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E-Book
Understanding in-database
analytics technology:
Benefits, use cases and ROI
Learn all about in-database technology in this E-book, designed to give you a
complete overview of the technology and how it can be leveraged successful-
ly. First, get the basics. Learn how in-database analytics differs from past
approaches and find out why it’s getting so much attention these days as a
game-changing trend. Next, find out more about the trend toward in data-
base analytics. Read why more companies are choosing to leverage this new
technology – and learn more about their ROI and business results.
Sponsored By:
Understanding in-database analytics technology: Benefits, use cases and ROI
Table of Contents
E-Book
Understanding in-database
analytics technology:
Benefits, use cases and ROI
Table of Contents:
Understanding in-database analytics technology: Benefits, uses and ROI
In-database analytics is an emerging practice that experts say can significantly cut the cost and time it takes to do
complex and data-intensive analytic processes.
The first chapter in this E-book on in-database analytics will cover how the practice works and how it differs from
more traditional analytical methodologies. We will also look at recent and developing market trends, such as vendor
support and the emergence of open standards, as well as in-database analytics’ potential for revolutionizing
advanced analytics and business intelligence. The second chapter will discuss the paybacks of in-database analytics
and how to realize them, as well as potential deployment challenges.
In contrast, with in-database analytics, predictive analysis, data mining and other analytic functions reside on the
same centralized enterprise data warehouse. This eliminates I/O-intensive extract, transform and load (ETL) opera-
tions that can consume as much as 75% of cycle time in predictive analysis. It also enables developers to exploit
powerful data warehouse platform technologies like parallel processing.
In-database analytics is one of several recent developments that have made advanced analytics an increasingly
important, and affordable, element of corporate business intelligence (BI) initiatives.
First, a precipitous drop in storage, computing and memory prices has helped fuel the emergence of scaled down,
low-cost database engines, data warehousing platforms and appliances.
Second, many of these platforms support leading-edge computing technologies that enable computing-intensive
applications like advanced analytics to run more efficiently. For example, 64-bit memory enables large volumes of
data needed for predictive analytics to reside in main memory instead of on disk, which eliminates time-consuming
I/O transfers. Parallel processing enables multiple analytic processes to run in tandem. Virtualization enables
companies to allocate computing resources to analytic and database querying functions on a prioritized and as-
needed basis.
Another key factor is the recent emergence of two industry standards for advanced analytics. MapReduce, a
vendor-neutral programmability framework for complex information types, is gaining traction among data ware-
house and advanced analytics solution vendors, according to Forrester.
The second standard, Hadoop, defines an open analytic processing pushdown workflow model and distributed
analytic object-file store. It has growing support from database, data warehouse and cloud computing platform
vendors, according to Forrester.
Once these standards gain broad support from leading players, businesses will have far more flexibility in choosing
(and migrating between) data warehousing platforms.
At least as important, MapReduce and Hadoop can work with unstructured as well as structured data residing in a
database. This will be critical for the next generation of analytic applications, which will be mining the complex
patterns in diverse and distributed information generated by Web 2.0 applications, social networking, clickstream
analysis, and the like, says Forrester Research Director James Kobielus, lead author of the report.
Advanced analytics is potentially useful to many types of organizations pursuing advanced analytics. It’s well-suited
for activities such as targeted response marketing, dynamic pricing analysis and fraud detection and prevention. It
can also help executives who need to know how best to allocate R&D money or security upgrades; or create a
business plan that reacts to projected market changes over the next five years.
Still, it isn’t for everybody, Raden warns. He recommends that companies considering whether to deploy in-data-
base analytics, either as an in-house development platform or to support commercial applications, should ask
themselves the following questions:
• Above all, do you have the corporate culture and the will to make use of the results you obtain?
In other words: “Are you willing to let math algorithms in a computer lead you to do things you didn’t conceive of
yourself, and go against what you’re already doing?” Raden asks. “A lot of companies aren’t there yet.”
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Understanding in-database analytics technology: Benefits, use cases and ROI
Is in-database analytics an emerging business intelligence (BI) trend?
Gartner included advanced analytics as one of the Top Ten Strategic Technologies for 2010 at its recent
Symposium/IT Expo 2009. It’s no wonder, then, in-database analytics has become an important business intelli-
gence (BI) trend , according to many experts.
Once limited primarily to government organizations and large financial services and insurance companies, advanced
analytics is taking off in applications ranging from fraud detection and prevention to targeted marketing to financial
strategy and risk management. In-database analytics has significantly bolstered this BI trend by making such
applications affordable to organizations that can’t afford either supercomputers or on-staff quantitative analysts,
according to Merv Adrian, president of IT Market Strategy.
responding to market
company typically gathers tens of terabytes of market data over a
two-week period. Under the old ETL regimen, the firm’s research analytics
team spent three or four days exporting, transforming, moving and trends in a timely and
distributing chunks of market data in order to gain business insights. effective manner.
By making database functions transparent, in-database analytics enables BI application developers “who don’t know
how to do SQL in a complex way” to create new applications involving complex manipulation of databases, without
having to depend on the expertise of SQL programmers, Adrian noted.
Indeed, in-database analytics has the potential to level the playing field in BI, enabling agile, smaller companies to
compete with the big guys in terms of predicting, identifying and responding to market trends in a timely and
effective manner. Models based on in-database analytics are also more flexible than traditional predictive models,
whose parameters -- once set -- are difficult to change, Raden said. This is critical in today’s business world, where
executives and knowledge workers have to make rapid decisions based on a flood of information from disparate
sources.
In one case, modeling software based on in-database analytics has enabled a telephony service provider to do
online pricing and margin analyses and usage-based micro-segmentation of the subscriber base. Models are
regularly updated on the basis of rated call data records, which are continually collected from the carrier’s global
network.
Furthermore, experts report that consolidating on a single enterprise data warehouse infrastructure can pave the
way to top-down governance of all BI and analytic initiatives. Companies can enforce enterprise guidelines for
development templates, data cleansing and transformation rules, and they can leverage resources across analytic
initiatives enterprise-wide, according to James Kobielus, a research director at Cambridge, Mass.-based Forrester
Research.
However, getting to a place where all analytic initiatives use the same, fresh version of data and consistent models
may require some hefty housecleaning and consolidating of data, not to mention a major reorientation of end-user
and developer mindsets, industry experts cautioned.
Today’s predictive analytic initiatives tend to consist of disparate, project- and application-driven data marts, each
with its own cadre of analysts and specialists and a different set of often-inconsistent data, warned Shaku Atre,
president of Atre Group, Inc. She recommends that companies take a prioritized approach, focusing on key
applications and data, rather than trying to do it all at once.
Be aware, too, that the in-database analytics market is young and volatile, with much of its potential still to be
realized. Leading database and data warehouse vendors are still in the process of incorporating it into their
platforms. Independent software vendors are just beginning to take advantage of the efficiencies of in-database
analytics to develop new BI applications, often in partnership with data warehouse platform vendors.
“This should mean that more packaged analytic applications will become available, which is good news for the many
companies that can’t afford their own in-house quantitative analysts,” Hired Brain’s Raden said. “For example, a
trucking company can buy an application that uses very ‘hairy’ analytics, and trust that it works, because other
people have bought and benefited from it.”
Furthermore, broad industry support of standards such as MapReduce and Hadoop holds the promise of bringing
more flexible deployment of advanced analytic applications, as well as the ability for models to work with
unstructured as well as structured data.
All that said, companies need not wait months or years to start deploying, according to industry experts.
“Look around and see if you have a problem you want to solve and what kind of information you need to solve it,”
Raden said. If it’s an analytical problem involving large quantities of data, developing a model to solve it could be a
lot cheaper and quicker with in-database analytics.
About Sybase:
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