& cplSiteName &

Suppliers Gear Up for Big Data Gold Rush

Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
4/2/2014
50%
50%

The phenomenal growth of data today requires that service providers not only understand big data to decipher the information that counts, but also -- more importantly -- the possibilities of what they can do with it using big data analytics.

Service providers are sitting on terabytes of data that are stored in silos and scattered across the organization. In order to exploit the full potential of this stored data, service providers must have solutions that can help them correlate, process, and decipher nuggets of actionable information.

This is not possible without big data and advanced analytics. For simpler and faster processing of only relevant data, service providers need an advanced analytics-driven big data solution that will help them to achieve timely and accurate insights using data mining and predictive analytics, text mining, forecasting, and optimization capability to continuously drive innovation and help service providers make the best possible decisions.

Operators face an uphill challenge when they need to deliver new, compelling, revenue-generating services without overloading their networks and keeping their running costs under control. The market demands a new set of data management and analysis capabilities that can help service providers make accurate decisions by taking into account customer, network context, and other critical aspects of their businesses. Most of these decisions must be made in real time, placing additional pressure on the operators. Real-time predictive analytics can help leverage the data that resides in their plethora of systems, make it immediately accessible and help correlate that data to generate insight that can help them drive their businesses forward.

Heavy Reading defines big data and advanced analytics as the utilization of hardware and software solutions designed to process large volumes of data (in the range of hundreds of terabytes) to unearth actionable insight. Big data is a combination of both structured and unstructured data coming from text, social media, video, etc. As such, real-time streaming technology and complex event processing technologies are part and parcel of big data solutions.

Heavy Reading expects the big data technology and services market (for the communications service provider sector) to grow from $1.95 billion in 2013 to $9.83 billion in 2020. This represents a total compound annual growth rate (CAGR) of 26%. Breakout CAGR growth between software, hardware and services are: software will grow at 29.3% CAGR; hardware will grow at 22.8% CAGR; and services will grow at 26.8% CAGR.

North America continues to be the biggest spender on big data and advanced analytics. We expect spending in this region to grow from $936 million in 2013 to $4.37 billion in 2020 (24.6% CAGR). EMEA is next, with a spending of $565.5 million in 2013, estimated to grow to $2.97 billion in 2020 (28 percent CAGR). Asia-Pacific follows with $292.5 million in 2013, growing to $1.6 billion in 2020 (26.8% CAGR). Central/Latin America accounted for $156 million in 2013, which will grow to $874.7 million in 2020 (27.9% CAGR).

Our research on big data and advanced analytics -- based on operator interviews, surveys, etc. -- has unearthed some very interesting points. Some of them are highlighted below:

  • The majority of communications service providers across the globe believe that real-time analytics is important to their success and is a critical component of their big data strategy.
  • "Inability to integrate disparate systems and data" and "regulatory concerns" are identified as the top two reasons preventing operators from adopting products and services for big data initiatives. Security concerns and privacy concerns come very close as well.
  • The majority of operators we have interviewed believe that their big data initiative will be fully implemented by 2015.
  • The majority of service providers from all regions predict that it will take one to two years for their company to see increased revenue from its big data and analytics initiatives.
  • Regulatory concerns and the inability to integrate disparate systems of data are the key factors that most service providers feel are preventing their company from adopting products or services for big data initiatives.
  • The quality of data along with business case justification are the biggest challenges that service providers face when trying to implement real-time data analytics use cases.
  • Targeted offer and campaign management, churn prediction and proactive customer care are the top three pain points that operators believe can be resolved by big data and advanced analytics in the next 12-24 months.

Big data and advanced analytics is a major research focus for Heavy Reading. Please look for more reports, market sizing and other information on this topic on the Heavy Reading SPIT Total Access portal.

— Ari Banerjee, Senior Analyst, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Heavy Lifting Analyst Notes
Three strategic initiatives &ndash Novitas, Stratus and Sentio &ndash have powered Colt's move into on-demand services.
Next week at BCE, we'll look at some of the ways machine learning and AI will help operators make the customer experience better, without driving up the cost of network operations.
The Aussie operator is trying to reinvent itself, and its network-as-a-service is a vital piece of the transformation puzzle.
Every network operators business case is different but what remains true is that combining the disciplines needed to get value from data requires a very collaborative organization.
Universal customer premises equipment (uCPE) systems are growing rapidly, paving the way for new opportunities, lowered costs and increased performance overall.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 17, 2018, Chicago, Illinois
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
NFV Is Down but Not Out
Iain Morris, News Editor, 5/22/2018
What VeloCloud Cost VMware
Phil Harvey, US News Editor, 5/21/2018
Trump Denies ZTE Deal, Faces Senate Backlash
Dan Jones, Mobile Editor, 5/22/2018
5G in the USA: A Post-BCE Update
Dan Jones, Mobile Editor, 5/23/2018
Vanquished in Video, Verizon Admits OTT Defeat
Mari Silbey, Senior Editor, Cable/Video, 5/23/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed