Sunday, April 14, 2013

Big Data and Finance


From at least 2009, Big Data came out in technology industry and became an important theme in their circle, and then, Big Data entered into Wall Street in 2011 to make the financial businessmen to pay attention on it. With the reason that storage costs dropping, CPU costs dropping, bandwidth cost dropping, and network access exploding, there is a big problem for people to know which data is useful and which data is mismatched and incomprehensible, and then, Big Data comes out to help people to fix the problem.

One of the good adopter of Big Data and Data Integration services is financial industry, and of course, healthcare industry, logistics industry, manufacturing industry, military industry, data services bureaus, and casinos are all the adopters of Big Data and Data Integration. Everyone should know that there is treasure in the data and for example, healthcare industry could save three hundred billion dollars with real time data integration, which could be considered as Big Data. Based on these situations, the opportunities from Big Data are not only caught the attention of engineers and technology professionals, but also are taking the interests from the investors to try their best to find out the gold from Big Data, and you could notice that there is no other industries could be eager to get more profits from Big Data than financial industry. The secret of the financial industry prosperity is data, such as, transactions, customer interactions, rate changes, and risk assessment portfolio investments, and so on.

With the rapacious heart, financial industry could seek any methods to put the different kinds of sources of structured and unstructured data together to enhance business intelligence, because they know that the improved business intelligence is able to help you do real time data analytics, and then they could get the ability to make the better decisions with market leading decision making power and insight, with Big Data, the financial industry are trying to develop strong big data architecture to increase value to the business and to use data in real time to use Big Data analyzing method to make a difference. So the investors just pay more attention on Big Data market, and they focus on several companies which could bring the investors big money, such as IBM, EMC, Teradata, Oracle, NetApp, HP, Hitachi’s, Qlik Technologies, and Tibco Software. Among these companies, IBM, EMC and Teradata could be the top name on the Big Data opportunities list. Big Data could help people to organize and analyze a large amount of unstructured data, which could be considered as the information out of the realm of traditional databases, such as email, powerpoint presentations, audio, video and social media. David Goulden, the CFO in EMC, said “ Increasingly, then transformation of business itself is being driven by the ability to harness big data, and business that can quickly use the vast troves of data both inside and outside their companies, can gain competitive advantages, ” in the company’s 2012 fourth quarter conference. There is no doubt that Big Data is a developing and growing field, and JMP Securities make a forecast that the value of Big Data market could increase from nine billion dollars in 2011 to eighty six billion dollars in 2021. IBM has an widespread strategy for catching Big Data opportunity, Charles King, who is the principal analyst at research firm Pund-IT, said “IBM sells standalone Netezza Big Data appliances but is also incorporating them in a broader strategy with its other database, business intelligence and analytics and data management solutions.” Mark Loughridge, who is the CFO of IBM, pointed out that Netezza revenue increased seventy percent year over year, and he said, “We could have done even better on Netezza but we sold out the box, Netezza turned out to be a very, very strong acquisition for us." Based on these, we should notice that Netezza is just one part of IBM’s Big Data plan, but we should see that Big Data makes IBM make more profits in analyzing field business. EMC is another one on the top of Big Data stocks list, and no investors could ignore the significance of EMC’s Greenplum division, Greenplum Unified analytics Platform helps businessmen process structured and unstructured data quickly, and in the same time, help them share the results in different departments in an organization. Teradata is a smart organization to take the good position in Big Data area in a high speed, Greg McDowell, an analyst of JMP Securities, said “ They have been in the big data business for a long, long time, and they are the leading data warehouse vendor.” For taking the good position in Big Data area, Teradata bought Aster Data, a software maker which is good for analyzing unstructured data. All of us know that Silicon Valley could invent future, and the financial industry, especially the stock market know that also, with Big Data, financial industry see the future in their own area.

Big Data is not only a new technology to deal with more and more massive data in the world, but a big opportunity for everyone who wants to get some benefits in the future, to be more familiar with Big Data is not only important for students, researchers, and engineers, but also very important for people who make a living with finance industry to gain more in their career time in the future.


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