Big Analytics Roundup (March 30, 2015)

Lots of Spark news this week, following last week’s Sparkalanche, plus some other non-Spark news just to show that Big Analytics isn’t entirely about Spark.

Alteryx

  • In IntelligentHQ, Maria Fonseca interviews Alteryx COO George Mathew, argues that analytics is for people.  Left unanswered: who else it could be for.

Analytic Startups

  • Analytics vendor Ayasdi lands a $55 million “C” round.
  • Localytics, which specializes in analytics for mobile and web apps, secures a $35 million “D” round.

Apache Drill

  • MicroStrategy announces certification of Apache Drill with MicroStrategy Analytics Enterprise Platform.

Apache Spark

Analysis

  • IBM Big Data “evangelist” James Kobelius confirms that IBM has no idea what to do with Spark.
  • In TechRepublic, Matt Asay argues that Hadoop won’t disappear just because it’s slow, knocking over several straw men in the process.   On readwrite, he makes similar points; and on InfoWorld, he goes for the hat trick.
  • In InfoWorld, Platfora’s Peter Schlampp offers five reasons why Spark is the next big thing.

Applications

  • On the Cloudera blog, Sam Shuster of Edmunds.com describes a dashboard built with Spark Streaming, SparkOnHbase and Morphlines.
  • In InfoQ, Srini Penchikala of Pinterest explains why he’s using Spark Streaming, Kafka and MemSQL for a real-time application.

Data Science

  • On the Databricks blog, Joseph Bradley writes an excellent article on Topic Modeling with Spark’s new Latent Dirichlet Allocation capability.

Developer

  • On the Databricks blog, Michael Armbrust describes new Spark SQL features in Spark 1.3
  • On Slideshare, Vida Ha and Holden Karau share tips for writing better Spark programs; video here.

Deep Learning

  • Tomasz Malisiewicz of Vision.ai blogs on Deep Learning versus Machine Learning versus Pattern Recognition.

RapidMiner

  • RapidMiner publishes a white paper on code-free analytics in Hadoop, and another on Hadoop security.

Gartner Advanced Analytics Magic Quadrant 2015

Gartner’s latest Magic Quadrant for Advanced Analytics is out; for reference, the 2014 report is here; analysis from Doug Henschen here.  Key changes from last year:

  • Revolution Analytics moves from Visionary to Niche
  • Alpine and Microsoft move from Niche to Visionary
  • Oracle, Actuate and Megaputer drop out of the analysis
Gartner 2015 Magic Quadrant, Advanced Analytics
Gartner 2015 Magic Quadrant, Advanced Analytics

Gartner changed its evaluation criteria this year to reflect only “native” (e.g. proprietary) functionality; as a result, Revolution Analytics dropped from Visionary to Niche.   Other vendors, it seems, complained to Gartner that the old criteria were “unfair” to those who don’t leverage open source functionality.  If Gartner applies this same reasoning to other categories, it will have to drop coverage of Hortonworks and evaluate Cloudera solely on the basis of Impala.  🙂

Interestingly, Gartner’s decision to ignore open source functionality did not impact its evaluation of open source vendors RapidMiner and KNIME.

Based on modest product enhancements from Version 4.0 to Version 5.0, Alpine jumped from Niche to Visionary.   Gartner’s inclusion criteria for the category mandate that “a vendor must offer advanced analytics functionality as a stand-alone product…”; this appears to exclude Alpine, which runs in Pivotal Greenplum database (*).  Gartner’s criteria are flexible, however, and I’m sure it’s purely coincidental that Gartner analyst Gareth Herschel flacks for Alpine.

(*) Yes, I know — Alpine supports other databases and Hadoop as well.   The number of Alpine customers who use it in anything other than Pivotal can meet in Starbucks at one of the little tables in the back.

Gartner notes that Alpine “still lacks depth of functionality. Several model techniques are either absent or not fully developed within its tool.”  Well, yes, that does seem important.   Alpine’s promotion to Visionary appears to rest on its Chorus collaboration capability (originally developed by Greenplum).  It seems, however, that customers don’t actually use Chorus very much; as Gartner notes, “adoption is currently slow and the effort to boost it may divert Alpine’s resources away from the core product.”

Microsoft’s reclassification from Niche to Visionary rests purely on the basis of Azure Machine Learning (AML), a product still in beta at the time of the evaluation.  Hardly anyone uses MSFT’s “other” offering for analytics (SQL Server Analytic Services, or SSAS), apparently for good reason:

  • “The 2014 edition of SSAS lacks breadth, depth and usability, in comparison with the Leaders’ offerings.”
  • “Microsoft received low scores from SSAS customers for its willingness to incorporate their feedback into future versions of the product.”
  • “SSAS is a low-performing product (with poor features, little data exploration and questionable usability.”

On paper, AML is an attractive product, though it maxes out at 10GB of data; however, it seems optimistic to rate Microsoft as “Visionary” purely on the basis of a beta product.  “Visionary” is a stretch in any case — analytic software that runs exclusively in the cloud is by definition a niche product, as it appeals only to a certain segment of the market.  AML’s most attractive capabilities are its ability to run Python and R — and, as we noted above — these no longer carry any weight with Gartner.

Dropping Actuate and Megaputer from the MQ simply recognizes the obvious.  It’s not clear why these vendors were included last year in the first place.

It appears that Oracle chose not to participate in the MQ this year.  Analytics that run in a single database platform are by definition niche products — you can’t use Oracle Advanced Analytics if you don’t have Oracle Database, and few customers will choose Oracle Database because it has Oracle Advanced Analytics.

 

SAS Misses 2014 Growth Forecast

At the beginning of 2014, SAS EVP and CMO Jim Davis predicted double-digit revenue growth for 2014; in October, CEO Jim Goodnight walked that back to 5%, citing a challenging business climate in Europe.  Today, SAS announced 2014 revenue of $3.09 Billion, up 2.3%.

Meanwhile, IBM reported growth in analytics revenue of 7% in Q4.

The challenge for SAS is that the US market is saturated: virtually every enterprise that ever will use SAS already does so, and there are limits to the number of new products one can add to the stack.  Much of SAS’ growth comes from overseas, and a strong dollar impairs SAS’ ability to sell in foreign markets.

On the positive side, SAS reports a total of 3,400 sites for SAS Visual Analytics, its “Tableau-killer”, compared to 1,400 sites announced last year, for a net growth of 2,000 sites.  (In SAS’ parlance, a “site” is roughly equivalent to a server.)  Tableau has not yet released its 2014 results, but in Q3 Tableau reports that it added 2,500 customer accounts.

SAS also reports 24% revenue growth for its cloud services.   IT analyst Synergy Research Group reports that the cloud market is growing at a 49% annualized rate, although AWS, Microsoft, IBM and Google are all growing much faster than that.

In other news, the WSJ reports that Big Data analytics startup Palantir is now valued at $15 billion, which is about the same as what it would cost an acquirer to buy SAS at 5X revenue.