Big data and analytics tools are now in the same league as CRM and marketing automation for share of software budget, according to research from analyst firm Telsyte.
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The Telsyte Australian Big Data & Analytics Market Study 2017 reveals the demand for high volume data processing and real-time intelligence is growing strongly as organisations struggle to keep up with an explosion of data. And CIOs are planning to spend more on big data in 2017. Telsyte found 83% of Australian CIOs are planning to invest more on big data in 2017, including hardware, software and services.
Around a third of CIOs are looking to use big data analytics for sales and marketing applications, making it in the top three of line of business use cases. However, uptake is still lagging with only 15% of marketing departments having implemented big data analytics.
Intention to use big data analytics are high across a range of applications, including: financial modelling; customer interaction; security and fraud detection; retail sales and e-commerce; and Internet of Things (IoT) and machine-to-machine infrastructure.
Some 30% of enterprises are using or planning to use big data for predictive analytics, indicating a strong requirement for these use cases.
The investment in big data software is tied to the expected growth of IoT, Telsyte found. Its research showed more than half of Australian CIOs predict a five or more fold increase in the number of connected devices in their enterprise within the next five years. And a lack of a big data strategy is a blocker for IoT adoption in one in four organisations.
“Just collecting and processing data is half the story. Australian business leaders must use real-time analytics to gain business value from data and transform their decision making from reactive to proactive,” Telsyte Senior Analyst, Rodney Gedda, says.
The main benefits CIOs are looking to derive from a big data and analytics strategy are better productivity, improved decision making and better product and service development which is now the number one business priority for Australian IT leaders.
Lack of in-house skills
Telsyte research investigated the main barriers to the adoption of big data among Australian enterprises and factors like software costs, lack of in-house skills and IT infrastructure requirements are holding back broader adoption in Australia.
Big data analytics is now in top five of enterprises applications managed by third-party service providers indicating a lack of in-house capability to process large data sets.
So who’s winning?
The Australian market for big data and analytics support partners is growing strong with global players like IBM, Amazon Web Services, Cloudera, Dell/EMC, Google, Microsoft, SAP and Oracle all vying for a slice of the boom in spending by buyers of big data.
Telsyte research found platforms and managed services top of the shopping lists for organisations embracing big data.
In addition to the multinational options Australia has a growing big data analytics industry with vendors like Contexti, EngineRoom.io and YellowFin offering a range of products and services in the space.
“The local big data services space remains ripe for consolidation with a number of service providers growing quickly in the past 12 months,” said Telsyte Managing Director, Foad Fadaghi, says.
Strategies are maturing
Now in its third edition, the Telsyte Australian Big Data & Analytics Market Study 2017 found that most (63%) enterprises are at a low maturity level.
However, the rate of organisations with “strategic” to “optimised” Big Data maturity has risen sharply during the past two years.
Republished with permission from which-50.com.
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