- Regardless of the specific BI technology, in the short term, the executive mandate for most organizations will be to do "more with less." Although we continue to see healthy demand for BI functionality from business end users, IT departments and business end users alike are being asked to curtail costs.
- As a result, incremental, small purchases, and deployment of BI technology will dominate the market in the short term. This trend is also likely to push more organizations toward SaaS and outsourced BI and analytics solutions that have a pricing model, which enables better allocation of direct costs to current profitability.
- IDC is beginning to see evidence of greater interest in outsourcing of advanced analytics processes.
- Standardization and the expected eventual commoditization of core reporting, dashboard, and OLAP functionality. This core QRA (Query Reporting Analysis) technology, which still forms the bulk of the revenue for BI technology vendors, has been available for decades. Although substantial feature and functionality improvements have been
made to this software over the years, the lack of differentiating features will continue to drive down the cost of this software.
- The logical conclusion will be the broad availability of open source or very low-cost commercial reporting,
dashboard, and OLAP technology with a shift in spending from licenses to support services.
- QRA tools, there will be an intermediate-term opportunity for some vendors to differentiate their ad hoc query and multidimensional analysis tools based on features and functionality that put a premium on simplicity and performance. This may include use of in-memory deployment techniques, interactive visualization, or associative data management structures
- The next wave of innovation in the BI market will come from the expansion of the overall business analytics solution to include functionality for supporting:
- Unified access to and analysis of structured data and unstructured content
- Collaboration during the process of decision making
- Capture of knowledge learned in the context of decision making
- Intelligent process automation, which combines BI functionality with that of business process management
- In 2008, Oracle reaped the benefits of its investment in Oracle Business Intelligence Enterprise Edition (OBIEE) — the company's BI platform and its different modules for query, reporting, and analysis.
- OBIEE has emerged as a growth driver in the overall Oracle portfolio.
- Oracle's 2007 acquisition of Hyperion has only marginally contributed to the company's BI tools revenue.
- Oracle is well positioned to continue to benefit from OBIEE by selling it to its existing vast applications and database customer base.
- SAP derives all of its BI tools revenue from the QRA market segment.
- In 2008, the company's SAP BusinessObjects portfolio benefited from the vastly enlarged sales force and was able to sell BI tools to SAP's applications customers.
- The company (SAP) ran into some resistance from customers to its pricing structure but was able to overcome this challenge partly through improved communication about its BI tools portfolio road map.
- Although SAP's rationalization of acquired BI tools has not been completed, the company is well positioned to fulfill the future needs of BI technology purchasers.
- SAP is also on the forefront of redefining the functionality of a BI solution by integrating traditional QRA tools with those for content access and analysis, collaboration, and event monitoring.
(Cross posted @ cio-reinvented)