The BI, analytics and PM software market was the second-fastest growing sector in the overall worldwide enterprise software market in 2011.
Worldwide revenue in the
market for business intelligence, analytic applications and performance
management software rose 16 percent to $12.2 billion in 2011 from $10.5 billion
in 2010, according to a report from Gartner.
The BI, analytics and PM
software market was the second-fastest growing sector in the overall worldwide
enterprise software market in 2011, according to the report. SAP remained the
top vendor in combined worldwide BI, analytics and PM software revenue in 2011,
accounting for 24 percent of the market, followed by Oracle, SAS Institute, IBM
Oracle claimed 15.6 percent
of the market, with SAS Institute claiming 12.6 percent, IBM taking 12.1
percent and Microsoft rounding out the top five with 8.7 percent. Other vendors
claimed more than a quarter (27. 5 percent) of overall market share. IBM posted
the largest year-over-year growth, at 20.9 percent, followed by SAP, Oracle,
Microsoft and SAS Institute.
"BI, analytics and PM
have been identified as one way to filter vast and growing amounts of
information to reach insights and decisions in the digitized world, which is
transforming industry after industry," said Dan Sommer, principal analyst
The report said the top five
vendors continue to consolidate the market through a combination of
acquisition, integration and up-selling/cross-selling activities with their
stacks, resulting in their owning close to three-quarters of the market.
However, Gartner has identified more than 100 innovative vendors that are jostling
for position; some of them are in hyper-growth mode, suggesting the market is
rife with untapped opportunities.
"The strong growth was
driven by two major forces. The first is that IT continues to spend and earmark
money to BI, despite constrained budgetary environments. Gartner's 2012 CIO
survey showed that analytics and BI is the No. 1 technology priority for CIOs
in 2012. BI projects remain relatively shielded, while a healthy portion of any
discretionary money will be available for upcoming analytic initiatives,"
Sommer said. "Second, new buying centers are opening and expanding outside
of IT, in line-of-business initiatives, and taking an increasingly large stake
of the spending pie. Key drivers for this are self-service data discovery
tools, the race among vendors to provide business context through packaged
analytics, and CFOs taking a renewed interest in BI and Performance
In 2011, the market was
still dominated by traditional on-premises solutions linked to PCs; however,
major forces like cloud, mobile, social and big data will play a key role in
increased adoption over the next 10 years, Sommer said.
This will help shift the
center of gravity away from BI and analytics being only an enterprise IT push
adopted by key stakeholders in lines of business, to one with a strong focus on
the individual context, inside and outside the firewall. In 10 years, everyone
will be touched by analytics in a much denser and more frequent way than
today," he said.