Organizations are investing more in data analytics during the pandemic, a paper from West Monroe shows. A recent survey by KPMG agrees; the polling of C-suite executives found that data and analytics platforms are the most common new technology to be adopted, with 21% of respondents reporting the piloting of AI and machine learning solutions.
Driving the trend is a growing realization that AI can help enterprises maximize returns on investments in tech, mining the most insights from data. For example, AI can be used to spotlight parts of a website customers are likely to pay attention to, or help inform retailers about what their customers are likely to purchase.
A positive trend to come out the pandemic was that organizations recognized that data was so important, Sandy Carter, VP of worldwide public sector and programs at Amazon, told VentureBeat in a phone interview. A lot of them came to the realization that they needed more insights in order in order to make the right decisions.
How analyzing data can help
Indeed, most organizations have to wrangle countless data buckets some of which have long gone underused. A Forrester surveyfound that between 60% and 73% of all data within corporations is never analyzed for insights or larger trends.The opportunity cost of this unused data is substantial, with a Veritasreport pegging it at $3.3 trillion by 2020. Thats perhaps why organizations have taken an interest in solutions that ingest, understand, organize, and act on digital content from multiple digital sources.
Much of these analytics workloads are being processed in the cloud, which offers flexibility in how and when they can be executed. IDG reports that the average cloud budget is up from $1.62 million in 2016 to a whopping $2.2 million today. A Lemongrass survey found that IT leaders were motivated to migrate systems by desires to secure data, maintain data access, save money, optimize storage resources, and accelerate digital transformation.
Carter gave the example of Splunk, which worked with the City of Los Angeles to build a data analytics solution for its over 40 different agencies. The city wanted to take the 240 million records they create daily and use it to correlate along with other city data to gain insights. Specifically, they wanted to evaluate cyber threats,
Hacks and breaches have surged in the past year, due in large part to the pandemic. Canalys found that more records were compromised from March 2020 to March 2021 than in the previous 15 years combine. In one scary example, in February hackers attempted to poison a Florida city water supply by remotely accessing a server. And in 2015 and 2016, cyberattacks caused large-scale power outages in Ukraine.
With the help of Splunk and Amazon Web Services (AWS), Carter says that the City of Los Angeles is now able to evaluate 100 million threats each month using analytics, and to share the data throughout all 40 of its agencies.
Benefits and barriers
Challenges for some organizations continue to present barriers to adopting data analytics, however. Respondents to the Lemongrass survey reported pegged security and compliance as the top issues facing enterprises when moving legacy systems to the cloud. Separate research by Alatian and Wakefield Research found that data quality issues contributed to failed implementations of AI and machine learning.
Carter says that one AWS customer, U.S. Citizenship and Immigration Services, suffered from a lack of awareness of what AI and data might bring to the table. The U.S. Department of Homeland Security agency, which administers the countrys naturalization and immigration system, expressed an eagerness to apply machine learning models to its data but without specific goals in mind. With the help of Amazon, the agency determined which insights might be useful to its employees, like the percentage of likely no-shows to appointments and the number of next-year applications.
Successful migrations to the cloud can lead to a wealth of benefits, surveys show. For example,accordingto OpsRamp, the average savings from cloud migration come to around 15% on all IT spending. Small and medium businesses benefit the most, as they spend 36% less money on IT that way. Moreover, 59% of companies report an increase in productivity after migrating apps and service to the cloud, Microsoftsays.
If youre going to use analytics and youre going to use machine learning, the cost structure, on-demand, and agile nature of the cloud makes sense, Carter said. A lot of organizations hustled to get their data to the cloud, because they knew that without building, storing, and managing that in a data lake, use of analytics and machine learning would be would be inhibited.
Thanks for reading,
AI Staff Writer
VentureBeat’s mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact.
Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more