There was a report that Accel Partners has floated a 100 million USD fund for investing in Big data companies. This is not an isolated development, we can see that big data and analytics are becoming hot and sweet spots for attracting VC funding across the globe.
- A big data firm Birst raised around $46 million from VC firms like Sequoia Capital.
- Prominent vendor Cloudera amassed so far $75 million from VC firms like Accel Partners.
- The big data software firm Splunk raised a staggering $230 million in IPO
Millions of dollars are floating into the business of big data.
Let us see what is big data? In one of the recent events in US, data scientist John Rauser gave a simple one line definition that it is the any volume of data which cannot be managed by one computer. There are many who agree and disagree to this. Now whatever may be the definition, nobody has a doubt over its growing relevance in the digitally connected world. With the advancement in cloud computing and spread of social media and mobile technologies, big data is going to be huge.
According to investment banker, JMP Securities, the software market for big data tools is expected to go up from 9 billion USD in 2011 to 86 billion USD by 2020. According to the investment analysts the number one reason for the big data to get a liking from VC’s is this huge market potential and growing demand from global enterprises. The other important characteristic of this market is its global appeal. Big data is relevant for all geographies and industry verticals.
However for big data industry to flourish, BPO and technology firms have to bring forth solutions combining technologies like Hadoop and cloud computing, big data consulting and analytical services. This could convince enterprises to go for such big data tools and services in a bigger way. Though there is a big buzz, it is also true that very firm know how to leverage this big data.
There is still a lack of people with sufficient knowledge in big data analytics. The focus of BPO’s is to gain domain knowledge and have a strong team in place to offer compelling solutions around big data and analytics to enterprises.
Many believe that this big data challenges for any enterprise reminds them about the old ERP days. Here the deployment of right software tools and technology is only a minor concern, the key obstacle is reengineering of processes and employee mindset towards leveraging big data. As VC’s expect and put their bet on this business, it is high time that BPO’s realize the potential of this segment and bring forth right kind of solutions to address the concerns of enterprises and deliver true benefits of ‘big data’.