the business of big data - ia ventures

The Business of BIG DATA

General Assembly July 12th, 2011

What we’ll cover

1. What is Big Data?

2. Characteristics of a Big Data business

3. Creating competitive barriers in Big Data

Data is becoming the new raw material of business: an economic input almost on a par with capital and labour. “Every day I wake up and ask, ‘how can I flow data better, manage data better, analyse data better?” says Rollin Ford, the CIO of Wal-Mart.

Source: Data, Data Everywhere, The Economist, February 25, 2010

There were 5 exabytes of information 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, Google CEO, Techonomy Conference, August 4, 2010

Why now?

Source: Mike Driscoll, CTO Metamarkets: The Three Sexy Skills of Data Scientists (& Data Driven Startups)

Source: Mike Driscoll, CTO Metamarkets: The Three Sexy Skills of Data Scientists (& Data Driven Startups)

What is Big Data?

Big Data = Complex Data

Large

Real-time

Large• Billions of

web clicks+1TB

• Millions of web pages

10GB-1TB

• Thousands of Sales figures

<10GB

Real-time

A Big Data company unlocks intelligence from

complex data

IA Ventures invests in early-stage companies unlocking intelligence from complex data

history of big data

Search Engine

Search Engine

Crawl the web

Query

Search Engine

Crawl the web

Query

Storage

Computation

StorageComputation

StorageComputation

Distributed

Distributed Storage

Distributed Computation

Map Reduce Big Table

Distributed Storage

Distributed Computation

Map Reduce Big TableHadoop HBase

Distributed Storage

Distributed Computation

Distributed Storage

Distributed Computation

So you want to start a big data company?

Taxonomy of Big Data Companies

Your Data Other Data

Your Data Other Data

Taxonomy of Big Data Companies

Sell Data Compute + Sell Data-driven ProductData Products

Your Data Other Data

Taxonomy of Big Data Companies

Sell Data Compute + Sell Data-driven Product

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit Metamarkets, PlaceIQ

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit Metamarkets, PlaceIQ RecordedFuture, BillGuard

Data Products

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit Metamarkets, PlaceIQ RecordedFuture, BillGuard

Data Products

Moats

Data Network Effects Data Economies of Scale

Competitive Barriers

Network Effects

Traditionally think of….

‘Network graphs’

Marketplaces

Network Effects

No network effects

Within the data eco-system…

Data Network Effects

Within the data eco-system…

Data Network Effects

Within the data eco-system…

Economies of Scale

Traditionally think of….

Data Economies of Scale

1. Product

2. Users

3. Data

4. Product evolves

5. Increased user engagement and more data

Within the data eco-system…

Data Economies of Scale

1. Product

2. Users

3. Data

4. Product evolves

5. Increased user engagement and more data

Within the data eco-system…

Big Data Team

Big Data Team

Data science Scalable distributed architectures

Big Data TeamData DNA

Thank you!

Ben Siscovick@bsiscovick

ben@iaventures.com

Andrew Cove@andrewacove

andrew@iaventures.com