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JUN 2016 Delivering Digital Insights to the Business Dr ... · PDF file Delivering Digital Insights to the Business Dr. Katy Ring, Research Director, Global IT Services This report

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  • © 2 0 1 6 4 5 1 R E S E A R C H , L L C | W W W . 4 5 1 R E S E A R C H . C O M

    Managed Analytics as a Service

    Delivering Digital Insights to the Business

    Dr. Katy Ring, Research Director, Global IT Services

    This report analyzes the state of the market for managed analytics as a service (MAaaS), a capa- bility provided by IT service providers that brings together advanced analytics technologies with cloud delivery and professional service skills to provide actionable business insights. It discusses different types of offerings available in the market and assesses market development issues such as market sizing, market drivers and deal sizes. Finally, the report makes recommenda- tions for consultancies, managed service providers (MSPs), technology vendors, investors and enterprise buyers.

    JUN 2016

    THOUGHT LEADERSHIP

    http://www.451research.com

  • ©COPYRIGHT 2016 451 RESEARCH. ALL RIGHTS RESERVED.

    A B O U T 4 5 1 R E S E A R C H 451 Research is a preeminent information technology research and advisory company. With a core focus on technology innovation and market disruption, we provide essential insight for leaders of the digital economy. More than 100 analysts and consultants deliver that insight via syndicated research, advisory services and live events to over 1,000 client organizations in North America, Europe and around the world. Founded in 2000 and headquartered in New York, 451 Research is a division of The 451 Group.

    © 2016 451 Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication, in whole or in part, in any form without prior written permission is forbidden. The terms of use regarding distribution, both internally and externally, shall be governed by the terms laid out in your Service Agreement with 451 Research and/or its Affiliates. The information contained herein has been obtained from sources believed to be reliable. 451 Research disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although 451 Research may discuss legal issues related to the information technology business, 451 Research does not provide legal advice or services and their research should not be construed or used as such. 451 Research shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.

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    II

    A B O U T T H E AU T H O R

    D R. K AT Y R I N G R E S E A R C H D I R EC TO R, G LO B A L I T S E RV I C E S

    Dr. Katy Ring has more than 25 years of experience in the IT industry, providing strategic

    advice to C-level executives at vendor and end-user organizations. She has developed

    strong research-based expertise and has focused on areas where the global IT service

    delivery model is changing, including cloud services, the evolving CIO role, innovation,

    sustainability and global sourcing of labor.

  • ©COPYRIGHT 2016 451 RESEARCH. ALL RIGHTS RESERVED.

    III

    Key Findings

    Delivering a data-driven organization is not as easy as provisioning IaaS, and most enterprises do not have the skills in house to support the advanced analytics requirement that it necessitates.

    To support a data-driven organization enterprises need to have access to a mix of hybrid delivery options and external IT service providers to help create a total data integration scenario bringing together both struc- tured and unstructured data.

    MAaaS is a data analytics offering from professional service organizations that supports total data integration using diverse data sets, real-time analysis, and advanced technology skills and tools.

    MAaaS is enabled by cloud delivery so that a customer can send data to a private hosted environment or to a public cloud managed by the service provider and then pay per algorithm or per data items returned in answer to a question.

    Capabilities of MAaaS need to be set up and run in an ad-hoc way to get a faster time to value with the insight produced. IT service providers have been investing in the creation of ‘platforms’ to provide the types of quick self-service insight that buyers require. These form the backbone of the MAaaS offerings available today.

    The opportunity for as-a-service (-aaS) delivery is growing quickly as data-driven strategies provide a way for organizations that are not net-native (as well as those that are) to better compete in the digital economy. We expect revenue from -aaS offerings to climb at a CAGR of 46% to reach $19bn, and 14.4% of the total data platforms and analytics market, in 2020.

    To date among IT service suppliers the capability to help customers monetize their data is not widely pro- moted, or considered part of the mainstream commercial agenda for MAaaS offerings.

  • ©COPYRIGHT 2016 451 RESEARCH. ALL RIGHTS RESERVED.

    IV

    I N T R O D U C T I O N Managed analytics as a service (MAaaS) combines the on-demand aspects of cloud computing with the democratization of information enabled by big data. 451 Research defines ‘big data’ as BI driven by storing, processing and analyzing data that was previously ignored due to the cost and functional limitations of traditional data management technologies to handle one or more of three factors: volume, velocity and variety.

    Recent years have seen an explosion in the number of different platforms and approaches for storing, processing and analyzing data in multiple formats from multiple sources. The problem for database and analytics professionals today is, if anything, an abundance of choices in terms of both the data platform (relational and non-relational databases, NoSQL, NewSQL, Hadoop, database as a service, etc.) and analytics approaches (traditional BI reporting and analysis tools, visualization, in-database analytics, machine-learning algorithms, statistical and predictive analysis, etc.).

    At the moment, demand for big-data projects is largely driven by enterprise analytics, as organizations are able to look at old questions that have never been answered and integrate this capability with data they have never had.

    Having started as a stand-alone capability focused on the Hadoop technology ecosystem in 2006-2007 and used to address specific business challenges or opportunities, big data is now just beginning to be seen as part of an overall enterprise data management strategy. As such, it is poised to become part of mainstream enterprise IT.

    Like SaaS, the value proposition of ‘advanced analytics as a service’ enables both LOB and IT professionals to get direct access to actionable insights, while still helping to ensure enforcement of security, privacy and compliance controls. In this report we examine the new types of services that are coming to market, the emerging competitive landscape and assess how the market is likely to develop.

    M E T H O D O LO GY This report is based on a series of in-depth interviews with a variety of stakeholders in the industry, including consultancies and buyers in end-user organizations across multiple sectors in both the US and Europe. This research was supplemented with additional primary research, including attendance at a number of trade shows and industry events.

    Reports such as this one represent a holistic perspective on key emerging markets in the enterprise IT space. These markets evolve quickly, though, so 451 Research offers additional services that provide critical marketplace updates. These updated reports and perspectives are presented on a daily basis via the company’s core intelligence service, 451 Research Market Insight. Forward-looking M&A analysis and perspectives on strategic acquisitions and the liquidity environment for technology companies are also updated regularly via Market Insight, which is backed by the industry-leading 451 Research M&A KnowledgeBase.

    Emerging technologies and markets are covered in 451 Research channels including Business Applications; Cloud Transformation; Data Platforms and Analytics; Datacenter Technologies; Development, DevOps and IT Ops; Enterprise Mobility; European Services; Information Security; Internet of Things; Mobile Telecom; Multi-Tenant Datacenters; Networking; Service Providers; Storage; and Systems and Software Infrastructure.

    Beyond that, 451 Research has a robust set of quantitative insights covered in products such as Voice of the Enterprise, Voice of the Connected User Landscape, Market Monitor, the M&A KnowledgeBase and the Datacenter KnowledgeBase.

    All of these 451 Research services, which are accessible via the Web, provide critical and timely analysis specifically focused on the business of enterprise IT innovation.

    Dr. Katy Ring, Research Director, Global IT Services, wrote this report with help from Matthew Aslett, Research Director, Data Platforms and Analytics. Any questions about the methodology should be addressed to Katy Ring at [email protected]

    Executive