Welcome!

Java IoT Authors: Liz McMillan, Elizabeth White, AppDynamics Blog, Akhil Sahai, SmartBear Blog

Related Topics: @BigDataExpo, Java IoT, Microservices Expo, Containers Expo Blog, Agile Computing, @CloudExpo, Apache

@BigDataExpo: Article

Examining the True Cost of Big Data

As you start on your Big Data journey or project, be sure to ask what exactly the business requires

The good news about the Big Data market is that we generally all agree on the definition of Big Data, which has come to be known as data that has volume, velocity and variety where businesses need to collect, store, manage and analyze in order to derive business value or otherwise known as the "4 V's." However, the problem with such a broad definition is that it can mean different things to different people once you start to put some real values next to those V's.

Let's be honest, Volume can be a different thing to different organizations. To some it is anything above 10 terabytes of managed data in their BI environment and to others it is petabyte scale and nothing less. Likewise velocity can be multi-billions of daily records coming into the enterprise from various external and internal networks. When it really comes down to it, each business situation will be quite different not only from a size and speed perspective but also more important from the business use-case or requirement. A large bank's Big Data problem could be very different to that of an online retailer or an airline. If you compare what say a hospital is trying to do collecting and analyzing all the sensor patient data compared to a utilities provider running a smart-grid or a telecommunications operator. True, all could be categorized as machine generated or raw data but the exact type of data might be different not to mention the volume or growth rate. Probably the one unique common denominator across all aforementioned industries is that everyone is keeping the data for longer time-periods. No one is throwing it away - not even the detailed data.

The Many Cost Factors to Consider
Costs will of course vary depending on the individual allocated IT budget but regardless, how the company allocates IT budget dollars to new Big Data initiatives needs consideration. Let's face it, enterprise buyers didn't suddenly come into a bunch of newfound IT assets or line items on their budget and the current world economic situation would certainly not suggest so. More likely existing budgets are being re-allocated and instead of spending more on say existing traditional data warehouses or appliances, monies are being allocated to new projects running on open source projects including Apache Hadoop which promises both low cost, ease of scale not to mention the obvious best approach to managing and analyzing multi-structured data sets. The difficultly then arises how do you integrate or have your Hadoop environment co-exist with the established BI or DW environment that the business has grown to love and rely upon?

Leverage What You Already Have
Let's assume you have a data warehouse or data mart in place today and you already use various ETL or data movement tools and BI dashboard, analytics or reporting tools and you don't want to disrupt business users which could not only impacting performance levels but also training up on a new set of tools. In fact you already likely beholden to strict SLA's around response times for the various business reports and KPI's. However, at the same time the business is demanding access to new data sets in order to glean better insights either directly analyzing this data or co-mingling it with existing customer data. This could take the form of web-logs, click stream data or social media data from various interactive sites the business is now leveraging and tracking. The promise of impacting profit margins and gaining a competitive edge just cannot be avoided.

As we all know, traditional relational or columnar databases can't handle the unstructured data types so IT needs to rollout a different solution to satisfy the business demands. Evaluations can take many forms but typically will start with which Hadoop distribution, which NoSQL or NewSQL database and what query access tools in addition to MapReduce. It is certainly no easy task as there are a large number of technology solutions on the market today that claim to run on or with Hadoop providing MapReduce or SQL-like capabilities which all satisfy the requirement of managing volumes of unstructured data. Some are more mature than others; some proven and not all are low-cost. Open source on the surface looks very low cost but as soon as you require any level of support, which lets face it once it's live and relied upon as a business critical environment, you will need to allocate a line item on your budget. The Big Data line item won't just be one line as it will need to include all components required to properly rollout a Big Data solution to truly satisfy the business demands. Just like any other IT environment the obvious pieces will include: Software licensing and support, hardware, skilled dedicated resources, professional services and training and the dedicated time of business users to provide input on key requirements including specifying types of reports, queries and analysis which will naturally change and evolve over time.

Big Data Costs Can Quickly Creep Up
In terms of the hardware expenditure required to manage the new Big Data set, you may start out with a Hadoop cluster of say 10 nodes and yes that is certainly manageable but if your data velocity is significant, you can quickly reach 100+ nodes and now you will face a number of other expenses including additional headcount and skilled resources to manage the environment proactively in addition to tools for managing the cluster including system management and alerting and potentially add-on software which can vary by business use-case but might cover real-time analytics against streaming data for say fraud detection or detection of unusual patterns. You may also need a business tool to provide a front-end GUI dashboard to track specific KPIs or data visualization tools so business users can quickly understand what is going on. Very quickly the costs become less about the storage and hardware and more around the software that focuses on getting the most value from this newly collected data set.

There is no denying the fact that Big Data presents great new opportunities but reaching the point of a quantifiable ROI in a fast time frame is still a very real challenge. Everyone is talking about Big Data and all the innovative technology approaches to tackling it but it is still difficult to find lots of business success stories within any one-industry sector. It's still fairly immature but the good news is that its moving at a much faster pace than any other IT project today and certainly our data warehouse and BI forefathers have provided lessons learned over the past two decades.

Big Data Is Big Business but It Comes with Strict Requirements
If we want to examine more closely the main areas of expenditure for a Big Data project, it is probably best to look at it through the lens of a specific type of business and use-case. Let's take a large financial institution that has a number of existing traditional data warehouse / BI environments but because the business doesn't want to throw any data away (well let's face it regulations don't allow that for a number of years) and realistically the business wants to retain specific data sets for ongoing trending and analysis. This includes examining questions such as "what constitutes a low-risk client based on spending behavior patterns over a specific time period cross-referenced with customer demographics" which will help the institution better target a particular segment of the market.

Given the IT budget doesn't allow for increased spend that correlates with data growth rates, they need to seriously reduce costs and so decide to go the route of a Hadoop-based environment given its promise for low-cost scale and the fact that it can provide insights into customer patterns by capturing semi- and unstructured data. Front-ending the warehouse with a dedicated Hadoop cluster is the preferred architectural approach but the business users still want access to both the Hadoop environment and the existing traditional data warehouse environment.

Given we are talking about a financial institution, the question of security and availability quickly come to the top of the requirements list. At the same time, if business users want to access that data, SQL query access and using the current BI tool against that new set of data is also a requirement. If you can avoid having to the move large chunks of data on a frequent basis from one to the other, it will not only reduce costs but also latency. In an ideal world, being able to leverage the skill sets you already have and avoiding duplication of work is key.

Below is a quick table outlining the main cost factors to be considered and a set of comments against each of these areas that could reduce costs.

 

Big Data on Hadoop Cost Factors

Key Consideration to drive down cost

 

Storage

Look at databases that provide data compression to yield storage savings (better than GZip or LZO).

 

Hardware (Nodes)

Granular data compression at database level will reduce nodes over time.

 

Data Analytics - Skilled Resources

Examine technology solutions that provide standard SQL or BI tool access in addition to MapReduce (Pig etc.)

 

Cluster management - Skilled Resources

Leverage existing Dev-operations staff if you deploy a SQL-compliant data environment

 

Security

Look for database solutions that provide built-in security permissions and access.

 

Availability / DR

Consider a data management environment that doesn't require additional tools for replication.

 

Training

Consider solutions where you don't need to retrain or hire all new resources. Leverage what you have (standard SQL-skilled DBAs)

Summary: Consider All Factors and Get Business Buy-in Quickly
Big Data is fundamentally a business problem. If you begin with the question of "what is the business trying to achieve by collecting, storing and analyzing this new set of data...", you will start down the right path to realizing business gains. Whether you outsource the initiative or bring in external consultants and vendors to manage the project, the same questions will arise and in order to leverage what you already have which includes both existing IT environments and skills, you will be better able to contain costs.

Furthermore, we all love the promise of new innovative technologies including Hadoop and MapReduce but without leveraging tried and tested standards we have come to love and respect, it doesn't make a whole lot of sense from both a technical or economic sense. As you start on your Big Data journey or project, be sure to ask what exactly the business requires and how can you leverage what you already have today. We all know, getting business user buy-in and success is half the battle to a successful rollout.

More Stories By John Bantleman

John Bantleman, CEO of RainStor, has more than 20 years’ experience in the management of software companies. Prior to overseeing RainStor, he transformed LBMS into a $45 million business prior to its successful NASDAQ flotation in 1997. Today’s LBMS’ technology is now part of CA’s product portfolio. The following year John was instrumental in the launch of Evolve, and drove the company through to a successful IPO on NASDAQ.

Returning to the UK in 2003, John spent 12 months working on the advisory boards of venture capital organizations such as Apax Partners. He joined RainStor Inc. as Chairman in 2004 and became CEO at the start of 2007 and relocated back to the US to head-up worldwide operations in 2009.

Comments (3) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Vikas.Deolaliker 09/21/12 06:49:00 PM EDT

Great article. Another data point, the IT budget is up only 4% in 2013 over 2012, so don't expect everyone to rush into Bigdata.

The fourth "V" is visualization. If you cannot render the analysis in a intuitive way, there is no value in that analysis. In fact, visualization should be the first step in design of a bigdata system - it helps trim down the architectural bloat into something that is within budget and useful.

Elad Israeli 09/19/12 06:07:00 PM EDT

Fascinating post. Still waiting for someone to crack the nut that is Big Data Analytics.

douglaney 08/29/12 03:36:00 PM EDT

Great piece John. Excellent detail. Thought you and your readers might be interested in where the "3Vs" of big data originated--in a Gartner piece I authored over 11 years ago. I recently unearthed a copy so folks to refer to and cite it.

Cheers,
Doug Laney, VP Research, Gartner, @doug_laney

@ThingsExpo Stories
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.