Big data as a service (BDaaS) has been instrumental in allowing clients of all sizes and types become more dependent on big data analytics and how it could help them reach goals. Here are five BDaaS trends people can look forward to in 2019.
More BDaaS companies will cater to the financial sector
According to Market Insights, BDaaS will show substantial growth between 2018–2023. More specifically, analysts predict a combined annual growth rate of 15.73% through the forecast timespan. The publication mentions the banking sector will play a role in driving that increase in market growth, particularly as those entities realize the worth of analytics for their operations.
For example, they may use analytics to determine the likelihood of a person to commit banking fraud or participate in specialty programs a bank offers to assist its customers. As such, 2019 will likely be a year when BDaaS company leaders realize there is a need to fill in the banking marketplace and investigate ways to address those customers.
More BDaaS businesses will offer on-premise solutions
When companies think about investing in big data platforms service providers offer, the initial inclination is often to store information in the cloud. But, in 2019, those entities may have more options if they're interested in on-premise choices instead.
In the third quarter of 2018, Dell EMC and BlueData teamed up to provide a BDaaS package for physical data centers, rather than cloud-based ones.
Harold Kreitzman, a vice president of strategic advisory services at the Edison Group, carried out a total cost of ownership analysis for that service. He mentioned there are both pros and cons to storing in the cloud versus onsite.
But he pointed out taking the on-premise route could save unnecessary costs for some companies: "Cloud services charge for things that you normally don’t charge for on-premise, like data transfer." Kreitzman added cloud data storage in multiple regions gets pricey: "Ironically, you'd think that cloud solutions would be cheaper, but it turns out that the more regions you put into place, the more expensive it gets."
This on-premise option, known as Dell EMC Ready Solutions for Big Data, has a starting price of $800,000, positioning it as most suitable for large organizations. However, now that on-premises options are becoming a growing trend, it's likely other well-known companies will move into the space with other possibilities.
Software providers could become more applicable to the BDaaS market
The software as a service (SaaS) sector has made it possible for customers to get everything from personal productivity helpers to office communication platforms without needing to purchase product keys or other physical means of installation. Clients sign up for services, then click on links that download the necessary content directly to their computers or gadgets.
This year, SaaS companies may capitalize on the growing worth of the BDaaS market and begin offering software that applies to customers seeking analytics-based options for their enterprises. A Gartner report anticipated a 20% growth rate for the SaaS market through 2020. And, it's not far-fetched to see the analytics software fueling part of the demand.
Opportunities abound for prominent players in the SaaS market to venture into the BDaaS sector by offering software that calculates sales commission trends for recurring revenue businesses, the likelihood of new hires to become loyal employees and more. If people can access the big data options from their smartphones or tablets, the SaaS products should be especially appealing.
The BDaaS industry will emphasize self-service platforms
Not long ago, companies that wanted to engage in big data analytics had teams or individuals solely responsible for that part of the business. As such, even when executives felt confident about the worth of big data for their organizations, they often balked at the prospects of hiring specialists to look at the data. Now, there's an increase in BDaaS options with self-service platforms.
With self-service, flexibility and agility increase, and customers appreciate the ease of use of the interfaces. Professional data scientists aren't going away by any means, but BDaaS providers will likely highlight ease of use among their selling points as a way to prove companies don't need dedicated teams of data professionals to take advantage of big data analytics.
BDaaS companies will increasingly target companies that use IoT sensors
IoT sensors collect data from countless sources, but users typically figure out the best ways to interpret that data. In 2019 and beyond, it's likely some of the most successful BDaaS companies will ramp up their marketing efforts toward potential clients that collect information from IoT sensors, but still struggle to interpret it.
Greg Johnston is CEO and president of Carl Data Solutions, a company that offers a BDaaS platform made for sensors associated with the Industrial Internet of Things (IIoT). In a video interview published in January 2019, Johnston said: "Data is the new oil. We can create lots of data, but without the ability to process or refine that data, then you're not really able to get to where you want to be."
Many people are already accustomed to viewing relatively small amounts of data – such as at collected over several months – with interfaces connected to IoT sensors. However, forward-thinking BDaaS companies will likely present products that help customers do much more than they ever imagined while viewing substantially larger stores of data from IoT equipment and making better decisions as a result.
BDaaS companies continuing to move into the mainstream
The trends listed here highlight some of the reasons for the projected growth mentioned in the first point. Overall, people should expect that BDaaS companies will highlight to current and potential clients that analysis tools are both available and cost-effective for their respective enterprises. Then, big data will become more accessible to businesses of all sizes.