Tuesday, 5 August 2014

Speed bumps on the road to digital transformation

Cloudera founder and CTO Amr Awadallah, account of the challenges it and its customers face as they strive to exploit the full potential of the Cloudera Enterprise Data Hub technology is yet another example of the problems enterprises face as they embark on journey of 'digital transformation'.


When I interviewed Awadallah last week he showed me a slide depicting how Cloudera sees customers progressively embracing and extending their use of the Cloudera Enterprise Data Hub technology. "The journey starts from using the system for better operational efficiency, just for cheap storage," he explained. "Then they start to use it for what we call 'extract, transform and load': transforming the data from its unstructured form into a structured form that they can use inside their database. That's a big bottleneck today for a lot of organisations."

This is followed by data warehouse optimisation. Awadallah claims that the cost of storage in conventional data warehouse technology means that much data is relegated to the archives and for all practical purposes lost. "The archive is the graveyard of data, he says.

Based on the claim that the Cloudera approach offers storage at 1/30th to 1/100th cost of a data warehouse, he quips: "We offer economy class storage. Data Warehouse is first class. With a data warehouse it's fly or die."

Once organisations have achieved this level of usage, he says, they can start to exploit the real potential of the technology, analysing both structured and unstructured data, applying sophisticated data science techniques and finally applying converged analytics. This, he says "is when you have achieved enlightenment as an organisation. Where you have a single place with all your data and your workloads all come to the data as opposed to the data going to the workloads."

He claims that this is typically a four year journey for an organisation. "It can be a ten-year journey and for some organisations, it can be a one-year journey." Cloudera is only six years old, so none of its customers has yet completed the journey, but many are at the 'data science' stage, Awadallah says.

Not the least of the challenges for an organisation is how it makes the transition from the technology being in the domain of IT to the domain of lines of business - a transition shown in Awadallah's slide as a dotted line between enterprise 'data warehouse optimisation' and 'agile exploration'.

I asked him how Cloudera gets its customers across that line. How they make the transition from Cloudera technology being the domain of IT to the domain of lines of business.

The answer, it seems is not IT pushing the business along the journey, telling them how they can make better use of the technology. Nor is it the lines of business pressuring IT to provide the additional functionality. "IT does not know how to do the sale. In fact IT is afraid of this as there are new skills they have to learn," he says. "At a minimum it forces them to do something new. IT sometimes fights this change."

This places Cloudera in an awkward position: from having an established relationship with IT, it moves to selling the benefits of its technology to the business, potentially undermining established relationships. "We try to make friends with the IT guys" Awadallah say. "We give them training so they are less resistant."



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