Enterprise Cloud Forum: Turning Big Data into Big Dollars
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This document summarizes an enterprise cloud forum presentation by Rackspace Advisory Services on turning big data into profits. The presentation covers the importance of big data to enterprises and industries like retail, healthcare, and manufacturing. It defines big data in terms of volume, velocity and variety. There are significant skill gaps for data scientists and big data technologies like Hadoop can help analyze unstructured data at scale. The cloud is well-suited for big data due to its scalability, elasticity and pay-as-you-go model. Rackspace offers big data solutions and advisory services to help enterprises adopt big data and cloud technologies.
Enterprise Cloud Forum: Turning Big Data into Big Dollars
- 1. Enterprise Cloud Forum: “Turning Big Data into Big Dollars” Presented By: Rackspace Advisory Services
- 2. Your Hosts Brian Jawalka Anand Bhadouria Enterprise Solutions Architect, Enterprise Solutions Architect, Cloud Strategy Cloud Strategy Rackspace Advisory Services Rackspace Advisory Services [email protected] [email protected] RACKSPACE® HOSTING | W W W.RACKSPACE.COM 2
- 3. What We Will Cover Today Importance of Big Data to the Enterprise Definition of Big Data Big Data Skill Requirements/Gaps Big Data Technologies & Implementation RACKSPACE® HOSTING | W W W.RACKSPACE.COM 3
- 4. Why is BIG DATA so important for the enterprise? RACKSPACE® HOSTING | W W W.RACKSPACE.COM 4
- 5. Big Data Importance & Benefits Better Productivity Higher Revenues Better Decision-Making Innovative Products, Services & Business Models “The NEW raw material of business: an economic input on par with capital and labor.” - The Economist RACKSPACE® HOSTING | W W W.RACKSPACE.COM 5
- 6. If a median Fortune 1000 business increased the usability of its data by only 10%, it would earn an extra $55,900 per employee or $2+ billion a year in BIG DATA added revenue. 6 RACKSPACE® HOSTING | W W W.RACKSPACE.COM “Measuring the Business Impacts of Effective Data, chapter 1,” University of Texas, September 2010, p3
- 7. Industries most affected by Big Data Computers & Electronics Massive amounts of data with opportunities for: Entertainment & Media Finance Mining for insights Healthcare Repackaging with new business models Information Services Insurance Retail EVERY Enterprise will benefit in: All levels of Government Marketing Product Development Customer Service RACKSPACE® HOSTING | W W W.RACKSPACE.COM 7
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- 9. Importance of Big Data to Major Retailers Transaction Data Drives Purchase Behavior • Online search engine refinement • Tailored offers aligning to consumer activity “… create a click frenzy.” RACKSPACE® HOSTING | W W W.RACKSPACE.COM 9
- 10. Big Data is changing the Healthcare Industry Analyzing Patient Datasets to find patterns… Helping Doctors Save Lives. Healthcare RACKSPACE® HOSTING | 10 W W W.RACKSPACE.COM
- 11. 10% more efficient usage of data pays off $200 Billion SAVINGS per year!1 Healthcare Increase margins by 60%!1 RACKSPACE® HOSTING | W W W.RACKSPACE.COM 11 Source: James Manyika et al, “Big Data: The next frontier for innovation, competition, and productivity,” McKinsey Global Institute, May 2011, pp64, p39
- 12. Importance of Big Data to Operations Customer Data Logistics Data Manufacturing Data Enhanced Plant Operations RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 13. What is BIG DATA anyway? RACKSPACE® HOSTING | W W W.RACKSPACE.COM 13
- 14. What is “Big Data” • E-mail & user-generated content VOLUME • Social media, B2B Transactions • Mobile & GPS- equipped phones • System logs BIG DATA • RFID tag sensors VELOCITY VARIETY RACKSPACE® HOSTING | W W W.RACKSPACE.COM 14
- 15. Structured vs. Unstructured Data “80%-90% of today’s data is unstructured…” 15
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- 17. How we measure Big Data Today…. Table 1: Terms Used for Big Data Storage Capacity Term Size Example of Capacity 1,000,000,000 1 GB = 2 hours of CD-quality audio or 7 Gigabyte (GB) one billion bytes minutes of HDTV 1,000,000,000,000 1 TB = 2,000 hours of CD-quality audio, or Terabyte (TB) one trillion bytes almost 5 days of HDTV 1,000,000,000,000,000 1 PB = 7 weeks of HDTV, Petabyte (PB) one quadrillion bytes or 1.5 million 64 GB iPods full 1,000,000,000,000,000,000 1 EB = 16 months of HDTV, Exabyte (EB) one quintillion bytes or 15 million 64 GB iPods full Sources: Rackspace, SKATelescope.org, whatsabyte.com RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 18. Exponential Growth A Decade of Digital Universe Growth 9000 8000 7910 7000 So what do you 6000 do with all of 5000 544% this data? 4000 growth 3000 2000 1227 1000 130 0 2005 2010 2015 EXABYTES RACKSPACE® HOSTING | W W W.RACKSPACE.COM Source: IDC/EMC Digital Universe Infographic, 2011
- 19. BIG DATA Skill Requirements RACKSPACE® HOSTING | W W W.RACKSPACE.COM 19
- 20. The Data Scientist “The Sexiest Job of the 21st Century”1 Delivering key customer Skill set: insights from Big Data: Data Acquisition Who are our customers? Analysis Why do they buy from us? Visualization How can we get greater share of wallet? How can we increase “A hybrid of Hacker, purchase frequency? Analyst, Communicator & Trusted Advisor” 1 RACKSPACE® HOSTING | W W W.RACKSPACE.COM 20 Source: Thomas H. Davenport and D. J. Patil, “Data Scientist: The Sexiest Job of the 21st Century,” Harvard Business Review, October 2012
- 21. Competition for the Data Scientist is FIERCE A Decade of Digital Universe Growth 9000 8000 7910 4.4 M needed 7000 6000 3 Million short 5000 544% by 2015 growth 4000 3000 1.4 Million Jobs Filled 2000 1227 1000 130 0 2005 2010 2015 EXABYTES RACKSPACE® HOSTING | W W W.RACKSPACE.COM Source: IDC/EMC Digital Universe Infographic, 2011
- 22. BIG DATA Technologies RACKSPACE® HOSTING | W W W.RACKSPACE.COM 22
- 23. Scale Out Technology…Moving off Big Iron 23 RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 24. How Big Data Works Data Scientist Engineer/DBA • Aggregation • Ad-Hoc • Archive • Transaction of Record • Data Transformation Unstructured Structured HADOOP/ SQL BIG DATA RACKSPACE® HOSTING | W W W.RACKSPACE.COM 24
- 25. Big Data Rackspace Product Solutions RACKSPACE® HOSTING | W W W.RACKSPACE.COM 25
- 26. Big Data Challenges Mismatch with existing Existing technology won’t scale for Big Data infrastructure Higher capital expenses Mandatory rethinking of architecture to avoid (CAPEX) heavy compute & storage investment Higher costs for non- Additional resources to ‘maintain’ hardware strategic resources storage & compute assets Vendor lock-in that • Limiting any future options for updating or limits choices switching suppliers • Even more threatening with the mass of Big Data RACKSPACE® HOSTING | W W W.RACKSPACE.COM 26 Thomas Davenport, Paul Barth and Randy Bean, “How ‘Big Data’ is Different,” MIT Sloan Management Review, 30 July 2012
- 27. Big Data + Cloud “Cloud computing is well-suited to Big Data, since the cloud matches the need for cost-effective mass storage, elastic expandability, and pay-as-you-go pricing.” -MIT Sloan RACKSPACE® HOSTING | W W W.RACKSPACE.COM 27 Source: MIT Sloan: Ibid, Davenport, Barth, and Bean
- 28. OPEN TECHNOLOGY AT WEBSCALE The Power of Open Cloud for Business How to Where to What features deploy deploy to deploy • Run it on any • Deploy anywhere, with • Rapid innovation through hardware platform anybody an active, growing • Public or Private • Hosted or on-premise ecosystem cloud • Provider of your choice • Freedom to alter source • Move workloads code for customization across different OS • Use only features you clouds need • OpenStack is Free RACKSPACE® HOSTING | W W W.RACKSPACE.COM 28
- 29. ONE CLOUD SOLUTION DOES NOT FIT ALL Broad Portfolio + Fanatical Support = Optimized Solution DEDICATED, PUBLIC CLOUD PRIVATE CLOUD PRIVATE CLOUD VIRTUALIZED RACKSPACE CUSTOMER SITE Dedicated / Virtualized: Hosted Cloud: Private Cloud: • Highly Customizable • Highly Scalable • Highest Level Control • Compliance Requirements • Utility Consumption • Leverage Existing • Consistent Performance • On Demand Assets Rackspace Provides Fanatical Support® RACKSPACE® HOSTING | W W W.RACKSPACE.COM 29
- 30. What Covered Today Importance of Big Data to the Enterprise Definition of Big Data Big Data Skill Requirements/Gaps Big Data Technologies & Implementation RACKSPACE® HOSTING | W W W.RACKSPACE.COM 30
- 31. Cloud Application Transformation Framework Creating Your Seamless Journey to the Cloud Taking Enterprises from… “Cloud HOW?” “Cloud NOW” Customer Data Center Application Cloud Solution IT Evolution Migration Environment Profiling Readiness Engineering Workshop Execution Realization Exercise Assessment Engagement Strategize Assess Plan/Build/Deploy On-Going Optimization RACKSPACE® HOSTING | W W W.RACKSPACE.COM 31
- 32. Get SMART on Cloud Rackspace Advisory Services: Recommended Rackspace Resources: Phone: 1-800-440-1249 • Cloud: Vision to Reality whitepaper (right side of page) Email : [email protected] • Cloud: Economics whitepaper (right side of page) Website: rackspace.com/Advisory Services • Take the Cloud Readiness Self Assessment • Use cases: Recommended Industry Resources: – Hybrid Hosting: Dominos Pizza and watch the video – RackConnect™: VEVO and watch the video • The Big Switch, Nicholas Carr – Private Cloud: Lighthouse1 • Cloudonomics: The Business Value of Cloud Computing, Joe Weinman • www.Cloudability.com Rackspace Knowledge • http://gigaom.com/ Center • www.gartner.com • www.forrester.com “Our goal is to create the most • www.idc.com CLOUD SAVVY customers in the industry” RACKSPACE® HOSTING | W W W.RACKSPACE.COM 32
- 33. Q&A RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 34. THANK YOU Rackspace Advisory Services Phone: 1-800-440-1249 Email : [email protected] Website: rackspace.com/Advisory Services 34