In a new report, entitled, “Market Share: All Software Markets, Worldwide, 2011,” Gartner put BI, analytics and PM at $12.2 billion in 2011, or 16.4 percent growth over 2010, making the combined areas the second-fastest growing in enterprise software. Two-thirds of that market revenue stems from BI platform software, which hit $7.79 billion in 2011, up 16.3 percent from the previous year, according to Gartner. Enterprise performance management suites revenue tallied $2.51 billion in 2011, up 16.4 percent from 2010 and taking up a few more notches of the overall market share (20.5 percent in 2011). Analytic applications and performance management software took in $1.93 billion in revenue in 2011, up 17.3 percent from the previous year.
BI, PM and analytics revenue reflects the reigning interest in IT budgets, but also the expanding business role and use of this software, says Dan Sommer, principal research analyst at Gartner. Outside of the traditional on-premise BI solutions, this market is being driven by use of self-service data discovery tools, pre-built analytics and a “renewed interest in BI and performance management” from CFOs, says Sommer. In addition, over the next 10 years, enterprise interest and maturity of other massive information management trends in cloud computing, mobile BI and big data will also push spending and capabilities in the BI space, especially in denser, deeper use of analytics, he says.
As far as vendors in 2011, SAP increased its revenue ($2.88 billion, up 19.5 percent from 2010) and market share (23.6 percent, up 0.6 percent from 2010) as the leader in the BI, analytics and PM software space, according to Gartner. In second was Oracle, with $1.9 billion in 2011 revenue, which, along with third-ranked SAS Institute ($1.54 billion in 2011 revenue) saw a slight dip in market share in the year-to-year recaps by Gartner. IBM registered $1.47 billion in software revenue in 2011, and 12.1 percent of the market share (up 0.5 percent from 2010) to come in fourth, and Microsoft totaled $1.05 billion in 2011 revenue with a steady 8.7 percent of the market share.
Although these five major vendors are expected to experience sustained growth in revenues through a combination of acquisition, integration and cross-selling, Gartner analysts see great promise for more than 100 small but “hyper-growth” vendors.
“While IT continues to standardize and rationalize, new vendors will arise faster than the mega-vendors can consolidate in horizontal and vertical niches. Many of those will use the cloud as a spring board,” Sommer says.
To access a copy of the report, click here.