Technology Driving Growth. Kotak Investor Conference

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Overview presentation about technology driving growth at the Kotak Investor Conference in Mumbai on February 3, 2012.

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Technology Driving Growth. Kotak Investor Conference

  1. 1. Technology Driving Growth Anand Deshpande February 3, 2012February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 1
  2. 2. Computers as we know them are history!February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 2
  3. 3. s m o b i l e c i The technologies that a drive the consumer c l o u d web are moving to the a enterprise.February 3, 2012 t a p p s © 2012 Persistent Systems Ltd www.persistentsys.com 3
  4. 4. How many toothbrushes are sold in the world last year?February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 4
  5. 5. How many toothbrushes are sold in the world last year?February 3, 2012 Source 1: 1.2 Billion Source 2: 3.2 Billion © 2012 Persistent Systems Ltd www.persistentsys.com 5
  6. 6. Rethinking the user …February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 6
  7. 7. Mobile devices are getting main stream in the Enterprise  Enterprises are opening up to Smartphones ‘bring your own device’ culture Mobilized legacy Tablets applications  Tablet is becoming the ‘device of Hardened choice’ for enterprises Handsets Application  iOS and Android are a ‘must Scenarios Enterprise New have’ to reach end customers. Building task Win7 … still in the wait andFebruary 3, 2012 specific Apps that mobile apps leverage watch mode. mobility © 2012 Persistent Systems Ltd www.persistentsys.com 7
  8. 8. Tablets are driving a change in the Enterprise Primary DeviceFebruary 3, 2012 With Tablets as the primary device, HTML5 will be the default environment © 2012 Persistent Systems Ltd www.persistentsys.com 8
  9. 9. Apps apps everywhere!February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 9
  10. 10. Proliferation and wide deployment of 4G networks will lead to the Internet of things “Soon, almost every device will have a wireless chip and it will be the driver for Machine 2 Machine Dan Hesse communications. Certain verticals such as medical Chief Executive Officer equipment will see the earliest impact of these M2MFebruary 3, 2012 Sprint Telecom connections.” © 2012 Persistent Systems Ltd www.persistentsys.com 10
  11. 11. Putting Kinect Technology to WorkFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 11
  12. 12. To summarize • Mobile devices are getting mainstream. The CIOs have to support them. • Tablets are driving mobile deployment. HTML5 will be the de-facto UI standard. • Video is the new voice. • Mobile computing will provide the network layer for sensors.February 3, 2012 • Sensors will generate large amounts of data. Must find ways to deal with large volumes of data. © 2012 Persistent Systems Ltd www.persistentsys.com 12
  13. 13. Technology Driving Growth Anand Deshpande February 3, 2012February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 13
  14. 14. What do the users want to do when they go on-line?February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 14
  15. 15. February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 15
  16. 16. Facebook gets 2.7 billion clicks of its "like" button every dayFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 16
  17. 17. Facebook IPO 2012 • Facebook is an advertising company. Of its total revenues of $3.7bn in 2011, 85% came from advertising. And that is down from 98% and 95% in the previous two years. • The company makes $1bn in pure profit. • Facebook has a total of 845 million monthly users and 483 million daily users. • Of its monthly users, half have used Facebook on their mobile. (But there are no ads on its mobile site, so it makes no money from them.)February 3, 2012 • The majority of its money comes from the US, but the majority of the users are outside the country. © 2012 Persistent Systems Ltd www.persistentsys.com 17
  18. 18. Facebook IPO • Google going IPO made $1.67 billion, Facebook is projected to be at $10 billion. • Facebook’s IPO will be the biggest of any tech company in history, 6x bigger than Google’s. • Only 3 US companies have had $10+ billion IPO’s, AT&T, GM, and Visa– • If Facebook raises $100 billion, Mark Zuckerberg will rake in $25 billion. That’s equal to $50 from each of his daily users. • Even though it’s 4th in daily visitors, Facebook is 1st in ad revenue –February 3, 2012 • More than 1 in 10 people on Earth use Facebook © 2012 Persistent Systems Ltd www.persistentsys.com 18
  19. 19. Social Networking in the EnterpriseFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 19
  20. 20. eMee: Employee Engagement Portal virtual “gifts” representing a “patFebruary 3, 2012 on the back” encourages high performance and fosters team spirit © 2012 Persistent Systems Ltd www.persistentsys.com 20
  21. 21. the “den” creates a sense of belonging and provides an outlet for hobby groups and shared interestsFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 21
  22. 22. To summarize • Social networking caused major revolution in the Arab world. • Consumer Social Networking has started driving commerce. More compelling than search based advertisements. • What we have learned from consumer social networking will move to the enterprises.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 22
  23. 23. Technology Driving Growth Anand Deshpande February 3, 2012February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 23
  24. 24. Cloud computing is the platform for next generation of IT innovation.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 24
  25. 25. February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 25
  26. 26. What is driving the adoption of cloud computing? Economics.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 26
  27. 27. What is driving the adoption of cloud computing? Economics. • Illusion of infinite resources • No up-front cost • Fine-grained billing (e.g. hourly)February 3, 2012 • Utility Computing: Pay-as-you-go computing promises substantially reduced cost. © 2012 Persistent Systems Ltd www.persistentsys.com 27
  28. 28. We are grossly over-provisioned Capacity • Capacity includes: • Computer Servers Resources • Storage Demand • Software Licenses • Network bandwidth Time • Energy Static data center • Air ConditioningFebruary 3, 2012 Unused resources • Rent • Maintenance Costs Slide Credits: Berkeley RAD Lab • Operator Staff © 2012 Persistent Systems Ltd www.persistentsys.com 28
  29. 29. Heavy penalty for under-provisioning: Poor quality of service – lost customers. Resources Capacity Demand Resources Capacity 1 2 3 Time (days) Demand Lost revenue 1 2 3 Resources Time (days) CapacityFebruary 3, 2012 Demand 1 2 3 Time (days) Slide Credits: Berkeley RAD Lab Lost users © 2012 Persistent Systems Ltd www.persistentsys.com 29
  30. 30. Ideally, want optimal provisioning of capacity across all resources. Capacity Resources Resources Demand Capacity Time Demand Static data center Time Resources Data center in the cloud CapacityFebruary 3, 2012 1 2 3 Demand Pay-per-use Time (days) Slide Credits: Berkeley RAD Lab business models © 2012 Persistent Systems Ltd www.persistentsys.com 30
  31. 31. By operating at scale, improving utilization, simplifying operations, standardizing, increasing reliability, reducing energy and cooling • hardware costs can be reduced 33-70 percent • maintenance costs can be reduced up to 50 percent • support costs can be reduced by as much as 33 percent • floor space/facility costs can be reduced 33-50 percentFebruary 3, 2012 http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html © 2012 Persistent Systems Ltd www.persistentsys.com 31
  32. 32. Advantages of Cloud Computing Agility Cost Device and Scalability Location IndependenceFebruary 3, 2012 Multi-tenancy Security Maintenance Metering © 2012 Persistent Systems Ltd www.persistentsys.com 32
  33. 33. Challenges for Cloud Computing Privacy Compliance Legal Open sourceFebruary 3, 2012 Open standards Security Availability and Sustainability performance and siting © 2012 Persistent Systems Ltd www.persistentsys.com 33
  34. 34. Cloud Computing: Why Now? Business factors Economies of Scale in Technology factors Clean Slate Approach • Minimal capital the Data Center • Pervasive broadband • Multi-tenancy expenditure • Experience of operating Internet • Challenging the status- • Pay-as-you-go billing data centers efficiently • Maturity in Virtualization quo model TechnologyFebruary 3, 2012 Business challenges will accelerate the adoption of cloud computing. © 2012 Persistent Systems Ltd www.persistentsys.com 34
  35. 35. To summarize • Enterprises will move to the cloud – this is inevitable. • The speed of enterprises’ movement to the cloud will depend on the peer group and will be driven by CEOs/CFOs comparing savings on the balance sheets of their peers. • This is not a technical decision. • Unfortunately, the vendors and the eco-system to migrate to the cloud are not entirely ready. • The cost of migrating/running legacy systems is not accurately factoredFebruary 3, 2012 in and will be a big impediment. © 2012 Persistent Systems Ltd www.persistentsys.com 35
  36. 36. Technology Driving Growth Anand Deshpande February 3, 2012February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 36
  37. 37. Infrastructure is moving to the cloud … applications are next! Data will move with the applications.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 37
  38. 38. Data on the cloud will enable new data-centric business models.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 38
  39. 39. 5 Exabytes of information was created between the dawn of civilization through 2003, but that much information is now created every 2 days, and the pace is increasing Eric Schmidt,February 3, 2012 Google CEO, (1 exabyte = 1018 bytes ) at the Techonomy Conference, August 4, 2010 © 2012 Persistent Systems Ltd www.persistentsys.com 39
  40. 40. Enterprise’s data isFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 40
  41. 41. BIG DATA: Why this BUZZ di?February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com www.persistentsys.com 41
  42. 42. Summary: Internet Technologies are coming to the Enterprise • Relational Databases have successfully created a $100 Billion dollar/year industry. Relational databases manage 100s of TB of structured data in the enterprise well. • Beyond structured data, today’s enterprise must manage large, ever growing quantities of unstructured data and public data to derive insights. This data is not being leveraged for decision making. • Data management techniques created and perfected by Internet Companies are ready for enterprise use.February 3, 2012 • This confluence of distributed internet-based data management systems with relational systems is making it possible to derive insights from large volumes of diverse data sources in the enterprise. © 2012 Persistent Systems Ltd www.persistentsys.com 42
  43. 43. Summary: Time to setup Data Stack 3.0 • Enterprises traditionally have two data stacks: • Data Stack 1.0: Operational Data Store • Data Stack 2.0: Enterprise Data Warehouse • Despite the two data stacks, more than 70% of enterprise data is not “accessible” for analytics and decision making. • This is because large amount of enterprise data is: • Unstructured – variety • Large Quantities – volumeFebruary 3, 2012 • Real-time – velocity • Time to establish Data Stack 3.0 • Data Stack 3.0: Big Data Stack © 2012 Persistent Systems Ltd www.persistentsys.com 43
  44. 44. Data Stack 1.0: Relational Database Systems for Operational Store • Transaction processing capabilities ideally suited for transaction-oriented operational stores. • Data types – numbers, text, etc. • SQL as the Query language • De-facto standard as the operational storeFebruary 3, 2012 for ERP and mission critical systems. • Interface through application programs and query tools © 2012 Persistent Systems Ltd www.persistentsys.com 44
  45. 45. Data Stack 2.0: Enterprise Data Warehouse for Decision Support • Operational data stores store on-line transactions • Many writes, some reads. • Large fact table, multiple dimension tables • Schema has a specific pattern – star schema • Joins are also very standard and create cubesFebruary 3, 2012 • Queries focus on aggregates. • Users access data through tools such as Cognos, Business Objects, Hyperion etc. © 2012 Persistent Systems Ltd www.persistentsys.com 45
  46. 46. Standard Enterprise Data Architecture Presentation Layer Relational Databases Optimized Loader Extraction ERP Cleansing Application Logic Systems (ETL) Data Warehouse Engine Analyze Purchased Query Data Relational Databases Legacy Data Metadata RepositoryFebruary 3, 2012 Data Stack 1.0: Data Stack 2.0: Operational Data Systems Enterprise Data Warehouse Systems © 2012 Persistent Systems Ltd www.persistentsys.com 46
  47. 47. Despite the two data stacks .. One in two business executives believe that they do not have sufficient information across theirFebruary 3, 2012 organization to do their job Source: IBM Institute for Business Value © 2012 Persistent Systems Ltd www.persistentsys.com 47
  48. 48. This is because only a small fraction of the • data in enterprise and • data from public data sources is managed by the enterprise data stacks!February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 48
  49. 49. Beyond the Operational Systems, data required for decision making is scattered within and beyond the enterprise Weather forecasts Expense Twitter Email Systems Management Feeds Collaboration/ Vendor Demographic Data System Wiki Sites Collaboration Organizational Systems Maps Employee Surveys Workflow Document Repositories Supply Chain Economic Data ERP Systems Systems Customer Call CRM Systems Location and Center Records Presence Data Social Networking Enterprise SensorFebruary 3, 2012 Data Warehouse Project artifacts Data Data CRM Systems Structured Unstructured Cloud Public Data Sources Data Sources Data Sources Data Sources © 2012 Persistent Systems Ltd www.persistentsys.com 49
  50. 50. What comes first -- Structure or data? Schema/ Data Structure Traditional Database Architectures have traditionally taken the schema first approach.February 3, 2012 How do you even start putting structure to your unstructured data? © 2012 Persistent Systems Ltd www.persistentsys.com 50
  51. 51. Time to create a new data stack for unstructured data. Data Stack 3.0.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 51
  52. 52. Time-out! Internet companies have already addressed the same problems.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 52
  53. 53. Internet Companies have to deal with large volumes of unstructured real-time data. • Every month, over half a billion different people check their email, post photos, chat with their friends, and do a myriad other things on Yahoo! sites. • 250 million tweets every day on Twitter ! (100 million at the beginning of the year) • 400 million web searches on Google every day • Over a billion updates on Facebook every month.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 53
  54. 54. Their data loads and pricing requirements do not fit traditional relational systems • Hosted service • Large cluster (1000s of nodes) of low- cost commodity servers. • Very large amounts of data -- Indexing billions of documents, video, images etc.. • Batch updates. • Fault tolerance.February 3, 2012 • Hundreds of Million users, • Billions of queries every day. © 2012 Persistent Systems Ltd www.persistentsys.com 54
  55. 55. They built their own systems • It is the platform that distinguishes them from everyone else. • They required: • high reliability across data centers • scalability to thousands of network nodes • huge read/write bandwidth requirements • support for large blocks of data which are gigabytes in size. • efficient distribution of operations across nodes to reduce bottlenecksFebruary 3, 2012 Relational databases were not suitable and would have been cost prohibitive. © 2012 Persistent Systems Ltd www.persistentsys.com 55
  56. 56. Internet Companies have open-sourced the source code they created for their own use. New companies have created business models to support and enhance this softwareFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 56
  57. 57. Open Source Rules !February 3, 2012 Hadoop Infrastructure © 2012 Persistent Systems Ltd www.persistentsys.com 57
  58. 58. What about support !February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 58
  59. 59. How does one go about the Big Data Expedition?February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com www.persistentsys.com 59
  60. 60. How does one go on a Big Data Expedition Ingest new data Generate Run Big Data reports and Algorithms insightFebruary 3, 2012 Incrementally, Iteratively © 2012 Persistent Systems Ltd www.persistentsys.com 60
  61. 61. Data Stack 3.0 Architecture Email Server Crawlers and Extractors Persistent Bigdata Library (PEBL) BI Tools Recomm Clusteri Seque Stats Graph endation ng nce Insights Algorit Algorit Engines Algorit Algorit hms hms hms hms Servers Log OLAP Map Text Statistics - R/ Reduce Hive Predictive Analytics (PIG/jaql) (AQL) SQL Analytics Unstructured data sourcesFebruary 3, 2012 DS 1.0 DS 2.0 Big Data Platform ELT System EDW Ingest Process Visualize © 2012 Persistent Systems Ltd www.persistentsys.com 61
  62. 62. What use is Data Stack 3.0? With the data that is now available … • What business problems can be solved in a more cost-effective way? • What business problems can be solved with the data that we are collecting but not leveraging? • What questions are we afraid to ask because we believe it will be too difficult to answer them or it would take too long to get the answer? • What business questions are simply not being asked?February 3, 2012 • How does this fit-in with the currently deployed infrastructure? What do we need to do beyond what we have? © 2012 Persistent Systems Ltd www.persistentsys.com 62
  63. 63. Search Quality • Typical Search Engine Search Runtime Web Crawling Analysis of web pages Inverted Index • Web crawling in MR • Analysis of web pages in MR • Index creation is MR Search Quality algorithms like TF*IDF, Page Rank are MRFebruary 3, 2012 • • Vertical applications based on search – Vacation Home © 2012 Persistent Systems Ltd www.persistentsys.com 63
  64. 64. What are they doing with big data: Search AssistFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 64
  65. 65. Risk Modeling • Identifying risk exposure from each customer. E.g. – a survey found that • 2.2K (out of 100K) customers using CC at beer bars missed payments once in 4 months • In contrast only 530 customers using CC to pay dentist bill missed payments once in 4 months • Essentially – the enterprises have to analyze and co-relate the data coming from multiple sources • Usually such data needs to be loaded once (say previous 5 years data)February 3, 2012 • No pure algorithm to find such conclusions – its manual skill • But, analysts need to query the data in different ways • Providing mechanism for generating fast reports helps! © 2012 Persistent Systems Ltd www.persistentsys.com 65
  66. 66. Sentiment Analysis/Customer Churn Analysis • Web2.0 – people tend to put lot of opinions on blogs, discussion forums • Sentiment analysis – typical workflow Crawl typical Data blogging Text mining DB load Reporting analytics sites • The first 3 steps are perfect MRFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 66
  67. 67. Recommendation Engine • “Customer who bought this item also bought….” • “People you may know…” • Enterprise collect data on users, past transactions, their interests • They try to use this data for such recommendationsFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 67
  68. 68. What are they doing with big data: RecommendationFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 68
  69. 69. What are they doing with big data: Targeted AdFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 69
  70. 70. Technology Driving Growth Anand Deshpande February 3, 2012February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 70
  71. 71. As applications move to the cloud they will lose their tight hold on enterprise data. Enterprise data will be available on the cloud as a service independentFebruary 3, 2012 of the application. © 2012 Persistent Systems Ltd www.persistentsys.com 71
  72. 72. Data is getting separated from Enterprise Applications and is accessible on the cloud through independent APIs. Application API App Data DataFebruary 3, 2012 Traditional Application Application running in Scenario the cloud © 2012 Persistent Systems Ltd www.persistentsys.com 72
  73. 73. Cloud Vendors will aggregate enterprise data. And make it available through APIs.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 73
  74. 74. The impact of aggregate data http://data.mint.com/February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 74
  75. 75. Concur: Aggregating Travel DataFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 75
  76. 76. February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 76
  77. 77. As Enterprise Data Enterprise moves to the Aggregate Data Data cloud, it would be easier to combine Public Data enterprise data with aggregate and public dataFebruary 3, 2012 sources. Insights © 2012 Persistent Systems Ltd www.persistentsys.com 77
  78. 78. Beyond the enterprise applications, large number of apps will be available on a pay-per-use basis in the App Store.February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 78
  79. 79. There will be a hierarchy of apps with different price points; all available on a pay- per-use business model. Task/Device Specific Apps Business Process Specific Apps TraditionalFebruary 3, 2012 Applications will Aggregate Enterprise Public Data be commoditized Data Data on the cloud. © 2012 Persistent Systems Ltd www.persistentsys.com 79
  80. 80. Products/Apps will be consumed in ready-to-eat bite-sized portionsFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 80
  81. 81. The New App World From the Low per App Store Unit Cost Zero Loyalty Pay per Snap-inFebruary 3, 2012 Use Snap-out © 2012 Persistent Systems Ltd www.persistentsys.com 81
  82. 82. To summarize • As applications move to the cloud they are taking data to the cloud as well. • Data on the cloud is now accessible through APIs independent of the application. • Cloud operators are aggregating data. • The ability to combine Enterprise data, Aggregate data and Public data is very powerful. • The world is moving to “the world of apps.” Apps will be businessFebruary 3, 2012 process specific or task/display specific. © 2012 Persistent Systems Ltd www.persistentsys.com 82
  83. 83. Technology Driving Growth Anand Deshpande February 3, 2012February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 83
  84. 84. Innovation through Gandhian Engineering Getting more for less for moreFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 84
  85. 85. India: the source and the market for innovationFebruary 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 85
  86. 86. Technology Driving Growth Anand Deshpande February 3, 2012February 3, 2012 © 2012 Persistent Systems Ltd www.persistentsys.com 86

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