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Investment in big data on the decline?


October 14, 2016

It looks like investment in big data is headed for a decline.

Or, at least that’s the message from the folks at Gartner Inc.

According to a recent online survey, conducted in June 2016 by Gartner Research Circle members, companies who plan to invest in big data within the next two years fell from 31% to 25% in 2016.

“Investment in big data is up, but the survey is showing signs of slowing growth with fewer companies having a future intent to invest,” said Nick Heudecker, research director at Gartner in a release.

Heudecker adds the issue isn’t big data itself, but rather how it is being used.

“While organizations have understood that big data is not just about a specific technology, they need to avoid thinking about big data as a separate effort.”

This comes as organizations move away from the traditional model, and begin using big data to support specific business problems.

However, according to the release, only 15% of businesses reported deploying their big data project to production, with the majority of projects stuck at the pilot stage.

And how does this happen?

Big data projects look to be receiving less spending priority than competing IT initiatives, explains Huedecker.

The survey reveals, only 11% of respondents apart of organisations that have invested in big data, said these investments were as important as other IT initiatives.

“This could be due to the fact that many big data projects don’t have a tangible return on investment (ROI) that can be determined upfront,” said Heudecker. “Another reason could be that the big data initiative is a part of a larger funded initiative. This will become more common as the term “big data” fades away, and dealing with larger datasets and multiple data types continues to be the norm.”

The last explanation from Gartner stems from what it calls is a lack of effective business leadership. According to the release, big data projects aren’t created with production-level reliability in mind.

For Jim Hare, research director at Gartner, organizations need to rethink how they utilize big data.

“Industrialization — and the performance and stability guarantees that come with it — have yet to penetrate big data thinking,” said Hare.

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Michael Sutherland-Shaw

Michael Sutherland-Shaw

Marketing Communications Specialist at FreeBalance
Michael works in the marketing and communications department following a career in journalism. Michael is currently learning Ruby on Rails and loves discovering new music.

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