By Werner Herbst, General Manager: Enterprise Compute
It’s 2023 and every organisation – from start-ups to global entities – is focusing on achieving growth through operational efficiency, productivity, and resilience.
Data will play a key role in meeting these objectives and we expect companies to focus on optimising data usage, analytics and infrastructure to drive improved decision making and operations. This implies that the data industry will continue to grow at an unprecedented rate.
Data-as-a-service set to explode
Real-time data and analytics will set organisations apart
Data Clean Rooms will become vital
There will be a greater push for data democratisation
Data governance will continue to expand
Similar to software-as-a-service, data-as-a-service (DaaS), is a data management strategy that delivers storage, integration, processing, and analytics via the cloud from any location, at any time.
According to Technavio, the global data-as-a-service market is projected to grow by $56.85 billion from 2022 to 2027, at a compound annual growth rate of 36.92% over this period. Companies that offer financial services are likely to grow at the highest rate.
One of the key factors driving the market is the growing amount of data. More than 200 zettabytes of data will be stored in the cloud around the world by 2025, according to estimates. In addition, the growing volume of data generated in organisations has compelled them to use DaaS to save money. DaaS-related technologies have also helped organisations to transform unstructured and semi-structured data into structured and meaningful data.
In 2023, the focus on real-time data analytics will grow as businesses put in place strategies to gain a competitive edge. Predictions are that “real time" will become even more real time as businesses realise the potential of real-time data analytics.
"As adoption of real-time analytics technology grows, companies will benefit from turning their data into immediately actionable insight. Streaming data from e-commerce purchases, geo-location tracking, website activity and more will be used to generate insights while it is in the stream, instead of being stored and analysed in batches."
This will enable companies to use real-time data analytics to predict customer behaviour, make better business decisions, improve reaction time, create more intelligent products and services, and automate business processes even more accurately. Those that believe their existing real-time technology is sufficient for their needs will fall behind or lose their competitive edge.
With third-party cookies being blocked at every turn, advertisers and marketers that collaborate with third parties will share sensitive data and intellectual property in distributed data clean rooms – a technology service that helps content platforms keep user data private when interacting with advertising providers.
The technology prevents any user-level data from being accessed outside, ensuring that it stays within the data clean room and isn’t shared with anyone else. With safeguarding data privacy and adhering to regulatory compliance at the top of every company’s agenda, we can expect data clean room adoption to experience rapid growth.
Data democratisation is the process of enabling everybody in an organisation, irrespective of their technical know-how, to work confidently with data and to make data-informed decisions that improve customer experiences.
We are likely to see a greater push for data democratisation as every data-driven company begins to realise the need to make data and analytics tools accessible to more users if they are aiming to achieve company-wide insights. These companies will realise that they need additional data tools, known as a modern data stack, to cater to the needs of the entire organisation.
If data is the new oil, it makes sense that businesses are seeking to optimise the value of their data. As a result, data governance will continue to grow in importance. The management and governance of data throughout its lifecycle is based on principles, policies, and processes designed to ensure that data is accessible, safeguarded, and reliable.
Data governance protects the company’s reputation by ensuring it is compliant with regulations. Moreover, it protects the company’s assets by maintaining control over the use of data across all departments in an organisation. A successful data governance strategy improves decision-making, operational efficiency, and business intelligence. It also ensures data quality, prevents fraud and compliance breaches and enhances data security across the organisation.
References:
https://www.technavio.com/report/data-as-a-service-market-industry-analysis
https://www.techtarget.com/searchenterpriseai/opinion/Data-analytics-and-AI-predictions-for-2023
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