Technology startups specializing in big data are set for extraordinarily lucrative times, according to a new report from Gartner Research.
In news guaranteed to bring a smile to the face of every chief revenue officer and business development associate in the land, Gartner’s research suggests that big data will generate a massive spend on IT, amounting to $232 billion by 2016.
Implicit in this headline figure, however, is the willingness of the venture capital investor community to go on funding big data startups. Last week, Mountain View-based startup Bloomreach announced that it had secured $25 million for its semantics-inspired big data applications, while fellow rising star MongoHG raised a creditable $6 million for its unique database as a service. Meanwhile, the creator of the first SQL-compliant database fashioned specially for Big Data applications, bagged a $4 million investment for its new SQL Engine.
One man’s deep disruption is another’s opportunity
The plethora of well-funded startups in the field of big data is no mere contingency; according to Randy Bias, the Co-founder and Chief Technology Officer of Cloudscaling, the whole market is undergoing a “deep disruption.” The IT model pioneered by leviathans like Amazon, Google and Twitter begins with ultra-efficient datacenters, reaches out to open hardware initiatives such as Open Compute, and then extends into a major transformation.
This technology-driven disruption is manna from heaven to tech startups, because database infrastructures inevitably have to be altered to make use of the new scale out architectures. The transformation of the database market is represented by MongoHQ and other startups like Splice Machine, while Bloomreach shows how the new data infrastructure enables apps to harness the power of scale out systems, going way beyond what existing SaaS applications provide.
Venture capital firms aren’t blind to the transition. The manager of the big data fund at Accel Partners, Ping Li, confirms that the market is driving a broad and diverse need for new database architectures. All of which adds up to one thing: venture capital firms will be investing generously in data infrastructure and big data apps for some years to come.