Published Date : Apr 07, 2016
In the age of information technology, the availability of massive data has led to the innovation of tools to analyze data. Earlier, data analysis referred to focussing on metrics that could be easily measured. However, new technologies have made it possible to analyze a wider selection of data sources. Text analytics, also referred as text mining, is one of the key data analysis techniques that can transform raw text into structured data that in turn, can be measured and analyzed. For example, text analytics can help to quantify texts such as customer service interactions, product reviews, or comments regarding a product and transform it into measurable data.
It has been observed that various enterprises are increasingly adopting cloud-based text analytics solutions as they increase the flexibility and scalability of data analysis process. In the coming years, cloud-based text analytics solutions are expected to be high in demand. Currently, on-premise text analytics solutions dominate the overall market.
Big Players Focussing on Acquisitions and Partnerships to Build Expertise on Text Analytics
In October 2014, Microsoft acquired Israel-based text analysis startup Equivio Ltd. through a deal worth over US$300 mn. Similarly, in April last year, IBM Corp. bought AlchemyAPI, a startup selling software that analyzes unstructured data. The small startup firms have the knowledge and expertise but they lack funds to commercialize their products. This creates an opportunity for the larger market players to put forth acquisition proposals to these start-ups. Recently Sage Software has partnered with Medallia to use the latter’s text analytics technology. Medallia’s text analytics technology automates the discovery of customer feedback topics that traditional text analytics approaches might have missed.