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Ajay- Why did you choose Rapid Miner and R? What were the other software alternatives you considered and discarded?
Analyst- We considered most of the other major players in statistics/data mining or enterprise BI. However, we found that the value proposition for an open source solution was too compelling to justify the premium pricing that the commercial solutions would have required. The widespread adoption of R and the variety of packages and algorithms available for it, made it an easy choice. We liked RapidMiner as a way to design structured, repeatable processes, and the ability to optimize learner parameters in a systematic way. It also handled large data sets better than R on 32-bit Windows did. The GUI, particularly when 5.0 was released, made it more usable than R for analysts who weren’t experienced programmers.
Ajay- What analytics do you do think Rapid Miner and R are best suited for?
Analyst- We use RM+R mainly for sports analysis so far, rather than for more traditional business applications. It has been quite suitable for that, and I can easily see how it would be used for other types of applications.
Ajay- Any experiences as an enterprise customer? How was the installation process? How good is the enterprise level support?
Analyst- Rapid-I has been one of the most responsive tech companies I’ve dealt with, either in my current role or with previous employers. They are small enough to be able to respond quickly to requests, and in more than one case, have fixed a problem, or added a small feature we needed within a matter of days. In other cases, we have contracted with them to add larger pieces of specific functionality we needed at reasonable consulting rates. Those features are added to the mainline product, and become fully supported through regular channels. The longer consulting projects have typically had a turnaround of just a few weeks.
Ajay- What challenges if any did you face in executing a pure open source analytics bundle ?
Analyst- As Rapid-I is a smaller company based in Europe, the availability of training and consulting in the USA isn’t as extensive as for the major enterprise software players, and the time zone differences sometimes slow down the communications cycle. There were times where we were the first customer to attempt a specific integration point in our technical environment, and with no prior experiences to fall back on, we had to work with Rapid-I to figure out how to do it. Compared to the what traditional software vendors provide, both R and RM tend to have sparse, terse, occasionally incomplete documentation. The situation is getting better, but still lags behind what the traditional enterprise software vendors provide.
Ajay- What are the things you can do in R ,and what are the things you prefer to do in Rapid Miner (comparison for technical synergies)
Analyst- Our experience has been that RM is superior to R at writing and maintaining structured processes, better at handling larger amounts of data, and more flexible at fine-tuning model parameters automatically. The biggest limitation we’ve had with RM compared to R is that R has a larger library of user-contributed packages for additional data mining algorithms. Sometimes we opted to use R because RM hadn’t yet implemented a specific algorithm. The introduction the R extension has allowed us to combine the strengths of both tools in a very logical and productive way.
In particular, extending RapidMiner with R helped address RM’s weakness in the breadth of algorithms, because it brings the entire R ecosystem into RM (similar to how Rapid-I implemented much of the Weka library early on in RM’s development). Further, because the R user community releases packages that implement new techniques faster than the enterprise vendors can, this helps turn a potential weakness into a potential strength. However, R packages tend to be of varying quality, and are more prone to go stale due to lack of support/bug fixes. This depends heavily on the package’s maintainer and its prevalence of use in the R community. So when RapidMiner has a learner with a native implementation, it’s usually better to use it than the R equivalent.
Crowd Analytix- the Bangalore based Indian startup is moving fast in the
data scientist contest space (so watch out Kaggle!! )
Churn (loss of customers to competition) is a problem for telecom companies because it is more expensive to acquire a new customer than to keep your existing one from leaving. This contest is about enabling churn reduction using analytics.
To join, go to – http://www.crowdanalytix.com/contests/why-customer-churn/
Here is an interview with James G Kobielus, who is the Senior Program Director, Product Marketing, Big Data Analytics Solutions at IBM. Special thanks to Payal Patel Cudia of IBM’s communication team,for helping with the logistics for this.
Ajay -What are the specific parts of the IBM Platform that deal with the three layers of Big Data -variety, velocity and volume
James-Well first of all, let’s talk about the IBM Information Management portfolio. Our big data platform addresses the three layers of big data to varying degrees either together in a product , or two out of the three or even one of the three aspects. We don’t have separate products for the variety, velocity and volume separately.
Let us define these three layers-Volume refers to the hundreds of terabytes and petabytes of stored data inside organizations today. Velocity refers to the whole continuum from batch to real time continuous and streaming data.
Variety refers to multi-structure data from structured to unstructured files, managed and stored in a common platform analyzed through common tooling.
For Volume-IBM has a highly scalable Big Data platform. This includes Netezza and Infosphere groups of products, and Watson-like technologies that can support petabytes volume of data for analytics. But really the support of volume ranges across IBM’s Information Management portfolio both on the database side and the advanced analytics side.
For real time Velocity, we have real time data acquisition. We have a product called IBM Infosphere, part of our Big Data platform, that is specifically built for streaming real time data acquisition and delivery through complex event processing. We have a very rich range of offerings that help clients build a Hadoop environment that can scale.
Our Hadoop platform is the most real time capable of all in the industry. We are differentiated by our sheer breadth, sophistication and functional depth and tooling integrated in our Hadoop platform. We are differentiated by our streaming offering integrated into the Hadoop platform. We also offer a great range of modeling and analysis tools, pretty much more than any other offering in the Big Data space.
Attached- Jim’s slides from Hadoop World
Ajay- Any plans for Mahout for Hadoop
Jim- I cant speak about product plans. We have plans but I cant tell you anything more. We do have a feature in Big Insights called System ML, a library for machine learning.
Ajay- How integral are acquisitions for IBM in the Big Data space (Netezza,Cognos,SPSS etc). Is it true that everything that you have in Big Data is acquired or is the famous IBM R and D contributing here . (see a partial list of IBM acquisitions at at http://www.ibm.com/investor/strategy/acquisitions.wss )
Jim- We have developed a lot on our own. We have the deepest R and D of anybody in the industry in all things Big Data.
For example – Watson has Big Insights Hadoop at its core. Apache Hadoop is the heart and soul of Big Data (see http://www-01.ibm.com/software/data/infosphere/hadoop/ ). A great deal that makes Big Insights so differentiated is that not everything that has been built has been built by the Hadoop community.
We have built additions out of the necessity for security, modeling, monitoring, and governance capabilities into BigInsights to make it truly enterprise ready. That is one example of where we have leveraged open source and we have built our own tools and technologies and layered them on top of the open source code.
Yes of course we have done many strategic acquisitions over the last several years related to Big Data Management and we continue to do so. This quarter we have done 3 acquisitions with strong relevance to Big Data. One of them is Vivisimo (http://www-03.ibm.com/press/us/en/pressrelease/37491.wss ).
Vivisimo provides federated Big Data discovery, search and profiling capabilities to help you figure out what data is out there,what is relevance of that data to your data science project- to help you answer the question which data should you bring in your Hadoop Cluster.
We also did Varicent , which is more performance management and we did TeaLeaf , which is a customer experience solution provider where customer experience management and optimization is one of the hot killer apps for Hadoop in the cloud. We have done great many acquisitions that have a clear relevance to Big Data.
Netezza already had a massively parallel analytics database product with an embedded library of models called Netezza Analytics, and in-database capabilties to massively parallelize Map Reduce and other analytics management functions inside the database. In many ways, Netezza provided capabilities similar to that IBM had provided for many years under the Smart Analytics Platform (http://www-01.ibm.com/software/data/infosphere/what-is-advanced-analytics/ ) .
There is a differential between Netezza and ISAS.
ISAS was built predominantly in-house over several years . If you go back a decade ago IBM acquired Ascential Software , a product portfolio that was the heart and soul of IBM InfoSphere Information Manager that is core to our big Data platform. In addition to Netezza, IBM bought SPSS two years back. We already had data mining tools and predictive modeling in the InfoSphere portfolio, but we realized we needed to have the best of breed, SPSS provided that and so IBM acquired them.
Cognos- We had some BI reporting capabilities in the InfoSphere portfolio that we had built ourselves and also acquired for various degrees from prior acquisitions. But clearly Cognos was one of the best BI vendors , and we were lacking such a rich tool set in our product in visualization and cubing and so for that reason we acquired Cognos.
There is also Unica – which is a marketing campaign optimization which in many ways is a killer app for Hadoop. Projects like that are driving many enterprises.
Ajay- How would you rank order these acquisitions in terms of strategic importance rather than data of acquisition or price paid.
Jim-Think of Big Data as an ecosystem that has components that are fitted to particular functions for data analytics and data management. Is the database the core, or the modeling tool the core, or the governance tools the core, or is the hardware platform the core. Everything is critically important. We would love to hear from you what you think have been most important. Each acquisition has helped play a critical role to build the deepest and broadest solution offering in Big Data. We offer the hardware, software, professional services, the hosting service. I don’t think there is any validity to a rank order system.
Ajay-What are the initiatives regarding open source that Big Data group have done or are planning?
Jim- What we are doing now- We are very much involved with the Apache Hadoop community. We continue to evolve the open source code that everyone leverages.. We have built BigInsights on Apache Hadoop. We have the closest, most up to date in terms of version number to Apache Hadoop ( Hbase,HDFS, Pig etc) of all commercial distributions with our BigInsights 1.4 .
We have an R library integrated with BigInsights . We have a R library integrated with Netezza Analytics. There is support for R Models within the SPSS portfolio. We already have a fair amount of support for R across the portfolio.
Ajay- What are some of the concerns (privacy,security,regulation) that you think can dampen the promise of Big Data.
Jim- There are no showstoppers, there is really a strong momentum. Some of the concerns within the Hadoop space are immaturity of the technology, the immaturity of some of the commercial offerings out there that implement Hadoop, the lack of standardization for formal sense for Hadoop.
There is no Open Standards Body that declares, ratifies the latest version of Mahout, Map Reduce, HDFS etc. There is no industry consensus reference framework for layering these different sub projects. There are no open APIs. There are no certifications or interoperability standards or organizations to certify different vendors interoperability around a common API or framework.
The lack of standardization is troubling in this whole market. That creates risks for users because users are adopting multiple Hadoop products. There are lots of Hadoop deployments in the corporate world built around Apache Hadoop (purely open source). There may be no assurance that these multiple platforms will interoperate seamlessly. That’s a huge issue in terms of just magnifying the risk. And it increases the need for the end user to develop their own custom integrated code if they want to move data between platforms, or move map-reduce jobs between multiple distributions.
Also governance is a consideration. Right now Hadoop is used for high volume ETL on multi structured and unstructured data sources, or Hadoop is used for exploratory sand boxes for data scientists. These are important applications that are a majority of the Hadoop deployments . Some Hadoop deployments are stand alone unstructured data marts for specific applications like sentiment analysis like.
Hadoop is not yet ready for data warehousing. We don’t see a lot of Hadoop being used as an alternative to data warehouses for managing the single version of truth of system or record data. That day will come but there needs to be out there in the marketplace a broader range of data governance mechanisms , master data management, data profiling products that are mature that enterprises can use to make sure their data inside their Hadoop clusters is clean and is the single version of truth. That day has not arrived yet.
One of the great things about IBM’s acquisition of Vivisimo is that a piece of that overall governance picture is discovery and profiling for unstructured data , and that is done very well by Vivisimo for several years.
What we will see is vendors such as IBM will continue to evolve security features inside of our Hadoop platform. We will beef up our data governance capabilities for this new world of Hadoop as the core of Big Data, and we will continue to build up our ability to integrate multiple databases in our Hadoop platform so that customers can use data from a bit of Hadoop,some data from a bit of traditional relational data warehouse, maybe some noSQL technology for different roles within a very complex Big Data environment.
That latter hybrid deployment model is becoming standard across many enterprises for Big Data. A cause for concern is when your Big Data deployment has a bit of Hadoop, bit of noSQL, bit of EDW, bit of in-memory , there are no open standards or frameworks for putting it all together for a unified framework not just for interoperability but also for deployment.
There needs to be a virtualization or abstraction layer for unified access to all these different Big Data platforms by the users/developers writing the queries, by administrators so they can manage data and resources and jobs across all these disparate platforms in a seamless unified way with visual tooling. That grand scenario, the virtualization layer is not there yet in any standard way across the big data market. It will evolve, it may take 5-10 years to evolve but it will evolve.
So, that’s the concern that can dampen some of the enthusiasm for Big Data Analytics.
You can read more about Jim at http://www.linkedin.com/pub/james-kobielus/6/ab2/8b0 or
follow him on Twitter at http://twitter.com/jameskobielus
You can read more about IBM Big Data at http://www-01.ibm.com/software/data/bigdata/
Amazon gets some competition, and customers should see some relief, unless Google withdraws commitment on these products after a few years of trying (like it often does now!)
|Machine Type Pricing|
|Configuration||Virtual Cores||Memory||GCEU *||Local disk||Price/Hour||$/GCEU/hour|
|n1-standard-1-d||1||3.75GB ***||2.75||420GB ***||$0.145||0.053|
|n1-standard-8-d||8||30GB||22||2 x 1770GB||$1.16||0.053|
|Egress to the same Zone.||Free|
|Egress to a different Cloud service within the same Region.||Free|
|Egress to a different Zone in the same Region (per GB)||$0.01|
|Egress to a different Region within the US||$0.01 ****|
|Inter-continental Egress||At Internet Egress Rate|
|Internet Egress (Americas/EMEA destination) per GB|
|0-1 TB in a month||$0.12|
|Internet Egress (APAC destination) per GB|
|0-1 TB in a month||$0.21|
|Persistent Disk Pricing|
|Provisioned space||$0.10 GB/month|
|Snapshot storage**||$0.125 GB/month|
|IO Operations||$0.10 per million|
|IP Address Pricing|
|Static IP address (assigned but unused)||$0.01 per hour|
|Ephemeral IP address (attached to instance)||Free|
** coming soon
*** 1GB is defined as 2^30 bytes
**** promotional pricing; eventually will be charged at internet download rates
Google Prediction API
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Learn how you can use Prediction API to build customer sentiment analysis, spam detection or document and email classification.
Google Translation API
Use Google Translate API to build multilingual apps and programmatically translate text in your webpage or application.
Translate text into other languages programmatically
Use the familiar RESTful interface
Take advantage of Google’s powerful translation algorithms
Build multilingual apps
Learn how you can use Translate API to build apps that can programmatically translate text in your applications or websites.
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Here is an interview with Jason Kuo who works with SAP Analytics as Group Solutions Marketing Manager. Jason answers questions on SAP Analytics and it’s increasing involvement with R statistical language.
Ajay- What made you choose R as the language to tie important parts of your technology platform like HANA and SAP Predictive Analysis. Did you consider other languages like Julia or Python.
Jason- It’s the most popular. Over 50% of the statisticians and data analysts use R. With 3,500+ algorithms its arguably the most comprehensive statistical analysis language. That said,we are not closing the door on others.
Ajay- When did you first start getting interested in R as an analytics platform?
Jason- SAP has been tracking R for 5+ years. With R’s explosive growth over the last year or two, it made sense for us to dramatically increase our investment in R.
Ajay- Can we expect SAP to give back to the R community like Google and Revolution Analytics does- by sponsoring Package development or sponsoring user meets and conferences?
Will we see SAP’s R HANA package in this year’s R conference User 2012 in Nashville
Jason- Yes. We plan to provide a specific driver for HANA tables for input of the data to native R. This planned for end of 2012. We’ll then review our event strategy. SAP has been a sponsor of Predictive Analytics World for several years and was indeed a founding sponsor. We may be attending the year’s R conference in Nashville.
Ajay- What has been some of the initial customer feedback to your analytics expansion and offerings.
Jason- We have completed two very successful Pilots of the R Integration for HANA with two of SAP’s largest customers.
Jason has over 15 years of BI and Data Warehousing industry experience. Having worked at Oracle, Business Objects, and now SAP, Jason has been involved in numerous technical marketing roles involving performance management dashboards, information management, text analysis, predictive analytics, and now big data. He has a bachelor’s of science in operations research from the University of Michigan.
RFM stands for
- Recency – How recently did the customer purchase?
- Frequency – How often do they purchase?
- Monetary Value – How much do they spend?
To create an RFM analysis, one creates categories for each attribute. For instance, the Recency attribute might be broken into three categories: customers with purchases within the last 90 days; between 91 and 365 days; and longer than 365 days. Such categories may be arrived at by applying business rules, or using a data mining technique, such as CHAID, to find meaningful breaks.
If you are new to RFM or need more step by step help, please read here
and here is R code- note for direct marketing you need to compute Monetization based on response rates (based on offer date) as well
##Creating Random Sales Data of the format CustomerId (unique to each customer), Sales.Date,Purchase.Value sales=data.frame(sample(1000:1999,replace=T,size=10000),abs(round(rnorm(10000,28,13)))) names(sales)=c("CustomerId","Sales Value") sales.dates <- as.Date("2010/1/1") + 700*sort(stats::runif(10000)) #generating random dates sales=cbind(sales,sales.dates) str(sales) sales$recency=round(as.numeric(difftime(Sys.Date(),sales[,3],units="days")) ) library(gregmisc) ##if you have existing sales data you need to just shape it in this format rename.vars(sales, from="Sales Value", to="Purchase.Value")#Renaming Variable Names ## Creating Total Sales(Monetization),Frequency, Last Purchase date for each customer salesM=aggregate(sales[,2],list(sales$CustomerId),sum) names(salesM)=c("CustomerId","Monetization") salesF=aggregate(sales[,2],list(sales$CustomerId),length) names(salesF)=c("CustomerId","Frequency") salesR=aggregate(sales[,4],list(sales$CustomerId),min) names(salesR)=c("CustomerId","Recency") ##Merging R,F,M test1=merge(salesF,salesR,"CustomerId") salesRFM=merge(salesM,test1,"CustomerId") ##Creating R,F,M levels salesRFM$rankR=cut(salesRFM$Recency, 5,labels=F) #rankR 1 is very recent while rankR 5 is least recent salesRFM$rankF=cut(salesRFM$Frequency, 5,labels=F)#rankF 1 is least frequent while rankF 5 is most frequent salesRFM$rankM=cut(salesRFM$Monetization, 5,labels=F)#rankM 1 is lowest sales while rankM 5 is highest sales ##Looking at RFM tables
Note-you can also use quantile function instead of cut function. This changes cut to equal length instead of equal interval. or see other methods for finding breaks for categories.
I was wondering why the planet spends so much money in the $150-billion business process outsourcing industry, especially in voice calls to call centers.
If your iPhone Siri phone can be configured to answer any query, Why can’t it be configured to be a virtual assistant, customer support, marketing outbound or even a super charged call center interactive voice response .
Can we do and run some tests on this?