Last week, we saw that the worldwide growth in analytics revenues would be pushed by developments in big data, social business and mobile spaces. Running parallel to this, Gartner says growth will be in sales of business intelligence software.
Given the moribund state of the economies in many industrialized nations, that there is any growth at all is remarkable. That this growth is in the high single digits is even more so.
According to the figures, which have just been released by Gartner in the run-up to its business intelligence summits in the US and Australia next month, growth over the course of this year will hit seven percent which while good, is still a long way off the 16 percent growth that occurred in 2011 on the back of sales cycles and multi-million-dollar end-to-end BI deals.
But that was then. For now, worldwide business intelligence (BI) software revenue will reach US$ 13.8 billion in 2013 and is forecast to reach US$ 17.1 billion by 2016. This is surprising for two reasons. The first is just the sheer amount of money that is still out there. Second, it is clear that there is a huge unmet market demand, despite the fact that BI is one of the older "new" technologies.
Business Intelligence Demand
Kurt Schlegel explains this demand in terms of the enterprise areas to which business intelligence has yet to reach. Most of the traditional areas like finance and sales have had the benefit of these technologies for some time, but other areas haven't been as lucky.
Although this is a mature market and has been a top CIO priority for years, there is still a lot of unmet demand. Every company has numerous subject areas — such as HR, marketing, social and so on — that have yet to even start with BI and analytics… but there is still a lot of growth expected for diagnostic, predictive and prescriptive deployments…"
He also suggests that many SMBs have not even looked at these initiatives yet and that this will push the market for at least another four years.
Earlier in the month, we looked at CRM and the 20 technology areas that are growing in the CRM ecosystem. We noted that running close to this was analytics and business intelligence where enterprises are looking to develop as much customer insight as they can from their enterprise data. It is this information that is driving the BI market, not just for customer insights, but also for creating and developing new business models.
The emergence of data-as-a-service is also on the horizon and is likely to push the market for BI and analytics platforms as organizations start moving towards industry-specific data service bundles that include a narrow set of data with BI and analytics capabilities embedded.
As a result, Gartner says, vendors will be looking to embed a BI and analytics software capabilities into their DaaS offerings. Gartner will be discussing this in more detail at its BI conferences over the next four weeks.