Hadoop-as-a-Service (HaaS/HDaaS), is a novel term that defines virtual storage and analysis of data on the cloud. Also termed as “hadoop in the cloud,” HaaS has emerged as a replacement to On-premises hadoop. It comprises of data storage in the cloud and its analysis through hadoop without the need to install any infrastructure in the premises. HaaS market has witnessed a tremendous growth in 2013 and has doubled from the market size in 2012. HaaS market is evolving and current users include SaaS providers, social media companies, and gaming companies. The technology is yet to enter into the mainstream commercial market. However, it is expected to witness a tremendous growth in the next 7 years, expanding its horizon into the end user industries of conventional hadoop.
Amazon Web Services (AWS) holds lion’s share in the market, holding nearly 90% of the global market. Amazon Elastic MapReduce (EMR) is the HaaS service by AWS. It provides hadoop based platform for data analysis with S3 as the storage system and EC2 as the compute system. Microsoft HDInsight, Cloudera CDH3, IBM Infoshpere BigInsights, EMC GreenPlum HD and Windows Azure HDInsight Service are the primary HaaS services by global IT giants. Altiscale is another player in the market with a comparatively minimal share in the market; however, holds potential to compete with the existing companies. Altiscale and Quobole are the two managed or Pure Play HaaS providers. Contrary to AWS, they provide complete running and management of the hadoop jobs.
Global HaaS market is segmented into Pure Play and Run It Yourself based on deployment options available to the customers. Run IT Yourself (RIY) type of deployment is the most prominently used service in the current scenario. Further, the market is analyzed and estimated based on regions such as North America, Asia Pacific, Europe and LAMEA. North America is the leading region followed by Europe and Asia Pacific in the overall HaaS market.
KEY MARKET SEGMENTS
Hadoop-as-a-Service market is segmented based on deployment types, end users and geography
MARKET BY DEPLOYMENT TYPES
MARKET BY END USER
MARKET BY GEOGRAPHY
Data scientists and Hadoop providers have yet to reach a consensus regarding the term Hadoop as a Service and what exactly it encompasses. Taking the phrase as-a-service into consideration, HaaS must refer to a service offered by a company wherein hadoop software can be utilized without having to install the infrastructure on the premises. Big data analysis is done through the hadoop platform in the cloud. The minimum requirement for a service to be considered HaaS is that it should provide a hadoop software platform where data can be fed and analyzed. Infrastructure-as-a-Service offerings that can be utilized by the user to install hadoop should not be considered a HaaS offering. AWS EMR is the most basic type of HaaS offered by companies. If a user employs the AWS EMR service; additional charges (other than the EMR) apply for storage and compute services with S3 and EC2. In such cases, the HaaS revenue generated by the company includes EMR cost, S3 cost and EC2 cost.
HaaS is a novel technology that is yet to enter the mainstream commercial market. HaaS is expected to penetrate the conventional hadoop user base in the coming years. Amazon Web Services is the market leader, holding nearly 90% share of the HaaS market. EMR is a HaaS offering by AWS. Other HaaS offerings include IBM Infosphere BigInsights, Windows Azure HDInsights, and EMC greenplem HD. Altiscale and Quobole are comparatively smaller companies but have come up with a managed hadoop as a service offering which eliminates the need for technical knowledge to run hadoop.
HaaS generated revenue of around $150 million in 2012. The revenue generated by HaaS has almost doubled from 2012 to 2013. The market is expected to retain its pace throughout 2020. Pure Play HaaS providers are expected to grow at a faster rate, especially in the Asia Pacific region. This is because growing awareness among SMEs in these countries ensures potential customers for HaaS due to its cost competitiveness and due to the growing need for data analytics to sustain in the intensely competitive SME market.