The research firm forecasts business analytics growth at a compound rate of 9.8 percent per year, hitting $35.1 billion this year and reaching $50.7 billion by 2016. For 2011, business analytics underwent a 14.1 percent increase in revenues compared with the previous year. As part of that overall business analytics segment, the data warehousing platform software portion represented the fastest growth, at 15.2 percent in 2011 compared with 2010. IDC also pegged analytic application growth at 13.3 percent last year from 2010, and BI and analytic tools at 13.2 percent last year from 2010. Production planning applications represented the low end of the market segment spectrum, with 6.1 percent growth in 2011 from the previous year.
Dan Vesset, program VP for IDC’s Business Analytics Solutions division, said in a release on the results that “big data” has captured the market attention, which has put analytics of all variations on the radar of senior executives. There has also been vast development in new analytics software based on non-relational database technology.
All of this has combined with the existing evolution of analytics capabilities over the last few decades to the point where analytics has “crossed the chasm into the mainstream mass market,” said Vesset.
Some of reverberations from this growth include expectations that vendors and users will have to spend more resources on business analytics services for the body of enterprises without previous or extensive analytics experience. Through 2016, IDC anticipates an increased focus on business process-specific analytic applications in part to deal with the market growth, resulting in accelerated vendor acquisitions and the widening of SaaS and outsourcing to handle specific performance components.
Vesset added that the rate of analytics solutions investment and adoption is "the previously minor issue of the shortage of highly skilled IT and analytics staff."
Based on a percentage of revenue share, IDC put the biggest vendors in the global business analytics software market as follows: Oracle (19.3 percent), SAP (14.5 percent), IBM (13.8 percent), Microsoft (7.4 percent) and SAS (7.1 percent).