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Rockset 2023 Predictions: Four Predictions for Data Analytics in 2023

vmblog-predictions-2023 

Industry executives and experts share their predictions for 2023.  Read them in this 15th annual VMblog.com series exclusive.

Four Predictions for Data Analytics in 2023

By Dhruba Borthakur, Co-Founder and CTO, Rockset

The world has rapidly been moving towards real-time analytics in the form of applications that process different types of data from multiple sources and automatically initiate specific actions in real time. 2022 was the year of the "real-time revolution," as companies across the globe recognized the value of real-time analytics and deployed cloud-native, real-time data stacks to enhance the performance and efficiency of their product offerings. However, real-time will prove to be more than just a revolution in 2023, but a critical component of business operations that is here to stay.

2023: The Year of the Data App  

In the past ten years we've seen the rise of the web app and the phone app, but 2023 is the year of the data app. Reliable, high performing data applications will prove to be a critical tool for success as businesses seek new solutions to improve customer facing applications and internal business operations. With on-demand data apps like Uber, Lyft and Doordash available at our fingertips, there's nothing worse for a customer than to be stuck with the spinning wheel of doom and a request not going through. Powered by a foundation of real-time analytics, we will see increased pressure on data applications to not only be real-time, but to be fail safe.

Real-Time Data Goes Mainstream

In 2022, we saw strong growth of real-time data analytics as more enterprises realized just how valuable it is, which was just a foretaste of its true potential. 2023 is the year that real-time analytics goes mainstream. We are seeing more and more instances of organizations realizing tremendous benefits of real-time analytics spanning across industries. For example, sporting event organizers are using ticket booking data in real-time to adjust prices and local governments are using real-time traffic patterns to dynamically tune traffic signals. With the current bearish market economy, it's the efficiency and performance of these data systems that will prove to be the key to success. 

Cloud Efficiency Benchmark Wars

Real-time data analytics has become a necessity in 2023, and the efficiency and performance of these cloud data systems is the key to adoption and success. With the current bearish market economy, every business is feeling the need to reassess the cost of these real-time data analytics systems to better understand price-performance. We are seeing more benchmarks competition from data vendors like Snowflake and Databricks to prove its value to customers, and the data systems that can do more with less are the clear winners. In 2023, we will see benchmark wars between cloud data vendors showing one system being more efficient compared to the other.

Rise of Real-Time Machine Learning

With all the real-time data being collected, stored, and constantly changing, the demand for real-time machine learning will be on the rise in 2023. The shortcomings of batch predictions are apparent in the user experience and engagement metrics for recommendation engines, but they become more pronounced in the case of online systems that do fraud detection, since catching fraud three hours later introduces very high risk for the business. In addition, real-time machine learning is proving to be more efficient both in terms of cost and complexity of machine learning operations. While some companies are still debating whether there's value in online inference, those who have already embraced it are seeing the return on their investment and are surging ahead of the competition. 

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ABOUT THE AUTHOR

Dhruba Borthakur 

Dhruba Borthakur is CTO and co-founder of Rockset, responsible for the company's technical direction. He was an engineer on the database team at Facebook, where he was the founding engineer of the RocksDB data store. Earlier at Yahoo, he was one of the founding engineers of the Hadoop Distributed File System. He was also a contributor to theopen source Apache HBase project. Dhruba previously held various roles at Veritas Software, founded an e-commerce startup, Oreceipt.com, and contributed to Andrew File System (AFS) at IBM-Transarc Labs.

Published Tuesday, December 13, 2022 7:34 AM by David Marshall
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