Big Data in 2015—Power to the People!

December 16, 2014

Last year I speculated that the big data ‘power curve’ in 2014 would be shaped by business demands for data blending. Customers presenting at our debut PentahoWorld conference last October, from Paytronix, to RichRelevance, to NASDAQ, certainly proved my speculations to be true. Businesses like these are examples of how increasingly large and varied data sets can be used to deliver high and sustainable ROI. In fact, Ventana Research recently confirmed that 22 percent of organizations now use upwards of 20 data sources, and 19 percent use between 11 – 20 data sources.[1]

Moving into 2015, and fired up by their initial big data bounties, businesses will seek even more power to explore data freely, structure their own data blends, and gain profitable insights faster. They know “there’s gold in them hills” and they want to mine for even more!

With that said, here are my big data predictions for 2015:

Big Data Meets the Big Blender!

The digital universe is exploding at a rate that even Carl Sagan might struggle to articulate. Analysts believe it’s doubling every year, but with the unstructured component doubling every three months. By 2025, IDC estimates that 40 percent of the digital universe will be generated by machine data and devices, while unstructured data is getting all the headlines.[2] The ROI business use cases we’ve seen require the blending of unstructured data with more traditional, relational, data. For example, one of the most common use cases we are helping companies create is a 360 view of their customers. The de facto reference architecture involves the blending of relational/transactional data detailing what the customer has bought, with unstructured weblog and clickstream data highlighting customer behavior patterns around what they might buy in the future. This blended data set is further mashed up with social media data describing sentiment around the company’s products and customer demographics. This “Big Blend” is fed into recommendation platforms to drive higher conversion rates, increase sales, and improve customer engagement. This “blended data” approach is fundamental to other popular big data use cases like Internet of Things, security and intelligence applications, supply chain management and regulatory and compliance demands in Financial Services, Healthcare and Telco industries.

Internet of Things Will Fuel the New ‘Industrial Internet’

Early big data adoption drove the birth of new business models at companies like our customers Beachmint and Paytronix. In 2015, I’m convinced that we’ll see big data starting to transform traditional industrial businesses by delivering operational, strategic and competitive advantage. Germany is running an ambitious Industry 4.0 project to create “Smart Factories” that are flexible, resource efficient, ergonomic and integrated with customers and business partners. The machine data generated from sensors and devices, are fueling key opportunities like Smart Homes, Smart Cities, and Smart Medicine, which all require big data analytics. Much like the ‘Industrial Internet’ movement in the U.S., Industry 4.0 is is being defined by the Internet of Things. According to Wikibon, the value of efficiency from machine data could reach close to $1.3 trillion dollars and will drive $514B in IT spend by 2020.[3]The bottlenecks are challenges related to data security and governance, data silos, and systems integration.

Big Data Gets Cloudy!

As companies with huge data volumes seek to operate in more elastic environments, we’re starting to see some running all, or part of, their big data infrastructures in the cloud. This says to me that the cloud is now “IT approved” as a safe, secure, and flexible data host. At PentahoWorld, I told a story about a “big datathrow down” that occurred during our Strategic Advisory Board meeting. At one point in the meeting, two enterprise customers in highly regulated industries started one-upping each other about how much data they stored in Amazon Redshift Cloud. One shared that they processed and analysed 5-7 billion records daily.. The next shared that they stored a half petabyte of new data every day and on top of that, they had to hold the data for seven years while still making it available for quick analysis. Both of these customers are held to the highest standards for data governance and compliance – regardless of who won, the forecast for their big data environments is the cloud!

Embedded Analytics is the New BI

Although “classic BI,” which involves a business analyst looking at data with a separate tool outside the flow of the business application, will be around for a while, a new wave is rising in which business users increasingly consume analytics embedded within applications to drive faster, smarter decisions. Gartner’s latest research estimates that more than half the enterprises that use BI now use embedded analytics.[4] Whether it’s a RichRelevance data scientist building a predictive algorithm for a recommendation engine, or a marketing director accessing Marketo to consume analytics related to lead scoring or campaign effectiveness, the way our customers are deploying Pentaho leave me with no doubt that this prediction will bear out.

As classic BI matured, we witnessed a final “tsunami” in which data visualization and self-service inspired business people to imagine the potential for advanced analytics. Users could finally see all their data – warts and all – and also start to experiment with rudimentary blending techniques. Self-service and data visualization prepared the market for what I firmly expect to be the most significant analytics trend in 2015….

Data Refineries Give Real Power to the People!

The big data stakes are higher than ever before. No longer just about quantifying ‘virtual’ assets like sentiment and preference, analytics are starting to inform how we manage physical assets like inventory, machines and energy. This means companies must turn their focus to the traditional ETL processes that result in safe, clean and trustworthy data. However, for the types of ROI use cases we’re talking about today, this traditional IT process needs to be made fast, easy, highly scalable, cloud-friendly and accessible to business. And this has been a stumbling block – until now. Enter Pentaho’s Streamlined Data Refinery, a market-disrupting innovation that effectively brings the power of governed data delivery to “the people,” unlocking big data’s full operational potential. I’m tremendously excited about 2015 and the journey we’re on with both customers and partners. You’re going to hear a lot more about the Streamlined Data Refinery in 2015 – and that’s a prediction I can guarantee will come true!

Finally, as I promised at PentahoWorld in October, we’re only going to succeed when you tell us you’ve delivered an ROI for your business. Let’s go forth and prosper together in 2015!

Quentin Gallivan, CEO, Pentaho

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[1] Ventana Research, Big Data Integration Report, Tony Cosentino and Mark Smith, May 2014.

[2] IDC, The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things, Gantz, Minton, Turner, Reinsel, Turner, April 2014.

[3] Wikibon, Defining and Sizing the Industrial Internet, David Floyer, June 2013.

[4] Gartner, Use Embedded Analytics to Extend the Reach and Benefits of Business Analytics, Daniel Yuen, October 3, 2014.


Recognizing and Rewarding Your Work: The Pentaho Excellence Awards

June 23, 2014

Lego_PEAOne of my favorite aspects of being CEO of Pentaho is the opportunity to talk to our customers around the world. Innovative and motivated individuals and teams are turning data into value and making a major impact for their organization, and in some cases for the better of society. We are proud to announce first annual Pentaho Excellence Awards to recognize and honor our customers and users, rewarding those that have deployed Pentaho technologies in impressive and innovative ways.

The Pentaho Excellence Awards offer an opportunity for you and your team to receive industry recognition for your expertise in analytics and big data deployments and thought leadership. While we know your teams are busy helping to make faster and smarter business decisions, here is the link to more information about the Pentaho Customer Excellence Awards and our short nomination process: http://bit.ly/PWorldPEA. Nominations are open until July 11th.

A panel of expert judges will pick a winner in six different categories. Category winners receive a free pass to PentahoWorld in Orlando October 8-10, 2014, along with several additional unique opportunities at the event such as a VIP dinner, speaking opportunities and recognition at a keynote awards ceremony. As a highlight of the Awards ceremony we will announce the overall User of the Year Award.

We look forward to celebrating the amazing accomplishments achieved through our work together. I hope to see you on stage during the awards ceremony at PentahoWorld.

Quentin

Photo/LEGO credit: @kathrineiben


2014 European Tour – London

March 17, 2014

I am now back home in San Francisco, but wanted to give an update on my last leg of the trip in London. I arrived on Wednesday night for a dinner with the team in London. We’ve always had a strong presence in the UK, but it was not until this past January that we opened a beautiful office in Euston Square. We also have added many new impressive hires in London such as Paul Scholey as Sales Director of EMEA and Laura Coles as Marketing Director of EMEA and APAC. It was great to spend some time Wednesday night getting to know the new team members and then to see the new office on Thursday.

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Dinner with Pentaho team in London

Thursday was one of the busiest day of my European tour. My first meeting of the day was with one of the world’s largest interactive advertising agencies. They are using Pentaho to provide web analytics to their customers (including some of the world’s largest brands). This agency has impressive plans for rolling out their Pentaho-powered analytics platform to provide a distinctive service that can help their client’s optimize campaign effectiveness and web site design.

Next was an interview with Jason Stamper who recently joined 451 Research. This is the second time that I met Jason in person and I always enjoy our conversations about next generation technologies and big data use cases.

My third meeting of the day was with another impressive customer, a leading global loyalty analytics provider. They are currently rolling out a major project with Pentaho Data Integration to help them to achieve efficiencies and optimizations across a large, distributed group.

Early afternoon I traveled to Canary Wharf to meet with a leading global investment bank and speak with the Global Head of Risk and Finance IT. We talked about the role of Pentaho in addressing their big data challenge (understanding their trading exposure to client entities and to improve operational efficiency), in order to support better risk reporting and financial consolidation.

Not done yet….next it was on to a telecommunications company that has selected Pentaho to underpin several strategic initiatives to resolve complex data issues for both themselves and their clients.

Five meetings down and I was still ready for more. Once back at the office, several UK team members got together and I ran through the information I have been sharing with analysts and investors.  This is such an exciting time for us as a company and seeing everyone enthused by what we have to offer, and the speed that we are growing. I received many great questions from both new starters and ‘old hands’, but what I really liked was seeing such a strong unified team.

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Running through our analyst and investor deck with the Pentaho team

Last, but certainly not least, I ended my day with an interview with Brian McKenna at Computer Weekly discussing our strong partner relationships with MongoDB, Splunk and Cloudera as well as our capabilities for governed data discovery.

The busy day was topped off with an enjoyable dinner with some of the team and customers.

Friday, I said my goodbyes to the team and started on the long travel back home to San Francisco. This past week has been a whirlwind visiting Frankfurt, Paris, Cascais (Portugal) and London. I always leave these European tours impressed by our customers and extraordinary EMEA team as well as excited about the opportunities for Pentaho in Europe.

It truly is going to be the year of Pentaho!

Quentin


2014 European Tour – Portugal

March 13, 2014

I traveled to Lisbon yesterday in time to enjoy dinner with the 2 Pedro’s – Alves and Martins and Nuno Moreira.  We are lucky to have these three very talented men join the Pentaho team when we acquired Webdetails last year.

My morning was taken up spending time with the Webdetails team in Pentaho’s new Portugal office.  We acquired Webdetails in April of 2013 and I have never seen a company to integrate so seamlessly and start making impactful contributions as quickly as the Webdetails. This past year they continued to build upon their CTools series for creating and managing dashboards and reports and have used that talent to help deliver our 5.0 platform in September.  A few other items to mention are the creation Sparkl and a project maturity classification system, building out the Pentaho Marketplace, new language pack installers, new community website and more. Ease of use and impressive design is their specialty. Even their job application website is a memorable experience.

Next stop is London where I am look forward to seeing our new office and more non-stop days.  First up is a team dinner where I will have the chance to meet several new team members.

London, I’m on my way!

Quentin


2014 European Tour – Paris

March 12, 2014

After a great day in Frankfurt, I was just winding down for the day and enjoying a fine German beer, when in California the team was just starting their day.  And of course the calls started coming in from everyone who thought I would be starting my working day as well – the perils of the time differences when you are traveling!

Day two of my European tour began in Paris. First on the agenda was a meeting with our customer PIXID, market leaders for internet-based workflow and document management services to services organizations using temporary staff. Today 300 enterprises, 700 SMBs and 6,500 agencies, representing 90 percent of the temp activity in France, are connected to PIXID services. The company has decided to integrate Pentaho Business Analytics with its collaborative “e-temp” platform to offer its clients and agency networks the ability to view advanced performance metrics as well as detailed interactive analysis. It was a great meeting and fantastic to see thought leaders like PIXID embedding our analytics capability as a means of further differentiating their own products and helping them to expand globally into new markets.

We had an interesting discussion on the benefits that big data technology can bring to this market, along with the complexities of doing so in a regulated environment – and one where data security and governance is of paramount importance.

The regulations for how data can be stored, shared and analyzed differ across all of the countries in Europe, which is a further challenge — But also an opportunity.

Next up was a very enjoyable lunch. It would be rude to come to Paris and not partake in the cuisine!

I then spent some of the afternoon with a top-tier global consultancy that is investing heavily in the provision of Business Services.  They are providing a service into the banking sector, which increasingly faces the challenge of meeting the needs of the regulator without impacting the ability of the business to innovate, invest and deliver client satisfaction and profitability.  Banks have to drive unnecessary cost out of their business processes to be able to do this. This type of challenge is tailor made for emerging Big Data technologies. I look forward to following-up on this project since many of the leading global banks will soon be using Pentaho.

Next stop Portugal and spending some time with our incredibly talented WebDetails team!

Quentin


2014 European Tour – Frankfurt

March 11, 2014

My week in Europe is off to a great start. Yesterday, I was in Frankfurt, Germany with back-to-back meetings with partners and customers. It was nice to start the day off meeting with IT Novum, a Pentaho partner of four years.

It has been good to hear about the big data market really gathering pace here in Germany, and that there is such widespread interest. One of the markets that is strongest for Pentaho in Germany is the embedded analytics market. While several Pentaho team members were busy yesterday not too far away in Hanover, Germany speaking about big data and embedded analytics at CeBIT, I had a chance to meet with our OEM partner Godesys  and learn about how they embed Pentaho into their full ERP (Enterprise Resource Planning) solution – which they have deployed to an impressive 600 customers.

I was impressed by our partner Inovex who is also working on some fantastic big data customer deployments.  It was great to hear a few excellent big data Hadoop case studies including one of the largest media companies in Germany using Pentaho and Hadoop to analyze customer behavior patterns across all channels, particularly web and television.

Next up…Paris!

Quentin


2014 European Tour – 4 cities, 5 days

March 10, 2014

This week I am excited to be in Europe visiting Germany, Portugal, France and London.  My schedule is packed full of meetings with customers, partners and analysts, and I am of course looking forward to spending some time with the team in our newly established London office.

It is a little over a year since my last trip to Europe, when I was impressed by the enthusiasm that I saw for big data. At the time I predicted that big data would start to enter mainstream production in 2013 and there is clear evidence of this with Pentaho’s fast growing EMEA business and rapidly expanding regional team.

On this trip, a few of the companies that I will be speaking with include a major British telecoms company, one of the world’s largest interactive advertising agencies and a national bank. I am interested to hear how they  – and others – are utilizing data and analytics to drive their businesses forward and benefit from innovative new revenue streams. It is always good to find out about how execution of big data analytics is working out for users in practice.

I will also be catching up with some familiar faces from my last visit, including Brian McKenna from ComputerWeekly.

It’s going to be a roller coaster of a trip and I can’t wait to see everyone, Europe, here I come!

Quentin


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