Post on 20-Jun-2020
$50 Billion by 2017
Forbes reports that
Big Data will grow
to $50B by 2017,
representing close to
a 60% yearly increase.
50 Billion Nodes by 2020
According to Cisco,
80 things per second
are connecting to
the Internet, and by
2020, 250 things will
connect each second.
50 billion things will
be connected to the
Internet by 2020.
Increasing Volume and Velocity
46% of businesses
consider volume of
information to be
their primary data
challenge.
The physical world itself is becoming an information system. Sensors in physical objects from smartphones to manufacturing equipment to traffic cameras are being networked. The vast streaming data they generate is changing the way businesses think about information and how to use it. The potential is tremendous.
Empowering the Internet of Things with Adaptive Stream Computing
“The Internet of Things will be the biggest point of leverage for IT in the next 10 years, with $14 trillion in profits from that one concept alone.”– John Chambers, CEO, Cisco
• Adaptive Stream Computing will make vast data stores and streams useful with solutions that are easy to integrate and control, providing significant business insight and competitive advantage.
• Companies that harness Big Data in real-time to capture and act on information as it is created will eclipse their competition and transform their industries.
• Solution providers that integrate resident intelligence and control with centralized processing power will dominate their industries by enabling their customers to achieve more than they ever thought possible.
Transforming IndustriesInformation Technology is disrupting business models and creating
new opportunities in a series of dramatic waves. We are currently
seeing the effects of the information revolution progressing from
simple analytics to Big Data. The next step will be the integration
of Stream Computing, culminating in The Internet of Things, and
its economic disruption of entire industries.
The last decade offered the first information revolution.
With more information at their fingertips, managers became
able to make more informed decisions than ever before.
Typically, business information was extracted and analyzed
from structured central repositories and served up in standard
reports or dashboards.
Recently we have seen this model stretched and revolutionized
by the need to accommodate vast levels of data. This shift to
‘Big Data’ technologies has been gaining momentum over the
last 3-5 years and is accelerating.
The Internet of ThingsThe present phase of the information revolution is poised to be
as transformative as the last ones were. The world of ‘things’
is becoming inter-connected – everything from cell phones
to motion sensors are generating vast quantities of real-time
information, and businesses will need to harness that informa-
tion-as-power to thrive in an increasingly competitive landscape.
Stream ComputingStream computing analyzes and acts on data as it is created at
network nodes. These nodes may be anything from Internet
feeds to oxygen monitors, cell phone relays to assembly line
control valves.
Stream Computing is about to meet the Big Data challenge
head-on. Consider the Twitter ‘storm’ analyzing millions of
tweets to cross-reference connections and route trends in
real-time, or Amazon.com tracking popularity of devices
and cross-referencing past purchases to tailor offerings in
real-time.
Importantly, real-time data models are about to move from
the virtual world to the physical one. By taking information
from sensors on physical objects and acting on them instantly,
utilities are building out systems that re-route power within
milliseconds upon outages, while the transportation industry
is looking at ways to reroute shipping based on GPS, weather,
and real-time traffic data.
Completing the Picture: Adaptive Stream ComputingStream Computing of Big Data from the Internet of Things will
need Adaptive Characteristics. To be useful, systems will need
to provide:
• Flexibility to easily create and manage rules that empower
managers rather than data scientists, to the point of
automated feedback and learning;
• Extensibility to blend centralized, decentralized, and hybrid
data models in and out of the cloud transparently;
• Resiliency to retain transactional integrity in real-time
systems under the most demanding conditions; and
• The ability to evolve in real-time to execute changes
automatically and transparently based on changing
conditions in the data stream.
Distributed ModelsFor maximum business value, Adaptive Stream Computing
systems will use several learning and feedback approaches for
different types of networks, different parts of the network,
and different elements within them, including:
• Human to machine rules based logic;
• Human to machine supervised pattern recognition
feedback; and
• Automated machine to machine pattern recognition
adaptation ‘on the fly.'
Above all, systems will need robust error-checking and
recovery capabilities to retain transactional integrity.
Industry DevelopmentAs businesses strive for the advantages of big data, focus
will shift away from the solved problems of data storage and
acquisition, to the more complex problems of advanced data
management. New approaches enabled by Adaptive Stream
Computing will:
• Create transparency, discover needs, expose variability and
improve performance;
• Enhance or even replace human decisions with embedded
automated and semi-automated logic; and
• Innovate new business models, products and services.
This advancement will be generated in the context of widely
blended networks that include everything from machine to
machine communication with zero latency (edge processing)
to batch systems of structured, semi-structured, and
unstructured data in the cloud.
Different industries will drive towards this advancement at
different rates, with the most innovative leading the way.
As industries mature, the most competitive participants will
leverage Big Data and Adaptive Stream Computing in creative
ways for significant gain.
Empowering The Internet of Things with Adaptive Stream Computing
IDC estimates that by 2020, over 400 billion transactions will be performed on the Internet per day.
How BIG is ‘Big Data’?Facebook
Facebook stores and mines over 30 petabytes (30 million gigabytes or 30 billion megabytes) in its systems continuously.
Twitter manages 175 million tweets per day from over 450 million accounts.
Walmart
Walmart handles and archives more than 1 million customer transactions per hour.
Handheld Devices
Handheld devices account for tremendous traffic: over 5 billion people call, text, browse and buy from smartphones.
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The Big Data concept will progress from simply managing data at rest to managing and acting on data in motion.
“As advanced technology becomes more and more prevalent, we have to engage in analysis and diagnosis . . . even more intensively or risk being swamped by the data we generate.” – Peter Drucker
Companies that can effectively act on real-world information will garner a major competitive advantage. Those that harness Big Data in real-time to capture and act on information as it is created will eclipse their competition and transform their industries.
The OpportunityAdaptive Stream Computing is poised to make Big Data
actionable by businesses. Technology companies that can help
their clients transform themselves, and their industries, will
experience dramatic growth.
According to Gartner, most verticals are already investing
heavily in Big Data and Analytics. With the pressures of
product launch windows and time to market shortening in an
ever-accelerating global market, it makes sense that real-time
business data is being recognized for its ability to engender
much greater efficiency and help business managers create
smarter systems and make more informed decisions.
At the same time, the tremendous continued growth of
online business is helping change expectations in all sectors.
Specifically, traditional businesses are eager to replicate online
successes. Amazon’s disruption ofthe publishing industry,
and Apple’s revolutionizing media sales have been important
success stories hinged on the tremendous value of Big Data
and Adaptive Stream Computing. Traditional businesses are
hungry for this type of growth, and aware that if they do not
take active steps to embrace Big Data and Adaptive Stream
Computing, their competition will.
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Winning in the Adaptive Stream Computing SpaceIndustries are gradually gaining awareness of their need for not
only the means to manage vast quantities of business data, but
also the means to make it useful in the context of distributed
networks and machine-to-machine communications. They are
learning quickly that useful systems will:
• Empower Business Managers, not Technicians – The
US Bureau of Statistics predicts a shortage of 100,000-
200,000 IT workers with ‘deep analytical talent’, and
another 1.5 million workers with extensive quantitative
skills, by 2018. Technology companies that want to gain
traction and dominance in the immediate term will need
to empower managers directly without the need for Data
Scientists to act as intermediaries.
• Manage Active Content – Big Data is just the beginning.
Active streams of data generated from the Internet of
Things will create vast volumes of data at high velocity.
Successful systems will manage transactional data from
various incoming systems to make meaningful decisions in
automatic and semi-automatic ways.
• Integrate Edge Computing with Centralized
Intelligence – Node intelligence must provide fast response
times between points in order to make Stream Computing
meaningful. Offerings that want to dominate this market
will manage structured, unstructured and semi-structured
data to automatically make decisions in real-time when
necessary, while leveraging the power, economy, and
efficiency of centralized servers for conditions that are better
served by that model for economic or practical reasons.
“Big data will help to create new growth opportunities and entirely new categories of companies, such as those that aggregate and analyze industrial data. Many of these will be companies that sit in the middle of large information flows where data about products and services, buyers and suppliers, and consumer preferences and intent can be captured and analyzed.” – McKinsey Quarterly Report
“…many companies are (already) implementing new tools for collection, analysis and presentation of treasures buried in big data -- and are reporting impressive ROI as a result. Predictive analytics has jumped to the front of the field as one of the most promising areas of practical application.” – Doug Gonsalves, Innovation Insights, WIRED Magazine
Empowering The Internet of Things with Adaptive Stream Computing Empowering The Internet of Things with Adaptive Stream Computing
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“Big data is going to transform business. It’s not about how, it’s about when.” – Patricia Florissi, Vice President and Global Chief Technology Officer, EMC
Timing the MarketThe opportunity is here today. Large companies are positioning
themselves to participate in the Big Data and Analytics space
with key acquisitions, and the valuation multiples are reaching
double digits of revenue. Examples include:
• IBM acquiring Visimo,
• VMware acquiring Cetas Software,
• Teradata acquiring (merging with) Aster Data , and
• EMC acquiring Greenplum.
Investment companies are also putting skin in the game, with
more than 20 major investments announced in 2013, including
Applied Predictive Technologies raising $100M, Intel’s
investment in Revolution Analytics, and Hortonworks’ $50M
Big Data investment.
Overall, investment capital in Big Data technologies in the
first half of 2013 has increased by more than 87 percent
of the total in all of 2012, and the trend is expected to
continue into 2014 and beyond.
Where will this happen?The need for transactional Big Data is recognized in virtually
every industry that has supply chain, automated control,
or rapid transactional needs. The Internet of Things (also
called The Internet of Everything) will collect streaming
data from cars, appliances, smartphones, monitoring
sensors, and much more:
• Warehousing and Shipping will track goods down to the
individual unit.
• Manufacturing will detect problems proactively to address
problems before they occur.
• Retail will adjust prices on the fly based on instant sales data.
• Transit will reconstruct routes and schedules in real-time.
• Military and Aerospace will manage and deploy resources
based on changing conditions in the field.
Market SizeIDC estimates the global
Big Data market to be over
$6.5B in 2013, rising to $17B
in 2015 and then well over
$48B by 2018. JMP Securities
anticipates that by 2021, Big
Data will account for fully
13% of IT spending globally.
According to Cisco, 50 billion
things will be connected by
2020. Over the next 10 years,
the ‘Internet of Everything’
will create $14.4 trillion of
“value at stake,” the potential
bottom-line value derived by
harnessing this data.
About Bit Stew Systems Inc. & Grid Director™Bit Stew Systems Inc. is a world-leading provider of integrated,
real-time network operations solutions for the utility industry.
Bit Stew’s flagship product, Grid Director, is revolutionizing
the way the utility industry deploys, operates, secures and
optimizes smart grids globally. Grid Director’s game-changing
approach offers customers an in-depth, interactive and
real-time view of their smart grids enabling them to make
more agile and informed decisions that elevate their business
operations. Grid Director provides real-time analytics, dynamic
event management, and quick and easy integration with both
IT and OT systems and applications.
Supporting both IP-based and proprietary networks, Grid
Director is ideal for delivering an enterprise view into large
disparate device based networks, while offering predictive
analytics, pattern recognition, and complex event correlation.
Grid Director is currently in production at several large utilities
in the United States, Canada, and Australia – and is rapidly
becoming the global software standard for electric, gas, and
water utilities. The application is built to concurrently manage
a network of connected devices and has proven scalability to
over one billion end devices – making it an ideal platform for
managing the Internet of Things.
Founded in 2005, Bit Stew Systems is a privately held company
that is headquartered in Vancouver, British Columbia with
offices in Mountain View, California; Toronto, Ontario; and
Melbourne, Australia. Bit Stew is strongly positioned to execute
on its rapid growth strategy that involves both geographic
expansion, and movement into adjacent utility sectors,
further establishing itself as a leader in the smart grid network
technology market.
Looking AheadThe unique and modular approach used by Bit Stew Systems
provides agility and relevance for all kinds of industries that
are beginning to understand the power of Big Data and how
to best leverage it with dynamic control through Adaptive
Stream Computing in the Internet of Things. As such, Bit Stew
Systems is in a unique position with Grid Director:
• Big Data and Stream Computing are fully integrated
by design, rather than being bolt-on adaptations for
traditional software platforms;
• The ‘Data Scientist’ is integrated into product: decision
makers can set rules and metrics with natural language
rather than program interfaces, or they can have the
system teach itself within user-specified parameters;
• A Fit for Purpose architecture does the job that’s needed by
the customer without extras that may never be used, and
the flexibility to add functionality on the fly provides clear
paths for growth; and
• End-point intelligence for autonomous machine-to-machine
communication, embedded analytics and action is built into
the product and integrates with a seamless cloud offering.
“We expect companies that were born digital to accomplish things that business executives could only dream of a generation ago, but in fact the use of Big Data has the potential to transform traditional businesses as well. It may offer them even greater opportunities for competitive advantage.”– Andrew McAfee and Erik Brynjolfsson, Harvard Business Review
Empowering The Internet of Things with Adaptive Stream Computing
Ensuring SuccessBit Stew Systems has a thoughtful strategy to ensure continued
success as it adapts its platform to new industries with:
• A clear value proposition, the ability to prototype
quickly, and a modular approach that will provide quick
proofs-of-concept to industry players. This easy integration
will also provide a thin edge on which the company can sell
a core ability at the outset, and leave the opportunity for a
fuller offering open to the future.
• Partnerships, integration with common platforms,
and targeted hiring or acquisitions that will create
environments where the company is considered an
incumbent rather than a newcomer.
• A flexible and responsive strategy that will prevent
over-investment with a continued focus on the capability
for the technology to adapt quickly to new directions will
ensure that opportunities can be exploited.
With a clear path forward informed by a well-developed and
adaptable strategy, Bit Stew Systems is in a unique position to
deliver on the tremendous promise of the Internet of Things
with Adaptive Stream Computing.
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Bit Stew Systems Inc.Learn more at: www.bitstew.comFollow us on Twitter: @grid_director
BIT STEW and GRID DIRECTOR are trademarks or registered trademarks of Bit Stew Systems Inc.
About the AuthorsDavid Sussman (MBA, PMP) and Tony Mauro (P. Eng) are the principals at Sussman
and Mauro, a marketing strategy firm specializing in industry analysis, strategy
development, and communication in the high-tech sector.
The Sussman and Mauro team have extensive experience, extending from the energy
sector to telecommunications, cloud services, and related industries.
Together, Mr. Sussman and Mr. Mauro bring over 30 years of experience to bear on
business problems. In their employment and contracting careers, they have served
a wide array of companies including TELUS, BC Hydro, BCTC, Nexon, Creo, Kodak,
Corix, and several others. Their approach includes technical, strategic, and marketing
perspectives, enabling them to bring a very unique value proposition to their clients
and partners.
Selected References:http://www.mckinsey.com/insights/business_technology/big_data_the_next_frontier_for_innovation
http://www.ibmbigdatahub.com/blog/big-data-analytics-will-permeate-internet-things
http://www.wired.com/insights/2013/07/without-api-management-the-internet-of-things-is-just-a-big-thing/
http://www.economist.com/node/15557443
http://hbr.org/2012/10/big-data-the-management-revolution/ar/1
http://wikibon.org/wiki/v/Big_Data_Vendor_Revenue_and_Market_Forecast_2012-2017
http://share.cisco.com/internet-of-things.html
http://www.forbes.com/sites/siliconangle/2012/02/17/big-data-is-big-market-big-business/
Commissioned by Bit Stew Systems Inc.
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