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Predictive Analytics Leads to Successful
Recommendations and Direct Revenue Maximization
Christos Tryfonas, Ph.D.
CTO, Cloud & Big Data Analytics
INSTANT INTELLIGENCE
Web:
www.cetas.net
Twi)er:
@CetasAnaly/cs
Blog:
www.cetas.net/blog
YouTube:
www.youtube.com/CetasAnaly/cs
© 2009 VMware Inc. All rights reserved

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INSTANT INTELLIGENCE
Transform IT
+ Transform Business
+ Transform Yourself
Leverage Cetas to Transform
Real-Time and Predictive Analytics
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Infrastructure, Apps and now Data… INSTANT INTELLIGENCE
Build Run
Private
Public
Analyze Manage
Simplify Infrastructure Simplify App Platform Simplify Data
With Cloud Through PaaS with
(IaaS) Analytics
as-a-Service
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Trend: New Data Growing at 60% Y/Y INSTANT INTELLIGENCE
Exabytes of information stored 20 Zetta by 2015
1 Yotta by 2030
Yes, you are part
of the yotta
audio
generation…
digital
tv
digital
photos
camera
phones,
rfid
medical
imaging,
sensors
satellite
images,
logs,
scanners,
twi)er
cad/cam,
appliances,
machine
data,
digital
movies
Source: The Information Explosion, 2009
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Data Growth in the Enterprise INSTANT INTELLIGENCE
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Trend: Value from Data Exceeds Hardware Cost INSTANT INTELLIGENCE
§ Value from the intelligence of data analytics now outstrips the cost
of hardware
• Hadoop enables the use of 10x lower cost hardware
• Hardware cost halving every 18 months
Value
Big Iron:
$40k/CPU
Commodity
Cluster:
$1k/CPU
Cost
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The Big Data Problem INSTANT INTELLIGENCE
Velocity Volume Variety Value
$
10’s of Billions From Terabytes to Multi-Structured Business
of Daily Records Petabytes Insights
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Trend: Big Data Analytics – Driven by Real-World Benefit INSTANT INTELLIGENCE
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Big Data Use Cases INSTANT INTELLIGENCE
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Big Data Analytics ROI INSTANT INTELLIGENCE
Source: Nucleus Research
http://www.enterpriseappstoday.com/business-intelligence/the-more-pervasive-business-analytics-roi-big-data.html
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Big Data Technology Stack INSTANT INTELLIGENCE
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A Holistic View of a Big Data System INSTANT INTELLIGENCE
Real-Time
Streams
Real-Time
Processing
Analytics
Ingestion
& Big Query,
ETL Real Time
Search, Batch
Database
(HBase, Index Processing
Cassandra) (Google, Spunk,
Cetas)
Unstructured Data (HDFS)
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The Unified Analytics Cloud Platform INSTANT INTELLIGENCE
Mahout R Cetas/VMware
Analytics Tools
Splunk SAS or IBM SPSS
Map Reduce Developer Spring
PaaS
Python Frameworks Cloud Foundry
Cassandra HBase
HDFS Database/DataStores
Greenplum Voldemort
Hadoop
Data Platform Data PaaS
VMware /Cetas
vSphere Cloud Infrastructure
Private
Public
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A Unified Analytics Cloud Significantly Simplifies Infrastructure INSTANT INTELLIGENCE
§ Simplify
• Single Hardware Infrastructure
• Faster/Easier provisioning
SQL or NoSQL Cluster
Big SQL NoSQL Hadoop Analytics
Engine
Analytics L Cluster
Unified Analytics Infrastructure
Private
Public
Hadoop Cluster
§ Optimize
• Shared Resources = higher utilization
Decision Support Cluster
• Elastic resources = faster on-demand
access
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Predictive Analytics Objectives INSTANT INTELLIGENCE
§ Optimization of one or more target functions
• Example: Increase Customer Engagement
§ Vertical Specific
• Increase Customer Satisfaction
• Maximize Customer/User Engagement
• Minimize Churn Rate
• Maximize Revenue
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Sample Applications of Predictive Analytics INSTANT INTELLIGENCE
§ eCommerce
• Customer interaction
• Revenue Maximization Statistical /
• Inventory management Regression
§ Mobile Models
• Capacity Planning
§ Ad/Publishing
• Ad serving Machine
• Customer Retention Management Learning
(NN, Bayesian,
§ Gaming etc.)
• Ad serving
• Virtual Good Placement
• In-App Purchasing
Social Graph
§ IT
Algorithms
• Capacity Planning
• Alerting and Diagnosis
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Taking Predictive Analytics to logical conclusion INSTANT INTELLIGENCE
§ Currently predictive analytics is in Silos
• Data Scientists w/ SAS, SPSS, Custom models
• Localized/Sampled Datasets
• Building Models using Open Source Modeling Tools: Hadoop, Mahout, R
§ Actionable Analytics
• Recommendation Engines (Examples: Amazon, Netflix)
• Product Placement Engines
• Targeted Ad Placement Engines
§ Cloudification of Predictive Analytics
• Analytics-as-a-Service approach
• Big Data support
§ Overall Objectives
• Revenue Maximization
• Social Penetration and User Engagement
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Data is Being Stretched INSTANT INTELLIGENCE
Intelligent Data
§ Analytics Apps and
Algorithms
§ Discovery, Visibility,
Pattern Extraction
Big Data Fast Data
§ Streaming, real-time and
§ Petabytes vs.
Unpredictable
Gigabytes
§ Mobile app proliferation
§ Democratize
Analytics
§ Non-structured data
Flexible Data § Developer productivity
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Summary INSTANT INTELLIGENCE
§ Cloudification of Analytics is happening
§ Predictive Analytics follow the Big Data
and Social Web App trends
§ Direct Impact in Monetization from
Predictive Modeling and Analytics
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