dataweek presentation from chris neumann

BUILDING A SUCCESSFULDATA STARTUP

© 2014 Datahero, Inc.

Chris Neumann | @ckneumann

BUILDINGDATA COMPANIES

IS HARD© 2014 Datahero, Inc.


STARTUPS BEGIN LIKE THIS

DATA STARTUPS ARE ABOUTTIMING


IT’S ABOUT TIMESuccessful data startups recognize

fundamental shifts in technology or business processes

and create solutions that address new pain points


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IT’S ABOUT TIMING• The Data Warehouse market resulted from a need for

businesses to have a “single source of truth”

• The Big Data market resulted from the dramatic increase in data volumes from machine-generated data

• The Cloud BI market is emerging as a result of the decentralization of enterprise data as services move to the cloud


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BIG DATA


BEFORE• Companies generally analyzed relatively

small volumes of (transactional) data

• Larger volumes of data could be stored in data warehouses, but calculations were relatively simple (aggregates, basic business metrics, etc.


THE SHIFT• Machine-generated data, such as from web server logs,

provided far more granular information about customers

• Companies wanted to perform complex analysis on these larger volumes of data in order to better understand customer behavior

– There was also the potential for entirely new businesses built around data


THE CHALLENGE• The volume of structured data companies wanted to

analyze was becoming larger than what could fit in a single server

The rate of growth of data now exceeded the rate of increase of storage density

• This shifted the performance bottleneck to the network


THE SOLUTIONS• First Generation: Fix it with hardware!

– Make servers bigger (Teradata)

– Make the network faster (Netezza)

• Second Generation: Fix it with software!

(Aster Data, Greenplum, Vertica)

– Be smarter about where we store the data

– Be smarter about when we move the data

– Be smarter about how we move the data


THE SOLUTIONSOf the five original “Big Data” startups:

4 were acquired in a span of lessthan a year for more than $2.5B total

The fifth was one of the acquirers


CLOUD DATA


BEFORE• The data business users wanted to analyze was

generated by on-premises software

• Centralized data stores (EDWs) were used to aggregate data from a small number of strategic sources

• BI teams would create reports for business users to access


THE SHIFT• Over the past five years, business software is being

replaced with cloud services, the vast majority of which are departmental

• Company data is no longer stored primarily in on-premises systems, but is increasingly found in the cloud

• For the first time in more than 20 years, company data is becoming decentralized


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THE CHALLENGE• Companies now have a large number of remote data

sources each used by a small number of users

For the first time ever, business users have direct access to their data

• Users now have access to the data they want to work with, but don’t have the tools to take advantage of it


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THE SOLUTIONS• First Generation: Pull the data back!

– Custom integrations to pull cloud data down into on-premises data warehouses

– Put the data warehouse in the cloud…and then pull the rest of the data in (GoodData, Birst, RJMetrics)

• Second Generation: Leave the data where it is!

(DataHero, SumAll)

– Treat cloud business services as the systems of record

– Take advantage of existing security and permission models

– Eliminate the process bottleneck by empowering users to connect directly to the services they need


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DATA DECODER

• Advanced classification algorithms identify and normalize data types across services and files

• Semantic types such as URLs, Email Addresses and Lists extend traditional data types to provide added metadata

• Confidence intervals drive an intuitive feedback interface with users

CUSTOM CONNECTORS

• High-speed connectors built in collaboration with partners for optimal performance

• Robust, extensible framework supports rapid development of new connectors

• Secure integrations leverage partner security models for consistent data visibility

DATA DECODER

EXTENSIBLE CONNECTION FRAMEWORK

CONNECTOR

CONNECTOR

CONNECTOR

THE SOLUTIONS

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THE SOLUTIONSINTUITIVE HTML5 INTERFACE

• Intuitive drag-and-drop interface created through user-centric design process involving thousands of hours of user testing and hundreds of users

“NO CODE” DATA COMBINATIONS

• Intuitive interface enables business users to combine (join) data across services and spreadsheets without coding or SQL

• Recommendation engine suggests common keys based on metadata derived by the Data Decoder

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IDENTIFY THE SHIFT, THEN FIND THE PAIN

POINT


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BE THE PAINKILLER• Every major shift in technology and/or

business process results in new opportunities and new pain points

– Many of those pain points will have easy solutions

– A few will require fundamentally new approaches


SO WHEREARE WE?



[email protected]

@ckneumann

https://twitter.com/ckneumann

https://datahero.com/

dataweek presentation from chris neumann

Data & Analytics