Things to note before investing in on-premises big data capabilities
As firms transform their business digitally, they will be required to depend on on-premises big data wall to relocate data and insights. Thus, the migration of data and analytics to the public cloud that began in 2016 is still going strong in 2017 and will continue in 2018.
Reductions in cost and increases in analytics power are planting the seeds of disruption. While most firms think they have time to migrate, disruptors steal customers by leveraging big data cloud innovation such as serverless analytics and artificial intelligence (AI).
Spending on public cloud services and infrastructure will grow at 24.4 percent to $122.5 billion in 2017, according to IDC.
Public cloud spending will achieve 21.5 percent compound annual growth rate (CAGR) – nearly 7 times the rate of overall IT spending growth during 2016-2020. By 2020, public cloud spending will be $203.4 billion. In 2017, spending on public cloud services and infrastructure will reach $122.5 billion.
United States will be the largest market for public cloud services generating more thatn 60 percent of total revenues. Western Europe will be spending $24.1 billion in Asia Pacific excluding Japan will be spending $9.5 billion on public cloud.
According to market research firm Forrester, the time has come to think exponentially and see the immediate need for action.
It warns enterprises to stop investing in on-premises big data capabilities right now. “We recognize this is not practical for many; therefore, you should at least redirect many of your on-premises plans toward public cloud platforms and hybrid interim solutions,” the firm said in a report.
Therefore, it suggests four steps for enterprises to consider before investing. Those are:
As a first step, firms need to develop a list of existing big data analytics workloads and candidate system-of-insight solutions, then look for common application objectives such as the need for business self-service or support for digital innovation or agility. Also, consider the need for rapid progress to support high-priority business opportunities as well as enterprise technology SLAs that demand control over the infrastructure for mission-critical applications.
Additionally, enterprises need to spend time to create an inventory of their existing big data analytics and insight applications on various public cloud services. this can be done talking to your marketing, sales, customer experience, and customer insights teams, as they are likely using many SaaS solutions already. Also, find operational technology groups that may be using cloud services for M2M/internet-of-things (IoT) solutions, which 52% of enterprises say they already have or are planning for.
