Cognetik is bringing you this week’s news in the analytics industry! Every week we will keep you updated with the latest trends, news and launches in the industry so you are always informed.
Global Healthcare Analytics market is skyrocketing
As the analytics industry moves forward, it is expanding into more and more areas, helping companies from industries such as retail, science and medicine to transform themselves. A new market study shows that the healthcare analytics market is rising at a 12% CAGR and will continue to do so up until 2024.
The growth is mainly driven by the need to control healthcare costs and the expansion of the global healthcare market. The surge is exponential since not only developed countries, but also emerging ones, are starting to invest more and more money into digitalization. This is true for both state-controlled health & pharma firms and for private ones, since everyone needs to stay competitive and to get ahead of the competition.
For developed countries, the massive investment in R&D will serve as a significant driver for growth, while favorable government initiatives will augment the healthcare analytics market in both emerging and developed economies worldwide.
“Rapid adoption in developed regions and growing acceptance of advanced technologies in emerging economies should fuel healthcare analytics market size. Promising improvements in healthcare infrastructure, growing disposable income levels and increasing application of these solutions should boost industry growth”, according to the healthcare market study.
By 2024, the most pessimistic expectations place the healthcare analytics market at more than 16 billion dollars, while some, more optimistic analysts, say it would exceed 24,5 billion dollars by 2021.
Traditional retail is struggling to breathe, suffocated by the expansions of e-commerce
Traditional retail is losing more and more ground to e-commerce, and the ability to transition to a digital enterprise is already crucial for the very survival of companies.
Last year, more than ever, shoppers made it clear that they want to purchase online and they want to be mobile. The best way to express this is to look at Amazon’s shares: while brick-and-mortar retailers are struggling to keep their business afloat, Amazon’s shares rose 55%.
There were more than 660 bankruptcy filings in the retail sector in the US alone, more than 30% increase from the previous year. Some industry experts are warning this is just the beginning, and that 2018 will be an even tougher year for traditional commerce.
The distress signal is extremely loud, especially since the overall unemployment rate in the US reached a 17 years low, while retail is negatively contributing to this figure, with nearly 36.000 jobs lost in 2017, making it among the top job losers in the US.
IBM wants to boost their analytics product offering
IBM, one of the biggest cloud service providers in the world, has more than doubled its cloud revenue over the past three years, according to its latest financial results.
The American company reported fourth-quarter revenue of $22.5bn, a 4% increase from the previous one, while their global business services sector generated $4.2bn of revenue in the same period. In the quarter, revenues from analytics increased by 9%, while revenues from mobile rose by 23% and revenues from security leapt by 132%.
According to computerweekly.com, Martin Schroeter, senior vice-president of global markets at IBM, said: “We help our clients to implement hybrid environments, integrating public and private and traditional IT. Where we saw weakness was in a couple of traditional analytics offerings, such as data integration and content management.”
Schroeter said that IBM needed to spend more time developing these products better. Part of the “reform” will be transitioning some traditional analytics products to software-as-a-service (SaaS)-based licensing. However, according to the press reports, during the earnings call, Schroeter did not disclose if there would be any benefits to customers from such a licence shift.