Megabyte Miner

For Usama Fayyad, co-founder and CEO of Kirkland, Wash.-based digiMine, data mining has been a career-long endeavor. He’s the former head of Microsoft Research’s data mining and exploration group, where he noticed that most marketers were not using most of their companies’ stored data. DigiMine’s service is his answer to that situation.

Here’s how it works: DigiMine installs its digiMine Data Slurper on a client’s server. The Data Slurper then mines, compresses, and encrypts the data from your warehouse, which are then shipped to digiMine’s data center. Once there, the data is processed through digiMine’s algorithms, and reports are generated. These can include a variety of statistics, from customer behavior data to site visitation numbers. DigiMine also features an ad campaign resource management function, called Campaign Response Analytics, that tracks different metric across multiple advertising channels. The fee for the service starts at $10,000 per month., a recipe and grocery planning Website, uses the service. Says Michelle McEttrick, vice president of marketing for Seattle-based, “We can observe which times of the day are the most active, what area of the site users are searching for the most, how users were referred, and which site features are most popular.”

IDC analyst Dan Vesset says that while the company’s business model is strong, some companies might be wary of shipping their customer data to an offsite server. Some companies aren’t going to go for this because security is an issue,” he says. “Passing data from one server to another can make some nervous.”

Source: Business 2.0


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