According to Google's Executive Chairman Eric Schmidt, 2014 will
herald the "arrival of big data and machine intelligence." A new
born baby is now exposed to 60,000 times more information than is
contained in the U.S. Library Of Congress.
"Big Data" is a nascent technological endeavor that organizes
the volume and velocity of data into practical business utility.
Big Data revenues are growing six times faster than the over-all IT
sector.
AnalytixInsight (TSX.V:ALY) has developed proprietary technology
that algorithmically analyzes big financial data and distills it
into actionable insights. ALY's flagship product CapitalCube
provides high-quality financial research and analysis for
investors, financial portholes and media. The content is
algorithmically generated with over 100 billion data computations
performed daily to analyze over 50,000 equities and 1500 ETFs.
The software pours through financial statements and company
filings, giving a real-time birds-eye view of a company while
unearthing hidden subplots that could radically increase investor
risks or rewards.
Big Data success stories include Database and Middleware Sales
company Oracle Corp– up 26% in the last 12 months; Information
Management Integrator Attunity – up 44% in the last 12 months; and
Virtual Infrastructure Technologies provider EMC Corp – up
100% in the last 5 years.
AnalytixInsight has established licensing agreements with
financial news agencies, web portals the London Stock Exchange, Dow
Jones and its subsidiaries – and mostly recently Samsung – that has
made the CapitalCube mobile application Stockwall available on all
new devices, exposing the platform to Samsung's millions of
users.
"We had the Samsung launch at the end of May on the floor of the
Italian Stock Exchange," states AnalytixInsight Chairman Prakash
Hariharan in an exclusive interview with Financial Press, "About
200 guests attended. We viewed it as a precursor to a
pan-European launch. The response to the pre-loaded app was
overwhelming, and Samsung declared us one of the most innovative
companies they have worked with. Stockwall will be a flagship
financial platform for Samsung that will be a pre-loaded
application in all Samsung devices including Smart TVs."
Samsung accounts for about 30% of global Smartphone and Smart TV
sales.
"There are about 250 plus million Samsung devices," confirms
Hariharan, "If you look at the numbers, the revenue potential, it
is definitely a blue-sky scenario. But 'user engagement' is
also critical because one thing we know from companies like
Facebook and WhatsApp is that engaged users can eventually be
monetized. A preloaded financial platform in Samsung devices will
be the beginning of a new initiative for Samsung in the financial
domain and enables Analytixinsight to provide the driving
content."
ALY's technology is "Industry Agnostic"; it is not limited to
financial analysis and is scalable to other data-driven industries
like e-commerce, communications, healthcare, insurance or
government. But Hariharan has identified the financial sector as
the first in a series of initiatives planned for the company.
"I discovered that financial data providers charge staggering
sums of money to provide some basic services like real-time
quotes," stated Hariharan, "It is obvious that the chain needed to
be compressed. I predict that the margins for using financial
data as a commodity will continue to shrink. The changing
landscape provides a fantastic opportunity for Analytixinsight,
because we are able to process financial data and generate an
actionable narrative, for an extremely low-cost point."
The Stockwall app, downloadable from the Samsung Apps store,
allows users to view real-time stock prices, information, research
and analysis from more than 20 major world stock markets on more
than 50,000 listed companies across the globe.
Samsung is making a big push into the mobile space in the
Business to Consumer (B2C) and Business to Business (B2B)
applications – which are looking to big data analytics to provide
flow of information.
The creative and financial synergies between Samsung and
AnalytixInsight are appealing. Samsung enters the financial
data space with a white labelled tool already installed on their
devices, and ALY partners with a hardware leader that is selling
millions of cellphones and Smart TVs in eighty countries around the
world.
The deal with Samsung is a big opportunity for a young
technology company, but Hariharan does not plan to grant
exclusivity to any one company. He envisions the Analytix
platform installed on a myriad of device brands.
"Our next big milestone is the execution of the Stockwall
launch," confirms Hariharan, "and we will providing regular updates
to the market about the number of downloads and user
engagement."
While the B2C and B2B side of ALY's business is likely to be the
short term catalyst, long term revenue growth may be in
content-licensing to institutional groups, retail investors, banks
and agencies who want to use ALY's technology for their own
applications. The B2B side is particularly appealing in this regard
for a content provider like Analytixinsight.
"There is a startling lack of mobile solutions for big data
providers," stated Hariharan, "You can see the world
changing. Apple TVs are merging content with
IPads. Netflix is changing the way dramatic TV is
watched. I envision similar changes with sports and business
news-casting and I believe ALY has an important role to play in
this transition."
Larry King recently sat down with Chaith Kondragunta, CEO of
AnalytixInsight to discuss investment research, big data, and the
services CapitalCube.com provides for investors.
The research firm IDC predicts that Big Data is going to
generate $16 billion in 2014.
ALY is currently trading at .39 with a market cap of $11.6
million.
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