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 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.