BI software market growth rate slowed in 2012
SAP holds onto the top spot in terms of market share, Gartner says
IDG News Service - The business intelligence software market cooled off a bit in 2012 after "a few historic banner years" of spending growth, due to difficult economic conditions and even confusion over industry buzzwords such as "big data," according to a report from analyst firm Gartner.
Global spending on BI software was $13.1 billion last year, a 6.8% rise over 2011's $12.3 billion total, but the pace of growth slowed considerably from the approximately 17% rate experienced in 2011, Gartner said in the report released Thursday.
"While this seems a dramatic drop, it was in line with our forecasts published during 2012," analysts Dan Sommer and Bhavish Sood wrote in the report.
However, "global macroeconomic conditions cannot be ignored," the report adds. "They led to increased budget scrutiny of both net-new as well as maintenance spending across the entire IT space, and BI was no exception."
Business for BI was especially more difficult in Europe and Latin America last year, but not in the Middle East, Africa and emerging markets in Asia-Pacific, "which are still in ramp-up mode," the report states.
Meanwhile, "increased confusion around new hype terms and where the tangible benefits lie most likely contributed to a slowing of sales cycles in the BI space while budget holders are trying to identify the tooling and business value," according to Gartner.
Moreover, spending on core BI infrastructure platforms "showed flat to single-digit growth" last year, with more spending happening outside of IT at the departmental level as business units seek analytic applications and data-discovery tools geared to their particular needs, according to the report.
In terms of market share, SAP held onto the top spot in Gartner's survey with about $2.9 billion in BI revenue, although growth year-over-year was only 0.6%.
This is partly because its BusinessObjects software is "losing momentum" but also due to the fact that SAP's portfolio is very broad and "falls outside of the remit of what is tracked here," Gartner's report states.
Still, SAP has a "trump card" for BI in the form of a highly loyal user base and a strong sales organization and partner ecosystem, Gartner said.
Oracle came in second with $1.95 billion, followed by IBM with $1.62 billion, SAS Institute at $1.6 billion and Microsoft with about $1.19 billion.
Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com
- Automating Cost Transparency By making all of the costs of running IT transparent, IT can change the way business units consume IT resources, drive down total...
- Forrester: The Business Technology Value Scorecard The "Business Technology Value Scorecard" paper proposes four categories of KPIs as the basis for a common language of metrics between IT leaders...
- Cisco Case Study Before Cisco could effectively manage the business of IT, the company needed to improve the way it accounted for the cost and performance...
- IT Financial Metrics Primer This Executive Brief details financial and non-financial metrics that IT financial managers must use to foster conversations with business stakeholders.
- Maximizing Availability for the Modern Data Center Check out this information-packed resource center for help in maximizing the availability of your data center - from overcoming challenges to choosing the...
- Fundamentals of the Unified Communications BE 6000 The Cisco Business Edition 6000 delivers the superior performance, system redundancy, and broad application integration you need. Well suited for businesses with 100... All Business Intelligence/Analytics White Papers | Webcasts
Our new bimonthly Internet of Things newsletter helps you keep pace with the rapidly evolving technologies, trends and developments related to the IoT. Subscribe now and stay up to date!