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Budgeting for Big Data

Nov 1, 2012

While there are still some remaining skeptics of the benefits of Big Data, many business executives are balancing their budgets specifically to make room for Big Data projects. The recent NewVantage Partners Big Data Executive Survey showed that 85 percent of executives surveyed from Fortune 1000, companies including American Express, General Electric and JP Morgan, believe in the value of Big Data and analytics and have made it a top priority. The Wall Street Journal CIO Journal’s Clint Boulton recently took a look at the trend and had some interesting observations.

The survey shows that executives are mining data from disparate sources and analyzing it to uncover useful information that will help improve customer experience and sales and, ultimately, establish or maintain a competitive advantage. The insight derived from Big Data can have a big impact on improving business operations, which is why executives are willing to spend a pretty penny on these types of projects.

Big Data has become a big budget item for many companies. Some of the most successful companies in the world are launching multi-million dollar predictive analytics software projects in order to leverage Big Data. A quarter of respondents reported spending more than $10 million on Big Data this year alone; and roughly half of survey respondents reported they are setting aside between $1 million and $10 million for preliminary software projects.

Even now, while people are still unsure of Big Data’s ROI for the enterprise, businesses are investing a great deal of their budgets into these projects. This is a testament to the huge expectations surrounding Big Data and the impact it can have on a company’s bottom line. It will be interesting to see, as the field matures, if this investment holds steady or even grows in the coming years as Big Data projects deliver demonstrate their value.

By Steve Maxwell

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