Pitfalls And Promises Of The Big Data Market For Solution Providers

Focus on big data
Focus on big data

There's big interest in big data IT, according to a new report from Capgemini Consulting, with spending on big data projects expected to reach $114 billion in 2018.

But solution providers who see opportunity in the market for big data technology and services should beware: Big data is complicated and only a little more than a quarter of IT executives surveyed by Capgemini described their big data initiatives as "successful."

The report, "Cracking the Data Conundrum: How Successful Companies Make Big Data Operational," is based on the findings of a November 2014 survey of 226 big data executives in North America, Europe and Asia-Pacific. The executives, with roles in IT, business and data analysis functions, spanned a broad range of industries including retail, manufacturing, financial services, energy and utilities, and pharmaceuticals.

Interest in big data began to skyrocket in early 2012 and spending on big data initiatives in 2013 was $31 billion, a number that's expected to soar to $114 billion in 2018, according to the report, citing numbers from ABI Research.

Solution providers take note: Sixty percent of those surveyed believe that big data will disrupt their industry within the next three years. For many businesses, this will be a major IT priority.

The big data market is still very much in its early stages, however. "Recognizing the importance of big data is quite different from fully embracing it," the report said. "We found that while a large number of organizations are currently experimenting with their initiatives, many have not fully embedded big data in their operations."

Only 13 percent of survey respondents said they are in full-scale production with their system providing predictive insights that are extensively integrated into their business operations. Another 35 percent described their systems as being in "partial production" with predictive insights integrated with some business operations.

Next: Some Sobering Numbers