Analytic Applications and Personalization Will Bring Companies Closer to Their Customers, IDC Says

FRAMINGHAM, MA – JANUARY 2, 2001 – The need for new and established companies to measure, predict, and optimize business performance has fueled demand for analytic application solutions. According to IDC, worldwide revenue in this market space is expected to accelerate at a compound annual growth rate of 28%, from $2 billion in 1999 to more than $6 billion in 2004.


"To succeed in today's business and ebusiness environments, companies must look at ways to optimize financial performance, customer relationships, and the production and delivery of products and services," said Henry Morris, vice president for IDC's Data Warehousing and Information Access program. "Analytic applications software automates the planning, forecasting, and predictive modeling activities for companies, giving them the edge they need over the competition."

According to IDC, the overall market for analytic applications remains highly fragmented. In 1999, the top-five vendors comprised only 30% of the market. "The fragmentation is partly due to the diversity of the market included within the overall analytic applications space and the number of new entrants to the marketplace," Morris said.

IDC believes customer relationship management (CRM) applications will remain the fastest-growing segment. Revenue, which grew 75% in 1999, is projected to surpass $2.3 billion in 2004. Driving its growth is Web-site analysis, the success of which is linked to personalization. Personalization is the driving force behind turning Web browsers into buyers.

IDC recently published a series of reports regarding analytic applications and personalization. Know Thy Customer: Personalization Applications Market Analysis (IDC #B23505) and Telescopes of Cyberspace: Web-Site Analysis Applications Market (IDC #B23515) focus on the CRM applications market, where analytics is increasingly being used to drive personalization. Overviews of the landscape, drivers, and trends in this market are presented. Current key and emerging vendors are profiled. Analytic Applications Market Forecast and Analysis, 2000–2004 (IDC #B23498) covers the worldwide market for packaged analytic applications. The report is divided into the following sections: financial and business performance management, CRM, and operations/production optimization. Five-year market forecasts, as well as revenue and market shares for leading software vendors worldwide, are also provided. Key trends are discussed.

To purchase any of these reports, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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