IT Management

Different markets can be segmented in many ways and it can be confusing when marketing buzzwords are also part of the landscape. In the world of enterprise data, the key segments we tend to talk about most include data warehousing (DW), big data and business intelligence/analytics.

Definitions of these segments vary, but I thought it would be interesting to explore some of the experts’ latest thoughts regarding market monetization. I tried to use 2014 research as much as possible. Reported market sizes vary, but it is interesting to peek into the state of the strategic data marketplace.

Data Warehousing

Market Research Media reported in 2014 that the global data warehouse market will grow by 8.3 percent in 2015–2020, passing a total market value of $20 billion by 2020. During this time, they believe the DW market will be shaped by the need for DW infrastructure to handle big data projects and the increasing demand for low-latency and high-speed analytics.

Global Industry Analysts released a comprehensive global report on the data warehouse software markets in June 2013. They stated that revenues were projected to reach nearly $17 billion in 2018, driven by a growing focus on business intelligence (BI) and strong demand for next-generation DW platforms.

Big Data

IDG Research released some interesting research in early 2014 that looked hard at organizations’ big data initiatives, investments and strategies. They reported the average business expects to spend $8 million on big data–related initiatives this year. Organizations are seeing exponential growth in the amount of data managed, with an expected increase of 76 percent within the next 12–18 months. Companies are intensifying their efforts to derive value through big data initiatives, with nearly half (49 percent) of respondents already implementing big data projects or in the process of doing so in the future.

Research and Markets released in June 2014 their latest report, “The Big Data Market 2014–2020.” According to the report, in 2014 big data vendors will pocket nearly $30 billion from hardware, software and professional services revenues. Big data investments are further expected to grow at a compound annual growth rate (CAGR) of nearly 17 percent over the next six years, eventually accounting for $76 billion by the end of 2020.

Wikibon, one of my personal research favorites, issued a report in early 2014 that showed 2013 ending with nearly $20 billion in spending on big data hardware, software and services—up 56 percent from the previous year. Their prediction for 2017 is more than $50 billion.

ABI Research, a global technology market research firm, estimated in late 2013 that the big data market would hit $31 billion that year, would have a CAGR of nearly 30 percent and will hit $114 billion in 2018. The numbers included salaries as well as hardware, software and services. About half the forecast was made up of personnel costs.

451 Research, parent of the Yankee Group, reported in July 2014 on an interesting subset of the big data (and DW) market—the Hadoop and analytics database market. They estimate the combined revenue in this sector was $13.6 billion in 2013 and will grow at a CAGR of 12 percent to reach $24.2 billion in 2018.

Business Intelligence and Analytics

Gartner, in April 2014, reported BI and analytics spending at $14.4 billion for 2013. This amount is up approximately 8 percent from 2012. They stated that half of BI and analytics spending will be business driven (as opposed to IT driven). Analytics are becoming more strategic, and despite slow growth in the latest report (8 percent), analytics will be a highest priority investment in future years.

Summary

No matter how you want to slice it, the world of enterprise data is seeing tremendous growth and business interest. When you have a technology market that is growing at this rate and when mass confusion reigns supreme, we are set for interesting times. I can’t wait to see what the next five years will bring.