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Enterprise Cloud Forum:
“Turning Big Data into Big Dollars”




Presented By:
Rackspace Advisory Services
Your Hosts




    Brian Jawalka                   Anand Bhadouria
    Enterprise Solutions Architect, Enterprise Solutions Architect,
    Cloud Strategy                  Cloud Strategy

    Rackspace Advisory Services     Rackspace Advisory Services
    BJawalka@rackspace.com          Anand.Bhadouria@rackspace.com



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What We Will Cover Today

 Importance of Big Data to the Enterprise
 Definition of Big Data
 Big Data Skill Requirements/Gaps
 Big Data Technologies & Implementation




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Why is BIG DATA so important for
         the enterprise?




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Big Data Importance & Benefits

Better Productivity
Higher Revenues
Better Decision-Making
Innovative Products, Services & Business Models


“The NEW raw material of business: an economic
      input on par with capital and labor.”
                                            - The Economist
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If a median Fortune
                                        1000 business
                                        increased the usability
                                        of its data by only
                                        10%, it would earn an
                                        extra $55,900 per
                                        employee or
                                        $2+ billion a year in
BIG DATA                                added revenue.
                                                                                                                   6
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           “Measuring the Business Impacts of Effective Data, chapter 1,” University of Texas, September 2010, p3
Industries most affected by Big Data

Computers & Electronics    Massive amounts of data with
                            opportunities for:
Entertainment & Media
Finance                     Mining for insights
Healthcare                  Repackaging with new business
                              models
Information Services
Insurance
Retail                     EVERY Enterprise will benefit in:
All levels of Government    Marketing
                             Product Development
                             Customer Service

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Importance of Big Data to Major Retailers

                           Transaction Data Drives
                              Purchase Behavior

                      • Online search engine refinement

                      • Tailored offers aligning to
                        consumer activity


     “… create a click frenzy.”
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Big Data is changing the Healthcare Industry


                  Analyzing Patient Datasets to
                         find patterns…
                   Helping Doctors Save Lives.




 Healthcare


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10% more efficient usage of data pays off



                     $200 Billion SAVINGS per year!1
 Healthcare



                     Increase margins by 60%!1



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                             Source: James Manyika et al, “Big Data: The next frontier for innovation,
                             competition, and productivity,” McKinsey Global Institute, May 2011, pp64, p39
Importance of Big Data to Operations




Customer Data         Logistics Data   Manufacturing Data




     Enhanced Plant
         Operations

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What is BIG
DATA anyway?




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What is “Big Data”


• E-mail & user-generated content          VOLUME
• Social media, B2B Transactions
• Mobile & GPS- equipped phones
• System logs
                                        BIG DATA
• RFID tag sensors                  VELOCITY                VARIETY




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Structured vs.
 Unstructured Data

“80%-90% of today’s data is
     unstructured…”
                              15
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How we measure Big Data Today….
Table 1: Terms Used for Big Data Storage Capacity

      Term                          Size                                             Example of Capacity

                              1,000,000,000                                1 GB = 2 hours of CD-quality audio or 7
   Gigabyte (GB)
                              one billion bytes                                       minutes of HDTV


                            1,000,000,000,000                            1 TB = 2,000 hours of CD-quality audio, or
   Terabyte (TB)
                              one trillion bytes                                   almost 5 days of HDTV


                          1,000,000,000,000,000                                      1 PB = 7 weeks of HDTV,
   Petabyte (PB)
                            one quadrillion bytes                                 or 1.5 million 64 GB iPods full



                        1,000,000,000,000,000,000                                   1 EB = 16 months of HDTV,
   Exabyte (EB)
                            one quintillion bytes                                  or 15 million 64 GB iPods full

                                             Sources: Rackspace, SKATelescope.org, whatsabyte.com
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Exponential Growth

       A Decade of Digital Universe Growth
9000
8000
                                  7910
7000
                                                      So what do you
6000
                                                       do with all of
5000
                                   544%                 this data?
4000                              growth
3000
2000
                      1227
1000
           130
   0
          2005        2010        2015
                     EXABYTES                RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM




                                                Source: IDC/EMC Digital Universe Infographic, 2011
BIG DATA Skill
Requirements



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The Data Scientist
 “The Sexiest Job of the 21st Century”1


 Delivering key customer      Skill set:
  insights from Big Data:      Data Acquisition
Who are our customers?        Analysis
Why do they buy from us?      Visualization
How can we get greater
 share of wallet?
How can we increase         “A hybrid of Hacker,
 purchase frequency?
                            Analyst, Communicator
                              & Trusted Advisor”                                           1




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                                 Source: Thomas H. Davenport and D. J. Patil, “Data Scientist: The Sexiest
                                 Job of the 21st Century,” Harvard Business Review, October 2012
Competition for the Data Scientist is FIERCE
         A Decade of Digital Universe Growth
9000
8000
                                         7910
                                                          4.4 M needed
7000
6000                                                 3 Million short
5000                            544%                    by 2015
                               growth
4000
3000                                                           1.4 Million
                                                               Jobs Filled
2000
                        1227
1000
       130
   0
       2005             2010             2015
                     EXABYTES
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                                                   Source: IDC/EMC Digital Universe Infographic, 2011
BIG DATA Technologies




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Scale Out Technology…Moving off Big Iron




                                 23
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How Big Data Works

        Data Scientist           Engineer/DBA

    • Aggregation           • Ad-Hoc
    • Archive               • Transaction of Record
    • Data Transformation




        Unstructured             Structured




         HADOOP/
                                    SQL
         BIG DATA

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Big Data Rackspace Product Solutions




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Big Data Challenges

Mismatch with existing
                          Existing technology won’t scale for Big Data
   infrastructure

Higher capital expenses   Mandatory rethinking of architecture to avoid
        (CAPEX)           heavy compute & storage investment


 Higher costs for non-    Additional resources to ‘maintain’ hardware
 strategic resources      storage & compute assets


  Vendor lock-in that     • Limiting any future options for updating or
    limits choices          switching suppliers
                          • Even more threatening with the mass of Big Data
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                                               Thomas Davenport, Paul Barth and Randy Bean, “How ‘Big Data’ is
                                               Different,” MIT Sloan Management Review, 30 July 2012
Big Data + Cloud


 “Cloud computing is well-suited to Big Data, since the cloud
  matches the need for cost-effective mass storage,
 elastic expandability, and pay-as-you-go pricing.”
                                                                    -MIT Sloan




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                                                Source: MIT Sloan: Ibid, Davenport, Barth, and Bean
OPEN TECHNOLOGY AT WEBSCALE
The Power of Open Cloud for Business




     How to                Where to                 What features
     deploy                 deploy                   to deploy
• Run it on any         • Deploy anywhere, with     • Rapid innovation through
  hardware platform       anybody                     an active, growing
• Public or Private     • Hosted or on-premise        ecosystem
  cloud                 • Provider of your choice   • Freedom to alter source
• Move workloads                                      code for customization
  across different OS                               • Use only features you
  clouds                                              need
• OpenStack is Free                                     RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
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ONE CLOUD SOLUTION DOES NOT FIT ALL
Broad Portfolio + Fanatical Support = Optimized Solution

         DEDICATED,
                           PUBLIC CLOUD      PRIVATE CLOUD      PRIVATE CLOUD
         VIRTUALIZED




                                RACKSPACE                       CUSTOMER SITE



    Dedicated / Virtualized:        Hosted Cloud:            Private Cloud:
    • Highly Customizable           • Highly Scalable        • Highest Level Control
    • Compliance Requirements       • Utility Consumption    • Leverage Existing
    • Consistent Performance        • On Demand                Assets


      Rackspace Provides
      Fanatical Support®




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What Covered Today


 Importance of Big Data to the Enterprise
 Definition of Big Data
 Big Data Skill Requirements/Gaps
 Big Data Technologies & Implementation




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Cloud Application Transformation Framework
    Creating Your Seamless Journey to the Cloud



                                         Taking Enterprises from…
    “Cloud HOW?”                                                                                   “Cloud NOW”


Customer
Data Center
                               Application      Cloud       Solution
                IT Evolution                                            Migration   Environment
                                Profiling     Readiness   Engineering
                 Workshop                                               Execution    Realization
                                Exercise     Assessment   Engagement


              Strategize                Assess              Plan/Build/Deploy       On-Going Optimization




                                                                                     RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
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Get SMART on Cloud
Rackspace Advisory Services:                        Recommended Rackspace Resources:
Phone:      1-800-440-1249                          • Cloud: Vision to Reality whitepaper (right side of page)
Email :     advisory_services@rackspace.com         • Cloud: Economics whitepaper (right side of page)
Website:    rackspace.com/Advisory Services         • Take the Cloud Readiness Self Assessment

                                                    • Use cases:
Recommended Industry Resources:                       – Hybrid Hosting: Dominos Pizza and watch the video
                                                      – RackConnect™: VEVO and watch the video
• The Big Switch, Nicholas Carr                       – Private Cloud: Lighthouse1
• Cloudonomics: The Business Value of Cloud
  Computing, Joe Weinman
• www.Cloudability.com                                                     Rackspace
                                                                           Knowledge
• http://gigaom.com/                                                       Center
• www.gartner.com
• www.forrester.com
                                              “Our goal is to create the most
• www.idc.com                                     CLOUD SAVVY
                                               customers in the industry”
                                                                                 RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                                                                32
Q&A

      RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
THANK YOU
Rackspace Advisory Services
Phone: 1-800-440-1249
Email :  advisory_services@rackspace.com
Website: rackspace.com/Advisory Services



                                           34

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Enterprise Cloud Forum: Turning Big Data into Big Dollars

  • 1. Enterprise Cloud Forum: “Turning Big Data into Big Dollars” Presented By: Rackspace Advisory Services
  • 2. Your Hosts Brian Jawalka Anand Bhadouria Enterprise Solutions Architect, Enterprise Solutions Architect, Cloud Strategy Cloud Strategy Rackspace Advisory Services Rackspace Advisory Services BJawalka@rackspace.com Anand.Bhadouria@rackspace.com RACKSPACE® HOSTING | W W W.RACKSPACE.COM 2
  • 3. What We Will Cover Today  Importance of Big Data to the Enterprise  Definition of Big Data  Big Data Skill Requirements/Gaps  Big Data Technologies & Implementation RACKSPACE® HOSTING | W W W.RACKSPACE.COM 3
  • 4. Why is BIG DATA so important for the enterprise? RACKSPACE® HOSTING | W W W.RACKSPACE.COM 4
  • 5. Big Data Importance & Benefits Better Productivity Higher Revenues Better Decision-Making Innovative Products, Services & Business Models “The NEW raw material of business: an economic input on par with capital and labor.” - The Economist RACKSPACE® HOSTING | W W W.RACKSPACE.COM 5
  • 6. If a median Fortune 1000 business increased the usability of its data by only 10%, it would earn an extra $55,900 per employee or $2+ billion a year in BIG DATA added revenue. 6 RACKSPACE® HOSTING | W W W.RACKSPACE.COM “Measuring the Business Impacts of Effective Data, chapter 1,” University of Texas, September 2010, p3
  • 7. Industries most affected by Big Data Computers & Electronics Massive amounts of data with opportunities for: Entertainment & Media Finance  Mining for insights Healthcare  Repackaging with new business models Information Services Insurance Retail EVERY Enterprise will benefit in: All levels of Government  Marketing  Product Development  Customer Service RACKSPACE® HOSTING | W W W.RACKSPACE.COM 7
  • 8. RACKSPACE® HOSTING | W W W.RACKSPACE.COM 8
  • 9. Importance of Big Data to Major Retailers Transaction Data Drives Purchase Behavior • Online search engine refinement • Tailored offers aligning to consumer activity “… create a click frenzy.” RACKSPACE® HOSTING | W W W.RACKSPACE.COM 9
  • 10. Big Data is changing the Healthcare Industry Analyzing Patient Datasets to find patterns… Helping Doctors Save Lives. Healthcare RACKSPACE® HOSTING | 10 W W W.RACKSPACE.COM
  • 11. 10% more efficient usage of data pays off $200 Billion SAVINGS per year!1 Healthcare Increase margins by 60%!1 RACKSPACE® HOSTING | W W W.RACKSPACE.COM 11 Source: James Manyika et al, “Big Data: The next frontier for innovation, competition, and productivity,” McKinsey Global Institute, May 2011, pp64, p39
  • 12. Importance of Big Data to Operations Customer Data Logistics Data Manufacturing Data Enhanced Plant Operations RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 13. What is BIG DATA anyway? RACKSPACE® HOSTING | W W W.RACKSPACE.COM 13
  • 14. What is “Big Data” • E-mail & user-generated content VOLUME • Social media, B2B Transactions • Mobile & GPS- equipped phones • System logs BIG DATA • RFID tag sensors VELOCITY VARIETY RACKSPACE® HOSTING | W W W.RACKSPACE.COM 14
  • 15. Structured vs. Unstructured Data “80%-90% of today’s data is unstructured…” 15
  • 16. RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 17. How we measure Big Data Today…. Table 1: Terms Used for Big Data Storage Capacity Term Size Example of Capacity 1,000,000,000 1 GB = 2 hours of CD-quality audio or 7 Gigabyte (GB) one billion bytes minutes of HDTV 1,000,000,000,000 1 TB = 2,000 hours of CD-quality audio, or Terabyte (TB) one trillion bytes almost 5 days of HDTV 1,000,000,000,000,000 1 PB = 7 weeks of HDTV, Petabyte (PB) one quadrillion bytes or 1.5 million 64 GB iPods full 1,000,000,000,000,000,000 1 EB = 16 months of HDTV, Exabyte (EB) one quintillion bytes or 15 million 64 GB iPods full Sources: Rackspace, SKATelescope.org, whatsabyte.com RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 18. Exponential Growth A Decade of Digital Universe Growth 9000 8000 7910 7000 So what do you 6000 do with all of 5000 544% this data? 4000 growth 3000 2000 1227 1000 130 0 2005 2010 2015 EXABYTES RACKSPACE® HOSTING | W W W.RACKSPACE.COM Source: IDC/EMC Digital Universe Infographic, 2011
  • 19. BIG DATA Skill Requirements RACKSPACE® HOSTING | W W W.RACKSPACE.COM 19
  • 20. The Data Scientist “The Sexiest Job of the 21st Century”1 Delivering key customer Skill set: insights from Big Data:  Data Acquisition Who are our customers?  Analysis Why do they buy from us?  Visualization How can we get greater share of wallet? How can we increase “A hybrid of Hacker, purchase frequency? Analyst, Communicator & Trusted Advisor” 1 RACKSPACE® HOSTING | W W W.RACKSPACE.COM 20 Source: Thomas H. Davenport and D. J. Patil, “Data Scientist: The Sexiest Job of the 21st Century,” Harvard Business Review, October 2012
  • 21. Competition for the Data Scientist is FIERCE A Decade of Digital Universe Growth 9000 8000 7910 4.4 M needed 7000 6000 3 Million short 5000 544% by 2015 growth 4000 3000 1.4 Million Jobs Filled 2000 1227 1000 130 0 2005 2010 2015 EXABYTES RACKSPACE® HOSTING | W W W.RACKSPACE.COM Source: IDC/EMC Digital Universe Infographic, 2011
  • 22. BIG DATA Technologies RACKSPACE® HOSTING | W W W.RACKSPACE.COM 22
  • 23. Scale Out Technology…Moving off Big Iron 23 RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 24. How Big Data Works Data Scientist Engineer/DBA • Aggregation • Ad-Hoc • Archive • Transaction of Record • Data Transformation Unstructured Structured HADOOP/ SQL BIG DATA RACKSPACE® HOSTING | W W W.RACKSPACE.COM 24
  • 25. Big Data Rackspace Product Solutions RACKSPACE® HOSTING | W W W.RACKSPACE.COM 25
  • 26. Big Data Challenges Mismatch with existing Existing technology won’t scale for Big Data infrastructure Higher capital expenses Mandatory rethinking of architecture to avoid (CAPEX) heavy compute & storage investment Higher costs for non- Additional resources to ‘maintain’ hardware strategic resources storage & compute assets Vendor lock-in that • Limiting any future options for updating or limits choices switching suppliers • Even more threatening with the mass of Big Data RACKSPACE® HOSTING | W W W.RACKSPACE.COM 26 Thomas Davenport, Paul Barth and Randy Bean, “How ‘Big Data’ is Different,” MIT Sloan Management Review, 30 July 2012
  • 27. Big Data + Cloud “Cloud computing is well-suited to Big Data, since the cloud matches the need for cost-effective mass storage, elastic expandability, and pay-as-you-go pricing.” -MIT Sloan RACKSPACE® HOSTING | W W W.RACKSPACE.COM 27 Source: MIT Sloan: Ibid, Davenport, Barth, and Bean
  • 28. OPEN TECHNOLOGY AT WEBSCALE The Power of Open Cloud for Business How to Where to What features deploy deploy to deploy • Run it on any • Deploy anywhere, with • Rapid innovation through hardware platform anybody an active, growing • Public or Private • Hosted or on-premise ecosystem cloud • Provider of your choice • Freedom to alter source • Move workloads code for customization across different OS • Use only features you clouds need • OpenStack is Free RACKSPACE® HOSTING | W W W.RACKSPACE.COM 28
  • 29. ONE CLOUD SOLUTION DOES NOT FIT ALL Broad Portfolio + Fanatical Support = Optimized Solution DEDICATED, PUBLIC CLOUD PRIVATE CLOUD PRIVATE CLOUD VIRTUALIZED RACKSPACE CUSTOMER SITE Dedicated / Virtualized: Hosted Cloud: Private Cloud: • Highly Customizable • Highly Scalable • Highest Level Control • Compliance Requirements • Utility Consumption • Leverage Existing • Consistent Performance • On Demand Assets Rackspace Provides Fanatical Support® RACKSPACE® HOSTING | W W W.RACKSPACE.COM 29
  • 30. What Covered Today  Importance of Big Data to the Enterprise  Definition of Big Data  Big Data Skill Requirements/Gaps  Big Data Technologies & Implementation RACKSPACE® HOSTING | W W W.RACKSPACE.COM 30
  • 31. Cloud Application Transformation Framework Creating Your Seamless Journey to the Cloud Taking Enterprises from… “Cloud HOW?” “Cloud NOW” Customer Data Center Application Cloud Solution IT Evolution Migration Environment Profiling Readiness Engineering Workshop Execution Realization Exercise Assessment Engagement Strategize Assess Plan/Build/Deploy On-Going Optimization RACKSPACE® HOSTING | W W W.RACKSPACE.COM 31
  • 32. Get SMART on Cloud Rackspace Advisory Services: Recommended Rackspace Resources: Phone: 1-800-440-1249 • Cloud: Vision to Reality whitepaper (right side of page) Email : advisory_services@rackspace.com • Cloud: Economics whitepaper (right side of page) Website: rackspace.com/Advisory Services • Take the Cloud Readiness Self Assessment • Use cases: Recommended Industry Resources: – Hybrid Hosting: Dominos Pizza and watch the video – RackConnect™: VEVO and watch the video • The Big Switch, Nicholas Carr – Private Cloud: Lighthouse1 • Cloudonomics: The Business Value of Cloud Computing, Joe Weinman • www.Cloudability.com Rackspace Knowledge • http://gigaom.com/ Center • www.gartner.com • www.forrester.com “Our goal is to create the most • www.idc.com CLOUD SAVVY customers in the industry” RACKSPACE® HOSTING | W W W.RACKSPACE.COM 32
  • 33. Q&A RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 34. THANK YOU Rackspace Advisory Services Phone: 1-800-440-1249 Email : advisory_services@rackspace.com Website: rackspace.com/Advisory Services 34