78% are planning to increase the use of cloud for BI and data management in the next twelve months.
46% of organizations prefer public cloud platforms for cloud BI, analytics and data management deployments.
Cloud BI adoption increased in respondent companies from 29% to 43% from 2013 to 2016.
Almost half of organizations using cloud BI (46%) use a public cloud for BI and data management compared to less than a third (30%) for hybrid cloud and 24% for private cloud.
These and many other insights are from the BARC Research and Eckerson Group Study, BI and Data Management in the Cloud: Issues and Trends published January 2017 (39 pp., PDF, no opt-in). Business Application Research Center (BARC) is a research and consulting firm that concentrates on enterprise software including business intelligence (BI), analytics and data management. Eckerson Group is a research and consulting firm focused on serving the needs of business intelligence (BI) and analytic leaders in Fortune 2000 organizations worldwide. The study is based on interviews completed in September and October 2016. 370 respondents participated in the survey globally. Given the size of the sample, the results aren’t representative of the global BI and analytics user base. The study’s results provide an interesting glimpse into analytics and BI adoption today, however. For a description of the methodology, please see page 31 of the study.
Key insights from the study include the following:
Public cloud is the most preferred deployment platform for cloud BI and analytics, and the larger the organization toe more likely they are using private clouds. 46% of organizations selected public cloud platforms as their preferred infrastructure for supporting their BI, analytics, and data management initiatives in 2016. 30% are relying on a hybrid cloud platform and 24%, private clouds. With public cloud platforms becoming more commonplace in BI and analytics deployments, the need for greater PaaS- and IaaS-level orchestration becomes a priority. The larger the organization, the more likely they are using private clouds (33%). Companies with between 250 to 2,500 employees are the least likely to be using private clouds (16%).
Dashboard-based reporting (76%), ad-hoc analysis and exploration (57%) and dashboard authoring (55%) are the top three Cloud BI use cases. Respondents are most interested in adding advanced and predictive analytics (53%), operational planning and forecasting (44%), strategic planning and simulation (44%) in the next year. The following graphic compares primary use cases and planned investments in the next twelve months. SelectHub has created a useful Business Intelligence Tools Comparison here that provides insights into this area.
Power users dominate the use of cloud BI and analytics solutions, driving more complex use cases that include ad-hoc analysis (57%) and advanced report and dashboard creation (55%). Casual users are 20% of all cloud BI and analytics, with their most common use being for reporting and dashboards (76%). Customers and suppliers are an emerging group of cloud BI and analytics users as more respondent companies create self-service web-based apps to streamline external reporting.
Data integration between cloud applications/databases (51%) and providing data warehouses and data marts (50%) are the two most common data management strategies in use to support BI and analytics solutions today. Respondent organizations are using the cloud to integration cloud applications with each other and with on-premises applications (46%). The study also found that as more organizations move to the cloud, there’s a corresponding need to support hybrid cloud architectures. Cloud-based data warehouses are primarily being built to support net new applications versus existing apps on-premise. Data integration is essential for the ongoing operations of cloud-based and on-premise ERP systems. A useful comparison of ERP systems can be found here.
Data integration between on-premises and cloud applications dominates use cases across all company sizes, with 48% of enterprises leading in adoption. Enterprises are also prioritizing providing data warehouses and data marts (48%), the pre-processing of data (38%) and data integration between cloud applications and databases (38%). The smaller a company is the more critical data integration becomes. 63% of small companies with less than 250 employees are prioritizing data integration between cloud applications and databases (63%).
Tools for data exploration (visual discovery) adopted grew the fastest in the last three years, increasing from 20% adoption in 2013 to 49% in 2016. BI tools increased slightly from 55% to 62% and BI servers dropped from 56% to 51%. Approximately one in five respondent organizations (22%) added analytical applications in 2016.
The main reasons for adopting cloud BI and analytics differ by size of the company, with cost (57%) being the most important for mid-sized businesses between 250 to 2.5K employees. Consistent with previous studies, small companies’ main reason for adopting cloud BI and analytics include flexibility (46%), reduced maintenance of hardware and software (43%), and cost (38%). Enterprises with more than 2.5K employees are adopting cloud BI and analytics for greater scalability (48%), cost (40%) and reduced maintenance of hardware and software (38%). The following graphic compares the most important reason for adopting cloud BI, analytics and data management by the size of the company.
Deutsche Bank estimates AWS derives about 15% of its total revenue mix or has attained a $1.5B revenue run rate in Europe.
AWS is now approximately 6x the size of Microsoft Azure globally according to Deutsche Bank.
These and other insights are from the research note published earlier this month by Deutsche Bank Markets Research titled AWS/Cloud Adoption in Europe and the Brexit Impact written by Karl Keirstead, Alex Tout, Ross Sandler, Taylor McGinnis and Jobin Mathew. The research note is based on discussions the research team had with 20 Amazon Web Services (AWS) customers and partners at the recent AWS user conference held in London earlier this month, combined with their accumulated research on public cloud adoption globally.
These are the five ways Brexit will accelerate AWS and public cloud adoption:
The proliferation of European-based data centers is bringing public cloud stability to regions experiencing political instability. AWS currently has active regions in Dublin and Frankfurt, with the former often being used by AWS’ European customers due to the broader base of services offered there. An AWS Region is a physical geographic location where there is a cluster of data centers. Each region is made up of isolated locations known as availability zones. AWS is adding a third European Union (EU) region in the UK with a go-live date of late 2016 or early 2017. Microsoft has 2 of its 26 global regions in Europe, with two more planned in the UK. Google’s Cloud Platform (GCP) has just one region active in Europe. The following Data Center Map provides an overview of data centers AWS, Microsoft Azure and GCP have in Europe today and planned for the future.
Brexit is making data sovereignty king. European-based enterprises have long been cautious about using cloud platforms to store their many forms of data. Brexit is accelerating the needs European enterprises have for greater control over their data, especially those based in the UK. Amazon’s planned third EU region based in London scheduled to go live in late 2016 or early 2017 is well-timed to capitalize on this trend.
Up-front costs of utilizing AWS are much lower and increasingly trusted relative to more expensive on-premise IT platforms. Brexit is having the immediate effect of slowing down sales cycles for managed hosting, enterprise-wide hardware and software maintenance agreements. The research team found that the uncertainty of just how significant the economic impact Brexit will have on the European economies is making companies tighten capital expense (CAPEX) budgets and trim expensive maintenance agreements. UK enterprises are reverting to OPEX spending that is already budgeted.
CEOs are pushing CIOs to get out of high-cost hardware and on-premise software agreements to better predict operating costs faster thanks to Brexit. The continual pressure on CIOs to reduce the high hardware and software maintenance costs is accelerating thanks to Brexit. Because no one can quantify with precision just how Brexit will impact European economies, CEOs, and senior management teams want to minimize downside risk now. Because of this, the cloud is becoming a more viable option according to Deutsche Bank. One reseller said that public cloud computing platforms are a great answer to a recession, and their clients see Brexit as a catalyst to move more workloads to the cloud.
Brexit will impact AWS Enterprise Discount Program (EDP) revenues, forcing a greater focus on incentives for low-end and mid-tier services. Deutsche Bank Markets Research team reports that AWS has this special program in place for its very largest customers. Under an EDP, AWS will give price discounts to large customers that commit to a full year (or more) and pay upfront, in many cases with minimum volume increases. One AWS partner told Deutsche Bank that they’re aware of one EDP payment of $25 million. In the event of a recession in Europe, it’s possible that such payments could be at risk. These market dynamics will drive AWS to promote further low- and mid-tier services to attract new business to balance out these larger deals.
13 of the hottest 34 cloud-based marketing startups are from the Bay Area, followed by Los Angeles with 3, and Bangalore and New York, both with 2.
14 are in Pre Series A, 7 in A-Stage, 5 in B-Stage and 3 in C-Stage funding rounds.
These and other insights are from a quick analysis completed today using Mattermark Pro, in response to reader requests for more research on marketing startups.
Mattermark uses a combination of artificial intelligence and data quality analysis to provide insights into over 1 million private companies, over 470,000 with employee data, and over 100,000 funding events. In the interest of full disclosure I’m not today and have never done any consulting work of any kind with Mattermark.
Finding The Hottest Cloud-based Marketing Startups
To find the hottest cloud-based marketing startups, an initial query requesting startups competing in the cloud computing and marketing industries was completed. Next, advanced query tools in Mattermark Pro were used to filter out all startups that had exited as indicated by their stage status in Mattermark’s data. This filtered out startups who had been acquired, completed an IPO or had exited through other means. The table below is the result of an analysis completed today with Mattermark data. You can download the table here in Microsoft Excel format.
The Mattermark Growth Score shown in the table below and downloadable Excel file is a measure of how quickly a company is gaining traction at a given point in time. It incorporates the Mindshare Score (web traffic, social traction) as well as business growth metrics (e.g. employee count over time, funding). The underlying assumption is that companies who see growth across these signals are shipping product and talking to customers, and are more likely to continue to grow as a result. This score is not meant to provide guidance on which startup to invest in. Rather it’s a measure of momentum across the metrics and KPIs that Mattermark measures.