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IT, Big Data could benefit from pay-as-you-go: Teradata

IT, Big Data could benefit from pay-as-you-go: Teradata

Big Data company finds parallels in provisioning IT with frozen yogurt retailers.

Teradata would like to see IT move from serving to enabling, as well hift in how it interacts with business.

Chief analytics officer, Bill Franks, admits the topic has been “bubbling for a number of years,” but technologies such as Big Data are forcing the issue.

“For many years we have had IT controlling how analytics are done,” he said.

Franks likens the typical way of provisioning analytics to an “old-school frozen yoghurt shop,” where a customer buys a cup and chooses the toppings.

“I never liked these places much, as they would charge $3.50 for the yogurt yet 89 cents for each topping,” he said.

“I found it offensive to pay 89 cents for a spoonful of sprinkles on top of the base price.”

Franks would only got one topping at most and “definitely not buy” two or three toppings, and in some cases purchased no topping at all.

What Franks said that ultimately led to was him not enjoying him yogurt much, nor would he visit the store very often.

The new order

Read more: Australians are aware, educated about Big Data: MapR

Several new style yogurt shops soon opened within the vicinity of the original store, and within six months the old one was out of business.

The new shops had a whole wall of yogurt for $6 where the customer can pick and choose flavours, as well as free access to a topping bar.

Franks describes this pay-as-you-go model as the “holy grail of retailing,” as it typically translates into more frequency of visit, higher average ticket price, and more satisfaction.

“The traditional IT model is very much like this, where it is the yogurt where the availability of flavours is decided and metered out to demand, while the topping are the toolsets,” he said.

The new yogurt shops may cost more, yet they may have the same yogurt machines, toppings, storefront, and point of sale as the original shop.

The difference lies in the sales model, which essentially consists of moving the cashier from the front of the yogurt machines to behind it, and giving people access to the yogurt.

Similarly with IT, Franks said the screen between the server and the user should be removed, and instead the screen can be put on the server-side and let the user have access.

“Doing so, you’ve changed your business model with minimal investment,” he said.

Read more: Optimation plans to hire in Australia to support growth

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.

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