Technology Driving Growth. Kotak Investor Conference

Technology Driving Growth
Anand Deshpande
February 3, 2012
February 3, 2012

© 2012 Persistent Systems Ltd www.persistentsys.com 1

Computers as we know
them are history!
February 3, 2012


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

How many
toothbrushes
are sold in the
world last year?
February 3, 2012


How many
toothbrushes
are sold in the
world last year?
February 3, 2012

Source 1: 1.2 Billion
Source 2: 3.2 Billion


Rethinking the user …
February 3, 2012


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 and
February 3, 2012

specific Apps that
mobile apps leverage watch mode.
mobility


Tablets are driving a change in the
Enterprise

Primary Device
February 3, 2012

With Tablets as the primary device,
HTML5 will be the default environment

Apps apps everywhere!
February 3, 2012


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 M2M
February 3, 2012

Sprint Telecom
connections.”


Putting Kinect Technology to Work
February 3, 2012


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.

Anand Deshpande
February 3, 2012
February 3, 2012


What do the users want to do when they go
on-line?
February 3, 2012


February 3, 2012


Facebook gets 2.7 billion clicks of its "like"
button every day
February 3, 2012


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.


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


Social Networking
in the Enterprise
February 3, 2012


eMee: Employee Engagement Portal

virtual “gifts” representing a “pat
February 3, 2012

on the back” encourages high
performance and fosters team
spirit


the “den” creates a sense of belonging and provides an
outlet for hobby groups and shared interests
February 3, 2012


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


Anand Deshpande
February 3, 2012
February 3, 2012


Cloud computing is the platform for next
generation of IT innovation.
February 3, 2012


February 3, 2012


What is driving the adoption of cloud
computing?

Economics.
February 3, 2012


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.

We are grossly over-provisioned
Capacity • Capacity includes:
• Computer Servers
Resources

• Storage
Demand
• Software Licenses
• Network bandwidth
Time
• Energy
Static data center
• Air Conditioning
February 3, 2012

Unused resources
• Rent
• Maintenance Costs
Slide Credits: Berkeley RAD Lab • Operator Staff

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)
Capacity
February 3, 2012

Demand
1 2 3
Time (days)
Slide Credits: Berkeley RAD Lab Lost users

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
Capacity
February 3, 2012

1 2 3
Demand
Pay-per-use
Time (days)
Slide Credits: Berkeley RAD Lab business models

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 percent
February 3, 2012

http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html

Advantages of Cloud Computing

Agility Cost Device and Scalability
Location
Independence
February 3, 2012

Multi-tenancy Security Maintenance Metering


Challenges for Cloud Computing

Privacy Compliance Legal Open source
February 3, 2012

Open standards Security Availability and Sustainability
performance and siting


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 Technology
February 3, 2012

Business challenges will accelerate the adoption of cloud computing.


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 factored
February 3, 2012

in and will be a big impediment.


Anand Deshpande
February 3, 2012
February 3, 2012


Infrastructure is moving to the cloud …
applications are next!

Data will move with the applications.
February 3, 2012


Data on the cloud will
enable new data-centric
business models.
February 3, 2012


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

Enterprise’s data is
February 3, 2012


BIG DATA:
Why this BUZZ di?
February 3, 2012

© 2012 Persistent Systems Ltd www.persistentsys.com
www.persistentsys.com 41

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.

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 – volume
February 3, 2012

• Real-time – velocity
• Time to establish Data Stack 3.0
• Data Stack 3.0: Big Data Stack

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 store
February 3, 2012

for ERP and mission critical systems.
• Interface through application programs
and query tools

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
cubes
February 3, 2012

• Queries focus on aggregates.
• Users access data through tools such as
Cognos, Business Objects, Hyperion etc.

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 Repository
February 3, 2012

Data Stack 1.0: Data Stack 2.0:
Operational Data Systems Enterprise Data Warehouse Systems


Despite the two data stacks ..
One in two
business
executives
believe that they
do not have
sufficient
information
across their
February 3, 2012

organization to
do their job
Source: IBM Institute for Business Value

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


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 Sensor
February 3, 2012

Data Warehouse Project artifacts Data Data
CRM Systems
Structured Unstructured Cloud Public
Data Sources Data Sources Data Sources Data Sources

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?

Time to create a
new data stack for
unstructured data.

Data Stack 3.0.
February 3, 2012


Time-out!

Internet companies
have already
addressed the same
problems.
February 3, 2012


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


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.

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 bottlenecks
February 3, 2012

Relational databases were not suitable and would have been cost
prohibitive.


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
software
February 3, 2012


Open Source Rules !
February 3, 2012

Hadoop
Infrastructure


What about support !
February 3, 2012


How does one go about the Big Data
Expedition?
February 3, 2012

© 2012 Persistent Systems Ltd www.persistentsys.com
www.persistentsys.com 59

How does one go on a Big Data Expedition

Ingest new
data

Generate
Run Big Data
reports and
Algorithms
insight
February 3, 2012

Incrementally, Iteratively

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 sources
February 3, 2012

DS 1.0 DS 2.0
Big Data Platform ELT System EDW

Ingest Process Visualize

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?


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 MR
February 3, 2012

•

• Vertical applications based on search – Vacation Home

What are they doing with big data:
Search Assist
February 3, 2012


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!

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 MR
February 3, 2012


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 recommendations
February 3, 2012


Recommendation
February 3, 2012


Targeted Ad
February 3, 2012


Anand Deshpande
February 3, 2012
February 3, 2012


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 independent
February 3, 2012

of the application.


Data is getting separated from Enterprise
Applications and is accessible on the cloud
through independent APIs.
Application
API App

Data
Data
February 3, 2012

Traditional Application Application running in
Scenario the cloud

Cloud Vendors will aggregate enterprise
data. And make it available through APIs.
February 3, 2012


The impact of aggregate data
http://data.mint.com/
February 3, 2012


Concur: Aggregating Travel Data
February 3, 2012


February 3, 2012


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 data
February 3, 2012

sources. Insights

Beyond the enterprise applications,
large number of apps will be available
on a pay-per-use basis in the App Store.
February 3, 2012


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

Traditional
February 3, 2012

Applications will Aggregate Enterprise
Public Data
be commoditized Data Data
on the cloud.


Products/Apps will be consumed in
ready-to-eat bite-sized portions
February 3, 2012


The New App World

From the Low per
App Store Unit Cost

Zero
Loyalty
Pay per Snap-in
February 3, 2012

Use Snap-out

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 business
February 3, 2012

process specific or task/display specific.


Anand Deshpande
February 3, 2012
February 3, 2012


Innovation through Gandhian
Engineering
Getting more for less for
more
February 3, 2012


India:
the source
and
the market
for innovation
February 3, 2012


Anand Deshpande
February 3, 2012
February 3, 2012


Technology Driving Growth. Kotak Investor Conference

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