The number of organizations embracing business intelligence platforms continues to grow, but more focus is being placed on business-led, agile analytics and self-service features rather than IT-led system-of-record reporting.

That is the finding of a recent study by Gartner, which looked at market trends in business intelligence and analytics overall, and differences between traditional BI investments and modern BI.

Overall, the research firm predicts that the global BI and analytics market will reach $18.3 in value this year, an increase of 7.3 percent over last year. The market will grow to $22.8 billion by the end of 2020, Gartner estimates.

While the number of organizations embracing modern BI and analytics will continue strong growth, the impact of market value will decelerate due to increased competition among vendors, Gartner says.

"Purchasing decisions continue to be influenced heavily by business executives and users who want more agility and the option for small personal and departmental deployments to prove success," said Rita Sallam, research vice president at Gartner. "Enterprise-friendly buying models have become more critical to successful deployments."

Gartner believes the rapidly evolving modern BI and analytics market is being influenced by seven dynamics:

Modern BI at scale will dominate new buying

“While business users initially flocked to new modern tools because they could be used without IT assistance, the increased need for governance will serve as the catalyst for renewed IT engagement,” Sallam says. “Modern BI tools that support greater accessibility, agility and analytical insight at the enterprise level will dominate new purchases.

New innovative and established vendors will drive the next wave of market disruption

“The emergence of smart data discovery capabilities, machine learning and automation of the entire analytics workflow will drive a new flurry of buying because of its potential value to reduce time to insights from advanced analytics and deliver them to a broader set of people across the enterprise,” Sallam says. “While this ‘’smart’ wave is being driven by new innovative startups, traditional BI vendors that were slow to adjust to the current "modern" wave are driving it in some cases.

Need for complex datasets drives investments in data preparation

“Business users want to analyze a diverse, often large and more complex combinations of data sources and data models, faster than ever before,” Sallam explains. “The ability to rapidly prepare, clean, enrich and find trusted datasets in a more automated way becomes an important enabler of expanded use.

Extensibility and embed-ability will be key drivers of expanded use and value

“Both internal users and customers will either use more automated tools or will embed analytics in the applications they use in their context, or a combination of both,” Sallam notes. “The ability to embed and extend analytics content will be a key enabler of more pervasive adoption and value from analytics.”

Support for real-time events and streaming data will expand use

“Organizations will increasingly leverage streaming data generated by devices, sensors and people to make faster decisions,” Sallam says. “Vendors need to invest in similar capabilities to offer buyers a single platform that combines real-time events and streaming data with other types of source data.”

Interest in cloud deployments will continue to grow

“Cloud deployments of BI and analytics platforms have the potential to reduce cost of ownership and speed time to deployment,” according to Sallam. “However, data gravity that still tilts to the majority of enterprise data residing on-premises continues to be a major inhibitor to adoption. That reticence is abating and Gartner expects the majority of new licensing buying likely to be for cloud deployments by 2020.”

New opportunities for organizations to buy and sell analytic capabilities

“The availability of an active marketplace where buyers and sellers converge to exchange analytic applications, aggregated data sources, custom visualizations and algorithms is likely to generate increased interest in the BI and analytics space and fuel its future growth,” Sallam says.

"Organizations will benefit from the many new and innovative vendors continuing to emerge, as well as significant investment in innovation from large vendors and venture capital-funded startups," Sallam says. "They do, however, need to be careful to limit their technical debt that can occur when multiple stand-alone solutions that demonstrate business value quickly, turn into production deployments without adequate attention being paid to design, implementation and support."

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