Top cloud providers environments are also less costly than physical environments. In fact, most cloud providers offer a pay-per-use or streaming model, which can be particularly attractive when facing solutions like analytics, which are not "always-on". For example, Johnson and Johnson, moved to a hybrid cloud environment in 2012 as a plan to refocus their core IT strategy. This was a move to change company culture and impact how they approached data as a whole. By not locking itself into a traditional infrastructure, Johnson and Johnson was able to use the advantages the cloud offered, including transitioning from a capital-intensive IT infrastructure to a cost-friendly variable model.
Increasing volumes and varieties of data, combined with self-service data access, is overwhelming existing reporting tools and infrastructure. To scale for digital era demands, organizations are adopting new cloud Hadoop-based, data lake architectures and next generation OLAP semantic layers. As early adopters make this move, they are learning from expensive "lift and shift" failures. "Lift and optimize" approaches are proving to be far more cost-effective and successful.
Not only is the number of tools increasing, these same tools are also addressing increasingly discrete problems. Whereas we used to evaluate one or two tools to solve an array of data problems, it's not uncommon now to evaluate a suite of different tools to solve discrete subsets of those same problems.
At the opening keynote of the company's annual industry analyst summit, COO Oliver Ratzeberger displayed a chart showing share prices up almost 40% over the past year, and or almost double over that of a couple years ago. Wall Street likes the fact that Teradata's subscription business is ramping up much faster than expected, accounting for over 60% in Q1 vs. the 40 - 50% that was expected. Mind you, Teradata is pulling off this transition while remaining publicly-traded, unlike midsized software counterparts like Tibco and Informatica that felt the need to go private. Beneath the surface, Teradata has made a number of changes to its business that have facilitated the transition to subscription. Many of those pieces were announced last year.
Does cloud analytics really help in the overall scope of Information Technology? This is one question asked by most IT businesses. As the cloud continues to gain prominence in both, technology and business world, questions such as these arise more frequent. Before we delve into the significance of cloud analytics for IT businesses, it's important to first define it. Cloud analytics is a service model in which the data analytics process is provided through private and public cloud under a subscription-based model.