Subject: Mass - good pool of companies for the RSTP pipeline
From: "Neil Callahan \(Rosemont Seneca\)" <[email-masked]>
To: <[email-masked]>, "John DeLoche" <[email-masked]>, <[email-masked]>, "Hunter Biden" <[email-masked]>, "Rob Walker" <[email-masked]>
Date: Mon, 23 Jan 2012 10:02:20 -0500

Mass. firms see riches, jobs in charting oceans of data

By  <http://www.bostonglobe.com/staff/farrell> Michael B. Farrell

 |  Globe Staff   

  January 23, 2012

There is big business in making sense of massive amounts of information
generated on the Web, from online sales to Facebook posts, and Massachusetts
is fast becoming a hub for what is deemed the next big trend in technology:
analyzing data.

The state is home to more than 100 companies that focus on what is known as
"big data'' - the ability to quickly dissect and understand the flood of
digitized information. The firms range from small Cambridge start-ups like
Hadapt Inc. to EMC Corp., one of the area's largest technology employers.

Employment in this sector is expected to more than double over the next six
years, adding an estimated 15,000 jobs, according to a report to be released
today by the Mass Technology Leadership Council.

"We have an opportunity for Massachusetts to be a real center of gravity
around big data,'' said Tom Hopcroft, the council's chief executive. "In
Massachusetts, we have decades of really hardcore database expertise going
back to the 1960s, and a lot of this knowledge has been retained here.''

Bluefin Labs Inc. is one of the companies expected to grow. The Cambridge
start-up is trying to make sense of a big chunk of social media-generated
data by analyzing 3 billion online comments about television every month.

Big data's potential benefits for marketers drive much of the boom.

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The idea is to measure the collective mood about everything from commercials
to reality TV to political debates in a way traditional polling or
television ratings cannot. For instance, Bluefin used social media comments
to gauge viewer attitudes toward Republicans presidential candidates during
a recent debate. 

"Literally, on our screens, we can see those comments in social media in
real time,'' said Tom Thai, Bluefin's vice president of business
development. "The really cool thing about social data is that you can see
more than just volume,'' he said. "What were people saying about their
shows? What were they saying about their competitors?''

In addition to the state's 100 big data companies, the report notes, another
20 start-ups have recently emerged for a piece of the data and analytics
marketplace, which McKinsey Global Institute recently estimated was worth
$64 billion. In the past several years, local tech companies have been
acquired for their data analytics know-how by the likes of IBM, Oracle, and
Hewlett Packard for price tags that have reached into the billions.

Michael Stonebraker, adjunct professor at the Massachusetts Institute of
Technology and one of the area's information-crunching pioneers, said there
has long been a deep talent pool in data management in the state. But new
technology has moved the field beyond traditional database systems from
Oracle or IBM.

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The growth is being driven not only by the digital information collected via
the Web, but advancements that allow computers and software engineers to
analyze all sorts of unstructured data moving swiftly and growing fast. The
information comes every second from sensors capturing health data, GPS
systems and location software that record whereabouts, and ATMs that record
financial transactions. 

"Everywhere you look, people are drowning in big data,'' said Stonebraker,
who has helped start seven companies, including Paradigm4 Inc., VoltDB Inc.,
and Vertica, which was bought last year by Hewlett-Packard.

Ninety percent of the data stored on hard drives, on Internet servers, or in
big databases has been collected in just the past two years, according to
IBM.

"Think of information flows that would swamp a traditional database
structure,'' said Stephen O'Leary, managing director of Aeris Partners, a
mergers-and-acquisitions consulting firm, and a cochairman of Mass TLC. "We
are in an era in which social media is generating a tremendous amount of
data.''

Big data's potential benefits for marketers are driving much of the boom.
Venture capital firms invested almost $1 billion in data companies from 2008
through 2010, according to 451 Research. In November, Accel Partners, an
early investor in Facebook, announced a $100 million fund for big data
start-ups.

"Data has always been at the heart of every enterprise's ability to
compete,'' said Accel's Ping Li, who manages the fund. With the ability to
break down and explore larger data sets than ever before, and often in real
time, the possibilities are just beginning to be understood. "Imagine if you
can analyze your sales trends for the past 10 years,'' he said.

What Echo Nest Corp., a Somerville company, is doing with big data
technology is figuring out what types of songs people will like, based on
their musical preferences. It has broken down 35 million songs into 1,000
different parts - bars, beats, tempo - to create a music intelligence engine
to power music streaming services like Spotify. 

"We hope to be the data layer for music,'' said Jim Lucchese, Echo Nest's
chief executive. "Our job is to help our customers understand music
consumption and music content. And that's a big data problem.''

One of the most significant aspects of big data is how it applies to
science, health care, and drug discovery, said Marilyn Matz, chief executive
of Paradigm4, a Waltham big data company. For instance, she said, big data
companies are helping life sciences researchers mine genetic sequencing
information to spot abnormalities or find patterns in all the bits of data
collected from medical equipment.

Big data's explosion is also driving demand for software engineers with the
talent to understand the complex algorithms these companies use. Sixty-five
percent of data professionals expect a deficit in expertise in the field
over the next five years, according to a December report from EMC Corp.

With every technology trend, from blogging to social media to cloud
computing, there is a degree of hype surrounding big data, said Boris
Evelson, a technology analyst at Forrester Research in Cambridge. 

"At the end of the day,'' he said, "on the left side it's all bits and
bites, in the middle it's a fuzzy cloud, and on the right it's the
businessman trying to make sense of it all.''

 

Neil Callahan

Rosemont Seneca Partners

401 Greenwich Street, Suite 400

New York, New York 10013

212-796-4037 (o)

917-945-9516 (m)

866-749-8879 (f)

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