Opportunities for Pure Play Business Intelligence Software Vendors Lay Ahead, According to IDC
FRAMINGHAM, MA – JULY 30, 2003 – The business intelligence (BI) software market is forecast to increase to $4.5 billion in 2007, at a compound annual growth rate (CAGR) of 4.1%, according to a new report from IDC. While this is significantly less than the double-digit growth experienced in 1999 and 2000, opportunities still lay ahead for pure-play, best-of-breed business intelligence (BI) software vendors.
The lower growth rates anticipated are primarily due to the affects of two major trends in this market: embedding of business intelligence functionality in the relational database systems and a shift from business intelligence tools to analytic applications revenue for several leading BI and ERP vendors. Although these trends put negative pressure on the business intelligence software market, it is expected to continue to coexist with the analytic applications market and may open new opportunities for pure-play, best-of-breed BI vendors to fill the potential gap left by the larger BI and ERP companies.
"Business intelligence software has become an attractive toolset for organizations engaged in efforts to extend the value they derive from existing investments in other enterprise applications due to shorter implementation times and quick ROI," said Dan Vesset, research manager for IDC's Analytics and Data Warehousing Software service.
Vendors who provide business intelligence software should consider the following guidance to take advantage of the
future growth of this market:
Establish closer partnerships with ERP, CRM, and SCM vendors by expanding existing alliances in these enterprise software markets beyond the top vendors.
Continue to improve the flexibility in functionality of tools to compete with the pervasive use of spreadsheets for analytic and reporting tasks.
Position business intelligence software as tools that leverage existing investment in IT infrastructure, provide strong ROI, and support all levels of decision making, optimization, and information delivery processes and financial transparency issues.
IDC's recently published document, Worldwide Business Intelligence Forecast and Analysis, 2003-2007 (IDC #29519),
examines the business intelligence (BI) software market for the period 2002-2007, with vendor revenue trends and market growth forecasts for 2003-2007. Profiles of leading vendors identifying successful characteristics are also included.
To purchase this document, call IDC's sales hotline at 508-988-7988 or email email@example.com.
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.
IDC is a division of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com
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