Market Share Analysis: Business Intelligence, Analytics and Performance Management, Worldwide, 2010

Transcription

1 Market Analysis: Business Intelligence, Analytics and Performance Management, Worldwide, 00 Gartner Dataquest Research Note G00, Dan Sommer, Bhavish Sood, April 0, V RA 00 A complement to Market : All Software Markets, Worldwide, 00, this report analyzes 00 revenue growth rates and market share in the combined business intelligence (BI), analytics and performance management software market. The global recession that swept the world had a major impact on markets and for a period of time, especially the first half of, paralyzed them. While IT spending overall was negative during that time, the BI market managed to grow.% in. In 00, the global resurgence from stimulus packages, general improvement in the macroeconomy and new product releases contributed to a surge in spending. As a result, BI software growth accelerated to.% in 00. As BI spending has far surpassed IT budget growth overall for several years, it is clear that BI continues to be a technology at the center of information-driven initiatives in organizations. Vendors also continue to aggressively market their capabilities in this area, so revenue growth is as much a function of vendor push as demand pull. The market can now count itself among those select enterprise software areas that have more than $0 billion in software revenue. As a maturing area, a large portion of revenue now comes from maintenance. But a new wave of lighter-footprint data discovery and packaged analytics applications are challenging existing paradigms in organizations, and that demand is rarely driven by IT organizations. Hence, while some areas of IT-facing BI (namely, reporting, online analytical processing and ad hoc querying) are commoditized with resulting pricing erosion, new islands of buying centers are emerging in business units across organizations. Key Findings Market is growing, usage is increasing, and BI continues to be a top priority The rising tide lifts all boats, and most vendors in the space are growing. The BI market grew % one of the fastest rates in enterprise software to reach $0.5 billion in 00. Consolidation continues around the large vendors The four megavendors (SAP, Oracle, IBM and Microsoft) continue to consolidate the market, owning 59% share, an increase of percentage points, and surpassing market growth. In the BI platform and corporate performance management (CPM) suite segments, they hold close to two-thirds market share. Specialist vendors have mixed fortunes Most midsize to large traditional BI, CPM and analytic pure plays, while growing, are losing market share. MicroStrategy is the exception.

2 Data discovery/self-service BI vendors continue their land grab QlikTech, Tableau and Tibco, in particular, continue to be success stories and are challenging the conventional paradigms around how to use and deploy BI. Market conditions in the United States were fertile, and revenue there grew double digits, in line with emerging regions. This had a positive effect on worldwide growth. Packaged analytic applications and performance management grew stronger than maintenance-heavy BI platforms, benefiting from a rebound in discretionary spending. MARKET SHARE DATA Table provides market share for the top 5 BI, CPM and analytic applications/performance management vendors. Table provides market share by segment, and Table provides a revenue split by geography. Table. Business Intelligence, CPM and Analytic Applications/ Performance Management Market, and by Segment Table. Business Intelligence, CPM and Analytic Applications/Performance Management Market, Worldwide, Rank Rank 00 Change BI Vendors SAP,05,066, Oracle,5,50, SAS,7,5,7.0.7 IBM 997,6, Microsoft MicroStrategy FICO QlikTech Infor Information Builders Actuate Tibco Minitab Accelrys Tableau Others,9,, Total,99 9,7 0, Source: Gartner (March 0) 0 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner s prior written permission. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner s research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see Guiding Principles on Independence and Objectivity on its website,

3 ANALYSIS Overall Market Performance Analysis When looking at the dynamics affecting vendor share, one can see that and 00 had somewhat contrasting themes: From maintenance to license and from build to buy In, most vendors found it challenging to sell new licenses as discretionary spending in IT budgets was frozen. As a result, vendors came up with increasingly creative strategies to squeeze maintenance revenue out of their customers. Two examples were SAP s attempt at raising maintenance fees from % to % (it didn t happen in the end), and Actuate enforcing contractual fees for hardware upgrades that its existing customers did. The more maintenance-heavy BI platform segment grew the fastest in. Spending conditions improved in 00, and in addition, most BI vendors had seminal new product releases (IBM Cognos Business Intelligence version 0.; Oracle OBIEE g; new BI functionality in SQL Server, Point and Office; Information Builders WebFocus ; QlikView 0, ActuateOne and so forth), which drove renewed license selling efforts and released pent-up demand. Vendors selling analytic applications and CPM especially benefited as discretionary spending conditions improved, enabling those less mature segments to bounce back. Tactical to (also) strategic In, many strategic projects were put on hold. Tactical buying, largely in business units, was much more prominent, forcing vendors to focus on smaller deals. This benefited open-source and data discovery vendors. The trend of smaller projects in business units is not stopping. However, 00 saw some delayed and prolonged Table. Business Intelligence, CPM and Analytic Applications/Performance Management Market, and by Segment BI Platforms 5,699 5, CPM Suites,6, Analytic Apps/Performance Mgmt.,7, Total,99 9, Source: Gartner (March 0) Table. Business Intelligence, CPM and Analytic Applications/Performance Management Market, and by Region North America,05,6 5, Latin America Western Europe,60,, Eastern Europe Middle East and Africa Asia/Pacific Japan Total,99 9,7 0, Source: Gartner (March 0)

4 strategic discussions finally close, giving a boost to those vendors (such as megavendors and MicroStrategy) that can do larger scalable projects. Open-source growth slows Open-source vendors, such as Jaspersoft, Pentaho and Actuate BIRT, continued to grow faster than the market average but they didn t stand out as much as in, showing that, when money returns to the market and to proprietary products, open source loses some of its momentum. Open-source revenue from all vendors combined represents less than % of the market in monetary terms but is a significantly bigger footprint in terms of usage. SaaS not yet a disrupter BI sold as software as a service (SaaS) is still lacking real uptake. There are myriad startups in the space, but Gartner estimates that only one, Host Analytics, has broken the $0 million revenue threshold (in the CPM space). The larger vendors also offer alternatives here, but with very small minority stakes of their revenue. BI, analytics and performance management sold as SaaS does not exceed % of the total market. As shown in Table, growth rates across regions varied significantly during 00. The traditional characteristics of emerging regions by default growing faster cannot be applied to this year. Rather, similarities can be found across macroregions. The Americas did extremely well, and both North and South America grew more than 7%. Latin America is still emergent and is hence growing rapidly. Chile and Colombia were the two fastest-growing countries worldwide. However, North America also grew extremely well, from a huge base. The United States benefited from the fiscal stimulus and quantitative easing packages put in place following the financial crisis. Also, many companies that had made massive layoffs looked to BI to help fill productivity holes. Together with Australia, the U.S. was the fastest-growing advanced nation, despite holding a massive % of the worldwide market. Europe was sluggish across the board, both east and west, as the region struggled with sovereign debt and recessionary environments. However, relatively healthy market pockets could be found in Germany and Switzerland, parts of the Nordics (Sweden and Finland), and Russia and Ukraine. Contrasting to Europe, the Middle East and Africa grew in the double digits. Asia/Pacific continued its growth story and grew an impressive % in 00, compared with 7% growth posted in. Among the segments, analytical applications posted the highest growth (more than 0%), which we believe is due to the business demand for analytics by businesses across the region. Due to the lack of custom-built information infrastructure, buying packaged analytical applications is easier and faster. As Asian countries race toward International Financial Reporting Standards migration deadlines, we will continue to see growth of CPM suites, which stood at almost % in 00. BI platforms continued to be the largest subsegment in 00, growing at.% and crossing the half-billion mark in license and maintenance to reach $577 million in 00. Top Vendors Analyzed SAP SAP is the dominant leader in the combined BI market (platforms, CPM suites, and analytic applications and performance management), owning nearly a quarter of the market. The vendor is particularly dominant in BI platform market share. Impressively, SAP managed faster-than-average growth, capturing net-new share. This reversal of fortunes from last year is striking, especially as the new release of Business Objects.0 only affected sales in the last quarter of 00. Additional factors contributing to this improvement include: Opportunities arising with ERP enterprise license agreements The resurgence of the manufacturing sector Germany s improved spending conditions during 00 The increase and stabilization of sales forces with specialist rather than generalist roles, after the massive churn that ensued following the acquisition of Business Objects. Oracle Oracle, the No. in the BI market, also had a very strong year, growing %. was helped by the release of Oracle OBIEE g, releasing pent-up demand. The company is successfully touting the red on red stack benefits arguably harder than any other vendor, which is supported by findings in the BI platform Magic Quadrant survey; 6% of Oracle BI users use Oracle business applications, and % of them have an Oracle data warehouse underneath. Consequently, Oracle often led BI sales efforts with its analytic applications (OBIA) as a closely integrated component to Oracle E-Business Suite, Siebel and PeopleSoft. Oracle also continues to be a market leader in CPM, with Hyperion Financial Management increasing its share to % in that space. SAS SAS is the only independent BI and analytics vendor able to match the large megavendors (SAP, Oracle, IBM and Microsoft) in terms of size and capabilities, coming in as the third-biggest vendor, with % share. SAS grew BI revenue 5%, which was below market rates, as SAS came under stronger pressure from other vendors encroaching on its market sweet spots. But it also reflects SAS s subscription-based pricing model and large installed base, which smooth out peaks and valleys in growth, providing a more predictable and reliable growth path. During 00, SAS benefited from the increased market noise around analytics, where SAS has its core capability. SAS held on to market share leadership and saw most growth in analytic applications (%) where it holds the widest horizontal and vertical domain capabilities in the industry. Performance in BI platforms and CPM suites was more subdued. SAS holds significant positions in those segments, too, but Gartner rarely hears of the vendor being considered for bread and butter BI platform (apart from in statistics/data mining scenarios) or CPM projects outside its installed base.

5 IBM IBM is investing heavily in all aspects of BI under the moniker Business Analytics as a cornerstone of the company s Smarter Planet strategy. During 00, the acquisition of SPSS from the previous year was fully integrated. However, Gartner counts the majority of that revenue in CRM under market automation. IBM also acquired Clarity Systems in the CPM space for improved financial reporting and disclosure capabilities, making that segment the fastest growing. From a BI software perspective, Gartner estimates IBM s growth to have been %, which is below the market growth rate. While some customers are choosing the more operational, application-driven BI strategies of SAP and Oracle, to be fair, IBM s model is to use business analytics to drive growth also in analytic solutions, services and hardware, so software market share tells only part of IBM s BI story. Microsoft Microsoft s BI revenue is harder to break out and contains a larger element of estimation as virtually all functionality is embedded in SQL Server, Point and Office. But Microsoft continues to expand its BI footprint with the help of these products as a vehicle and driver for sales. Gartner estimates the vendor to be the fifthbiggest BI vendor in terms of revenue (and the third in BI platforms). But Gartner end-user queries and surveys indicate that Microsoft has a bigger share than that in terms of usage. Notable Vendors MicroStrategy According to Gartner estimates, of the larger traditional BI pure-play vendors (MicroStrategy, Information Builders, Actuate and SAS), MicroStrategy was the only vendor outpacing market growth. The company has done a good job positioning itself as the independent alternative on BI platform shortlists, while being able to reach out to business user constituencies and championing the drive into mobility and tablets. Two additional releases of version 9. helped adoption in 00 as it continues to enhance performance, and MicroStrategy s mobility efforts are showing intended results to sell to business users as it battles data discovery vendors. FICO After posting negative growth in of.7%, FICO (formerly Fair Isaac) showed positive growth of.% in 00, which compares with growth of 7.7% for the analytical application segment overall. FICO s growth rate for this segment reflects ongoing slowness in the financial services sector, which accounts for the majority of the company s analytic application business. It also reflects the earlier () divestiture of several telecommunications products from the company s analytical application portfolio. FICO continues to become leaner and more focused, with the intention of growing its banking, insurance, healthcare and retail analytics portfolios through a focus on the customer life cycle, which includes applications for marketing, originations, customer management, collections, recovery and fraud. QlikTech Data discovery (light-footprint, in-memory-based visual tools) continues its momentum as an alternative and increasingly, also as a replacement to traditional BI platforms. In this space, QlikTech is the torchbearer. The company s initial public offering in 00 was the first in the BI space for many years. Strongly recapitalized, QlikTech continue to grow aggressively at more than 5%, and the majority of its revenue comes from new license sales, boding well for future revenue streams. The company still has only % market share in BI platforms, but it is on a strong growth trajectory. Tibco Tibco (Spotfire) grew much above the market rate, at %. The company has a foundation in a strongly visual tool, but it is also adding process-driven (through the Tibco heritage) and predictive (through the acquisition of Insightful) thinking to its strategy. Tableau Tableau, another data discovery tool vendor, can claim the honor of being the fastest-growing vendor of all surveyed this year, clocking in at % growth. is spurred by the company s welldeserved reputation in areas such as ease of use and functionality. Tableau follows QlikTech s growth trajectory but is a few years behind in terms of size. Mergers and Acquisitions Table shows merger and acquisition (M&A) activity from 00 through 00 in this market. Vendors Covered Here is a comprehensive (but not complete) list of vendors we cover and consider in our Market study: Vendors with more than $0 million in BI, analytics and performance management software revenue (not counting professional services), broken out in Market : All Software Markets, Worldwide, 00 : Accelrys, Acorn, Actuate, ARC, arcplan, Attensity, Bitam, Board, Clarabridge, Clarity Systems, Corda, Corporate Planning, Datawatch, DoubleStar, Dimensional Insight, Exact Software, FICO, Host Analytics, IBM, idashboards, Infor, Information Builders, Jaspersoft, KXEN, Lawson Software, LogiXML, Microsoft, MicroStrategy, Minitab, Oracle, Panorama Software, Pentaho, QlikTech, Rogue Wave, Rocket Software, Salient, SAP, SAS, SPSS, Tableau, Tagetik, Targit, Technology One, Teradata, ThinkAnalytics, Tibco, Tonbeller and Visual Numerics Other vendors with less than $0 million in total BI, analytics and performance management software revenue (not counting professional services) include: 00data, A Solutions, ABM Technologies, Abrige, ACS (Xerox), Acteon, ActiveStrategy, Adaptive Planning, Advizor Solutions, Affinity Global Solutions, Alight, Altair (HiQube), Altosoft, Anaplan, Angoss, Antivia, Aonix, Aruspex, ASgroupDillon, Attivio, Avisen (Inca Software), Basware, Birst, Bissantz, Blackbaud, BlueSky, C Solutions, CA Technologies, Calumo, Carpio, CDC Software, 5

6 6 Table. M&As in the BI Market, Buyer Acquiree Date of Acquisition Actuate Xenos February 00 IBM Exeros May IBM SPSS July IBM Clarity Systems October 00 IBM Netezza September 00 IBM Open Pages September 00 IBM Unica August 00 IBM Coremetrics June 00 Microsoft DATAllegro July 00 Microsoft Fast Search & Transfer January 00 Microsoft Zoomix July 00 Oracle Sun Microsystems April Oracle HyperRoll September Oracle Golden Gate July SAP Sybase May 00 SAS Teragram March 00 SAS IDeaS August 00 Tibco Insightful September 00 Source: Gartner (March 0) Centrifuge, Cerner, Chordiant, Cintac, ClearFinancials Strategy Management, COA Solutions, Coheris, Corporate Renaissance Group, Corporater, Cubeware, Decision Lens, Eclipsys, Emagia, Epicor, ethority, Excel Data, Exie, ExOpen Systems, Fujitsu, FuseTalk, FusionOps, GoodData, Glassbeam, Hummingbird, Hypergene, IDBS (InforSense), Indicee, InetSoft Technology, InfoZoom, InPhase, Insightformation, Interactive Reporting, InterSystems, istrategy, Jinfonet Software, Jonova, KCI Computing, KNIME, KnowledgeAdvisors, Lead Software, Lyzasoft, McKesson, MEDai, MedAssets, Mede, Medisolv, Merkur, Midas, MIK, Mitsubishi Electric Information Technology, Mondelio, MyABCM, mydials, Neutrino Concepts, News Patterns, nexdimension, Nomis, Oco, OpenViz, Orca Eyes, Palladium, Panopticon, Panoratio, Paris Technologies, Performance Solutions Technology, PivotLink, Portrait Software, Prelytis, Premier, Prevero, Procos, Prodacapo, Profitbase, Prophix, Prudsys, QPR, Quantivo, Quantrix, Quartet FS, Quest Software, Quiterian, Rapid-I, Relational Solutions, Revolution Analytics, River Logic, Roambi, Satori Group, SiSense, SL, Space Time Research, SpagoBI, Evidence Spider Strategies, SQL Power Group, StatSoft, Systema, Targetor, Teradata, ThinkFusion, Thomson Reuters (Solucient), Vemo, Visual i/o, Visual Insight, VisualSense, Whitebirch, WingArc Technologies, Xlerant, YellowBrix, Yellowfin, Zap Technology and zetvision This report required data collection and preparation of market statistics information. Prevailing market conditions and political and economic events that affect vendor performance, such as regulations, M&As, a slowed worldwide economic recovery and new-version migration, have been taken into account. Gartner uses public sources of information and works with software vendors to establish estimates for the market. Information from Gartner s secondary research and internal community meetings has also been used to arrive at certain conclusions. The data in this research report is published as Gartner estimates/opinion, not as facts that the vendor reported.