It is very hard to predict about the future, everything is all left in insights of what will happen around the analytics of data in the upcoming years. But let us think about it and get to know the innovations which are data-driven, where will it take us and how businesses and several other organizations will be benefited with it in the upcoming era.
The Big in Big Data Will Become Redundant
Data will be again referred to as data only, the volume of the data does not matter. And the data sets will eventually grow and we will be overbored while referring these sets to be big. Because we will not be focusing or we are overwhelmed by the data size but our focus will be moved to the multiple opportunities which are provided by the data. The main focus starts to move from challenges of the infrastructure to the challenges of ROI, for determining the data's value, the secrets which are hidden and how to generate value through the insights.
More Automation will lead to More Creativity
With the increase in the process, the challenges of data become mature, and automation starts playing the leading part in determining the data sets of the companies. Automation will open up the time and space for data scientists to use the insights pulled from the data for increasingly creative suggestions for business solutions and even business transformations. The speed of processing data will also allow for more insights to be generated, which will, in turn, lead to even more insights generated at an increasingly fast rate, and perhaps even a new wave of possibilities that were never dreamed of before.
Automation, then, will lead to better, more creative solutions that will become the platforms with which we solve the next, bigger problems.
The Great Access Expansion
One of the current discussions around big data is about the desire for an unfettered collection of and access to more data and the concerns about privacy and security that arise from that want. Big data people are writing about how and why we should or should not access more data, as well as the implications of having this data available for governments or businesses to see. These discussions will grow more and more heated unless business and governments can foster trust and more widely demonstrate the benefits of data sharing.
A Connectivity Explosion
The world has many more connected devices right now than it has people, and this proliferation of sensing devices will continue to grow. The internet of things will connect sensing devices to one another, allowing for real-time communication between devices and their users about their location, what is happening around them, and what should be anticipated based on their environment. The users of connected devices will continue to interact with their friends, loved ones, coworkers and their own data through innovative technologies, and in far more intimate ways.
The internet of things will clearly affect businesses just as much as consumers. After all, businesses are the main source of sensor proliferation and the products that they improve or create. We're already seeing profound growth of what sensors can do for businesses. For example, Progressive Insurance is using sensors to drive down insurance costs, while other companies are providing remote control of your homes security and energy use, and Google is tracing traffic accurately and in real time in the worlds major metropolitan areas. These services will continue to grow and become more complex as businesses develop better ways to use them.
Big Data's Big Future
In the future, data is likely to be become more automated, providing us with greater access to creative solutions. What exactly it will deliver, however, remains to be seen. We all conjecture about where this wave will go based on current and past trends. Where do you think its headed?
2018 was a great year for IPOs, and the momentum is likely to continue throughout 2019 despite the government shutdown in January. As companies wait longer to go public, investors are increasingly demanding a viable path to profitability.
We recently spoke to over 300 IT executives and decision-makers to identify changes in their preferences and outlook on Business Intelligence and data analytics tools over the past year. Companies have consistently told us their success increasingly depends on analytics and more than 90 percent said they plan to increase spending on BI tools.
Big Spending On Big Data
We believe the exponential rate at which companies are collecting data has increased the need for easy visualization and the ability to analyze and act on the big volumes of data. As such, we think the demand for data analytic tools will continue to grow, which could boost valuations for the companies that make them.
To be sure, the Big Data and analytics needs of companies are not uniform. In fact, companies dealing with structured data need different things compared to companies managing unstructured data. Our survey found that more than 95 percent of businesses face some kind of need to manage unstructured data, with over 40 percent of businesses saying they must do so on a frequent basis. Companies that can best address both sets of customer needs could enjoy a strong position in the market.
Recent comparable IPOs of Big Data/analytics firms have traded in the range of 7.0x to 8.0x on one-year forward revenues. Furthermore, the valuation multiples of big data pureplay companies, such as Tableau and Splunk, have increased over the past twelve months. We believe investors would prefer to see the following performance from Palantir:
- 2019 net revenue at or above $2 billion
- 2019 net revenue growth rate exceeding 25 percent
- gross margins approaching 70 percent or higher
- positive free cash flow
Investors will likely focus on the company's efforts to diversify its customer base and push revenue toward recurring subscriptions. Over the past five years, we believe Palantir has been aggressively trying to shift services oriented revenues generated by government contracts towards software subscription revenues from enterprise customers.
Investors might also look for the following:
- A rising proportion of gross bookings being converted to net revenue
- An upward trend in gross margins
- A higher growth rate of enterprise clients instead of government clients A general shift toward license revenues instead of service revenues.
We believe the company has made significant progress over the past couple of years in all of these areas. However, investors should look for continued growth on all of these fronts to garner a higher multiple as the company approaches the public markets over the next 12 to 24 months.