NVTC is inviting members and industry leaders to serve as guest bloggers, sharing insights and information on trends or business issues relevant to other members. This week on the NVTC blog, Gretchen Frary Guandolo of Clearsight Advisors shares how the opportunity for big data professional services firms has never been greater.
Total big data revenue (software, hardware and services) reached $18.6 billion last year, up from $11.6 billion in 2012 (according to Wikibon), an impressive 58% growth over the previous year. No doubt the big data market is enormous and growing quickly, but one of the main inhibitors to growth is the lack of professional services firms focused around big data. Software, hardware and diversified IT services vendors are all on the hunt for the same target – professional services firms of scale focused on the strategy and implementation of big data projects. Clearsight recently represented Think Big Analytics in their sale to Teradata, a transaction that underscored the skyrocketing demand for big data services. The sale process was highly competitive with bidders from several different market segments. The opportunity for big data professional services firms has never been greater. The drivers behind the strong demand for big data services, include:
- Few IP/tools exist that allow business users to easily implement and access Hadoop data in an uncomplicated, user friendly fashion
- Special knowledge is required to navigate all the privacy/security/compliance moving parts and their implication on big data
- A practitioner of big data is necessary to translate and mediate between all constituents around the table – line of business, c-suite and IT departments – to ensure a successful outcome.
As more companies boast successful Hadoop/big data projects, demand continues to grow, but there remains a divide in the approach to tackling big data projects. Big data consulting firms develop their own IP and toolsets because simple, business user- focused analytic packages accessing Hadoop data are not yet widely available. Software and hardware vendors have a challenging time selling their infrastructure products and deploying Hadoop solutions because their sale process requires a more consultative sale, implementation discipline, and technology skills of a big data consulting firm. The shortage of big data professional services skills is acute. As a result, at Clearsight we expect to see the larger product vendors, IT services firms, ad agencies and many other sectors continue to hunt for acquisition targets to increase their big data services capabilities and address the growing need for big data professional services.