The internet of things (IoT) will lead to a sea-change in the way big data analytics is conducted, with increasing emphasis on predictive and prescriptive analytics, according to a new report by Machina Research.
The report finds the emergence of “millions and millions” of connected devices has seen big data analytics shift its focus towards forward-looking data insights, and away from historical data patterns.
“Business and strategic decisions are being augmented with highly operational and predictive/prescriptive analytics, shifting the ground from ‘look at what happened’ to ‘what may happen’ and how best to address those potential scenarios,” the company said.
Enterprises have started to move away from their traditional view of data management and analytics, which has focused on historical and descriptive analytics.
As the IoT market develops, and takes in machine learning, augmented insights and managed autonomy, the report finds the scale, speed, structure, and context of data will undermine the effectiveness of existing big data techniques, and impact how enterprises approach data analytics, and their ability to handle a myriad of data streams.
“One of the more significant developments as part of, and in parallel to, developments in IoT, is the approach of two different ‘waves’ in data management—Big Data and Fast Data,” said Emil Berthelsen, Principal Analyst at Machina Research.
“Both are characterised by scale and speed, and the combination or aggregation of these two waves have led to significant changes and new requirements on data management technologies.”
Earlier this month, Machina forecast that revenues from the IoT are set to top $3 trillion in 2025, up from $750 billion last year.
Investment by industry in big data and business analytics will grow from nearly $122 billion in 2015 to more than $187 billion in 2019, according to a May report by IDC.
The telecoms industry will spend over $10 billion on such products and services in 2019, which will be on a par with counterparts in the government, professional services and retail verticals.