 1,212
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
Nov. 25, 2014 04:30 PM EST Reads: 1,247
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Nov. 24, 2014 07:00 PM EST Reads: 1,588
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
Nov. 24, 2014 12:00 PM EST Reads: 1,467
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Nov. 24, 2014 11:00 AM EST Reads: 1,603
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
Nov. 24, 2014 09:00 AM EST Reads: 1,615
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, 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. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
Nov. 23, 2014 07:30 PM EST Reads: 1,803
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nov. 23, 2014 12:00 PM EST Reads: 1,742
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Nov. 23, 2014 07:45 AM EST Reads: 1,758
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Nov. 22, 2014 05:30 PM EST Reads: 1,506
ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ -- IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...
Nov. 22, 2014 05:30 PM EST Reads: 1,560
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
Nov. 21, 2014 08:00 PM EST Reads: 1,566
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
Nov. 21, 2014 08:00 PM EST Reads: 1,492