Condusiv: Poor System Performance Could Swamp Potential of $371B Data Monetization Growth

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Losses caused by data-clogged computer hardware—and an attendant productivity drain—could far outweigh profits in the anticipated business-to-business data monetization boom.

Jim D'Arezzo, CEO of Condusiv Technologies, discusses how companies waste employee productivity with inefficient software solutions.

“Anyone interested in data monetization that fails to incorporate this kind of software into their system planning is throwing 30% or more of their hardware budget away, not to mention taking a huge loss in employee productivity.”

According to a recent study by Allied Market Research, the global data monetization market, valued at $44.9 billion in 2016, will reach almost $371 billion by 2023, growing at a CAGR of 35.4%.1 “Based on straight-line sales projections,” says James D’Arezzo, CEO of Condusiv Technologies, “those numbers are possible. But they paint a very incomplete picture.” D’Arezzo, whose company is a world leader in I/O reduction and SQL database performance, adds that unless serious attention is focused on the IT infrastructure supporting these activities, time and productivity losses could drown the entire market in a sea of red ink.

The model for the expected boom was set by the leading business-to-consumer social media companies, who have transformed data provided by their users into an asset whose ownership has enabled them to acquire a majority share of global advertising revenue.2 The expected major players in the next wave of data monetization—banking and financial services, ecommerce/retail, telco and IT, and real estate—will offer tailored business-to-business versions of their own extensive holdings of customer data.3

Unfortunately, the push for widespread B2B data monetization may arrive just as the entire field of big-data analytics is confronting—and being hampered by—the limits of current computer hardware. Put simply, notes D’Arezzo, the problems abound:

  •     Big data requires so much storage space that it is pushing the limits of storage scalability.
  •     As the amount of data being handled increases, input/output failures—the system’s inability to retrieve a given piece of information at a given moment—become more frequent.
  •     Each failure negatively impacts not only that particular request, but the overall calculation work of the entire system.4

One symptom of this problem is a severe and rapidly growing increase in hardware investment as companies attempt to overcome system limitations by, essentially, throwing money at them. By 2020, hardware spending in the enterprise segment, i.e., business, will reach almost $1.5 trillion.5

A related issue is that the combination of storage congestion issues and increased failure rate take a significant toll in productivity. D’Arezzo notes that users of inefficient systems spend an estimated total of 15 minutes out of every day sitting and waiting for a computer system to respond. The resulting economic burden is significant: the U.S. retail, business services, and financial industries together carry a total annual payroll of around $2.1 trillion.6,7 If a quarter hour of these employees’ productive time vanishes due to computer delays, it represents a nearly $66 billion annual loss.

“That’s the story about these data markets nobody is telling,” says D’Arezzo. He adds, though, that there are software solutions that can help companies avoid both insupportable capital investment levels and crippling productivity losses. These products can improve a storage and server system’s I/O efficiency—the basic determinant of data processing speed—30% to 50% or more, with no additional hardware cost.

D’Arezzo says, “Anyone interested in data monetization that fails to incorporate this kind of software into their system planning is throwing 30% or more of their hardware budget away, not to mention taking a huge loss in employee productivity.”

About Condusiv® Technologies
Condusiv Technologies is the world leader in software-only storage performance solutions for virtual and physical server environments, enabling systems to process more data in less time for faster application performance. Condusiv guarantees to solve the toughest application performance challenges with faster-than-new performance via V-locity® for virtual servers and Diskeeper® or SSDkeeper® for physical servers and PCs. With over 100 million licenses sold, Condusiv solutions are used by 90% of Fortune 1000 companies and almost three-quarters of Forbes Global 100 companies to increase business productivity and reduce data center costs while extending the life of existing hardware. Condusiv CEO Jim D’Arezzo has had a long and distinguished career in the high-tech arena.

Condusiv was founded in 1981 by Craig Jensen as Executive Software. Over 37 years, he has taken the thought leadership in file system management and caching and transformed it into enterprise software. For more information, visit http://www.condusiv.com.

1.    “Global Data Monetization Market Expected to Reach $370,969 Million by 2023,” Allied Market Research, April 4, 2018.
2.    McFarlane, Greg, “How Facebook, Twitter, Social Media Make Money From You,” Investopedia.com, March 21, 2014.
3.    “How Data Monetization is Changing the Real Estate Sector,” Investing News Network, June 12, 2018.
4.    Jewell, Dave, et al., “Performance and Capacity Implications for Big Data,” IBM International Technical Support Organization, January 2014. http://www.redbooks.ibm.com/redpapers/pdfs/redp5070.pdf
5.    Phillips, Jason, “Resurgence of Hardware Driving Innovation Across the Enterprise,” Techonomy, January 3, 2018.
6.    “Total employed persons in the U.S. in 2017, by industry,” statista.com, 2018.
7.    “U.S. wages and salaries—statistics & facts,” statista.com, 2018.

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Karla Jo Helms
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