Gartner Announces Results of Big Data Investment Plan Survey
The number of companies that responded they plan to invest within the next two years declined compared to 2015.

According to a recent survey by Gartner Inc., while the scale of big data investment continues to increase, signs of contraction are also appearing.

Gartner reported that 48% of all companies surveyed (a 3% increase from the previous year) increased their investment in big data in 2016. However, the percentage of companies planning to invest within the next two years fell by 6% from 2015 to 25%.

This online survey was conducted in June 2016 among member companies of the Gartner Research Circle. A total of 199 member companies participated in the survey, and they shared their respective investment plans.

Nick Heudecker, a principal research analyst at Gartner, said, “While the scale of big data investment has increased, there are signs of a slowdown in growth as survey results show fewer companies have plans for future investments. The key here is not big data itself, but how to utilize it. Companies are beginning to understand that big data is not simply a specific technology, but they must move away from the idea that big data requires separate effort.”

Big data, which combines various data management technologies and methods, can be utilized in the field of analytics in various ways. Companies have begun to move beyond the vague concepts of data and analytics to address specific business problems that can be solved through data. "A company's overall strategy, encompassing business performance, skilled workforce, data, and infrastructure, will determine success or failure," said Principal Research Analyst Nick Hudecker.

The investment focus is shifting from big data itself to solving specific problems through big data.

Nearly three-quarters of survey respondents stated that their companies have already invested in or plan to invest in big data. However, the reality is that many companies are still in the pilot phase, and only 15% have applied big data technology to their production processes. This figure shows almost no change compared to last year (14%).

"One explanation for this phenomenon is that big data projects are falling behind other areas in IT spending priorities," said Principal Researcher Nick Hudecker. Among companies that have already invested in big data, only 11% responded that the big data sector is at least equal to or more important than other IT sectors. In contrast, 46% of respondents stated that big data is a relatively low priority.

“This could be because the majority of big data projects do not provide a visible return on investment (ROI),” said Principal Researcher Nick Hudecker. “Or it could be because big data projects are included as part of other large-scale projects.” "The term 'big data' will gradually disappear, and as the scale of data to be handled increases and the instances of dealing with various forms of data become more common, this trend is expected to become more prevalent," he said.

The absence of effective business leadership or a lack of participation in data-related projects are also factors to consider. Often, systems are built for pilot and testing phases using ad-hoc technologies and infrastructure that were not designed for application in the production process.

Jim Hare, a principal research analyst at Gartner, stated, “The reality is that a significant number of companies are still in the early stages regarding big data. The mindset regarding big data has not yet become widespread enough to achieve ‘industrialization’ where performance and stability are guaranteed.”