Software, not hardware, will catapult big data into a $103B business by 2027
Peter Drucker, an early pioneer and leader in the field of management education, famously wrote that “the purpose of business is to create a customer.” His 20th century business philosophy has carried into the digital age with a new twist. Drucker might be more tempted to say that the purpose of business today is to use data to acquire a customer, a challenge that has become more apparent as the capture, storage and analysis of information becomes everything in the enterprise.
Deriving value from data and then putting it to good use in the business world has become the holy grail of success and a key predictor of whether a company will rise or fall. The formula for success thus becomes based on how effectively the enterprise world can build its own system for harnessing true data value. To draw from another famous Drucker quote, “The best way to predict the future is to create it.”
The business strategy for putting data to work has been the focus of significant research by the team at Wikibon Inc., and an analysis of where the big data community is going and how it will get there was recently presented at the BigData SV event in San Jose, California. Inevitably, the journey will depend on the technology and how it is used.
Those choices are going to be driven by a few significant numbers, said Burris. The first data point is $103 billion, which represents expected global big data hardware, software and services revenue by 2027, from about $40 billion this year. The key word here is services.
“The services business is going to undergo enormous change over the next five years as services companies better understand how to deliver big, data-rich applications,” Burris said.
The second key number is 2017, the year that the software market surpassed hardware in big data. Hardware isn’t going away, but the shift represents an important move towards finding new ways of software-driven data movement and analysis.
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