The age of big data applications comes down to SaaS?

"Editor's note" The writer is one of the CEO and founder of Raj De Datta,bloomreach Corporation.

With a flood of information pouring into the Internet--90% has been built over the past two years--internet companies are looking for ways to familiarize themselves with and use big data to drive their business. Just as SaaS and cloud technology have revolutionized the way businesses operate, so can large data applications (BDA). BDA is a web-based application that provides more intelligent results for their users by interpreting and using a large number of data on the enterprise and network scale.

But the real question is: What if the underlying data structure uses Hadoop and NoSQL? It was in that context that BDA was thrilled that no CEO of a large company was excited about the value proposition of an extensible data structure. BDA is not just repackaging your data, making the interface look cool or improving the efficiency of data scalability by leveraging data from around the world to provide you with better results-for example, to generate more revenue.

SaaS is a different delivery model for enterprise software: it allows for instant registration, dramatically lowers the cost of consolidation, and allows users to try out before they buy, with good scalability. Salesforce.com to change the CRM industry to open the cloud technology changes, and then by many different types of enterprise software to emulate, such as the taleo/successfactors for HR services, The NetSuite company that provides the ERP service and the Omniture company that provides the website data analysis. SaaS increases the size of the business software market while providing better ROI for large companies. But it ignores one important thing-it doesn't change the basic functionality of the core application software. Salesforce does not add a face-to-face Siebel CRM feature for the enterprise-it's just easier to adopt and less costly to maintain.

Companies like Google, Amazon and Facebook have a good understanding of big data on software consumers. Amazon CTO Werner Vogels recently presented a keynote address at CeBIT (the Hannover International information and Communication Technology fair), noting that the failure occurred mainly because there was insufficient data back-up to provide remedial action. As more users and data join the core engine's applications, all of this makes the software more difficult to deal with, more intelligent and more valuable. Now that BDA companies are rising and they're going to be the future, here are some good examples:

LinkedIn is a BDA company that specializes in recruiting talent software markets. Instead of having your contacts in a separate address book, LinkedIn links them all together to connect users, users, and key competitive recruiters. Each user joining Linkedin,linkedin's BDA storage stack receives a signal, which makes it easier for recruiters to master all their data, not just the relatively fragmented data of individual users. With resource sharing, small, professional recruiters can compete with big search firms.

Bazaarvoice is a BDA company focused on social sharing. They collect customer reviews on the web and then offer that information to many websites. Traditional SaaS based approaches have the disadvantage that they simply collect and post customer reviews on separate Web sites. Instead, Bazaarvoice collects information from the entire network to ensure that if a new product is present on the customer's site, the immediate comment will be presented to you so that Bazaarvoice can provide a comparable database of comments for all Amazon.com sellers.

Our own BloomReach company is a marketing-focused BDA company. By analyzing the Web site, we can find the missing information for the site owner, which can bring considerable profits to the site owner. We analyze the needs of all network users, build semantic models across the network for specific users, and then increase the number of outlets based on those that are most relevant to the user. Adobe's Omniture company packs your data in SaaS apps to provide marketing advice to your business, while BloomReach analyzes the site's data and then tries to bring more traffic to the site, which can bring more profits to their customers.

In fact, BDA itself is better than SaaS because it has all the benefits of the SaaS delivery model, as well as the network effects of the data collection process. Over time, unique data can bring network effects to users and application providers, and is a valuable asset. At present, because the enterprise external data is more than the internal enterprise, just because of the data analysis and workflow needs, the idea of repackaging the enterprise's internal data seems a little odd.

BDA's way of creating value is very different from that of SaaS companies. BDA is built by a group of people with a lot of experience in the big system, and they have great attainments in machine learning and data mining, such as my partner Ashutosh Garg. Although Bad and SaaS targets are for the internal enterprise, bad ROI is higher than SaaS because each customer adds data to the engine, which in turn will be used again for these customers, the so-called people, and the people. Currently there are three metrics on the market for SaaS companies: User lifecycle value, customer development cost, and growth rate. There is no doubt that most SaaS companies have a high growth rate, but bad companies are better at life cycle value and developing customer costs.

The revolution in BDA has only just begun, and it is believed to have a wider impact in the future. If we are going to build CRM again, we will not just track the efficiency of the salespeople, we will advise you how to use the entire industry's data to compete with your opponents. If we want to build market automation marketing software (such as Marketo,eloqua), we will not only capture and nurture customer generated clues, we will be throughout the network to find and attract more clues to them. If we build a financial application, it will not only track your company's financial position, but also compare it to your similar listed companies, and you can measure your current situation to decide on the best measures to take.

As with any new technology, the advent of things does not mean the immediate demise of old things, which requires a process of replacement. While Oracle and SAP are still big companies, Salesforce.com is a behemoth with a market value of $2 billion trillion. We have reason to believe that the future belongs to BDA, and it's time to say goodbye to SaaS and meet BDA.

Via TC

(Responsible editor: Mengyishan)