Should investors dig big data?

New digital business models are creating a torrent of data volume growth from new sources. In 2014 IBM estimated that 90% of the world’s data had been generated in just the past two years. This explosion in ‘big data’ is creating new opportunities for companies that can monetise the data they collect, store and analyse from sources like social media and e-commerce transactions.

These positive changes are not happening in a vacuum, however. The large, legacy technology vendors still have considerable home-field advantages, including access to large sources of capital and an ability to lock users and their data into proprietary ecosystems. Given the shift to the cloud, we view open source technology and its ability to reduce the friction from moving data between systems as a key, new opportunity.  We also believe the mergers & acquisitions cycle will continue as a competitive response from these large, legacy technology vendors.

Rob Zeuthen – The Boston Company Asset Management, A BNY Mellon company

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