|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.
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Jun. 27, 2016 10:00 AM EDT Reads: 990
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 27, 2016 09:30 AM EDT Reads: 818
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Jun. 27, 2016 07:30 AM EDT Reads: 986
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Jun. 26, 2016 05:00 PM EDT Reads: 1,304
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Jun. 26, 2016 05:00 PM EDT Reads: 1,212
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Jun. 26, 2016 04:00 PM EDT Reads: 1,258
19th Cloud Expo, taking place November 1-3, 2016, 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 enterpri...
Jun. 26, 2016 04:00 PM EDT Reads: 1,319
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Jun. 26, 2016 02:00 PM EDT Reads: 1,155
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Jun. 26, 2016 12:00 PM EDT Reads: 1,352
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 26, 2016 12:00 PM EDT Reads: 1,093
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jun. 26, 2016 12:00 PM EDT Reads: 1,292
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jun. 26, 2016 12:00 PM EDT Reads: 1,112
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Jun. 26, 2016 11:00 AM EDT Reads: 1,120
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jun. 26, 2016 09:45 AM EDT Reads: 641
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jun. 26, 2016 08:45 AM EDT Reads: 750
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Jun. 25, 2016 03:00 PM EDT Reads: 1,625
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Jun. 24, 2016 01:00 PM EDT Reads: 1,365
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Jun. 24, 2016 12:00 PM EDT Reads: 1,661
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Jun. 22, 2016 11:00 AM EDT Reads: 1,375
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
Jun. 19, 2016 12:45 PM EDT Reads: 1,281