Monday, October 25, 2010

The Future Of BI In The Cloud

Actual numbers vary based on whom you ask, but the general consensus is that the Business Intelligence (BI) and Analytics in the cloud is a fast growing market. IDC expects a compounded annual growth rate (CAGR) of 22.4% through 2013. This growth is primarily driven by two kinds of SaaS applications. The first kind is a purpose-specific analytics-driven application for business processes such as financial planning, cost optimization, inventory analysis etc. The second kind is a self-service horizontal analytics application/tool that allows the customers and ISVs to analyze data and create, embed, and share analysis and visualizations.

The category that is still nascent and would require significant work is the traditional general-purpose BI on large data warehouses (DW) in the cloud. For the most enterprises, not only all the DW are on-premise, but the majority of the business systems that feed data into these DW are on-premise as well. If these enterprises were to adopt BI in the cloud, it would mean moving all the data, warehouses, and the associated processes such as ETL in the cloud. But then, the biggest opportunities to innovate in the cloud exist to innovate the outside of it. I see significant potential to build black-box appliance style systems that sit on-premise and encapsulate the on-premise complexity – ETL, lifecycle management, and integration - in moving the data to the cloud.

Assuming that the enterprises succeed in moving data to the cloud, I see a couple of challenges, if treated as opportunities, will spur the most BI innovation in the cloud.

Traditional OLAP data warehouses don’t translate well into the cloud:

The majority of on-premise data warehouses run on some flavor of a relational or a columnar database. The most BI tools use SQL to access data from these DW. These databases are not inherently designed to run natively on the cloud. On top of that, the optimizations performed on these DW such as sharding, indices, compression etc. don’t translate well into the cloud either since cloud is a horizontally elastic scale-out platform and not a vertically integrated, scale-up, system.

The organizations are rethinking their persistence as well as access languages and algorithms options, while moving their data to the cloud. Recently, Netflix started moving their systems into the cloud. It’s not a BI system, but it has the similar characteristics such as high volume of read-only data, a few index-based look-ups etc. The new system uses S3 and SimpleDB instead of Oracle (on-premise). During this transition, Netflix picked availability over consistency. Eventual consistency is certainly an option that BI vendors should consider in the cloud. I have also started seeing DW in the cloud that uses HDFS, Dynamo, and Cassandra. Not all the relational and columnar DW systems will translate well into NoSQL, but I cannot overemphasize the importance of re-evaluating persistence store and access options when you decide to move your data into the cloud.

Hive, a DW infrastructure built on top of Hadoop, is a MapReduce meet SQL approach. Facebook has a 15 petabytes of data in their DW running Hive to support their BI needs. There are a very few companies that would require such a scale, but the best thing about this approach is that you can grow linearly, technologically as well as economically.

The cloud does not make it a good platform for I/O intensive applications such as BI:

One of the major issues with the large data warehouses is, well, the data itself. Any kind of complex query typically involves an intensive I/O computation. But, the I/O virtualization on the cloud, simply does not work for large data sets. The remote I/O, due to its latency, is not a viable option. The block I/O is a popular approach for I/O intensive applications. Amazon EC2 does have block I/O for each instance, but it obviously can’t hold all the data and it’s still a disk-based approach.

For BI in the cloud to be successful, what we really need is ability for scale-out block I/O, just like scale-out computing. Good news is that there is at least one company, Solidfire, that I know, working on it. I met Dave, the founder, at the Structure conference reception. He explained to me what he is up to. Solidfire has a software solution that uses solid state drives (SSD) as scale-out block I/O. I see huge potential in how this can be used for BI applications.

When you put all the pieces together, it makes sense. The data is distributed across the cloud on a number of SSDs that is available to the processors as block I/O. You run some flavor of NoSQL to store and access this data that leverages modern algorithms and more importantly horizontally elastic cloud platform. What you get is commodity and blazingly fast BI at a fraction of cost with pay-as-you-go subscription model.
Now, that’s what I call the future of BI in the cloud.

1 comment:

Inventory Management Software said...

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