Cloud Analytics
back to investment strategyData analytics continues to be a cornerstone of corporate digital transformation. Most CEOs agree that data-driven organizations, i.e., those that use data to support decision making, will outperform their peers financially. Specifically, predictive data analytics using modern artificial intelligence (AI) algorithms are becoming a key source of competitive advantage for the leaders of the future.
An additional factor in the growth of data analytics is the sudden shift in corporate and consumer behavior as a result of COVID-19, forcing companies to adapt to an unfamiliar new environment. CEOs are relying on data more than ever to understand what is going on in their businesses and the market. Data-driven decision making is increasingly important for survival, as well as success.
An additional factor in the growth of data analytics is the sudden shift in corporate and consumer behavior as a result of COVID-19, forcing companies to adapt to an unfamiliar new environment. CEOs are relying on data more than ever to understand what is going on in their businesses and the market. Data-driven decision making is increasingly important for survival, as well as success.
Cloud data warehousing
Over 80% of the world’s data is unstructured and growing 30-60% per year according to Gartner. Data capture and analysis are thus becoming paramount business activities. The proliferation of data is accelerating this trend with more and better data driving analytic models. The result is richer insights from performance metrics, customer behavior, product strengths and capabilities, etc. The increasing importance of data also means many more data consumers within the enterprise. We estimate that data warehouse (analytical processing) spend will reach USD 45.2 billion in 2024, having achieved a CAGR of 13% for 2019-2024.
Cloud data warehousing solves many of the problems of on premise installations. The main advantage of cloud-based data warehouses is elasticity. Unconstrained by hardware limitations, the cloud environment for a customer adjusts to the customer’s changing compute demand. Computational power can scale to levels that even the largest on-prem environments cannot match. Data queries and analytics can be orders of magnitude faster than previously possible – even with very large data sets.
Cloud data warehousing solves many of the problems of on premise installations. The main advantage of cloud-based data warehouses is elasticity. Unconstrained by hardware limitations, the cloud environment for a customer adjusts to the customer’s changing compute demand. Computational power can scale to levels that even the largest on-prem environments cannot match. Data queries and analytics can be orders of magnitude faster than previously possible – even with very large data sets.
Cloud analytics
The global cloud analytics market was valued at USD 13.15 billion in 2018 and is projected to reach USD 72.40 billion in 2026. This corresponds to a projected CAGR of 24.3% for 2020-2026. The next phase of growth in cloud analytical processing will come from the broader adoption of artificial intelligence and machine learning (AI/ML) in the enterprise. Infusing software applications with AI/ ML enables the automation and acceleration of data ingestion, processing, and decision making. More value is extracted from data, as insights become faster (near real time) and more accurate. We expect a sustainable increase in software spend for cloud analytics, as companies digitalize manual processes.
We have made the following investments in the cloud analytics segment:
Alteryx is an innovative powerhouse in the cloud data analytics and data automation market with a USD 49 billion estimated TAM. We are convinced that companies that embrace data to make consistently better business decisions will win in the long term.
The company is addressing the growing demand to derive insight from many data sources to enable real-time data-driven decision-making across all aspects of the business. We think Alteryx is a likely winner in this highly fragmented market.
The company is addressing the growing demand to derive insight from many data sources to enable real-time data-driven decision-making across all aspects of the business. We think Alteryx is a likely winner in this highly fragmented market.